INTERNSHIP REPORT

ON
MCB BANK LIMITED

Specialization: Marketing

Supervisor: Dr. Muhammad Ismail Soomro

Submitted By:

Name: IRFAN ALI CHANNA

Roll #: BBA 16-47

Address: ChannaMohallah P.O BOX Sobhodero

Contact #0308-2133578

Date of Submission: 20-11-2019

SHAH ABDUL LATIF UNIVERSITY KHAIRPUR

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Copy of the internship certificate

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 Dedication:

Every challenging work need self-efforts as well as guidance of elders especially those who are
very close to my heart which help me in difficult time and encourage me in every aspect of life.
This report is dedicated to Branch Manager Ms Nusrat Imtiaz and GBO Mr. Tanveer Ali Tunio
because he had guide me about internship program, and also whole family members whose’
praise, support and encouragement of day and night make me able to get such success and honor
and their support helped me to face the difficulties in life and make it possible for this
accomplish this milestone.

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 ACKNOWLEDGEMENT

All thanks are due only to ALLAH ALMIGHTY, the most gracious and most merciful who
enabled me to complete this internship report.

I also show my gratitude to my loving parents and my humble teachers who make me able to be
at this position. I would like to express my sincere gratitude to my respected Chairman Prof.
Mehoon Khan Lagari for giving me the opportunity to do internship in MCB. This report is
based on the experience of my internship in a most respectable bank MCB Sobhodero Branch.

I am also very thankful to the staff of MCB Branch Sobhodero especially, Mis Nusrat Imtiaz ,
Sir Amjad Ali Shaikh and Sir Tanveer Ali Tunio who gave me the constant encouragement,
sincere advice and suggestions which they rendered throughout the study, towards accomplish of
this internship report.

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 EXECUTIVE SUMMARY

MCB bank limited (formerly Muslim Commercial bank limited) has a solid foundation of over
67 years in Pakistan with a network of above 1,374 branches, over 850 of which are automated
branches, over 682+ ATM nationwide.

MCB’s operations continued to be streamlined with focus on rationalization of expenses, re –

alignment of back and processing to increase productivity, enhancement of customer service
standards, process efficiency and controls. The bank has taken the `lead in introducing the
innovative concepts of centralizing trade services in the country by providing centralized foreign
trade services to branches with a view to improve efficiency, expertise and reduce delivery cost.

During my internship in MCB Sobhodero branch I worked in sales department,

remittance department, advances , cash department, customer service department. I successfully
completed all the tasks/duties that were assigned to me.

I also learned bank’s correspondence with their customers and within branches. I learned
about documentation requirements and record keeping for different activities and processes,
especially the requirement for different kinds of account opening.

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 Table of Contents

Scanned Copy of Internship…………………………………………………….2

Dedication…………………………………………………………………………3

Acknowledgement………………………………………………………………...4

Executive Summary……………………………………………………………….5

1. History of Organization………………………………………………………...8

2. Vision Statement………………………………………………………………..9

3. Mission Statement………………………………………………………………9

4 .Out Values………………………………………………………………………10

5. Organizational Structure………………………………………………………11

6. Branch profile…………………………………………………………………..12

7. Learning during internship…………………………………………………....12

8. Departments…………………………………………………………………..…15

8.1Cash department……………………………………………………...15

8.2Sales department………………………………….………………….…15

8.2 (i) Account opening………………………..………………….15

8. 3(ii) Types of account…………………………………………..16

8.4(iii) Issuance of cheque book…………………………………..18

8.5(vi) Closing of account…………………………………………18

8.3) Clearing department……………………………………………………..19

8.4) Remittance department………………………………………………......20

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12) SWOT analysis ………………………………………………………………25

13) Conclusion……………………………………………………………………28

14) Recommendation and suggestion……………………………………………29

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 HISTORICAL OVERVIEW

Muslim Commercial Bank Limited was the first name Mansoor CO-operative Bank. Then that
name was change on Muslim Commercial Bank limited. MCB formally known as Muslim was
the Commercial Bank Limited was incorporated by the ADAMJEE Group on July 9, 1947 in
Kolkata Bengal under the Indian companies Act VII of 1913 as a limited company. But due to
the changing scenario of the region, the certificate of incorporation was issued on 17 August,
1948 with a delay of almost 1 year and certificate of issued at Chittagong. The first office of the
company established at Dacca and Mr. G.M Adamjee was appointed its first chairman. It was
incorporated with an authorized capital of 15 million; the bank transferred its registered head
office from Dhaka to Karachi on August 23, 1956 through a special resolution.

The bank was established with a view to provide banking facilities to the business community of
south Asia. The bank was nationalized in 1974 during the period of Zulfiqar Ali Bhutto by the
recommendation of World Bank and IMF.

1991 Privatization of MCB Bank.

2005 Change of name from Muslim Commercial Bank to MCB Bank

20061stPakistani Bank to issue Global Depository Receipts

2008 Strategic Acquisition by Maybank – Largest private sector transaction

In 2008 the head office of MCB was shifted from Karachi to Lahore in a newly constructed
building namely MCB house located at ShareaGhousulAzam commonly known as Jail Road.

2012 Total Deposits of the bank crossed threshold of PKR 500 Billion

2015 Total Deposits of the bank crossed threshold of PKR 700 Billion
Incorporation of MCB Islamic Banking Subsidiary, the 1st Pakistani bank to have separate
Islamic Banking Subsidiary ,total Assets of the bank achieved hallmark of PKR 1 Trillion

2017 Merger of NIB Bank with & into MCB Bank Limited

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2018 Transfer of 90 branches to MCB Islamic Banking

2018 Total Deposits of the bank crossed threshold of PKR 1 Trillion

MCB has over 1,374 local branches (as of 2018-19) All are programmed branches over 682+
ATM cards in 182 cities nationwide.

VISSION STATEMENT

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

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.

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 OUT VALUES

• Integrity: We are the trustees of public funds and serve our community with
integrity. We believe in being the best at always doing the right thing. We deliver on
our responsibilities and commitments to our customers as well as our colleague.

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

• Excellence: We take personal responsibility for our role as leaders in the pursuit of
excellence. We are a performance driven, result oriented organization where merit is
the only criterion for reward.

• Customer Centricity: Our customers are at the heart of everything we do. We thrive
on the challenge of understanding their needs and aspirations, both realized and
unrealized. We make every effort to exceed customer expectations through superior
services and solutions.

• Innovation: We encourage and reward people who challenge the status quo and think
beyond the boundaries of the conventional. Our teams work together for the smooth
and efficient implementation of ideas and initiative

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 ORGANIZATIONAL STRUCTURE

Board of Directors

Chairman

President

Audit & Whole sale Consumer Islamic Commercia Treasury

RAR banking banking banking l banking and forex

Corporate Special Risk Complian Strategic Financial

affairs asset manageme ce & planning & control
investment
manageme nt control
banking
nt

Information Human Operations

technology resource
management

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 Branch Profile
• Branch of MCB was opened in Sobhodero on 5th August 1974. I did my internship in MCB
Sobhodero branch
MANAGEMENT OF THE BRANCH

• Branch manager/ Operation Manager: MisNusratImtiaz

• General bank officer: Mazhar Ali Tunio

• Cashier: Mr. Muhammad Ali

LEARNING DURING INTERNSHIP

During my internship in MCB Sobhodero branch I worked in Remittances, Advances, Foreign

Exchange and Customer Service Office department, sales, cash department and I successfully
completed all the task/duties that were assigned to me.

The duties that I performed and the thing I learned each day are given as follows:

1st Week:

• Functions which are performed in MCB Sobhodero branch

• Learn how to fill deposit slip for cheques and cash

• Observe the working of branch manager

• Learn how to attend phone call

2nd Week:

• Learn about the types of account

• Learn about the requirements of account opening

• Fill out the account opening form

• Help out the customers in filling the cheque

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 • Prepare debit vouchers for new cheque book charges

3rd Week:

• Receive cheque book requisition

• Issuance of cheque book

• Entries of new cheque book

• Issue manual cheque book

• Learn about the cheque stop payment

Deletion of cheque book

• Make clearance cheque entries in register

4th Week:

• Learn how to fill fund transfer application for Demand draft.

• Pay order

• Internal transfer

• ATM claims and their entries

• Receive ATM forms

• Issuance of ATM card

• Learn to prepare the debit voucher and credit voucher for utility bills

5thWeek:

• Learning about the online money transfer

• Wrote application for the new cheque book request in case of lost of “Cheque
book requisition” by customer

• Observe the foreign remittance operations

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 • Stamping on the invoice of foreign remittance

• Take the concept of online banking

6thWeek:

• Learn about to opening the Block / darmming accounts of customers To call him
& fill the applications to approve their accounts.

• Receive the applications for the account closing

• Fill the form for the request of change in residence address

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 DEPARTMENTS
• Cash department

• Sales department

• Clearing department

• Remittance 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 sheets, books, ledger of account.

Sales Department

Account opening

This department performs various functions among them the first and most important
function is Account opening. The bank reserves the right to open any account, which in its
opinion is suitable as a customer. The process of opening an account is very simple and
anybody that would like to open his account could do it easily without any difficulty.

Nature of account:

• Current

• Basic banking account( BBA)

• PLS saving

• Saving 365 gold

Current account: MCB Bank offers a variety of current accounts to cater to the everyday
Transactional needs of various customers.
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Low minimum balance requirements.
Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.
The bank did not give any kind of profits to this type of account holders & customers did not pay
Zakat.

Basic Banking account: There is no any service charges of basic banking account. Two
withdrawals and two deposit are allowed in one month. If more than two withdrawals and
deposits than there are service charges. Profit provides on the BBA is 5%.

PLS saving: MCB Savings Account offers you one of the most suitable ways to manage your
hard-earned money. MCB Bank offers a wide array of savings products that suit short term
growth & transactional needs. MCB savings accounts offer attractive profit rates as well as
flexibility to transact. PLS savings has a lower minimum balance requirement.

Saving 365 Gold: This account is newly developed of MCB and it provides flexibility of
saving account to business people. Profit on deposits will be payable on daily product basis on
balance of RS. 500,000/- and above.. There will be no restriction on withdrawal from the
account. Zakat and withholding Tax is also applicable on the account opened under this scheme.

• Minimum balance is Rs.500,000/=

• Below minimum balance, profit calculation ignored

• Profit calculated on daily basis

• Profit paid on annually basis

• Zakat deducted on @ 2.5%

• The higher the balance, higher the rate is offered.

• Profit paid into your account every month

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 Types of account:

• Individual

• Single

• joint

Common Requirements of account opening:

• Valid CNIC copy

• Source of income

• Evidence of address

• Account opening application, Salary certificate, and other documents.

Procedure for Account Opening

• The customer would like to open his account is required to meet with the manager or
personal banking officer, who gives him an Application Form specially used for account
opening.

• Application Forms are available for each type of account. Along with the form, a Card
for specimen signature is also provided to the customer which is scanned and loaded to
computer

• Manager has every right not to accept this contract if he is not satisfied by the details
provided by the customer. If both accept the contract, then the next step is official
Account opening.

• After opening a saving or current account every applicant’s data is entered into the
computer to maintain a safe record and the application form is properly filled so that it
can be available when necessary. Checking officer is responsible to match the manual
application form with the computerized Account opening file.

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• The “Signature Specimen Card” as mentioned above, contains two signatures of an
applicant. The banker uses this card at the time when he receives the cheque for payment
or authentication of different transactions. Then he compares customer’s signature with
the signature on the cheque for avoiding fraud.

Issuance of Cheque Book:

• The cheaque book is issued against the valid requisition slip signed by the account
holder

• Customer can receive cheque book after 4 to 5 days.

• Current account cheque book contains 25 leafs and charges are 10 per leaf

• Saving account cheque book contains 25 leafs and charges are 10 per leaf.

• Customer have to collect their new cheque book with in 2 months other wise
cheque book will be deleted.

• The account holder can draw sums from his account by means of cheque provided
to him by the bank for that particular account.

Closing of an Account:

There are number of reasons of closing an account. Some are listed below:

• If customer desires to close his account due to any reason

• In case of death of one account holder
• Bankruptcy of the account holder
• If an account contains nil balance or not up to the requirement of rules.
• Any other reason for which the banks thinks to terminate the relation ship
• Bank adopts the practice while closing an account that the accounts Holder personally
come to the Bank premises or any official of the bank meets the account holder and
satisfies him that the desire of the customer is genuine.

• Bank charges Rs.250/- for closing the account and hands over the whole balance to
the account holder through cash payment or by preparing Paya order.

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 • MCB Investment Services:
Make the most of your wealth with investment opportunities that match your unique financial
aspirations. MCB Investment Services offer distribution of mutual funds managed by the leading
fund managers of Pakistan. We can suggest the products most suited for customers needs, or
work with customer to create personalized solution completely focused on customer expectations
of the capital markets.

CLEARING DEPARTMENT

Every banker acts both as a paying as well as a collecting banker. It is however an important
function of crossed cheques. A large part of this work is carried out through the banker clearing
house.

A clearing house is a place where representative of all banks of the city get together on settle the
receipt and payment of cheques drawn on each other. As the collecting banker runs certain risk
receipt of their ownership the law has provided certain protections to the banks.

TYPES OF CHEQUES COLLECTED

Transfer cheques

Transfer cheques are those cheques, which are collected and paid by the same branch of
bank.

• Transfer delivery cheques

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 Transfer delivery cheaques are those cheques, which are collected and paid by two different
branches of the same bank situated in the same city.

• Clearing cheques

Clearing cheques are those cheques, which are drawn on the branches of some other bank of
the same city or of the same area, which is covered by a particular clearing house.

• Cheque Collection; Collection cheques are those cheques, which are drawn on the
branches of either the same bank or of another bank, but those branches, are not in the
same city or they are not the members of clearing house.

REMITANCE DEPARTMENT

Transfer of money or equivalent to money from one branch to another branch of the same bank
is called remittance.

• Home remittance

MCB brings FAST and FREE Home Remittance service to beneficiaries in Pakistan. With our
large network of over 1100 branches, MCB can deliver your remittances to every part of
Pakistan.

MCB Fast Transfer & MCB Pak Cash enables you, the Non Resident Pakistanis, to send money
to your loved ones in Pakistan quickly, easily and conveniently. MCB Home Remittance Service
is FREE and available at all MCB.

• Mode of Payment

MCB uses following types of Mode of Payment:

• Demand Draft (DD)

• Pay order (PO)
• Mail Transfer (MT)
• Telegraphic Transfer (TT)
• Requirements: Remittance Reference Number and original CNIC provided by the
receiver/ beneficiary. For SMS alert valid mobile number of beneficiary.

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Now it has become easier and safer method both for the client and banker to transfer their money
from one branch to another within the city and outside the city through the instruments.

• Originating Branch

It is the branch, which issues advice of remittance to other branch.

• Responding Branch

It is the branch which receives instrument for remittance.

When customer requires a facility of remittance, he should be asked to complete the

prescribed fund transfer application Same prescribed application form is used for MT, TT, DD,
and PO.

This application form states the amount of the remittance, the name and address of the payee, the
name of originating and responding branch. The applicant and the bank officer who have been
duly authorized to act on his behalf should sign this application form.

• Demand Draft (DD)

• 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 negotiable instrument

• Thump impressions is not acceptable on DD.

• Legal provisions are same as that of cheque.

• It is not necessary for the demand draft that the applicant or recipient’s account
should be open in originating and responding branches.

• For demand draft, bank charges excise duty and commission which is bank’s income.
It is one of the cheapest methods to transfer money within the country or outside the
country.

• The following are the parties:

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 • Purchaser

• Issuing bank

• Drawer branch

Procedure for Demand Draft

• Applicant has to fill in the fund transfer application form for availing the facility of
demand draft. After depositing the amount of draft, remittance officer prepares the
cheque/leaf of demand draft.

• When banker issues the draft to the customer, he also records customer particulars in
a demand draft register where record is maintain branch wise. Responding branch and
originating branch debit/credit the head office account and send the daily statement of
transaction to head office.

• Pay Order (PO)

• Pay order is called “Banker’s Cheque”. Pay order is written order, which is issued and
received by the same bank or drawn and payable on same branch. In this case
originating and responding branches will be same 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 within the city.

• The procedure of preparing of PO Is same as that of DD.

• For account holder the charges are RS 100+16 and if the pay order is prepared by
cash than Rs. 200 +32. The bank charges excise duty and flat rate of 16%.

• All records of issued and paid must be maintained.

• Credit voucher should be prepared.

• Parties in pay order:

• Purchaser

• Issuing bank

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 • drawer branch

• Payee

• Mail Transfer (MT)

• The transfer of money from one branch to another branch of the same bank with in or
out of the city through mail or courier service is called mail transfer.

• Mail transfer is not a negotiable instrument.

• The procedure of the preparation of MT is same as that of DD.

• In mail transfer it is obligatory that the Beneficiary must have the account in
responding Branch. However, the applicant may or may not be the account holder of
the issuing branch.

• Fund transfer application form is used for MT. After receiving the money to be
remitted,

Branch prepares MT advice in duplicate and sends one copy to responding branch and other
becomes voucher of the bank.

Telegraphic transfer:

• Transfer of funds from one branch to another branch of the same bank or upon other bank
under special arrangement.

• Telegraphic transfer is not negotiable

• The funds are not payable to bearer

• Minor can not avail this facility.

• Full name of the beneficiary or account number should be mention in the application form

• Instructions regarding mode of payment should be obtained.

• A record in the maintains outward register should be maintained

• All the remittance must be controlled through number.

• Parties:

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• Applicant

• Drawing branch

• Drawer branch

• Beneficiary

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 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 Sobhodero branch 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.

• The joining of experienced people, advanced management, advance setup and

facilities gave MCB Sobhodero branch an edge over its competitors.

• Extension and improvement in services to domestic as well as foreign

customers.

• MCB has long term vision which plays a very important role in organization’s
success.

• WEAKNESSES of MCB Sobhodero Branch

Although MCB is a well performing bank and its deposits are growing day-by-day and so
its profitability, but as we know that nothing is perfect, there is always a room for
improvement. Some of the flaws that I have observed during my training period are as
under:

• 24-hours services are not available.

• No any kind of ATM machine service.
• Another pitfall I observed is that there is no proper timing of the bank and there is
made unnecessary delays in the banking transactions, which might not be a good
sign for the bank from future prosperity point of view.

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 • There is a lack of incentives for employees, which causes most of the employees
to work with heavy heart, and as a result of which conflicts arise between lower
and higher officers.
• 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.

• Opportunities

• Growing policies of government on business and commerce sector provides MCB

Sobhodero branch opportunity to efficiently meet with the business people’s
requirement and financing facilities

• To open overseas branches throughout the world like National Bank of Pakistan
and Habib Bank Limited or merger with other foreign banks outside Pakistan

• Benefits from incoming expertise and competition.

THREATS

• Changes in government policies have affected the banking business. Still banks have to wait
to get permission of state bank.

• Privatization of other domestic banks has also increased their services.

• Highly specialized and attractive services provide by the foreign banks to their customers.

• Growing global technological advances.

• High inflation rate.

Skills required during internship

• Communication skills

• Development of professional attitude.

• Learning the art of self management.

• Punctuality.

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 • Practical approach towards problem solving and creative

Purpose of Internship ;

• The main purpose of doing internship is to approve my knowledge & to get

experience regarding my field of Business Administration.

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 Conclusion

During my entire training program, beginning from the internship till writing this report,
I have realized that the MCB is a deliberate structured organization and it is serving its
customers all over Pakistan through its wide spread network of branches. It is offering
many services and products at easy markup rates to the valued customers. The customers
are valued and are served at the first priority. The employees of the Bank are very much
cooperative and work whole heartedly thus working hard for the success of the Bank.

Selections are made on the basis of merit but references and approaches are very much
popular in MCB. The Bank serves the people well.

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RECRECOMMENDATION OR SUGGESTIONS

The following are the some positive suggestion & recommendation for the MCB.

 In my opinion the transaction process should be short so that the time is saved
for both the customers and the bank.
 Staff strength should be optimized and professional qualified persons should
behired on the basis of merit.
 Personal Marketing & Professional attitude.
 Remove the Nepotism & Create Delegation of Authority.
 It is recommended that proper training should be provided to the staff
members which will ultimately increase the performance of Bank over all.
 To sustain the job satisfaction, MCB needs to offer promotions and incentives
from time to time.
 Environment and Atmosphere should be more renovated and decorated at the
Branch offices.
 The bank should spend more on renovation of the branches to improve
environment and atmosphere to attract the customers
 There is lack of counters in the bank; more counters shall be introduced to
facilitate the customers.
 Only two guards were present at the branch, the security level was not so good
at the branch; security needs to be looked after.
 For old aged customers and pensioners the Bank needs to introduce a new
counter as well which is dedicated to them all day long.
 At our branch there was no separate counter for Utility bills, there should be a
separate counter for all sorts of utility bills.
 They need to enhance the process of allotting loans to be in a quicker manner.

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