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The Business Internship is prepared on MCBs performance in competitive banking sector & its products & services at MCB City Chowk Branch Bahawalnagar. I would like to thank the following people at MCB City Chowk Branch who provided me help to learn as much as possible during a short span of time. Mr. Zulfiqur Ali (Branch Manager) Mr. Asma Majeed (Operation Manager)

The Business Internship Report is prepared under the supervision of Miss.Sundus Shaheen. I would like to extend my gratitudes to my teacher for his advice, encouragement and valuable suggestions which made it possible for me to complete my Business Internship Report.

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The purpose of research work is to analyze the organization and the performance of MCB Ltd. since 2009-10. This Business Internship Report is prepared on MCBs performance in competitive banking sector & its products & services. The Business Internship Report contains Executive Summary, Introduction, History of MCB Ltd, Product & Services of MCB. During the Internship, I worked in various operations as general banking including cash operation, ATM, account opening procedure and advances. The bank will have to work hard and to meet the challenges of competition and to satisfy the customer to accelerate the business. In this report primary and secondary data is used. In primary data the information is collected by getting briefings from Branch Manager and from the Operation Manager and in secondary data published literature of MCB and the electronic data on MCBs website.

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ABOUT MCB MCB (Formerly Muslim Commercial Bank Ltd.) is the largest private sector bank in Pakistan. The Adamjee group incorporated in 1948. It proposed during the 1950s and 60s. In 1975 it was nationalized with all other private sector bank. Then 1991 it was privatized. Since the bank has been headway in improving of technology. In the year 2006 bank name was changed to MCB Limited. The bank is now included as one of the top most bank of the nation.

MCB has been awarded as a Euromoney Award 2008 for the "Best Bank in Asia" The Chairman of MCB is Mian Mohammad Mansha and the President / CEO is Mr. Atif Aslam Bajwa. MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 60 million. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base. I have learnt a lot in City Chowk Branch about Opening of Accounts, Clearing and Transferring of Cheques, Issuing the Cheques Books, Demand Drafts other Documents etc. The exposure has given me a lot of knowledge especially about consumer banking operations in branch.

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Chapter #1


Banking industry is one of the fasting growing industries of the last decade. We have seen many ups and downs in the banking industry. This is the requirement of Shah Abdul Latif University to do Eight Weeks Internship in any organization to gain practical exposure of the theoretical aspects studied in the semesters. MCB is one of the leading banks of Pakistan with a market share of 12.5%. It is also the pioneer in innovative consumer banking in Pakistan. It is the largest private sector bank in Pakistan. It is the most preferred provider of quality financial services and is usually considered the best place to work. It has developed a large stable deposit base. The bank today boasts of largest online branch and ATM network in the country.

MCB is the only bank in Pakistan that has achieved 7 Euro Money Awards and 5 Asia Money Awards for being The Best Domestic Commercial Bank in Pakistan, along with several other Awards including the Best Trade Finance of Pakistan for two consecutive years. These accolades are the proof of our consistent effort in providing the customers with utmost care and quality.

Muslim Commercial Bank Limited. (MCB), the largest private sector bank in Pakistan. Incorporated in 1948 by the Adamjee group, MCB soon earned a reputation of solid and conservative financial institution. During the 1960s the bank grew rapidly with a concentration on trade finance products. In 1947, MCB was nationalizes along all other private sector banks. MCB was the first bank to be privatized in 1991 during the Nawaz Sharifs government financial sector deregulation policies. During the first five years, the private management concentrated on growth utilizing its extensive network of branches and developed a large and stable deposit base. Since privatization, the bank has made tremendous headway in improving the operational efficiency through human resource development and employment of technology. The bank today boasts the target online brand and ATM network in the country. MCBs main focus remains on consumer banking and its growing reputation as a full service provider gives the bank an edge in front of increased competition in the banking sector in Pakistan. With a network of over 1200 branches and a team of dedicated professionals, MCB with an international outlook and a regional focus ensures prompt customer service and innovative solutions to business and personal needs.

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Chapter #2

Management Hierarchy
The general direction and superintendence of the affairs of the bank are entrusted to a 12 members Board of Directors consisting of a chairman.

Organizational Chart

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Board of Directors
Profile of the Board of Directors Mr. S.M. Muneer Vice Chairman Director Mr. Sarmad Amin

Mr. Shahzad Saleem Director Director

Dr. Muhammad Yaqub

Mr. Tariq Rafi Director Director

Dato Mohammed Hussein

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Mian Raza Mansha Director

Mr. Muhammad Ali Zeb Director

Mr. Aftab Ahmad Khan Director

Dato Seri Ismail ShahudinDirector

Mian Umer Mansha Director

Mr. M.U.A. Usmani President / CEO

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Audit Committee Mr. Tariq Rafi - Chairman Dr. Muhammad Yaqub

Dato Mohammed Hussein

Mr.Aftab Ahmad Khan

Mr. Muhammad Ali Zeb

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Chapter #3


There are three main departments in any branch of MCB  GENERAL BANKING  FOREIGN EXCHANGE  ADVANCES/CREDIT

General banking deals with following services:  REMITTANCE It is transfer of funds. Funds can be transferred in shape of pay orders, demand draft, mail telegram and telegraph transfer. Payments of fees of different organizations, fulfillment of tenders, and collection of funds are the main functions of remittance. Maximum part of general banking depends on this department. Issuance of different kinds of remittance:  PAY ORDER Pay order is the property of person/company that has to take the benefit of the amount being pay ordered by the concerned person. Pay orders are made for the payment of fees, tender or issued for the payments of dealings. These are required for the proof of payments made between the bank and the customer in the favor of beneficiary. These are noted in printed block letters and yearly serial numbers are issued from computerized system.  DEMAND DRAFT Demand drafts are made for the beneficiary for payments, funds etc, these are made for outstation branches of the concerned banks. An advice is also made for the confirmation of the draft send. These are also approved and safe way of sending amount to the beneficiary. These are also noted by computerized system and a serial number is issued from the computer system.  MAIL TRANSFER Mail Transfer is made with in the city for transfer of amount. An advice is also made for the confirmation of the draft send. These are also approved and safe way of sending amount to the beneficiary. These are also noted by computerized system and a serial number is issued from the computer system.

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 TELEGRAPHIC TRANSFER Telegraph Transfer is telegram message for transferring the amount from one branch to other branch. A message advice and a confirmation advice both are made with TT numbers that are issued for TEST. TEST depends on two steps: 1. First TEST is on Day, Date and Code Number of branch. 2. Second TEST is on Currency, whether Pak rupees or foreign currency, amount and TT number issued from manual registers and confirmed from computerized system.  PAYMENT OF PAY-ORDER AND DEMAND DRAFT Pay-Order and Demand Draft both could be paid in shape of physical payment of cash and in case transfer of amounts; the amount could be transferred in the beneficiary account. In case of physical payment authorized signature of beneficiary are taken for the proof of amount being paid to him and in case of transferring of amount authorized signature of the beneficiary are checked and verified for reducing risks.  CANCELLATION OF PAY-ORDER AND DEMAND FRAFT Any type of Pay-Order / Demand Draft is cancelled by the permission and instructions made by the beneficiary. The customer could only cancel the pay-order/demand draft as the verified signatures of beneficiary are present on the advice.  VOUCHERS Vouchers are made for records and they should be completed in all respects, the amount, date, its head, particulars, amount in words, authorized signatures and contra advice or voucher should be present. Vouchers are advice either debit or credit slips. They are contra of each other. If any voucher of debit is passed its contra credit voucher should also be passed for the balancing of accounts, their respective sheets.

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INWARD CLEARING It depends on those checks that are cleared inter branch and with in the city. As the concerned branch receive any type of clearing check first of all physical checking is taken place. For clearing procedure there should be two days margin. These cheques have their vouchers and the amount of the cheque and voucher should be identical. Than these cheques are stamped and noted on receiving sheet as well as feed in to the computerized system.  OUTWARD CLEANING It depends on those cheques that are cleared out side the city. For outward clearing cheques are send because the home branch has there accounts but checks are of other banks. Contras of these cheques are vouchers that are recordrd in the home branch.  TOKEN Token is the process of different steps of checking of the cheque: 1. PHYSICALLY CHECKING First of all the cheque is physically checked. 2. Date It should not be advanced of the latest date, date should be limited to only past six months. 3. AMOUNT Amount in which words and figures should be written in clear writing. Any kind of over writing and cutting should be prevented. Otherwise it would not be passed and returned to the customer. 4. PAYEES / BEARER CHEQUES If the cheques are payees accounts head or they have marked bearer then these cheques are not labeled token. 5. VERIFICATIION OF SIGNATURES Signatures are checked as well as verified. In case of other representative of the account holder brings the cheque then two signatures of that person are taken. 6. STAMPS After physical checking of the cheques they are stamped.  ISSUANCE OF CHEQUE BOOKS Any account holder that has opened the account he/she could credit his/her account and for this purpose there should be a cheque book, so he/she could be able to credit the needed amount whatever he/she wishes. For the issuance of the cheque book a person is advised to fill a requisite slip with his/her full names and the account number with two verified signatures. These signatures are checked and then another requisite slip prepared by the bank staff send to the NIFT, and it issues the printed cheque books after completion of the procedure in two or three days. Account holder can take it by singing on the issuance register or if the absence of the account holder another person could also take the cheque book only if he/she has authorized signature of the account holder. When the cheque books are issued they are feed in the computer system from the requisite slip so when the cheques are given for the repeated nor could the invalid cheques be claimed.

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 iSSUANCE OF ATM CARDS Head office issues ATM (Auto Teller Machine) cards with their PIN (Personal Identification Number) codes and when the customer claims for their ATM card they are checked from the list that is also issued from the head office, and the claim is checked from the list and if the name is found than the cards are issued by taking a signature and their PIN codes are given to them by taking signatures on their ATM card forms. The ATM card has been activated by the number provided at or with the specific card.  CANCELLATION OF ATM CARDS The Cancellation of ATM Cards becomes necessary in the following conditions: If folded or damaged Stolen PIN code missed or forgotten Card captured by the machine and expired If requested by the customer The cancellation or inactivity of the card is being processed by the request or instructions provided from the customer.  SALE OF RTC The selling of the RTC has been described in step wise as follow: In this step the bank initially seeks the information whether the person is going to purchase the RTCs on cash or on account basis. If the transaction is based on account then initially the cheque has been cleared than if the amount is sufficient than RTC has been issued after deducting after the amount from the account. If the amount of RTC is more than Rs. 25000 than tax has levied by 0.3% in case of absence of the tax deduction form. After this the bank handed over a form for RTC sale dully filled by the concerned person and after this RTC number has been noted on the form as well as their amount and quantity. After this we note down the sold RTC in the concerned register. MCB Pak rupee travelers cheques the fastest way to carry cash for high value cash transactions. MCB rupee travelers, the market leader in the rupee travelers cheque market in Pakistan is celebrating nine years of leadership in July 2002. Launched in July 1993, MCB RTCs have been preferred choice of the rupee travelers cheques target market. With over 1.5 million satisfied customers in five years, MCB has been striving hard to package their product better and better each year. We now have RTCs with maximum security features, we have incorporated tele verification with the product where customers can call and check whether the RTC is valid. At the same time, our RTC team anywhere in Pakistan ensures quality service.superior

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 SHORT NOTICE TERM DEPOSIT There are short times either for seven days or for thirty days and the profit is calculated by the given percentage from the head office at the payment time. If the customer fails to complete the duration of seven days or thirty days then no profit is given. If any amount is outstanding, only in case of automatic continuity, then the profit is calculated for the whole period by the rate given from the head office multiplying from the numbers of days divided by the 365 for the one-day profit.  AMOUNT, RATE, NUMBER OF DAYS / 365 DAYS Profit is calculated for the six months only for outstanding SND. Zakat is also deducted but if Zakat deduction form is submitted to the bank, no Zakat will be deducted then, 10% with holding tax is also deducted from the profit to calculate net profit.  CALL DEPOSIT It is highly liquid instrument, it can be cashed at any time when needed. This instrument bears no profit on it. It is mostly used for the purpose of tenders.

 LCS ESTABLISHMENT Any company can provide its documents containing e-form, bill of lading, short shipment notice in case of short shipment, packaging list etc. the information provided from the documents is recorded in the LC establishment portion or section in the computer.  PAYMENT OR RETIREMENT When the transactions have been completed then approved documents from the concerned bank are sent to the home bank for the payment or retirement of the LC. These transactions have recorded in the payment or retirement section of the computer.  FOREIGN CURRENCY DEPOSITS The Foreign Currency Deposit relates with the foreign currency accounts, cash deposit or credit and foreign remittances.

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 FOREIGN REMITTANCES In this we received the messages through SWIFT for foreign remittances, which we record in their respective accounts, if these are relates with Pak rupees than it was transferred in Pak rupees with the latest rate and if this relates to the foreign currency than it is dealt with accordingly. The amount has been credited to the respective account and the head office has been debited against it. After crediting the amount to the respective account. All the subsequent entries have been made in the registers and also in the computer record as the system now have been upgraded on computers. As we are reporting daily to the head office, so an annexure has been maintained and faxed to the head office.

This department deals with the approval of different kinds of loans to different business entities. The loans, which are being approved by the department, are kept with some securities such as bonds, properties and any other type of asset, which is equally valuable or more than this as a guarantee. Every branch has its own limit, if the amount of loans is with in the limit of the branch then it is being approved by the branch but if the amount of loan is exceeding the limit then it has to make it approved by the head office. In this case the branch stored all the required papers and sent them to the head office for necessary action. If the head office approved the loan then mostly the period contains a year. And if the party requires more loan than after a year the loan has been re-approved required that they should have the limit. In case if the head office do not approve the loans then the return letter came back with the reasons of not approval of loan and if the reasons have been made approved by the concerned party then it could be sent again for approval. This whole process is recorded in the back remain with the bank until the party has not refunded all the amount of loan and bank has the authority to liquidate those assets for preventing it from loss.  BASIC BANKING ACCOUNT In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30, issued on 29th November 2005, the Basic Banking Account has been launched with effect from 27th February 2006. This product has been introduced to facilitate the low income group as well as the existing account holders who wish to convert their regular savings or current account into Basic Banking Account. The Basic Banking Account is a current account and can be opened with a minimum initial deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit transactions (each cash or through clearing) and 2 withdrawals (cash or clearing) each month. All customer-initiated transactions over and above this limit will be charged a transaction fee. However unlimited free charge cash withdrawals are allowed through MCBs own ATMs.

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 SAVING ACCOUNT MCBs Foreign Currency Savings Account offers you attractive returns on your foreign currency investment. Unlimited transaction facility, profit credited to your account on a half yearly basis. You can avail a credit facility up to 75% of the total deposits value. A foreign currency account can be opened at any of our foreign exchange dealing branches.  MCB RUPEE MAXIMIZER ACCOUNT MCB Rupee Maximizer Account provides you an opportunity to convert your the recent changes in the economic scenario MCB launched the Rupee Maximizer Account exclusively for its Foreign Currency Account Holders. MCB Foreign Currency Account holders now have an opportunity to convert their Foreign Currency Account balances into Pak Rupees and earn a profit at the rate of 12.6% per annum. Other features include profits calculated on a daily product basis, no restrictions on the number of the withdrawals, no minimum deposit required. Special benefits include one free ATM card and locker facility free of cost. MCB Rupee Maximizer Account is being advertised in leading daily newspaper as well as local papers. Foreign Currency Account into Pak Rupee and earn profit at the rate of 12.6% per annum.  CURRENT ACCOUNT MCBs Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day.  KHUSHALI BACHAT ACCOUNT Open a Khushali Bachat or Dollar Khushali Account, both require low minimum income deposits plus you receive profit on daily product basis. Get a saving with current account facilities through saving 365 or double your investment through capital growth and receive monthly profits through monthly Khushali.  MCB ENHANCED SAVING ACCOUNT Keeping in view the small savers, looking for higher returns on their savings, MCB introduces the Enhanced Saving Account (ESA). This account can be operated via all the channels available at the MCB such as Cheques, Virtual Banking, Mobile Banking, MCB Smart Card and ATMs/Point of sales all across Pakistan. MCB ESA, governed under PLS rules, can be opened with a minimum initial deposit of Rs. 5000 and the profit shall be calculated on an average basis maintained by the customer during that month.

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Following shall be the slabs used for profit calculation:  If average balance is greater than Rs. 20,000 standard PLS rates will apply.  If average balance less than Rs. 20,000 (or equal to 20,000) with up to 4 withdrawal transactions per month (excluding ATMs, PSO, and VB) 4.0% p.a.  If average balance is less than Rs.20,000 (or equal to 20,000) with over 4 withdrawal transactions per month (excluding ATMs, PSO, and VB) then standard PLS rates will apply. The rates mentioned above are expected and shall be revised at least every six months. Average account balances can exceed Rs. 20,000 during a month. However, in that case, they shall be paid profit as per the standard PLS rates, as mentioned in slabs above. Profit shall be calculated on average basis and shall be credited to the account after each calendar quarter.  MCBs PARTNERS IN BILL PAYMENT Pay your bills 24 hours a day, a day, 7 days, and a week. Make total payments of up to Rs. 20,000 per day. Carry out up to 10 transactions per day per card. Make either full or partial payments. Full payment is required for PTCL only. Recharge your pre-paid account for Mobilink, Ufone and Telenor as per their fixed slabs. Pay as a registered or non-registered user. Registration will help you avoid the time delay in entering details each time you carry out a transaction. Pay with MCB ATM Pay through MCB Virtual Pay through MCB Call Centre  INVESTMENT BANKING Our investment banking team has emerged as a leading player in Pakistans investment banking arena. The team handles advisory, corporate finance and capital markets related transactions, within these areas the team has developed expertise in:  Private Placements  Debt/Equity Underwriting  Team Finance Certificates  Loan Syndication  Arrangement of Non-Fund Facilities  Mergers and Acquisitions  Privatization  Corporate Advisory  ABOUT REMIT EXPRESS Fastest to Pakistan, anywhere in Pakistan, 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.

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 FEATURES Easiest and safest way to remit funds, remittance within 24 to 74 hours, personal delivery to the beneficiary, delivery confirmation to the remitter, message facilities for both parties. Your beneficiary will receive the amount even if he/she does not have an MCB account.  PERSONAL LOAN The more you praise and celebrate your life, the more there is in life to celebrate MCB personal loan shortens the distance between your dreams and your celebrations. It is fast, flexible and affordable, speedy loan approval. No guarantor / security / collateral required. Borrow up to Rs. 1,000,000. 1 to 5 year tenures, partial and full adjustments allowed anytime during the tenure, optional insurance, equal monthly installments, lower interest rates, higher loan limits, loan amount renewed anytime after nine months. You as an individual can gain and benefit the through MCB consumer banking. In MCB you get friendly, efficient and attentive personalized banking services, a unique banking relationship experienced by each MCB client.

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Chapter# 4


 ON-LINE The largest network of over 315 on-line branches in the country and growing. Providing customers with 24 * 7 real time on-line transaction facilities.  MCB FULL DAY BANKING Enjoy the convenience of extended banking hours from 9 to 5, even on Saturdays, for satisfying your banking needs at all MCB Full Day Banking branches across the country where you are now served with a wide range of services through the day.  365 A deposit account for customers with substantial balances, offering profit on a daily product basis with the facility of unlimited withdrawals.  MCB SPECIAL RUPEE TERM DEPOSITS MCBs Special Rupee Term Deposits offer a very attractive term investment option with ease and convenience. Tenors options available are of 3 months, 6 months, 1 year, 3 years and 5 years. You can also avail a credit facility up to 75% of your total deposits.  MCB LOCKERS The best protection for your valuables. Lockers of different capacities are available nationwide.  MCB REMIT EXPRESS International remittances with a two-way messaging facility delivered at your doorstop within 24 to 72 hours.

MCB ISLAMIC BANKING MCB Islamic Banking provides Riba Free and Shariah Complaint solutions to various customer segments in a growing number of cities. With the help of Shariah specialists, lawyers and professional commercial bankers, we have the best solutions to cater your needs the Islamic way.  MCB CARDS The Islamia University of Bahawalpur Page 19

A local Point of Sale acquiring network facilitating acceptance of all major card brands.

 CIRRUS MCB Smart Card and ATM card holders can avail cash withdrawal facility at over 900,000 ATMS worldwide.  MAESTRO MCB Smart Card and ATM card holders enjoy the convenience of shopping at over 5 million POS locations globally.  MCB VIRTUAL INTERNET BANKING MCB provides the convenience of banking on the internet. Whether at office, home or traveling log on to www.mcb.com.pk and enjoy 24-hour access to all your accounts at MCB for the largest array of services.

 MCB CALL CENTRE Call now for answers to your queries about banking services. ATM services, mobile banking services, RTC services, tele-banking services and MCB product information.  MCB MOBILE BANKING Banking at your fingerprints. Dial in anytime to get information regarding balance and mini statements.  MCB ATM 24-HOURS CASH The nations largest network of over 210 ATMs and growing. Get 24-hour convenience of cash withdrawal, mini-statement, bill payment and funds transfer services.  MNET MNET is an electronic hub for ATM sharing plus other touch points. Members include 12 local financial institutions enjoying ATM sharing and bureau services. Pakistans largest operating switch with the highest transactions volume.

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 MCB SMART CARDS MCB Smart Card - a secure instrument of payment, offering Cash Free convenience. It provides 24-hour direct access to your bank account and unmatched functionalities.  MCB EASY BILL PAY MCB Easy Bill Pay is an easy solution to pay Utility and Mobile Phone bills. MCB ATM Card or MCB Smart Card holders can easy pay their bills through MCB ATMs, MCB Virtual-Internet Banking and MCB Call Centre with security and peace of mind.  CORPORATE FINANCING Providing access to diversified financing options, including working capital loans, term loans, trade finance services and investment banking.  INSTANT FINANCING Get a loan instantly at any MCB branch. Offering same day financing facility against liquid collateral at competitive pricing.  MCB RUPEE TRAVELLERS CHEQUE The most widely accepted way to pay cash for travel-related purposes. A safe and secure way to make payments nationwide.  MCB BUSINESS SARMAYA MCB Business Sarmaya is a Running Finance facility against your residential property. It offers Running Financing up to 20 million with low mark-up and BTF at competitive rates.  MCB PYARA GHAR

MCB Pyara Ghar is an ideal Home Finance product that lets you purchase, renovate or construct your home the way you have always wanted. Financing available is up to Rs. 20 million.

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MCB CAR4U Auto Finance is your move that gets you not only a car of your own choice but leads you to the best in life. It is affordable with competitive mark-up, flexible conditions, easy processing and above all, no hidden costs.

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MCB is the first Pakistani privatized bank and because of its quality management, marketing, innovation in products and services. Owing to all such factors they have established a good reputation in the banking market. The name of MCB makes you recall the highly cooperative and professional individuals ready to serve you with maximum zeal and zest. MCB have faster banking services that are making it more prominent in the banking industry especially in operations and Foreign exchange. The customer prefers this bank not only because of its faster speedy service rather due to reasonable service charges. MCB in Pakistan is the also in the list of highly automated banks like Emirates because of its modern style of banking through fully computerized control and twenty four hour banking. The joining of experienced people, advanced management, advance setup and facilities gave MCB an edge over its competitors. WEAKNESSES The majority of people are not well aware about the products of MCB. Therefore it should advertise extensively especially RTC and Master Cards. A behavior has been noted that bank tries to feel at ease with good looking, rich and educated people and the poor looking customers feel some bit strange in the environment of the bank. The bank employees should try to accommodate behaviorally all type of customers. In MCB there is lack of specialized skill because of job rotation policy of human resource department. The bank should concentrate upon increasing its abilities on individual service basis. Mismanagement of time is another big mistake in MCB branches, the bank official time of closing is 5:30pm but due mismanagent of time allocation and work the staff is normally on their seats till 7:00 or 8:00 clock.

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OPPORTUNITIES As on December 31, 1998, sixty-eight scheduled banks with 9,106 branches are operating in Pakistan. As on this date, total population of Pakistan is 140.03 million. Total number of personal accounts with all scheduled banks as on December 31, 1997, are 28.98 million. If we consider the population statistics of working age group as on December 31,1997, it stands to the figure of 96.64 million. Thus we can say those 28% of working age people of Pakistan are having accounts with banks while 72% are unbanked. The need of privatization has made people to switch to banks to satisfy their needs of lending and borrowing. This not only increases the deposits but also the credit business.

THREATS Changes in government policies have affected the banking business. Still banks have to wait to get permission of state bank. The freezing of foreign currency accounts is a vital example of letting people not to trust on banks. The Competition has become severe by the entrants of so many banks, So to exist one will have to prove himself in its services through excellent management and will have to satisfy its shareholders. Otherwise he will be out the market. He decrease purchasing power of consumer in the current economic situation of the country affecting the business activity speed too much and the result is the low investment from the investors in new projects can create problem for the bank because it is working a lot in trade.

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Ch#6 Learning as Student

The following activities have been done during the time period of internship. The activities given below are on the weekly basis. Mainly during the internship I worked in all the departments and learned the working and procedures that are necessary for the processes. First And second week: y Observed basic business process y Observed movement of customers and Employees inside the Branch y Learned basics of Account Opening y Opened Accounts of GOVT employed persons y Opened PLS saving Accounts y Opened BBA accounts y Opened Student account In first week I observed the basic business process. At the end of each day I totaled the electricity, water, telephone and check amounts. Mostly the total was correct. Process: Account opening is the basic procedure to create a relationship between a customer and a banker. When a customer opens his/her account it increases the business of the bank. The following steps are taken while a new customer enters in a bank for opening his/her account. These steps are When a customer wants to open an account the authorized officer gives him/her an account opening form. This form is known as RELATIONSHIP CONTRACT FORM. This form is filled out with the hands of the customers. All the required fields that are mandatory for account opening should be filled compulsory. These are the fields like title name of the customer, occupation, address of the customer, phone nos, correspondence address, e-mail address, etc. (a) Requirements for opening an account for the individual; In case of employed person y Copy of CNIC y Salary slip y A letter from employer y Initial deposit of Rs.100 to 1000. y Photo copy of utility bill In case of non employed person y Copy of CNIC y Initial deposit of Rs.100 to 1000. y Photo copy of utility bill. (b) Requirements for opening an account for the partnership; y Copy of CNIC y Copy of CNIC of all the partners y Request letter of account opening y Company letter head y Copy of registered certificate (if registered) y Signature specimen duly attested y Initial deposit may be from Rs.100 to 1000

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In both cases there is some amount which is fixed for opening current and saving account that is; For opening current account Rs.10, 000 is required. For saving account Rs.5000 is the limit. y After all these requirements, the authorized officer attaches two signature specimen forms called SSC and one requisition form. On which the authorized officer put his/her signature and pasted signature admitted and verified and bank stamp on it. y Along with this form the copy of CNIC and a Verisys form and form known as (KYC) is attached with it. y At the last a separate file is maintained for each of the customer for banks record. y Third and Four week: In this week of my internship I learned about Cheque book, Debit card Some details are as follows: y Learned about the issuance of new cheque book. y Filled the ATM request forms y Learned how to issue the ATM cards (A) Process of getting the new Check Book. After opening an account, a letter of thanks is sent to the customers from the Circle Office after 2 or 3 days. After receiving that letter a customer can obtain his/her check book from the bank. But while customer is coming to the bank for receiving his/her check book this letter of thanks should be with him. These are the following steps that are used for gaining check book:

The customer brings the letter of thanks and gives to the authorized person. The person fills the check book requisition slip for the customer and takes his signatures. After 5 days cheque book is given to customer after taking his signature in a separate register But in case if (a) Customer is new than after taking letter of thanks check books would be hand over to him/her. (b) But in other case if customer is not new he is a regular customer than at the end of each check book a requisition slip is attached. So whenever a new check book would be needed the customer will put his/her signature on it and submit it to the authorized officer. (B) Process of getting an ATM/DEBIT card The following steps are taken while issuing an ATM/DEBIT card. When an ATM or Debit Cards issue, the following steps are needed: y A copy of CNIC y A minimum Rs.550 should be in respective account. y After filling up all the required documents for ATM card these documents are given to the authorized person who pasted a verification stamp on these documents and signing on it. And at the end, after 5 days the person is called again to hand over ATM card after taking his Signatures.

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Fifth and Sixth week: The main objective is to know about the different functions of cash department. Cash handling etc.. Although internees were not allowed in cash department because of sensitivity of matter, they provide me maximum possible knowledge, and I spent few time in cash. y Learned basic things about Cash department y Cash Deposit slips Processing y Made invitation letters for customers y Filled Cash deposit slips y Filled some cheques for aged persons y Filled cash deposit slips for online Deposit Some important things that must keep in mind while filling up a check: a. The check should be enchased on that date which has to be written on the check b. No cutting/overwriting is allowed c. Signature should be matched with the ID card signature d. On the back of the check there should be the sign of the issuer I learned that how to accomplish different tasks like deposit, credit cards slips, . Some important things that must keep in mind while filling deposit slips: a. No cutting/overwriting is allowed in amount b. Amount should be same in words and figures c. For online deposit a copy of CNIC of depositor is necessary .

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During the study of internship, I drew the following conclusions. MCB limited has implemented a SYMBOL system which promises the efficiency growth of the bank. MIS and computerization of branches has enhanced the efficiency of the bank. Delegation of authority, wide branch network with ATM installation and wide participation of employees in the decision making provides the bank a competitive edge. The bank provides a conducive environment for career growth. The bank pays a too low rate of interest on deposits which in unattractive for its customers. There are too lengthy formalities and procedures involved in mortgage of properties offered as collateral to the bank. The MCB bank made substation progress, recording strong growth in revenues and earnings. The main derives were increase in outreach, strengthened human resources. Including changes at the senior management level, enhanced product portfolios, improved control and vigilant credit risk management. Our primary focus was our customers and we worked diligently through the year to increase satisfaction and loyalty as the needs and expectation of our diversified base of customers continued to expand. A key initiative aimed at including a segment based approach to the overall business was the segregation of the retail banking group into commercial and consumer banking groups. This expected to help the MCB bank in providing customer centric solution in a more group generated healthy deposit and strengthened its SME lending.

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1. Training can be provided with job rotations so each of the employees is capable of doing others work in case of emergency, this will ensure no delays are met. 2. As MCB earning a lot of profit stock options should be given to every employee. 3. Workers need more computer training. 4. MCB need to invest more in technology and bring all banking procedures up-to-date. 5. They should implement advance technology and make it one window shopping or one window service where each teller is capable of handling every transaction for example payments, deposits, transfers, bill payments, foreign exchange, ATM card issue and opening of new account. This will make MCB more proficient in customer service. 6. ATM network needs to be updated more to handle transfers, deposits, bill payments and print statements. This will free up a lot staff time.

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