INTERNSHIP REPORT

ON
MUSLIM COMMERICAL BANK LTD.

Internsip Report submitted to the Faculty of Management &
Administrative Sciences in partial fullfilment of the Requirement For the
Degree of Masters of Accountency
BY:
Haseeb waheed
Roll No: 12032720-080
Program: Masters of commerce and accountency
Session: (2012-2014)
UNIVERSITY OF GUJ RAT

Date of Submission
Name of Prog. ________________ ____________

Signature of Program Coordinator_____________









2. Acknowledgment


The guidance, the helping hand, the support, the inspiration of all those who
have helped me in completion of this report cant be compared to anything; perhaps
thats the reason why I treasure them, the most.
I would like to take this opportunity to thank my Supervisor at the organization
Mr. M. hamza, the MCB gujrarat branch, who provided continuous guidance and
support during my summer internship programmed. I would also like to thank everyone
at MCB branch team for helping me in every possible way and making my internship a
wonderful experience in practical.



















3: table of content


.5.1. Introduction: 1.
5.2 overview of the organization 1.
5.2.1 brief history : 1.
5.2.2 nature of business: 2.
5.2.3 business vloume and Rewards: 2.
5.2.5 product and services: 6.
5.2.6 contribution of organization : 11.
5.3 Organization Structure: 12.
5.3.1 hierechy chart 12.
5.3.2 Number of employees: 13.
5.3.3main offices 13.
5.3.4 Departmental Description: 14.
5.3.5 Comments of organization structure16.
PART II
5,41 Internee office 17
5,4.2 detail of Supervisor 17.
5.4.3 Weekly timetable 17.
5.4.4 Department description work : 17.
5.4.5 task work 18.
5.4.6 Summary of Learning 31.
5.4.6.1 skills and learning 31.
5.4.6.2 responsibilities undertake: 33.
5.4.6.3. toward career goal 34.
5.4.6..4internship vs. class room 34.


6.1. Summary 35.
6.2 General observation 37.
6.3 SWOT: 38.
7 Recommendations 40.
8. References 43.




























4. Executive summary
Every student of Master in Commerce at Department of commerce and
Accountancy University of Gujarat has an essential requirement to do internship in any
of the well reputed organization. The internship program helps the students to increase
their potential and gives exposure to the market and to apply what we have so far
learnt. Student can learn more through internship program to enhance their working
abilities to compete in the market; assume responsibilities; cooperation; team work and
hallmarks of modern management.
I am a student of Masters in Public Administration and I got a chance to join the
MCB Pvt. Limited to perform my internship. During the internship program, I learned
about the working of the stock market and the basic functions professionally.
This report is about my internship, which started from August-2013 to
September-2013. During my internship, I was proficient to learn practical aspects of
business environment and get good working experience with a team of skilled
professionals. I worked in different department of MCB, GENERAL BANKING

It is backbone of banking It is one of the major department of MCB. It consist of
following departments:

Accounts Department
Current Department
Remittance Department
Cash Department


The banking structure in Pakistan comprises of the following types, State Bank of
Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative
banks, Specialized credit institutions. The state bank of Pakistan is the Central bank of
the country and was established on July 01, 1948. The network of bank branches now
covers a very large segment of national economy. The State Bank of Pakistan issues
the shares of these periodically. Bank employees and other common peoples can also

purchase these shares and earn profit. In 1956, MCB transferred its Registered office
to Karachi, where the Head Office is presently located. In April 1991, MCB became
Pakistans first privatized bank.
The corporate branch at Shahrah-e-Faisal Karachi (SFK) branch is the corporate
branch of MCB in Karachi. The bank is using SWIFT for transfer of information about
imports and exports. MCB SFK branch has Currently Following three Departments
General Banking Department, Advances Department & Foreign Exchange Department.
To open an account the customer has to meet the general banking manager with
an introducer. The procedure begins with the punching of account opening form to the
customer file i.e. customers master file. Before closing any account, bank send letter to
the account hold for informing him that his account is going to be closed. There is need
an approval form higher authority to close any account. Current deposits are those
which are payable to bank whenever demanded by the customer. Bank does not pay
any profit on current deposits. The following are the financial products/services of MCB
Malay Mail Scheme, PLS Account, Saving 365 Account, Capital growth certificate
scheme, Fund Management Scheme, Khushali Bachat Account, Term/ Fixed Deposits
and others like night banking, credit cards, traveler cheques.















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Part 1
5.1 Introduction
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 following the Bank Nationalization Act 1947.

The Bank has a customer base of approximately 4 million and a nationwide
distribution network of 1,700 branches, including Islamic banking branches, and ATMs.

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.
5.2 Overview of the organization
5.2.1 History
MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid
foundation of over 50 years in Pakistan, with a network of over 1700 branches.
Eighteen years after privatization, MCB is now in a consolidation stage designed
to lock in the gains made in recent years and prepare the groundwork for future growth.
The bank has restructured its asset portfolio and rationalized the cost structure in order
to remain a low cost producer.
5.2.2 MCB now focuses on three core businesses namely Corporate,
Commercial and Consumer Banking. Corporate clientele includes public sector
companies as well as large local and multinational concerns. MCB is also catering to
the growing middle class by providing new asset and liability products. MCB looks with
confidence at year 2005 and beyond, making strides towards fulfillment of its mission,



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"to become the preferred provider of quality financial services in the country with
profitability and responsibility and to be the best place to work".
5.2.3Rewards and business volume
Business volume
Rupee in (000)
Profit before tax 26,253,075
Profit after taxation 16873175
Total assets 567,552,613
Total liabilities 488,348,404
Deposits 431,371,937
Investment 213,060,882
Year 2012
The
Asset Triple
A
Best Domestic Bank Pakistan
Euro
money
Best Bank in Pakistan
NFE
H
CSR Business Excellence Award Best Media
Coverage
ICAP
and ICMAP
2nd Best Corporate Report Award 2011-
Banking Sector
Worl
d Finance
Best Commercial Bank Pakistan
Pakis
tan Centre
for
Philanthropy
PCP Corporate Philanthropy Award


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Year 2011
CFA
Association
Pakistan
Most Stable Bank of the Year
CFA
Association
Pakistan
Best Bank of the Year
Euro
money
Best Bank in Pakistan
ICAP
/ ICMAP
1st - BCR Award 2010 - Banking Sector
SAF
A
Joint 2nd Runner-up for BCR 2010

Year 2010
The
Asian
Banker
Strongest Bank in Pakistan
The
Asian
Banker
Leadership Achievement Award
MMT Best Bank Led MMT Service
ICAP
/ ICMAP
1st - BCR Award 2009 - Banking Sector
SAF
A
Certificate of Merit Award for BCR 2009





Awards of MCB

MCB has
become the only
bank to receive the Euromoney award for the fourth time in the last five years for
being the Best Bank in Pakistan.
Best Bank award 2008
Best Bank award 2006
Best Bank award 2005
Best Bank award 2004
Best Bank award 2003

MCB also won the
Best Domestic Bank in Pakistan awards 2000

In addition, MCB also has the distinction of winning the Asi a Money
awards for being "The Best Domestic Commercial Bank in Pakistan".
Best Domestic Commercial Bank award 2005
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.

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.


Year 2009
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Asia
money
Best Domestic Bank in Pakistan

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Vision Statement:
To be the leading financial services provider, partnering with our customers
for a more prosperous and secure future.

GENERAL PROFILE

PRINCIPLES OF PERFORMANE

Customer Focus:
Over the years MCB has developed strong relationships with its customers by
understanding their needs and treating them with respect, dignity and importance.
The driving force behind its commitment and services is its focus on customers,
ensuring that it not only meets, but exceeds their expectations.
Quest for Quality:
MCB strives to achieve excellence by ensuring that every moment of our
time is spent in adding value, making sure that we do things right, first time, and
every time. With this quest for quality, MCB has always taken initiatives in
bringing banking into a new arena; from cash to the convenience of plastic; from
branch banking to internet banking and from face-to-face customer interaction to
online accessibility.

Employees Respect:
MCB encourages diversity and treat each of our employees with fairness.
MCB gives constructive feedback for their continuous development and seek
suggestions from all employees for further improvement. The bank ensures that
quality performance is acknowledged and rewarded and exercise utmost
responsibility in decision-making with regards to our employees.

Team Based Approach:


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MCB believes in achieving its Mission and Vision by working together as a
combined group. MCB treats its employees as its internal customers and ensure
that the requirements of internal customer focus are always met. Equipped with
in-depth product knowledge, and recognizing the strengths in each individual, the
bank strives for optimum-results from our co-workers and bringing out peak
performances by working towards common goals and objectives in today's
dynamic banking environment.

Good Corporate Citizenship:
MCB seeks to continuously improve the quality of life in our communities.
The bank realizes that it has a responsibility to the society in which it operates
and it seeks ways of playing a positive role for the betterment of the community
at large for a progressive environment, better living and a brighter future.

5.2.4 PRODUCTS AND SERVIES
Commercial Banking
Deposit Accounts:
Basic Banking Account:
A simple account to produce the habit of saving for beginners like students.
The account can be opened with only Rs. 1000, no minimum balance required, no
any monthly or annual charges applicable on this account, two deposits and two
withdrawals can be made in a month. Also you can avail the facility of MCB ATM
card and MCB smart card.

Pak Rupee Current Account:
MCBs Pak Rupee 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 plus
you can avail finance facility up to 75% of the total deposit.


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In addition, you have access to a countrywide ATM network convenient
cash accessibility 24 hours a day. The facility also provides you with unlimited
daily transactions with a limit on maximum withdrawal amount through the ATM
machines

Pak Rupee Savings Account:
MCBs Pak Rupee Savings Account offers you attractive returns on your
Pak Rupee investment with a minimum balance of Rs. 10,000.
In addition, you have access to a countrywide ATM network convenient cash
accessibility 24 hours a day. The facility also provides you with unlimited daily
transactions with a limit on maximum withdrawal amount through the ATM
machines. You can also use MCB Smart card and Locker Facility at economical
charges.
Pak Rupee Term Deposit:
MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you
choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year
term deposits.
Saving 365 The MCB Saving 365 calculates profits on a daily product basis
and gives you the facility of unlimited withdrawals.

Foreign Currency Savings Account:
MCBs Foreign Currency Savings Account offers you attractive returns on
your Foreign Currency investment. You can invest in any of the four currencies i.e.
US Dollar, UK Pound Sterling, Japanor Euro Your foreign currency account is
exempted from Zakat and withholding tax.






Foreign Currency Current Account:



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MCBs 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.

MCB Foreign Currency Term Deposit:
MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the
choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year
term deposits.

Smart Dollar Account:
The Dollar Khushali Account, a Dollar based account was introduced in 1993 at
selected MCB Bank branches. Today, you can open a Smart Dollar Account at over
200 branches in Pakistan with a minimum amount of USD 10,000.



Business Account
With MCB Business Account you can avail higher number of free transactions with
higher balance. The account can be opened with Rs. 50,000. You can make free
Deposits and Withdrawals from all nation-wide branches.

Loan Products:

MCB Business Sarmaya:
MCB Business Sarmaya is the best Running Finance facility against your
residential property which empowers you to manage your business dealings better.

So act today and get MCB Business Sarmaya and thus improve your business, avail
lucrative opportunities and expand your business, with absolute satisfaction of cash
flows.

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MCB Car4u:
Life is like a chess board. You plan your career options. You analyze your business
moves. But when you really want to improve your life, you make a power move.
MCB CAR4U Auto Finance is the power move that assists you in more ways than
you ever imagined. It is affordable, with lowest mark up 16%, flexible conditions,
easy processing and above all, no hidden costs.

MCB Pyara Ghar:
Some destinations require a long wait. Like waiting for a home of your own. But with
MCB Pyara Ghar it is now easy to step into your home and start living a real life.
MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you
Purchase, Renovate or Construct your home the way you have always wanted.
Having your own home was never so easy.

Easy Personal Loan:
MCB Easy Personal Loan provides you with the financial advantage to do things
you've always wanted to but never had the sufficient funds for. Take that much-
needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance a
better education for your children.

MCB Master Card:
Since the beginning of time, people have tried to find more convenient ways to pay,
from gold to paper money and checks. Today, money is moving away from distinct
hard currencies and towards universal payment products that transcend national
borders, time zones, and, with the Internet, even physical space. Plastic or "virtual"

money, credit, debit, and electronic cash products, inevitably will replace cash and
checks as the money of the future.

MCB Rupee Traveler's Checks:
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Corporate Banking:
Cash Management Services:
MCBs network of over 1700 branches in Pakistan enables it to collect and disburse
payments efficiently with its cash management services. This also enables it to offer
you a choice of paper based or electronic fund transfer solutions including collection
amounts, cross branch on-line transactions etc.
Working Capital Loans:
Based on the customers specific needs, the Corporate Bank offers a number of
different working capital financing facilities including Running Finance, Cash
Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailor- made
solutions are developed keeping in view the unique requirements of your business.

Term Loans:
MCB offers Short to Medium Term Finance to meet capital expenditure and short
term working capital requirements of our customers. The loans are structured on the
basis of underlying project characteristics and cash flows of the business.

Trade Finance Services:
Under Corporate Banking MCB offers trade finance services that include an entire
range of import and export activities including issuing Letters of Credit (L/Cs),
purchasing export documents, providing guarantees and other support services.

Online Services:
MCB ATM Services
With a solid foundation of over 50 years in Pakistan, with more than 750 automated
branches, 269 online branches, over 222 MCB ATMs in 41 cities nationwide and a

network of over 12 banks on the MNET ATM switch, MCB is positioned at the
forefront of the banking industry in Pakistan. This success has been possible

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Because of a never-ending drive to achieve higher levels of excellence, constantly
striving to raise the level of performance.
MCB Mobile Banking:
At the forefront of technological excellence, MCB proudly introduces MCB MOBILE
BANKING. The convenience of accessing your account balance information and
mini statements whenever you want or wherever you may need them, with comfort
and peace of mind.

MCB Call Center:
Keeping up with banking services can be tedious but not with MCB Bank, where
phone service is at your fingertips. Just dial our Call Centre from the comfort of your
home or office or wherever you happen to be. It offers basic banking services for
your convenience, eliminating the need for you to make unwanted trips to your
branch.
5.2.6 For ecomice development start Islamic Banking:
Deposit Schemes :
For customers who are looking for a deposit opportunity where they can purse their
funds and reap halal returns on it, we offer the following products:
Al-Makhraj Saving Account
Al-Makhraj Ianat Account
Al-Makhraj Term Deposit
Fund Based Facilities
Ijarah Products
MCBs Islamic Ijarah, analogous to the English term 'leasing, is based on the Ijarah wa
Iqtina concept which means the sale of the asset to the lessee after the Ijarah has
matured. Under this scheme, MCB will be the owner of the asset, and the customer

(lessee) will be given the asset to use for a certain period of time in return for monthly
rental payments. MCB will give a separate unilateral undertaking that it will offer to sell
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the asset to the customer (lessee) at the maturity of the Ijarah agreement at a price that
may be equal to the security deposit amount, hence the term Wa Iqtina.
Types of Ijarah:
Car Ijarah
Equipment Ijarah


MCB Rupee Traveler's Checks were first introduced in 1993 as safe cash for
traveling and travel related purposes. The product has been extremely popular and
is preferred over cash by customers while traveling and in all walks of life.
MCB Rupee Traveler's Checks- The safest way to carry Cash.
5.3Structure 5.3.1 Organizational Hierarchy
President

Senior executive vice president

Executive vice president

Senior Vice president

Vice president

Assistant Vice President

Clerical Staff Non-Clerical Staff
1) Cashier 1) Messenger
2) Technical Staff 2) Dispatch Rider



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The Organizational chart within deptt. & in different offices.

Head Office Regional Office Zonal Office Branch

Divisional head Regional Head Zonal Head Branch
Manager
5.3.2 Number of employee
MCB has 9910 number of employees

5.3.3 Main office
1: registered office; MCB building, f-6/g-6 Jinnah Avenue, Islamabad
2: principle office: MCB tower 1.1. Chundrigar road, Karachi.
3: registrars and shares registration office. THK ASSOICIAT (PVT.)LTD.
Shares department ground floor,
Modern motors house
Beaumont road, Karachi.
Al Ghouse main jail road Lahore

5.34 Department Introduction
Audit RAR group
Banking operation group
Business development &new initiative

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Consumer banking group
Commercial branch banking group
Compliance &control group
Financial control group
Human resource management group
Information technology group
Islamic banking group
Project management group
Risk management group
Strategic planning &investment group
Special assets management group
Treasury and FX banking group
Wholesale banking group
Audit &RAR group:
Code of corporate governance in Pakistan mandates establishment of
internal audit and function for every listed company .internal audit is an
independent, objective assurance and consulting activity designed to evaluate
and improve an organizations by bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk management, control and
governance process, the function Is performed by competent Banking operation
group:
This group is a support to all transactions and financial functions of the
bank.
All back-end processing and dealings are routed to different areas of this
mammoth group. The group provides help to commercial banking and consumer
banking by handling cash and cash transactions, issuing various instruments like
pay orders and demand drafts .they also support treasury by book/record

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Keeping and processing of all trade and finance operations .in additions to
this ,they also provide general services, facility management of the banks
expense lines and procurement.
professionals called the internal auditors.
Business development &new initiatives:
Every day , organizations comes up with new and invigorating product /services
to attract customers .in order to compete with such rapid changes ,fast growing
market and stiff contenders ,we have dedicated an entire unit whose job is to
monitor such transformations and develop new business strategies in order to
keep our business up to mark
Consumer banking group:
This group primarily meets the needs of individual customers .it deals with selling
marketing and managing consumer products and providing various services to its
customers.
The consumer banking group targets the consumer market their sales and
product development is completely managed by specific teams that are wholly
dedicated to the specific product. Each team has the responsibility of making
their respective product efficient .competitive and user friendly .the product being
offered by mcb bank
Unsecured assets:
MCB visa (credit card)
Commercial branch banking group:
This is the largest business group existing in the bank .therefore due to its sheer
size; it has been divided into four portfolios, north, south central and east.
The whole group comprises of over 1000 online branches, about 20-30 branches
(depending on the area) form a region and further 2-3 region from a circle .every
circle office is managed by a general manger. Currently there are 14 circle offices
present in our existing network.

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The major function of this group is to manage assets and liability based retail
product .more than 90% of the bank ,deposit base is managed by this group
.funds generated by these branches via deposits are utilized by various business
groups to give advances to customers. Excess funds are placed by treasury in
the money market as well to earn higher spreads .the funds generated by the
bank in shape of deposits are used to meet financing needs of our customers
5.35: structure is more centralizer, but organic as well , Management of
Human Resources has been one of our core focus areas. MCB is committed towards
attracting, retaining and motivating outstanding people. Challenge for MCB is to provide
an environment in which employees can better realize their potential. The Bank
introduced 'reward for performance' where high potential officers were identified and
rewarded 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 E-Finance 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 its 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.

Part II

5.4 Personal working and learning Experience
5.41 Brief introduction of branch: This chapter is related to my personal
working and learning experience during my internship at MCB. I join MCB on 05 of
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August, 2013. During internship my office timing is 09:30am to 05:00pm. MCB is
a huge organization with different department, Mcb branch is located in kucharay road,
Gujarat, and it was an online branch.
5.42 @ 5.43 Weekly Timetables: The following activities have been
done during the time period of internship. The activities given below are on the weekly
basis. Mainly during the internship I worked in all the departments and learned the
working and procedures that are necessary for the processes.
I tried my best to learn each and every activity of this branch. Following is my
week wise learning at MCB
Week Detail Department supervisor
First Start on 05
Aug 2013
banking intro MR.MALIK
RAIZ
Second Start on 12
Aug 2013
Current banking MR.SALMA
N RAZA
Third Start on 19
Aug 2013
Cash
department
MR.FAIZAN
SALMAN
Fourth Start on 26
Aug 2013
Remittance
department
MR.ALI
BUTT
Fifth Start on 02
September 2013
same SAME
Sixth To
Eight
Start on 09
September 2013
Accounts
department/Suggestion
MR.HAMZA
RAZA

5.4.4:
Weak 1
st
start from 05 August 2013)
In the 1st of my internship, I obverse the current banking, like
Basic accounts of banking
Process of accounts opening
Observed basic business process
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Observed movement of customers and Employees inside the Branch

Learned basics of Account Opening
Opened Accounts of GOVT employed persons
Opened PLS saving Accounts
Opened BBA accounts
Opened Student account
Worked as CSO(Customer Service Officer) because CSO was on leave and
performed the following activities:
o Attended phone calls
o Attended customer inquiries
o Received ATM forms
o Received and entered daily DAK
o Filled cheaque book requisition slips

Second week: (start from 12 August 2013)
In my second week of internship I worked in cash department, In the second
week of my internship I learned about Cheaque book, Debit card and Alico products.
CURRENT DEPARTMENT
This department maintains all formalities of the accounts and account holders
like it account name, account holders name, code number and full address.
Different cheques debit and credit voucher come from different departments like
Token, Clearing, Remittances, Cash, Foreign Exchange, Advances and posted
against different accounts.
A working Journal called Manual is prepared daily which shown the balance
accounts of all parties. Mark-up and profit are calculated daily. That would be
debited at credited from or to account holders account after specific period of
time.
Markup is debit from the account after every three month profit is credited to
accounts after every six month. New accounts are also opened in this
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department. The fund deposited in the MCB bank can be classified under the main
heads:

Third week: start from 19 August 2013)
The main objective is to know about the different functions of cash department.
CASH DEPARTMENT
In cash department both deposits and withdrawals go side by side. This
department works under the accounts department and deals with cash deposits
and payments. This department maintains the following sheets, books, ledger of
account:
Cash received voucher sheet.
Cash paid voucher sheet.
Paying-in-slip
Cheque Book
Cash balance book

Cash department is performing its job completely through computers. The
following staff members are performing their duties with patience and hard work..
Cash Paid Sheet
The only instrument that can be used to withdraw an amount from an account is
the Cheque book. No payments are made by another instrument. Cheques can
be of two types, they may be presented at the counter and encashed and the
others are clearing or transfer cheques.
Cashier manually inspect the Cheque for following:
Signature & date
Cross cutting
Drawees a/c title
Amounts in words & figures
Two signatures at the back

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The cheques should not be stated as post dated. If in the Cheque there may
discrepancy regarding any of the aspects described above the cheque is

returned to the customer for rectification. On other hand if the cheque is valid in
all respects, the cashier enters the necessary inputs in the computer and post the
entry so that account balance is updated.
When cashier posts these entries, computer automatically display the balance
before posting the transaction amount, balance after posting. The cashier easily
and quickly see whether the amount being withdrawn so exceed the balance or
within the balance. If the amount does exceed the balance then it is upon the
discretion of the manager to allow an overdraft and not depending upon the
customers reputation. If he does not allow an over draft, the procedure.
Fourth Week: start from 26 August 2013)
Fourth week I spent in Remittance Department and learned following
things:The need of remittance is commonly felt in commercial life particularly and
in every day life general. A major function of any banking system is the transfer
of funds from one client or one place to another. By providing this service to the
customer the bank earns a lot of income in the form of service charges. This
department deals with local currency remittance i.e. remittance from one city to
another without actually carrying the currency. MCB uses following instrument for
transferring of money:
Demand Drafts (DD)
Pay Order (PO)
Telegraphic Transfer (TT)
Mail Transfer (MT)
Demand Drafts (DD)
DD is a written order given by the branch of the bank on behalf of the customer
to other branch of the same bank to pay the certain amount to the customer. DD
are issued for the particular place other than place of issuance. A drafts is a
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Cheque drawn by a bank on its own branch or any other branch of another bank
at a different place requesting it to pay on demand a specified amount of money
which is already received to the person named on it. DD is of following two types:
In the first type as advice reaches for payment the immediately pay to the
customer while in later as DD presented by the customer, it is paid and the
suspense account is debited.
A printed application form is provided for filling in completely and signing by the
applicant. After depositing an amount of draft and commission of the bank, duly
completed and signed by two authorized officers, then it is handed over the
applicant and credit order is dispatched to drawee branch. Following are the pre-
requisites for the processing of DD:
Pay Order
For this kind of remittance the payer must have the account in the issuing bank.
Pay order are more liquid as compared to cheques because cheques may be
dishonored while PO cant be. It is written order issued by the bank drawn and
payable on itself. It is used for local transfer of money from one person to another
person. It is also used by the public for depositing money with Government or
Semi Government department.
DOCUMENTATION
The party who requires a pay order will get a printed application from the bank.
He will fill it and deposits the amount and commission. The bank charges are
same as on demand draft.
TELEGRAPHIC TRANSFER (TT)
In this case the authority is given from one bank to other on the behalf of the
customer through telecommunication to debit their inter office account through
them and credit their parties account mentioned in TT. It is an inter bank
transaction. Telegraphic transfer is an instant transfer of funds. Through this
method applicant can transfer money from one place to another place. There are

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Two types of TT, Both types of TT are maintained in separate registers, test is
applied by the manager of every amount of TT.
Applicant has to fill a form along with depositing amount to be transferred and
bank commission. MCB charges the commission at the same rate as in the case
of demand drafts.
Fifth Week: start from 02 September 2013)
The Fifth week is from 3
rd
July, 2009 to 8
th
July, 2009. The main objective of this
is to know about the demand draft (DD), pay order (PO), and cash deposit
receipt (CDR). To know about these entire why all these documents are used.
And how much charges have to be paid for making all these.
Sixth week to Eight week: start from 09 September 2013 to 27 September
2013
My sixth to eight week was related to accounts department , and online
transaction
Every transaction which takes place recorded in the computer so all transactions in
different departments are forwarded to account department. Since all vouchers from
different departments are forwarded to current department so this department tallies
all such transactions with current department after maintaining the ledger of each
department. Following are different functions performed by this department:
Preparation of Financial Statements for different time span
Maintain all accounts of different departments
Calculation of profit on different schemes
Calculation of markup on different advances
Preparation Different types of reports for State Bank
Daily position of cash & every accounts
Matching daily summaries of all departments with ledger



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5.45: then in first week which I done , which is related to the accounts
opening( task):
Account opening is the basic procedure to create a relationship between a
customer and a banker. When a customer opens his/her account it increases the
business of the bank. The following steps are taken while a new customer enters in a
bank for opening his/her account. These steps are;
When a customer wants to open an account the authorized officer gives him/her an
account opening form. This form is known as RELATIONSHIP CONTRACT FORM.
This form is filled out with the hands of the customers.
All the required fields that are mandatory for account opening should be filled
compulsory. These are the fields like title name of the customer, occupation, address of
the customer, phone nos, correspondence address, e-mail address, etc.

(a) requirements for opening an account for the individual;
In case of employed person
Copy of CNIC
Salary slip
A letter from employer
Initial deposit of Rs.100 to 1000.
Photo copy of utility bill
In case of non employed person
Copy of CNIC
A letter from Dist. Nazam
Initial deposit of Rs.100 to 1000.
Photo copy of utility bill.
(b) requirements for opening an account for the partnership;
Copy of CNIC
Copy of CNIC of all the partners
Request letter of account opening
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Company letter head

Copy of registered certificate (if registered)
Signature specimen duly attested
Initial deposit may be from Rs.100 to 1000
In both cases there is some amount which is fixed for opening current and saving
account that is;

For opening current account Rs.10, 000 is required.
For saving account Rs.5000 is the limit.

After all these requirements, the authorized officer attaches two signature specimen
forms called SSC and one requisition form. On which the authorized officer put his/her
signature and pasted signature admitted and verified and bank stamp on it.
Along with this form the copy of CNIC and a Verisys form and form known as (KYC)
is attached with it.
The task which I performed in 2
nd
week during my internshipe ans learn folowing
things.
Learned About the Requisition request of Check for new Account
Learned about the issuance of new cheaque book.
Filled the ATM request forms
Learned how to issue the ATM cards
Learned how to issue the ATM Pins
Got basic information about Bank Assurance offered by Alico
Learned about various offers of Alico
Learned about the installments of assurance account
Learned about the Terms and conditions of Alico.


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(A) Process of getting the new Check Book.



After opening an account, a letter of thanks is sent to the customers from the
Circle Office after 2 or 3 days. After receiving that letter a customer can obtain his/her
check book from the bank. But while customer is coming to the bank for receiving
his/her check book this letter of thanks should be with him.

These are the following steps that are used for gaining check book:
The customer brings the letter of thanks and give to the authorized person. The
person fills the check book requisition slip for the customer and takes his signatures.
Then the authorized person saves that slip in his record and fills another slip and fwd
to Karachi via NIFT and customer is asked to come after 5 days.
After 5 days cheaque book is given to customer after taking his signature in a
separate register But in case if ;
(a) Customer is new than after taking letter of thanks check books would be hand
over to him/her.
(b) But in other case if customer is not new he is a regular customer than at the
end of each check book a requisition slip is attached. So whenever a new
check book would be needed the customer will put his/her signature on it and
submit it to the authorized officer.

(B) Process of getting an ATM/DEBIT card
The following steps are taken while issuing an ATM/DEBIT card. When an ATM
or Debit Cards issue, the following steps are needed:
A copy of CNIC
A minimum Rs.550 should be in respective account.
After filling up all the required documents for ATM card these documents are
given to the authorized person who pasted a verification stamp on these documents and
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signing on it. And at the end, after 5 days the person is called again to hand over
ATM card after taking his Signatures.

(c) Process of getting an ATM/DEBIT card Pin

When the customer is given ATM card he goes to another Person to get his/her
secrete Pin code. The person take the signatures and give it to customer. Then
Customer goes to CSO and activates his CARD.
Alico Products:
Alico offers various products for persons belonging to different age groups. The
purpose is to provide the insurance side by side with savings. Some of them are given
below:
Income Max
Current Life Account
Capital Sure
Flexi Life
Har Pal Mehfooz

At the last a separate file is maintained for each of the customer for banks
record
My 3
rd
week task was related to Cash handling
Although internees were not allowed in cash department because of sensitivity
of matter, they provide me maximum possible knowledge, and I spent few time in cash.
Learned basic things about Cash department
Learned how to write Cash book
Signature verification
Cash Deposit slips Processing

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Process:
In Cash department customer after filling up the checks, bonds etc give it to the
authorized office. The following information are required for further preceding of the
check;

Name of the customer
Exact amount in words and figures
Code of currency
Date of the check
and signature of the Customer
After providing all the above mandatory places check is hand over to the relevant
person.
The authorized person after receiving Checks or bonds puts bank stamp on it
Checks the balance of the customer account.
Verify the signatures of customer
Then gives the cash to the customer.

Some important things that must keep in mind while filling up a check:
a. The check should be enchased on that date which has to be written on the
check
b. No cutting/overwriting is allowed
c. Signature should be matched with the ID card signature
d. On the back of the check there should be the sign of the issuer
I learned that how to accomplish different tasks like deposit, credit cards slips,
and as well as bonds. I also learned that how original Checks are identified.
In 4
th
week Task was related to deal in remittance department , It was related to
pay order , demand draft .
Learned basic operations of remittance department (PO, DD)
Learned how to make entries and vouchers of incoming TT
Made vouchers and entries for Incoming TT
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Learned the difference between DD and PO
Observed other operations e.g. PO (Pay Order), DD (Demand Draft)
Learned bank charges for PO, DD, TT & MT (Mail Transfer)
Learned how to make entries and vouchers for Outgoing TT(Telegraphic
Transfer)

Made few Outgoing TT
Learned & Made Inter-Branch Credit Advices against the checks received from
outer city branches
Learned how to make entries and vouchers for Outgoing TT(Telegraphic
Transfer)

With these activities, also observed the other activities. The remittance officer
also has to pass the entry that is entered by the cashier. The cashier enters the amount
of check and the check number. Then the remittance officer enters the password and
passes the entry. If the remittance officer is present on the seat then the operation
manager has the authority to pass the entry. It is actually based on the amount of the
transaction. When the amount of check exceeds a specific amount of Rs. 200000 the
remittance officer has to pass that. And when the amount increases to Rs. 500000 the
operation manager has to pass that entry. To open the customers account and to keep
information of each of the customer separately so that when information is needed can
be obtained easily.

In 5
th
week task to be paid for making all these.

(a) Procedure of making Demand Draft (DD) and Pay Order (PO):
Out of the city DD is used, DD is made through Check and Cash. Rs.50 is
charged on cash slip and in case of check slip Rs.220 is charged. PO is made within a
city. It is also in the form of Cash and Check. Rs.50 is charged on cash and Rs.220 is
charged on check slip.
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If a regular customer wants to make DD or PO then in this case he/she has to fill
up a form. This form is known as FUNDS TRANSFER FROM; on making this
DD/PO Rs.50 is charged for making this in case of account holder but for non
account holder Rs.220 is charged.

In the form all the mandatory places are compulsory to fulfill. Like, currency of
instrument, type of remittance, beneficiary details, particular of applicant,
applicant signature etc. these are such requirements that must be fill up.
And at the last the authorized officer puts his/her signature on DD/PO form and
three stamps are pasted on it;
a. Transfer stamp
b. Signature verified stamp
c. Crossing check stamp ( in case if half payment is made through cash
form, then a check is fill up for this and attached with the DD/PO form)
And at the last the operational manager puts supervision on this and all the records
are transferred into computer for bank records.

(b) Procedure of making of Cash Deposit Receipt (CDR):
CDR is used locally. It is also in from of Cash AND Check. CDR has no charges.
A request form is filled by the hands of the customer for making CDR. This form
is known as CREDIT DEPOSIT FORM.
In this form some requirements are compulsory which has to be full up these are
check no, the person name to whom it is going to be transferred, signature
specimen, date etc.
After all these the verification stamp, check transfer stamp, and signature verified
stamp is pasted on it.
And at the final stage, all the transactions are recorded in a register for keeping
banks records.
I learned that how DDs, CDRs and POs are made. And how many charges are
applied on it.
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In sixth week to eight week on my internship, it was all about online transaction
Task ,
(a)ONLINE TRANSACTIONS
Procedure:

In on line transaction the process is so simple in this the client receives a request
form from the customer for online transactions. In such case customer presence is not
compulsory. In this the following requirements are necessary to keep in mind. These
are:
Sender name,
Customer account number,
Bank and branch name,
Check no,
Beneficiary branch no,
Total deposit and date.
An online check is received form customer along with the print out of a voucher is
attached with the check. And three stamps are pasted on it, these are;
Clearing Stamp
Intercity stamp
Transfer Stamp
And then in the last entry of an online check is recorded in the register for
maintaining bank records.

(b) LOCKERS
Procedure:
whenever a new customer wants to operate locker he/she signs on a SSC card.
And a separate register is maintained for this purpose.
and after that whenever customer wants to operate the locker than the
authorized person takes the customer signature on the maintained register. And these
signatures are matched with the SSC card signatures.
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only relevant customer is allowed to operate.
5.46: Summary of learning
5.46.1
In first week I observed the basic business process. At the end of each day I
totaled the electricity, water, telephone and check amounts. Mostly the total was correct.

But sometimes when the total does not match with the sheet of the PRINTING I had to
do it two or even three times. On the other hand in my 2
nd
I learn new skill related to the
current banking system.
3
rd
week I learn the important skills
Intercity Cheaque Processing
Arranged an event to give Customers awareness about Alico
Made a list of Valued customers
Made invitation letters for customers
Arranged necessary items for the Event
Filled Cash deposit slips
Learned basics of Account Opening
Filled some cheaques for aged persons
Filled cash deposit slips for online Deposit
In 4
th
week was related to remittance so Learned basic operations of remittance
department. Remittance department deals with the foreign remittances. First of all the
remittances are received in the post. Normally two types of remittances come. One is
credited to the accounts in our branch and the other is to be given in cash to the holder
of the XPIN. One advice is normally made for all the advices that are to be credited to
the accounts.
Then the relevant advices are made. In the advices, originating branch is
Dharampura Branch. PNSC Branch is written in the responding branch. The code for
the originating branch is 0992 and for the responding branch code is 0069. Current date
is written in the date field. The amount is written in the relevant fields in figures and in
words. In the favoring, we write the name, account numbers, DD numbers and the
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amount in front of every beneficiary. Three copies are prepared for each advice.
One advice goes to CSO for record. One goes for cashier and one goes to the clearing
department for entry in the computer.
In fifth week
Learned how to Issue the CDR
Made vouchers and entries for CDR

Made few CDR
Learned how to manage CDR register
Learned payment against CDR
Balanced the CDR Head of GL for 31 July, 2009.
Learned how to issue a PO
Made Debit vouchers against the PO & DD charges
Made Credit vouchers (contra) against the PO & DD charges
Learned how to make DD and PO
Made outgoing Clearing
Made local clearing
Made intercity clearing
Made return clearing

In this week I was a bit for remittances that are to be paid in cash, one advice is
made for each of the remittance. The person comes in the bank with the XPIN. He gives
it to us. With XPIN he gives the photocopy of the CNIC. One advice is made for him.
Three copies are prepared for each advice. One advice goes to CSO for record. One
goes for cashier and one goes to the clearing department for entry in the computer.

Procedure for outgoing clearing
I also made out going clearing, for outgoing clearing a list I made an excel sheet
of all bills having depositing account number, amount and cheaque number then
separated bills from slips then posted various stemps on bills and slips as follows
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Clearing stamp of next date on front of bill
Accounts credited stamp on back of bill
Clearing stamp on front of deposit slip


Procedure for intercity Clearing

I also made intercity clearing. For Intercity Clearing a stamp of intercity posted on
face of bill, then amount, acct number and city name is entered in a separate register
and deposit slip is attached in a specific file. And a stamp is posted on back of bill. A
separate slip is filled for every city given by NIFT. In the specified envelope is used for
every city given by NIFT with printed name of city.

Learning in six week to Eight week
After working in this area I learned what money gram is and why it is used for?
And as well as I also learned about the online transactions and the procedure used for
lockers.

5.4.6.2
As we all know that , according to my time table of work in different departments
Of banking sector , I took a lot of responsibity and task which I adopt , and performed
well in my best maximum way.
Took responsibility to prepare the accounts opening form
Took responsibility to fill out the vouchers
Took responsibility to know and prepare the demand draft, pay order in the
banking system
Took responsibility to handle the cash transaction
Took responsibility to set on the guest relationship area and engage the
customer to open account in bank

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5.46.3
Definitely very person has its own career objectives according to this
requirements and Aims in life. After did internship in this bank , now my aim is to start
my career in banking sectors according to my strength , interest and ability to work in
this sector , my planning is start my career in bank as a MTO , and then will fly high.
5.46.4

Of course classroom knowledge really matter in every practical field of industry,
so same as banking sector, I learn many thing and try to explore through my knowledge
in class room. For example
I have knowledge of different accounts of banking
Voucher and transaction of debit and credit
These knowledge really help me the more explore the thing in deep , because I
knew the basis


6: Recommendation
6.1 Overall summary
The banking structure in Pakistan comprises of the following types, State Bank of
Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative
banks, specialized credit institutions. The state bank of Pakistan is the Central bank of
the country and was established on July 01, 1948. The network of bank branches now
covers a very large segment of national economy. The State Bank of Pakistan issues
the shares of these periodically. Bank employees and other common peoples can also
purchase these shares and earn profit. In 1956, MCB transferred its Registered office
to Karachi, where the Head Office is presently located. In April 1991, MCB became
Pakistans first privatized bank.
The corporate branch at Shahrah-e-Faisal Karachi (SFK) branch is the corporate
branch of MCB in Karachi. The bank is using SWIFT for transfer of information about

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imports and exports. MCB SFK branch has Currently Following three
Departments General Banking Department, Advances Department & Foreign Exchange
Department.
To open an account the customer has to meet the general banking manager with
an introducer. The procedure begins with the punching of account opening form to the
customer file i.e. customers master file. Before closing any account, bank send letter to
the account hold for informing him that his account is going to be closed. There is need

an approval from higher authority to close any account. Current deposits are those
which are payable to bank whenever demanded by the customer. Bank does not pay
any profit on current deposits. The following are the financial products/services of MCB
Malay Mail Scheme, PLS Account, Saving 365 Account, Capital growth certificate
scheme, Fund Management Scheme, Khushali Bachat Account, Term/ Fixed Deposits
and others like night banking, credit cards, traveler cheques.
In remittance department like any other bank MCB also have instruments for
transferring of money, Telegraphic Transfer, Mail Transfer. In cash department both
deposits and withdrawals go side by side. This department works under the accounts
department and deals with cash deposits and payments. This department maintains the
following sheets, books, and ledger of account cash received voucher sheet.
Cash paid voucher sheet, Paying-in-slip, ChequeBook, Cash balance book. The
clearing in Karachi at MCB or other banks is being done through NIFT (National Institute
of Facilitation Technology).
Bank provides this facility to the people who need advance money to meet their
requirement. Party dealing with other banks financial condition of borrower business
and as a first step credit proposal is being made. MCB provides advances, which are
two types. Secured Advances, Unsecured Advances. MCB usually classified advances
in to following types Agricultural Advances, Commercial Advances
Industrial Advances. Commercial Advances are of following types
Demand Finance, Cash Finance, Foreign bills purchased, Finance against
imported goods, Finance against foreign bills, Export Refinance Part I (Pre Shipment) &
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others. Banks Agriculture division deals with the agriculture advances. Bank
provides the Agriculture Advances in order to enhance and support the agriculture
sector of the country. Farm Credit & Non Farm Credit.
In foreign exchange, MCB is dealing Foreign Currency Accounts, Foreign
Remittances, and Foreign Bills for Collection, Imports & Exports
In a nut shell it can be concluded that the overall performance of the bank is quite
satisfactory. MCB's total assets, investments, deposits and equity has increased but

profitability has decreased by a soaring percentage of 58.23%. The reasons which I
have traced out of my analysis and studies are as follows;
Increased financial costs of funds for which expected investment revenues did
not open up.
Return on lending has been reduces
Bank has increased its classified advances by 35% to fulfill the requirements of
Prudential Regulations. The fresh increase is mainly 51% in the other assets
especially mentioned classification. According to the prudential regulations
requirements, accrued markup cannot be credited to income but to suspense
A/C.
During the year 2008, the economy of the country remained in sluggish. In spite
of various policy measure initiated by the government for confidence building of
the domestic and foreign investors and steps taken such as:
o Creation of small and medium entries development authority (SMEDA).
o Financing under prime minister's self employment scheme.
o Launching of Mera Ghar scheme etc.
o For revival of economy, the expected investment environment could not
be created and economy did not pick up.
The large number of non-commercial banking institutions (DFI's and NBFI's) also
competed for limited resources and investment avenues- thus further narrowing
the spread of banking industry.

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6.2 GERNERAL OBSERVATION
Department should provide proper guide line to the students during learning about
their practical application in the field of business so that students becomes
familiar with business environment.
Our department must have developed close relations with reputed organizations
adequate help for management of internship can provided to the students.
The department should try to promote IBIT as a prestigious institute for clearing and
pay attention toward its promotion and advertisement in business sector.


The department should maintain a record of all its old students working in various
fields and present them as a source of motivation inspiration for the present students in
the department.

1. Practical field is quite different from theoretical knowledge. So an internee should
adopt himself / herself to know situation. He / she should be able to get firsthand
knowledge.
2. Have the quality of confidence.
3. Have a good communication.
4. Should be able to judge the situation.
5. Should have effort to doing best.
6. Have flexibility in opinion making.
7. It is golden rule for relaxation, satisfaction and success.

MCB bank limited is an attractive and suitable corporation for the internees as it
provides excellent learning opportunities to the students. Its culture is so inspiring and
working structure is so impressing that it motivates to work. All staff members are very
cooperative and helpful in providing guidance during internship. It is good place of
learning for future job.

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1. MCB is and will positioned and flexible enough to operate effectively in the
changing scenario. We will continue to broaden our customer base, harnessing
the growing strength of the MCB brand and expand the platform to provide value
based propositions to our customers. Banking today has entered into a new era
of computer technology. With introduction to intern on line banking, the distance
between branches has reduced in such a way that a customer maintains his
account thousands of kilometers away. Branches avail full facilities from other
branches. This facility is very common in foreign banks. My observation is that
like many other sectors of banking MCB should also take a lead in this sector.

2. As discussed above, this is an age of computer technology and the banks having
skilled working (in computer technology) will certainly be able to attain a faster
growth rate. My suggestion is that MCB should stress upon its employees to
learn computer technology and following incentives should be given to them for
this purpose.
6.3 SWOT Analysis
STRENGTH
MCB is the first Pakistani privatized bank and because of its quality
management, marketing, innovation in products and services. Owing to all such factors
they have established a good reputation in the banking market. The name of MCB
makes you recall the highly cooperative and professional individuals ready to serve you
with maximum zeal and zest.

MCB have faster banking services that are making it more prominent in the
banking industry especially in operations and Foreign exchange. The customer prefers
this bank not only because of its faster speedy service rather due to reasonable service
charges.
MCB in Pakistan is the also in the list of highly automated banks like Emirates
because of its modern style of banking through fully computerized control and twenty
four hour banking.
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The joining of experienced people, advanced management, advance setup and
facilities gave MCB an edge over its competitors.
WEAKNESSES

The majority of people are not well aware about the products of MCB. Therefore
it should advertise extensively especially RTC and Master Cards.
A behavior has been noted that bank tries to feel at ease with good looking, rich
and educated people and the poor looking customers feel some bit strange in the
environment of the bank. The bank employees should try to accommodate behaviorally
all type of customers.

In MCB there is lack of specialized skill because of job rotation policy of human
resource department. The bank should concentrate upon increasing its abilities on
individual service basis.


Mismanagement of time is another big mistake in MCB branches, the bank
official time of closing is 5:30pm but due mismanaging of time allocation and work the
staff is normally on their seats till 7:00 or 8:00 clock.

OPPORTUNITIES
As on December 31, 1998, sixty-eight scheduled banks with 9,106 branches are
operating in Pakistan. As on this date, total population of Pakistan is 140.03 million.
Total number of personal accounts with all scheduled banks as on December 31,1997,
are 28.98 million. If we consider the population statistics of working age group as on
December 31,1997, it stands to the figure of 96.64 million. Thus we can say those 28%
of working age people of Pakistan are having accounts with banks while 72% are
unbanked.


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The need of privatization has made people to switch to banks to satisfy their
needs of lending and borrowing. This not only increases the deposits but also the credit
business.


THREATS
Change in government policies have affected the banking business. Still banks
have to wait to get permission of state bank. The freezing of foreign currency accounts
is a vital example of letting people not to trust on banks.

The Competition has become severe by the entrants of so many banks, So to
exist one will have to prove himself in its services through excellent management and
will have to satisfy its shareholders. Otherwise he will be out the market.

The decrease purchasing power of consumer in the current economic situation of
the country affecting the business activity speed too much and the result is the low
investment from the investors in new projects can create problem for the bank because
it is working a lot in trade.


7: Recommendation:
Bank must let potential customers know that all attractions for banking exist. This
is done by advertising on television and obtaining press coverage, in conjunction with
direct mail, window displays, leaflet in branches and in appropriate other locations (such
as hotels, shops, etc.) and including leaflets in statement of accounts sent to existing
customers in the hope that they will tell potential customers about the services provided
by our bank.
Financially unsophisticated people might feel bank accounts, cheque books,
credit cards, etc. are difficult to understand and to keep control thereof.

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Some personal sector customers prefer not to come to branch. They
increasingly want to deal with the bank in other ways, such as home banking or use of
Automated Teller Machines (ATMs), which need to be at the branch or some important
shopping plazas.

It is widely known that there is a substantial Black Economy in Pakistan, Where
people earn income that is undisclosed to the revenues authorities. Payments for goods
and services in the black economy are necessarily in cash, because transactions by
cheques are more likely to be exposed to the revenue authorities. Some people will
therefore avoid bank accounts to preserve secrecy of earnings.

One way to retain the personal sector customers is to offer a wide range of
services such as tax advice, free life insurance equivalent to amount deposited, shares
portfolio management, fund management facility, etc., complimentary to the core
services. Banks must have a slightly different mix of services. Banks must have a
slightly different mix of services and mean of providing these such that customers can
choose the mix that suits them best.
Arguably, there has been a little encouragement from banks to persuade people
to open a bank account. Opening hours are restricted, and there is a commonly held
belief that banks operate for their convenience and not for the convenience of the
customers.
A logic leads to promotional campaign through employers who are customers of
the banks and their employees are paid in cash. Such business accounts should be
encouraged to open the accounts of their employees with the banks. It might be worth
offering free banking for a specific period to new accounts or simply publicizing the
services available by means of posters at the employers premises.
It might be possible to attract another type of personal customers through
business accounts, namely directors and denier employees, etc. Again an incentive
package could be put together.

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The banks may choose to make its existing products distinctive or to introduce
new products. It is often easier to benefit from adverse changes made by other banks
than to attract customers by innovations.
A short term promotional technique is to offer price incentives, for example, low
interest rates on advances or limited issue high profit bearing term deposits. Longer
term, a Loss Leader may be offered. For example, profit bearing current accounts are
not very lucrative but any bank can not afford not to offer these. The reduced profits can
be augmented by profits made on other products.
It is also possible to attract/retain personal customers by investment in new
technology like ATMs and Telephone Banking facilities, which made the services
quicker, easier, cheaper and more flexible.



















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8: References

Internship Report/web page
Muslim Commercial Bank Limited - Virtual University of Pakistan
http://vustudents.ning.com/group/fini619internshipreportfinance/forum/topi
cs/internship-report-on-muslim-commercial-bank-limited#ixzz2oqCYzT6D

Mcb/ web page
Introduction of mc
Http: // www.mcb.com.pk

Http: // www.google.com.pk