Waqar Sharif Report

Internship Report on MCB bank Page 1
Internship Report
On
MCB Bank Limited
D.C Chowk, Bahawalpur
SUBMITTED TO: Mr. Salman Azhar
SUBMITTED BY: Waqar Sharif
BBA-M1 (2012-2016)
DATED: Sep 16, 2015
ISLAMIA UNIVERSITY OF BAHAWALPUR

President’s Message:
We at MCB Bank Limited believe that every employee is unique and possesses
distinctive talents that we value and nurture. MCB Bank is home to an exclusive
group of committed and dedicated individuals who jointly, with their dedication,
honesty, innovation and teamwork, contribute towards our collective success.
Our organization has a long and healthy tradition of providing exceptional service
and preserving strong relationships with both our internal and external
customers. Therefore, at MCB Bank, we inspire every individual to play a
significant role in our continued success by creating maximum economic value
for our clients and shareholders, while maintaining the highest human values and
principles.
MCB Bank is one of the leading financial services providers in Pakistan and as
one of the largest and oldest banking entities in the country; we not only embrace
and cherish our heritage and traditions, we strive for growth and change as well.
Our goal is to create and promote long term relationships with our customers by
catering to all their financial needs, including traditional banking services,
insurance and investment advisory, coupled with an exceptional level of
customer service.
Our objective at MCB Bank is to ensure that we have motivated, professional and
customer-centric employees on board who help us deliver the promise of being
the 'most credible bank' across the industry.
Imran Maqbool
President & CEO
MCB Limited Pakistan

EXECUTIVE SUMMARY
I have done my internship in MCB Bank limited (Muslim Commercial Bank
Limited). The main purpose of internship was to learn, by working in practical
environment and to apply the knowledge acquired during the studies. There was
only one department named as general banking. I had worked in Remittance,
where I filled Pay Order, Online transfer, Demand Draft, Call Deposit Receipt
forms. I did all type of clearing named as Normal Clearing, Same Day Clearing,
and Intercity Clearing. I have opened new account for new customer. I
successfully completed the entire tasks that were assigned to me.
During the six week time period of my internship I learned about different things
that how the Branch Manager deals with the customers and Staff. I learned that
what kinds of documents are required for different kinds of financing activities or
opening new account etc. Those things which I have mentioned above have
been discussed in detail and all the procedures have been describe thoroughly.
In this report there detail back ground, vision and mission statement and
business operation (organization Structure, SWOT Analysis, Marketing Strategy,
Competitive Strategy, Business Process Analysis) and some relative material of
MCB Bank Limited.
I have done my best I hope to ALLAH that this report will provide a complete and
clear image of Muslim Commercial Bank Limited.

Acknowledgement
First of all I thanks to ALLAH that
HE gave me courage and ability
to do this kind of task.
Secondly, I see that the credit
goes to my loving parents and
my respected teachers who
make me able to be at this
position.
Finally I’m thankful to all the staff
members of MCB limited Bank
(D.C Chowk BWP) Specially the
Branch Manager; Mr. Adnan
Azam and Operation Manager;
Miss Yasmeen.

TABLE OF CONTANT
 Executive Summery 02
 Dedication 03
 Acknowledgement 04
 Vision and Mission 07
 Background 08
 Awards 09
 Values 10
 Business Operation
 Organizational Structure 12
 Board of Directors 13
 Products & Services 14
 SWOT Analysis
i. Internal Analysis 17
ii. External Analysis 19
 Marketing Strategy 20
 Competitive strategy 23
 Business Process Analysis
a. Horizontal analysis of Balance Sheet 28
b. Horizontal analysis of Income Statement 29
c. Horizontal analysis of Balance Sheet 30
d. Horizontal analysis of Income Statement 31
 Plan of internship program 35
 Account opening department 36
i. Current account 36
ii. Saving Account 37
iii. Term deposit account 37
 Clearing department 40
i. Outward clearing 41

ii. Inward clearing 43
TABLE OF CONTANT
 Remittances department 44
i. Demand Draft (DD) 45
ii. Pay order ( PO) 45
iii. Online transfer 45
iv. Call Deposit Receipt (CDR) 46
v. Deposit slip 46
 References 48

 VISION & MISION STATEMENT
Vision Statement
“To be the leading financial services providing, partnering with our customers for
a more prosperous and secure future.”
Mission Statement
“We are team of committed professionals, providing innovative and efficient
financial solutions to create and nature long term relationships with our
customers. In doing so, we ensure that our share holders can invest with
confidence in us.”

BACKGROUND OF MCB BANK
The MCB was established one month before the independence in June
1947. First head quarter in Calcutta and after independence it was shifted from
Calcutta to Dhaka and afterward its head quarter were shifted from Dhaka to
Karachi in 1948. Among the other 22 scheduled banks with 3525 branches
network nationalize on 01st
January1974 through the nationalization of Bank act
1974, under the nationalization policy of the Government. MCB was also
nationalized and at that time of nationalization Premier Bank was merged in MCB
Bank Limited in 1974.
After the failure of the communism it was realizes through the world the idea
of nationalization was not correct and has no any positive effects on economy.
This idea developed especially in 1980 decade under which in sub continent of
Asia its importance was also realized. In Pakistan privatization and deregulation
policy was stared in1998 under this policy the first unit privatized was MCB with a
view to stable the economy and reduce the burden of national exchequer of other
sick units.
In 1990 this bank was announced for privatization on the ground that 51%
shares would be for general public out of which 26% shares would be offered to
particular party, which will take the administration of bank and lead by Mian
Muhammad Mansha who was the first chairman of MCB LTD.

 VALUES
 Integrity
We are the trustees of public funds and serve our community with
integrity. We believe in being the best at always doing the right thing. We
deliver on our responsibilities and commitments to our customers as well
as our colleagues.
 Innovation
We encourage and reward people who challenge the status quo and think
beyond the boundaries of the conventional. Our teams work together for
the smooth and efficient implementation of ideas and initiatives.
 Excellence
We take personal responsibility for our role as leaders in pursuit of
excellence. We are a performance driven, result oriented organization
where merit is the only criterion for reward.
 Customer Centricity
Our customers are at the heart of everything we do. We thrive on the
challenge of understanding their needs and aspirations, both realized and
unrealized. We make every effort to exceed customer expectations
through superior services and solutions.
 Respect

We respect our customers’ values, beliefs, culture and history. We value
the equality of gender and diversity of experience and education that our
employees bring with them. We create an environment where each
individual is enabled to succeed.

Products & Services Provided by MCB bank
 MCB RETAIL BANKING
DEPOSIT ACCOUNTS
 Current Account
 Savings Account
 MCB ONLINE SERVICES
 MCB ATMs
 MCB Call Centre
 MCB Mobile
 MCB Mobile ATM
 MCB Online Banking
 MCB LOAN PRODUCTS
 MCB Car4U
 Student Personal Loan
 Home Loan
 Personal Loan
 Cash4Cash
 MCB CARDS
 Credit Cards (Classic/Gold Credit Card) (Platinum Credit Card)
 Prepaid Debit Card

 MCB LITE
 MCB Lite (pass it on) is a “socially connected” payments solution
that saves you time and money.
 This innovation enables you to control your finances and make
payments through the use of a Visa card and a Mobile Wallet.
 MCB INVESTMENT BANKING
 Project & Structured Finance
 Syndicated Loans and Debt Capital Markets
 Quasi Equity/Hybrid Instruments
 Equity Capital Raising
 Advisory Services
 Facility Administration
 Commercial Banking
 MCB CORPORATE FINANCING
 Working Capital Loans
 Term Loans
 Trade Finance Services
 Cash Management
 Transaction Banking Division
 MCB BANCASSURANCE
 MCB’S REMITTANCE
 MCB AGRICULTURE PRODUCTS
 Shadabi Plan

 Khushali Scheme
 Tractor Finance Scheme
 Aabiari Scheme
 Grower Finance
 Dairy & Meat Plan
 Murghbani Scheme
 Baghbani
 Mahigeri Schemz
 PRIVILEGE BANKING
 OTHER SERVICES
 MCB MNET
 MCB Salary Club
 MCB Lockers
 MCB SMS Banking
 MCB Full Day Banking
 SWOT Analysis
There are two part of SWOT Analysis
 Internal Analysis
 External Analysis

 Internal Analysis
 Strengths:
The strengths of MCB Bank are the following:
1. MCB is the first Pakistani privatized bank because of its quality
management, marketing, innovation in product and services is
performing well in financial market.
2. It has created a good reputation in the banking sector.
3. It has 1200+ branches on different places in Pakistan.
4. It has one of the nation’s largest ATM network with more than 500
ATMs covering 110 cities across the country and it is still growing.
5. It provides MCB mobile ATM for convenient world class banking
services.
 Weaknesses:
1. Mismanagement of time is the biggest mistake in MCB branches that
the official time of bank closing is 5:30pm but the staff is normally on
their seats till 7:00pm to 9:00pm.
2. Due to the lack of advertisement majority of the people are not well
aware about the products of MCB.
3. There is lack of specialized skill because of rotation policy of human
resource management.
4. Most of the staff and employees are dissatisfied due to low salaries as
compared to same position in other banks.
5. It is also seen that the staff complain about over loaded of work. It is
the reason that turnover ratio of MCB is increasing.
6. MCB has numbers of employees of the period when the MCB was
nationalized bank they cannot perform their duty as like employees in

other banks. They always show rude attitude that is not much
motivating for new customer.
7. There is lack of skills and training of employees. MCB have to gave
attention to improve the skills and abilities of the employees according
to modern banking requirements.
 External Analysis
 Opportunities:
1. MCB bank can capture big portion of the market by expanding their
branches and ATM network to other countries.
2. MCB have to launch some new product or services like tele bank and
internet banking etc.
3. Media is powerful tool of communication.MCB have to use it for
advertisement of new product and severs provided by MCB bank. By
adverting MCB can create more new customers.
4. MCB bank has to start some kind of Social services or for culture
benefit. By doing this it can motivate its customer that you are
contributing in this services by parching and using MCB services.
5. Now the concept of Islamic banking is increasing in Pakistan. There is
opportunities that by creating Islamic branches all over the country and
fallow Islamic structure in those branches. It should also creat Islamic
product for customers
 Threats:
1. In Pakistan the banking sector is growing rapidly and it has attracts the
business men to enter in banking sector. Some foreign banks have

started their business in Pakistan. Now MCB bank has to compete with
great effort by giving superior services.
2. From few years Pakistan is facing a lot of problems like energy crisis,
rising prices of product. Govt. of Pakistan is borrowing money from
State Bank of Pakistan and from commercial banks also and due to
lack of money to give to depositor many banks can cause to bankrupt.
3. Foreign banks are increasing in Pakistan
4. Foreign banks are providing attractive and new services to MCB
customer.
5. Hacking is now a days a new threat for MCB.
 Marketing Strategy
MCB bank is using different kind of marketing Strategies to expand their
business. MCB bank is using marketing mix strategy for promotion. It is a set
of marketing tools which is used to find out the marketing objectives in the
target market.
These tools are classified into four factors named as
1. Product:
MCB bank has started new services and product to satisfy the
customers. Different kind of accounts are offered by the MCB bank to
attract the customers.
 Mahana Khushali Plan :
It is a five year plan in which amount is deposited for five years
and return is given on monthly basis. By this play MCB bank is

targeting those people who want to save their money and want some
return on their investment.
 Capital Growth Certificate plan:
This plan is offered to target those person that deposit their
amount for long period of time. According to this plan your deposited
amount will be double after five year.
 Night - Banking Services:
MCB has started these services on busy commercial centre for
the ease of their customer. Now traders and other client can deposit
their amount in these services centres till 8:00Pm.
There are many other products and services that the MCB bank had
lunched. By providing such kind of products MCB has attracted the
consumers from outside the bank market and core account from
competitors.
2. Price:
It is a critical marketing tool. It represent that what customer have to
pay against services received. It is the only element that creates revenue
for MCB bank. Some time pricing strategy is also used to set the price. In
the start prices were low but after creating the image MCB bank has
raised their charges. There come some objectives in setting the price
some of objectives are Maximization of profit, obtaining market share,
rate of return on investment etc.
3. Place
Place is used in since of distribution channel ,and distribution mean
that from where the seller makes his products available to the
buyers.MCb bank is using to important channels of distribution.

 Bank Branches
 Bank Credit Card
 Bank branches:
Bank branches are the most important channel of distribution for the
bank. Through these branches MCB is easily serving potential customers.
The largest portion of business is being generated from these branches.
The bank has also started Saturday banking in all big cities with ATN
network.
 Bank Credit Cards:
MCB has made the contract with Master Card International and
made the ac cess of the card possible at 11 million outlets all over the
world. Due to use of this card there is rapidly increase in the usage of
banking services.
4. Promotion
MCB bank use this tool for different activities. BY using different
ways MCB is targeting the customers to use their product or services.
MCB Ltd has used this tool to spread information about their services and
product.
MCB bank is using four basic promotional tools for promotion and those
promotion tools are the following.
 Advertising
 Personal selling
 Publicity
 Sales promotion

 Competitive Strategy
After making the mix structure of basic elements of marketing the banks
focus on growth strategies.
Growth strategy is further divided in to four strategies:
 Market Penetration Strategy
 Market Development Strategy
 Product Development Strategy
 Diversification Strategy
1. Market Penetration Strategy
With the help of this strategy the bank management first consider
either it could gain more market share or not with its current products in
their current markets.
2. Market Development Strategy:
In this it considers whether it can find or develop new markets for its
current products.
3. Product Development Strategy:
Then, it considers whether it can develop new products of impending
interest to its current markets.
 Diversification Strategy:
Finally it will review opportunities to develop new products for new
markets.

These strategies have been examined further as follows:
 Market penetration:
By using this strategy MCB bank is increasing its sale with existing
product in the existing market by means of increased and more effective
positioning and targeting, delivery and promotional activities.
Some basic strategies are:
 Selling present services to new customers
 Selling more services to present customers
 Market development:
MCB is using this strategy to increase sale in new markets with
existing products and services.
 Product development
This strategy is used to introduce the new product or services in the
existing market.
 Diversification
It is also growth strategy and it is most difficult growth strategy for
bank. In this strategy the bank focuses on to grow new services and new
markets.
 Business process Analysis

 Business process Analysis
 HORIZONTAL ANALYSIS OF BALANCE SHEET
2014 2013 2012 2011 2010
100% 100% 100% 100% 100%
Assets
Cash Due from Banks 100 90.51 90.06 91.32 89.35
Other Assets Total 100 84.88 61.02 51.86 53.86
Net Loans 100 91.23 90.19 78.35 64.32
Land and
Improvements
100 99.54 99.16 98.59 98.3
Building and
Improvement 100
93.45 91.35 68.91 81.29
Furniture and
Equipment
100 85.46 71.56 62.46 53.17
Gross Fixed Assets 100 97.43 88.86 83.67 93.57
Accumulated
Depreciation (100)
(87.25) (68.96) (56.36) (62.77)
Net Fixed Assets 100 100.24 94.79 92.95 99.59
Intangibles 100 23.67 37.07 25.65 29.85
Goodwill (Cost in
Excess)
100 100 0.00 0.00 0.00
Other Non Current
Assets
100 87.22 38.44 40.18 0.00
Total Assets 100 83.99 82.35 77.09 66.29
Liabilities
Accounts Payable 0.00 345.92 185.35 0.00 17.49
Accrued Expenses 100 88.66 82.53 75.06 65.19
Long Term Debt 100 123.07 67.96 29.24 36.38
Total Debt 100 74.96 168.94 152.48 45.23
Def. Income Tax Lib. 0.00 0.00 0.00 0.00 509.0

Stockholders’ Equity
Common Stock Equity 100 79.99 62.82 53.33 48.48
Retained Earnings 100 95.09 87.79 75.89 65.92
Equity Gains or Losses 100 111.31 109.03 94.52 208.4
Equity Adjustments 100 110.01 110.34 94.26 56.85
Total Equity 100 96.68 89.58 77.12 87.07
Total Liabilities and
Stock Equity
100 89.99 82.0 71.09 66.29
 HORIZONTAL ANALYSIS OF INCOME STATEMENT
2014 2013 2010 2009 2008
100% 100% 100% 100% 100%
Interest Income Bank 100 92.67 81.64 63.91 53.13
Total Interest Expense 100 93.10 81.31 48.22 35.09
Net Interest Income 100 92.24 81.98 79.02 71.68
Loan Loss Provision 100 106.96 126.31 117.65 50.47
Net Interest Income 100 88.59 70.02 69.45 76.93
After Loan Loss
Provision
Non-Operating
Expenses
Non Interest Income
Bank
100 91.88 96.73 84.45 70.57
Minority Interest
Liabilities 100
100.52 22.39 22.74 22.14
Other Liabilities Total 100 75.02 72.21 76.49 63.19
Total Liabilities 100 89.10 80.98 70.29 4.59

Non Interest Expense
Bank
(100) (85.94) (75.56) (62.62) (46.3)
Pre Tax Income 100 94.28 85.00 89.02 108.9
Income Taxes 100 81.88 48.76 89.98 107.6
Non-Recurring Events
Total Net Income 100 100.55 102.19 88.53 109.4
Net Income Available
For Common stock
100 100.55 102.19 88.53 109.4
 VERTICAL ANALYSIS OF BALANCE SHEET
2011
100%
2010
100%
2009
100%
2008
100%
2007
100%
Assets
Cash Due from Banks 13.86 14.10 15.37 17.83 17.42
Other Assets Total 30.96 30.58 23.94 22.16 26.07
Net Loans 45.68 46.12 50.24 50.36 44.56
Land and Improvements 1.47 1.63 1.77 2.03 2.69
Building and Improvements 0.004 0.0048 0.049 0.0053 0.0054
Furniture and Equipment 0.008 0.0083 0.0075 0.0074 0.0067
Gross Fixed Assets 2.77 2.96 3.01 3.31 3.9
Accumulated Depreciation (0.006) (0.0055) (0.0051) (0.0048) (0.0057)
Net Fixed Assets 2.16 2.41 2.5 2.83 3.33
Intangibles 0.00006 0.000018 0.000031 0.000025 0.000031
Goodwill (Cost in Excess) 0.0004 0.000054 0.00 0.00 0.00
Other Non Current Assets 0.0069 0.0066 0.0032 0.0039 0.00
Total Assets 100 100 100 100 100
Liabilities
Accounts Payable 0.00 0.0003 0.00019 0.00 0.00002
Accrued Expenses 0.0097 0.0096 0.0098 1.03 0.0096

Long Term Debt 0.00008 0.00012 0.00004 0.00003 0.00004
Total Debt 2.31 1.93 4.77 4.96 1.58
Def. Income Tax Lib. 0.00 0.00 0.00 0.00 0.0066
Minority Interest Liabilities 0.0004 0.00047 0.00012 0.00014 0.00014
Other Liabilities Total 2.45 2.04 2.16 2.57 2.33
Total Liabilities 88.27 87.39 87.17 87.27 84.59
Stockholders’ Equity
Common Stock Equity 1.46 1.29 1.13 1.09 1.06
Retained Earnings 7.72 8.16 8.26 8.2 7.68
Equity Unrealized 1.95 2.42 2.62 2.6 6.15
Equity Adjustments 0.0059 0.0072 0.0079 0.0078 0.0050
Total Equity 11.73 12.6 12.82 12.72 15.4
Total Liabilities and Stock
Equity
100 100 100 100 100
 VERTICAL ANALYSIS OF INCOME STATEMENT
2014
100%
2013
100%
2012
100%
2011
100%
2010
100%
Interest Income Bank 540.26 498.94 431.61 389.97 262.16
Total Interest Expense (273.92) (253.63) (217.93) (152.27) (87.79)
Net Interest Income 266.32 244.32 213.67 237.7 174.36
Loan Loss Provision (52.83) (56.20) (65.30) (70.21) (24.35)
Net Interest Income 213.50 188.12 148.37 167.49 150.01
after Loan Loss Provision
Non-Operating Expenses
Non Interest Income
Bank
111.53 101.92 105.57 106.39 71.89
Non Interest Exp. Bank (177.58) (151.77) (131.30) (125.62) (75.19)

Pre Tax Income 147.45 138.25 122.64 148.26 146.70
Income Taxes (47.46) (38.65) (22.65) (48.24) (46.64)
Minority Interest 0.000001
5
0.0039 0.000098 (0.00019
)
(0.00061)
Non-Recurring Events
Total Net Income 100 100 100 100 100
Net Income Available
For Common Stock
Holder
100 100 100 100 100
Details plan of my internship program
 Introduction of branch:
I have done my six weeks internship from MCB bank limited (1657)
D.C office Bahawalpur under the branch manager Mr. Adnan Azam. This is a
online branch of MCB bank and this branch is doing good business. The question
comes is how? Reasons behind this are firstly, when the branch manager joins
this branch he brings some account with him. Secondly, this branch is on exact
location on the main road and different are around it. Thirdly, the Staff of this
branch is much cooperated they work like a time that’s why the working of
management is very smooth and efficient. Finally, this branch have very good
contact and the relation with the shops business entities and the other sound
parties as well to increase the deposit of the branch and maintain the efficiency
of the work and enhance the organization.
The branch manager Adnan Azam introduced me with staff members and
guided me about different functions being operated within the organization.

 Starting and the ending dates of my internship
Starting and the ending dates of my internship program in the MCB bank limited
(1657) D.C office Bahawalpur.
Starting Date: August 24, 2014
Ending Date: October 06, 2014
 Names of the departments where I have worked during my internship
duration
1. Account opening department
2. Clearing department
3. DHA Reconciliation
1. Account Opening Department
I have worked one week in account opening department. It is the most
important department of any branch of any bank because all the working of the
bank is based on the account. It is the first step between the customer and
banks. I opened new accounts some for new customers and some for old
customers because they want to operate more than one account.
There are different types of accounts in MCB bank limited which are offered to its
customers. Different accounts has different benefits different charges different
minimum balance requirement and different purposes.
There are three types of account.
1. Current account
2. Saving account

 Current Account:
MCB Bank offers a variety of current accounts to provide to the
everyday transactional needs of various customers. These accounts ensure ease
and freedom to bank from any of the 1100+ branches across the country.
The different accounts include:
i. Normal Current Account that has 10,000 rupees minimum balance
requirement.
ii. Business Account that has 50,000 rupees minimum balance
requirement. It is offering free online transactions, Demand Drafts, Pay
Orders and lots more to meet the day to day business requirements
iii. Current Life Account which offers the security of life insurance free of
cost and for all others, the conventional Current Account.
Note: If the balance goes down from the minimum balance required then the
bank will be charged Rs.50 as per mint.
 Saving Account:
MCB Bank offers a wide array of savings products that suit short term
growth & transactional needs. Our savings accounts offer attractive profit rates
as well as flexibility to transact.
i. PLS Saving Account has no minimum balance requirement and it offer
profit rate on semi annually balance.
ii. Xtra Saving Account is targeted for customers having Rs. 5 million +
deposit and it offer profit rate on quarterly balance.
iii. 365 Gold Account offers profit rate on daily balance

In addition, two unique products: Smart Savings and Savings Maximizer are
special saving accounts run solely via debit cards and other remote banking
channels, offering a very competitive rate to both high and low end savers.
 Term Deposit Account:
MCB Term Deposit offer attractive short to mid-term investment options
with flexibility, convenience and security. With various tenor options available,
customers can choose 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.
To open term deposit account the minimum balance requirement is one lack
rupees. Term deposit account can be opened for one month, three month, six
month, one year, three year, and five year. The account will be closed after the
term then new account will be open on the demand of customer.
MCB bank limited is offering some other types of account these are mention
below.
 Basic Banking Account:
MCB bank is offering these services to those people who have low
income without any charges. No Zakat is deducted from their balance and there
is no profit no loss on this account.
 Khushali Bachat Account:
It offer profit rate on semi annually balance.
For opening of new accounts there are required some documents

For individual account
 Account opening form
 Attested photocopy of computerize National Identity Card or Passport of
individual.
 In case of salaried person, attested copy of his or her service card or any
other acceptable evidence of service, including, but not limited to a
certificate from employer.
 If the person has his or her own business then the letter pad copy is
needed.
 In case of illiterate person, two receipt passport size photographs of the
new account holder besides taking his right and thumb impression on the
specimen signature card.
For Joint Stock Companies Account
Certified copies of
 Resolution of board of directors for opening of account specifying the
person or person’s authorized to operate the company account.
 Memorandum and Article of Association
 Certificate of incorporation
 Certificate of commencement of business
 Attested photo of Computerized National Identity Card of all Directors.
 List of Directors in from-29 issued for the Register Joint Stock Companies.
For Partnership Account
 Attested photocopy of computerize National Identity Card

 Attested copy of “ Partnership Deed” or “letter of Partnership”
 Attested copy of Registration Certificate with Registrar of the firm. In case
of Partnership is unregistered, this fact should be clearly mentioned on the
Customer Relationship form.
 Authority Letter in original, in favor of the person or other person who is
authorized by the partners.
Account Opening Form is filled and necessary documents are attached with this
Form and are sent to main Branch. After verification the main branch send mail
of verification then the new is activated.
2. Clearing department
I have worked two weeks (2nd
ad 3th ) in clearing department. I learned
the functions and work which are performed by this department. This is the
important department of any bank.
General banking officer (GBO) Miss Mareeha Yasmeen taught me about
clearing. He told me that it is a process in which the banker settle their mutual
account by claiming the arising account of various instruments presented by one
bank drawn on the other bank either the bank is in the same city or out of city.
Suppose an NBP account-holder gives a crosscheck for MCB. Similarly, MCB
account-holders give check to people having accounts in other banks; these all
banks need to clear their overall balances with each other. The clearing
department does this.
NBP Bank
Clearing checks
X
Cross check
Y MCB Deposited
MCB
Account-holder
NBP
Account-holder

In clearing we deal with the cheques of other banks or other branches of
MCB. The clearing is done with the help of NIFT (National Institutional Facilitation
Technologies). It is the institute which the state bank has hired for the collection
of clearing cheques of each branch and it plays middle man role between each
branch with State Bank of Pakistan.
He told me that clearing are of two types
 Outward clearing
 Inward clearing
 Outward clearing
Out ward clearing is that the settle of claims of our branch of MCB bank
but drawn on other branches of MCB or on other banks .These cheques are
deposited by our customer in our MCB branch and then our MCB bank branch
present it in out ward clearing.
GPO told me that there are three types of out ward clearing.
i. Normal clearing
ii. Someday clearing
iii. Intercity clearing
Before starting clearing GBO gave me the first task to record the detail of
cheques in the cheque Collection ( CC ) ledger. The detail includes pay account
number, cheque number, cheque amount, bank name of which the cheque is.
And I wrote the all amount of all cheques on Add list and add it. Two copies were
made one original and second carbon copy. I attached add list and all the bank
copy of deposit slip which were filled from customer in the CC ledger. GBO
appreciated me that your calculation is good. The same task is done either it is
Normal, Same day, or intercity clearing.

These are the following detail are required in Clearing Register.
1. Serial No.
2. Account no. of the depositor
3. Depositor name
4. Drawer
5. Drawee
6. Cheque No.
7. Amount of the cheque
 Normal clearing
Normal clearing is made at afternoon which would be present on next
day.Two stamps are stamped one on front of clearing date stamp and one on
back manager stamp that payee account will be credited with signature. It
deals with in city. Time limit of this type of clearing is two days. Return on paid
charges are Rs.300 which are deducted from the depositor account is case of
retire of cheque.
 Same day clearing
Same day is made initial working hours and are presented on the
same day. Three stamps are stamped on back of the cheque and one on
front of the cheque. On front side, one stamp of Same day clearing and
second stamp of clearing date on which cheque has to present. On back side,
manger stamp that payee account will be credited, and manager signature
also. Its charges are Rs.350 only charges that are deducted from the account
of holder account.

 Intercity clearing
Where there is State Bank of Pakistan then the clearing is done by
NIFT and if not then another institute is worked so CC ( cheque collection ) is
made. Three stamps are stamped two on front side and one on back side.
On front side one stamp of intercity clearing and other is clearing date on
which it has to present. On back side manager stamp that payee account will
be credited and manger signature also.
In paid charges are 400+64posting charges
In case of normal clearing, detail information is recorded the detail in ledger. A
clearing schedule slip is arranged with the branch code stamp, total amount and
number of instruments and add list is also attached with clearing schedule slip
then a plastic seal number is required which is written on the seal.
After matching the detail of clearing Register with clearing schedule slip all
the instruments, add list, outline page are putted in an envelope and packed in
NIFT bag and that NIFT bag is closed with that plastic seal. This is to ensure
additional safety. When the seal is opened then the bank will not receive that
bag., If the seal number on the bag and on the bundle cover does not match in
this case it is a suggestion that some sort of changes has been made the strict
action are taken by NIFT and the Bank consequently.
The procedure is same for same day clearing and intercity clearing.
 Inward clearing
In inward clearing other banks or other branches of MCB also settle their
account by claiming the instruments which are drawn by the other bank

customers or other branches of MCB bank. This is inward clearing other banks
sent instrument to our branch which are drawn on us.
There are few things which are included in inward clearing.
a. The cheques should be cross cheques or there should be cross stamp on
face side of the cheque.
b. Clearing stamp on the back side of the instruments.
c. The clearing stamp dated should be of the next working day
d. Manger stamp that Payees account is credited on the back of the
instruments and signature on the stamp
e. The signature is to be verified before entering into computer and then the
cheque is posted and drafted.
3. Remittance Department
I have worked two weeks (4th
and 5th
) In Remittance Department. We
deal with different functions and different instruments in this department.
Those instruments and function are:
1. Demand Draft (DD)
2. Pay order ( PO)
3. Online transfer or internal transfer
4. Call Deposit Receipt (CDR)
5. Deposit slip
1. Banker’s Cheque
Demand draft is like an instrument and is issued on the demand of the
customer.DD has abominate the extra burden of the currency. It is payable on

the demand when the customer want it. It is issued by the one branch of the bank
and is payable by another branch of the same bank.
Information required for DD
 Beneficiary Details
 Beneficiary Name
 Bank or Branch Name and address
 Purpose of remittance
2. Online Transfer
The amount can be transfer from one account to another account either
the account is of that branch or any branch of MCB in any city.
If the amount is being transferred through cheque then online charges are
Commission Rs.200
Excise duty Rs.32
Total charges Rs.232
If the amount is being transferred through Cash then the charges are different. If
the amount is less than Rs. 25000 then
Commission Rs.300
Excise duty Rs.48
Total Charges Rs. 348
If amount exceed from Rs.25000 then the taxes is also applied due to this total
charges also changed.
Information required for online

 Beneficiary Details
 Beneficiary Name
 Bank or Branch Name and address
 Purpose of remittance
 Applicant Detail
 Name or Title off account
 Account number
 CNIC or Passport No.(for Non Account Holder)
 Signature of Applicant
3. Call Deposit Receipt (CDR)
It is highly liquefied instrument which can be cashed at any time on the
demand of customer. it is used for tender purpose.CDR show that the specific
mentioned account is present in between customer and other party with which
deal is being done. In this case issue and paying branch is same.
4. Deposit Slip
There are two copies of deposit slip one is for bank use and other for
customer use. We fill deposit slip in case of cash deposit in account holder
account and when any cheques come in the branch.
This was the worked that I had learned from MCB bank limited. I have used great
effort to learn about banking sector hoped that this effort will provide me
opportunities. It is great edge for me in the job market. It gave a lot of confidence
that to deal the customers. It will create positive impact on my future.

REFFERENCES
 http://www.mcb.com.pk/mcb/about_mcb.asp
 http://www.mcb.com.pk/psc/accounts/basic_account.asp
 http://www.mcb.com.pk/mcb/our_values.asp
 http://www.mcb.com.pk/mcb/awards_accolades.asp
 Annual Report 2014 of MCB bank limitd

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