MCB Bank has grown significantly since being established in 1947 in Calcutta, India and later moving to Pakistan. It has over 900 branches and over 4 million customers. MCB has received several awards for being the best domestic bank. The operations department handles tasks like account opening, clearing checks, and processing remittances. While MCB has achieved much success and growth, opportunities remain to improve coordination, customer relationships, training, and technology.

2. MCB BANK LIMITED

3. Internship Presentation MCB Bank Ltd. Undertaken By AHSAN UD DIN G1F05MBAP0429 Supervised by: Mr. Suleman Anwar

4. History of MCB Incorporated in Calcutta, India under the Indian Companies Act, VII of 1913 on 9th July, 1947 Commenced its business from 17th August, 1948 From Calcutta, India Head Office was shifted to Dhaka, Bangladesh in August 1948 and from Dhaka to Karachi on 23rd August, 1956 Nationalized in 1974 Privatized on April 08, 1991

5. Vision & Mission Vision: Challenging and changing the way you bank. Mission: MCB Bank’s team of committed professionals is dedicated to maintaining long term customer relationships through outstanding service and convenience.

6. Corporate Information

7. Structure 938 Branches 16 General Managers 39 Regional Managers 2 Business Heads Commercial Banking Group (North & South) Consumer Banking Group Head of Retail Banking Group

8. ACHIEVEMENTS Euro money Awards Best Bank 2006 Best Bank 2005 Best bank 2004 Best Bank 2003 Best Bank 2001 Best Domestic Bank 2000 Asia Money Awards BEST Domestic commercial Bank 2004 & 2005

9. Our Strengths First international debit card. Acceptable over 5 million POS (Maestro) and over 660,000 ATMs (Cirrus) 900+ branches nationwide. Staff strength of over 9000. Over 4 million customer base. 870 automated branches. 540 online branches in 65 cities. Largest ATM network (280) of a single bank, over 35 cities.

10. Our Strengths One of the most technologically sound bank. Leader in RTC. Host of MNET Switch-14 member banks (410 ATMs) Largest issuer of plastic money-600,000 ATM/Smart Cards. MCB Towers, the tallest building of Pakistan. 24-hour dedicated Call Centre. More than 27,000 individual virtual banking users. More than 130 corporate virtual banking users.

11. Practical Work

12. Operations Department

13. Operations Department Reception Account Opening Clearing Remittances

14. Reception Fill the pay-in-slips for the deposit of cash Fill the pay-in-slips for the deposit of cheques Fill the debit card application forms To give any other information regarding MCB Bank

16. Lockers It is the facility provided by the banks for the safe custody of valuable things of the customers. Issuance of the Locker Application form MF-19 Specimen signature card Either / survivorship from MF-19E (only if locker is in joint account names) Payment of Rent Small Rs = 1000 P.A Medium = 1500 - Large = =2500 - Security deposit is Rs.1000/-(refundabal)

17. Account Opening

18. Types of Accounts Individual Account Joint account Proprietorship account Partnership account Companies account

19. Nature of Accounts CD Current BBA (basic banking account) PLS Saving Khushali Bachat Account 365 days GOLD Foreign currency Term Deposit MCB Smart Saving Account

20. Basic Requirements CNIC (Original + Photocopy) Account Opening Form (AOF) Specimen Signature Card Know Your Customer (KYC) Form Undertaking to Maintain Minimum Balance An Introduction (Existing A/c holder) The customer will sign the AOF. The AOF along with relevant documents will be obtained and forwarded to MO for his approval.

21. Account Opening Form Four pages of Account opening Form. (Along with the KYC Form).

22. SPECIMEN SIGNATURE CARD Form used for the name of the Account Holder and his/ her signature

23. Accounts Dormant Accounts Current account not operated for 6 month and saving account if not operated for one year become dormant accounts. Inoperative Accounts Current accounts if not operative for two years & saving for three years become inoperative. Unclaimed Accounts If current / saving accounts remain inoperative for three years the same should be transferred from inoperative to unclaimed accounts. If these accounts remain unclaimed for ten years then become the property of State Bank of Pakistan.

24. Clearing Department

25. Clearing Department "The transfer of funds from a branch of bank to the other branch of the same bank or the other bank on which the instrument is drawn, without involving cash through "State Bank's clearing house"

26. Instruments Cheques Demand Drafts Pay Orders Traveler’s Cheques

27. Types of Clearing Inward Clearing Outward Clearing Local Clearing Outstation Clearing Cheque Returned

28. Outward Clearing: When the cheque from Bank goes to another bank for clearing then it is called outward clearing. Outward clearing > Inward clearing (favorable) Inward clearing: When the cheque comes in Bank for clearing is called inward clearing. Inward clearing > Outward clearing (Against) Clearing

29. Items necessary on Clearing Instruments Crossing Stamp Clearing Stamp Date (which should be current) Endorsement Stamp on Backside Amount in Figures and Words should match Signature Verification

30. REQURED STAMPS

31. Outward clearing Process CLEARING Inward Outward Final Voucher Prepared Bundle Cover Separate Deposit Slips and Cheques Posting Stamping Scrutiny of Cheques and Deposit Slips Cheques Deposited Make Bundle of 50 Cheques per List Hand Over to NIFT Agent

32. Inward Clearing Process CLEARING Outward Inward Send to Account Department Scrutiny of Cheques and Stamps Cheques Withdrawals Cancellation Posting Returns Marked Hand Over to NIFT Agent Transfer Stamp Attach Return Memo Return Voucher Prepared

33. Cheque Return Memo (SF-16)

34. Remittance Remittance is the monitory transfer from one place to another place or from one country to another country to fulfill the requirements of the customers by the order of the customer. Remittance deals in these functions: Demand Draft Pay Order

35. Demand Draft A draft or bill that is payable on demand or upon presentation. Also called “ demand draft .” Parties Involves 1- Purchaser 2- Issuing or Drawing Branch 3- Drawee Branch 4- Payee/Beneficiary Procedure for Issuance of DD DD Application form Name of the payee should mentioned Signed by the purchaser Commission and charges 0.1% commission 75 postage FED

36. Pay Order Pay order is an instrument through which payment can be made from one bank to another bank within city. It is issues by and drawn upon and payable by the same branch of the bank It is neither transferable nor negotiable and as such it is payable to the payee named therein Parties to a Pay order Purchaser Issuing/ Payee branch Payee

38. Financial Analysis

39. Financials Profitability more than tripled in 2005. Generated Rs.8.90 billion as profit after tax, assets have grown to Rs.298.70 billion. Total deposits have increased to Rs.229.3 billion, advances increased by over 30% to Rs180.30 billion. PACRA long term rating "AA“, short term rating "A1+“. Bank's return and profitability reflects its pro-growth mantra, proactive approach to growth and profitability.

40. Financial Analysis Net Profit Margin: 2006 2005 1.8:1 1.46:1 Income/ Expense Ratio: 2006 2005 4.01:1 3.12:1

41. Financial Analysis Earning Per Share: 2006 2005 23.4 21.36 Market Value Per Share: 2006 2005 246.1 167.8

42. Earning Assets to Total Assets Earning Assets / Total Assets 84.58% 87.46% 2006 2005

43. Net Income / Earning Asset 6.39% 4.98% 2006 2005

44. LOAN LOSS COVERAGE 2005 2006 44.7 % 63.7 % 44.7 63.7 0 10 20 30 40 50 60 70 2005 2006

45. Problems Lack of co-ordination among the staff members. Poor relationship with customers. Lack of authority and responsibility. Lack of motivation and fringe benefits. Lack of highly professional educated personals. Lack of training to the staff members. No good dealings with customer.

46. Problems Lack of learning environment No well established parking space. Lack of efficient services. Lack of segregation of the department No time management Machinery not up to date (inefficient) Lack of marketing expertise

47. Suggestions & Reconditions Proper Research & Development Providing learning environment Build Coordination between departments Training and development on continuous basis Established Marketing campaign on regular basis Increase portfolio for SME customer Precautionary plan to protect from new competitors

48. Suggestions & Reconditions Expansion Proper reward and recognition Efficient and effective marketing campaign Advanced management information system Encouragement of ideas from employees Technological Advancement Bank should provide the training to new staff as well as old staff.

49. Suggestions & Reconditions Bank should install the broad band technology. Bank should be coordination among staff. Bank should be the good dealing with the customer. Bank should provide effective & efficient services. Bank should provide the learning environment. Bank should install ATM machine in every branch. Bank should expand their product line. They should develop their Research & development department.