INTERNSHIP REPORT ON

MCB Bank Ltd

(Specialization in Finance)
Submitted to The Chairman Department of Business Administration
Submitted by MUHAMMAD QASIM Roll No. AD 512469 Reg No. 06-POA-1345 MOHALLAH KOTHI NEAR MCB BANK LIMITED ADALAT GARHA SIALKOT. Mob NO: 0333-4102102

(Department of Business Administration) ALLAMA IQBAL OPEN UNIVERSITY

4. ACKNOWLEDGEMENT
First of all, All praise and gratitude due to ALLAH ALMIGHTY who created man in His own image and enjoyed upon him to travel on the earth and enter into a profound and analytical study of Universe for spiritual appreciation of ALLAHS unity and His attribute as well as for harnessing the material manifestation of the world to the mankinds profitable utilization. In the first place, therefore we express our utmost thanks to ALLAH. At the next stage I offer my gratitude to our Prophet Muhammad (P.B.U.H) for his golden saying Gain knowledge be in China. I would like to acknowledge extremely valuable assistance provided by all the Officers and other staff members for their great cooperation. They provide the proper guidance and support time to time which helps me a lot to work in such competitive environment and the timely completion of assignments. The office working environment is very good.

MUHAMMAD QASIM

5. TABLE of ContENts
4. ACKNOWLEDGEMENT ......................................................................................................3 5. TABLE of ContENts...............................................................................................................4 6. Executive Summery................................................................................................................4

6. Executive Summery
MCB Bank Limited (Formerly Muslim Commercial Bank) has a solid foundation of over 50 years in Pakistan, with the network of over 1000 branches, over 850 of which are Automated Branches, and over 350 MCB ATMs in 41 cities nationwide and a network of over 12 branches on the M-NET ATM switch. In this 8 weeks internship program I have worked in Corporate Center of this high class bank of Pakistan where I have learned about banking from experienced managers running these sections.

This report contains the information and learning about MCB that I learnt during the internship period in MCB Bank Limited. This report deals with History & Nature (Business) of the MCB, its Products and Services, information about main offices and also the review of various departments of the Bank. This report also contains Finance & Accounting operations of the MCB, role of Financial Manager, Use of Electronic Data in core decision making and the Sources, Generation and Allocation of funds used in the banking operations of the MCB. Recognizing the need of Islamic banking, MCB also provided number of Islamic banking services like Islamic Deposit Schemes and Islamic Fund Based Facilities. At the end of this report, on basis of my observation during internship, financial analysis is provided. Suggestions are also recommended as per learning from analysis. This report will provide a better and brief learning about MCB Bank Limited.

1-OBJECTIVES
This internship offers me an incredible opportunity to gain real-world experience in the high-stakes finance industry. Most importantly this internship allows me to distinguish myself from my classmates, as I gain a competitive advantage by connecting my coursework with industry experience.

Following are important objectives of studying the organization:

Categorize the different products and services offered by the financial institution note how to most efficiently match those products and services with the needs

and

of customers. (compute

Analyze the companys financial condition through the financial statements financial ratios and compare to the industry averages). To describe the impact of financial decisions on the health and functioning of the organization.

overall

To learn the various steps and procedures of credit risk management & administration. Finding out the weaknesses, short comings, strengths and beauties of the credit administration department.

2-OVERVIEW OF THE ORGANIZATION

2.1. BRIEF HISTORY OF THE ORGANIZATION: Te bank was incorporated under companies Act 1913 on 9
th

July 1947(just before partition)

as Calcutta. But due to changing scenario of the region, the certificate of incorporation was issued on 17 th August 1948 with a delay of almost 1year;the certificate was issued at Chitagong. 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.15million. After some time the registered office of the company was shifted to Karachi on 23rd August 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 Principal Office. MCB has an edge over other local banks, as it was the first privatized bank. The State Bank of Pakistan has restricted the number of branches that can be opened by foreign banks, an advantage that MCB capitalizes because of its extensive branch network. Ten years after privatization, MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer. MCB now focuses on three core businesses namely Corporate , Commercial and

Consumer Banking. Corporate clientele includes public sector companies as well as large local and multi national concerns. MCB is also catering to the growing middle class by providing new asset and liability products. The Bank provides 24 hour banking 680 convenience with the largest ATM network in Pakistan covering 30 cities with over six years and have recently launched their Gift Cheque Scheme

ATM locations. The Banks Rupee Traveler Cheques have been market leaders for the past

2.2 NATURE OF THE ORGANIZATION

MCB Bank Limited is a banking company incorporated in Pakistan and is engaged in commercial banking related services. The Banks ordinary shares are listed on all the stock exchanges in Pakistan whereas its Global Depository Receipt (GDRs) representing two ordinary shares (2008:two ordinary shares) are trading on the international order Book (IQB) system of the London Stock Exchange. The Banks Registered Office and Principal 7

Office are situated at MCB Building ,Jinnah Avenue, Islamabad and MCB-15 Main Gulberg,Lahore,respectively .The Bank operates 1159 branches including 19 Islamic banking branches (2010: 1140branches including 19 Islamic banking branches) outside the country (Including the Karachi Export Processing Zone branch).

2.3 BUSINESS VOLUME

2.3.1 DEPOSIT
CUSTOMERS 2010 2009 2008 2007 2006

Rupees in 000 Fixed Deposit 62,651,531 61,680,332 32,202,230 33,297,203 13,296,121

Saving Deposit Current account-non remuneretive Margin account Others Total customers Deposits

173,797,078 123,898,324 2,910,655 767 363,258,355

150,927,938 105,310,862 3,137,434 563 321,057,129

151,555,718 95,966,877 2,589,309 4,288 282,318,422

136,872,384 81,658,304 2,447,944 4,336 254,280,171

137,067,311 74,331,042 2,568,306 41,396 227,304,176

Financial institutions Remunerative deposit Non-remunera tive deposit Total Financial Institution Deposits Total Deposit 2,258,295 2,088,061 4,346,356 367,604,711 5,197,969 3,926,526 9,124,495 330,181,624 9,233,602 546,042 9,779,644 292,098,066 249,506 2,932,161 3,181,667 257,461,838 183,338 1,857,664 2,041,002 229,345,178

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

COMMENTS Total deposits from customers have been increased 60% in 2009 as compared to 2005. This increase is due to major increase in Fixed & Saving deposits of the bank. As we compared fixed deposit with previous years fixed deposit continuously increased from 2005 to 2009.In 2009 fixed deposit is Rs.62,651,531 and in 2005 Rs.13,296,121 and saving deposit is also increased from 2005 to 2009.In 2009 saving deposit is Rs.173,797,531 and in 2005

Rs.137,067,311.Remunerative deposit in 2005 Rs.183,338 and in 2009 Rs.2,258,295 and Non-Remurative deposit in 2005 Rs.1,857,664 and in 2009 Rs.2,088,061. Deposit from in local currency is Rs.336,180,581 in 2009 , Rs.312,829,233 in 2008 and in foreign currency Rs.31,424,130 in 2009 and Rs.17,352,391 in 2008.

2.3.2 REVENUE
Particulars Mark-up/return/imterest earned Fee,commission and 2009
51616007

2008
40043824

2007
31786595

2006
25778061

2005
17756232

3331856

2953394

2634610

2311235

2448950

10

brokerage income Dividend income Income from dealing in foreign currencies Gain on sale os securitiesnet Other income Total Revenue
459741 341402 617554 727564 632300 693408 811801 692010 480344 531455

773768

740429

1500865

605865

866112

736118 57258892

855697 45938462

563213 37810991

570505 30769477

1425174 23508267

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

Total revenue has been increased 144% in 2009 as compared to 2005. This increase is due to Markup/interest earned are increased by 190% as campare to 2005.This increase is due to increase in:on loans and advances interest earned, on deposits with financial institution and on securities purchase under resale agreement. As we compared fee,commission and brokerage income with previous years continuously increased from 2005 to 2009.In 2009 is Rs.3,331,856 and in 2005 Rs.2,448,950 and dividend income is also increased from 2005 to 2009.In 2009 Gain on sale securities is Rs.773,768 and in 2005 Rs.866,112.Income from dealing in foreign currencies increased from 2005 to 2008 but in 2009 is decreased.

2.3.3 ADVANCES
RUPEES IN 000 2009 Loan,cash credits,running finance, etc

2008

2007

2006

2005

11

In Pakistan Outside Pakistan

247,718,210 7,788,234 255,506,444

252,012,59 4 8,910,253 260,922,84 7

208,587,01 4 6,989,947 215,576,96 1

189,472,03 4 5,172,803 194,644,83 7

174,625,232 3,755,036 178,380,268

Net investment in finance lease In Pakistan Outside Pakistan

3,867,943 65,492 3,933,435

5,358,475 90,733 5,449,208

6,904,399 67,710 6,972,109

6,082,806 85,865 6,168,671

3,897,184 93,330 3,990,514

Bills discounted and purchased (excluding treasury bills) Payable in Pakistan Payable outside Pkaistan Advance - gross Provision against advances Specific provision General provision General provision against consumer loans General provision for potential lease losses (in Srilanka operation) Advances - net of provision 4,519,520 5,762,777 10,282,297 269,722,176 -15,678,345 -269,722 -494,434 2,364,211 4,111,059 6,475,270 272,847,32 5 -9,895,889 -273,222 -533,693 2,949,228 4,234,574 7,183,802 229.732.87 2 -7,326,953 -2,749,815 -688,665 1,761,803 4,272,188 6,033,991 206.847,49 9 -5,953,234 -2,277,467 -373,823 2,386,952 3,381,943 5,768,895 188,139,677 -5,534,376 -2,098,053 -180,554

-30,268 -16,472,769 253,249,407

-9,051 -10,711,855 262,135,47 0

-6,841 -10,772,274 218,960,59 8

-3,820 -8,608,344 198,239,15 5

-3,941 -7,816,924 180,322,753

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

Comments

12

Non-performance portfolio of agriculture financing classified as OAEM as per the requirement of the prudential Regulation fir Agriculture Financing issued by the State Bank of Pakistan.General provision against represent provision maintained at around .1% of gross advancesState Bank of Pakistan vide BSD Circular No.2 dated January 27, 2009 and BSD Circular NO 10 dated October 20,2009 has allowed benefit of forced sale value (FSV) of pledged stock and mortgaged residential, commercial and industrial properties (land and building only) held as collateral against NPLs for three years from the date of classification.However,management has not taken the said benefit in calculation of specific provision, other than mortgage and agriculture financing. General provison against consumer loans represents provision maintained at an amount equal to 1.5% of the fully secured performance portfolio and 5% of the unsecured performance portfolio as required by the Prudential Regulation.In term of sub-section (3) of Section 33A of the Banking Companies Ordinance. 1962, the statement in respect of written-off loans or any other financial relief of five hundred thousand Rupees or above allowed to a person during the year ended December 31,2009 is given at Anneure-111.However, this write off does not affect the Banks right to recover the debts from these customers.

2.3.4 INVESTMENT
13

Rupees in 000 2010 Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Federal Government Securities Government Compensation Bonds Euro Bonds Sukuk Bonds Unlisted Term Finance Certificate Overseas Government Securities Government of Sri Lanka Treasury Bonds Market Treasury Bills Provinvial Government Securities Subsidiaries and associated Undertakings Fully Paid-up Ordinary Shares/Certificate/Units Listed companies/mutual funds/modarabas Unlisted companies/funds Units of open Ended Mutual Funds Fully Paid-up Preference Shares Listed Companies Unlisted Companies 61,602 100,000 61,602 100,000 61,602 100,000 61,602 100,000 65,470 7,071,612 413,843 442,981 8,306,012 415,724 661,909 7,557,700 415,333 1,662,063 5,749,225 437,012 118,595 5,035,363 443,369 3,387,148 118 1,384,826 70,000 1,321,816 118 1,384,432 118 1,384,432 118 13,644,332 118 1,064,452 139,569,774 7,699,324 171.583 286.557 684.81 1.503.702 3.000.000 70,513,126 4,683,476 322.216 870.771 4.969.516 1.838.533 3.000.000 85,481,869 5,104,072 704,928 870,771 3,299,630 1,585,475 36,872,804 3,791,439 825,719 870,771 3,019,135 1,573,478 46,999,774 4,507,801 992,861 870,771 2,971,758 759,767 2009 2008 2007 2006

14

Term Finance Certificate,Debentures,Bonds and Participation Term Certificates Listed Term Finance Certificates Unlisted Term Finance Certificcates Debentures,Bonds and Participation Term Certificate (PTCs) Certificates of investment Other Investments Sukuk Bonds NIT Units Total investments at cost Less:Provision for diminution in the value of investments Investments (net of provisions) Surplus / (deficit) on revaluation of available for sale of securities - net Deficit on revaluation of held for trading securities - net Investment at revaluated amount - net of provisions 1,650,227 5,253 170,515,851 -3,686,520 166,829,331 1,337,727 5,253 102,543,652 -3,044,962 99.498,690 600,000 5,253 111,816,633 -468,288 111,348,345 5,253 62,178,078 -363,019 61,815,059 83 68,261,026 -547,424 67,713,602 1,831,777 1,129,096 1,404,384 897,448 1,136,821 1,223,068 1,450,659 1,946,344 1,173,320 1,271,631

121,618 -

129,589 250,000

123,498 500,000

441,492 3,550,000

604,488 1,500,000

305,134 167,134,465

-2,763,618 -103,198 96,631,874

1,754,021 -13,105 113,089,261

1,671,257 63,486,316

1,766,251 1,634 69,481,487

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

15

COMMENTS Investments include certain approved / government securities which are held by the Bank to comply with the Statutory Liquidity Requirement determined on the basis of the Bank's demand and time liabilities as set out under section 29 of the Banking Companies Ordinance, 1962. .Available for sale Market Treasury Bill and Pakistan Investment Bonds are eligible for rediscounting with the State Bank of Pakistan (SBP).The market value of Pakistan Investment Bonds and Market Treasury Bills classified as held to maturity as at December 31,2009 amounted to Rs.1,867.674 million and Rs.3,387.148 million (2008: Pakistan Investment Bonds Rs.1,659.166 million and Market Treasury Bills Rs.1,436.673 million) receptivity and as at December 31 2007 amounted to Rs.1,990.67 million and Rs.237.70 million (2006:Market treasury Bills Rs.Nil and Pakistan Investment Bonds Rs.1,978.22 million) respectively. Investment of the bank in Adam jee Insurance Company Limited is carried at cost amounting to Rs.943.600 million,2008:Rs.943.600 million,Rs.2007:943.600 and 2006: Rs.943.600 as at December 31,2009 on accordance with the treatment specified in International Accounting Standard (IAS) 28Accounting for Investment in Associates. The market value of the investment in Adam jee Insurance Company Limited as at December 31,2009 amounted to Rs.4,039.049 million ,2008:3,032.786,2007:10,671.631 and 2006: Rs.4,481.877 million. At December 31,2009 market value of quoted investments was Rs.161,322.481 million,2008: Rs.83,847.918million ,2007: Rs.113,048.129 million and 2006: 53,852.405 million while the book value of unquoted investments was Rs.8,526.863 million ,2008: Rs.13,959.421million, 2007:Rs.9,391.098 million and 2006: 12,711.323 million.Investment include Pakistan Investment Bonds amounting to Rs.232.60 million, 2008: Rs.232.60 million, 2007:232.60 million and 2006:Rs. 232.60 million earmarked by the SBP and National Bank of Pakistan against TT/DD discounting facilities and demand note facilities sanctioned to the Bank. In addition, Pakistan Investment Bonds amounting to 2009, 2008,2007 and 2006 Rs.5 million have been pledged with the Controller of Military Accounts on account of Regimental Funds account.During the year, the bank has incorporated MCB Leasing Closed Joint Company in

16

Azerbaijan to undertake leasing business.Information relating to investments in ordinary shares and preference shares of listed companies and unlisted companies required to be disclosed as part of the financial statements under BSD Circular No.04 of 2006 dated February 17,2006, is given in Annexure I.Certain approved / Government securities are kept with the SBP to meet statutory liquidity requirements calculated on the basis of domestic demand and time liabilities.

17

2.4 NUMBER OF EMPLOEES

Excutive Level
Excutive level personnels are 43 and there detail is mention below.

2.4.1 Corporate profile

Board of Directors Mian Mohammad Mansha Mr. S. M. Muneer Mr. Tariq Rafi Mr. Shahzad Saleem Mr. Sarmad Amin Dr. Muhammad Yaqub Mian Raza Mansha Dato' Mohammed Hussein Mr. Aftab Ahmad Khan Mr. Abdul Farid Bin Alias Mian Umer Mansha Mr. Muhammad Ali Zeb Mr. Atif Bajwa Chairman Vice Chairman Member Member Member Member Member Member Member Member Member Member President / CEO 1 1 1 1 1 1 1 1 1 1 1 1 1

Audit Committee Mr. Tariq Rafi Dr. Muhammad Yaqub Chairman Member 1 1 18

Dato' Mohammed Hussein Mr. Aftab Ahmad Khan Mr. Muhammad Ali Zeb Mr. Malik Abdul Waheed Human Resources Committee Mian Mohammad Mansha Dr. Muhammad Yaqub Mian Raza Mansha Mr. Shahzad Saleemn Mr. Atif Bajwa

Member Member Member Member

1 1 1 1

Chairman Member Member Member Member

1 1 1 1 1

Risk Management & Portfolio Review Committee Mr. Shahzad Saleem Mr. Tariq Rafi Mr. Sarmad Amin Mian Raza Mansha Mian Umer Mansha Chairman Member Member Member Member 1 1 1 1 1

Committee on Physical Planning, IT System & Contingency Arrangement

Mr. Sarmad Amin Mr. S. M. Muneer Mr. Tariq Rafi Mian Raza Mansha Mr. Abdul Farid Bin Alias Mr. Atif Bajwa Chairman Member Member Member Member Member 1 1 1 1 1 1

Business Strategy & Development Committee

19

Mian Mohammad Mansha Mr. S. M. Muneer Mr. Shahzad Saleem Mian Raza Mansha Dr. Muhammad Yaqub Dato' Mohammad Hussein Mian Umer Mansha Mr. Atif Bajwa

Chairman Member Member Member Member Member Member Member

1 1 1 1 1 1 1 1

2.4.2 STAFF STRENGTH:

STAFF STRENGTH Permanent Contractual basis Bank's own staff strength at the end of the year Outsourced Total number of employees at the end of the year 2009 9397 48 9445 3747 13192 2008 10160 47 10207 3727 13934

20

2.5 PRODUCT LINES AND SREVICES

MCB Online Banking MCB has a fastest growing network of over 1100 online branches in a country providing customers real time online transaction facilities. MCB MNET MNET in an electronic inter-bank connectivity platform for online transactions for ATM and other remote banking channels. It offers other value added services that include a portfolio of E-Banking and payment system product as well as management and day to day operation of the same. Members include 10 local and foreign financial institutions enjoying ATM sharing and value added services. MCB Cash Management Cash management provides a wide range of value added services to large corporation through its vast network of online branches. Over structure and customize products of the Bank customers to realize their sale proceeds swiftly from all over the countries, supported by real time MIS. MCB Channel financing MCB channel financing provide working capital facilities to dealers and vendors of selected companies under a structured product program. This product enables customers of the Bank dealers to leverage themselves and increase their business capacity with their respective business partners. MCB Home Remittance MCB home remittance provides a seamless inflow of foreign remittances credited in the beneficiary account within minutes. Cash payments can also be made at Banks designated branches on behalf of X press money, samba and money gram, along with cash payments from other correspondents all over the world. 21

MCB Corporate Financing MCB corporate financing provides excess to diversified financing options, including working capital loans, term loans, trade finance services and investment banking. MCB Project and Structured Finance Involves financing complex projects, usually in SPV structure, where the loan in tightly structure around the cash flow, risks are allocated amongst various share holders, and there is limited or no recourse to the sponsors. MCB Syndicated Loans and debt capital markets It involves arrangements, underwriting and placement services for significant financing requirements by large corporate and institutional clients to other financial institutions or through the debt capital markets. MCB Quasi Equity/Hybrid Instruments Its structures and places a category of debt that has some characteristics of equity such has being unsecured subordinated or with a potential equity upside. MCB Equity Capital Raising Equity services relate to raising capital for Banks clients by offering common or preferred equity to public or private investors, through initial public offers, offer for sale, rights issues and private equity placements. MCB Advisory Services Financial and capital raising advisory provides our clients with financial advisory services, commercial structuring support and access to capital resources to help companies successfully finance their business/project

22

MCB Islamic Banking With the help of shariah specialist, lawyers and professional commercial bankers, MCB Islamic Banking provides riba free and shariah complaint solutions to various customers segments in a growing number of cities. MCB Agrie Products MCB has been providing finance to the agriculture sectors since 1973 with the help of Banks vast branch network, specialize staff posted in a branches, multiple and diversified product range, Bank cater to the financing requirements of the forming communities spread through out the country and facilitate in achieving increase productivity. MCB Privilege The first from a local bank, MCB privilege through its dedicated, world class privilege centers offers a higher level of personalize services, more rewarding in branch experiences and a wide array deposit and investment products that are tailored to meet the financial expectations of our affluent clientele. As members of MCB privilege, customers experience un taralleled advantages that put them ahead of other. MCB dedicated privilege centers await to welcome customers in Karachi, Lahore, Islamabad and multan, with plans to expand to more locations Current Account MCB bank offers a variety of current accounts to cater to the everyday transactional needs of various customers. These accounts ensure easy and freedom to bank from any of the 1100 branches across the countries. The different accounts include: business account offering free online transactions, demand draft, pay orders and lots more to meet the day to day business requirements: current life account which offer the security of life insurance free of cost: and for all the others the conventional current account.

23

Saving Account It offers a wide array of saving products that suit short term growth and transactional needs. Banks saving accounts offer attractive profit rates as well as flexibility to transact. Savings Xtra is targeted for customers having rupees 5 million plus deposit, 365 bold offer profit rate on daily balance while PLS saving has a lower minimum balance requirement. In addition, a unique product: smart savings is an account run solely via a debit card offering a very competitive rate to small saver. Terms Deposit MCB term deposits offer attractive short to mid term investment options with flexibility, convenience and security. With various tenor option available customers one that suits their needs. This is combined with different profit payout options and the added facility of being able to avail credit facility against their deposits. MCB Salary Club A payroll solution designed to make life easy: it simplifies all the monthly payroll related banking needs of employer and opens the door to a world of special offers for employees. Salary club provides the convenience of having an extensive range of financial services available to employees at their place of work. MCB Investment Services Make the most of the wealth with investment opportunities that match with unique financial aspirations. MCB investment services offer distribution of mutual funds managed by the leading fund manager of Pakistan. Bank can suggest the products most suited for the needs, or work with clients to create a personalize solution completely focused on the expectations of the capital markets,

MCB Visa Credit Cards

24

MCB offers a complete suite of classic, gold and platinum visa credit cards focusing on providing, superior services, travel privileges and shopping pleasure. It also offers comprehensive insurance and installment plans, reward points and sms alerts that give a different feel to the world of credit cards. These unique features include i-involves, which makes variable mark up rate available to customers allowing them to repay at affordable rates. MCB Car 4 U ( Car Leasing Product Of MCB) MCB Car leasing named as MCB Car 4 U not only gets customers a car of the their own choice but is also affordable with competitive mark up, flexible conditions, easy processing and above all, no hidden costs. MCB Instant Finance With MCB instant finance get a loan instantly at any MCB branch against liquid collateral at competitive prices. MCB Smart Card MCB smart card is the key that enable access to convenient banking services. Smart card allows customers to manage the account, withdraw cash, transfer funds, pay utility and mobile bills, recharge prepaid connections, register for mobiles and internet banking services and much more. MCB Rupee Travelers Cheque It is a safe and secure way to make payments nationwide. MCB Rupee Travelers Cheque, being the market leader, is the most widely accepted way to pay cash for travelrelated purposes.

MCB ATMS

25

MCB has one of the nations largest ATM networks with over 450 ATMs and still growing. MCB ATMs give customers 24-hours convenience of cash withdrawal, ministatement, utility bill payment. Funds transfer services and much more. MCB Mobile ATM With MCB Mobile ATM not only do Bank provide customers with world class banking services but Bank also provide convenience. Banks innovative mobile ATMs ensure that customers are given service close to customers. MCB Lockers MCB Lockers are the best protection of the valuables. Lockers of different capacity are available nationwide. MCB SMS Banking Banking at the finger tips: SMS anytime to get information regarding balance, ministatements and credit card related information once the card is linked. MCB Full Day Banking Enjoy the convenience of extended banking hours from 9am 5pm, including Saturday at MCB full day banking branches across the country. MCB Banc Assurance Combining the best of banking and insurance solutions, MCB Banc insurance has created a one stop shop for all the financial and insurance need. Whether customers want to save for the childs education or marriage, for the security of dignity after retirement of gaining maximum return on savings, MCB banc insurance has a plan just for customers.

MCB Call Center 26

There is no easier way to bank then the new enhance 24/7 MCB call center, blends innovations and convenience to provide banking services that go beyond expectations. With MCB call center customers can maintain your visa credit and ATM / Debit Cards, check the account balances, confirm last five transactions, pay utility and mobile phone bills, top up the mobile, pay MCB visa card bill from the MCB account, transfer money within ther own accounts in MCB and register complaints. MCB Mobile 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 the mobile phone and start transacting. MCB Virtual Banking MCB Provides the convenience of banking via internet, whether at home, office or on travel, log on to www.mcb.com.pk and enjoy 24 hours access to all the accounts at MCB for a great number of services such as funds transfer, utility bill payments, mobile top up and much more.

27

3.ORGANIZATIONAL STRUCTURE OF MCB

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 help in the business control and strategy making for the company. Operational Management of the bank is being 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 has 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.

28

Consumer Banking These are the branches which have exposure up to Rs. 20 million and these include all the branches which are neither corporate nor commercial branches. Recently the organizational structure was re-designed as follows: Province wise branches

NO OF BRANCHES Punjab Sindh NWFP Blochistan Azad Kashmir Domestic Overseas Total 665 248 106 37 18 1074 6 1080

29

3.2 AN OVERVIEW OF MY BRANCH

3.2.1 BRANCH STAFF Branch Manager Operational Manager Accountant Computer Operator Cashier Bill receiver and Dak Dispatcher Customer Service Officer Amir Sulehri Sajid Mustafa Ahmed raza Nusheela Ehsan Baig Mehak meyer

3.2.2 DUTIES OF BANK STAFF Amir Sulehri works as a chief manager and supervise the branch Sajid Mustafa is operational manager. His work includes issuing of checque book, ATM card pin code and all the operation of branch. He maintains ATM, clearing and transfer sheets. Pay order, demand draft, money transfer and telephonic transfers include in his responsibilities. He issues all these instruments and receive .all related vouchers are prepared and entered in proper sheets. He has to match his sheets with computer sheets. Signature identification and checque passing is very tough job. He work in category of signature identifier Mehak Mayer working as a Customer Service officer. She also holds the position of customer relation officer. New accounts are opened by him and also receive the ATM form. She maintains all records of customers account. she enters in customers accounts what is coming and what is going. She enters new records of customers and data for ATM cards. She also activates ATM card.

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Ahmed Raza is working in the capacity of computer operator. He is in very key position. He maintains all records on computer. All transaction must be entered in computer. So he has to be very careful at every time. Record maintain through computer must be tally with computer. All new accounts must be entered in computers he has to perform all computer related tasks.Position of accountant is very much responsible in any organization. He working in the category of accountant. He is responsible for manual bookkeeping. He receives checqe for clearance. He enters these instruments in analysis sheet. Local and outstation are kept separately. Local checqe directly send for clearance where as outstation checque are send with proper slip. Local instruments come back in three days while outstation return after five or six days. Nusheela are dealing with Cash. Cash payments & Cash receipt must be transfer with very care. The cashier has very tough job. He has to be very conscious at every time. He has to maintain his own cash sheet, which should be matched at end of day. Ehsan receives utility and telephone bills. It is very pain taking work. He receives bills from public during working hours and at the end day prepare scroll.He performing the job of dak dispatcher. He has to receive all advices. All advices received and dispatched properly entered. I personally feel working in bank is very tough and critical but all the staff is performing very well. It is necessary for success of any organization that its staff feels responsibility.

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3.3 DEPARTMENTS
For proper functioning of branches and the over all 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: Cash department Deposit department Advances & credit department Remittance department Foreign exchange department Technology department

3.3.1 CASH DEPARTMENT This is a very technical and pains taking job. Because it is main function of bank to receive deposits and make payments. It includes two heads: Cash payments Cash Receipts 3.3.1.1 Cash Payments: Cash is paid against a checque presented by customers. Cash officer is bound to make payment against this debit advice(checque) following points should be keep into mind whole making payment against checque.

It should not be post dated.

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 Amount in words and figures should be same. Signature should be matched with specimen. There is no cutting or over writing in checque. It should not be tear. There is availability of balance to make payment. After checking all these precautions payment is made against checque. The amount is posted in a persons account. And it is also in proper sheet. And at the end of day cash is sorted and tally with available funds. 3.3.1.2 Cash Receipts: Cash is received through pay in slip. When cash is receive from customer it is properly counted, and make sure all particulars are properly filled following points must be considered cash from customers Date is properly enter on slip. It is filled on proper slip i.e. separate slips for a current and saving accounts Amount in words and figure is same There is no cutting on slip After cash is receive and deposited into proper account .at the end of day balance of cashier is equal to ledger balance.

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3.3.2 DEPOSIT DEPARTMENT Bank deals in money and they are merely mobilizing funds within the economy. They borrow from one person and lend to another, the difference between the rate of borrowing lending forms their spread or gross profit. Therefore we can rightly state that deposits are the blood of the bank which causes the body of an institution to get to work. These deposits are liability of the bank so from point of view of bank we can refer to them as liabilities. The total deposits of MCB are growing since its inauguration but after privatization there is a sharp incline in over all deposits of the bank. The increase in deposits is also a cause of increase on total number of accounts; bank has progressed in both aspects. 3.3.2.1 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.

Time deposits / liabilities 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.

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In the similar fashion, MCB has a large variety of deposit schemes and some of them are as follows: 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 of Rs. 1000/-. Usually this type of account is opened by the businessmen. No profit is paid by the bank.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 month. Zakat & other withholding taxes are deducted as per rules of the government. KHUSHALI BACHAT ACCOUNT This is an advance form of PLS saving a/c, in this type of account. The minimum balance requirement for this type is Rs. 5000/-. There is also restriction on the number of withdrawals as well, i.e. up to 4 times in a calendar month. For maintaining this extra balance the customer gets the benefits of profit calculation on daily product basis and also free service of standing instructions of paying utility bills All other rules of saving account are applicable.

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PLS 365 GOLD This is a special type of saving account in which customer maintains a minimum balance of Rs. 300,000- and in turn he gets the benefits of daily profit calculations and also there is no restriction on the maximum number of withdrawals as was there in the case of KBA. There is also another advantage of this scheme that if balance on a particular day falls below the minimum balance then only the product of that day is ignored whereas in KBA, if balance falls below the minimum limit then all the products for that month are ignored on in other words no profit is paid for that month. 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.Under this deposit scheme, a deposit is received from the depositor under the condition that he will intimate the bank before a certain period in case of withdrawals. 3.3.2.2 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. 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.

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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. Accounting Entries Accounting entries are also made in the respective books of account by this department. However, in small and medium size branches, the accountant performs the book keeping duties for all kinds of ledgers.

3.3.3 CLEARING DEPARTMENT Clearing Department deals with collection of cheques drawn on and to bank by parties for collection. Clearing Department is very important department of each and every bank which facilitate rapid communication between branches of same bank as well as of other banks thus facilitate customers for realization of their funds. In past clearing was done by individual departments of each bank generally located in Main Branch of Bank. All branches of region used to sent cheques of other branches and banks to Main branch through special messengers. Main branch after sorting of these cheques used to sent the same to respective branch or bank. That whole process took lot of time and resources of the bank. But now this whole function of department is done by special institute called NIFT (National Institution Financial Technologies) whose board of directors are representatives of all banks.

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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 (NIFT). 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 that drawer or holder of a cheque or draft may cross the instrument generally or specially. It further lies down that a crossed cheque can only be paid to a banker, who collects it for a customer in good faith and without negligence. 3.3.3.1 Types of Cheques Transfer cheques : are those cheques, which are collected and paid by the same branch of bank. Transfer delivery cheques : are those cheques, which are collected and paid by two

different branches of the same bank situated in the same city. Clearing cheques : are those cheques, 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. 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. 3.3.3.2 Functions of Clearing Department To accept Transfer, Transfer delivery, clearing and collection cheques from the customers of the branch and to arrange for their collection. 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. 38

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 Receiving and scrutinizing the cheques and other deposit instruments, and the pay-inslip at the counter. Fixing the stamps. Scrutiny and receipt by the authorized officer. Returning the counter file to the depositor. Certificate and confirmation by the officer in charge of the department. , Separating the cheque into transfer, transfer delivery, and clearing cheques

3.3.3.3 CLEARING PROCESS (FLOW CHART)

Cheque with slip given Slip is asked & filled

Cheque along with slip checked, signed & received by officer

Entries in daybooks are made

Entries checked & verified by another officer after banking hours by officer

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Cheques collected at the day end by Clearing House (NIFT)

Cheques are sent to respective banks next day after posting in computer by NIFT

The same day not honored cheques are returned to respective Branch

The day after tomorrow the banks are informed about dishonored cheques

Party is informed about returned cheques through Phone or personal contact

Cheques are mailed through TCS in case of no personal contact the same day (If there is any availability)

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3.3.4 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. Loans Cash Credits Overdraft 3.3.4.1 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; 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

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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. 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. 3.3.4.2 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

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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 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. HYPOTHECATION OF STOCKS The difference between pledge and hypothecation is that under a pledge the borrower's goods are placed in the bank's possession under own lock, whereas, under a hypothecation, they remain in the possession of the borrower or guarantor and are merely charged to the bank under documents signed by them. Even though the documents empower the bank to take possession of the goods hypothecated, but it is possible that the borrower may actually resist any attempt. MORTGAGE OF PROPERTY Title deeds of immovable property are accepted by the bank only as collateral security or alternatively as unauthorized security.

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3.3.5 REMITTANCE DEPARTMENT

Remittance department performs following functions: Cross Branch Transfer (CBT) Demand Drafts (DD)

3.3.5.1 CROSS BRANCH Transfer (CBT) This type of transfer is simple. It facilitates the customer for transfer of funds from one branch to another branch of other city. Any person can make his transaction proceeds within minutes. This is very widely used online facility. Process is very simple. Customer come to branch with relevant information of beneficiary i.e. his name, account number and address etc. He is facilitated to fill Online Funds Transfer Form in branch. Then he either give his cheque against remittance amount or deposit cash for processing of his transaction. His funds are transferred to beneficiary account before leaving branch. MCB is charging very nominal charges for this facility which is not more than Rs. 50/3.3.5.3 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. 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 called SF 100. Then the concerned officer process his request on completion of formalities by customer which include providing of cheque or cash for Demand Draft and customer signatures. Demand draft is then printed and handed over to customer and customer then leaves the branch.

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3.3.5.3 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. 3.3.5.4 Bank Charges (Jan-June 2010) S. # 1 2 3 Item Issuance of DD Issuance of PO Cancellation of DD/Pay order Rate Rs. 100 Rs.75 Rs.50 far Account holder Rs.100 far non Account holder 4 5 6 Issuance of Cheque Book Account closing Cost Issuance of duplicate Draft Rs. 6 per leaf Rs.250 for LCY Rs.200 far Account holder Rs.500 far non Account holder 7 8 Issuance of duplicate FDD Issuance of duplicate Pay order Rs.500 Rs.200 far Account holder Rs.500 far non Account holder 9 10 11 12 Issuance of RTC Stop payment charges Issuance of fresh statement Issuance of duplicate statement No charges Rs.250 Rs.50 Rs 50

3.3.6 TECHNOLOGY DEPARTMENT

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Technological advancements are also affecting the banking industry. The foreign banks have a competitive edge over all local banks in their technologies' advancements and automated systems. Local banks have also realized the gravity oil this situation and are striving to add computerized systems to their branches MCB is ahead of all other local banks in this field and now it is in a position to even compete with foreign banks. There are more than 1081 branches of MCB all over Pakistan and out of these almost all branches are computerized therefore, the need for a technology department at each branch is growing. Now a day, a computer division is working in each city to provide service to aid the branches of that area. MCB has also introduced the now concept of online banking. All branches are linked through this system and they can transact with each other directly using computer systems at their own branches. Now customers do not have to wait long for their transactions and can operate their account through all the online branches. 3.3.6.1 ATM Network ATM stands for Automatic Teller Machine. This machine is used to transact in one's account without intervention of humans. These machines are basically used for taking cash, confirming balances and requesting statements / cheque books. Now ATMs of MCB are also serving other purposes like payment of credit card bills, mobile postpaid bills, utility bills and purchase of prepaid cards of mobile companies. MCB has the largest ATM network in the country at the moment with almost more than more than 495 ATMs in Pakistan as well as overseas. MCB also has ATM terminals at International Airports. This network covers more than the 38 cities of Pakistan including the provincial capitals and large commercial cities of the country.ATMs are operated through a card issued to the valued customers and by

application of Personal Identification Number (PIN number). A person can withdraw from any machine across Pakistan with having an account in only one branch of MCB. This was only possible with the help of online system. In this system all the 46

machines are linked to central banking host at IRM division Karachi through either satellite or telephone controller. This system identifies the card holder and his PIN Number. Now MCB has also entered into a contract with Cirrus which is a subsidiary of MasterCard. This contract will enable an ATM card holder to use his account even when he is out of country at all the ATMs where Cirrus logo is displayed. Blue Cards are ordinary cards with a maximum withdrawal facility of Rs. 10,000/- in a day. The annual fee for this card is Rs. 350/- only. Gold Cards are special cards with maximum withdrawal limit of Rs. 25000/- in a day. These cards are issued to any account holder. The annual fee of Gold Cards is Rs. 500/International Cards are issued in collaboration with Cirrus and are useable all over

the world with maximum withdrawal facility according to the standards of Cirrus. Annual fee of Internalional cards is also Rs. 500/- per annum.

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4.1 STRUCTURE OF ACCOUNTS DEPARTMENT IN TERMS OF REPORTING LINE

In Accounts department Accounts Officer is on bottom line. Accounts officer deal with all accounts related activities like posting in account and other amendments etc. Accounts Officer reports to Current Saving Incharge about his working and reports at any time. Where as Current Saving Incharge reports to Branch Operations Manager of the branch about his working. Branch Operations Manager is responsible of reporting to Regional Operations Manager of the region or zone. Regional Operations Manager is responsible and reportable about his work to General Manager Operations. General Manager Operations reports to Group Head Operations. Group Head Operations reports to Business Head Operatiosns about all working of operations under his supervision. Group Head Operations of the bank reports to President of the bank. All above mentioned is the hierarchy showing reporting line in Accounts Department of the bank.

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4.2 FINANCE & ACCOUNTING OPERATIONS:

Every branch has it own Account Department which is responsible to record and process each & every business transaction taking place during the working day. This Department consolidates the position of the branch at the day end in the shape of Assets, Liabilities, Revenues and Expenses. This position is daily sent to the Finance Department of Head Office which consolidates all these Statement of Affairs bank wise. This position is sent to the State Bank of Pakistan (SBP) and SBP publishes on weekly basis overall consolidated Statement of banks in business news papers like Business Recorder (BR). The main function of Finance Department of Head Office is to maintain smooth liquidity of bank by arranging funds from SBP and other banks if required. This Department is also responsible for making physical investment on behalf of bank into government securities and other corporate securities.

4.2.1 REPORTS GENERATED BY KM TEAM: Days Journal. Daily General Ledger Report. Daily Batch Listing Change in accunt status Branch Deposit Summary High Value Transaction Summary Account Open Report

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 Account Close Report Cheque book charges Report DD / PO issuance Report Stop Payment Report Outstanding DD /PO Report

4.2.2 RECORDING AND USE OF REPORTS: All system generated reports are filed date wise and month wise accordingly in different binders. These reports are reviewed on daily basis by Branch Manager and Branch Operations Manager for checking of daily activities done. These reports are recorded for audit trail also. Minute analysis of these reports also help Branch supervisors to keep eye on branch position in term of different departments. If these reports show any misclassification or wrong posting of accounts these can be rectified by viewing summary. So, recording and proper checking of these reports are very helpful tool for branch officials to check overall position and working of branch. It also help Regional Heads and Regional Operational Manager to analyze overall position of their region for specific period. In broader sense these reports in compiled form also help individual group of bank to check its performance. Practical illustration of system generated reports is shown at the end of this report.

4.2 THE ROLE OF FINANCIAL MANAGER:

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FINANCIAL MANAGER: The person which manages the financial resources of a business is called financial manager. EXPLANATION: The emergence of financial management as a distinct management discipline is relatively recent and linked to changes in business and socio-economic scenario, brought about by the advancements in computer and information technology, emergence of multiproduct and multi-division corporations with complex and dynamic organizational set-ups, increasing global competition etc. Finance, no doubt, is the sine qua non of business operations, and traditionally the role of financial manager (known as an accountant or accounts manager) was limited to managing business finance or counting the beans. However, the emerging discipline of financial management varies considerably from its traditional functions and extends to more inclusive functions of growing the beans. Almost every firm, government agency, and other type of organization has one or more financial managers who oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. Because computers are increasingly used to record and organize data, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization. ROLE & DUTIES OF FINANCIAL MANAGER: The duties of financial managers vary with their specific titles, which include controller, treasurer or finance officer, credit manager, cash manager, and risk and insurance manager. Controllers direct the preparation of financial reports that summarize and forecast the organizations financial position, such as income statements, balance sheets, and analyses of future earnings or expenses. Controllers 51

also are in charge of preparing special reports required by regulatory authorities. Often, controllers oversee the accounting, audit, and budget departments. Treasurers and finance officers direct the organizations financial goals, objectives, and budgets. They oversee the investment of funds, manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firms expansion, and deal with mergers and acquisitions. Credit managers oversee the firms issuance of credit, establishing credit-rating criteria, determining credit ceilings, and monitoring the collections of past-due accounts. Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations. Cash Managers: monitor and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm. For example, cash flow projections are needed to determine whether loans must be obtained to meet cash requirements or whether surplus cash should be invested in interest-bearing instruments. Risk and insurance managers oversee programs to minimize risks and losses that might arise from financial transactions and business operations undertaken by the institution. They also manage the organizations insurance budget. Financial Institutions : such as commercial banks, savings and loan associations, credit unions, and mortgage and finance companies, employ additional financial managers who oversee various functions, such as lending, trusts, mortgages, and investments, or programs, including sales, operations, or electronic financial services. These managers may be required to solicit business, authorize loans, and direct the investment of funds, always adhering to Federal and State laws and regulations.

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Branch Managers : of financial institutions administer and manage all of the functions of a branch office, which may include hiring personnel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting customers with account problems. The trend is for branch mangers to become more oriented toward sales and marketing. It is important that they have substantial knowledge about all types of products that the bank sells. Financial managers who work for financial institutions must keep abreast of the rapidly growing array of financial services and products. 4.3.1 ACCOUNTS MANAGEMENT: Being the Manager of the branch it is the duty of the Branch Manager to properly manage the accounts that are deposited in the respective branch. Main duties of Branch Manager regarding accounts management are: To ensure that the Accounts Officer is maintaining proper books of accounts including basic accounting controls like daily verification of cash in hand, daily entry of cash & bank vouchers, Bank Reconciliation statements, accounting of Receipts / Payments correctly. To supervise and maintain the Assets Records of branch including obsolescence / Sale through auction or otherwise, conducting physical verification of assets annually and reporting variations, if any, to HQs & BEC. To prepare the Annual Programme and Budget (APB) and Annual Report of the Branch with the help of the Accountant/Statistical Assistant and concerned unit heads, supported by the volunteers. There is system in MCB called KM Reports that generate necessary reports on dialy basis and these reports are sent to branch via email. The reports generated on this system should review on daily basis by Branch Manager under his signatures and also by the Area Manager and a complete record of these reports in date order should be filed.

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4.3.2 CASH MANAGEMENT: The key person in banking is the Branch Manager who is not only responsible for mobilization of deposits for the bank but also to generate foreign exchange and other business for the bank. He is also taking care that customers of bank are properly served & their problems are immediately solved. He is also responsible for cash management & credit management. In every city there is a Main Branch (Feeding Branch) of a bank (MCB) which is custodian of cash. All excess cash in the branch is deposited with this branch & whenever any branch needs cash to pay off to the depositors, the Branch Manager is required to accordingly. 4.3.3 CREDIT MANAGEMENT: As regarding credit management there is a department in the bank called Credit Administration Department (CAD). Deposits are the liabilities of bank while advances are the assets of the bank. To balance these two sides, bank attracts the current as well as Prospective customers to deposit their savings by offering high rate of interest/ profit, while in order to increase its assets, bank attracts its customers by Corporate Banking Group (CBG) & Commercial Branch Banking Group (CBBG). When the credit facilities are approved then work of credit administration department starts. It performs two functions: Pre-dispersal function (before advancing facility) Post-dispersal Function (after credit facility is dispersed) It keeps three sections named as: Processing Section Documentation Section MIS (Management Information System) Section

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Relationship managers (RMs) bring cases from customers and present to RCAD. RHs have direct contact with customers. Case first comes to Processing Officer who checks the necessary prudential requirements if so then case is forwarded to Risk Management Department (RMD) otherwise send back to (RH) to fulfill necessary requirements. Risk Management Department (RMD) verifies attached documents and send back documents after risk analysis and mention how much loan is to issue (under SBP limitations). Documentation Officer verifies the originality of documents attached and finally DAC (disbursement authorization certificate) is issued to customer. MIS keeps record of the customer in computer.

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4.4 USE OF ELECTRONIC DATA IN DECISION MAKING: In todays banking new devices have been introduced for efficient & courteous service to the client. Like Online Banking, Net Banking, Mobile Banking, Auto Teller Machines (ATMs) & Electronic Cashiers. In MCB most of the decisions are made after getting approval from authority using electronic data. Now a days Statements of Accounts are not dispatched to the account holders. Instead they have been given option to get their Statements printed while using Net Banking. MCB has its own network of more than 495 ATMs in more than 38 cities. Moreover customers can give all types of instructions in respect of their transactions through E-mails, Net & Mobile Banking. So we can say that electronic data is very widely used in todays banking. In branches MCB is using their personal software called SYMBOLS. To maintain and exercise and better controls on operations, SYMBOLS provides controls in the shape of daily override/exceptions reports to the branch manager & respective staff. The exceptions include the following: Transaction by un-issued / loose cheques. Transactions over debit limit of user. Transactions on limit expired accounts. Transactions of excess over limit in Party accounts. Back dated transaction in the accounts. Transaction in restricted accounts. Reversal entries. Change in customer name, address or other details. etc.

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These reports are reviewed by the Manger of the branch and also by the Area Manager which helps them in decision making. This system also provides the following Statements/Reports: 4.1.1 REPORTS GENERATED BY KM TEAM: DAILY: Days Journal. Daily General Ledger Report. Daily Batch Listing Change in accunt status Branch Deposit Summary High Value Transaction Summary Account Open Report Account Close Report Cheque book charges Report DD / PO issuance Report Stop Payment Report Outstanding DD /PO Report MONTHLY: Consolidated income/expenditure. Incidental charges. Customer ledger dormant/active.

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YEARLY: Zakat exemption report. Zakat deduction report. LAPTOPS: According to ITG (Information Technology Group-UBL) Policy this type of equipment must be used for official purposes only. Laptops are provided to the persons with the designation having SVP (Senior Vice President) or higher. PDA :( PERSONAL DIGITAL ASSISTANT) The intended use for the PDA is to facilitate MCB employees for the following business objectives: 24x7 Access to MCB corporate Emails. List of tasks. Access to GAL (Global Address List). Any other services that may be offered by MCB ITG to corporate users. Updated contact list.

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4.5 SOURCES & GENERATION OF FUNDS:

Main sources and generation of funds for the bank are as under: 1. Deposits from Customers. 2. Borrowings from Financial Institutions.

4.5.1 DEPOSITS FROM CUSTOMERS:

DEPOSIT CUSTOMERS 2009 2008 2007 Rupees in 000 Fixed Deposit Saving Deposit Current account-non remuneretive Margin account Others Total customers Deposits 62,651,531 173,797,078 123,898,324 2,910,655 767 363,258,355 61,680,332 150,927,938 105,310,862 3,137,434 563 321,057,129 32,202,230 151,555,718 95,966,877 2,589,309 4,288 282,318,422 33,297,203 136,872,384 81,658,304 2,447,944 4,336 254,280,171 13,296,121 137,067,311 74,331,042 2,568,306 41,396 227,304,176 2006 2005

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual 59

COMMENTS Total deposits from customers have been increased 60% in 2009 as compared to 2005. This increase is due to major increase in Fixed & Saving deposits of the bank. As we compared fixed deposit with previous years fixed deposit continuously increased from 2005 to 2009.In 2009 fixed deposit is Rs.62,651,531 and in 2005 Rs.13,296,121 and saving deposit is also increased from 2005 to 2009.In 2009 saving deposit is Rs.173,797,531 and in 2005 Rs.137,067,311.Current non remunerative has increasingly Deposit from in local currency is Rs.336,180,581 in 2009 , Rs.312,829,233 in 2008 and in foreign currency Rs.31,424,130 in 2009 and Rs.17,352,391 in 2008.

4.5.2 BORROWING
BORROWING In Pkaistan Outside Pakistan 2009 43,658,408 1,003,680 44,662,088 Particular of borrowing with respect to currencies In local currency In foreign currency 43,658,408 1,003,680 44,662,088 Detail of borrowings(secured/unsec ured) Borrowing from State Bank of Pakistan Export refinance scheme Long term financing -export oriented project scheme 8,829,527 2,098,550 9,217,004 2,100,751 5,593,462 2,473,077 6,727,670 2,313,030 4,980,519 17,742,776 4,921,064 22,663,840 35,497,881 3,908,950 39,406,831 20,304,629 3,638,847 23,943,476 24,693,569 2,683,933 27,377,502 2008 17,742,776 4,921,064 22,663,840 2007 35,497,881 3,908,950 39,406,831 2006 20,304,629 3,638,847 23,943,476 2005 24,693,569 2,683,933 27,377,502

60

Borrowing from other financial institution Repurchase agreement borrowing

452,398 31,606,331 42,986,806

6,325,021 17,642,776

2,932,600 26,931,342 37,930,481

2,932,817 11,263,929 23,237,446

1,970,562 19,473,049 26,424,130

unsecured Call borrowings Overdrawn nostro account 1,146,092 529,190 1,675,282 Total Borrowing 44,662,088 4,418,990 602,074 5,021,064 22,663,840 500,000 976,350 1,476,350 39,406,831 89,003 617,027 706,030 23,943,476 459,365 494,007 953,372 27,377,502

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

COMMENTS: The Bank has entered into agreements for finance with the State Bank of Pakistan (SBP) for extending export finance to customers. As per the agreements, the Bank has granted SBP the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintaining by the Bank with SBP. The amount is due to SBP and have obtained for providing long term finance to customers for export oriented projects. As per the agreements with SBP,the Bank has granted SBP the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with SBP.Borrowing from SBP under the export refinance and long term financing fort export oriented projects schemes are secured against the Banks cash and security balances held by the SBP.These carry mar-up at the rate 5% per annum(2008:NIL).These carry mark-up rates ranging

61

between 12.05% to 12.50% per annum , 2008: 7.50% to 14.90% per annum, 2007: 9.2% to 10% per annum, 2006: 8.0% to 9.4% per annum and are secured against government securities of carrying value of Rs.31,513.525 million, 2008: Rs.6,287.636 million, 2007: 26,996.870 million, 2006: 11,298.39 millions. These are repayable latest by January 2010. These carry mark-up at the rate of 12.40% (2008:15.50%) .These are repayable by January 2010.

4.6 ALLOCATION OF FUNDS:

Banking deposits are used and allocated in the following channels: 1. Lending to Financial Institutions. 2. Investments (In Securities). 3. Advances 4.6.1 LENDING TO FINANCIAL INSTITUTION
2009 Call money lending Repurchase agreement lending 3,000,000 3,000,000 2008 17,000,000 2,400,079 4,100,079 2007 1,051,372 1,051,372 2006 9,050,000 12,031,800 21,081,800 2005 8,650,000 1,348,828 9,998,828

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

62

COMMENTS These carry mark-up rates ranging from 12.35% to 12.75% per annum , 2008: 15.75% to 21% per annum , 2007; 9.65% to 12.19% per annum and 2006: 10% to 12% per annum and are due to mature latest by February 2010, Market value of security held as collateral against landings to financial institution as at December 31, 2009 amounted to Rs.NIL, 2008: Rs. 2,408,610 million, 2007: amounted to Rs.NIL and 2006: Rs.12,456 million. These carry mark up at rate of NIL per annum 2008: 9.50% to 14.90% per annum,2007 NIL and 2006: 8.30% to 9.60% per annum

4.6.2 INVESTMENT NET

Rupees in 000 2009 Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Federal Government Securities Government Compensation Bonds Euro Bonds Sukuk Bonds Unlisted Term Finance Certificate Overseas Government Securities Government of Sri Lanka 70,000 139,569,774 7,699,324 171.583 286.557 684.81 1.503.702 3.000.000 70,513,126 4,683,476 322.216 870.771 4.969.516 1.838.533 3.000.000 85,481,869 5,104,072 704,928 870,771 3,299,630 1,585,475 36,872,804 3,791,439 825,719 870,771 3,019,135 1,573,478 46,999,774 4,507,801 992,861 870,771 2,971,758 759,767 2008 2007 2006 2005

63

Treasury Bonds Market Treasury Bills Provinvial Government Securities Subsidiaries and associated Undertakings Fully Paid-up Ordinary Shares/Certificate/Units Listed companies/mutual funds/modarabas Unlisted companies/funds Units of open Ended Mutual Funds Fully Paid-up Preference Shares Listed Companies Unlisted Companies Term Finance Certificate,Debentures,Bonds and Participation Term Certificates Listed Term Finance Certificates Unlisted Term Finance Certificates Debentures, Bonds and Participation Term Certificate (PTCs) Certificates of investment Other Investments Sukuk Bonds NIT Units Total investments at cost Less: Provision for diminution in the value of investments Investments (net of provisions) 1,650,227 5,253 170,515,851 -3,686,520 166,829,331 1,337,727 5,253 102,543,652 -3,044,962 99.498,690 600,000 5,253 111,816,633 -468,288 111,348,345 5,253 62,178,078 -363,019 61,815,059 83 68,261,026 -547,424 67,713,602 1,831,777 1,129,096 1,404,384 897,448 1,136,821 1,223,068 1,450,659 1,946,344 1,173,320 1,271,631 61,602 100,000 61,602 100,000 61,602 100,000 61,602 100,000 65,470 7,071,612 413,843 442,981 8,306,012 415,724 661,909 7,557,700 415,333 1,662,063 5,749,225 437,012 118,595 5,035,363 443,369 3,387,148 118 1,384,826 1,321,816 118 1,384,432 118 1,384,432 118 13,644,332 118 1,064,452 -

121,618 -

129,589 250,000

123,498 500,000

441,492 3,550,000

604,488 1,500,000

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Surplus / (deficit) on revaluation of available for sale of securities - net Deficit on revaluation of held for trading securities - net Investment at revaluated amount - net of provisions

305,134 167,134,465

-2,763,618 -103,198 96,631,874

1,754,021 -13,105 113,089,261

1,671,257 63,486,316

1,766,251 1,634 69,481,487

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

COMMENTS Investments include certain approved / government securities which are held by the Bank to comply with the Statutory Liquidity Requirement determined on the basis of the Bank's demand and time liabilities as set out under section 29 of the Banking Companies Ordinance, 1962. .Available for sale Market Treasury Bill and Pakistan Investment Bonds are eligible for rediscounting with the State Bank of Pakistan (SBP).The market value of Pakistan Investment Bonds and Market Treasury Bills classified as held to maturity as at December 31,2009 amounted to Rs.1,867.674 million and Rs.3,387.148 million (2008: Pakistan Investment Bonds Rs.1,659.166 million and Market Treasury Bills Rs.1,436.673 million) receptivity and as at December 31 2007 amounted to Rs.1,990.67 million and Rs.237.70 million (2006:Market treasury Bills Rs.Nil and Pakistan Investment Bonds Rs.1,978.22 million) respectively.

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Investment of the bank in Adam jee Insurance Company Limited is carried at cost amounting to Rs.943.600 million,2008:Rs.943.600 million,Rs.2007:943.600 and 2006: Rs.943.600 as at December 31,2009 on accordance with the treatment specified in International Accounting Standard (IAS) 28Accounting for Investment in Associates. The market value of the investment in Adam jee Insurance Company Limited as at December 31,2009 amounted to Rs.4,039.049 million ,2008:3,032.786,2007:10,671.631 and 2006: Rs.4,481.877 million. At December 31,2009 market value of quoted investments was Rs.161,322.481 million,2008: Rs.83,847.918million ,2007: Rs.113,048.129 million and 2006: 53,852.405 million while the book value of unquoted investments was Rs.8,526.863 million ,2008: Rs.13,959.421million, 2007:Rs.9,391.098 million and 2006: 12,711.323 million.Investment include Pakistan Investment Bonds amounting to Rs.232.60 million, 2008: Rs.232.60 million, 2007:232.60 million and 2006:Rs. 232.60 million earmarked by the SBP and National Bank of Pakistan against TT/DD discounting facilities and demand note facilities sanctioned to the Bank. In addition, Pakistan Investment Bonds amounting to 2009, 2008,2007 and 2006 Rs.5 million have been pledged with the Controller of Military Accounts on account of Regimental Funds account.During the year, the bank has incorporated MCB Leasing Closed Joint Company in Azerbaijan to undertake leasing business.Information relating to investments in ordinary shares and preference shares of listed companies and unlisted companies required to be disclosed as part of the financial statements under BSD Circular No.04 of 2006 dated February 17,2006, is given in Annexure I.Certain approved / Government securities are kept with the SBP to meet statutory liquidity requirements calculated on the basis of domestic demand and time liabilities.

4.6.3 ADVANCES
RUPEES IN 000 2009 Loan,cash credits,running finance, etc In Pakistan 247,718,21 0 252,012,59 4 208,587,01 4 189,472,03 4 174,625,232 2008 2007 2006 2005

66

Outside Pakistan

7,788,234 255,506,44 4

8,910,253 260,922,84 7

6,989,947 215,576,96 1

5,172,803 194,644,83 7

3,755,036 178,380,268

Net investment in finance lease In Pakistan Outside Pakistan

3,867,943 65,492 3,933,435

5,358,475 90,733 5,449,208

6,904,399 67,710 6,972,109

6,082,806 85,865 6,168,671

3,897,184 93,330 3,990,514

Bills discounted and purchased (excluding treasury bills) Payable in Pakistan Payable outside Pkaistan Advance gross Provision against advances Specific provision General provision General provision against consumer loans General provision for potential lease losses (in Srilanka operation) Advances - net of provision 4,519,520 5,762,777 10,282,297 269,722,17 6 -15,678,345 -269,722 -494,434 2,364,211 4,111,059 6,475,270 272,847,32 5 -9,895,889 -273,222 -533,693 2,949,228 4,234,574 7,183,802 229.732.87 2 -7,326,953 -2,749,815 -688,665 1,761,803 4,272,188 6,033,991 206.847,49 9 -5,953,234 -2,277,467 -373,823 2,386,952 3,381,943 5,768,895 188,139,677 -5,534,376 -2,098,053 -180,554

-30,268 -16,472,769 253,249,40 7

-9,051 -10,711,855 262,135,47 0

-6,841 -10,772,274 218,960,59 8

-3,820 -8,608,344 198,239,15 5

-3,941 -7,816,924 180,322,753

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

Comments

67

Non-performance portfolio of agriculture financing classified as OAEM as per the requirement of the prudential Regulation fir Agriculture Financing issued by the State Bank of Pakistan.General provision against represent provision maintained at around .1% of gross advancesState Bank of Pakistan vide BSD Circular No.2 dated January 27, 2009 and BSD Circular NO 10 dated October 20,2009 has allowed benefit of forced sale value (FSV) of pledged stock and mortgaged residential, commercial and industrial properties (land and building only) held as collateral against NPLs for three years from the date of classification.However,management has not taken the said benefit in calculation of specific provision, other than mortgage and agriculture financing. General provison against consumer loans represents provision maintained at an amount equal to 1.5% of the fully secured performance portfolio and 5% of the unsecured performance portfolio as required by the Prudential Regulation.In term of sub-section (3) of Section 33A of the Banking Companies Ordinance. 1962, the statement in respect of written-off loans or any other financial relief of five hundred thousand Rupees or above allowed to a person during the year ended December 31,2009 is given at Anneure-111.However, this write off does not affect the Banks right to recover the debts from these customers.

68

5 - CRITICAL ANALYSIS OF THEORETICAL CONCEPTS RELATING TO PRACTICAL EXPERIENCE:

All concepts which are discussed as theoretical aspect of organization are very affected if it is implemented in true spirit and with availability of resources but practically there is difference due to shortfall of resources and other aspects. For example if we look into customer services of the organization theoretically we see that bank is providing good and affective customer services thus ensuring overall customer satisfaction. But if we see practically this is not being implemented as theoretically observed. Customer suffering in term of timely providing of services is observed practically. Reasons are non availability of online system due to network failure in real time and lack of knowledge of products offered by bank of employees for providing services to customer. There are other aspects too which show difference of theoretical concepts of the organization and its practical implementation. Like theoretically we are equipped with best online branches all over the country but it is the general complaints of customers that branch remain offline for long period of time. It affects customer services and also affects reputation of the bank in term of timely services of the bank. Theoretically, there is variety of products offered by bank to customers but customers are not awared about these products due to lack of knowledge of staff about that products. So, these are some examples showing difference of theoretical concepts with practical delivery of services and products.

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6 - FINANCIAL ANALYSIS
"Financial statement analysis is the process of identifying of financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit &loss account," and it is done through ratio analysis.

6.1 BALANCE SHEET OF FIVE YEARS FOR THE LAST FIVE YEARS
ASSETS Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investment-net Advances-net Operating fixed asstes Dsferred tax assets-net Other assets-net LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loan Liabilities against assets subject to finance lease Deferred tax liabilities-net Other liabilities NET ASSETS Share capital Reserves Unappropriated profit Surplus on revaluation os assets-net of tax 2009 38774871 6009993 3000000 167134465 253249407 18014896 23040095 509223727 8201090 44662088 367604711 3196743 15819082 439483714 69740013 6911045 38385760 15779127 61075932 8664081 69740013 2008 39631172 4043100 4100079 96631874 262135470 17263733 19810476 443615904 10551468 22663840 330181624 437137 21345781 385179850 58436054 6282768 36768765 9193332 52244865 6191189 58436054 2007 39683883 3807519 1051372 113089261 218960598 16024123 17868751 410485517 10479058 39406831 292098066 479232 1180162 11722493 355365842 55119675 6282768 34000638 5130750 45414156 9705519 55119675 2006 32465976 6577017 21081800 63486316 198239155 9054156 172373 11031450 342108243 7089679 23943476 257461838 1597440 11171496 301263929 40844314 5463276 24662426 5530973 35656675 5187639 40844314 2005 23665549 1466045 9998828 69481487 180322753 8182454 191967 5471697 298780780 8536674 27377502 229341890 1598080 8192338 275046484 23734296 4265327 9054940 4990260 18310527 5423769 23734296

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

70

6.2 PROFIT AND LOSS ACCOUNT FOR THE LAST FIVE YEARS \
PARTICULARS Mark-up/return/imterest earned Mark-up/return/imterest expensed Net mark up/interest income Provision for diminution value of investment Provision against loans and advances-net Bad debts written off directly Net mark up/interest income after provisions NON-MARK UP/INTEREST INCOME Fee,commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale os securities-net Unrealized loss on revaluation of investment classified as held for trading Other income Total non-mark up/interest income 2009 51616007 15841463 35774544 1484218 5796527 41576 7322321 28452223 2008 40043824 11560740 28483084 2683994 1335127 4019121 24463963 2007 31786595 7865533 23921062 105269 2959583 199 3065051 20856011 2006 25778061 4525359 21252702 121197 1014540 47000 1182737 20069965 2005 17756232 2781468 14974764 (98982) 1242153 1184 1144355 13830409

3331856 459741 341402 773768 736118 5642885 34095108

2953394 617554 727564 740429 (103198) 855697 5791440 30255403

2634610 632300 693408 1500865 (13105) 563213 6011291 26867302

2311235 811801 692010 605865 570505 4991416 25061381

2448950 480344 531455 866112 1634 1425174 5753669 19584078

NON-MARK UP/INTEREST EXPENSES Administrative expenses Other provision-net Other charges Total non mark up /interest expenses Extra ordinary /unusual item PROFIT BEFORE TAXATION TAXATION Current year Prior years

10107189 142824 690150 10940163 23154945 7703305 (2232226)

7546878 23135 817824 8387837 21867566 7341257 (864824)

5022416 (3743) 540594 5559267 21308035 6442356 (1294473)

6482592 11411 66708 6560711 18500670 5701443 593497

6459490 (72740) 178841 6565591 13018487 4611359 (149763)

71

Deffered PROFIT AFTER TSAXATION Unappropriated profit brought forward Transfer from surplus on revaluation of fixed assets net of tax Profit available for appropriation

2188569 7659648 15495297 9193332 22324 9215656 24710953

16533 6492966 15374600 5130750 21319 5152069 20526669

894590 6042473 15265562 5530973 11855 5542828 20808390

63332 6358272 12142398 4990260 32166 5022426 17164824

(365524) 4096072 8922415 502388 83749 586137 9508552

DATA SOURCE www.mcbmobile.com.pk www.home.mcb.com.pk MCB Branch Manual

72

6.3 RATIO ANALYSIS

Ratio means one number expressed in term of another a ratio is statistical yardstick by mean of which relationship between two or various figures can be compared or measured. Here we are going to explain the ratio analysis of MCB. CATARORIES OF FINANCIAL RATIO Financial ratios can be divided into the following six parts. Liquidity ratios Activity ratios Leverage ratios Profitability ratios Investor ratios Bank special ratios

A. Liquidity ratios
Current ratios Quick ratios Absolute Liquid ratio

B. Activity ratios
Inventory turnover ratio Average collection period Average payment period Total assets turnover ratio

73

C. Leverage ratios

Debt ratio Debt to Equity ratio External-Internal Equity ratio

D. Profitability ratio
Return on total assets Return on-equity Return on investment Return on fixed assets Average profit per branch Net profit Margin Interest income to total income Interest expense to total expense Return on advances

E. Investor Ratios
Earning per share P/E ratio Dividend per share Dividend yield ratio

F. Bank special Ratios

Earning assets to total assets

74

 Return on earning assets Net margin to earning assets Loan loss coverage ratio Equity to total assets Deposit time equity Loan to deposit ratio

6.3.1 LEVERAGE/SOLVENCY ANALYSIS

Solvency analysis of a Bank indicates the amount of the other peoples money being used to generate profit. In general, these analyses are more concerned with long term debts, because these commit the firm to a stream of payments over the long run. Solvency analysis includes: Debt ratio Debt to Equity ratio External-Internal Equity ratio

DEBT RATIO/ SOLVENCY RATIO

Total debt

Total Assets
Year Total Debt Total Asset Ratio 2009 (000) 439483714 509223727 0.86 2008 (000) 385179850 443615904 0.87 2007 (000) 355365842 410485517 0.87 2006 (000) 301263929 342108243 .88 2005 (000) 275046484 298780780 .92

75

Interpretation
Debt ratio indicate the comfort level of creditors. Comparatively less ratio indicate that creditor is more comfortable regarding debt security. In 2009 the creditors are most comfortable becausedebt ratio is lower comparatively than that of ratio of other financial years.

DEBT TO EQUITY RATIO

Total Debt Equity Year Total Debts Equity Ratio 2009 (000) 439483714 69740013 6.30 2008 (000) 385179850 58436054 6.59 2007 (000) 355365842 55119675 6.45 2006 (000) 301263929 40844314 7.38 2005 (000) 275046484 23734296 11.59

Interpretation
The raio is a measure of long term solvency of the bank. As debt rises in relation to share holder equity the margin of protection to creditors group goes down. Increase on debt makes the entity more valnerable to decline in business and difficult to meet obligations. Starting 2005 the ratio is getting comfortable there is not any fixed standard for this but generally 50:50 ratio is considered good ratio indicates the company is more financial by shareholders capital.

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EXTERNAL INTERNAL EQUITY RATIO

External Equity Internal Equity

Year External Equity Internal Equity Ratio

2009 (000) 439483714 69740013 6.30

2008 (000) 385179850 58436054 6.59

2007 (000) 355365842 55119675 6.45

2006 (000) 301263929 40844314 7.38

2005 (000) 275046484 23734296 11.59

Interpretation
It is the ratio of external funds comparing with internal resources of the company. The contribution of equity in total assets is increasing, while the debt contribution is decreasing which is better for business. Equity ratio is increased which shows the better condition of the bank. Solvency Ratio is in good condition. So we can say that overall Solvency condition of the MCB is better with the comparison to the previous year.

6.3.2 PROFITABILITY ANALYSIS

Profitability analysis of a Bank indicates the overall efficiently of the management. Without profit a company can not attract the outside capital. Profitability analysis includes: Return on total assets Return on-equity Return on investment

77

Return on fixed assets Average profit per branch Net profit Margin Interest income to total income Interest expense to total expense Return on advances

RETURN ON ASSETS
Net Profit after Tax Total Assets

100

Year Net Profit after tax Total Assets Return

2009 (000) 15495297 509223727 3.04%

2008 (000) 15374600 443615904 3.5%

2007 (000) 15265562 410485517 3.7%

2006 (000) 12142398 342108243 3.5%

2005 (000) 8922415 298780780 3.0%

Interpretation
No norms can be set for this ratio. The entity should at least attain last years return percentage. In 2008 and 2009 the last years profit percentage has not been attained as comparated to previous years so it is not a good sign. Bank should make efforts increase this ratio in coming years.

78

RETURN ON EQUITY
Net Profit after Tax Equity

100

Year Net Profit after Tax Equity Return

2009 (000) 15495297 69740013 22%

2008 (000) 15374600 58436054 26%

2007 (000) 15265562 55119675 28%

2006 (000) 12142398 40844314 30%

2005 (000) 8922415 23734296 38%

Interpretation
This ratio indicates profitability measure in relation to shareholder investment. Comparing with 2005 the ratio is decreasing which is also not good for the bank. Necessary precautions should be taken in order to control it and analysis should be made about reason why is it decreasing.

RETURN ON INVESTMENT
Net Profit after Tax Investment

100

Year Net Profit after Tax Investment Return

2009 (000) 15495297 167134465 9.28%

2008 (000) 15374600 96631874 15.9%

2007 (000) 15265562 113089261 13.50%

2006 (000) 12142398 63486316 19.12%

2005 (000) 8922415 69481487 12.84%

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Interpretation
Higher percentage indicate better ratio. It indicates the ratio of net profit to investment. There is fluctuation in ratio since 2005 but in 2008 return on equity has best ratio. But if we compare ratio of 2009 with that of 2006 there is maximum deviation. So, bank should also look it improve this ratio in coming years.

RETURN ON FIXED ASSETS

Net Profit after Tax Fixed Assets

100

Year Net Profit after Tax Fixed Assets Return

2009 (000) 15495297 18014896 86%

2008 (000) 15374600 17263733 89%

2007 (000) 15265562 16024123 95%

2006 (000) 12142398 9054156 134%

2005 (000) 8922415 8182454 109%

Interpretation
It indicate how well banks fixed asset are being used and their return comparing assets employed. The Bank is using its assets very efficiently. But in 2009 this ratio is minimum comparing with last few years. So bank should make efforts in order to use its fixed asset efficiently in next year.

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AVERAGE PROFIT PER BRANCH

Net Profit after Tax No. of branches Year Net Profit after Tax No of branches Average Profit 2009 1549529700 0 1081 14334224 2008 15374600000 1060 14504339 2007 15265562000 1026 14878715 2006 12142398000 994 12215692 2005 8922415000 952 9372284

Interpretation
This ratio is used to campare branch performance by division. The more the average profit the better divisions performance. The Branchs profit 2007 has the best average profit.

NET PROFIT MARGIN

Net Profit after Tax Interest Income

100

81

Year Net Profit after Tax Interest income Return

2009 (000) 15495297 51616007 30.02%

2008 (000) 15374600 40043824 38.39%

2007 (000) 15265562 31786595 48.03%

2006 (000) 12142398 25778061 47.10%

2005 (000) 8922415 17756232 50.25%

Interpretation
Percentage of net profit to interest income shows that the most major source of income of Bank is income from interest. But the ratio is good in all the years provided that interest is collected and loan are returned in full of maturity.

INTEREST INCOME TO TOTAL INCOME

Interest Income Total Income

100

Year Interest Income Total income

2009 (000) 51616007 57258892

2008 (000) 40043824 45835264

2007 (000) 31786595 37797886

2006 (000) 25778061 30769478

2005 (000) 17756232 23169303

82

Return

90.14%

87.36%

84.10%

83.79%

76.64%

Interpretation
Major source of income of the bank is income from interest. So, this ratio indicates the percentage of interest income in total income. If we analyze this ratio for five years we can easily interpret that this ratio is increasing in coming years. So, it is good sign for bank which shows those banks is offering good schemes to creditors and facilitate them to avail loan.

INTEREST EXPENSE TO TOTAL EXPENSE

Interest Expense Total Expense

100

Year Interest Expense Total Expense Return

2009 (000) 15841463 34103947 46.45%

2008 (000) 11560740 23967698 48.23%

2007 (000) 7865533 16489851 47.70%

2006 (000) 4525359 12268808 36.88%

2005 (000) 2781468 9347059 29.76%

Interpretation

83

This ratio should be minimum for increasing profitability of any bank. If we see comparison of this ratio for five years we can easily view that this ratio is increasing with every year which is not good for the bank. It shows worst condition of the bank in 2009.

RETURN ON ADVANCES
Interest Income Total Loans

100

Year Interest income Total Advances/Loans Return

2009 (000) 51616007 253249407 20.38%

2008 (000) 40043824 262135470 15.28%

2007 (000) 31786595 218960598 14.52%

2006 (000) 25778061 198239155 13%

2005 (000) 17756232 180322753 9.85%

Interpretation
This ratio indicate that bank has earned how much interest on loans. This is also a major source of income for the bank. In analysis of this ratio since 2005 we see that this ratio is increasing gradually which is a good sign for the bank stability.

6.3.3 INVESTOR ANALYSIS Investor analysis or market analysis are related to firm market valve, as measure by its current share price to certain accounting values. Investor analysis includes:
Earning per share P/E ratio Dividend per share

84

Dividend yield ratio Dividend payout ratio Break up value/Book value per share M/B ratio

EARNING PER SHARE

Net Profit after Tax No. of Shares

Year Net Profit after Tax No of shares Earning

2009 1549529700 0 691104500 22.42

2008 15374600000 628276800 24.47

2007 15265562000 628276800 24.29

2006 12142398000 546327600 22.23

2005 8922415000 426532700 21

Interpretation
This ratio is the percentage of profit on share after tax. It is calculated on ordinary shares. Comparison since 2005 shows that earning per shares is increased and is maximum in 2008 which shows good market value of shares of the bank. Market value of the bank depends upon this ratio. So, market value will increase on increase of this ratio.

P/E RATIO
MP Per Share EPS

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Market price per share is Rs.176.70 on 31 MAY 2010

Year MP Per Share EPS Ratio 2009 176.70 22.42 7.88 2008 176.70 24.47 7.22 2007 176.70 24.29 7.27 2006 176.70 22.23 7.95 2005 176.70 21 8.41

Interpretation
This ratio is the comparison of Market price of share with earning per share. Investor decide about purchase of shares on looking into this ratio. If this ratio is increasing investor will buy the shares. PE ratio of the bank is steady throughout. There is not any sort of alarming fluctuation for few years.

DIVIDEND PER SHARE

Total Dividend No, of Shares

Year Total Dividend No of Shares DPS

2009 6754019000 691104500 9.77

2008 8795877000 628276800 14.00

2007 5531592000 628276800 8.80

2006 3566546000 546327600 6.53

2005 1288871000 426532700 3.02

Interpretation

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This ratio is shows that how much an investor earning is on single share. 2008 is best year except 2005 otherwise DPS is good throughout.

DIVIDEND YIELD RATIO

DPS MV Per Share

Year DPS MV Share Ratio Per

2009 (000) 9.77 176.70 .055

2008 (000) 14.00 176.70 .080

2007 (000) 8.80 176.70 .050

2006 (000) 6.53 176.70 .037

2005 (000) 3.02 176.70 .017

Interpretation
This ratio is the comparison of dividend per share to Market value per share. It is return on investment in form of dividend based on marked price of share. In 2008 there is best yield as compare to other years.

6.3.4 BANK SPECIAL ANALYSIS

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Bank ratio analysis is little bit different from other organizations and if we want to see the real picture of a bank we have to focus on given special ratios. Earning assets to total assets Return on earning assets Net margin to earning assets Loan loss coverage ratio Equity to total assets Deposit time equity Loan to deposit ratio

EARNING ASSETS TO TOTAL ASSETS

Earning Assets Total Assets Year Earning Assets Total Assets Ratio 2009 (000) 429393 509223 .84 2008 (000) 366910 443615 .83 2007 (000) 336909 410485 .82 2006 (000) 289384 342108 .85 2005 (000) 261272 298780 .87

Interpretation

The efficiency of the banking firm is measured by its ability to utilize its assets in a manner that they could be profitable for the firm. Bank earning assets are increasing as compare to last year but it is just a little bit increase. Advances of bank are increasing but investment as compare to previous year is decreased. Lending to financial institutions is also not very well. Balance with other banks is also not desirable but overall earning assets showing satisfactory position in 2009.

RETURN ON EARNING ASSETS

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NP before Tax Earning Assets Year NP before tax Earning Assets Return 2009 (000) 23154 429393 5.39% 2008 (000) 21867 366910 5.96% 2007 (000) 21308 336909 6.32%

100

2006 (000) 18500 289384 5.49%

2005 (000) 13018 261272 4.98%

Interpretation
Return on earning assets is increased as compare to 2005 because there is increased in net profit in 2009 as compare to 2005. The increasing trend in this ratio is beneficial for business and investors because this ratio shows real profitability position of business.

NET MARGIN TO EARNING ASSETS

Net Margin Earning Assets

100

Year NET margin Earning Assets Ratio

2009 (000) 35774 429393 8.33%

2008 (000) 28483 366910 7.76%

2007 (000) 23921 336909 7.10%

2006 (000) 21252 289384 7.34%

2005 (000) 14974 261272 5.73%

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Interpretation
Spread is difference between interest income and interest expense. This ratio shows the spread position of a bank. In this year bank net margin is increased due to increase in advances and interest income as compare to previous years. Interest expense is also increased but their increasing trend is lesser as compare to interest income so thats why spread position of bank is increased in this year.

LOAN LOSS COVERAGE RATIO

Pre tax Income Net Charges off + Provision for loan loss

Year Per tax income Provision for loan Loss Net Charges Off Ratio

2009 (000) 23154945 5796527 41576 4 times

2008 (000) 21867566 1335127 16.38 times

2007 (000) 21308035 2959583 199 7.20 times

2006 (000) 18500670 1014540 47000 17.42 times

2005 (000) 13018487 1242153 1184 11.47 times

Interpretation
This ratio shows how much money is there against Rs 1 loss. This ratio provides a protection to customers who are going to deposit their money in bank. Higher the ratio is beneficial for the bank and customers. In this year loan loss coverage ratio is increased due to decrease in bad debts

EQUITY TO TOTAL ASSETS

Equity Total Assets Year Total Equity Total Assets Ratio 2009 (000) 69740013 509223727 .14 2008 (000) 58436054 443615904 .13 2007 (000) 55119675 410485517 .13 2006 (000) 40844314 342108243 012 2005 (000) 23734296 298780780 0.08

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Interpretation
This ratio shows the position of equity in total assets of business. In all years this ratio is almost same. But the bank should increase its equity by increasing the wealth of shareholders.

DEPOSIT TIME EQUITY

Debt Equity

Year Total Debts Equity Ratio

2009 (000) 439483714 69740013 6.30

2008 (000) 385179850 58436054 6.59

2007 (000) 355365842 55119675 6.45

2006 (000) 301263929 40844314 7.38

2005 (000) 275046484 23734296 11.59

Interpretation
This ratio is also known as debt to equity ratio. This shows how much outsiders share in business total equity. Lesser ratio is better for a business and this year bank ratio is decreasing which showing better trend as compare to previous years.

LOAN TO DEPOSIT
Loan Deposit

100

91

Year Loan Deposit Ratio

2009 (000) 253249407 367604711 68.89%

2008 (000) 262135470 330181624 79.39%

2007 (000) 218960598 292098066 74.96

2006 (000) 198239155 257461838 76.99%

2005 (000) 180322753 229341890 78.62%

Interpretation
Loans or advances are the major assets of a bank while deposits are major liabilities of a bank. Higher ratio shows the better solvency of bank. This ratio is decreased instead of previous years because advances of the bank are decreased as previous years and increased this years. deposits are

6.4 HORIZONTAL ANALYSIS OF FIVE YEARS BALANCE SHEET BASE YEAR 2005
2009 Rs M ASSETS Cash and balances with treasury banks Balances with other banks Lending to financial institutions 38775 6010 3000 64% 309% -70% 39631 4043 4100 67% 275% -58% 39684 3808 1051 68% 159% 847% 32466 6577 21082 37% 348% 111% 23666 1469 9999 100% 100% 100% 2008 Rs M 2007 Rs M 2006 Rs M 2005 Rs M

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Investment-net Advances-net Operating fised assets Deffered tax assets-net Other assets-net

167134 253249 18015 23040 509224

141% 40% 120% 0% 322% 70%

96632 262135 17264 19810 443616

39% 45% 111% 0% 262% 48%

113089 218961 16024 17869 410486

63% 21% 196% 0% 127% 37%

63486 198239 9054 172 11031 342108

-9% 10% 11% -10% 102% 15%

69481 180323 8182 192 5464 298777

100% 100% 100% 100% 100% 100%

LIABILITIES Bills payable Borrowing Deposits and other accounts Sub-ordinated loan Deffered tax liabilitynet Other liability 3198 15818 439484 NET ASSET Share capital Reserves Unappropriated Surplus on revaluation of assets-net of tax 69740 6911 38386 15779 8664 69740 8201 44662 367605 0% 84% 60% 199% 63% 186% 7378% 60% 2883% -4% 63% 60% 437 21346 385180 58436 6283 36769 9193 6191 58436 10551 22664 330182 0% 148% 40% 151% 47% 174% 4257 % 14% 2399 % 23% -18% 44% 10479 39407 292098 479 1180 11722 355366 55120 6283 34001 5131 9708 55120 23% 44% 27% 0 0% 36% 29% 136% 47% 154% 2331 % 79% 2258 % 7090 23943 257462 1597 11171 301264 40844 5463 24662 5531 5188 40844 -17% -13% 12% 0 30% 9% 75% 28% 84% 2526% -4% 75% 8537 27378 229345 1598 8612 275469 23308 4265 13408 211 5424 23308 100% 100% 100% 1 0% 100% 100% 100% 100% 100% 100% 100% 100%

COMMENTS ON HORIZONTAL ANALYSIS OF FIVE YEARS BALANCE SHEET: TOTAL ASSETS: Total assets of MCB Bank Limited have increased from Year 2005 to year 2009.

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As compared to 2005: In Year 2006 there is an increase of 15% in total assets of the bank. This increase is due to increase in both local and foreign currency cash and balances with the treasury banks in hand. This increase is 37%. The other reason of this increase in total assets is due to increase in balances with other banks in the form of current accounts and deposit accounts which increased by 348%. Advances also increased by 10% in the form of loans, cash credits and running finances. Other assets are also increase by 102%. In Year 2007 total assets increased by 37% as compare to 2005 and 19% increase as compare to 2006. This increase is because of: 68% increase in cash and balances with other banks in the form of cash and balances with SBP. Advances increased by 21% as compare to 2005 in 2007. Here advances portfolio is 10% higher than 2006. Increase in advances is due to increase in loans, cash credits and running finances given in Pakistan and outside Pakistan. Investment increased by 63% in 2007 as compare to 2005 due to increase in market treasury bills and banks first time investment in Government of Pakistan Islamic Bonds. Fixed assets of the bank also increased by 196% in 2007 as compare to 2005. This is because of major increase in intangible assets, property and equipment. Other assets also increased by 127% in 2007. This percentage is 61% higher than 2006. In Year 2008 total assets have increased by 48% as compare to year 2005. This shows more increase of 30% and 8% in total assets in 2006 and 2007 respectively. This increase in total assets is because of: Cash and balances with other banks increased by 67% .Advance increased by 49%. Fixed assets increased by 111% and other assets increased by 262%. This percentage of other assets is 10% higher than 2007. In Year 2009 total assets have increased by 70% as compare to 2005. In 2009 this increase in total assets are 49%, 24% and 14% more than 2006, 2007, and 2008 respectively. This increase is due to following reasons: Cash and balances with other banks have increased by 64%. This increase is due to increase in local and foreign 94

currency (in hand) cash and balances with other banks, local currency foreign accounts and increase in foreign currency accounts held with National Bank of Pakistan (NBP). Investment increased by 141% which is 73% higher than 2008. This is due to investment in Pakistan Investment Bonds, Government of Pakistan Islamic bonds, Market Treasury Bills, and Government of Pakistan-US Dollar / Euro bonds. Advances increased 40%. Fixed assets also increased 120%. Major increase is due to in property and equipment material. Other assets increased 322%.

TOTAL LIABILITIES: As compare to 2005: In Year 2006 total liabilities have increased in 2006 by 75% as compared to 2005. This increase is due to: 30% increase in other liabilities. 12% increase in deposits and other accounts. This increase is due to increase in saving, fixed deposits, and major increase in current accounts-non remunerative. In Year 2007 total liabilities have increased 29% in this year comparing it with 2005. In 2007 this increase is 18% more than 2006. This increase is due to: 23% increase in bills payable. This is due to increase in bills payable in Pakistan. 44% increase in borrowings. These borrowingsare greater than 2006 and carry a difference of 65% (increase). This is because of secured borrowings from the SBP under export refinance scheme and long term financing under export oriented projects have increased. While call borrowings and trading liabilities (unsecured) also increased significantly. 27% increase in deposits and other accounts. Major increase is seen in fixed; current accounts-remunerative and non-remunerative also increase in current accounts remunerative of financial institutions. 36% increase in other liabilities. In Year 2008 total liabilities have increased by 40% as compared to 2005. This increase is 28% and 8% more than in 2006 and 2007 respectively. This increase is due to: 23% increase in bill payable.This increase is due to increase in repurchase 95

agreement borrowings and call borrowings,44% increase in deposits and other accounts due to major increase in fixed, saving, current accounts remunerative and non-remunerative. 148% increase in other liabilities. In Year 2009 total liabilities have increased by 60% as compared to 2005. This increase is 46%, 24% and 14% greater than in 2006, 2007 and 2008 respectively. This increase is due to: Borrowings increased by 63% which is 97% more than in 2008. 60% increase in deposits and other accounts. This increase is due to significant increase in fixed, saving, and current accounts remunerative. In 2009 there is an increase of 100% in deferred tax liabilities-net. Other liabilities also increased by 84% due to major increase in branch adjustment account.

TOTAL SHARE CAPITAL: (OWNERS EQUITY) As compare to 2005: In Year 2006 share capital is increased by 28% as compared to 2005 due to increase in: 84% in reserves and 2526 increases in unappropriated profit. In Year 2007 share capital is increased by 47% as compared to 2005. This increase is 15% more than in 2006. This increase is due to increase in: 154% in reserves and 2331% increase in unappropriated profit. In Year 2008 share capital is increased by 47% as compared to 2005. 174% increase in reserves. Major change occurred in unappropriated profit which is increased by 4257%.

96

In Year 2009 share capital is increased by 63% as compared to 2005. This increase is 10% more than in 2008. 186% increase in reserves. Major increased occurred of 7378% in unappropriated profit. Also an increase of 60% of surplus on revaluation of assets-net, increase in fixed assets and securities.

6.5 HORIZONTAL ANALYSIS OF FIVE YEARS PROFIT AND LOSS ACCOUNT RUPEES IN MILLION
2009 Rs M Mark up/ruturn/interest earned mark up/return/interest expensed net mark income up/interest 35775 -7465 139% 596% 28483 -4042 90% 277% 23921 -3061 60% 186% 21253 -1194 42% 11% 14975 -1072 100% 100% 51616 -15841 % 191% 470% 2008 Rs M 40044 -11561 % 126% 316% 2007 Rs M 31787 -7866 % 79% 182% 2006 Rs M 25778 -4525 % 45% 63% 2005 Rs M 17758 -2781 % 100% 100%

provision and write off

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Net mark up/interest income after provision Non-markup/interest income Non mark expenses up/interest

28309 5643 -10797 23155 -7660 15495

104% 2% 63% 78% 87% 74% 159%

24441 5791 -8365 21868 -6493 15375 20526

76% 100% 26% 68% 59% 72% 115%

20860 6448 -6000 21308 -6042 15266 20808

50% 12% -10% 64% 48% 71% 118%

20059 4991 -6549 18501 -6358 12142 17164

44% -13% -1% 42% 55% 36% 80%

13903 5754 -6638 13018 -4096 8922 9508

100% 100% 100% 100% 100% 100% 100%

Profit before taxation Taxation Profit after taxation Profit available appropriation for

24710

COMMENTS ON HORIZONTAL ANALYSIS OF FIVE YEARS PROFIT & LOSS ACCOUNT: As compared to 2005: In Year 2006 profit increased by 81% as compared to 2005. This increase is due to: Markup / interest earned are increased by 45% as compare to 2005. This increase is due to increase in: on loans and advances interest earned, on deposits with financial institutions and on securities purchase under resale agreements. Net markup / interest income is increased by 42% while markup interest expense is increased by 63% due to increase in on deposits interest expense. Net markup / interest income after provisions is increased by 44% as compared to 2005. Profit before taxation is increased by 42%. Taxes increase by 55%. Profit after tax has increased by

98

36%.Profit available for appropriation is increased by 81% due to unappropriate profit and fixed asset from surplus increase. In Year 2007 profit increased by 119% as comparing it with 2005. This increase in profit is 21% greater than in 2006. This increase is due to: Markup / return / interest earned are increased by 79%. This increase is 23% greater than in 2006. This significant increase in 2007 is due to increase in: on loans and advances from customers and financial institutions and on investment in available for sale securities and ssociates, on deposits with financial institutions, on discount income and on securities urchased under resale agreements. Net markup / interest income is increased by 60% which is 13% more than in 2006. While interest expense has increased by 182% due to increase in: on deposits interest expense, on securities sold on repurchase agreement, on long term and other short tem borrowings , on securities sold under repurchase agreements.. Net markup interest income is after provisions are increased by 50% as compared to 2005. Non markup/interest income has increased in 2007 by 12% which is 29% more than in 2006. This increase is due to: increase in fee, commission, brokerage income, increase in dividend income, increase in income from dealing in foreign currencies, increase in unrealized loss on revaluation of investment and other income is increased. Profit before taxation increased by 64%. This increase is 15% more than in 2006. Taxes increased by 48%. Profit after taxation is increased by 71%. In Year 2008 profit increased by 116% as comparing it with 2005. This increase is due to: Markup / interest earned are increased 126% as compare to 2005. This increase is due to: increase in interest earned on loans and advances from customers and financialinstitutions, and interest earned on investment. Net markup / interest income is increased by 90% as compared to 2005 which is 19% higher than in 2007. While interest expense is increased by 316% due to major increase in interest expense on deposits, on securities sold under repurchase agreements and on long term borrowings. Net markup interest income after provision increased by 76% in 2008 as comparing it with 2005. Non mark up/interest income has increased by

99

100% as compared to 2005 .This increase is due to increase in fee, commission, brokerage income,increase in dividend income, increase in income from dealing in foreign currencies,increase in other income and increase in unrealized loss on revaluation of investments. Profit before tax increased by 68% which is 3% more than in 2007. Taxes ratio is increased by 59% in 2007. Profit after tax is increased by 72 which is 27% higher than in 2006. Unappropriated profit doubled in this year. In Year 2009 profit increased by 160% comparing it with 2005. This increase in profit is 20%, 19% and 44% more than in 2008, 2007 and 2006 respectively. This increase is due to: Markup / return / interest earned are increased by 191% as compare to 2005. This increase is due to: increase in interest earned on loans and advances from customers and financial institutions, discount income, deposit with financial institutions. Net markup /interest income is increased by 139% while interest expense increased by 470% due to increase in expense on deposit, on long term borrowings. Net markup interest income increased by 26% as compare to 2008. Non mark up/interest income has increased by 2%. This increase is due to major increase in: fee, commission and brokerage income, Dividend income, increase in other income, increase in foreign currency income and increase in evaluation of investment. Profit before tax increased by 78% and taxes ratio is increased by 87 %.

6.6 VERTICAL ANALYSIS OF FIVE YEARS BALANCE SHEET Rupees in Million

2009 Rs M ASSETS Cash and balances with treasury banks Balances with other banks 2008 Rs M 2007 Rs M 2006 Rs M 2005 Rs M

38775 6010

8% 1%

39631 4043

9% 1%

39684 3808

10% 1%

32466 6577

9% 2%

23666 1469

8% 0%

100

Lending to financial institutions Investment-net Advances-net Operating fixed assets Deffered tax assets-net Other assets-net

3000 167134 253249 18015 23040 509224

1% 33% 50% 4% 5% 100%

4100 96632 262135 17264 19810 443616

1% 22% 59% 4% 4% 100%

1051 113089 218961 16024 17869 410486

0% 28% 53% 4% 4% 100%

21082 63486 198239 9054 172 11031 342108

6% 19% 58% 3% 0% 3% 100%

9999 69481 180323 8182 192 5464 298777

3% 23% 60% 3% 0% 2% 100%

LIABILITIES Bills payable Borrowing Deposits and other accounts Sub-ordinated loan Deffered tax liability-net Other liability 3197 15819 439484 NET ASSET 69740 8201 44662 367605 2% 9% 72% 1% 3% 86% 14% 437 21346 385180 58436 10551 22664 330182 2% 5% 74% 0% 5% 87% 13% 10479 39407 292098 479 1180 11722 355366 55120 3% 10% 71% 0% 0% 3% 87% 13% 7090 23943 257462 1597 11171 301264 40844 2% 7% 75% 0 3% 88% 12% 8537 27378 229345 1598 8612 275469 23308 3% 9% 77% 1 3% 92% 8%

Share capital Reserves Unappropriated Surplus on revaluation of assets-net of tax

6911 38386 15779

1% 8% 3%

6283 36769 9193

1% 8% 2%

6283 34001 5131

2% 8% 1%

5463 24662 5531

2% 7% 2%

4265 13408 211

1% 4% 0%

8664 69740

2% 14%

6191 58436

1% 13%

9708 55120

2% 13%

5188 40844

2% 12%

5424 23308

2% 8%

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COMMENTS ON VERTICAL ANALYSIS OF FIVE YEARS BALANCE SHEET: Comparing figure from 2005 to 2009. TOTAL ASSETS: Here Total Assets includes: Current Assets + Fixed Assets + Other Assets. Where Current Assets include: All assets excluding Fixed Assets and Other Assets. Current assets of the bank have increasing trend from 2005 to 2006. This increase is due to increase in: cash and balances with treasury banks, balances with other banks, advances. In 2005 and 2006 bank need the current assets more to fund their day-today operations. This increase in current assets is due to increase in: local and foreign currency cash and balances with the treasury banks, balances with other banks in current and deposit accounts form, loans, cash credits and running finances. Deposits with State Bank of Pakistan are maintained to comply with the statutory requirements issued from time to time. Deposits with other central banks are maintained to meet the minimum cash reserves and capital requirements pertaining to the foreign branches of the Bank. Although these current assets are in good position in 2007, 2008, and in 2009 but there is slight or minor decrease. This slight decrease is due to decrease in: Balances with other banks, lending to financial institutions, investments. If current assets fall short more than this in future, then the bank will have to scramble for other sources of short-term funding, either by taking debt. But overall current assets of the bank are in healthy and satisfactory position. Fixed assets increased in 2009 as compare to 2005. Increase is due to increase in capital work-in-progress, property and equipment. Fixed assets are the long-term base of the banks operation strategy, represented by all the equipment, facilities, IT infrastructure and long-term contracts the bank has invested in to conduct business. These assets are the revenue generators, which together form the base from which the company functions from week to week. So these are also well handled by the bank. 102

Other assets have the increasing trend since 2005. This increase in other assets is due to increase in: Income / mark-up accrued in local currency and income / mark-up accrued in foreign currency.

TOTAL LIABILITIES: Total liabilities of MCB have the decreasing trend over all. Total liabilities have decreased from 2005 to 2009. .Decrease in liabilities is due to: Borrowings, subordinated loans, other liabilities and deposits and other accounts. This decrease is due to decrease in: Borrowings from SBP, term finance certificates. While these borrowings have been made from SBP for providing financing facilities to customers for import of machinery, plant, equipment and accessories thereof (not manufactured locally) by export oriented units. Money deposited with a bank becomes a liability of the bank, because the bank has an obligation to pay the depositor the money deposited; usually on demand. (The money deposited is an asset for the depositor; but this asset will not be recorded by the bank because it is not the bank's asset. This shows that banks need more debt from other financial institutions.Liabilities decrease also shows that banks dont need more funds in these years to complete its higher operational activities.

OWNERS EQUITY OR SHARE CAPITAL

Share capital or issued capital or capital stock refers to the portion of a company's equity that has been obtained (or will be obtained) by trading stock to a shareholder for cash or an equivalent item of capital value. Share capital or owners equity has increased from 2005 to 2009. This increase is due to increase in reserves and unappropriated profit. In 2007 Owners equity has increased by 14% as compare to 2003 which is 8%.

103

6.7 VERTICAL ANALYSIS OF FIVE YEARS PROFIT AND LOSS ACCOUNT RUPEES IN MILLION

104

2009 Rs M Mark up/ruturn/interest earned mark up/return/interest expensed net mark up/interest income provision and write off Net mark up/interest income after provision Non-markup/interest income Non mark up/interest expenses Profit before taxation Taxation Profit after taxation Profit available for appropriation 51616 -15841 35775 -7465 28309 5643 -10797 23155 -7660 15495 24710

% 90% -28% 62% -13% 49% 10% -19% 40% -13% 27% 43%

2008 Rs M 40044 -11561 28483 -4042 24441 5791 -8365 21868 -6493 15375 20526

% 87% -25% 62% -9% 53% 13% -18% 48% -14% 34% 45%

2007 Rs M 31787 -7866 23921 -3061 20860 6448 -6000 21308 -6042 15266 20808

% 84% -21% 63% -8% 55% 17% -16% 56% -16% 40% 54%

2006 Rs M 25778 -4525 21253 -1194 20059 4991 -6549 18501 -6358 12142 17164

% 84% -15% 69% -4% 65% 16% -21% 60% -21% 39% 56%

2005 Rs M 17758 -2781 14975 -1072 13903 5754 -6638 13018 -4096 8922 9508

% 76% -12% 64% -5% 59% 24% -28% 55% -17% 38% 40%

COMMENTS ON VERTICAL ANALYSIS OF FIVE YEARS PROFIT & LOSS ACCOUNTS:

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Comparing figures from 2005 to 2009. PROFIT AVAILABLE FOR APPROPRIATION: Profit available for appropriation have the increasing trend overall from 2005 to 2009. In 2003 profit is 40% only which gradually increase by 56%, 54%, 45% and 43% in 2006, 2007, 2008, and 2009 respectively. This increase in profit is due to following reasons: Markup / return / interest expensed have increased from 2005 to 2009. Net markup / interest income have increased but this increase is less than thats in 2005 and 2006. In 2009 interest income is 62% while this percentage is 69% in 2006 and 64% in 2005. Net markup / return / interest income after provisions have also increased but this increased is slow as compare to 2005 and 2006.Non markup/Interest income has also increased from 2005 but this ratio of increasing trend is slow in 2009, 2008, 2007 and 2006. This increase is due to major increase in fee, commission and brokerage income, dividend income and other income.Non markup/Interest expense have increased from 2005 to 2009. This increase in administrative expenses due to increase in personnel cost, premises cost and other operating cost. Profit before taxation is 40% while this percentage is 55% in 2005. While profit after tax has a mix up trend of increase and decrease. In 2006 profit after tax has increased 39% while this percentage is 27% in 2009. Unappropriated profit brought forward has the increasing trend. This all causes an increasing trend in the profit available for appropriation. These figures of profit available for appropriation tell that bank has gaining a significant growth in recent years after its privatization and better management skills.

6.8 ORGANIZATIONAL ANALYSIS : (COMPARISON WITH OTHER BANKS)

106

MCB BANK LTD COMPARISON WITH UBL & HBL: Particulars UBL MCB HBL

-----------------------------(Rupees in 000)-----------------------------Deposits Advances Profit Branches* Employees* *Figures in Numbers. 503,831,672 362,079,596 9,487,952 1138 13982 367,604,711 253,249,407 15,495,297 1081 13,192 653,452,460 432,283,588 12,298,643 1494 13211

Data Source
Internet and Financial Statements/Annual Accounts of the Banks If we compare MCB with UBL and HBL, we observe that HBL is a big banking group as compare to UBL and MCB. Deposit wise HBL is in front of both UBL and MCB. Although UBL is in good position as compare to MCB in deposit situation. It shows customers trust on both banks. HBL again ahead in case of advances portfolio as compare to UBL and MCB. Here health portfolio of advances places the UBL in second position which is a good indicator. But profit wise MCB is in front of both HBL and UBL in year 2009. Branches of HBL are greater than UBL and MCB. There is a less difference between UBL and MCB in number of branches. UBL has greater number of employees as compared to MCB and HBL. These figures show that MCB IS in much better position than UBL and HBL . The bank is increasing resource mobilization through regular deposit campaigns and accelerating the process of recovery of outstanding advances and non-performing assets. The Bank is making every effort to meet the up-coming challenges through strategic planning and making the best use of the resources at its command. These financial figures and improving condition of the bank shows that MCB is among the leading commercial banks of Pakistan.

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6.9 FUTURE PROSPECTS OF THE ORGANIZATION: (MCB)

MCB is focusing on bringing the next level of consumer banking in Pakistan, emphasizing on its You First vision. MCB aims to offer products that will change the industry norms by providing innovations, options and flexibility unmatched so far by any other bank due to the investment made in the state-of-the-art systems at MCB. MCB plans to expand the market by its vast distribution network. MCBs products & services are being developed keeping in view the increased level of consumer awareness due to increased accessibility of information, and hence the demand for better products and services with options. Management believes that their business process reengineering initiative supported by their customized core banking technology platform will also help them to compete more effectively in the changing landscape of the Pakistani banking sector. Banks Credit Risk Environmental and Monitoring system which is in its final stages of implementation is expected to assist them in more effective post disbursement monitoring. They expect their efforts in this area to show positive results in the coming months. Macro economic and political instability, going forward, will continue to impact growth and profitability of the banking sector. Management believes that political reconciliation will result in renewed attention to economic management and hence improvement in the operating environment. Management is focusing on enhancement of network system in order to give uninterrupted services to customers. Management is also keen to increase the ATM network in future and plans have prepared for it.Management believes the bank is well positioned to take advantage of the next economic.

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7. SHORT - FALLS / WEAKNESSES OF THE ORGANIZATION:

Following are the weaknesses of the MCB Bank Limited; Asset quality was impacted by an increase in non performing loans in theconsumer and commercial business. Fixed asset turnover ratio was decreased in 2009. This shows the decrease in sales in 2009. Net profit after tax ratio decreased in 2009. Given the monetary tightening, the consumer portfolios throughout the industry

witnessed deterioration in 2009. During the Year 2009 weaknesses identified in the Internal Control System by the auditors. Although they are working according to their level of hard work. But I feel that there are some deficiencies in the staff of branch. Which play part of hurdle in the efficient management of affairs. This also becomes cause for poor impression of bank to the people. I have observe following deficiencies: Staff working in the bank are not properly trained they are not properly trained according to modern banking requirements. They are usually old age and working from longer period of time. They consider the modern banking to similar old banking. Which is not true. Because some one has said that there is a lot of banking in 21
st

century but there are no

banks. These staff is not properly motivated according to new techniques. Although MCB is one of the leading bank in Pakistan. But there are still following old methods and means. Which is not up to mark. In this branch there is not use of computer for main ting books of record. Manual system is following in the most of branches. Which takes more time and also not so reliable for future. Manual records are not available after some days. Which creates some problems.

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 Customer services are the basic work of banks .to provides services according to best of their level. No proper customer services department is available in the branches. Customers are not properly treated in the bank if they have some problems regarding financial matters they have to solve themselves. Flawed policies are using in selection and their training of staff. They are not properly trained according to requirements of modern n banking horizons. There should be proper check system on performance of staff. Every one want to transfer hi work to other person so that he can avoid from his side. If a someone is doing job evenly wrong there is no one to stop them. In branch there is no suitable facilities for work. They are not opportunity to use computer and internet .so in this way they feel problems regarding their work facilities as compare to foreign banks are too less. There is defective online system among branches. Payments are not properly transfer to other branches at time. According to its policy custemers can deposit from any banks branch but cannot withdraw at same time. Which is most necessary for improvement. MCB has largest network of ATMs through out the country but these are not up to mark. Most of time ATM machines are out of order not performing to desired level. Some times your account is debited but you not receive any cash. This creates a problem for people.

8. CONCLUSION

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MCB Bank Limited is one of the largest Commercial Bank in Pakistan. MCB has a growing presence in the international market through 6 branches in various foreign countries, with significant activity in Colombo, Kandy, Maradana, Pettah, Wellawatte and off shore bankin unit in Behrain. Paid-up capital of MCB was increased by way of bonus issue during FY09. Along with healthy reserves and retained earnings, MCBs total net worth, adjusted for final cash dividend, increased to Rs. 27.9b (FY08: Rs. 20.4b). Deposit base of the bank increased by approximately 16% to Rs. 335.1b (FY08: Rs. 289.3b) as at December 31, 2009, with significant increase coming through the fixed deposit schemes. Deposits further increase in 2009. As MCB has a growing international presence, almost 19% of the total deposit base is mobilized from the overseas branches and contributed almost 52% to the growth during FY09. Increasing markup rates on the banking book, resulted in a substantial widening of spreads (FY09: 5.4%; FY08: 4.5%) and drove interest based earnings to new highs. Profitability was also supported by increased fee and commission based income. Profitability is increased in 2009 (20.9b) by 23% as compared to 2009 (16.9). Net advances increased to Rs. 299.3b (FY09: Rs. 247.3b)during 2009. Both corporate and consumer lending have contributed to the growth achieved during FY09. The banks consumer portfolio is one of the largest in the sector at Rs. 44.5b (FY08: Rs. 28.3b), where the auto product has acquired a significant market share. Overseas operations have also contributed to this growth. While increase in overseas operations has a risk benefit in terms of increased geographical diversification, the bank has taken some fairly large exposures. Total asset size of MCB increased by approximately 25% to Rs. 530.3b as at December 31, 2009 from Rs. 423.3b at the end of the previous year. In future years, the bank is likely to sustain strong profitability indicators with the persistent growth in lending and continued investment in high margin consumer lending. This all shows a well and rapid growth of this world class bank.

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MCB Bank has improved a lot in recent years in term of system and services. Before 2007 branches were working in DOS based system named MIBBS (Multi Inter Banking Branch System). This system was restricted to one branch only which keep the customer not for bank but for that particular branch. But after 2007 bank introduced new advance and centralized system named SYMBOLS which is successfully deployed in almost all the branches of bank now. Customer is now not the customer of single branch. In fact, he is the customer of whole bank now. Thus by this advancement bank has improved a lot in term of customer services and other aspects too. All these innovation and improvements have also gave competitive advantage on its competitors.

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9 RECOMMENDATIONS
On the basis of financial analysis we see that the Banks strengths are more than its weaknesses but still there is room for a lot of improvement and innovation. Following are some of the suggestions and recommendations that I want to give on the basis of shortfalls / weaknesses found in the bank. The profitability in 2009 was impacted by a change in the prudential Regulations according to which the benefit of collateral was withdrawn while calculating the provisioning requirements against non - performing loans. This resulted in an incremental provisioning charge of Rs. 3.8 billion on MCB books in year 2009. Had this charge not been taken, the increase in profit before tax would have been 18% higher from the same period last year. So it must be improved. Asset quality was impacted by an increase in non performing loans (consumer and commercial business) which coupled with subjective classifications by the SBP resulted gross NPL to gross loans amount increased. In this regard SAM (Special Assets department) of MCB must take progressive steps with the collaboration of CAD department to low down the NPLs ratio by carrying effective management of credit risk. In 2009 decrease in fixed asset turnover ratio shows the decrease in sales of the bank. Bank must utilize its resources and fixed assets especially in proper manner to generate higher sales in future. Healthy portfolio of fixed assets must be maintained by the bank. Net profit after tax ratio decreased in 2009. In this regard bank must control its interest expenses and administrative expenses be, mainly due to continued investments in upgrading and expending MCB branch network domestically and overseas, higher personnel cost on account of the banks Early Retirement Scheme and ongoing costs in the consumer business. Although these steps are taken by the bank to upgrade its branches and operations but it cause decrease in the net profit after tax ratio in 2009 as comparing it with 2008 and respective years. So a better control is required on the banks expenses. Provisioning coverage of NPL Loans must be improved by both SAM and CAD departments. The management of risks and uncertainties associated with problem credits

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requires a different and more intense approach than normal management. The unit must staff with experienced officers who possess the specialized expertise required for managing problem credits. Consumer portfolios throughout the industry witnessed deterioration in 2009 because of monetary tightening conditions. So there must be close monitoring of portfolios and enforcing appropriate controls to manage delinquencies and mitigate the impact of structured fraud, which has been making subtle advances in the industry.

Management ensures the efficient and effective Internal Control System by risk

assessment, identifying control objectives, reviewing pertinent policies / procedures, establishing relevant control procedures and monitoring. All policies and procedures are monitored, reviewed and compared with existing requirements and necessary amendments are made accordingly. Steps must taken to avoid non -repetition of those in all possible manner. Management took steps to effectively monitor control environment of the bank, resulted in improvement in the overall working of the branches and departments. Earnings per share is generally considered to be the single most important variable in determining a share's price. An important aspect of EPS that's often ignored is the capital that is required to generate the earnings (net income) in the calculation. Two companies could generate the same EPS number, but one could do so with less equity (investment) - that company would be more efficient at using its capital to generate income and, all other things being equal would be a "better" company. Investors also need to be aware of earnings manipulation that will affect the quality of the earnings number. It is important not to rely on any one financial measure, but to use it in conjunction with statement analysis and other measures. EPS can be increased by increasing the revenue and decreasing the expenses of the bank. Cost also plays a major role in generating EPS. If management focus to have good cost control on EPS. The bank engages proper training for new and old staff in order to improve their performance. Seminars are conducted in which they can take active participation.

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 Staff is transfer from one department to other department for learning multi dimensional work; it is also suitable to transfer to other branches. All branches equipped with latest equipments like faxes, Internet and computers. Computerized soft wares are used in the operation to make it easier. New schemes are introduced to attract more customers from market. They are facilitating with reasonable services. Customers are facilitates for payment of bills& other instruments. A plan should be developed to employ new qualified staff for better management There should be performance review of staff. People are provided with best services The management should work free from any political pressure. There should be continues audit of all branches. Higher management should train manager of all branches in order to overcome the leg pulling among the employees. There should be direct interaction between staff and the branch manager in order to run branches more effectively. Human resource department should play vital role, to evaluate employees performance. So, that old employees can come to know their actual reward and satisfaction.

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10. REFERENCES
All of the references and sources from where the datagathered for this report are mentioned herewith for your kind concern.

ORGANIZATION: Annual Reports of MCB Bank Limited. MCB Credit Policy. Operational and Credit Manual of MCB http://www.mcb.com.pk. https://home.mcb.com.pk.

WEB PORTALS: http://www.sbp.com.pk. http://www.ibp.org. http://www.thebankers.com. http://www.pacra.com.pk. http://www.gulfeconomist.com.pk. http://www.privatisation.gov.pk. http://www.finance.gov.pk. BOOKS: Practice and Law of Banking in Pakistan by Dr. Asrar H. Siddiqui. Fundamentals of Financial Management by James C. Van Horne & John M. Wachowicz, JR.

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ORGANOGRAM OF THE

ORGANIZATION

Board of Directors

Chairman

President

Audit & RAR

Wholes ale Bankin g

Consum er Banking

Islamic Bankin g

Commer cial Banking

Treas ury & Forex

Special Assets Manage ment

Public Relatio ns

Risk Manage ment

Complia nce & Control

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Strateg ic Plannin g& Invest ment Bankin g

Fincia l Contr ol

Board of Directors

Chairman

President

Audit & RAR

Wholes ale Bankin g

Consum er Banking

Islamic Bankin g

Commer cial Banking

Treas ury & Forex

Special Assets Manage ment

Public Relatio ns

Risk Manage ment

Complia nce & Control

Strateg ic Plannin g& Invest ment Bankin g

Fincia l Contr ol

Informat ion Technolo gy

Project Manage ment

Human Resource Managerm ent

Operati ons

Business Develop ment and New Initiative s

BRANCH ORGANOGRAM

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BRANCH MANAGER

BRANCH OPERATIONS MANAGER

REMITTANCE OFFICER

FOREX OFFICFER

CASH OFFICER

CUSTOMER SERVICES OFFICER CREDIT OFFICER

PBA (Personal branch assistance)

BILLING OFFICER

ORGANOGRAM OF ACCOUNTS DEPARTMENT

PRESIDENT 119 BUSINESS BRANCH GROUP REGIONAL GENERAL OPERATIONS HEAD OPERATIONS MANAGER OPERATIONS MANAGER MANAGER

CURRENT SAVING INCHARGE

ACCOUNTS OFFICER

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PRACTICAL EXAMPLE OF ACCOUNTING INFORMATION GNERATED,RECORDED AND USED. ..

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