Submitted by

PREFACE

Internship, a practical training, is an integral part of MBA study. For Internship I was
send to MCB Bank Ltd (Gulghust Colony) Multan. It is a 6 week training period in which
I tried my best to get complete knowledge and training in different sections of the branch.
The report is an upshot of my 6 week internship. MCB Bank ltd posses an imperative and
historical importance in the banking sector of Pakistan. It always remains the center of
hustles in business activities. It always endows with a great covenant of rally. Round in
terms of funds and services at all era of its dynamism.
Although, a derisory period of 6 weeks is not enough to learn the complex operations of
MCB yet I made my best effort to converse them comprehensively in this report. As the
student of Business Administration we have to pass through a series of various manager
techniques. During this practical course we are provided with an opportunity to learn that
how the theoretical knowledge can be implemented in the practical ground.
I have a strong belief that this report will guide and ease the reader to understand the
operations of banking system and more prominently have a good knowledge about MCB
Bank Ltd, one of the most trusty and leading bank in Pakistan.

ACKNOWLEDGEMENT

First and for most all praise is to All Mighty ALLAH to give me the courage an patience
to carry out the responsibility successfully.
.
My thanks are also due to the young, dynamic, gracious and qualified staff of MCB who
never let me alone in different situations related to my internship. Without their humble
help it was not easy.
I cannot forget to pay my special thanks to MR. ALAY MUHAMMAD ZAIDI ( Branch
Manager) of MCB Bank Limited who mange the internship permission for me from the
head office of MCB Karachi to depute my internship in MCB Gulghust Colony, Multan.

INTRODUCTION
DEFINITON OF BANKING:

Banking is an institution transacting the businesses of accepting the purpose of money

from public, repayable on demand or otherwise a withdrawal by cheque, draft, order and
include any post office saving banks.
There are following types of banks:
Central Bank
Investment Banks
Merchant Banks
Private Banks
Saving Banks
Commercial Banks
Consumer Banks

History of MCB BANK LTD.

MCB BANK ltd unfolds 52 years of growth. MCB is not an overnight success story.
The bank started corporate life in Calcutta on July 9, 1947. After the partition of the
Indo-Pak Subcontinent, the bank moved to Dhaka from where it commenced business in
August 1948. In 1956, the Bank transferred its registered office to Karachi, where the
Head Office is presently located. Thus, the bank inherits a 52-year legacy of trust in its
customers and the citizens of Pakistan.

Nationalization
In January 1974, the Government of Pakistan nationalized MCB following the banks
(Nationalization) Act 1947, Premier Bank Limited merged with MCB.

Privatization
A wave of economic reforms swept Pakistan in the late 1990, introducing the need for
privatization of state owned banks companies. In April 1991, MCB became Pakistans
first privatized bank. The government of Pakistan transferred the management of the
Bank to National Group, a group of leading industrialists of the country by selling 26%
shares of the bank.
In terms of agreement between the Government of Pakistan and the National Group, the
group, making their holding 50% has purchased additional 24% shares. Now, 25% is
purchased by the Government, which shall be sold in the near future.

VISION

To be the leading financial

Services provider, partnering
with our customers for a
more prosperous and
secure future.

MISSION
We are a team of committed
Professionals, providing
Innovative and efficient
Solutions to create and nature
Long-term relationships with
Our customer. In doing so,
We ensure that our share
Holders can invest with
Confidence in us.

GOAL
To enhance profitability and
maximization of MCB BANK Ltd
share through increasing leverages
of existing customer base
and diversified range
of products.

SERVICE MANAGEMENT ACTIVITIES

Service management activities are the ones we do on daily basis for ensuring all
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Components (touch points) that would affect an over-all customer experience are as per
our standards and that we are making efforts to improve them further e.g. Cleanliness,
Ambiance management, Service Forums, Process Improvement, Training, etc.
As an initial step, following are the minimum set of service activities to be religiously
implemented in the 1st phase. There can be more service related activities and can be
added as and when required.
1.
2.
3.
4.
5.

Host of the day

House keeping Checklist
Service Coaching
KIA (Marketing term in Bank)
Monthly Service Meeting

1. The Day Host of:

Host of the Day is actually day to day service management.
This activity is perform to check that all the attributes within the branch which can effect
their service delivery and in turn help make good customer experience should be check
on the daily Basis.
Any one can be the host of the day but is required to be at the branch ideally by 8:30AM
to ensure that all the area in the check list are completed before business starts at
9:00AM.

2. House Keeping:
Clean and the Hygienic environment gives a decent and the good impression apart from
proving a comfort for the customer. A check list is provided about the cleanliness, and
maintenance inspection which is filled by the host of the day who physically check all the
action able item and sign it.

3. Service coaching:
The objective of coaching is to improve customer service and build confidence of the
employee. Branch manager invest the time in it. Basically it is an informal process and
does not require all to be present at the same time. It is not more than five to ten minutes.
The basic purpose of this is known on daily basis how the service is progressing. This can
be done with the staff along the half-way whenever the opportunity arises.

4. KIA (DO YOU KNOW)

Kia is toll to inform to about bank promotion activities for account holders and also get
more business through their best services. In those day there was boom of Mobile & Net

Banking. Thats why KIA was: kia app ko maloom hai k aap ghar baithay apnay account
ki maloomat or balance transfer kar saktay hain..

5. Monthly Service Meeting:

Service meeting should be held once in a month. The main objective of this meeting is to
discuss following things.

Branch Ambiance
Customer issue
Pending complaint
Service Quality result
Follow up on item pending

ACCOUNT OPENING
Product Knowledge:
Types of account:
Current Account
PLS Saving Account
Khushali Bachat Account
Basic Banking Account

Current Account:
As the name signifies the depositor can draw or demand amount at any time by
presenting the cheque in the bank. Unlike time deposit there is no restriction of
withdraws. The bank neither pays any kind of interest nor deducts the zakat form the
deposit of this account. The bank also does not take any service charges up to the
minimum balance of the account from the depositor. The minimum balance required to
open this account is Rs.10, 000/-. If the balance in account reduces from minimum
balance then the bank charges is Rs.50/- and Fed 16% as incident charges. No profit is
paid on this type of account.
PLS Saving Account:

PLS saving account having a running minimum credit balance of RS. 1,000/- would be
eligible for sharing profit/loss of the bank. The bank would be within its rights to make
investment of credit balances in the PLS saving accounts in any manner at its sole
discretion and to make use of the fund to the best of its judgment in the banking business
under the PLS system. The profit/loss will be credited/debited on the basis of its net
working results at the end of each half-year. Calculation of products on PLS saving A/c
will be made for each calendar month on the lowest credit balance of an account between
the close of business on the 6th day and the last day of the month. If the balance is less
than Rs.100/- the product will be nil.
If the account holder withdrawals the money under 7 days notices, the profit loss earning
products will be computed on the monthly minimum balance. Zakat is deducted every
year on non-exempted accounts.
Khushali Bachat Account:
In this type of account the bank provides individual interested investing for five years
saving schemes, individuals who want monthly return on investment, middle class
income group for the persons residing abroad and family in Pakistan and for retired
persons who want regular monthly return on investment.
Minimum amount required for this account is Rs.20000/- and maximum is Rs.1/- million.
This scheme can be adopted by individuals (Single or Joint) in their names. This
certificate will mature after 5 years.
The bank will give profit on monthly basis. Zakat is deducted on payments and profit
according to government rules. Profit amount can be send to customer demand draft.
Profit will be paid from that branch where you have opened Khushali Account. If a
customer has a saving or current account in this bank then profit can be deposited in that
account.

Basic Banking Account:

This account is usually for students or salary persons. The minimum balance required to
open this account is Rs. 1, 000/-. There is no deduction of service charges and no profit is
given to the customer. Transactions over and above the limit will be charge at the rate Rs.
25/- as per transaction and the transactions can be passed through virtual banking and
ATM. Each month the account holder will be allowed two deposit transaction and two
with drawls free of cost.

ACCOUNT OPENING PROCEDURE:

The customer can open account in MCB Bank Ltd in following categories:
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Personal Accounts
Individually
Jointly
Business Accounts
Sole Proprietorship
Partnership
Corporation

Application Form
The customer would like to open his account is required to meet with the basic banker,
who will fill an APPLICATION FORM specifically used for account opening.

Specimen Card
This card contains three signatures of an applicant, applicant A/c no, A/c type, branch
code, title of A/c, it will be attached with an application form. Banker uses this card at
the time when he receives the cheque; he compares customers signature with the
signature on the cheque for avoiding fraud.

Information required by the bank

Name
Address
Telephone number
Currency of account
Nature of business
Letter head of a business
Country of residency
Signatures
Nadra verification
KYC form

Issuance of cheque book

After opening the account a cheque book is given to the customer to sign upon which the
number of cheque book issued and the name of customer is written. Bank issue a cheque
book against requisition. A cheque book register is maintained by the officer. In the
register, the cheque book inventory, date of cheque book issued, signature of the customer
and cheque book issues are recorded.

Closing of an Account
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There is no. of reasons of closing an account. Some are listed below:

i.
If customer desires to close his account
ii.
In case of death of one account holder.
iii.
Bankruptcy of the account holder.
iv. If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account holder for informing him that
his account is going to be closed. There is need an approval from higher authority to close
an account.

Remittance Department
Types of Remittance
Remittance is classified into following four types:

INWARD REMITTANCE
OUTWARD REMITTANCE
INLAND REMITTANCE
FOREIGN REMITTANCE

Inward Remittance:
The branch which receives the instrument(T.T, D.D etc) directly from the customer or
from the originating branch and is responsible to pay to party is called inward remittance.
For example if some D.D is drawn on our bank and we have to pay the party (to whom it
was send).

Outward Remittance:
The branch which issues or sold the instrument to the responding branch is called
outward remittance. In this case we are sending remittance to another branch of the same
bank in any location.

Inland Remittance:
Transfer of money from one branch to another branch of the same bank within the same
country is called inland remittance. In this case both originating branch and responding
branch will be situated in the same country.

Foreign Remittance:
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Transfer of money from one country to another country is called foreign remittance.

Modes of Payment
Following service are pointed by this department.

To issue demand draft(DD)

To issue mail Transfer
To issue telegraphic Transfer(TT)
Online cross branch transfer(CBT)
Rupee traveler cheque(RTC)

Demand Draft:
Demand Draft is used for the transfer of money outside station.
A draft is an instrument drawn by a bank in favor of any person on
a branch of its own bank or any other bank to pay a certain amount
of money which is demanded to the person named on it.
It is not necessary for the demand draft that applicant or recipient
account should be open in originating and responding branches.
It is one of the cheapest methods of transference of money within
the country or outside the country.
Applicant has to fill in the application form for availing the facility
of demand draft. After depositing the amount of draft, remittance
officer prepares the cheque of demand draft.
When banker issue draft to the customer, he also records customer
particulars in a demand draft register where record is maintained
branch wise.
Responding branch and originating branch debit/credit the head
office account and send the daily statement of transaction to head
office.
Mail transfer:
The transfer of money from one branch to another branch of the same
bank through mail or courier service is called mail transfer.
The applicant should be the regular customer or the account holder of
the responding as well as originating branch.

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Telegraphic transfer:
Originating branch send funds to responding branch instantly and immediately
through telegram and fax.
Bank charges commission, telegram/fax charges on telegraphic transfer.

Payment order:

Pay Order is used as instrument for transfer of money within station or city.

Pay order is written order, which is issued and received by the same bank or
drawn and payable on same branch.

For pay order it is not necessary that applicant should be account holder.

It is used for local transference of money from one person to another.

The bank charges excise duty and flat rate from the applicant.

Rupee traveler cheque (RTC):

A safe and secure way to make payments nation wide Mcb rupee traveler cheque,
being the market leader is the most widely accepted way to pay cash
It is valuable for travel related purpose.
These are the instruments which are amount of money in form of cheque.
It can be of different amount like 1000, 5000, 7000 etc.
The customer gives these cheques to remittance officer who first deposit cheque
into an account & then give the amount to the customer.

Clearing department:
There is no legal obligation on a bank to collect cheque drawn upon
other banks for customer. Clearing department services are provided in order to make
arrangements for the economic collection of the cheques, DD and other negotiable
instruments. Clearing is done in the state bank of Pakistan through NIFT.
In clearing department there are inward cheques as well as outward cheques.

Inward Cheques:

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Inward cheques are those cheques which have been recovered to different banks. The
amount of these cheques will be credited to SBP account, so these cheques are against us
and have negative effect.

Outward Cheques:
Outward cheques are those cheques which have been delivered to different banks. The
amount of these cheques will be debited to SBP account, so these cheques are in favor of
us and have a positive effect.

First clearing:
The clearing officer first sends the cheque to the state bank of Pakistan. Then
the outward cheques are given to the respective branch members where the check is
verified whether there is balance in customers account or not.

Second clearing:
The cheques which are not verified are returned to the bank attached
with the memo.
Then the NIFT member gives that cheque back to the branch and then returned to the
customer.

Types of clearing:
i.
ii.
iii.

Same day clearing

Local clearing
Intercity clearing

Role of clearing department:

Suppose X account holder have an account in MCB and he
has to pay 10000 to Y who has an account in NBP. X draws a cheque in favor of Y and
gives it to Y. Now Y instead of going to MCB for payment, deposit the cheque at
NBP.The clearing department will send the cheque to state bank where the clearing is
done n then cheque is given to MCB to check the validity of the cheque if the cheque is
valid then the clearing is done and if not then it is gone for second clearing.

Procedure:
The branch for clearing item adopts the following procedure.
All the cheques, drafts, pay orders etc for clearing shall be stamped with clearing
stamp on the face of instrument and also the crossing step on the face on

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instrument, endorsement stamp on the back of instrument with the sign of clearing
officer.
Then all the instruments are entered in the clearing register .All the columns of
the register are filled in for each instruments received from any other branch of
the bank the name, instrument number, branch of the bank drawn and the amount
in the prescribe column.

The instruments received for outward clearing shall be sorted.

The amount is again written on the add-on list .Then the grand total of the amount
recorded in register should match with the total amount of add-on list.

Finally these instruments are packed in an envelope n the NIFT member takes it
to the state bank where the cheque is cleared.

Book Keeping:
There are two registers in this department.
1. Local clearing register
2. Intercity clearing register

1) Locker service
MCB also provide locker facility in the country locker facility in the country. The
locker is issued to the depositors. No locker is issued to any unknown person.
It introduce three types of the locker in which their annual fee, security charges and their
Lien rent are the following
Locker types

Security charges

Annual fee

Lien rent

Small
Medium
Large

1000
1000
1000

1300
2200
3300

1000
1000
1000

The Lien rent means must have above mention charges in their account.
The dual control is used for locker. The officer has the master key to apply on the locker
but cannot open the locker of any person. The locker holder provides the bank has the
specimen signature. Whenever the locker Holder comes to open the locker, his signature
is verified by the officer and then will be able to open his locker. If the key of the locker
is lost company providing the locker and a new lock is fitted in its locker and lock is
locked is destroyed in the presence of the locker holder and bank charges RS 1200 for

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that. In case the locker holder dies, the court open his locker in the presence of his heir as
mentioned in his will or and his belonging are given to them and the locker is closed.

Advances Department:
MCB provides the facility to the people who need advance money to meet their
requirements. For getting the advance the following steps are there:
1. Information required by the bank
2. Preparation of credit proposals
3. Sanction advice
1. Initial Information
Following information is required to be submitted to bank.

Nature & structure of borrower business.

Names of proprietors, partners or directors.

Detail of all firms or companies associated with borrower.

Financial condition of borrower business.

An assessment of his business abilities.

Accurate and up to date financial statements of last two years for comparison
purposes.

Market report on the borrower where borrower has maintained an account

with another bank, a report from his bank should also be obtained.

A report from credit standing bureau of State Bank of Pakistan.

2. Preparation of Credit Proposal

At first a formal application for credit approval is obtained from the party along with
complete group position. The partys credibility report is obtained from the bank with
which the bank is doing its business. The partys credibility report is also taken from the
Head office of Trade Information Division.
For obtaining credit, party has to submit the last two years Balance Sheet and Profit &
Loss statement duly attested by authorized auditors. If the party is also involved in export
or import business then the bank also considers the data of three years about import &
export. Current debt and equity ratio is also calculated by the bank. The type of data
required to prepare the credit proposal is to be gathered from the different departments.
Some data is obtained from the foreign Exchange department. Some data is available in
Advance Department. The purpose of obtaining Credit should be explained clearly. The
securities offered by the party to the bank are also evaluated. In case of pledging of

15

property in shape of land or building the complete evaluation of the property should also
be attached.
After all the necessary documents for applying for advance is fulfilled by the party then
the case is sent to Manager for approval. If the credit limit is in his range then he can
decide over it otherwise the case is forwarded to seniors. If there is any discrepancy then
the party is informed of it.
3. Sanction Advice
When the documents required are complete and there is no ambiguity then the party is
advised that their credit or loan is approved and will be available to you soon. There is a
separate form for every annual approval or in case of a new facility (See Annex ).
The form contains following information:

Nature and amount of limit.

Purpose
Security/ Collateral
Margin (%).
Mark up/ Charges
Validity
Types of Advances
MCB provides advances, which are of two types. These are as following:
1. Fund Based Advances
2. Non Fund Based Advances
1. Fund Based Advances
Funds are given to customer according to their requirement against securities.
These loans are given specially to traders, business, small industrial units, including
cottage industries, agriculturists, thus ensuring an equitable distribution of bank credit
among various sectors of the countrys economy.
There are following types of advances, which are given to customer on fund basis.
1

Industrial loan

1) Commercial loan
2) Agricultural loan
Industrial Loan
Loans are given to industrial units including cottage industries up to or less than RS. 20
million. Loans and advances shall not exceed amount specified by marginal restriction
on the type of securities offered. Industrial loans are granted to the manufacturing section

16

of the economy including finance for fixed investments and working capital requirements
of small industries.
Loan Period
Loans are allowed for a maximum period of 5 years including a maximum grace period
of 1 year. In special case up to 10 years also, depending upon the merit of the case.
Commercial Loan
Total principal amount of loans to a single enterprise/borrower shall not exceed RS. 0.5
Million. Maximum maturity is 3 years, depending upon the nature and type of advances,
decided upon case to case basis.
Mark-up
Both for commercial and industrial loan mark-up will be charges as per existing rate,
subject to changes from time to time. Presently it is 0.51 RS per day per RS. 1000/-.
Mode of Repayment
Equal monthly, quarterly or half-yearly, repayment of principal and interest or as per term
of approval.
Securities and Margin
Loans can be made against any or more of the following securities mortgages of
immovable property (land and building), pledge of stocks, raw materials, and finished
goods, hypothecation of stocks, raw material, and finished goods, State bank of Pakistan
guarantee.

Types of Advances by MCB

1. Fund based Advances
Following are the Fund based Advances:

Running Finance(RF)

Cash Finance(CF)
Finance against imported goods(FIM)
Export Refinance part-I (Pre-shipment)
Export Refinance Part-II
Finance against purchase collection(FAPC)
Finance against foreign bills(FAFB)
Foreign bill purchases(FBP)
Local Manufacturing Machinery(LMM)

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 Payment Against Document(PAD)

Demand Finance(DF)

Khud Rozgar Scheme

The detail of above-mentioned items is given below:

a. Running Finance (RF)
The max time of repayment is one year. It is according to will of customer. These types of
advances are given to Trade, Commerce and manufacturing general purposes. These
finances as evident by the name are given to meet their daily needs. The mark up is
charged on daily balances. Normally 0.54 paisa per thousand is charged on daily basis. It
is drawn through cheque.
b. Demand Finance (DF)
The duration of DF is more than running or Cash Finance. These are made in Lump sum
and are there is a permission to repay the amount in periodic installment. Upon receipt of
documents negotiated by the seller bank, the opening bank makes sure that documents
are according to terms and conditions of the credit. Bank makes the payment to the party
against document and upon expire date, bank receives back money with mark up rate.
c. Payment against Document (PAD)
LMM funds are provided by the SBP. The bank provides the facility to the businessman
who wants to buy the local manufactured machinery.
d. Local Manufacturing Machinery (LMM)
It is a long term financing. MCB also gives loan under the head of demand finance to
individuals, industrial units and commercial business etc. This is a type of secured loan
and demand loan is never allowed without security.
e. Foreign Bills Purchases (FBP)
The exporters, which are under L/C, are also provided with the facility of loan. Amount is
given to the exporter after the approval of L/C by the issuing bank.
f. Cash Finance (CF)
MCB gives the facility of cash credit to the business. The borrower gives a specific
reason for the need of cash. The amount is passed through voucher and credited to partys
account. Normally 0.52 paisa per thousand is charged on daily basis to customers.
g. Finance against Imported Goods (FIM)
These types of advances are granted against the pledge of imported goods. These goods
are pledged by the bank. Bank pays all the charges to customs and keeps the goods in its
control. The bank releases the good on payment from the client to bank.
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h. Export Refinance Part-1 (Pre-Shipment)

The government pursues the banks to provide the loan to the exporters to promote the
export. The bank provides this type of advance facility to only those exporters who have
not enough money to make shipment. Bank provides the loans to the customer at the rate
of specific % for period of 150 days.
i. Export Refinance Part-1 (Post Shipment)
This means that the customer has enough amounts to make first shipment but not more.
So the bank issues a loan to the exporter. This financing is for period of 150 days.
Finance is provided by the SBP to the exporters for purchase of raw material, its
processing, Packing and shipment. In case, if the party is unable to make the shipment
within 150 days of financing. The party has to pay certain amount of finance as asked by
the SBP and after 150 days the rate of mark up also goes up @ 51 paisa per thousand per
day. So usually exporters try to make the shipment within the fixed period set by the SBP
which is usually 150 days.
j. Export Refinance Part-11
In this case the bank after receiving the performance of years in export business of party
sets the limit for the period of one year. Here the limit cannot be set by the terms pledged
of the permission of the bank.
k. Finance against Purchase Collection (FAPC)
A bill may be purchased by the bank. If a client is in urgent need of money and he has a
bill whose clearance may take a few days then he sells it to bank. Bank pays the amount
to the client after deducting its commission.
l. Finance against Foreign Bills (FAFB)
Bank also provides finance against the foreign bills. This facility is given to the exporter,
if he needs urgent money. He gives bill of exchange to the bank as security and bank
sends these bills for collection and gives money to exporter.
m. Khud Rozgar Scheme
Limit for loan:
The limit of this loan is from Rs 10,000 to Rs 500,000

Security/Pledge :
A personal security is required to obtain loan otherwise any other security
will be required.
Total business assets will have to be hypothecated.
Mark up & return of loan

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Mark up will be at the rate of 15 % for timely return of loan otherwise rate of
mark up will be 16 % per annum.

The payment of mark up on loan will start after 12 months of payment of

principal amount.

Eligibility of Applicant

The age of applicant should not be less than 19 years and he has not applied
for any type of loan from any bank.

Applicant has been living in the residence shown as address for at least one
year.

Applicant is neither the student nor the employee of any govt organization.

Eligibility of Guarantor

He has been living at the given address at least for one year.

He is neither the employee nor the family member of MCB.

He is not the officer of any Govt organization.

Fees for Loan

A fee of Rs 100 will have to be submitted which will be non-refundable.
Important documents required

Two copies of application form (one original & one photocopy).

Original Identity card will have to be shown. Similarly two photo copies of
ID card will also be required.

Two passport size snaps of both applicant & guarantor.

Original & attested documents of asset of guarantor.

Conditions
The application of loan can be rejected in case of incomplete or wrong information.
Approved loan can be cancelled. It should be informed that the rejection and acceptance
of loan are sole right of bank. If the rent of loan is not paid for more than 3 months then
the remaining amount will be required to refund immediately with 16 % mark up.

Agricultural Loan
Bank provides the agriculture advances in order to enhance and support the agriculture
sector of the country. Banks Agriculture division deals with the agriculture advances.
These advances are of following types:

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Farm Credit

Non Farm Credit

Farm Credit
These are the credits provided by the MCB or purchases of inputs for development of
agriculture sector. Following are two main Sub classes of Farm credit:

Production Finance
These are short term loans. These loans are provided to farmers for purchases of different
types of input, for example seeds, fertilizer, and pesticides.

Development Finance:
These are medium or long term loans. These loans are provided for the development of
agricultural sector. Main Purposes of these loans are as under:

To purchase tractors

To purchase implements (Trolley, Threshers, and Drill etc).

For installation of tube wells

For planting of gardens

Non Farm Credit

The second major form of agriculture advance is Non Farm credit. These loans are
provided to boost up agriculture sector to provide the sources of earning of foreign
exchange as well as to provide employment opportunities to people. These loans are
providing against mortgage of land as security or pledge of equipment as collateral
security. These are long term or medium term investment depending upon the project.
Following are the different types of small industries for which loans are provided to
improve the economy of the country.

Fish Farm

Cattle Farm

Poultry Farm

Dairy Farm

2. Non Fund Based Advances

When an applicant for an advance cannot offer any tangible security the banker may rely
on personal guarantees, letters of credit to protect himself against loss on advance or loan.
21

There are two types of advances which come under Non Fund Advances.

Guarantees.

Letter Of Credit.

Letter Of Credit is explained in Foreign Exchange

Department while Guarantees are elaborated below.
GUARANTEES
Introduction
Bank examines customers relation with the bank 7 the nature of the business. Bank also
sees his past business with the bank. Sometimes bank issues Guarantee on the behalf of
the customer by getting some margin from him. This margin may vary from customer to
customer.
Requirements for Guarantee
Banks issue guarantee on the behalf of customers. Limit proposals covering
transactions should be submitted with full details for the approval of appropriate
sanctioning authority.
Generally Guarantees are issued in favoring of Shipping companies, Govt Departments
guaranteeing specific payments at future dates by customer on whose behalf the
guarantees are issued. While executing a guarantee, the terms and conditions of the
guarantee are closely examined in order to determine the extent of bank obligations and
financial liability under the guarantee and the type of guarantee, all condition are
contained in the guarantee.
Procedure
Bank charges a commission on the amount for which guarantee is issued. Normally the
validity period of guarantee does not exceed one year. After the guarantee has been
issued, a copy of same is issued to the counter guarantee issued to the customer.

22

Foreign Exchange Department

Import

This department provides the facility to their customers to import machinery or products
from other countries. It is necessary for the importers to have the licenses, which is
issued by the chief controller of imports and exports. Before obtaining an import license
the license must be registered with the chief controller of import and export. For having
the license, an individual or firm submits the application through his bank.
Documents Required

Filled application form for Register

The National Identity Card of the applicant
National Tax Certificate issued by the Income Tax department
In case of firm or company, the Memorandum and the Article of Association.
Banker issues the letter of credit normally in the response of the Performa Invoice. The
seller sends this invoice to the buyer and it contains seller name, product quality. Rate,
mode of shipment, and other terms and conditions.
Letter of Credit

Definition of letter of credit

A letter of credit is a written instrument issued by a bank authorizing the seller to draw in
accordance with certain terms and stipulating legal forms, that all such bills will be
honored.
Explanatory Definition
A letter of credit consist of an undertaking by an issuing bank that bills drawn by the
exporter will be duly owner provided the comply with the terms of credit.
Reasons for L/C
The exporters are uncertain of the importer capacity to pay.

23

The importers are unwilling to pay the amount unless the goods are actually
shipped and the documents received by the bank.
In case of non-payment the seller should be assured to legal rights in foreign
country.
There should be an agency, which should meet the sellers need of finance when
the goods are shipped.
The commercial banks come to the help of exporters and importers.
The importers can undertake the obligation to pay to the exporter for the purchase
made by the importer and this is usually done through a letter of credit.

Explanation
A letter of credit is a:
1. Written undertaking by importers bank to a third party i.e. the exporter.
2. That it will be pay or accept draft (letter of credit) drawn upon it up to a started
sum of money within a specified time.
3. That the payment will only be made to the exporter if he complies with the
specified terms of credit.
Parties Involved in a Letter of Credit
There are four parties involved in a letter of credit
o Account party
o Issuing party
o Exporter
o Paying or negotiating bank
o Account party or Importer
The buyer or the importer on whose account and request the letter of credit is opened is
known as account party.
o Issuing party
The bank, which issues or opens a letter of credit at the request of importer, it is called
the issuing bank.
o Exporter
The seller or the party in whose favor the letter of credit is draw is the third party and it is
also known as beneficiary.
o Paying or negotiating bank

24

The paying bank in the exporters country on which the draft is drawn is called the
paying bank.

Operation of a letter of credit:

1. The importer of buyer contacts the seller in foreign country for the purchase of a
particular good or goods.
2. He settles with the seller the quantity and quality of the goods to be importer.
3. The sale contract also includes the method of payment.
4. The importer then submits an application to his bank for the issuing of an
individual letter of credit.
5. The form on which the importer employees for a letter of credit is supplied by the
bank.
6. This form contains all the necessary details discussed between the importer and
exporter for the shipment of goods which include the description of merchandise,
port of shipment, port of unloading, the documents against which the bank is the
honor the draft, the total value of the goods etc.
7. If the documents supplied by the seller conform to the terms of contract the
exporter will be paid.
8. The issuing bank will not be responsible if there is any fraud or the merchandise
does not conform to the sales contract.

25

9. The obligation of the buyers bank is,

To issue letter of credit on agreed terms and condition with the buyer.

To have a proper examination of the documents.

To honour draft when presented with proper documents...

Types of Letter of Credit:

1) Irrevocable letter of credit
2) Revocable letter of credit
3) Confirmed letter of credit
4) Unconfirmed letter of credit
5) Documentary letter of credit
1. Irrevocable letter of credit
It is the one in which the issuing bank gives a lasting undertaking to accept and in due
course to pay bills drawn upon it provided the exporter fulfils the terms and conditions.
It gives a complete protection to the exporter.
2. Revocable letter of credit
It is the one in which can be modified or cancelled by the issuing bank at any time
without any obligation on its part. They are not acceptable to the businessman.
3. Confirmed letter of credit
It is that which has the protection of the credit standing of the importers as well as the
exporters bank. The exporter bank, which confirms the letter of credit, takes the liability
of paying in case the issuing bank fails to make payment to the exporter.
4. Unconfirmed letter of credit
It is one under which the exporters bank does not give any guarantee to the exporter that
the bills drawn will be honored by the issuing bank. It is the commitment of the issuing
bank to honor the draft. From the exporters point of view, the confirm irrevocable letter
of credit is the best form of receiving payment.

26

5. Documentary letter of credit

It is the one of which provides for bills to be accompanied by documents of title to goods
such as the bills of landing, invoice, the policy of insurance etc.

How a letter of credit is opened?

1. Application for a letter of credit
2. Line of credit
3. Opening of the letter of credit
4. Handling of the documents
5. Payment by the importer to the bank
6. Liability of the issuing bank
1. Application for a letter of credit
An importer prepares an application on the prescribed form available from the bank. The
information which are supplied in the application are based on the contract of sale and
include only the importer feature of contract such as the value of the merchandise, port of
shipment, port of unloading, expiry date of the papers and brief description of the goods.
If the bank is satisfied with the applications, it will signed and acceptance agreement with
the importer.
2. Line of credit
Before issuing a letter of credit, bank takes all necessary precautions for securing its
credit. The bank first examines the customers credit standing, the type of goods to be
imported, the market demand for the goods, the collateral offered to cover the credit.
Then it establishes the amount i.e. the line of credit.
3. Opening of letter of credit
The letter of credit can be opened by mail or by cable. When it is opened by mail, the
issuing bank sends letter of credit and to carbon copies to the importer. The importer then
dispatches the letter of credit to the exporter in foreign country by mail. One carbon copy
is kept for the record. The second carbon copy after signing is sent to the bank by the
importer. If an importer directs the bank to open letter of credit by cable, the importers
bank sends a cable to the corresponding bank in the foreign country with a request to
notify the exporter.
27

4. Handling of the documents

When the exporter receives a letter of credit, he presents the required documents and the
draft to the bank in his own country after shipping of documents. If the bank is satisfied
with the documents in the importing country and pays the exporter at official rate in the
currency of his own country.
5. Payment by importer to the bank
When a bank approves the application of a customer for opening letter of credit, it does
not lend money to the importer. The bank only lends the importer to use the credit
standing of the bank to the exporter in the foreign country. The bank makes a contract
with the importer that when the draft if send by the negotiating bank for payment the
importer will make the payment to the bank not later then the day only the bank is to
honor the obligation. In case of a sight letter of credit the payment to the corresponding
bank is to be made on the day the draft and documents are received. When the time of
letter of credit is used the importer is to arrange the payment not later than the day on
which the draft is to mature.
6. Liability of the issuing bank
The liability of the issuing bank is to examine the documents in order to confirm their
validity. If the documents on the face appear to be in order the payment should be
released. If any defect is found in the documents and the issuing bank honors the draft,
the importer can claim damages. The banker is not responsible to see whether the
merchandise conform the sale of contract or they physically exist. The issuing bank is
only responsible for the completeness and regularity of the documents relating to the
letter of credit.
Importance of Letter of Credit
The bank charges nominal commission on financing the import and export shipment.
Benefits to the Banks
Increased balances
Commission
New business opportunities
Increased balances:
The balances are the lifeblood of every commercial bank.
The banks get mark up on the credit and this mark up increases the money of the bank
Commission
28

The commission charged by the banks varies with the kinds of letters issued by them.
Though the commissions are small, yet when counted on the whole, they form an
important part of earning of the banks.
New Business Opportunity
The letter of credit provides new business opportunity to the bank. The firms, which are
engaged in the export and import of merchandise, are introduced to the banks, which by
serving them develop profitable relationship.

Opening of Letter Of Credit in MCB

Before opening of L/C certain requirements are necessary that are
The applicant must has import registration #
He must has account in that bank
He must pledges his security against the L/C amount
He must have IB-8 form, indent or agent form, and performance invoice.
Bank Charges
The bank takes commission @ 0.40 % of amount of L/C for one quarter and
0.25% for two or more quarters.
If L/C amount is low then minimum bank commission is RS 500/ Postal charges are RS. 1200/-.
Stamp duty is calculated @ 0.50% of L/C amount.
Mark up is calculated at RS 0.50 per day per 1000.
For Collection
In case of sight payment service charges are calculated @ 0.10 % of bill
amount and minimum charges are RS. 500/-and handling commission is RS. 500
In case of D/A L/C, commission is calculated @ 0.10 % per month
Advantages of Letter of Credit
Advantages Of letter of credit to the importer and exporter
Provision of finance
29

 Credit standing
Legal right
Risk covered
Business expansion
Bridges credit gulf
Payment in domestic currency

Shipping Terms
The following shipping terms are used in international trade.
EX-works
FCA ( free carrier)
FAS(free along side)
FOB( free on board)
CFR(cost & freight)
CIF(cost insurance freight)
DAF(delivered at frontier)
DES(delivered EX-ship)
DEQ(delivered EX-quay)
DDU(delivered duty unpaid)
DDP(delivered duty paid)
Documents
Documents are the most important part of international trade. Without them trade cannot
be completed. Documents are of five types.
1. Commercial documents
2. Transport documents
3. Insurance documents
4. Financial documents
5. Official documents

30

1. Commercial Documents
Commercial documents consist of following forms.
Invoice form
Certificate of origin
Weight note
Packing list
Quality or insurance certificate

2. Transport Documents
These documents are related with transfer of goods.
following forms,

These documents consist of

Airway bill
Bill of lading
Rail consignment note
Roadway bill
Combined transport bill of lading

3. Insurance Documents
Insurance documents consist of following forms.
Letter of insurance
Insurance policy

4. Financial Documents
These documents are concerned with the payments of goods. These documents consist of
following forms.

31

 Bill of exchange
Clean bill
Short bill
Documentary bill
Bank bill
Delivery against acceptance
Delivery against payment
Promissory note

5. Official Documents
These documents consist of following forms.
Black listed certificate
Consular invoice
Health, Visionary, Sanitation certificate

Export

Usually the exporter does not rely on the credit of a banker in the country of importer,
and insist on a confirmation from a banker carrying on business in his own country. Thus
this department of a bank helps the exporters to settle down their financial affairs. For
exporting it is necessary for exporter to get export license from the chief controller of
import and export after registration.
Documents are required for the registration such as N. I. C. Card, income tax certificate,
bank certificate which shows that the exporter is his account holder and have a good
dealing with them. In response to the letter of credit exporter submit the following
documents to the negotiating bank.
Bill of exchange
Invoice
Bill of lading or Airway bill/railway receipt/truck receipt
Insurance documents
Packing list
Any other documents, if so required.

32

The negotiating bank will send the same documents to the issuing bank. In accordance
with the terms and condition laid down in letter of credit.

Security of Documents
Whether documents received are meant for the opening bank and specifically for the
branch which established the letter of credit. The documents would be negotiated within
the validity of L/C. The goods have been shipped within the time allowed under L/C.
The goods are mentioned in invoice and other documents (e.g. bill of lading, packing list
etc) are in accordance with merchandise clause L/C.
Whether the documents received pertains to L/C, established by the opening bank and the
documents negotiated are within or equal to L/C amount. In case where the value of
documents exceeds the L/C amount, the foreign bank may negotiate the documents for
amount being marginally excess or sends them on collection, remittance may be allowed
in excess subject to the following conditions
The amount does not exceed 5% of the amount of L/C subject to the
maximum of US$ 500/ The importers hold a valid import license against which the excess amount is
adjusted-provided remittance is affected within 1.5 year from the date of issue of
import license.
The name of the importer on the bill of exchange does not differ from that on the import
license. The tenor of the bill should be valid. See that the goods are not shipped prior to
the date of opening of L/C or the documents are not stated.
The goods are consigned or endorsed in the favor of the bank only opening the letter of
credit, and in no case it should be consigned to the importer directly.

Retirement of Documents
When the opening bank against a letter of credit receives documents. The customer
retires the documents under different arrangements e.g.
Retirement against payment by the importer
Retirement of documents in case of None-payment by the importer
Retirement of documents under trust receipt

Retirement against Payment by the Importer

The importer approaches the bank for retirement of the shipping documents. Mark is
calculated and recovered on the bill amount for 230 days @ 12.55% for each RS. 100/- or
part thereof on payment against documents (PAD) for intimation purpose only.

33

Entries Passed by the Bank

Debit

importer a/c

Credit

PLS-payment against documents A/C

Credit:

PLS-income a/c mark-up recovered on PAD

Credit:

telegram/telex/postage charges a/c.

Retirement of Documents under Trust Receipt

Shipping documents are released to the importer on trust, that he may get the goods
cleared from the custom authority by him, sell the good, and later pay back the bank.
Trust receipt financing is limited to first class customers only as the bank reposed fullest
confidence on the importer. Documents are obtained from the customer. The finance is
provided for the period of 45 days only.
Calculation of Amount of Finance
Rupee value of bill plus foreign bank charges plus taxes, less SBP margin restriction =
Amount of finance
Mark up is calculated @ 0.43 RS. Per 1000 per day on the amount of finance utilized.
After the retirement of documents the opening bank then transmits the funds to the
negotiating bank. The exporter will receive the payment from the negotiating bank.

Strength:
MCB Bank Ltd has a story financial position in the country. It is carrying huge
profit due to efficient working
Its a local bank has deep root with a huge network.

34

 MCB Bank Ltd has got a public confidence due to its very secure transaction.
Business people and other do their transaction through this bank because they feel
that their money is death with safe and sound.
It is also providing evening banking has a vast operation network.
MCB Bank Ltd is also providing training and research facilities in the area of
business administration and management.
MCB Bank Ltd is also providing with online banking and recently launched
mobile banking.
MCB Bank Ltd is market leader
MCB Bank Ltd is providing with the best customer service and this is due to the
hard work of staff.
MCB Bank Ltd has got the competitive edge in social responsibility over its
competitors.
MCB Bank Ltd is also playing very important role in developing the economy. If
the economy system is not properly organized it create hurdles for development of
the country.
Weakness:
Mostly work load increases on the employees so mostly they have to do over
time to decrease this load appropriate number of employees should be there in
branch.
The bank has the poor quality counter service in the branch. It does not give equal
importance to all customers.
It has poor ATM services and mostly there is a network problem in the branch.
They have fewer shares in import export business.
Lack of long term and short term plans.

Opportunities:
MCB Bank Ltd introduces new products and service
MCB Bank Ltd have new technology and electric banking.
MCB Bank Ltd should introduce new deposits schemes to attract different people
MCB Bank Ltd has a very good repute in the market so new business market can
be captured.
MCB Bank Ltd should concentrated more on agriculture and industrial sector.
They should provide finances to farmer on both long and short term plans.

Threats:
The establishment of new private financial institutions is the biggest threat to
MCB BANK LTD

35

 Other threat to MCB Bank Ltd is by the Government sponsored Schemes.

One of the major threats to MCB Bank Ltd is from the ad economic situation of
the country.

RATIOS ANALYSIS
Ratio analysis:
is an important and age-old technique of financial analysis. Ratios are important
and helpful in the reference that:

These simplify the comprehension of financial statement and tell the whole
story of changes in the financial conditions of the business.

These provide data for inter-firm comparison. The ratios highlight the
factors associated with successful and unsuccessful firms, also reveal strong
and weak firms.

These help in planning and forecasting these can assist management in its
basic functions of forecasting, planning, coordination and control.

These help in investment decision in case of investor and lending decision

in case of Bankers etc.
However, the ratios are only indicators, they cannot be taken as final
regarding good or bad financial position of the business other things have
also to be seen.

Gross Spread Ratio:

= Net markup income
Gross Mark UP income

2012

2011

2010

2009

2008

61.10%

75.60%

82.44%

83.34%

77.35%

36

90.00%
80.00%
70.00%
60.00%
50.00%
East

40.00%
30.00%
20.00%
10.00%
0.00%
2012

2011

2010

2009

2008

The gross spread ratio tells the amount of interest earned with relation to amount of
interest expensed The GSR remains at , 61.10%%, 75.60%%, 82.24%, 83.34%, 77.355in
2008, 07, 06,05, and 2004 respectively. Ratios show that the bank did not perform well
in last three years .

Gross Profit Margin:

=

Gross Profit
Sales

x 100

2012

2011

2010

2009

2008

12.40%

18.67%

19.66%

17.86%

16.58%

25.00%
20.00%
15.00%
GP Margin

10.00%
5.00%
0.00%
2012

2011

2010

2009

2008

37

GP margin is a relation between the gross profit and the sales of any organization, higher
the GP margin better the firm is in the position to meet its operating expenses, GP margin
in the last five years is at lower sides.

Net Profit Margin:

=

Net Income
Sales

x 100

2012

2011

2010

2009

2008

4.35%

5.67%

9.67%

7.89%

6.65%

12.00%
10.00%
8.00%
6.00%
4.00%

NP Margin

2.00%
0.00%

38

Net profit margin shows the relation between the earning after interest and taxes and
sales, as major objective of different organizations is profit maximization but NP margin
has shown decreasing trend in the last five years, which is not a very good sign for MCB.

Current Ratio:
The current ratio expresses the relationship between the firm current assets and its
liabilities. It is calculated as follows:
Current ratio = Current Assets
Current Liabilities

2012

2011

2010

2009

2008

1.73

2.22

1.66

1.91

2.78

3
2.5
2
1.5

Current Ratio

1
0.5
0
2007

2008

2009

2010

2011

2012

2013

39

Current ratio shoes the ability of firm to pay its short term obligations,
According to thumb rule the current ratio of any organization should be
2 or more than 2, its mean current asset should be 2 times than
current liability, in our case current ratio most of the times was more
than 2 which is a healthy sign

Working Capital:
WC= current asset-current liabilities
2012

80,392,807

2011

95,491,135

2010

74155,644

2009

101,392,474

100,000,000
95,000,000
90,000,000
85,000,000

working capital

80,000,000
75,000,000
70,000,000
2012

2011

2010

2009

Working capital is the difference between the current assets and current liabilities, higher
the working capital better an organization can meet its day to day expenses, unfortunately
in our case of MCB bank working capital is showing a decreasing trend which is not a
good sign

Total Asset Turnover:

40

Asset turnover is the relationship between sales and asset. Total asset turnover indicates
the efficiency with which the firm uses all its assets to generate sales. It is calculated as
follows:

Total Asset Turnover =

sales
Total Assets

2012

2011

2010

2009

0.07

0.06

0.069

0.08

0.08
0.07
0.06
0.05
0.04

total asset turnover

0.03
0.02
0.01
0
2012

2011

2010

2009

Total Asset turnover shows how many times sakes have been generated by using total
assets of MCB, in MCB total asset turnover are almost the same in the last five years.

Income expense Ratio:

= income
Expense

2012

2011

2010

2009

2008

41

4.77

5.38

4.01

3.12

1.62

6
5
4
3

income/expense ratio

2
1
0
2012

2011

2010

2009

2008

Income over expense ratio shows, how many times income is greater than the expenses,
according to financial analysts Income over expense ratio should be greater, although
income over expense ratio has decreased in 2008, yet this ratio in the last five years is
quite satisfactory

Return on Equity:
This ratio shows the profit attributable to the amount invested by the owners of the
business. It also shows potential investors into the business what they might hope to
receive as a return. This ratio is calculated as follows:

Return on equity= Net income

Total equity

2012

2011

2010

2009

2008

26.11%

37.66%

45%

64.87%

28.73%

Roe stands for return on equity. The higher value of return on common equity shows the
higher return earned on the common stockholders investment in the firm. It is higher over
the years but lower in 2008 due to economic instability.

42

Return on Assets:
The rate of return on total assets indicates the degree of efficiency with which
management has used the assets of the enterprise during an accounting period. Return on
asset is calculated as follows:

Return on asset =

net income
Total asset

2012

2011

2010

2009

2008

3.46%

4.06%

3.97%

3.20%

0.91%

4.50%
4.00%
3.50%
3.00%
2.50%
ROA

2.00%
1.50%
1.00%
0.50%
0.00%
2012

2011

2010

2009

2008

ROA shows relation between the earning after tax and total assets through which the
profit has been generated, in 2008 ROA was 3.45% , whereas in 2004 ROA was at lowest
point

Advance to Deposit Ratio:

= Advances
Deposits

2012

2011

2010

2009

2008

43

79.48%

74.96%

77%

78.63%

62.12%

80.00%
70.00%
60.00%
50.00%
40.00%

Advance/ Deposit

30.00%
20.00%
10.00%
0.00%
2012

2011

2010

2009

2008

Advance over deposit ratio shows true picture of banking financial org, because
this ratio shows how much bank has landed and how much bank has borrowed, in
the last five years MCB advances are greater then its deposits which is not a good
sign.

Average Rate of Return:

= Marked Up Earned
Net Advances

2012

2011

2010

2009

2008

14.23%

13.00%

9.85%

10.85%

11.46%

44

16.00%
14.00%
12.00%
10.00%
8.00%

ARR

6.00%
4.00%
2.00%
0.00%
2012

2011

2010

2009

2008

Average rate of return shows, at what % bank is earning on its deposits, in 2008 ARR was 14%,
which is the maximum limit , where as in 2006 it was 9.85% which was minimum limit.

Average cost of Deposits

= Interest Expensed
Deposits

2012

2011

2010

2009

2008

2.69%

1.76%

1.21%

2.36%

1.19%

3.00%
2.50%
2.00%
1.50%

Avg Cost of Deposit

1.00%
0.50%
0.00%
2012

2011

2010

2009

2008

Debt Rate:
This is measure of the financial strength that reflects the proportion of the capital which
has been funded by debt. This ratio is calculated as follows:

45

Debt ratio = Total liabilities

Total assets

2012

2011

2010

86.57%

88.06%

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

Debt Ratio

2012

2011

2010

92.06%

2009

2009

2008

75%

83%

2008

Debt ratio shows the formation of capital, percentage of debt and equity in the capital
structure, debt ratio was 86.57%, 88.06%,92.06%,75%, 83% in 2008, 07,06,05,04
respectively.

Price Earning Ratio:

=Market Price Per Share of Common Stock.
Earning Per Share

2012

2011

2010

2009

2008

17.24

16.46

10.52

7.86

8.14

Earning Per Share:

46

=Earning available for common stock

No of Shares of Common Stock Outstanding.

2012
25.52

2011

2010

2009

2008

24.30

23.40

21.36

7.21

30
25
20
15

Earning Per Share

10
5
0
2012

2011

2010

2009

2008

47

Implementation of class Learning

Management Concept:
MCB is centralize organization
Structure of MCB is traditional ( Hierarchal)
MCB is serving the society according to the concept of social responsibility
Marketing Concept:
Way of customer dealing
Promotion Scheme
Advertisement
Need based product
Accounting and finance:
Financial statement are prepared according GAAP
MCB Account different from the bank
Account are maintained on daily basis
MCB earns profit from investment in the other organization, institution, and
business.
MCB finance the major companies of our country
HR Concepts:
Training
Promotion on seniority and performance
Annual Incentive
Recruitment in the formal way
Recruitment on reference basis and on merit basis
Economics:
Political influence
Economic growth
48

 Contributions to decrease the unemployment

I LEARNT IN THE ORGANIZATION:

During my internship, I learn about the following things.

About the environment and see how the environment is different lie here.
About the personality and see how to maintain and adopt the personality
according to environment.
About the time management and to see how to time spend with my own job
Also learn about the coordination with the staff and customer.
See there how to communicate with the customer and Staff
Also learn how to deal with different categories of the customer.

Recommendations:

MCB did good progress in Multan. But lack of automation and

implementation of Information Technology the systems efficiency is still too slow. So it
is recommended that to make the system faster and reliable more and more technology
should be adopted..

There is no Information desk at the bank customer dealing area. Most of the
people wander around to find where they need to go. There should be present to guide the
customer according to the need.

All advance should be made by getting the maximum security and should
focus on productive work

The bank should develop a comprehensive recruitment policy to make only

the competent ones to be on the jobs.

There is a possibility of establishing a task force to ascertain the effectiveness

of the policies being implement.

49


The behavior of the employees, especially on the counter have to be strictly
monitored and check

All the advance should be made by getting the maximum security and should
focus on productive work

There is a lack of the promotional element in the planning and budgetary

decision of the bank that has to think seriously.

50