Internship Report on MCB Bank

Internship Report Muslim Commercial Bank
1
INTERNSHIP REPORT
ON
MCB BANK Ltd.
Submitted To:
Prof. SIR YASIR GONDAL
Submitted by: SONIA KANWAL
B.Com (hons)
Bc13-453
Semester 8th (afternoon)
Session 2013-2017
Hailey College of Commerce
University of the Punjab
Lahore

2
CHAPTER I
INTROTODUCTION OF THE COMPANY
1.1 HISTORY
MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947. MCB
is not an overnight success story rather good track of services are responsible for the leaps and
bounds progress. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka from
where it commenced business in August 1948. In 1956, the Bank transferred its registered office
to Karachi, where the Head Office is presently located. Thus, the bank inherits a 50-year legacy
of trust in its customers and the citizens of Pakistan.
The performance of MCB was badly affected by bureaucrat government. In January 1974,
MCB was nationalized by Bhutto Government following the bank act 1974 subsequently in June
1974 Premier Bank Limited merged with MCB.
1.1.1 PRIVATIZATION
When privatization policy was announced in 1990, MCB was the first to be privatized upon
recommendations of World Bank and IMF. The reason for this choice was the better profitability
condition of the organization and less risky credit portfolio which made'' it a good choice for
investors. On April 8th, 1991, the management control was handed over to “NationalGroup” (the
highest bidders). Initially only 26% of shares were sold to private sector at Rs. 56 per share.
MCB besides being money financial organization have rendered invaluable services in the
economics and social developments of our country. MCB today, represents a bank that has grown
with time, experience and Pakistan. A major financial institution, in scope and size, it symbolizes
a fully-grown tree. Evergreen, Strong, and firmly rooted.
1.1.2 DEVELOPEMENT

3
After privatization, the growth in every department of the bank has been observed.
Following are some key developments:
Launching of different deposit schemes to increase saving level.
Increased participation on foreign trade.
Betterment of branches and staff service level.
Introduction of Rupee Traveler Cheques& Photo Credit Card for the first time in Pakistan.
Extended use of information technology which is evident from the fact that there are 1173
fully automated branches, 550 ATMS in nationwide and a MCB continuously innovate new
product.

4
1.2 INTRODUCTION
MCB Bank Limited (Formerly Muslim Commercial Bank Limited) is one of the leading
banks of Pakistan with a deposit base of Rs. 632 billion and asset base of Rs. 815 billion at the end
of financial year 2013.
This report is an upshot of my eight weeks internship in Muslim Commercial Bank of
Pakistan. MCB of Pakistan possesses an imperative and historical importance in the banking sector
of Pakistan.
MCB is not an overnight success story; it unfolds 60 years’ growth. The bank started
corporate life in Calcutta on July 9, 1947. After the partition of the Indo-Pak Subcontinent, the
bank moved to Dhaka from where it commenced business in August 1948. In 1956, the Bank
transferred its registered office to Karachi, where the Head Office is presently located. Thus, the
bank inherits a 60-years legacy of trust in its customers and the citizens of Pakistan.
In January 1974, the government of Pakistan nationalized MCB following the banks Act
1947; Premier bank Limited merged with MCB.
A wave of economic reforms swept Pakistan in the late 1990, introducing the need for
privatization of state owned banking companies. In April 1991, MCB became Pakistan’s first
privatized bank. The government of Pakistan transferred the management of the Bank to National
Group, a group of leading industrialists of the country by selling 26% shares of the bank. In terms
of agreement between the Government of Pakistan and the National group, the Group, purchased
additional 24% shares resulting their holding 50% .
During the last fifteen years, the Bank has concentrated on growth through improving
service quality, investment in technology and people, utilizing its extensive branch network,
developing a large and stable deposit base and managing its non-performing loans via improved
risk management processes. The bank has restructured its asset portfolio and rationalized the cost
structure in order to remain a low cost producer.
MCB looks with confidence at year 2013 and beyond, making strides towards fulfillment
of its mission, "to become the preferred provider of quality financial services in the country with
profitability and responsibility and to be the best place to work".

5
Figure1.2.1
2012 2013 2014
Assets . 653,782,292 767,074,697 815,508,371
Deposits 491,188,710 545,060,728 632,330,286
1.2.2 Mission Statement
We are a team of committed professionals, providing innovative and efficient
financial solutions to create and nurture long-term relationships with our customers. In
doing so, we ensure that our shareholders can invest with confidence in us.
1.2.3 Vision Statement
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future.
1.2.4 Core Values at MCB
MCB Bank Limited claims and practices following core values
Integrity, Innovation, Excellence, Customer Centricity, Respect

6
Corporate Profile
Board of Directors
Mian Mohammad Mansha (Non-Executive Director) Chairman
S. M. Muneer (Non-Executive Director) Vice Chairman
Tariq Rafi (Non-Executive Director)
Shahzad Saleem (Non-Executive Director)
Sarmad Amin (Non-Executive Director)
Mian Raza Mansha (Non-Executive Director)
Aftab Ahmad Khan (Non-Executive Director)
Mian Umer Mansha (Non-Executive Director)
*Ahmad Alman Aslam (Non-Executive Director)
Dato’ Seri Ismail Shahudin (Non-Executive Director)
Muhammad Ali Zeb (Non-Executive Director)
Imran Maqbool (Executive Director) President CEO)
Chief Financial Officer
Salman Zafar Siddiqi

7
Company Secretary
Syed Mudassar Hussain Naqvi
Auditors
M/s. A. F. Ferguson & Co.
Chartered Accountants
Legal Advisors
M/s. Khalid Anwer & Co.
Advocates & Legal Consultants
Audit Committee
Tariq Rafi (Non-Executive Director) Chairman
Aftab Ahmad Khan (Non-Executive Director)
Dato’ Seri Ismail Shahudin (Non-Executive Director)
Ahmad Alman Aslam (Non-Executive Director)

8
1.2.5 BRANCH NETWORK
MCB is in its over 50 years of operation. It has a network of over 1173 branches all over
the country. The branch structure is as follows with respect to different angles
Figure1.3.1.
Provinces Branches Sub-
Branches
Total
Branches
Punjab 725 10 735
Sindh 260 5 265
Khyber
Pakhtunkhwa
114 1 115
Balochistan 40 - 40
Azad J.
Kashmir
26 - 26
Domestic
Total
1165 16 1181
Overseas 7 - 7
EPZ 1 - 1
Grand Total 1173 16 1189

9
1.2.6 OVERSEAS BRANCHES
Colombo 1
EPZ 1
Kandy 1
Maradana 1
Bahrain 1
Pettah 1
Wellawatte 1
Batticalao 1
Total 8
Dubai (Rep. office) 1

10
1.2.3 PRODUCTS AND SERVICES
Following are the products and services of MCB Bank Limited:
1.2.3.1 TERM DEPOSITS
MCB Term Deposits offer attractive short to mid-term investment options with flexibility,
convenience and security. With various tenor options available, customers can choose one that suit
their needs. This is combined with different profit payout options and the added facility of being
able to avail credit facility against their deposits.
1.2.3.2MCB ONLINE BANKING
MCB has a fast growing network of 1100+ online branches in the country providing
customers real-time online transaction facilities.
1.2.3.3 MCB MNET
MNET is an electronic inter-bank connectivity platform for online transactions on ATM
and other remote banking channels. It offers other value added services that include a portfolio of
e-banking and payment system products as well as management and day-to-day operations of the
same. Members include 10 local and foreign financial institutions enjoying ATM sharing and value
added services.
1.2.3.4 MCB CASH MANAGEMENT
Cash Management provides a wide range of value added services to large corporations
through its vast network of online branches. Our structured and customized products enable our
customers to realize their sales proceeds swiftly from all over the country, supported by real-time
MIS. Cash Management also provides payment solutions through MCB network and through third
parties and customized solutions for dividend payouts.

11
1.2.3.5 MCB CHANNEL FINANCING
MCB Channel Financing provides working capital facilities to dealers and vendors of
selected companies under a structured product program. This product enables our customer’s
dealers to leverage themselves and increase their business capacity with their respective business
partners.
1.2.3.6 MCB LOCAL RUPEE DRAWING ARRANGEMENT
Transaction Banking Department at MCB, provides Local Rupee Drawing Arrangement, a
product for small banks and financial institutions to use our vast branch network platform to make
payments in areas where their own branch network does not exist, thus extending their reach
nationwide.
1.2.3.7 MCB HOME REMITTANCE
MCB Home Remittance provides a seamless inflow of foreign remittances credited in the
beneficiary’s account within minutes. Cash payments can also be made at our designated branches
on behalf of Xpress Money, Samba (Speed Cash Now), Money Gram and May bank Money
Express Malaysia, along with cash payments from other correspondents from all over the world
under the brand name of “MCB Fast & Easy”.
1.2.3.8 MCB CORPORATE FINANCING
MCB Corporate Financing provides access to diversified financing options, including
working capital loans, term loans, trade finance services and investment banking.

12
1.2.3.9 MCB PROJECT & STRUCTURED FINANCE
MCB Project & Structured Finance involves financing complex projects, usually in an SPV
structure, where the loan is tightly structured around the cash flows, risks are allocated amongst
various stakeholders, and there is limited or no recourse to the sponsors.
1.2.3.10 MCB SYNDICATED LOANS AND DEBT CAPITAL MARKETS
It involves arrangement, underwriting and placement services for significant financing
requirements by large corporate and institutional clients to other financial institutions or through
the debt capital markets.
1.2.3.11 MCB QUASI EQUITY / HYBRID INSTRUMENTS
It structures and places a category of debt that has some characteristics of equity such as
being unsecured, subordinated or with a potential equity upside.
1.2.3.12 MCB EQUITY CAPITAL RAISING
Equity services relate to raising capital for our clients by offering common or preferred
equity to public or private investors, through initial public offers, offers for sale, rights issues and
private equity placements.
1.2.3.13 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.
1.2.3.14 MCB ISLAMIC BANKING
With the help of Shariah specialists, lawyers and professional commercial bankers, MCB
Islamic Banking provides Riba Free and Shariah Compliant products and services both on the
liability and asset side of the statement of financial position to various customers of all
demographic segments with its presence in a growing number of cities. MCB’s Islamic Banking

13
products are available to cater the need of Working Capital, Capital Expenditures,
International/Local trade and consumer’s requirements.
1.2.3.15 MCB AGRI PRODUCTS
MCB is committed to the farming community to support their national objectives of self
sufficiency & food security to the people of Pakistan. Dedicated and specialized staff, supervised
by the Agri Credit Division, is posted in lending branches to cater for strong business relationships
& facilitation. The bank’s extensive branch network in all the provinces and diversified product
range extends our reach of agri credit facilities to farmers engaged in any type of activity,
encompassing both crop & non crop sectors.
1.2.3.16 MCB PRIVILEGE
A first from a local bank, MCB Privilege through its dedicated, world class Privilege
Centers offers a higher level of personalized services, more rewarding in-branch experiences and
a wide array of deposit and investment products that are tailored to meet the financial expectations
of our affluent clients.
1.2.3,17 MCB SALARY CLUB
A payroll solution designed to make life easy; it simplifies all the monthly payroll related
banking needs of employers 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.
1.2.3.18 MCB INVESTMENT SERVICES
MCB Investment Services offer distribution of mutual funds managed by the leading fund
managers of Pakistan. We can suggest the products most suited for your needs, or work with you
to create a personalized solution completely focused on your expectations of the capital markets.
1.2.3.19 MCB VISA CREDIT CARD
MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing on
providing, superior services, travel privileges & shopping pleasure. It also offers comprehensive

14
insurance & installment plans, reward points and SMS alerts that give a different feel to the world
of credit cards.
1.2.3.20 MCB CAR4U
MCB Car4U not only gets you a car of your own choice but is also affordable with
competitive mark-up, flexible conditions, easy processing and above all, no hidden costs.
1.2.3.21 MCB INSTANT FINANCE
With MCB Instant Finance, get a loan instantly at any MCB branch against liquid collateral
at competitive pricing.
1.2.3.22 MCB VISA DEBIT CARD
MCB Visa Debit Card is Pakistan’s first chip-based debit card. With global acceptance at
over 1.5 million merchants worldwide, the MCB Visa Debit Card allows the customers to enjoy
unmatched convenience, enhanced security and round the- clock accessibility to their funds. The
MCB Visa Debit Card also offers innovative promotional schemes designed to reward our
customers every time they use the card at a Point of Sale (POS) for shopping, dining, fuel, traveling
etc.

15
1.2.3.23 MCB ATMs
MCB has one of the nation’s largest ATM networks. MCB ATMs give you a 24-hours
convenience of cash withdrawal, mini-statement, utility bill payments, mobile top-ups, funds
transfer services and much more.
1.2.3.24 MCB SMS BANKING
Banking at your finger tips: SMS anytime to get information regarding balance, mini
statements once you are registered for the service.
1.2.3.25 MCB BANCASSURANCE
Combining the best of banking and insurance solutions, MCB Bancassurance has created a
one-stop shop for all your financial and insurance needs. Whether you want to save for your child’s
education or marriage, for the security of dignity after retirement or gaining maximum return on
savings, MCB Bancassurance has a plan for you. You can also buy instant insurance coverage
through your mobile without any medical assessment.
1,2.3,26 MCB CALL CENTRE
The simplest way to bank is with the new enhanced 24/7 MCB Call Centre, which blends
innovation and convenience to provide banking services that go beyond expectations. MCB Call
Centre enables you to manage your VISA Credit & ATM/Debit Cards, confirm account balances
& view last 6 transactions, pay utility/mobile phone & MCB Visa Credit Card bills, top-up your
mobile, transfer money within MCB network accounts and register complaints. Most importantly
it provides you with our very own banking consultant to discuss your financial needs and
requirements. Simply call at 111-000-622 and we’ll do the rest.
1.2.3.27 MCB MOBILE
MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer money,
pay bills and do much more. Visit the nearest MCB ATM or call 111-000-622to register and login
to www.mcbmobile.com using your mobile phone to start transacting.

16
1.2.3.28 MCB VIRTUAL BANKING
MCB Virtual Banking Service is a convenient way to access your account(s) 24/7. It is
secure, free of cost and lets you do your banking whenever and wherever it suits you. This service
allows you to transfer funds, pay utility/mobile bills, set up standing order instruction, download
account statement and much more.

17
1.3 ORGANIZATIONAL STRUCTURE
As MCB is a banking company listed in stock exchange therefore it follows all the legalities
which are imposed by concerned statutes Mian Muhammad Mansha is Chairman 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 five segments with different
people handling each category. These categories are:
Corporate Banking
Commercial Banking
Consumer Banking
Privileged Banking
Islamic Banking
1.3.1 CORPORATE BANKING
These are branches which have an exposure of over Rs. 100 million. Usually includes
multinational & public sector companies
1.3.1.1COMMERCIAL BANKING
The branches which have a credit exposure of less than Rs. 100 million but having a credit
portfolio of more than Rs. 20 million (excluding staff loans) Usually branches in large markets

18
and commercial areas come under this category. These include working like account opening,
deposits, withdrawals etc.
1.3.1.2 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. These branches include just cross
sell like: MCB investment, MCB insurance, MCB credit card and MCB card leasing. But now
MCB doesn’t have consumer branches.
1.3.1.3 PRIVILEGE BANKING
A first from a local bank, MCB Privilege through its dedicated, world class Privilege
Centers offers a higher level of personalized services, more rewarding in-branch experiences and
a wide array of deposit and investment products that are tailored to meet the financial expectations
of our affluent clientele. As members of MCB Privilege, customers experience unparalleled
advantages that put them ahead of others. MCB’s dedicated Privilege Centers await to welcome
you in Karachi, Lahore, Islamabad and Multan, with plans to expand to more locations.
1.3.1.4 ISLAMIC BANKING
With the help of Shariah specialists, lawyers and professional commercial bankers, MCB
Islamic Banking provides Riba Free and Shariah Compliant products and services both on the
liability and asset side of the statement of financial position to various customers of all
demographic segments with its presence in a growing number of cities. MCB’s Islamic Banking
products are available to cater the need of Working Capital, Capital Expenditures,
International/Local trade and consumer’s requirements.
1.3.3MANAGEMENT HIERARACHY

19
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
EXECUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT
VICE PRESIDENT
ASSISTANT VICE PRESIDENT
GRADE 1
GRADE 2
GRADE 3

20
1.4Functions Performed by Divisions/Departments
1.4.1 FUNCTION PERFORMED
1.4.2. BRANCH MANAGER
Responsibilities
 Responsible for overall Business affairs of the Branch.
 Development of Business Plan for the Branch.
 Marketing of Deposits, Products as well as Commercial and Retail Banking Products.
 Negotiations with the Borrowers and Depositors for Facilities, Securities, Pricing.
Obtainment of Customer’s Financials.
 Sanction of Credit Proposal within his/her Business Discretionary Powers.
 Follow up for recovery of Finance jointly with Credit Officer.
 Filing & Persuasion of Suits for Recovery of Finances Below Rs.30. million
 Jointly with Credit Officer).
 Coordination with the Branch Operations Manager in preparation of Budget.
1.4.2 OPERATIONS MANAGER
Responsibilities
 Manage all operations of the Branch by implementing Standard Procedure
 Manual (SPM), State Bank of Pakistan Prudential Regulations, Core Principles
 and all applicable rules and regulations.
 Maintain high level of Customer Service Standards in the Branch with particular emphasis
on Cash Counters..
 Maintain a zero complaint environment in respect of collection of utility bills, collection /
receipts of Government revenues, pension and salary payments to Government and other
employees in particular, and other customer services areas.
 Permission to open new Bank accounts.

21
1.4.3 CREDIT ADMINISTRATION OFFICER JOINTLY WITH OPERATIONS
MANAGER
1.4.3.1Responsibilities
 , Transfer of Title of Collaterals, Creation of Charge in Bank's favor etc.) is in accordance
with approved terms and conditions of sanction advices. Tracking and follow-up for
outstanding documents (if any) to ensure execution thereof.
 Before recording any finance / loan facility information / data into computer system, ensure
that the said facility has been sanctioned by the competent authority.
 Ensure that borrowers are communicated well in time as and when the principal I mark-up
installment becomes due. Late payments or non-payment of installments are recorded
properly and the same are conveyed to competent authorities.
 Ensure compliance to procedural standards and guidelines issued by competent authorities
for maintenance of credit files.
 Ensure that all security documents are kept in fireproof safes under dual control and
registers for documents are being maintained to keep track of their movement.
 Arrange fresh and renewal of insurance coverage for all primary and collateral securities
on regular intervals from Bank's approved Insurance company.
 Review of all Trade Finance related transactions on regular basis and suggest measures to
Branch Manager under advice to Regional Operations Chief.
1.4.4 COMPLIANCE OFFICER
 He performs the duties of Anti Money Laundering, Supervisory Officer at the
Branch too.
 Daily review of transactions to ensure compliance of Bank, SBP & Local Regulations.
 Review of account opening and surprise cash count.
 Review of maintenance of computer input / output.
 Periodical physical count of security stationery.
 Checking of accruals & NBP General Account reconciliation.
 Report promptly about theft, dacoity, fraud, forgeries or any other mishap.

22
 State Bank Prudential Regulations.
 Relevant provisions of existing laws and regulations.
 Guidelines for “Know Your Customer”.
 Anti Money Laundering laws and regulations.
 Monitor / report suspicious transactions to Chief Compliance Officer of the Bank.
1.4.5 RELATIONSHIP OFFICER
 Solicit and establish new credit relationship & maintain existing relationships.
 Preparation of credit proposals.
 Public relations and image building of the Bank.
 Marketing of deposits and other banking products.
1.4.6 RELATIONSHIP MANAGER (FOR CORPORATE BRANCHES)
 Identify potential clients within the allocated vicinity and meet them to know and observe
them over time
 To solicit/attract new clients of good credit growth and profitability to establish credit
relationship with the Bank
 Maintenance of credit relationship with existing clients & cross-selling the bank’s
products (Asset as well as Liability Products) to the suitable clients
 Processing the loan applications, prepare credit proposals, identifying underlying risks,
suggesting mitigates and giving definite recommendations for approval/decline with
justification to facilitate quality lending decision.
 Liaison between the borrower and the operations manager in completing the following
post-sanction formalities:-
 Formalities related to collateral / security including creation of charge
 Execution of Financing Agreements / documents etc
 Fulfillment of conditions precedent to disbursement, as required in the Sanction Advice.

23
 Maintenance of assigned accounts/ and their related files.
 Coordinate periodical inspection of goods hypothecated/ pledged to the bank.
 In case of any shortfall/shortage of pledged stock, follow up the client to make the
shortage/shortfall good to restore the original margin.
1.4.7 CREDIT OFFICER
 The Credit Officer is responsible for the appraisal and shall process credit proposal and
must provide all relevant information and must make recommendation of the acceptability
of the proposal for financing and should state what conditions should be applied. The
office note should be prepared to recommend, refuse or decline the loan application if
there is no plausible justification for entertaining.
 Monitor the credit portfolio of the Branch for Risk Management to recognize early
warning signals and recommend remedial/preventive measures to Branch Managers.
 Processing of credit proposal (Jointly with Branch Managers).
1.4.8 CUSTOMER FACILITATION OFFICER
1.4.8.1 Responsibilities
 Customer Services Officer is responsible for complaints handling and ensure zero
complaint level at the Branch..
 He will maintain a complaint register and record of all the complaint received in the
branch in chronological order and mark the disposal / action taken there against.
 He will handle and investigate the complaint in fair and prompt manner.Complaint made
personally should be redressed instantly; complaint received in writing would be
handling in priority. He will contact the complainant and shall resolve the complaint
immediately

24
1.5 RATIO ANALYSIS
Ratio analysis is an important and old technique of financial analysis. Ratios are important
and helpful in the reference that:
These simplify the comprehension of financial statement and tell the whole story of changes
in the financial conditions of the business. These provide data for inter-firm comparison. The ratios
highlight the factors associated with successful and unsuccessful firms, also reveal strong and
weak firms. These help in planning and forecasting these can assist management in its basic
functions of forecasting, planning, coordination and control. These help in investment decision in
case of investor and lending decision in case of Bankers etc.
However, the ratios are only indicators, they cannot be taken as final regarding good or bad
financial position of the business other things have also to be seen.
Great care is needed while calculating meaningful ratios and in interpreting them. Although
there are several ratios, which an analyst can employ yet the type of ratios he would, use entirely
depends on the purpose for which the analysis is done i.e., a creditor would keep him abreast about
the ability of a concern to cover up its current obligations and so would care about current and
liquid ratios, Turnover of receivables, coverage of interest by the level of earnings etc.
1.5.1 ADVANTAGES OF RATIO ANALYSIS
It helps to give comprehensive financial statements in evaluating aspects of any
undertaking in respect of financial health, operations efficiency and profitability. It gives a chance
of inter-firm-comparison to measure efficiency and helps management to resort to some remedial
measures. It provides a good help in decision making for investors and the financial institutions.
CATEGORIES OF RATIO ANALYSIS
Liquidity ratios
Activity ratios
Debt ratios
Profitability ratios

25
Market ratios
LIQUIDITY RATIOS
The liquidity of a firm is measured by its ability to satisfy its short-term obligations as they
come due. Liquidity refers to the solvency of the firm’s overall financial position i.e. the ease with
which it pays its bills. Due to low or declining liquidity firm moves towards financial distress and
bankruptcy.
Liquidity Measures:
Current ratio
Quick (acid-test) ratio
CURRENT RATIO
The current ratio measures the number of items of the firms current assets cover its current
liabilities. The current ratio should be part of the business' basic financial planning, meaning it should
be tracked monthly or quarterly. By keeping a close eye on this figure, we will recognize if it begins to get out
ofline. This will allow us to take earlyactionto prevent the business from ending up in a difficult position.
Current ratio= Current assets / Current liabilities
Figure 1.5.1.2
Year 2011 2010
Current asset 633,906,357 549,420,076
Current liabilities 558,173,405 483,336,003
Current ratio 1.135 1.136
Working: I calculated all these values from maturities table of assets and liabilities and
added those values that are current (fall in one year).

26
Interpretations
As the current ratio from the year 2010 to 2011 is 1.136 and 1.135 respectively. The higher
the current ratio, the more liquid the firm is considered to be. A current ratio of 2:1 is acceptable.
So, this value of 1.136 and 1.135 is acceptable.
QUICK RATIO
The quick (acid-test) ratio is similar to current ratio except that it excludes inventory, which
is generally the least liquid current ratio.
Quick Ratio = Current Assets - Inventories / Current Liabilities
Figure 1.5.1.2
Year 2011 2010
Current asset 633,906,357 549,420,076
Inventories 0 0
Current ratio 1.135 1.136
1.1344 1.1346 1.1348 1.135 1.1352 1.1354 1.1356 1.1358 1.136 1.1362
2010
2011
Current Asset
current assets

27
Working: I calculated all these values from maturities table of assets and liabilities and
added those values that are current (fall in one year).
Interpretations
As the Acid test ratio from year 2010 to 2011 is 1.136 and 1.135 respectively. A quick ratio
of 1.0 or greater is recommended. So, it is acceptable.
WORKING CAPITAL
Working Capital = Current Assets – Current Liabilities
Figure 1.5.1.3
Year 2011 2010
Current asset 633,906,357 549,420,076
Working capital 75,732,952 66,084,073
1.1344 1.1346 1.1348 1.135 1.1352 1.1354 1.1356 1.1358 1.136 1.1362
2010
2011
Quick Ratio
quick ratio

28
Working: to calculate working capital I added all current assets and current liabilities than subtract
current liabilities from current assets
Interpretations
Working capital of the MCB bank is positive in year 2010-11.The current assets of MCB
are greater than its liabilities. So in this graph the working capital is positive. Working capital
measure the financial position of the bank and short term financial health. Working capital of
Muslim commercial bank is positive it means the bank currently is able to meet its short term
liabilities.
DEBT RATIOS
Debt ratios measure the degree of protection of suppliers of long term funds.
The debt ratio includes:
Debt to equity ratio
60,000,000 65,000,000 70,000,000 75,000,000 80,000,000
2010
2011
WorkingCapital
Working Capital

29
Debt ratio
Time interest earned ratio
DEBT TO EQUITY RATIO
Debt to equity ratio =total debt / total equity
Fgure 1.5.1.4
Year 2011 2010
Total debt 564,670,502 488,482,736
Total equity 91,654,305 81,999,127
Debt to equity 6.16 5.96
Working: I take total liabilities and shareholders equity from balance sheet. Shareholders
equity include share capital, reserves, UN appropriated profit and transfer from surplus on
revaluation of fixed assets. Sum up all these amounts and finds shareholders equity.
Interpretations
5.85 5.9 5.95 6 6.05 6.1 6.15 6.2
2010
2011
Debt to Equity Ratio
Debt to Equity Ratio

30
Muslim Commercial Bank Limited Debt to Equity Ratio was 5.96 and 6.16 for the year
2010 and 2011 respectively. The graph shows that the bank’s equity is greater than its liabilities.
DEBT RATIO
The debt ratio measures the proportion of total assets financed by the firm’s creditors. The
higher the ratio, the greater the firm’s degree of indebtedness and the more financial leverage it
has.
Debt ratio = total liabilities/ total assets
Figure 1.5.1.5
Year 2011 2010
Total liabilities 564,670,502 488,482,736
Total assets 656,324,807 570,481,863
Debt to equity 86.04% 85.63%
Working: I take these values from balance sheet (total liabilities and total assets)
Interpretations
85.40% 85.50% 85.60% 85.70% 85.80% 85.90% 86.00% 86.10%
2010
2011
Debt Ratio
Debt Ratio

31
The graph showing that Muslim Commercial Bank Debt Ratio was 85.63% and 86.04% for
the year 2010 and 2011 respectively. Debt Ratio of Muslim Commercial Bank Limited increases
with the passage of time which is not good for Banks health.
TIME INTEREST EARNED RATIO
The time interest earned ratio also called interest coverage ratio, measures the firm’s ability
to make contractual interest payments.
Time interest earned ratio= EBIT/interest
Figure 1.5.1.6
Year 2011 2010
EBIT 54,954,397 44,537,011
Interest 23,632,615 18,027,372
Time interest earned ratio 2.33 2.47
WORKING: EBIT stands for earnings before interest and tax I calculated this ratio to the
sum of profit before tax and interest expense.
2.25 2.3 2.35 2.4 2.45 2.5
2010
2011
Time Interest Earned Ratio
Time Interest Earned Ratio

32
Interpretations
The graph shows time interest earned ratio is 2.47 and 2.33 for year 2010 and 2011
respectively. It decreases in 2011.
PROFITABILITY RATIOS
The profitability ratio enables the analyst to evaluate the firm’s profits with respect to a
given level of sales, a certain level is assets, or the owners’ investment.
Profitability ratio includes:
 Net profit margin
 Operating profit margin
 Gross profit margin
 Return on total assets
 Return on common equity
NET PROFIT MARGIN
The net profit margin measures the percentage of each sales remaining after all cost and
expenses, including interest, taxes. The higher the firm’s net profit margin, the better.
Net profit margin=net profit /total revenue
Figure 1.5.1.7
Year 2011 2010
Net profit 19,302,483 16,872,126
Total revenue 68,215,902 54,829,365
Debt to equity 28% 31%
Working: I obtain all these values from profit and loss account of MCB bank. Net income
is the profit after taxation and net sales are the interest earned.

33
Interpretations
Graph showing that the profit margin ratio of the Muslim commercial bank limited. In year
2010 to 2011 the ratios are 31% and 28%.This number is an indication of how effective a company
is at cost control. The net profit margin is decreasing in 2011, so it is not good because in year
2010 profit is more.
OPERATING PROFIT MARGIN
It represents the “pure profit” earned on each sales.
Operating profit margin = EBIT/total revenue
Figure 1.5.1.8
Year 2011 2010
EBIT 54,954,397 44,537,011
Total revenue 68,215,902 54,829,365
Debt to equity 80.56% 81.23%
26% 27% 28% 29% 30% 31% 32%
2010
2011
Net Profit Margin
Net Profit Margin

34
Working: I obtain these amounts from profit and loss account, the formula for earnings
before interest and tax is EBIT= profit before tax + interest earned expense and total sales is the
amount of interest earned.
Interpretations
In this graph the operating income margin for the year 2010 to 2011 is 81.23% and 80.56%
respectively. This ratio measure a Muslim commercial bank pricing strategy and operating
efficiency. It designate about what proportion of a bank’s revenue left over after paying for variable
cost of production.
GROSS PROFIT MARGIN
It measures the percentage of each sales after the firm has paid for its goods.
80.20% 80.40% 80.60% 80.80% 81.00% 81.20% 81.40%
2010
2011
Operating Profit Margin
Operating Profit Margin

35
Gross profit margin = Gross profit / Sales
Figure 1,5.1.9
Year 2011 2010
Gross profit 44,583,287 36,801,993
Sales 68,215,902 54,829,365
Gross profit margin 65.36% 67.12%
Working: These values I take from profit and loss account these are interest income and
interest earned.
Interpretations
The gross profit margin ratio of MCB from the year 2010 to 2011 is 67.12% and 65.36%
respectively. This ratio shows the firm’s financial health. It decreases in 2011.
RETURN ON TOTAL ASSETS
It measures the overall effectiveness of management in generating profits with its available
assets.
64.00% 64.50% 65.00% 65.50% 66.00% 66.50% 67.00% 67.50%
2010
2011
Gross Profit Margin
Gross Profit Margin

36
Return on Total Asset = Net income / Total assets
Figure 1.5.1.10
Year 2011 2010
Net income 19,302,483 16,872,126
Total assets 656,324,807 570,481,863
Return on total assets 2.94% 2.96%
Working: I obtain net profit after tax from profit and loss account and total assets from
balance sheet.
Interpretations
The graph shows the return on assets ratio. In 2010 and 2011 the ratios are 2.96% and
2.94% respectively. This is an indicator of how profitable a company is relative to its total assets.
ROA ratio gives an idea of MCB limited as to how efficient management is at using its assets to
generate earnings.
2.93% 2.94% 2.94% 2.95% 2.95% 2.96% 2.96% 2.97%
2010
2011
Return On Total Asset
Return On Total Asset

37
RETURN ON EQUITY
Return on equity measures the return earned on the common stockholdres’ investment in
the firm.
Return on Equity = Net income / Shareholders equity
Figure 1.5.1.11
Year 2011 2010
Net income 19,302,483 16,872,126
Shareholders equity 91,654,305 81,999,127
Return on equity 21.06% 20.58%
Working: I obtain net income from profit and loss account and total equity obtains from
balance sheet of MCB bank. In which include share capital, reserves, UN appropriated profit and
transfer from surplus on revaluation of fixed assets.sum up all these amounts and finds
shareholders equity.
20.30% 20.40% 20.50% 20.60% 20.70% 20.80% 20.90% 21.00% 21.10%
2010
2011
Return on Equity
Return on Equity

38
Interpretations
Return on total equity is 20.58% and 21.06% respectively. Return on equity measures a
Muslim commercial bank's profitability by revealing how much profit a bank generates with the
money shareholders have invested. The graph shows that the return on total equity in 2011 is
greater than 2010.
ACTIVITY RATIO
Activity ratios measure a firm's ability to convert different accounts within their balance
sheets into cash or sales.
TOTAL ASSET TURNOVER
Activity ratio measures the speed with which the various accounts are converted into sales
or cash.
Total assets turnover = Sales /Total assets
Figure 1.5.1.12
Year 2011 2010
Sales 68,215,902 54,829,365
Total assets 656,324,807 570,481,863
Total assets turnover 0.103 0.096
Working: Interest mark up earned is taken from profit and loss account and total assets are
taken from balance sheet.

39
Interpretations
The graph shows that total asset turnover ratio from 2010 to 2011 is 9.6% and 10.3%. Total
asset turnover ratio used to measure the firm's ability to utilize its assets to generate sales. It is an
signal to the firm's operation efficiency. And total asset turnover is increasing.
FIXED ASSET TURNOVER
Fixed assets turnover = interest earned/fixed assets
Figure 1.5.1.13
Year 2011 2010
Interest earned 68,215,902 54,829,365
Fixed assets 22,418,450 21,061,787
Fixed assets turnover 3.04% 2.60%
0.092 0.094 0.096 0.098 0.1 0.102 0.104
2010
2011
Total Asset Turnover
Total Asset Turnover

40
Working: Interest mark up earned is taken from profit and loss account and fixed assets
are taken from balance sheet. Operating fixed assets are fixed assets.
Interpretations
The graph show that the ratio of Muslim commercial bank from 2010 - 2011 is 2.60% and
3.04%. MCB’s fixed assets turnover ratio is increasing during these two years.
1.5.2 MCB’s Strategies
To be competitive the Bank has further reinforced its position in the Consumer Banking
arena by streamlining and re-launching the consumer financing products and introducing more
convenience based solutions. With the re-launch of auto finance and house finance products, the
Bank pushed the products with full thrust. The Bank has also launched a running finance facility
against mortgage of property.
Technology continued to play an important role in improving and expanding product
offerings. The Bank introduced more IT based products to cater to the changing lifestyles and
needs of the customers. MCB Virtual-Internet Banking was launched with wide ranging banking
solutions for the customers ranging from individual to corporate customers and it has become the
most preferred Internet banking solution in the country.
2.30% 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10%
2010
2011
Fixed AssetTurnover
Fixed Asset Turnover

41
MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive
bill payment facility through its alternate delivery channels which include Internet Banking, ATMs
and MCB Call Centre, currently with six payment partners. Similarly, the Bank also took initiatives
to increase the usage of debit facility. To provide timely and updated information, MCB has also
provided a new look to its website which is user friendly and considerably easy to browse.
The Islamic Banking initiative has been very successful in attracting new customer, both
individuals and companies. Similarly, those relationships which were confined only to current
account facility have grown into stronger business relationships. The branch network was
expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and
Faisalabad. The Bank plans to further expand its Islamic Banking branch network to other
metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range
of customers for satisfying their individual and business needs.
Some wide-ranging new strategic initiatives were also taken up which will be important
for the Bank in years to come. A private company has been formed in Hong Kong (fully owned
subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of
select countries in the Asia-Pacific region. It is projected to earn US$ 1 million in its first year of
operations. To increase its international presence, the Bank will be opening its representative office
in Dubai and entering into major strategic alliances with banks in the UAE/ especially for
marketing MCB’s consumer banking products to non-resident Pakistanis. Furthermore, feasibility
is also being carried out for entering other international markets.
MCB's operations continued to be streamlined with focus on rationalization of expenses, re-
alignment of back-end processing to increase productivity, enhancement of customer service
standards, process efficiency and controls. The Bank has taken the lead in introducing the
innovative concept of centralizing Trade Services in the country by providing centralized foreign
trade services to branches with a view to improve efficiency, expertise and reduce delivery cost.
Management of Human Resources has been one of MCB’s core focus areas. MCB is
committed towards attracting, retaining and motivating outstanding people. Challenge for MCB is
to provide an environment in which every employee can better realize their potential. The Bank
introduced 'reward for performance' where high potential officers were identified and rewarded

42
accordingly. In view of the competitive environment, the Bank is focusing on performance and
introducing a more robust performance management system. MCB is also strongly committed to
training its staff at all levels.
The Bank will also be implementing the full suite of the latest version of SYMBOLS Version
8. MCB Bank will run SYMBOLS eFinance modules to deliver personalized services to its
customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will
serve as its core banking transaction processing engine. By implementing SYMBOLS, MCB Bank
aims to raise the level of its customer service and it’s time to market in new product offerings for
its three core banking businesses in Corporate, Commercial and Consumer Banking - retaining its
market leadership as Pakistan's progressive Bank.
1.5.3 Major competitors of the Company
 HBL
 UBL
 ALB
 MZB
 NBP
 NIB
1.5.4 Success and Failure of Products in Market
karobar was being offered by MCB in Pakistan. All this illustrates the failure of co-
ordination among policy-making institutions as admitted by the MCB President, the branch
network of MCB is not very strong.
1.5.4.1 Successful:
All the products of MCB are running successfully.
1.5.5 Human Recourse Policies
 Human Resource Planning and Forecasting
o External supply of labor
o Internal supply of labor
 Employee Recruitment and Selection

43
o Planning
o Job analysis
o Sourcing
o Screening
o Selection
o Interviewing
o Hiring
o Reporting
 Training & Development
o Validation
o Implement the program
o Evaluation
 Performance Management
o Performance Standards
o Appraisals
 Employee Compensation and Benefits
o Financial Benefits
o Non Financial Benefits
o Compensation & Benefits
 Organizational career Management
1.5.6 SWOT ANALYSIS
The overall statement of company’s strengths and weaknesses and assessment of
opportunities and threats at the market place is called the SWOT analysis.
“SWOT is an attempt to balance internal strength and weaknesses of an
Organization with the opportunities and threats of the external environment presents to the
organization.”
1.5.6.1 STRENGTHS

44
 MCB has the online network of branches which is the strength of MCB.
 MCB has a wide network of branches it has more than 1200 branches all over Pakistan,
including 430 rural branches.
 MCB has the biggest network of ATM in Pakistan. 789 ATM’s performing all over the
country.
 MCB provide proper training to its employees on regular basis.
 Strong capital base & Highest Capital Adequacy Ratio in peer Banks
 Highest CASA ratio / low cost deposits (90%) in the industry
 Offering of comprehensive solutions to clients across products (Debt, equity issuance,
advisory and
 facility arrangement)
 Ability to introduce new products to improve margin and volumes
 Diversified Portfolio of loans and advances and diversified income streams
 2nd lowest infection ratio in peer banks
 Conservative and sustainable business policy
1.5.6.2 WEAKNESS
 Limited credit opportunities having low risk profiles
 Concentration in Govt securities & Lending to Public/Govt owned entities
 Lesser international / Global presence as compare to peer banks
 Dependence on the money and capital markets
 Linkage of minimum deposits rate with discount rate by regulator squeezing banks margin
 Exposure to the Euro/US dollar exchange rate, with an impact on growth and results
1.5.6.3 OPPORTUNITIES
 Potential for capitalization on the anticipated growth in Islamic industry
 Strong capital base enable the Bank to explore international markets
 GSP plus status helping to raise the credit demand and recovery of classified portfolio
in textile sector
 Positive and macroeconomic stability will increase demand

45
 Significant increase in the customer base, further extension of the range of the products
 Expansion in Africa, Europe and Middle East- Growth and expansion opportunities in
emerging economies
 Expanding the advisory and other services offered to clients and investors
 Potential relationship with non-resident Pakistanis to attract FDI and home remittance
 Population demographics show an increase in working age population and hence
increase in Banking needs
1.5.6.4 THREATS
 MCB due to its low rate of interest in deposits MCB is losing its customers.
 Foreign banks aggressive increase marketing of their product.
 Not all branches of MCB have the ATM facility.
 Competition from peer banks
 Competition from growing branchless banking
 Inflationary expectation, high degree of dollarization
 Delinquencies of credit portfolio due to ailing economic conditions
 Squeezing margin of Banking industry due to minimum threshold for deposits rates and
reducing discount rate

46
Chapter II
INTERNSHIP ACTIVITIES
Overview of Internship Activities
I worked as an Internee in MCB Bank for 6 weeks as per required by University. During
my Internship, there was a tremendous atmosphere in MCB Bank. I learned so many things from
their management like how to work in a standard place. At my first day in Township branch the
bank branch manager (Mr.Asif Rao) has introduced me with different persons and department of
the bank. After that I have personally visit every department one by one and observe what is
happening there. All the officials have co operate me very much and provide me information,
which I needed.
 The most important benefit of this internship is that I got practical exposure of work place.
 I got practical experience of working practices related with my field.
 I learned that how to manage things and how to create balance among work life and
personal life.
 Management did help me a lot during my work they always guide me especially Branch
Manager.
During my internship at MCB I learned a lot about practical banking. I learned and performed
following tasks:
WORK DONE BY ME
1st&2nd Week
OPENING NEW ACCOUNT BASICS
During the span of mine internship in MCB I learned and observed a lot of about the opening of
an account. Basically I think that the opening of an account is the establishment of a contractual
relationship between the banker and the customer. By opening an account at a bank a person
becomes a ‘customer’ of a bank. Further I am going to express the basic requirements and steps
involved in the opening of an account.

47
INVESTIGATION
Before opening an account MCB as like the other banks in Pakistan ascertains whether or
not the person who is going to open the account is a desirable customer or not. Then MCB
determines the prospective customer’s integrity, respectability, occupation and the nature of
business by the introductory references given at the time of account opening. Negligence in this
informal preliminary investigation may result in serious consequences not only for the banker
concerned directly but also for other bankers and the general public who may be affected indirectly.
In Ladbroke & Co. V Todd (1914), the banker did not obtain introduction at the time of opening
the account, and it was construed a negligence within Section 82 of the Bills of Exchange Act
1882.
In order to further strengthen and streamline this process, the Federal Ombudsman of
Pakistan, vide his ruling on complaint No. II/31/5186, has directed the banks to retain with the
account opening form a Photostat copy each of the National Identity Cards of the person desiring
to open an account as well as that of the introducer. As per these directions, the concerned Branch
Managers are required to obtain the original National Identity Cards along with their Photostat
copies and then return the original after attesting the authenticity of the retained copy.
HOW TO OPEN AN ACCOUNT
Before opening an account in MCB I observed that the following points must be
considered in this regard.
1) First of all a letter form the employer of the person who want to open account with bank.
2) In case of student valid university card is required.
3) Original NIC of a person who want to open an account.
4) Copy of NIC of any family member of a person who wish to open an account.
PROCEDURE TO OPEN AN ACCOUNT
According to my practice in MCB, when a customer wants to open an account, the bank officer
gives him an application form. All information, which is necessary to be known by the bank, are

48
requirements of the application form. Form also requires the essential documents to be attached
by the customer.
Basically following information is required to open an account with MCB
 Title of Account
 Full Name of Applicant
 Occupation
 Address
 Telephone No.
 Currency of account
 Nature of Business
 Introducer’s Name, Address & Signatures
 Special instruction regarding the account
 Initial Amount of the Deposit
 Signature of the applicant
3rd & 6h Week
PROCEDURE TO HONOUR A CHEQUE
During my internship training in the MCB Bank Limited, I observed and found that cheques are
received for the following purposes.
 For Cash payments
 For transfer(from one account to another account)
 For Clearing
FOR CASH PAYMENTS

49
Cheques which are presented on Bank counter must be checked in the following way:
 Date.
 Signature of Drawer.
 Signature of Payee.
 Whether Bearer has cancelled.
 Whether Payee account duly is there.
o If condition 4&5 exist then check the signatures of Drawer.
 Match the figure and wordily amount of cheque.
 Two stamps are put on cheque.
o Cash Payment (on the back of cheque).
o UVL and Signatures Verification
CHEQUE FOR TRANSFER:
When cheques of an MCB account are presented to be deposited to another account of
MCB, it is called Transfer.
Following particulars are checked for transfer of amount through cheque:
 Date of cheque.
 Balance of account from which amount is to be transferred to another account.
 Drawer’s signature.
 Amount, both in words and figure.
If all above particulars are satisfactory, then transfer is made through system.
Following stamps are put on the face of cheque:
a) Posted Stamp.
b) Transfer Stamp.
c) Signature verified Stamp.
Following stamp is put on the back of cheque:
d) Payee’s account credited.

50
CHEQUES FOR CLEARING:
There are two stamps put on each cheque, sent for clearing:
a) Crossing Stamp.
b) Manager Stamp.
CHEQUES IN COLLECTION:
When cheques received in clearing are intra city then these are controlled under CC.
First of all, these cheques are recorded in day book then allotted number and then serial
number. Then a Performa is prepared in which Bank on who was drawn, cheque number, amount,
beneficiary name and account number are recorded. After completing that performa cheque is
posted along with performa.
CLEARING
Following information is entered in clearing register.
a) Name of favoring party.
b) Name of bank on whom drawn.
c) Branch.
d) Cheque number.
e) Amount.
Clearing is sent after entering in register. In clearing register future date and day is putted.
Cheques and vouchers are then separated and Cheques are sent for clearing.
Clearing credit vouchers are entered on clearing sheet. Such credits are balanced by giving
debits to cheques received in clearing from other branches. At the beginning of the day clearing
return sheet is received. Vouchers are made if
1. Clearing received is more than clearing delivered then Credit voucher.
2. Clearing delivered is more than clearing received then Credit voucher.
On the same day, credit vouchers sent for clearing are entered on the sheet's credit side.
Cheques are sent to NIFT after taking them on calculator, their total amount along with

51
total number of instruments. A summary is prepared and sealed after noting the number of seal in
summary.
BC- Banker Cheque
DD- Demand Draft
PO- Payment Order
DD is also prepared and beneficiary can get payment.
First of all, Performa is filled by purchasing party along with cheque or cash payment.
When cheque is received it is first posted in computer section in order to check the balance of
account. After posting the bank officer calculate tax and charges, i.e.
Up to Rs.500000 @ Rs.225
Rs.500k to Rs.1m@Rs.400
More than Rs.1 M @Rs.500
Commission and postage charges are also calculated. These are paid in cash or otherwise
by cheque.
REMITTANCE
For payment of remittances, name, contact number and pin code is acquired from the client.
After this, identification of the person is confirmed. All the particulars are matched as per CNIC.
If identification is confirmed, payment is made.
ISSUANCE OF CHEQUE BOOK
During my period of internship in MCB I observed that when an account is opened then
a cheque is issued to thecustomer for drawing his money at per rules. Following procedure is
adopting for the issuance of cheque.
When a customer opens an account with the bank, he is provided with cheque book for
withdrawals from account. However, the first cheque book is given to the customer only when all
the required documents are checked. A cheque book contains ten, twenty five, fifty or hundred
leaves. The cheque book also carries a requisition slip for the issuance of the new cheque book.
This slip is duly filled and singed by the customer. The signature of the customer is verified by the

52
bank and new cheque book is issued to the customer and serial numbers of the cheque are duly
entered in the book of the bank. Along with the signature, person should also write his full name
& address.
Usually only one cheque book is issued at a time, however big concerns who need a
number of cheque books at a time, may ask the bank to stock as number of cheque books in their
name and to point their name on these cheque books.Bank debits the client’s account for cheque
book issuance charges of Rs.9.00 per cheque and keeps the cheque book ready for the customer,
as on his advice.
2.1.1 Departments Layout and Name of Supervisors:
Following are some departments which I observed during my internship in MCB:
There are 18 total numbers of employees those are segregated among these departments.
 Branch Manager (Mr. Asif Rao)
 Operation Manager (Mr. Sajid)
 Customer Service Department (Miss. Sumaira)
 Account Opening Department (Mr. Ali Saeed)
 Clearing Department (Miss. Afshan)
 Remittance Department (Miss. Kalsoom)
 Credit Department (Mr. Khawaja Israr)
 Tea Boy (Rohail)
 Security Guard (Shahnawaz)
 Sweeper (Iqbal)
2.1.3 PRODUCTS & SERVICES OFFERED BY BANK

53
2.1.3.1 RETAIL BANKING
PERSONAL
Products
 Deposits
 Accounts
 Home Remittances
 Consumer Loans
 Cards
 MCB Lite
 Bancaassurance
 Investment Services
 Rupee TravellerCheques
Services
 Self Service Channels
 MCB Internet Banking
 MCB Locality and Discounts
 Lockers
2.1.3.2 BUSINESS
Products
 Deposit Accounts
 Lending Products
 Trade
 RTC’s

54
Services
 Agricultural financing
 Lockers
 Corporate
2.1.3.3 CORPORATE BANKING
 Transactional banking
 Trade
 Investment banking
 Correspondent banking and financial institutions
TREASURY
HOME REMITTANCES
 PrivilegeBanking
 Islamic Banking
What have I done? What have I learned?
I did my internship in MCB Bank Limited Township Branch Lahore. Some important
information about my branch is as follows
OTHER GENERAL INFORMATION
DEPOSITS:
The total deposits MCB Township is about 1710.55 million.
NUMBER OF ACCOUNTS:
Accounts in this branch of MCB are over 12000.Out of which:
CURRENT ACCOUNTS:
Total numbers of current accounts are 4000+.

55
PLS ACCOUNTS:
Total numbers of profit and loss accounts are 5000.
BASIC BANKING ACCOUNTS:
Above 1000 BBA accounts are there in this branch.
KHUSHALI BACHAT ACCOUNT:
There are about 150 khushhali bachat accounts.
REMITTANCE:
There is a daily average of about Rs. 4.563 million remittances.
RATE OF INTEREST:
The rate of interest provided by such bank is minimum 7% and maximum 8.5%.
FINANCING:
Financing is not dealt here.
CAPITAL:
Capital of branch is treated in its Head Office.
REVENUE:
The major sources of revenue are commission, issuance of cheque books & ATM cards,
remittance charges, online charges, online commission etc. All these sources make revenue of
about 7 million for this branch.
I learned that how to manage things and how to create balance among work life and personal life.
Management did help me a lot during my work they always guide me especially Branch Manager.
I learned whole process of account opening of individuals practically. I remained involved very
much in practical activities of account opening.
I learned whole process of Clearing.

56
During my internship I dealt with many customers and employees, this was a great experience to
learn.
 How to deal with customer.
 How to work under pressure i.e. in rush hours.
 How to manage an office.
 My communications skills were improved.
 I observed the practical application of many accounting concepts.
2.1.6 Wage/Incentives
Bank give more and more incentives to its employees in order to remove the conflitcs
between lower and higher officers and try to improve the working condition of the bank.
Such system should be designed that every employee who has some problems with his
officers can communicate it to the higher management and some steps must be taken to improve
that.
2.1.6.1 Acconts Department
Every transaction which takes place recoded in the computer so all transactions in different
departments are forwarded to account department.
Since all vouchers from different departments are forwarded to accounts department so this
department tallies all such transactions with current department after maintaining the ledger of the
each department.
Following are different functions performed by this department.
 Preparation of different types of reports for State Bank
 Daily Position of cash & every accounts
 Matching daily summaries of all departments with ledger
 Preparation of financial statements for different time span
 Maintain all accounts of different departments
 Calculation of profit on different schemes

57
As software is used therefore all these tasks have become quite simple just it requires posting and
then all tasks can be performed by giving computer commands
2.1.10 Overall Comparison Between Theory and Practice
In the class room i think the reality and actualities of working in the real world will assist
my thoughts and expectations. Things we learn in the class room differ heavily from the real world
actions of officers. We learn many behaviors and topics that can be deemed intrusive in a real
world setting. We were taught a lot of things in the class room which helped a lot during my
internship but only my concepts were cleared in the class room. By working in the bank i came to
know how the banking system works and what requirements are to fulfill in order to get the work
done.

58
Chapter III
INTERNSHIP ASSESSMENT AND RECOMMENDATIONS
3.1 Major Responsibilities During Internship
 Making demand draft and pay orders
 Making different documents at the time of opening account
 Fax to other branch
 Count daily inward and outward cheques
 To give assistance to customers
 Filling deposit slips
 Guidance to customer for applying ATMs
 Record all the ATMs applying and delivery
 Maintaining inward and outward mail register
3.2 Skills from Internship
Following are the skills which I get during my internship:
 To work practically
 Getting the knowledge of account opening
 Having the skills of applying ATMs
 Having the skill of checking the financial statement of the company
3.2 Impact of Internship on Future Career
One of the recurring themes in any entry level job search is the lack of experience factor.
"Where do I get experience if no one is willing to hire me?" The answer is simple: Get an
internship! Students planning to enter the permanent work force should complement their
academic preparation with a range of other experiences, such as study abroad, community service,
undergraduate research experiences, participation in sports and other student organizations,
membership in pre-professional organizations, and internships. An internship offers you the
chance to learn by doing in a setting where you are supervised by a work-place professional, and

59
have the opportunity to achieve your own learning goals, without the responsibilities of being a
permanent employee. An internship also offers you the opportunity to work with someone who
can become a mentor for you - not only in the internship, but throughout your career.
3.4 Comparison Between Theory and Practice
In the class room i think the reality and actualities of working in the real world will assist
my thoughts and expectations. Things we learn in the class room differ heavily from the real world
actions of officers. We learn many behaviors and topics that can be deemed intrusive in a real
world setting. We were taught a lot of things in the class room which helped a lot during my
internship but only my concepts were cleared in the class room. By working in the bank i came to
know how the banking system works and what requirements are to fulfill in order to get the work
done.
3.5 General Observations about the MCB:
After work in MCB as an internee I realize that MCB is following good system of banking
as they have wide network of online branches in Pakistan and all over the world. MCB has been
providing good services of banking from last 69 years.
During the internship I worked in almost all the departments of the bank and I came to the
conclusion that “MCB Main Boulevard Defence Branch” is providing a variety of services through
its departments to its large number of customers according to their needs. MCB is successfully
competing with its competitors while adapting to the internal and external changes. MCB should
continue with the same spirit to serve the Pakistani citizens in the country and all over the world.
The financial position of the bank is very strong. MCB tried to provide the best services
and safety to public by introducing the Rupees Travelers Cheques and by having the largest
network of Automated Teller Machine.
3.6 RECOMMENDATIONS

60
Following are my observation and recommendation improves the efficiency more for the
development of the economy.
According to my judgment following are the recommendations and improvements for the
bank on the bases of my observations in branch and ratios analyses.MCB should appoint at least
one HRM officer at every branch for dealing HR related work. I would recommend that every
employee must work in every department for some time to insert knowledge of all the departments
as job rotating. Employee should be trained with different training program.
Working capital of Muslim commercial bank is negative its means bank can not pay there
short term obligations I recommended that Muslim commercial bank need to positive there
working capital.
The Bank takes the all necessary steps to ease to their customer like the better environment
according to their needs and wants. Customer problems are also be taking under observation like
the too much time taking for the payment of the cheque.
3.7 Recommendations for the College
I would like to recommend for college to design artificial banking software and arrange practical
class for banking students in lab where they got training about the computerized banking system.
3.8 Recommendations for Future Interns
 Never ever ever complain
 Get to know people from every department
 Don’t be afraid to ask questions
 Make a list of all the things you want to learn how to do
Research the company beforehand
Don’t feel any hesitation
REFERENCES

61
http://www.mcb.com.pk/
http://www.sbp.org.pk
http://www.fbs.gov.pk
http://www.mcb.com.pk/mcb/about_mcb.asp
http://www.mcb.com.pk/mcb/corporate_information.asp
http://www.mcb.com.pk/psc/accounts/basic_account.asp
http://www.kse.com.pk/
Introduction to managerial finance (M.A.GHANI)

Internship Report on MCB Bank

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Internship Report on MCB Bank

Similar to Internship Report on MCB Bank (20)

Recently uploaded

Recently uploaded (20)

Internship Report on MCB Bank