Fahad MCB

Internship Report On MCB
Internship Report On
Submitted To:
Zahid Ali
Presented By:
Fahad Sagheer Roll # 68 M.Com (Eve) Accounts Session 2009-11 Department of Commerce
Preface
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To write an internship report need a lot of efforts. I had piles of date to put on paper but the limitation on time made me surrender. To write a report on MCB, especially its financial analysis of past five years was as to square as circle. It may not be a flawless effort; it may be incomplete, so in this regard I hope that my teachers help me out to improve it. In this concern I was given an opportunity to having a six weeks training in todays well reputed MCB BANK. During my whole time I was visited through different cells of the bank and was thoroughly briefed about the procedure and working by cordial senior staff of there. My report is all based on what I have learnt there. I hope that my report will given you good overlook of all the banking related matters. Our department has therefore been seized with the need for developing training regulation, which not only cater for the above stated requirements but would also help in providing experience to trainees to meet the future needs of the market place.
Fahad Sagheer
EXECUTIVE SUMMARY
Internship is an important part of MCB programmed. By internship the abilities of doing work in practical life enhanced. I did my internship in MCB Fareed Gate

Branch Bahawalpur. During this internship I learn a lot about the professional working environment that was totally different from what I had learned. But the basic principle of working remains same i.e. working hard, actively and with full devotion. I worked there in different departments and all the staff proved very helpful to me. I learn there how accounts can be opened in a bank and there are how many types of accounts. What are their main features? I also learned about the main difference between Demand Draft pay order and Rupees Travelers Cheques. Additionally I also learned that how money transfers from one city to other city, one branch of the bank to the other branch of the bank. In advances section knowledge of advancing loans and their collection procedure was gained. In this report I try to describe each and every work that I do there. I also gave the introduction of MCB plus try to describe its basic products and services in details. Then I also try to present the true financial picture of MCB on the basis of financial analysis of previous five years.
Acknowledgement
All praises are for Allah almighty that has bestowed upon human being the crown of creation and has endowed him with knowledge and wisdom. After Allah, is the last prophet Mohammed (P.B.U.H) who brought for us revelation and unlimited knowledge and civilized the barbarian human being. Although this report base only my name but numerous people were very important to the development of this report without the support of them I could never successfully completed the internship as well as the report. I am highly thanking full to the staff member of MCB bank limited. Who really cooperated with me and provide me their complete guidance. As banks are very much sensitive about their secrecy, even then after taking an understanding, they let me handle their delicate operations. My special thanks to Sir Zahid Ali incharge of internship and placement who arranged internship and provided me with his kind guidance at each and every step whenever I felt difficulty and he made me capable of making financial analysis of financial statement of this organization.
Dedication
ALMIGHTY ALLAH; HE gave me the power and the will to continue and to complete this report as best as I can. Without HIS guidance, I wouldve strayed in the dark for ages and wouldnt have had a clue of what I was doing. HE WHO is in the Heavens showed me the right way and it is because of HIS never ending help that I am able to finish this report! I also dedicate this report to MCB Fareed Gate Branch Bahawalpur. Manager Mr. Gulam Fareed Abasi. If it wasnt for him, no one wouldve really acknowledged who I was and what I was doing here. He was there for me whenever I needed him and despite the fact that work has been keeping him really very busy the past couple of months, He has always been there for me and for that I have literally no words to thank him with! Lastly, I dedicate this report to Change! May time bring about a change in the system the world is working on today and may the good days shine upon us someday soon and may people in Our Country stand up to change what is wrong and to keep what is right and may We promise Ourselves and the world never to change again for the worst! For a better, brighter Future and a stronger, happier and blessed Pakistan!!
Table of Contents
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 15 16 17 18 19
Topics
EXECUTIVE SUMMARY HISTORY OF BANKING MCB HISTORY AND BACKGROUND INTRODUCTION CORPORATE INFORMATION REGIONAL BRANCH Bahawal pur REGINAL STAFF BRANCH MISSION AND VISION STATEMENT OF MCB ORGANIZATIONAL STRUCTURE BRANCH STRUCTURE HIERARCHY CHART OF MCB DEPARTMENTS AND THEIR WORK RETAIL /GENERAL BANKING OPERATIONS DEPARTMENT FOREIGN EXCHANGE OPERATIONS DEPARTMENT. SPECIALIZED PRODUCTS DIFFERENT TERMS USED IN THE BANK FINANCIAL INFORMATION SWOT ANALYSIS CONCLUSION & SUGGESTION REFRENCES
Page. No 04 08 10 11 12 17 18 19 20 21 21 23 24 58 60 66 68 81 87 89
HISTORY OF BANKING
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Bank is derived from Bancus or Banque or Back. History of banking is traced to 2000 B.C. in Greece. Priests and goldsmiths acted as financial agents by keeping money and valuables of people in temples in strong safes. Thus the first stage in the development of modern banking was accepting of deposits cash from those who had surplus money with them. The goldsmiths issued receipts for the money deposited with them, which began to pass from hand to hand in settlement of transactions as people had confidence in the integrity and solvency of goldsmiths. The receipts were drawn in a way that it entitled the holder to claim the specified amount of money from goldsmiths. These receipts were the earlier bank notes. Thus the second stage in the development of banking was the issue of bank notes. The goldsmiths discovered all the people who had deposited money did not come to withdraw their funds in cash. Only a few people presented the receipts for encashment during a given period of time and they also found that most of the money deposited with them was lying idle. They also found they were being constantly requested for loans on good security. They thus thought it profitable to lend at least some of the money to the needy persons. This proved profitable for them. Instead of charging interest from depositors, they began to give interest on
money deposited with them.

Through experience, banks came to know that they could keep a small proportion of total deposits for meeting demands of customers for cash and could easily lend the rest. They allowed depositors to draw over and above than the money standing to their credit. They thus allowed the overdraft facilities to their depositors and this was the fourth stage in the development of banking. Every bank issued receipts and most allowed overdraft facilities and this caused too much confusion in the system. In order to earn profits, banks not keep adequate reserves to meet demands of customers demands for cash. This failure on the part of bankers to return money caused widespread distress among people. In order to create confidence among people, steps were taken to regulate the banking organization. A conference was held in Nuremberg in 1548 where it was decided that a bank should be set up by the state, which would streamline the banking organization. The first central bank was thus formed in Geneva in 1694. The responsibility of issuing notes is now entrusted to a central bank in each country. With the passage of time, activities of commercial banks increased. They dealt with large number of issues such as obtaining funds, advancing loans to businesses, farmers, households, making investments in stocks, discounting bills of exchange etc. commercial banks are now multi-service organizations and play a very important role in financial markets.
MCB History and Background

Muslim commercial Bank Ltd. was established on July 9, 1947 at Calcutta on the express wishes of the founder of Pakistan Qauid-e-Azam M.A. Jinnah who was deeply concerned with the plight of banking among the Muslim community in India. Muslims in general were at that time not favorably inclined towards joining the banking profession. This was therefore a right step taken by the founder of Pakistan to induct. Muslim Commercial Bank first shifted its head office to Chittagong on August 17, 1947, immediately after independence and finally to Karachi on July 15, 1954, which was the federal capital at that time. With the independence of the country, whatever scarce human resources available were utilized in the banking sector. However, as the branch network was expanding, so was the de for trained manpower to man the newly setup branches as well as the controlling offices. In the period 1947 till 1965, young university graduates were recruited and trained for a year by the training department of SBP and then assigned to the commercial banks. In January 1974, the government of Pakistan decided to nationalize all banks in Pakistan under Pakistan Banks Act 1974. By January 1991, MCB was privatized. The bank has done well since then.
What is a commercial Bank?

A bank or banker is a dealer in credit or more properly a dealer in money. It is an intermediate party between the borrower and the lender. It borrows from one party and lends to another and the difference between the terms on which it borrows and those on which it lends forms the source of its profit.
Or
A bank is a dealer in debtshis own and of other people
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INTRODUCTION
The bank has now completed more than 16 YEARS, since its privatization and it is, indeed, gratifying to note that during this period, MCB has performed well and has sustained its growth in all the major sectors. The well deserved credit, for this good performance and progress, must surely go to the Banks Management, its Directors and, in no small measure, to the entire MCB team for its dedication, concerted efforts and excellent team spirit. MCB has been a pioneer among the banks in Pakistan, particularly in introduction a number of innovative banking products and services. For the first time in the history of Pakistan, these multifarious products mostly in the shape of saving schemes have been introduced by MCB with brand names. This has set the trend and many other banks, both local and foreign, have since followed in MCBs footsteps, by launching new products and services, on similar lines.
OBJECTIVESOF STUDYING THE ORGANIZATION:

My objective to study the organization was to get some know how that how professionals work in their environment, so that the experience I get from here will help me in future.
CORPORATE INFORMATION
The board of directors has the authority in guiding Bank affairs and in making general policies. Some directors are the personnel of the MCB and others are successful businessperson and executives of other major organization. Nine members are included in board of directors, see in a list.
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BOARD OF DIRECTORS:
Mian Mohammad Mansha S.M. Muneer Tariq Rafi Sheikh Mukhtar Ahmed Mohammad Arshad Shahzad Saleem Sarmad Saleem Mian Umer Mansha Aftab Ahmaed Khan Chairman Vice Chairman
Mohammad Aftab manzoor President & Chief Executive
Advisor
Raza Mansha
Audit Committee
Mian Mohamad Mansha Chairman Sheikh Mukhtar Ahmad Member Shahzad Saleem Member
Chief Financial Officer

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Ali Munir
Company Secretary
Tameez-ul-Haque
Auditors
A.F Ferguson & Co. Chartered Accountants M. Yousaf Adil Saleem Chartered Accountants
Legal Advisors
Mandiwalla & Zafar Advocates & Legal Consultant
Registered office
MCB Building, F-6 / G-6 Jinnah Avenue, Isalamabad
Principle Office
Adamjee House, 2nd floor I.I. Chundrigar Road, Karachi
Different banks in Pakistan

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Here different commercial banks are given which are working in Pakistan now a day. These are local and foreign banks.
Nationalized commercial Banks

National Bank of Pakistan First Women Bank
Privatized Banks
Muslim Commercial Bank Allied Bank of Pakistan United Bank Habib Bank
Specialized (State-Owned) Banks

ADBP IDBP Federal Bank for Cooperatives Punjab Pronvincial Cooperatives Bank
Private Banks
Askari Commercial Bank Bank Al-Falah Bank Al Habib Bolan Bank
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Faysal Bank PICIC Commercial Bank Metropolitan Bank Platinum Commercial Bank Prime Commercial Bank Saudi Pak Commercial Bank Soneri Bank The Bank of Khyber The Bank of Punjab Union Bank
Foreign Banks
ABN AMRO Bank N.V Al-Baraka Islamic Bank BSC (EC) American Express Bank Bank of Ceylon Citibank NA Credit Agricole Indsuez Deutsche Bank Doha Bank Habib A.G Zurich Intl Finance Invest. & Comm. Bank Mashreq Bank PSC Meezan Commercial Bank
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Oman international Bank Rupali Bank Societe Bank Standard Chartered Bank The Bank of Tokyo Mitsubishi
REGIONAL OFFICE BAHAWALPUR. LIST OF BRANCHES
Sr. Number Branch Code

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 1023 0496 0738 0497 1136 0498 0157 0493 0805 0699 1031 0536 0488 0534 0510 0502 1164 0535 0512 0684 0546
Branch Name
ADDA SHAHIWALA AHMADPUR EAST BAHAWALPUR FARID GATE BAHAWALPUR GHALLA MANDI BAHAWALPUR EIDGAH BAHAWAL NAGAR KEHROR PACCA CHISTIAN CHAK 42/DB FORT ABBAS FAQIR WALI GILLAWALA HAROONABAD STAR BR. HASILPUR LODHRAN MUBARAK PUR MOUZA DERA IZZAT MAKHDOOM AALI NOORPUR NAURANGA
22 23
24 25
1375 0850
1054 0728
PULL DAOW SHAHEED CHOWK Sooiwala Tailwala

Uch Sharif Yazman
REGIONAL OFFICE STAFF

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NAME OF EXECUTIVE
ASHRAF KHAN M. ABAS SB MISS ZOYA ASHRAF ALTAF HUSSAIN MUHAMMAD ALI SB HAQNAWAZ SB
GRADE
O.G.I O.G.I O.G.II O.G.II O.G.III O.G.III O.G.III KPO CASH INCHARGE NO.OF BRANCHES
613 224 105 35 11 988
M. TARIQ SAEED
MALIK NAVEED SEBTAIN SHAH SB PROVINCE WISE
PUNJAB SINDH NWFP BALOCHISTAN AZAD JAMMU & KASHMIR TOTAL DOMESTIC=
____________________________________________________________________ ____________________________________________________________________
VISION STATEMENT
Challenging And Changing The Way You Bank
MISSION STATEMENT
MCB banks team of committed professionals is dedicated to maintain long-term customer relationship through outstanding service and convenience
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OBJECTIVES
To maximize the deposits. Create excellent environment. Maximize the market share. Focus to corporate customers. Modernizing the banking system.
ORGANIZATIONAL STRUCTURE SHARE HOLDERS
BOARD OF DIRECTORS
CHAIRMAN
SEVP
SEVP
SEVP
SEVP 18
BRANCHES AVPs/OFFICERS GRADE I, II, III
CIRCULAR OFFICES EVPs/SVPs
ZONAL OFFICES VPs/AVPs
BRANCH STRUCTURE
MANAGER
OPERATIONAL MANAGER
CASH
TRANSFER
HIERARCHY CHART OF MCB

SENIOR EXECUTIVE VICE PRESIDENT EXECUTIVE VICE PRESIDENT
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SENIOR VICE PRESIDENT VICE PRESIDENT ASSISTANT VICE PRESIDENT OFFICER GRADE I OFFICER GRADE II OFFICER GRADE III CLERICAL STAFF NON CLERICAL STAFF PEONS
FUNCTIONS OF THE STAFF HIERARCHY WISE

SEVPs & EVPs SVPs & VPs AVPs O.G. I&II O.G. III & Clerical/Non-Clerical Staff Controlling Authority (management) Divisional Head/General Manager/Regional Management Regional Managers/Chief Managers Managers of the Branche Supervising & Supporting Staff
MCBYESTERDAY AND TODAY

Currently the bank is restructuring its organizational structure. In any bank, there are three types of customerspriority banking, commercial banking, and corporate banking, each requiring different kind of products and services. So, in order to better serve all the three types of customers and to provide them with specialized
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services, the bank has been restructured into three parts, Corporate, Commercial and Priority Banking Sectors which are further divided into three sections North, South and Central. A consumer banking division has also been established as part of Retail Banking. It will develop specialized consumer banking products like consumer loans, housing finance, car loans, etc.
Future Plans
The future plans of MCB for the year 2010 are as follows: Business growth through a new set up of Corporate and Commercial Banking groups and Priority Banking Groups. Improvement and re-engineering of current products, services and their processes for Quality Service to the valued customers.
Departments and Their Works

Basically Ahmed Pur East Road Branch Uch Sharif performing three types of operations. On the bases of those operations the bank is divided into three departments. 1. Retail /General banking operations department. 2. Foreign exchange operations department. 3. Finance operations department.
GENERAL BANKING
ACCOUNT OPENING
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The general banking department performs various functions among them the first and most important function is A/C 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 any body that would like to open his account can do so easily without any difficulty.
Requirements for Opening of New Account;

Account opening Form Initial Cash opening Form National Identity Card Copy
Partnership
Requirements for Opening of New Account:
Account opening Form Initial Cash Deposit National Identity Card Copies of all persons Application on Letter Head Partnership Deed
Sole proprietorship
Account opening Form Initial Cash Deposit
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National Identity Card Copy Application on Letter Head
Companies
Account opening Form Initial Cash Deposit National Identity Card Copies of Directors Application on Letter Head Memorandum of Association/ Article of Association Certificate of Incorporation List of Directors duly signed. In account opening first of all a form (AOF) is given to a person who wants to open the account. For each account a specific form is used. The from is filled with
necessary information from the person who wants to open the account, in
which the photocopy of his national identity card, signature on the specimen of signature card and a guarantee is taken from the existing account holder. The minimum amount for account opening is Rs. 2500. A checkbook is issued to the person after completing the procedure. The amount is deposit by a voucher and receipt is given to the person or who wants to open the account.
MAINTENANCE OF EXISTING ACCOUNT

Main responsibility have the account department is to maintain the account of the account holder. Account holder. When the account holder deposit the amount. The account department credits the account the account holder. Or when he draws the amount the department credits make the transaction in his account. It may be due to out side payments to account holder. Or he makes payment to out sides parties to
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make his personal business transactions. If sometime the chequebook is lost from the customers the bank charges Rs.100 for new chequebook issuance. But at the time of account opening there are no charges for new chequebook.
CLOSING OF ACCOUNT
It is also the responsibility of account opening department. For this purpose the account holder for closing of account gives an application. Then the department closed the accounts and gives the entire deposit amount to the holder. The bank collects the chequebook from the concerned person extracts him from the books. The general banking operations department is concerned with maintenance of the accounts of the branch, the expenditure and revenue of the branch is controlled and monitored in this department. This department is responsible for preparing the financial statements of the branch. Preparation of these statements is done daily and all transactions which have taken place in the other departments are posted in this department to counter check that the whole banks working for the day is balanced. It is also the job of this department to prepare Pay orders as these are computerized in this particular branch and most of the other branches of MCB.
Cheques and their Payments

Definition
According to section 6 of the Negotiable Act, 1881, Cheques is a bill of exchange drawn or a specified banker and not expressed to be payable otherwise than on demand. Since a cheque has been declared to be a bill of exchange, it must have all its characteristics as mentioned in Section 5 of the Negotiable Instruments Act, 1881.
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The requisite of a cheque:

There is no prescribed form of words or design of a cheque, but in order to fulfill the requirement mentioned in Section 6, the cheque must have the following:
It should be in writing:
Oral orders cannot be treated as cheques. Through the law does not prescribe any restriction on the writing material to be used for making out a cheque, the practice of banking has made it obligatory to draw the cheque either in printed character or by a typewriter or by person.
The Unconditional Order:

The drawer of a cheque must not put any condition of the payment of the cheque. For instance payment of the cheque will be unconditional to or to the order of a certain person or bearer of an instrument. According to law, a person may not necessarily be a human being. A person can as as well be one of the corporate bodies constituted by law to contract in accordance with recognized legal principles.
Signed by the Drawer:

In order to make the instrument a valid cheque, the drawer (account-holder) must sign it or he should authorizes somebody to sign it on his behalf because according to section 29-A of the negotiable Instrument Act, 1881, signature is essential to liability. In case of the cheque has been signed by some body on behalf of the customer, the banker must have prior information of this arrangement, and also, the account-holder must supply the specimen signature of this attorney before hand.
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Drawn an a specified banker only:

A cheque can draw only on banker and none else. Moreover the name of the banker must be specified so that there may be on mistake in demanding payment from the drawee banker. Bankers in Pakistan supply printed cheque forms to the accounts holder wherein the name of the drawee branch of the bank is printed or stamped specifically.
Payment on Demand:
A cheque is payable only on demand, and this demand can be lodged during a reasonable period which, at present, in Pakistan is 6 month from date of its issue. After this period a cheque becomes stale.
Sum Certain in Money:

The cheque must contain order for the payment of certain sum of money only, which means the amount referred to in order must not be ambiguous or disputable. The cheque forms issued by the bankers always contain spaces for writing the sum of money in words and figure both. If the amount stated in words and figures differ, Section 18 of the negotiable Instrument Act, 1881 authorizes the bankers to take the amount stated in words as ordered or intended. However, the bankers in Pakistan usually return such cheques un-paid on the plea that due to this discrepancy the instrument cannot be treated as a cheque because the amount stated is not a sum certain in money.
Payable to Specified Person:

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The cheque should be payable to or to the order of a certain person or bearer of an instrument.
PARTIES OF CHEQUE:
There are three parties involved in a cheque.
i. ii. iii. The Drawer The Drawee The Payee
TYPES OF CHEQUES:
Banker in Pakistan deal with only two types of cheques:
i. Open Cheque
They are payable in cash at the counters of a bank in accordance with the practice of the bankers.
ii. Crossed Cheque

They are not payable in cash at the counters of a bank, but can be collected by only the bank that would credit the proceeds to his customers account after realization.
REQUIREMENTS FOR HONRING THE CHEQUE 1. Cheque should be in proper form :
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The banker must see that the customer or the holder has not changed the form of the cheque and made it a conditional one. If so the cheque should be returned.
2. Cheque should not be crossed:

A crossed cheque cannot be honored over the counter to any person. If the paying banker honors a crossed cheque contrary to the crossing, the true owner may require the banker to pay him such damages as he might have sustained by the bankers action.
3. Cheque should not be mutilated:

When a cheque is turn, worm out or does not give sufficient evidence of the customers intention, it is called a mutilated cheque. The banker should see that the cheque presented for encashment is not mutilated because if the banker ignores this point, he becomes liable.
4. Cheques should be drawn on the particular
branch:
Only the branch of the bank particularly mentioned on the cheque where the customer is maintaining his account can make the payment of the cheque. If arrangements have been made, encashment of a customers cheque can be held at a branch other than the one where he maintains his account.
5. No unauthorized material alterations:

Material alteration in relation to a promissory note, bill of exchange or cheque includes any alteration of the date, the sum payable, the time of payment, the place of
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payment; and where any such instrument has been accepted generally, the addition of place of payment without the acceptors assent. Therefore, a banker must not pay a cheque bearing apparent material alteration not duly authorized by the drawer under his full normal signature of which has been supplied to the banker beforehand.
6. Funds must be sufficient and available:

The banker must see those there as sufficient funds available in customers account to permit the honoring of the cheque presented.
If the banker has received from his customer certain cheques of be collected and credited to his account, and they have not been cleared and appreciated by the time a cheque against them has been drawn and presented, the banker is authorized to return it with the remark: Effect not cleared, present again.
7. Cheque should not be posted or stale:

A cheque is out-of-date when it is posted-dated or stale. Post-dated cheques are those, which are presented for payment before the due date.
8. Cheques should be presented during
banking hours:
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The banker must honor cheques drawn on him if they are presented on a working day and during the banking hours.
PAYMENTS OF CHEQUES
This department looks the following activities:
1. Cross Branch Transaction 2. ATM 3. SBP TRANSACTIONS
1. CROSS BRANCH TRANSACTION:

Online facility is available for cross branch transaction in MCB Quaid-e-Millat Road Branch. MCB provides this facility to special customers. These transactions are made among those branches where online facility is available. This way the amount is transferred from one branch to another in the account of that company with in seconds. MCB provides this facility to special companies without any charges.
2. AUTOMATED TELLER MACHINE:

MCB installed a number of ATMs to provide 24-hours cash facility to customers. The MCB ATM network is the largest and most advanced of its kind in the country. These machines are installed in big branches and at the famous busy places. The customers of MCB having PLS Account, Current Account and Khushali Bachat account, can easily draw the cash from the machines at any time by using the ATM Card provided by the bank. Customer can withdraw the cash up to 25, 000/- in a day. Every card has
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specific four-figure code. By feeding the code into the machine and type in the amount in rounded figure customer can get the amount. Customer can get the card from bank by presenting the handwritten application. In case of feeding wrong code number machine warns, second time if the code is wrong than Machine will not return the card. The account holder of MCB having ATM Card can withdraw the amount any where from any MCB ATM. New currency Notes are available at ATM. These ATM Cards are issued to individual account holders not to companies accounts.
3. SBP Transaction:
The clients, who have to get or pay huge amount, they use SBP cheques, MCB sends advice to Head Office and credit or debit the account of the company accordingly. This department divide into four other sections in which the bank is performing different functions performs. Cash section. Remittances section. Fixed deposit section.
CASH DEPARTMENT
1. 2. 3. 4.
Introduction of Cash Department Cash Receipt Section Cash Payment Section Duties of Head Cashier
1.
INTRODUCTION OF CASH DEPARTMENT:
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It is a department where money is deposited and withdrawn by people. Basically this department has two sections that are receipt section and payment section. In this department there is one head cashier who commands on the two sections. Briefly, the functions of these sections are follows:
2.
CASH RECIEPT SECTION:

In this section such is received by the cashier. He receives the cash along
with pay-in-slip and other document and reports it in the cash receipt register.
3.
CASH PAYMENT SECTION:

In this section honoring a Cheque or other instruments, which are
acceptable by the bank, makes the payment. The paying cashier receives the Cheques along with by the deposit department after verifying the Cheque. He made the payment on the counter to the person who is holding the name,
number, token which is marked on the backside of the Cheque by the deposit department. The paying cashier holds a list of token which has been lost.
4.
DUTIES OF HEAD CASHIER:

Head cashier is a person, who controls over the cash department. Duties of
Head Cashier are as follows:
a)
GENERAL:
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1. Advice of the limit up to which each official at a branch may pass Cheques, etc. for cash payment is conveyed to head cashier in writing with as authenticated specimen of each officials signature. 2. The Head Cashiers responsibility as join custodian of the cash is clearly impressed upon him by the tile Manager. 3. Endorsements and receipts on vouchers in a language other than English and Urdu is translated into English and attested by the Head Cashier, if the passing official does not have the desired proficiency in that language. 4. After payment the voucher are sent by the cash department to the clear cash book and day book writers who do for the number of vouchers received.
b)
CUSTOMERS ACCOUNT:
1. Introductory reference of the cashiers may be accepted while entertaining an application for opening account. 2. Signature on the confirmation forms send as on 31st December each year, are verified and initiated by the Head Cashier. 3. As the additional precaution, stop lists containing full particulars of the stopped Cheques are maintained by each passing official, larger keeper, the head cashier and paying cashier.
c)
GOVERNMENT TRANSACTION:
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1. Vouchers for payment in cash are sent by the passing official pass book direct to the cash department and are initiated for therein by paying cashier. The vouchers are returned to the Government accounts clerk in a pass book specially keep for this purpose. 2. Particulars of every demand loan granted against Gold Ornaments are entered in the demand loan register under the initials of the Manager or Accounts ant and Head Cashier. 3. The Gold Ornaments are placed in the strong room under the double lock of the Manager or Joint custodian of cash and the Head Cashier. 4. The Ornaments relating to cash loan are dept in a separate bag marked with the number of the loan and name of the borrower. 5. Port deliver of Ornaments may be give against part payment of loan out care is taken that the ornaments still in the banks possession fully cover the balance of the loan outstanding. 6. On repayment of loan the ornaments held as security for it, together with the demand promissory note duly discharge, are returned to the borrower and his receipt for the ornaments in taken in the demand been.
d)
ADVANCE FOR PETTY CHARGES:

1. An advance for petty charges given to the Head Cashier on the first of each month by debit so Suspense Account. The Head Cashier maintains the petty cash book, which is initiated regularly by the manager, and the advance is kept separate from other money.
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2. At the end of month the Suspense Account entry is adjusted by desiring of the amount expended to charges account (sundries) and refund of the balance in cash.
2) Remittance Section Remittances are sums of money sent in payment for or against something. The remittance department is mainly concerned with these payments. Remittances are divided into two types:
a. Inward remittances Inward remittances refer to payments in favor of the banks account holders. Inward remittance includes all cheques received for collection.
b. Outward Remittances
Outward remittances are all payments made to other people on behalf of the account holders in the bank. Outward remittances can also be done for none account holders who deposit cash in the bank and remittance tools are prepared for them. Among the work done by the clearing department is receiving credit advises in favor of the banks account holders and also debit advises against the account holders accounts. There are various tools of remittances to the customers who want to use the facility of remittance. These are: Telegraphic Transfer (TT). Mail Transfer (MT). Demand Draft (DD).
Pay Order (PO).

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(i) Telegraphic/Fax Transfer

This mode of remittance is the fastest in terms of time taken for the message to arrive as the telephone or the fax machine is used to convey the message. This remittance is used for all banks whether in the same city or in different cities.
(ii) 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. Bank is responsible for the transference of the applicant should be the regular customer or the account holder of the responding as well as originating branches.
(iii) Demand Draft

This mode of remittance is normally used for payment to out of city beneficiaries. They are normally also drawn on banks near the beneficiarys residence.
(iv) Pay order

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.
3) Fixed deposit section

It is stated that deposits are the lifeblood of the banking system. Banks accept deposits and utilize these deposits for making loans and advances to their customers.
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All deposits in the account should be accompanied by pay in slip showing the title, number of account to be credited. The entry will be verified by signature of an official of the bank under bank stamp on the counterfoil of the pay in slip. Customer has to fill the credit or voucher slip in which he write the amount in words and in digits in the form of cash, the name of the depositor and the date of the amount deposited. These deposits are:
a. Demand Deposits
These are deposits, which can be withdrawn at any one time at the discretion of the account holders. Demand deposits are further categorized into:
1) Current Accounts
A current account is a running account that is continuously in operation. A customer to transfer money or to withdraw deposits on demand uses it. The current accounts of the customers are maintained in a current account ledger by the bank. The bank has to honor the cheques provided they are within the limits of the account. For the customers who need a liquid balance, they maintain a current deposits account. Banks do not usually pay interest on such type of deposits, as they can be withdrawn without prior notice. In this case, the bank acts only as the custodian of money. The bank cannot employ these funds for other.
2) Saving Account
These are important sources of funds for the bank and are of various categories.
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(i)
Profit and Loss Sharing (PLS) Account

A saving account is an important source of fund for the commercial banks. It
is opened and offered to encourage savings among persons of meager means. In Pakistan, PLS account was introduced in January 1982. the main value of PLS accounts are as under: 1) The PLS account can be opened with a sum of not less than Rs.500. 2) A credit balance of Rs. 100 is eligible of sharing profit and loss of the bank. 3) The bank has full right to make investment of credit / deposits in the PLS Account. 4) Withdrawals from PLS account are allowed often more than 8 times in a calendar month and for a total amount not exceeding Rs. 15000. for withdrawal of larger amounts, 7 days notice in writing is required to be given. 5) Withdrawal can only be made by means of a cheque issued by the bank. 6) Statement of account is to be supplied to the account holder at periodical intervals. 7) The profit /loss earned on PLS account will be credited /debited as determined by the bank on the basis of its networking result at the end of each half/full year.
ii) Profit and Loss saving 365 Account

In this particular account being offered by MCB, account holders of PLS 365 are required to maintain a minimum balance of rupees 250,000 in their respective accounts. MCB offers a profit rate calculated on daily basis for this type of account on the balance if equal to or in excess of the minimum requirement. The balance can at certain time go below the minimum requirement and in such cases does not pay the profit for that particular month in which the deposits are below minimum.
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iii) Khushali Bachat Account

This account has been introduced for the first time in Pakistan. This account helps the account holders to pay utility bills through their accounts. The account offers an 8.4% rate of return per annum and the return is calculated on the daily average balance and paid twice in a year. A minimum of rupees 2,500.00 is required as a balance for this account to avail the profit facility.
b. Term/Time Deposits
As the name suggests, these types of deposits are for a particular time period. Each deposit is offered a profit rate depending on its time period.
The deposits are of two types namely: Capital Growth Scheme

In this scheme, deposits are to stay with the bank for five years and every six months the profit is calculated and added into the initial deposit so it is a form of compounding. The initial deposit is to double after the five years period.
Mahana Khushali Scheme

In this scheme, a profit is calculated and paid to the depositors every month for the whole period of five years. A minimum of rupees 50, 000 is required as a balance for this account to avail the profit facility. You can avail a credit facility up to 75% of the total value. Profit will be paid on a monthly basis through Cash, Pay order, Demand Draft or Direct Debit to your Saving/Current Account.
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Call Deposit
This is type of deposit offered by MCB on which no mark-up is paid. The call deposit receipt is usually issued in the favor of Government, Semi Government, Institutions, Corporations, etc. as security deposit.\
ISSUANCE OF DEPOSITS
The purchaser is required to give application for Call Deposit on application-cumspecimens signature form SF-253. The specimen Signature on the application-cumspecimen are then admitted by the Manage/Accountant. Then purchaser is issued a receipt signed by Manger/Accountant. On the reverse of the receipt a note is given as follows. Payable to Beneficiary or refundable to Purchaser on proper discharge refund authority.
4) Clearing section
The clearing department is in charge of processing all cheques, pay orders, or demand drafts deposited or sent to the bank by the banks customers for clearing. The cheques are categorized into the following: Cheques of the same branch (MCB Fried gate Branch) in favor of another client of the same bank. Cheques of MCB originating from other parts of the country such as from branches of MCB in Lahore, Karachi, etc.
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A cheque of other banks such as Habib Bank Limited, Citibank. Allied Bank, etc, situated in other parts of the country such as in Karachi, Lahore, etc. Processing of these cheques is done with different procedures and these procedures can be broadly categorized into the following:
a. Clearing
This procedure is done for cheques of other banks (Habib, Allied, etc.) lying in the jurisdiction of Farid Gate and which have been deposited or sent to MCB Farid gate Branch by the banks accountholders.
b. Transfer delivery
Transfer delivery procedure is done for all cheques of MCB branches in the jurisdiction of Farid gate respectively which account holders in the bank have deposited with the bank.
c. Cheques for Collection.

The collection procedure is done for all cheques originating from other parts of the country otherwise known as outstation cheques both belonging to MCB branches and to other banks as well. The only variation is to where the cheques are sent for collection. Cheques coming from MCB branches around the country are sent directly to the respective branches for collection. Cheques of other banks coming from around the country are sent to MCB main branches otherwise known as responding branches, in the area where the
41

bank from which the cheque is originating is situated. The MCB main branch then presents the cheque for clearing and once the proceeds are collected.
BOOKS RELATING TO CUSTOMERS

1.Pay in Slip
When money is to deposited in the bank the pay-in-slip is to be filled. The object of this book is to provide the customer with the banks acknowledgement for receipt of money to be credited his account.
2.Cheque Book
A cheque book contains a number of cheques, which is given to a customer upon written request and after making the payment for the chequebook. It enables customer to make withdrawal from his account or make payment to various parties by issue of cheque.
3.Pass Book/ Bank Statement

Passbook is copy of the customer account as it appears in the books of bank. The clerk in this book records Balance. But now a day due to computerization the bank shows the customer after certain period in the year which show the customer account as it appear in the book of bank on the year end.
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GROUNDS FOR CLOSING THE CUSTOMERS ACCOUNT

The banker may close the account of the customer due to following reasons. i. ii. iii. iv. v. vi. Notice by a Customer Death of a Customer Customers Insolvency Customers Insanity By the order of court Unsatisfactory operation
The explanation of each is as under:
1. Notice by a Customer
The banker closes the account of the customer on the application customer for the closing his account.
2. Death of Customer
On death of his customer, the bank must stop payment of cheques drawn on him by the decreased customer because the death revokes his authority to pay such cheques. The heirs or the executors of the deceased customer are not authorized to operate on the account, but can act only in accordance with the provisions mentioned in the letter of probate issued by a competent court.
3. Customers Insanity
If the customer becomes insane or mentally ill this terminates the bankers authority to act as his customs agent. Since the banker-authority relationship comes to its end, in such situation, it is usually considered that the bankers authority to pay his
43

customers cheques is revoked by notice of insanity. However, the bankers treat their customer as it unless a fairly conclusive evidence of the customers insanity is available to them.
Order of Court
A court of law may serve a banker with an order in garnishee proceed in execution of decree prohibiting him from honoring a customers cheques.
4.Customer Insanity
Insolvency is civil death; therefore, the insolvent adjusting loses receiver or liquidator. As soon as the banker receives the notice of insolvency of his adjusting, or petition filed for adjusting filed customer insolvency, his authority to pay cheques or to accept or honor bills to take any action on behalf of his insolvent customer comes to end.
LOCKERS
Quaid-e-Millat Road Branch of MCB also offers safe Deposit lockers facility to its customers. These lockers are installed in the Strong Room of the branch to ensure maximum security. Each locker has a separate number and is fitted with double key lock which can not be opened.
DOCUMNTATION
Lockers facility is available only for account holder of bank. Before issuing a license for the use of lockers customer is required to fill following forms 1. Application Form MF: 19A 2. Specimen Signature card MF: 19A
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3. Either/Survivorship Form MF: 19E (if the locker is in joint names)
CHARGES Payment of Rent

Size of Locker Up to .40 cft Small .41 to 1.35 cft (Medium) 1.36 to 2 cft (Large) 2.1 to 3.00 (Extra Large) surrendered earlier than expiry of term. Fee Rs. 750/Annum Rs. 1000/Annum Rs. 1500/Annum Rs. 2500/Annum
This fee is payable in advanced is not refundable in the event of the locker being
Key Deposit
Apart from fee a certain amount is also payable as Key Deposit. This amount is refundable on the surrender of key and clearance of dues. Key Deposit charges currently are Rs. 1500 for Small locker Rs. 3000 for Medium Locker
Use of Locker
Locker cant be used for any purpose other than the deposit of documents, jewellary or other valuable etc. Normally operation of locker is restricted to twice a day; however, this condition may be relaxed.
Breaking Charges
If the of locker is lost all charges incurred in connection with reopening of the locker and replacement of lock and key will be borned by the licensee.
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Breaking Charges Amendment Charges Actual; or Rs 1500/Locker whichever is high 400/Locker Flat
Recovery of Rent The bank may postpone the recovery of the overdue license Fee/Rent to a maximum of 3 years. If even after expiry of the said period the licensee fails to deposit fee/rent of the locker the bank reserve its right to break open the locker for the recovery of rent.
CUSTOMER SERVICE
The quality of customer Service is a critical factor in the success of any bank. With increased globalization, information revolution and stiff competition, the importance of providing quality service has increased exponentially. In an age where products are swiftly copied, technology is easily acquired and marketing strategies nullified by competition, superior customer service has become the leading source of competitive advantage. Realizing the importance of the service element, MCB has recently hired the first batch of Customer Service Officers (CSOs) who have been placed in branches and are responsible for a host of customer facilitation activities.
Broad Functions Of Customer Service Officers

Assist Customer in Branch Keep liaison with customer Gather all necessary printed literature regarding MCB products & services Provide printed literature to customers when they request
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Handling customers complaints & grievances and convey the same to the concerned branch officials Guide customers in the branch to the concerned officers Inform account balances and provide statements of accounts to customers when there are authorized by the Branch Managers to do so Look after the outlook of the branch premises
2: Finance Operations Department Loans & Advances

Importance
A countrys progress and economic development is largely dependent upon the dynamic growth of its industries, trade and commerce, as well as the all important agriculture sector. in this connection banks play a pivotal role in ensuring the proper employment and distribution of funds for rapid, sustained growth in all these sectors of vital importance. The nations saving are, thus, well utilized and suitably channeled for productive, investment purposes. Financing is the principal function of a bank, through which pace of activity is accelerated in the various sectors of economy. Through this medium, the wheels of trade, commerce and industry are set in motion and an effective financial contact is maintained with people in every walk in life.
1. EVALUATION OF BORROWER:
First of all bank evaluates the customer with the view of the account in the bank, his dealing with the bank, his business, his industry and his industry and his past record,
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bank compares the amount of loan with his business. Bank also confirms that whether he got loan from any other institution or not. Borrower may be different types i.e. individuals, partnership firms, or company. Bank sees the financial position of the client. If bank is satisfied with borrower, it makes the proposal and sends it to the circle office. Circle office comments on it and sends it to the Head Office of the bank. In head office the credit council deals with it. Council gets the information from State Bank of Pakistans department C.B.I. that is called Credit Information Bureau, that tells about the customers position whether is defaulter or not.
1. PROCESSING OF A CREDIT PROPOSAL:

After the evaluation of borrower bank asks him to fill the proposal form. This contains different inquiries and information like nature of the loan, limit of loans nature of his account in the bank. and the depth of their assessment of risk associated with the nature of the borrowers business, and impact of market fluctuation on those business.
Credit Proposal must have these qualities: a) Accuracy b) Clarity c) Conciseness d) Objectivity A proposal, which does not possess these qualities in the desired measures, is the first step towards a possible bad debt for which the initiator will have to carry a large part of the balm.
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FORMS OF LENDING:
Bank lends in form of cash finance, running finance and demand finance.
1. CASH FINANCE:
This is a very common form of borrowing and is available either against pledge or hypothecation of goods. In cash finance a borrower is allowed to borrow money from the bank up to a certain limit, either at once or as and when required. The borrower prefers this form of lending due to the facility markup only on the amount actually utilize.
2. RUNNING FINANCE:
In running finance bank allows to customer up to a limit as loan. The amount which the customer withdraws the bank charges markup only on that amount.
3 DEMAND FINANCE:
Bank allows or lends a limited amount transferring it into the client account. From the date of transferring amount into the account, bank charges the markup on the whole of the amount whether borrower utilizes it or not.
4. STAFF FINANCE
It is the type of loan that is provided to the members of the staff up to a certain limit. The loan is provided for house, car, motorcycle, purchasing piece of land etc. The house loan is provided to its staff members up to a certain limit where there is no interest. The loan for a motorcycle is provided to clerical staff. The officers can also apply for this loan.
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4.Instant Financing
MCB Saving Instant Financing up to 75% financing facility against deposit certificate/receipt.
REPORTING TO VARIOUS AGENCIES:

Branch reports to circle office about the total loans and parties, on monthly basis.
STOCK REPORTS:
In case of hypothecation bank compel to the client to maintain the limit of hypothecated material. For this purpose bank requires the stock reports from the customer. This report shoes the quality and amount of the items. These reports are monthly basis.
SECURITIES FOR ADVANCES:

Bank requires the securities from the borrowers against the loan. These may be tangible and marketable securities. Common securities for advances are as under:
1.
Bankers LIEN:
Lien is the bankers right to withhold property until the claim on the property is paid. The bank looks at their lien as protection against loss on loans or any other credit facility. In ordinary lien the borrowers remain the owner of the property, but the actual possession remains with the creditor, through he has no right to sell it.
2. PLEDGE:
In a pledge the ownership remains with the pledge, but the pledgee has the exclusive possession of property until the advance is repaid in full, which in case of default the pledgee has the power of sale after giving due notice.
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3. HYPOTHECATION:
When property in the goods in charged as security for loan from the ownership and possession is left with the borrower, the goods are said to be hypothecated.
ADVANCES AGAINST IMMOVABLE PROPERTY:

Bank advances the loan against the immovable property. The most popular immovable property against which the banker is willing to make advances to the borrower is land or estate. Bank gradually advances against mortgage of land, building and machinery etc.
1. PRELIMINARY INQUIRIES:
Bank advancing against immovable property as security, the bank makes some preliminary inquiries.
VALUE OF PROPERTY
The banker must satisfy himself that the property is suitable for his purpose, and that in case of forced sale he would not suffer any loss.
INVESTIGATION OF TITLE
Bank should satisfy that the borrower has a good title to the property. Bank inquiries whether the title is registered or not.
SEARCH OF PRIOR CHARGE

Bank makes search in the office of the collector and sub- registrar or the District Registrar to ensure that there exists no prior charges on the property.
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2. EXAMINING OF SUITABILITY OF THE PROPERTY:
PROPERTY TYPE
Bank sees that whether the property is residential, commercial, industrial or agriculture.
VACANT, SELF-OCCUPIED OR RENTED

Bank also confirms about the property that whether it is vacant or not and who is using it currently.
FREE HOLD OR LEASE HOLD

The information about property, whether it is free hold or lease hold, are necessary for the bank.
PHYSICAL CONDITION
Before taking the property as security bank checks the physical condition of it.
LOCAL AND SURROUNDINGS

It is also an important thing for a security that where it is located. Location sets the value of the property.
ALTERNATIVE USES OF THE PROPERTY

If the property has the several uses it may become a good security, and is acceptable for the bank.
Mortgage:
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A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, and existing or future debt.
3: Foreign Exchange Department

The foreign exchange department deals with daily exchange rates. It is an important department because it deals with foreign exchange like US dollar, German mark, Saudi reyal, Japanese yan and etc. according to this department the rates change daily to daily.
MCB FOREIGN CURRENCY ACCOUNT

1- FOREIGN CURRENT SAVINGS ACCOUNT
MCBs Foreign Currency Savings Account offers the attractive returns on your Foreign Currency investment. One can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanese Yen or Deutsche Mark..The foreign currency account is exempted from Zakat and withholding tax.
2- FOREIGN CURRENCY CURRENT ACCOUNT

MCB Foreign Currency account offers the convenience of unlimited withdrawals i.e. access to the funds whenever you want without any notice. There is no limit on the number of transactions you make in a day. You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanese Yen or Deutsche Mark Your foreign currency account is Zakat and withholding tax exempted. You can avail a credit facility up to 75% of the total deposit value
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3- FOREIGN CURRENCY TERM DEPOSITS

Place your investment in a MCB Foreign Currency Term Deposit and receive a higher rate of return. Avail your choice of 1 month, 3 months, 6 months, and 1 year; 2 years, 3 years, 4 years and 5 years term deposits. For more information or to open an account at MCB, contact one of our designated foreign currency branches.
2.
DOLLAR KHUSHALI BACHAT ACCOUNT
One can open a Dollar Khushali Account with a minimum initial deposit of US$ 100. And the Profits are paid on daily product basis payable half yearly on interest calculated at the Dollar Savings Rate. You can also avail a credit facility up to 75% of the total deposit value. The account is exempted from the Zakat.
SPECIALIZED PRODUCTS
MCB has a good number of specialized products, which contains the largest network of automated teller machines in Pakistan.
1- AUTOMATED TELLER MACHINES (ATMs)

The MCB Automated Teller Machine launched in 1995 is a means of providing customer with 24 cash convenience. Over the years its success has encouraged the bank to expand its network to major cities. In the past six-year, we have installed this convenience in Karachi, Lahore, Hyderabad, Rawalpindi, Islamabad, Faisalabad, Multan, Gujranwala, Bahawalpur, Quetta, Sialkot, and Peshawar. 24-hour cash convenience is also available at Karachi, Lahore and Islamabad airports. MCB has the largest ATM network with 197 ATM locations in different cities and 288 online branches where ATM card are issued.
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With the MCB ATM 24 hour cash card a Muslim Commercial Bank customer can: Access 197 ATM machines in different cities of Pakistan. Select between two languages, Urdu and English, for the non-screen transactions.
Withdraw cash immediately instead of waiting in long queues and delays at

the branch.
(a) MCB ATM REGULAR CARD

The MCB ATM regular card allows withdrawal up to Rs.10, 000 per day and a maximum of 3 withdrawals per day per card.
(b) MCB ATM GOLD CARD

The MCB ATM Gold Card allows withdrawals up to Rs25, 000 per day and a maximum of 6 withdrawals per day per card. The cardholder has to make at least two transactions to withdraw the full amount of Rs. 25, 000.
2- MCB MASTER CARD

People have tried to find more convenient ways to pay, from gold to paper money and now checks. Today, money is moving away from distinct hard currencies and towards universal payment products that transcend national borders, time zones, and, with the Internet, even physical space. MasterCard International has expanded globally in more locations in the world than any other card. The card was introduced by Muslim Commercial Bank Limited in 1995 and now offers card members over 15 million outlets in 232 countries.
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Photo security- the first bank in Pakistan to introduce the enhanced feature of photograph on the card limiting fraud in case of card loss. Welcomed at over 3,000 outlets in Pakistan. Provides up to 45 days Free Credits. Joining and Annual Fees to suit you. Free travel Insurance of Rs. 3.5 million.
3- MCB RUPEE TRAVELER CHEQUES

Muslim Commercial Bank has been at the forefront of providing its customers with new and innovative products and financial instruments that are safe, secure and profitable. MCB Rupee Traveler Cheques were first introduced in 1993 as a safe way to pay for high valued purchases. The product has been extremely popular and is used by consumers in all walks of life for business dealing; high value transactions for purchases, MCB Rupee Travelers Cheques are Ideal for Every Deal. MCB Rupee Travelers Cheques- The safest way to Carry Cash. As good as cash: the most convenient substitute for cash for all kinds of purchases, business, and property and trade transactions. Easily available: Buy them from any of the designated branches in Pakistan. Easily enchased: At any designated MCB branch. Easily refunded: in case of loss or theft, you can get the full amount back. Exclusive security features: Due to special printing and safety precautions, Cheques cannot be faked or duplicated. Denominations: Available in denominations of Rs. 1000, Rs. 10,000 and Rs. 50,000 and Rs.100,000. Valid until Used: Validity of Cheques indefinite.
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24 hour Service available at Airport MCB booth of Karachi, Lahore &

Islamabad.
3.
Mobile Banking
At the forefront of technological excellence, MCB proudly introduces MCB MOBILE BANKING. The convenience of accessing your account balance information and mini statements whenever you want or wherever you may need them, with comfort and peace of mind. MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours 365 days. Just call our Help Line on (021) 111-000-777 or any MCB online branch for assistance. MCB Mobile Banking gives you easy and quick access to your account(s) at a time you find convenient, including all holidays. With MCB Mobile Banking you can check your balance. And you can view the last 4 transactions of your MCB account(s).
5. Call center
Keeping up with banking services can be tedious but not with Muslim Commercial Bank, where phone service is at your fingertips. Just dial our Call Center from the comfort of your home or office or wherever you happen to be. It offers basic banking services for your convenience, eliminating the need for you to make unwanted trips to your branches
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MCB Call Centre offers basic banking services for your convenience like Balance Inquiry, Foreign Exchange Rates, Account Statement, Cheque Book Requests and lots of other state of the art services.
6. Smart card
MCB now brings MCB Smart Card a secure and convenient instrument of payment with unmatched functionalities. It provides 24 hours direct access to your bank account. It not only helps you manage your expenses, but also eliminates undue interest on your day to day credit card transactions. Your balance is always in your reach. MCB is the only bank to introduce a debit card that gives the option to choose from domestic and international cards for local and global usage respectively.
7. MNET Switch
MNET enables all the member banks to share their electronic networks. This means customers of all member banks can use each other's ATMs. ATM machines of MNET member banks accept cards issued by Muslim Commercial Bank, Citibank, Standard Chartered, HSBC, Bolan Bank, Credit Agricole, Bank of Punjab, Prime Commercial Bank, Saudi Pak Bank Limited, Habib Bank AG Zurich, Metropolitan Bank, Bank of Khyber and American Express. MNET customers can use over 600,000 ATMs
worldwide that carry the
logo and shop at over 5 million outlets that carry the
logo.
8. MCB Pyara Ghar
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MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase, Renovate or Construct your home the way you have always wanted. Having your own home was never so easy
9. MCB Car4u
MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. It is affordable, with lowest mark up, flexible conditions, easy processing and above all, no hidden costs.
10. Remitt Express

The fastest way of getting your money across to Pakistan. Remit Express offers low cost remittance from U.A.E. and Saudi Arabia. Your relatives, friends or business associates receive drafts within 72 hours. MCB Remit Express has been specifically designed to meet the needs of the expatriate Pakistani community residing in the Gulf countries.
11. MCB Islamic Banking

Islamic banking services through exclusive units / branches offering a range of liability and asset based Sharia compliant products like Musharika, Murabaha, Ijara and Istasana.
12. MCB Virtual Banking

MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances when you want to, where you want to. Convenient, simple, secure and totally free of cost. So, just get clicking.
13. GIFT CHEQUE

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MCB Gift Cheques eliminates guesswork in trying to find out the perfect Gift for any occasion Birthdays, Wedding, Graduation and religious Festivals.
Gift Cheques is beautifully packed in a Gold / Silver envelop with a personalized Gift Card designated to suit all occasions. They are safer than cash, because they can be replaced if lost or stolen. They are also available at all TCS Express Centers round the clock.
DIFFERENT TERMS USED IN THE BANK

There are many terms that are used in the banks. Some of them are given as:
DORMANT ACCOUNT
It is an account that is not operated for six months.
DECEASED ACCOUNT
When account holder of the bank dies, his account is called deceased account. Bank marks this account as deceased account.
BLOCK ACCOUNT
Any account, which is freeze by the State Bank of Pakistan, or by court or by Government, is, called block account.
STALE CHEQUE
Cheque, which is presented before the banker after six months of its issuing date, is, called stale cheque is also called out dated cheque.
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Financial information
Ratios Analysis
#
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
MCB Bank Limited

Cash Reserve Ratio Statuary Liquidity Ratio Rate Of Admen Expense Spread Bank Adequacy Ratio Infection Ratio Cash Ratio Advance To Deposit Ration Liability To Equity Ratio Return On Assets (ROA)
2006
9.00 15.00 2.81 5.54 7.49 6.08 10.32 78.66 93.00 3.20
2007
8.5 18.23 2.51 8.38 11.94 5.71 14.86 77.00 88.00 3.79
2008
8.31 33.22 1.72 9.88 13.00 6.33 12.00 75.00 90.00 4.06
2009
7.89 40.67 1.65 11.75 13.79 6.36 11.44 74.45 92.34 3.77
2010
7.54 52.36 1.34 12.03 14.30 7.45 12.65 72.67 92.89 4.35
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11. 12. 13 Return On Equity (ROE) Average rate of lending Average Rate of Borrowing
64.87 7.8 1.5
45.00 8.1 1.6
37.66 9.5 2.4
32.40 10.0 2.6
39.04 9.9 2.9
MUSLIM COMMERCIAL BANK PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER
PKR (000)
2006
Mark-up/Return/Interest earned Fees,commission&brokerage income Dividend Income Net Profit / (loss) From Investment securities Total Revenue Less: Cost/Return On deposits, borrowing etc. Gross Profit Operating Expenses Administrative Expenses Provision against nonperforming loans and advances Provision for diminution in the value of investment Other Provisions 7112651 0 257144 60570 15755990 901444 40245 2924 16700603 9351947 8200894
2007
14124242 909045 158909 609838 15802034 7238680 8563354
2008
17033225 868637 243994 687854 18833710 7544897 11288813
2009
15385869 907071 297748 503593 17094281 6074682 11019599
2010
10369994 1042437 372821 331694 12116946 2932693 9184253
7128658 601799 46048 30000
7331623 1704944 62064 40000
7549363 0 0 0
6587369 705787 -150000 50000
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Bed debts written off directly Less: Total Operating Expenses Operating Profit Add: Other Income Less: Other Charges Profit Before Taxation Less: Taxation Profit After Taxation
39424 7469789 731105 479434 0 1210539 641589 568950
483943 8290448 272906 1085614 36725 1321795 587066 734729
448999 9587630 1701183 400140 147 2101176 993000 1108176
721105 8270469 2749130 498296 1313 3246113 1362426 1883687
224432 7417588 1766665 743599 59034 2451230 1382779 1068451
BALANCE SHEET (ASSETS) HORIZONTAL ANALYSIS AS ON 31st DECEMBER 2005-06-07-08-09
Item
Increase
Increase
Increase
Increase
(decrease) (decrease) (decrease) (decrease)
%age
Cash 69.11
%age
(15.95)
%age
298.46
%age
10.43
Balance with other banks
(36.00)
(28.80)
43.45
31.02
Investment
42.55
61.65
75.18
(10.82)
Advances
(113.31)
3.05
240.63
17.58
63
Fixed Assets
1.53
4.51
147.17
2.41
BALANCE SHEET (LIABILITIES) HORIZONTAL ANALYSIS AS ON 31st DECEMBER 2006-07-08-09-10 Item
Increase
Increase
Increase
Increase
%age
Deposit & other account 13.64
%age
18.22
%age
153.64
%age
8.29
Borrowing
47.03
145.76
(60.17)
33.65
Bills Payable
3.76
22.66
(60.50)
509.11
Other Liabilities
1.68
5.44
159.74
13.19
Share Capital
9.99
10.00
121.68
19.99
Reserve
0.50
32.81
308.20
12.34
UN-appropriate profit
8814.90
119.05
4014.62
65.43
64
BALANCE SHEET (ASSETS) VERTICAL ANALYSIS AS ON 31st DECEMBER 2006-07-08-09-10 Item
2006
2007
2008
2009
2010
%age
Cash 7.21
%age
11.37
%age
7.60
%age
12.32
%age
12.37
Balance with other bank
2.73
1.61
0.92
5.36
6.40
Lending to F.I
6.22
7.75
14.41
2.82
3.62
Investment
24.71
29.67
38.11
27.17
22.04
Advances
49.50
41.00
33.56
46.53
49.77
Fixed assets
2.07
1.95
1.62
1.64
1.5
Other Assets TOTAL
7.57 100.00
6.10 100.00
3.78 100.00
4.14 100.00
4.27 100.00
65
BALANCE SHEET (LIABILITIES) VERTICAL ANALYSIS AS ON 31st DECEMBER 2006-07-08-09-10

Item
2006
2007
2008
2009
2010
%age
Deposit & other account 77.84
%age
82.62
%age
78.85
%age
80.4
%age
79.32
Borrowing
9.67
4.78
9.49
1.52
1.85
Bills payable
4.47
4.32
2.70
0.30
1.68
Others
4.83
4.59
3.90
4.10
4.21
Share Capital
1.26
1.30
1.15
1.03
1.13
Reserve Un-appropriate profit Surplus on revelation of F.A
1.30 0.0018
1.22 0.15
1.30 0.27
2.16 2.40
2.20 5.07
0.63
1.02
2.32
6.67
4.57
66
TOTAL
100.00
100.00
100.00
100.00
100.00
PROFIT AND LOSS ACCOUNT (INCOME) HORIZONTAL ANALYSIS FOR THE PERIOD ENDED DECEMBER 2006-07-08-09-10
Item
Increase
Increase
Increase
Increase
%age
Interest / return earned 20.60
%age
(9.67)
%age
118.98
%age
29.96
Fees, Commission etc.
(4.44)
44.42
443.13
24.72
Income from dealing
12.79
(26.78)
139.41
10.63
Dividend Income
53.58
22.00
477.16
68.27
Other Income
(63.11)
12.35
(79.83)
152.91
PROFIT AND LOSS ACCOUNT (EXPENSES)

67
HORIZONTAL ANALYSIS FOR THE PERIOD ENDED DECEMBER 2006-07-08-09-10

Item
Increase
Increase
Increase
Increase
%age
Admin. Expenses 2.84
%age
10.17
%age
38.92
%age
19.79
Provision for diminution
34.78
(100)
100.00
188.53
Provision against nonperforming advances
183.30
(100)
100.00
25.70
Other provisions
33.00
(100)
100.00
(91.28)
Bad Debts
7.22
60.6
3.19
22.91
Profit Before Tax
58.96
47.58
514.5
38.11
Tax
69.14
37.20
365.83
46.35
PROFIT AND LOSS ACCOUNT (INCOME) VERTICAL ANALYSIS AS ON 31st DECEMBER 2006-07-08-09-10
68

Item
2006
2007
2008
2009
2010
%age
%age
%age
%age
%age
Interest earned
83.6
88.56
85.60
80.75
79.96
Fee, commission etc
5.38
4.52
5.04
11.81
11.22
Income from dealing F.C
3.61
3.58
5.04
2.89
2.44
Dividend Income
0.94
1.27
1.66
4.11
5.28
Other Income
6.43
2.08
4.91
0.43
1.15
TOTAL
100.00
100.00
100.00
100.00
100.00
PROFIT AND LOSS ACCOUNT (EXPENSES) VERTICAL ANALYSIS AS ON 31st DECEMBER 2006-07-08-09-10 2006 2007 2008 2009 2010
Item
69
%age
%age
%age
%age
%age
Cost
41.42
37.30
31.41
00
00
Admin. Expenses
41.00
36.25
41.76
54.61
50.26
Provision against nonperforming advances 3.44 8.42 00 11.91 11.50
Other provision
0.17
0.20
00
0.97
0.07
Bad debts
2.76
2.25
3.72
0.11
0.02
Other Charges
0.21
00
0.006
0.31
0.78
Taxation
3.35
4.90
7.05
30.90
34.73
TOTAL
100.00
100.00
100.00
100.00
100.00
70
SWOT Analysis
SWOT ANALYSIS;
Strength and weakness are basically occurring in the internal environment of the organization. It provides the information that in which area organization is strong and weak and provides the solution how an organization can overcome the weakness and utilize the strength in a right direction. It is the moral and professional duty of the directors, executives and managers to overcome the
71

weakness and convert them into strength, and get maximum benefits and opportunity from the prevailing resources, and overcome the threats from the external environment.
Strengths
MCB with an integrated network of over 987 branches domestic with 07 overseas location gives a direct access to a comprehensive rang of better banking facilities to help monitor business internationally.
MCB has assets of over 362 million, capital and reserves of over 45 million. MCB provides its customers a complete range of banking products and services including retail banking, corporate and institutional banking, trade finance and consumer finance.
MCB has planed to institute major improvements in customer services and internal system to improve efficiency. It also intends to launch innovation products. The bank is increasing the resources mobilizing through regular deposit campaigns and accelerating the process of recovery of outstanding advances.
The managements of MCB in order to further improve the quality service, particularly at branch level, is restructuring its commercial banking operations.
Corporate secretary MCB has taken progressive steps and has introduced innovation products and services to provide the customers a variety of banking and financing services.
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On the move within your city or traveling up country , MCB Rupee travelers cheqes are the most secure and convenient way to carry cash and travel with peace of mind. For the customer who is on the move within the same city or in different cities of Pakistan and who wishes to avoids carrying cash, Muslim Commercial Bank Limited presents cash encashments Facility. You can have MCB account cheques encashed by either yourself or a third party at any of MCB s designated branch in Pakistan. MCB was set up in 1947 and is today one of the Pakistans major banks in term deposits and advances. They possess combination of competitive, energetic and enthusiastic stsff. Goodwill in the market. Strong financial position. Companys website provides every information about banks products to buyer and shareholders. The bank has very efficient internal audit department. The new accounts i.e smart saving account has competitive edge over all other accounts in other banks. They possess state of art technology. A well established network branches. Car4U financing scheme also have competitive features. They also advance loans for construction of homes They also issue credit cards/MCB Smart Card that facilitate customers a lot. Inland plus foreign remittance services are very fast.
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Wide spread services of MNet. Maximum account holders
Weaknesses
Shortage of the staff in the branches is the major weakness of the bank. They have limited space to conduct operations. They have centralized structure in the organization. Employees have to work in late hours without any extra compensation. Most of the loans have been converted to bad debts. For opening an account customers have to be verified their identity from NADRE personally.
They have semi computerized system not fully computerized system. Efficient services are not being provided to customers. No concept of right person for right job. Forced branches in un-banked rural areas. High politics is observed among employees behaviors. Promotional criteria are not just and its pace is also too slow which demotivates employees.
Promotion are usually given on the basis of favoritism, rather than on the merit.
Salaries of the employees are considerably less as compared to other private banks, so they are dissatisfied with their work.
Bank stationery is being misused and wasted, which increases its cost.
74

All the branches are not computerized so delays in collecting and recording their data occurs. HRM is not much effective and active in the bank, every must have one HR counter. Bank has grievance department for the internal problems.
Bank are not provide even a cap of tea to their employees
Opportunities
The banking sector has entered into a new era with innovative products and online facilities it is also a great opportunity for MCB if it also provide online facilities and innovation products. They have to planning for balanced funds and capital guaranteed products They are planning for venture into equity in coming months. Government of UAE has declared a free industrial estate that is having its own free port as Jabl-e-Ali, on which no tariffs are to be imposed. So MCB can invest in this area by opening a branch there. Banks know the deposit and credit by products very well. That gives bank an advantage in creating relationship with small business customers. Every small business needs a checking account and may need credit. By giving more importance to small business MCB can increase their operations. Commercial Bankers become a single source of financial services for small businesses, but to do so they must invest in IT that is designed to provide products and services to small businesses. They should look at their branches
75

and web based delivery channels and determines what the appropriate
technology is for small business clients.
Threats
Expansion of newly established commercial bank like Alfalah, Askarai, Union bank etc and their better performance may cause a market share loss to MCB.
ACCORDING TO THE World Bank report. Pakistan has become an over banked economy with the cut throat competition for deposits in the industry battle is on for the market shares. The customers have emerged as the main beneficiaries of the competition. Now they are getting more personalized services and innovative products.
Along with the growth in size, the banks are now incorporating innovative approaches to their traditional commercial banking operations, keeping in view the changing demand of the time, and emphasizing more on personalized service, electronic banking, auto teller machine and evening banking. MCB face problems.
The political influence affects the performance of bank very badly. Most of the loans become bad debts due to political pressure.
No stable government in Pakistan, governments policies change with the change of government.
The concept of evening and Saturday banking, telephonic and online banking, automatic teller machines (ATMs) and credit cards are direct result of the intensive competition.
76

Freezing of foreign currency account by governments of Pakistan is also a fear for the bank.
Micro financing banks also emerged as a big threat for MCB
Conclution and Suggestion:

There should be decentralization in the structure of MCB Bank Limited. A human resource department must exist at least at ZONAL office. Management should make the market survey time to time get more and latest information about the market factors like the price, demand, current consumer trends etc of the RYK market. There is also a need of strong marketing campaign to commercialize it fully. There should be online confirmation of ID card, from NADRA, for opening account in the bank. There must be a room reserved for female workers. Employees should be consider as human not like machine. Small accounts should be properly focused. Night banking facility should be expanded in more branches. There should be suitable / authorized person for the internees. Foreign branches should be opened in order to capture the international market and to earn international repute for the bank. Working environment, equipment, furniture, and staff dressing should be according to the modern banking style.
77

Proper attention should be paid to upgrade customer services.
Conclusion:
During my internship in MCB Bank limited I got of experience. I came to know that how practically work is done in formal as well as informal professional environment. I got a chance to study the psyche of working people. Management plays a big role in conducting all sorts of operations. MCB is now adopting state of art technology very rapidly, as it plays a vital role for the success of any efficiency is coupled with effectiveness. In short, I have got a lot of knowledge from MCB , which would be beneficial for my future career as well as my practical life, because it is considered as a high Standard Commercial Bank.
References:
www.mcb.pk.com
www.google.com.
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Internship Report On MCB

Internship Report On MCB

Internship Report On MCB

Internship Report On MCB

Internship Report On MCB

Internship Report On MCB

Internship Report On MCB

Internship Report On MCB

money deposited with them.

Internship Report On MCB

Internship Report On MCB

MCB History and Background

What is a commercial Bank?

A bank is a dealer in debtshis own and of other people

Internship Report On MCB

OBJECTIVESOF STUDYING THE ORGANIZATION:

Internship Report On MCB

Mohammad Aftab manzoor President & Chief Executive

Chief Financial Officer

Internship Report On MCB

Different banks in Pakistan

Internship Report On MCB

Nationalized commercial Banks

Specialized (State-Owned) Banks

Internship Report On MCB

Internship Report On MCB

REGIONAL OFFICE BAHAWALPUR. LIST OF BRANCHES

Sr. Number Branch Code

PULL DAOW SHAHEED CHOWK Sooiwala Tailwala

REGIONAL OFFICE STAFF

Internship Report On MCB

Internship Report On MCB

ORGANIZATIONAL STRUCTURE SHARE HOLDERS

Internship Report On MCB

BRANCHES AVPs/OFFICERS GRADE I, II, III

CIRCULAR OFFICES EVPs/SVPs

ZONAL OFFICES VPs/AVPs

HIERARCHY CHART OF MCB

Internship Report On MCB

FUNCTIONS OF THE STAFF HIERARCHY WISE

MCBYESTERDAY AND TODAY

Internship Report On MCB

Departments and Their Works

Internship Report On MCB

Requirements for Opening of New Account;

Internship Report On MCB

MAINTENANCE OF EXISTING ACCOUNT

Internship Report On MCB

Cheques and their Payments

Internship Report On MCB

The requisite of a cheque:

The Unconditional Order:

Signed by the Drawer:

Internship Report On MCB

Drawn an a specified banker only:

Sum Certain in Money:

Payable to Specified Person:

Internship Report On MCB

ii. Crossed Cheque

REQUIREMENTS FOR HONRING THE CHEQUE 1. Cheque should be in proper form :

Internship Report On MCB

2. Cheque should not be crossed:

3. Cheque should not be mutilated: