Académique Documents
Professionnel Documents
Culture Documents
0154 )
MR Rashid Saeed
Submitted By:
Ghulam Abbas(42)
BBA (Morning)
Session 2012-2016
Dated:
Aug 07, 2015
DEPARTMENTOF BUSINESS ADMINISTRATION
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Table of Content
Sr. No.
1
2
3
4
5
6
7
8
Page. No.
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04
05
06
07
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Values Of MCB
07
08
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09
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10
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Sources Of Funds
13
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14
10
11
12
13
14
15
16
17
Details.
Title Page
Letter Of Undertaken
Scanned Copy Of Internship Certificate
Dedication
Acknowledgement
Introduction Of Banking Industry
Introduction Of MCB
16
17
18
20
22
27
29
30
DEDICATION
This report is dedicated to all our
Respectable Parents,
Respectable Teachers,
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ACKNOWLADGEMENT
First of all we are thankful to almighty ALLAH whose blessing is always with us. We
are also thankful to our department for guiding us during making this report,
The co-ordination of all MCB Bank staff is really appreciable.
BZU Bahadur Sub Campus Layyah
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All the difficulties which I face during this report are maintained properly with smiling
face.
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o "A banker is a dealer in capital or more properly a dealer in money. He is an
intermediate party between the borrower and the lender. He borrows from one party
and lends to another."
Pre-Nationalization Phase
o There were only 03 Muslim banks in Indo Pak before partition one of them was
Habib Bank Ltd. (establish in1941 at Bombay) and second was Australia Bank Ltd.
(establish in 1944 at Lahore) Third one was the Muslim commercial bank Ltd
established in 1946 at Calcutta.
Nationalization Phase
o In 1974 all Pakistani banks were nationalized through Nationalization Act 1974.
Under this law all Pakistani banks became a public property.
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o In 1990 the government decided to denationalize all the nationalized institutes. For
this purpose, amendments were made to Nationalization Act 1974 and two
nationalized banks were privatized.
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Vision & Mission OF MCB Bank
Vision Statement of MCB Bank
o To be the leading financial services provider, partnering with our customers for a
more prosperous and secure future.
Respect
o We respect our customers values, beliefs, culture and history.
Excellence
o We take personal responsibility for our role as leaders in the pursuit of excellence.
Customer Centricity
o Our customers are at the heart of everything we do. We thrive on the challenge of
understanding their needs and aspirations, both realized and unrealized.
Innovation
We encourage and reward people who challenge the status quo and think beyond the
boundaries of the conventional..
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Historical Overview
Formation:
o MCB Bank (formally Muslim commercial bank limited) Bank Limited completed his
65 years in the field of banking quite successfully. MCB bank was formed in 1946 in
Calcutta. The registered office of the bank transferred to Karachi in 1948.Now its
principal office is shifted at Lahore and registered office at Islam Abad.
Achievements:
o MCB Bank Limited won Best Bank in Pakistan Euro money awards eleven times in
2000, 2001, 2003, 2004, 2005, 2006 and 2008 to 2011,
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Current Account
o MCB Bank offers a variety of current accounts to cater to the everyday transactional
needs of various customers.
Savings Account
o MCB savings accounts offer attractive profit rates as well as flexibility to transact.
Terms Deposit
o MCB Term Deposits offer attractive short to mid-term investment options with
flexibility, convenience and security.
o Loans and Advances
o Banks grant loans to the spenders so MCB bank also grant different kids of loan to
different customers.
o Consumers Loans:
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o MCB bank offer loans for personal use to the individuals or group of people it
will be granted on the incomes of the desired individuals.
Running Finance:
o It will be issue on hypo bases and personal guaranty is required for it.
Cash Finance:
o It will also issue on pledge base pledge and personal guaranty is also required
for it.
Demand Finance:
o It will be issue on mortgage bases and personal guaranty is also required for it.
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o MCB Bank offers a complete suite of Classic, Gold and Platinum Visa Credit Cards
focusing on providing, superior service, travel privileges & shopping pleasure.
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MCB Bank Investment Services
o MCB Bank Investment Services offer distribution of mutual funds managed by the
leading fund managers of Pakistan
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o MCB Bank Islamic Banking provides Reba Free and Sarah Compliance services to a
variety of customer segments.
Sources of Funds
Depositors:
o Like all commercial bank deposits are main source of MCB Bank and recently in
2011 total amount of deposits are 491 billion rupees. There are different types of
deposits which as under:
Types of Deposits
Fixed deposits
Saving deposits
Current accounts
Margin accounts
Allocation of Funds
BZU Bahadur Sub Campus Layyah
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Loans:
o MCB bank allocate the funds for profit generation it is also proved to be the best
items in funds allocation and recently in 2011 total markup earns through it is rupees
44.5 billon.
Advances:
o Short-term loans are also a valuable source of incomes so MCB Bank also allocating
the funds in it. These may include:
o Cash Credit
o Overdraft
o Discounting of bills
Securities:
o MCB Bank also makes investment in securities and in recently 2009 total earning
from investing in securities are rupees 13,894,162, 000.
Others:
o MCB Bank also allocates his funds many other activities for generating revenue these
may include:
o Repurchase agreement
o Interbank transactions
o Project Financing
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Organizational Structure
Introduction
o To the best of my knowledge and from different sources here under structure of
Management of MCB Bank is explained below.
Chairman
o Mian Mohammad Mansha
Chairman
Member
Member
Member
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Member
Chairman
Member
Member
MUA Usmani
Member
Member
Critical Analysis
Risk framework:
MCB Bank has good risk framework a Risk Management & Portfolio Review Committee
is in place which has five members including chairman of the committee. This committee
is responsible for developing risk frame work according to the guidelines of SBP.
o Currently a centralized framework is apply by the MCB which is comply with the
guidelines of SBP I will discuss in detail where it applied for risk mitigation of all
types of risk faced by the bank in this dynamic environment. Here under all types of
risk which faced by the bank.
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Unsystematic Risk:
o In Finance terms unsystematic risk are specific risk, idiosyncratic risk, residual risk,
and diversifiable risk these are the company specific risk in a portfolio which is
uncorrelated with aggregate market returns. Here under some of these risk are as
under:
Credit Risk:
o MCB Bank face credit risk it arises from dealings with individuals, corporate,
financial institutions, sovereigns etc.
o Market Risk:
o MCB Bank face market risk which arises from changes in market rates such as
Interest Rates, Foreign Exchange Rates and Equity Prices etc.
Security system
Above mentioned security risk is mitigate by establishing a security system. In
Branch office where I work has security system which are as under:
Security Guard:
o In place of MCB Bank where I spend my six weeks in training has a security
department, security guards are hired for mitigating the security risk.
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documents, technologies, and procedures used by management accountants to solve
business problems such as costing a product and service.
MCB Bank use MIS system all over the Pakistan between Its branches naming
SYMBOLS and naming FOCUS within CRCD. These are ORACLE based software.
Employees Integrity
Integrity of employees is significant and the most important element because without
it the business owner cannot count on receiving the results expected and promised In
MCB Bank high degree of good governance, transparency,
Customer:
o A customer is a person which want to obtain loan from bank he contact with the
loaning and advances officer in branch where his account is open. A customer can be
a consumer, commercial or corporate.
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The role of operation manager is very important. An operation manager is controller of
branch internal working. He has to ensure that total working/activities are being done
according to prescribed procedures set down by the bank.
3. Credit Officer
A credit officer is the in charge of branch advances he maintains records of loans. He
processes credit proposals maintains credit files cheques the banks hypothecated/pledged
stocks. He also looks after legal cases/issues.
4. Clearing Officer
A clearing officer processes clearing. He also keeps record of out station cheques, inward
clearing. He also works as dispatcher/receiver of dark.
7. Cash Officer
A cash officer or teller receive cash from customers post their vouchers in the system.
Make payment of cheques collect utility bills. He keeps records of cash. He is also
custodian of the cash.
Department of MCB:
MCB provided different services to their customer. To fully satisfy their customer, and for
efficient working, they assign different services to different departments. Few of these
given below:
Cash Department
BZU Bahadur Sub Campus Layyah
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1. Individual Account
Single
Joint
2. Business Account
Sole proprietorship
Joint stock company (Public/Private)
Partnership (Registered/unregistered)
BZU Bahadur Sub Campus Layyah
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Societies
Association/Club/Trust
Autonomous Bodies
Govt. Institution (Federal/Provincial)
Nature of account has already discussed in main products and services chapter.
Cash Department
The main function of this department is Payment and receipt. It collects and pays money
to the customers, on behalf their account, through cheques or any other instruments.
There are three main functions of the cash department:
Payment
Clearing
Receipts (Collection of money from the customer in their accounts, Collection of
Utilities bills)
Transfer of cheques
Clearing of cheques
Transfer of Cheques
It deals within the inter-bank transfer of cheques. Suppose a person X gives a cheque of
MCB to another person Y who also has an account in MCB, the clearing department will
handle it. The clearing department simply debits one account and credits the other one.
Clearing Of Cheques
BZU Bahadur Sub Campus Layyah
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It also deals with the cheques of other banks. Suppose an NBP account-holder gives a
cross cheque for MCB. Similarly, MCB account-holders give cheque to people having
accounts in other banks; these all banks need to clear their overall balances with each oth
Credit department
Credit department is very important department responsibilities of this department are:
1. to processes loan proposals/applications.
2. To maintain record of loan documents and files.
FINANCIAL ANALYSIS:
Financial statement is any written report that purports to show the financial condition of
an organization. It may include balance sheet, income statement, cash flow statement, and
a report of changes in net worth.For stakeholders of a business, analysis of the financial
statements is the primary way to critically examine its financial position, in order to seek
answers to varying queries.
Publication of financial statements is a statutory requirement for corporations chiefly
addressed to stakeholders outside the business, albeit they serve the management for
internal control in many ways. The fact that the audit carried out to uncover any material
irregularity, is based on simple of items, leaves some room for incredulity.
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LIMITATION OF FINANCIAL STATEMENT:
Financial statements are based on historical cost convention. They do not portray the real
or market value of items on the face financial statements. The creditability of financial
statements is confined to the audit carried out, and most audit evidence is persuasive
rather than conclusive. Financial statement does not disclose any significant future events
or contingencies. Financial statement does not compare the actual figures with any
standard set. Qualitative information about the business is not found in financial
statements.
Balance Sheet
Balance Sheet for MCB Bank
Ltd (MCB)
All Values in Millions PKR (expect
Per Share) FY 2011
Period End Date
Asset
Cash & Near Cash Items
Inter banking Assets
Inter banking Assets
Net Loans
Long-Term Investment
Net Fixed Assets
other Assets
Total Assets
Liabilities & Shareholders'
Equity
Customer Deposits
ST Borrowing & Repos
other Short-Term Liabilities
Long-Term Investment
BZU Bahadur Sub Campus Layyah
FY 2013
12/31/2011
FY 2012
12/31/2010
37,797.12
18,638.00
306,832.49
225,794.74
8,954.93
21,716.89
36,590.64
656,324.81
35,036.44
16,324.13
199,679.20
254,565.47
12,302.08
20,752.32
31,822.23
570,481.86
479,061.48
21,552.13
18,459.16
39,100.63
420,558.11
21,002.93
16,090.37
25,684.59
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other Long-Term Liabilities
Total Liabilities
Total Preferred Equity
Minority Interest
Share Capital & APIC
Retained Earning & other Equity
Total Equity
Total Liabilities & Other
6,497.10
564,670.50
0
492.5
18,286.80
72,875.01
91,654.31
5,146.73
488,482.74
0
2.7
17,304.68
64,691.75
81,999.13
Equity
656,324.81
570,481.86
Income Statement
Income Statement for MCB
Bank Ltd (MCB)
All Values in Millions PKR (expect
Per Share)
Period End Date
Net Interest Income
BZU Bahadur Sub Campus Layyah
FY 2011
12/31/2011
45,368.84
FY 2010
12/31/2010
37,252.49
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Trading Account Profit
Commission & Fees Earned
Other Operating Income
Net Revenue
Provision for Loan Losses
Net Revenue After Provision
Non-Interest Expense
Operating Income
Net
Non-Operating
Losses
924.22
4,921.27
676.61
51,890.93
2,846.52
49,044.40
17,806.21
31,238.20
639.79
4,133.11
672.57
42,697.96
3,100.59
39,597.36
13,458.44
26,138.92
(Gains)
Pretax Income
Income Tax Expenses
Income Before XO Items
Extraordinary Loss Net of Tax
Minority Interests
Net Income
Total Cash Preferred Dividends
Net Inc Avail to Common
-83.59
31,321.78
12,019.30
19,302.48
0
28.17
19,274.32
0
-370.72
26,509.64
9,637.51
16,872.13
0
-1.89
16,874.02
0
Shareholders
Abnormal Losses (Gains)
Tax Effect on Abnormal Items
Normalized Income
Basic EPS Before Abnormal
19,274.32
0
0
19,274.32
16,874.02
0
0
16,874.02
Items
Basic EPS Before XO Items
Basic EPS
Basic Weighted Avgas Shares
Diluted
EPS
Before
20.98
20.98
20.98
919.86
18.35
18.35
18.35
919.86
Abnormal Items
Diluted EPS Before XO Items
Diluted EPS
Diluted Weighted Avgas Shares
20.98
20.98
20.98
919.86
18.35
18.35
18.35
919.86
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SWOT Analysis
For a better strategic management, organizations need to go for scanning the internal as
well as the external sources on which the overall business lies. The first and the foremost
concern of the organization are to see its internal capabilities and the things which can be
the problem in achieving their targets, goals and aims. I conduct the SWOT analysis of
the MCB Bank and my findings are here under explained.
Strengths
o Safe and secure investments venture
o Innovative and new technology adapter
o Employee Satisfaction
o Well Equipped and fully secure environment
o Modernized banking (online + Internet)
o Complete supervision at every level
BZU Bahadur Sub Campus Layyah
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o Business continuity management and implementation of advance model under
Basel II
Weaknesses
o Weak organizational culture (need a paradigm shift to improve organizational
structure)
o HR Policies (appraisal, compensation, career planning)
o Networking problems regarding ATM
o Weak MIS interconnectivity among the Division
o No mobile ATM services in rural areas.
Opportunities
o Information Technology (MIS)
o Establishing more Foreign Branches
o Local Setup should be expanded.
o Internet Banking
o Some more innovative products and services should be introduced.
o Centralization
Threats
o Downsizing is potential threat for MCB employees and they are losing their
confidence towards bank performance
o Fierce competition
o Changing environment of banking
o Instable Govt., economical and political conditions are a great threat.
o Entrance of international banks
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Conclusion
The work within each unit is not divided properly when an employee is absent
another employee (who is already over burdened by own job) is given absentees
whole work instead of dividing it among employees.
Accommodate management is required.
Internees are not considered part of the organization so are not allotted as such
assignments.
Theres no proper arrangement for guidance of internees.
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Working hours are quite long; mostly employees have to sit even after the office
hours to complete their work. (E.g. branches suddenly overburden them for there
clearances and they have to manage it)
Inefficiency of IT department (At times system software is not in working order
which causes delay in work, and IT is not efficient to help)
Rotation on duties without proper training.
No refresher courses.
Recommendations
Following are my suggestion to improve the efficiency for the development of the
economy
Work load should be equally divided among the employees
Accommodation should be properly managed.
Internees should also be considered part of the organization, and should be given
some practical work as well in order to give them a more detailed knowledge
regarding work.
BZU Bahadur Sub Campus Layyah
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