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ON
AUTHOR
MASTER OF COMMERCE
SESSION 2008 – 2009
ACKNOWLEDGEMENT
The report is being made for the fulfillment of course the course No: 600 Business
Internship Report of M.Com (Final).
The Business Internship is prepared on “MCB’s performance in competitive banking
sector & its products & services at MCB Pakistani Chowk Branch Larkana.”
I would like to thank the following people at MCB Pakistani Chowk Branch who
provided me help to learn as much as possible during a short span of time.
Mr. Nazeer Ahmed Shaikh (Branch Manager)
Mr. Aamir Ali Mangi (Operation Manager)
The Business Internship Report is prepared under the supervision of “Professor Dr.
GHULAM MURTAZA MAITLO” Chairman Department of Commerce, Shah Abdul
Latif University Khairpur, Mir’s.
I would like to extend my gratitude’s to my teacher for his advice, encouragement
and valuable suggestions which made it possible for me to complete my Business
Internship Report.
The purpose of research work is to analyze the organization and the performance of
MCB Ltd. since 2008-09. This Business Internship Report is prepared on “MCB’s
performance in competitive banking sector & its products & services”. The Business
Internship Report contains Executive Summary, Introduction, History of MCB Ltd,
Product & Services of MCB.
During the Internship, I worked in various operations as general banking including
cash operation, clearing remittances, ATM, account opening procedure and
advances. The bank will have to work hard and to meet the challenges of
competition and to satisfy the customer to accelerate the business.
In this report primary and secondary data is used. In primary data the information is
collected by getting briefings from Branch Manager and from the Operation Manager
and in secondary data published literature of MCB and the electronic data on MCB’s
website.
TABLE OF CONTENTS
TOPICS PAGE #:
Acknowledgement I
Abstract II
Table of Contents III
Executive Summary 01
About MCB 01
Our Vision and Mission 02
Vision Statement 02
Mission Statement 02
Introduction 03
Achievements 03
Company History 03
Main Departments and Their Jobs 04
General Banking 04
• Remittance 04
• Pay Order 04
• Demand Draft 04
• Mail Transfer 05
• Telegraph Transfer 05
• Payment of Pay Order and Demand Draft 05
• Cancellation of Pay Order and Demand Draft 05
• Vouchers 05
• Inward Clearing 06
• Outward Clearing 06
• Token 06
• Issuance of Cheque Books 06
• Issuance of ATM Cards 07
• Cancellation of ATM Cards 07
• Sale of RTC 07
• Short Notice Term Deposits 08
• Amount, Rate, Number of Days / 365 Days 08
• Call Deposits 08
Foreign Exchange 08
• LC’S Establishment 08
• Payment or Retirement 08
EXECUTIVE SUMMARY
ABOUT MCB
MCB (Formerly Muslim Commercial Bank Ltd.) is the largest private sector bank in
Pakistan. The Adamjee group incorporated in 1948. It proposed during the 1950’s
and 60’s. In 1975 it was nationalized with all other private sector bank. Then 1991 it
was privatized. Since the bank has been headway in improving of technology. In the
year 2006 bank name was changed to MCB Limited. The bank is now included as
one of the top most bank of the nation.
MCB has been awarded as a Euromoney Award 2008 for the "Best Bank in Asia"
The Chairman of MCB is Mian Mohammad Mansha and the President / CEO is Mr.
Atif Aslam Bajwa. MCB is one of the leading banks of Pakistan with a deposit base of
about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947,
MCB soon earned the reputation of a solid and conservative financial institution
managed by expatriate executives. In 1974, MCB was nationalized along with all
other private sector banks. The Bank has a customer base of approximately 4 million
and a nationwide distribution network of 1,026 branches, including 8 Islamic banking
branches, and over 300 ATMs, in a market with a population of 60 million. 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.
I have learnt a lot in Pakistani Chowk Branch about Opening of Accounts, Clearing
and Transferring of Cheques, Issuing the Cheques Books, Demand Drafts other
Documents etc. The exposure has given me a lot of knowledge especially about
consumer banking operations in branch. Bank was previously working on MIB’s
software. In the year 2004 bank introduced new latest software “SYMBOL”. Now
most of the branches located in Karachi, Lahore and Islamabad regions are working
on SYMBOL software. MCB is the leading entity of the country that has always been
at the forefront of economical, technological, financial growth and stability.
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OUR VISION & 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”
VISION STATEMENT
To be the leading financial services provider, partnering with our customers for a
more prosperous and secure future.
MISSION STATEMENT
INTRODUCTION
Banking industry is one of the fasting growing industries of the last decade. We have
seen many ups and downs in the banking industry. This is the requirement of Shah
Abdul Latif University to do Eight Weeks Internship in any organization to gain
practical exposure of the theoretical aspects studied in the semesters.
MCB is one of the leading banks of Pakistan with a market share of 12.5%. It is also
the pioneer in innovative consumer banking in Pakistan. It is the largest private
sector bank in Pakistan. It is the most preferred provider of quality financial services
and is usually considered the best place to work. It has developed a large stable
deposit base. The bank today boasts of largest online branch and ATM network in
the country.
ACHIEVEMENTS
MCB is the only bank in Pakistan that has achieved 7 Euro Money Awards and 5
Asia Money Awards for being “The Best Domestic Commercial Bank in Pakistan”,
along with several other Awards including the Best Trade Finance of Pakistan for two
consecutive years. These accolades are the proof of our consistent effort in providing
the customers with utmost care and quality.
COMPANY HISTORY
Muslim Commercial Bank Limited. (MCB), the largest private sector bank in
Pakistan. Incorporated in 1948 by the Adamjee group, MCB soon earned a
reputation of solid and conservative financial institution. During the 1960s the bank
grew rapidly with a concentration on trade finance products. In 1947, MCB was
nationalizes along all other private sector banks. MCB was the first bank to be
privatized in 1991 during the Nawaz Sharif’s government financial sector
deregulation policies. During the first five years, the private management
concentrated on growth utilizing its extensive network of branches and developed a
large and stable deposit base. Since privatization, the bank has made tremendous
headway in improving the operational efficiency through human resource
development and employment of technology. The bank today boasts the target
online brand and ATM network in the country.
MCB’s main focus remains on consumer banking and its growing reputation as a full
service provider gives the bank an edge in front of increased competition in the
banking sector in Pakistan. With a network of over 1200 branches and a team of
dedicated professionals, MCB with an international outlook and a regional focus
ensures prompt customer service and innovative solutions to business and personal
needs.
GENERAL BANKING
FOREIGN EXCHANGE
ADVANCES/CREDIT
GENERAL BANKING
REMITTANCE
PAY ORDER
Pay order is the property of person/company that has to take the benefit of the
amount being pay ordered by the concerned person. Pay orders are made for the
payment of fees, tender or issued for the payments of dealings. These are required
for the proof of payments made between the bank and the customer in the favor of
beneficiary. These are noted in printed block letters and yearly serial numbers are
issued from computerized system.
DEMAND DRAFT
Demand drafts are made for the beneficiary for payments, funds etc, these are made
for outstation branches of the concerned banks. An advice is also made for the
confirmation of the draft send. These are also approved and safe way of sending
amount to the beneficiary.
These are also noted by computerized system and a serial number is issued from
the computer system.
Mail Transfer is made with in the city for transfer of amount. An advice is also made
for the confirmation of the draft send. These are also approved and safe way of
sending amount to the beneficiary. These are also noted by computerized system
and a serial number is issued from the computer system.
TELEGRAPHIC TRANSFER
Telegraph Transfer is telegram message for transferring the amount from one branch
to other branch. A message advice and a confirmation advice both are made with TT
numbers that are issued for TEST. TEST depends on two steps:
1. First TEST is on Day, Date and Code Number of branch.
2. Second TEST is on Currency, whether Pak rupees or foreign currency, amount
and TT number issued from manual registers and confirmed from computerized
system.
Pay-Order and Demand Draft both could be paid in shape of physical payment of
cash and in case transfer of amounts; the amount could be transferred in the
beneficiary account. In case of physical payment authorized signature of beneficiary
are taken for the proof of amount being paid to him and in case of transferring of
amount authorized signature of the beneficiary are checked and verified for reducing
risks.
VOUCHERS
Vouchers are made for records and they should be completed in all respects, the
amount, date, its head, particulars, amount in words, authorized signatures and
contra advice or voucher should be present. Vouchers are advice either debit or
credit slips. They are contra of each other. If any voucher of debit is passed its contra
credit voucher should also be passed for the balancing of accounts, their respective
sheets.
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INWARD CLEARING
It depends on those checks that are cleared inter branch and with in the city. As the
concerned branch receive any type of clearing check first of all physical checking is
taken place. For clearing procedure there should be two days margin. These
cheques have their vouchers and the amount of the cheque and voucher should be
identical. Than these cheques are stamped and noted on receiving sheet as well as
feed in to the computerized system.
OUTWARD CLEANING
It depends on those cheques that are cleared out side the city. For outward clearing
cheques are send because the home branch has there accounts but checks are of
other banks. Contras of these cheques are vouchers that are recordrd in the home
branch.
TOKEN
Any account holder that has opened the account he/she could credit his/her account
and for this purpose there should be a cheque book, so he/she could be able to
credit the needed amount whatever he/she wishes. For the issuance of the cheque
book a person is advised to fill a requisite slip with his/her full names and the
account number with two verified signatures. These signatures are checked and then
another requisite slip prepared by the bank staff send to the NIFT, and it issues the
printed cheque books after completion of the procedure in two or three days.
Head office issues ATM (Auto Teller Machine) cards with their PIN (Personal
Identification Number) codes and when the customer claims for their ATM card they
are checked from the list that is also issued from the head office, and the claim is
checked from the list and if the name is found than the cards are issued by taking a
signature and their PIN codes are given to them by taking signatures on their ATM
card forms. The ATM card has been activated by the number provided at or with the
specific card.
SALE OF RTC
The selling of the RTC has been described in step wise as follow:
In this step the bank initially seeks the information whether the person is going to
purchase the RTCs on cash or on account basis. If the transaction is based on
account then initially the cheque has been cleared than if the amount is sufficient
than RTC has been issued after deducting after the amount from the account.
If the amount of RTC is more than Rs. 25000 than tax has levied by 0.3% in case of
absence of the tax deduction form. After this the bank handed over a form for RTC
sale dully filled by the concerned person and after this RTC number has been noted
on the form as well as their amount and quantity. After this we note down the sold
RTC in the concerned register. MCB Pak rupee travelers cheques the fastest way to
carry cash for high value cash transactions. MCB rupee travelers, the market leader
in the rupee travelers cheque market in Pakistan is celebrating nine years of
leadership in July 2002. Launched in July 1993, MCB RTCs have been preferred
choice of the rupee travelers cheques target market. With over 1.5 million satisfied
customers in five years, MCB has been striving hard to package their product better
and better each year.
There are short times either for seven days or for thirty days and the profit is
calculated by the given percentage from the head office at the payment time. If the
customer fails to complete the duration of seven days or thirty days then no profit is
given. If any amount is outstanding, only in case of automatic continuity, then the
profit is calculated for the whole period by the rate given from the head office
multiplying from the numbers of days divided by the 365 for the one-day profit.
Profit is calculated for the six months only for outstanding SND. Zakat is also
deducted but if Zakat deduction form is submitted to the bank, no Zakat will be
deducted then, 10% with holding tax is also deducted from the profit to calculate net
profit.
CALL DEPOSIT
It is highly liquid instrument, it can be cashed at any time when needed. This
instrument bears no profit on it. It is mostly used for the purpose of tenders.
FOREIGN EXCHANGE
LC’S ESTABLISHMENT
Any company can provide its documents containing e-form, bill of lading, short
shipment notice in case of short shipment, packaging list etc. the information
provided from the documents is recorded in the LC establishment portion or section
in the computer.
PAYMENT OR RETIREMENT
When the transactions have been completed then approved documents from the
concerned bank are sent to the home bank for the payment or retirement of the LC.
These transactions have recorded in the payment or retirement section of the
computer.
FOREIGN CURRENCY DEPOSITS
The Foreign Currency Deposit relates with the foreign currency accounts, cash
deposit or credit and foreign remittances.
In this we received the messages through SWIFT for foreign remittances, which we
record in their respective accounts, if these are relates with Pak rupees than it was
transferred in Pak rupees with the latest rate and if this relates to the foreign
currency than it is dealt with accordingly. The amount has been credited to the
respective account and the head office has been debited against it. After crediting
the amount to the respective account. All the subsequent entries have been made in
the registers and also in the computer record as the system now have been
upgraded on computers. As we are reporting daily to the head office, so an annexure
has been maintained and faxed to the head office.
ADVANCES / CREDIT
This department deals with the approval of different kinds of loans to different
business entities. The loans, which are being approved by the department, are kept
with some securities such as bonds, properties and any other type of asset, which is
equally valuable or more than this as a guarantee. Every branch has its own limit, if
the amount of loans is with in the limit of the branch then it is being approved by the
branch but if the amount of loan is exceeding the limit then it has to make it approved
by the head office. In this case the branch stored all the required papers and sent
them to the head office for necessary action. If the head office approved the loan
then mostly the period contains a year. And if the party requires more loan than after
a year the loan has been re-approved required that they should have the limit. In
case if the head office do not approve the loans then the return letter came back with
the reasons of not approval of loan and if the reasons have been made approved by
the concerned party then it could be sent again for approval. This whole process is
recorded in the back remain with the bank until the party has not refunded all the
amount of loan and bank has the authority to liquidate those assets for preventing it
from loss.
In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30,
issued on 29th November 2005, the Basic Banking Account has been launched with
effect from 27th February 2006. This product has been introduced to facilitate the low
income group as well as the existing account holders who wish to convert their
regular savings or current account into Basic Banking Account.
The Basic Banking Account is a current account and can be opened with a minimum
initial deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit
transactions (each cash or through clearing) and 2 withdrawals (cash or clearing)
each month. All customer-initiated transactions over and above this limit will be
charged a transaction fee. However unlimited free charge cash withdrawals are
allowed through MCB’s own ATM’s.
SAVING ACCOUNT
MCB’s Foreign Currency Savings Account offers you attractive returns on your
foreign currency investment. Unlimited transaction facility, profit credited to your
account on a half yearly basis. You can avail a credit facility up to 75% of the total
deposits value. A foreign currency account can be opened at any of our foreign
exchange dealing branches.
MCB Rupee Maximizer Account provides you an opportunity to convert your the
recent changes in the economic scenario MCB launched the Rupee Maximizer
Account exclusively for its Foreign Currency Account Holders. MCB Foreign
Currency Account holders now have an opportunity to convert their Foreign Currency
Account balances into Pak Rupees and earn a profit at the rate of 12.6% per annum.
Other features include profits calculated on a daily product basis, no restrictions on
the number of the withdrawals, no minimum deposit required. Special benefits
include one free ATM card and locker facility free of cost. MCB Rupee Maximizer
Account is being advertised in leading daily newspaper as well as local papers.
Foreign Currency Account into Pak Rupee and earn profit at the rate of 12.6% per
annum.
CURRENT ACCOUNT
MCB’s Foreign Currency Current Account offers you the convenience of unlimited
withdrawals i.e. access to your funds whenever you want without any notice. There
is no limit on the number of transactions you make in a day.
Open a Khushali Bachat or Dollar Khushali Account, both require low minimum
income deposits plus you receive profit on daily product basis. Get a saving with
current account facilities through saving 365 or double your investment through
capital growth and receive monthly profits through monthly Khushali.
Keeping in view the small savers, looking for higher returns on their savings, MCB
introduces the Enhanced Saving Account (ESA). This account can be operated via
all the channels available at the MCB such as Cheques, Virtual Banking, Mobile
Banking, MCB Smart Card and ATMs/Point of sales all across Pakistan. MCB ESA,
governed under PLS rules, can be opened with a minimum initial deposit of Rs. 5000
and the profit shall be calculated on an average basis maintained by the customer
during that month.
Pay your bills 24 hours a day, a day, 7 days, and a week. Make total payments of up
to Rs. 20,000 per day. Carry out up to 10 transactions per day per card. Make either
full or partial payments. Full payment is required for PTCL only. Recharge your pre-
paid account for Mobilink, Ufone and Telenor as per their fixed slabs. Pay as a
registered or non-registered user. Registration will help you avoid the time delay in
entering details each time you carry out a transaction.
Pay with MCB ATM
Pay through MCB Virtual
Pay through MCB Call Centre
INVESTMENT BANKING
Easiest and safest way to remit funds, remittance within 24 to 74 hours, personal
delivery to the beneficiary, delivery confirmation to the remitter, message facilities for
both parties. Your beneficiary will receive the amount even if he/she does not have
an MCB account.
PERSONAL LOAN
“The more you praise and celebrate your life, the more there is in life to celebrate”
MCB personal loan shortens the distance between your dreams and your
celebrations. It is fast, flexible and affordable, speedy loan approval. No guarantor /
security / collateral required. Borrow up to Rs. 1,000,000. 1 to 5 year tenures, partial
and full adjustments allowed anytime during the tenure, optional insurance, equal
monthly installments, lower interest rates, higher loan limits, loan amount renewed
anytime after nine months. You as an individual can gain and benefit the through
MCB consumer banking. In MCB you get friendly, efficient and attentive personalized
banking services, a unique banking relationship experienced by each MCB client.
ON-LINE
The largest network of over 315 on-line branches in the country and growing.
Providing customers with 24 * 7 real time on-line transaction facilities.
365
A deposit account for customers with substantial balances, offering profit on a daily
product basis with the facility of unlimited withdrawals.
The best protection for your valuables. Lockers of different capacities are available
nationwide.
MCB CARDS
CIRRUS
MCB Smart Card and ATM card holders can avail cash withdrawal facility at over
900,000 ATMS worldwide.
MAESTRO
MCB Smart Card and ATM card holders enjoy the convenience of shopping at over 5
million POS locations globally.
Call now for answers to your queries about banking services. ATM services, mobile
banking services, RTC services, tele-banking services and MCB product information.
Banking at your fingerprints. Dial in anytime to get information regarding balance and
mini statements.
The nation’s largest network of over 210 ATMs and growing. Get 24-hour
convenience of cash withdrawal, mini-statement, bill payment and funds transfer
services.
MNET
MCB Easy Bill Pay is an easy solution to pay Utility and Mobile
Phone bills. MCB ATM Card or MCB Smart Card holders can easy
pay their bills through MCB ATMs, MCB Virtual-Internet Banking and MCB Call
Centre with security and peace of mind.
CORPORATE FINANCING
Get a loan instantly at any MCB branch. Offering same day financing facility against
liquid collateral at competitive pricing.
The most widely accepted way to pay cash for travel-related purposes. A safe and
secure way to make payments nationwide.
MCB Pyara Ghar is an ideal Home Finance product that lets you
purchase, renovate or construct your home the way you have
always wanted. Financing available is up to Rs. 20 million.
MCB CAR4U
MCB CAR4U Auto Finance is your move that gets you not only a car
of your own choice but leads you to the best in life. It is affordable
with competitive mark-up, flexible conditions, easy processing and
above all, no hidden costs.
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CONCLUSION
RECOMMENDATIONS
1. Training can be provided with job rotations so each of the employees is capable
of doing others work in case of emergency, this will ensure no delays are met.
2. As MCB earning a lot of profit stock options should be given to every employee.
3. Workers need more computer training.
4. MCB need to invest more in technology and bring all banking procedures up-to-
date.
5. They should implement advance technology and make it one window shopping or
one window service where each teller is capable of handling every transaction for
example payments, deposits, transfers, bill payments, foreign exchange, ATM
card issue and opening of new account. This will make MCB more proficient in
customer service.
6. ATM network needs to be updated more to handle transfers, deposits, bill
payments and print statements. This will free up a lot staff time.
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BIBLIOGRAPHY
1. News Letters
2. Magazines of MCB
3. Annual Report of MCB 2008
4. Website: www.mcb.com.pk
5. Review of President of MCB 2004 Page No: 08 to 12
6. Personal interview with Nazeer Ahmed Shaikh (Branch Manager)
7. Personal interview with Aamir Ali Mangi (Operation Manager)
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COPY RIGHT
Attention is drawn to the fact that the copy right of this report rests with author. This
copy of report has been supplied on condition that any one who consults it is the
understood to recognize that its copy right with its author and no information derived
from it may be published without the prior written consent author.
This report contains material, which is the property of the MCB Limited, Karachi and
is clearly marked as such. Although they have given me their kind permission for its
reproduction. This material remains protected under their copy right.
This report may be made available for consultation within University / Department of
Commerce library and may be published on or lent to other libraries for the purpose
of consultation.
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