MCB

Executive Summary
This report is made after the successful completion of internship with Muslim commercial Bank.
This report consists of ten major parts in which first part describes the profile of the banking
sector in Pakistan; the second part describes the profile of the company, which throws light on
the brief history of bank and also discussed role of organization in economy in Pakistan. In this
part structure and culture and hierarchy of the organization is also discussed.
The third part contains the company business processes of MCB. In this part of the report the
complete company business process is discussed. Forth part elaborates the departmental
functions of the organization in which the complete detail of the individual department is
discussed. In the Fifth portions, brief discussion of the competitors of Muslim Commercial Bank.
The Sixth part of the report consists of the problems face by Muslim Commercial Bank. On the
basis of this problem I recommend some suggestions which are beneficial for the organization.
Last part contains the conclusion. Moreover, at the end enclosed annexure and glossary.
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UNIVERSITY OF EDUCATION, LOWER MALL CAMPUS, LAHORE
INTRODUCTION
History:
MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the Indian
Companies Act, VII of 1913 as a limited company. The bank was established with a view to
provide banking facilities to the business community of the South Asia. After then partition of
the Indo-Pak subcontinent, the bank moved to Dhaka (then the capital of former East Pakistan)
from where it commenced business in August 1948. In 1956, the bank transferred its registered
office to Karachi, Where the head office is presently located. Thus, the bank inherits a 64 years
legacy of trust of its customers and the citizens of Pakistan. MCB Bank is not an overnight
success story. It started with a share capital of Rs 30 million which is divided into 3 million
ordinary shares of Rs 10 each.
MCB Bank Limited with more than 64 years of experience as one of the leading banks in
Pakistan , The bank has journeyed remarkable tenure of more than half a century of
competitively edged and well positioned heights of success by deploying quality banking, heads
on technological developments, professionally leading management and prudent and ethical
work methodologies. In January 1974, the government of Pakistan nationalized MCB following
the banks (Nationalization) Act 1974, subsequently, in June 1974; premier Bank Limited merged
with MCB and was later privatized to Nishat Group lead consortium in 1991.
Since privatization, MCB's growth has been phenomenal. Today, MCB in one of the largest
foreign banks in Sri Lanka, the first bank in Pakistan to launch Global Depository Receipts
(GDR) in 2006, has strategic foreign partnership with Maybank of Malaysia which holds 20%
shares in MCB through its wholly owned subsidiary Maybank International Trust (Labuan)
Berhad since 2008, has international indirect regional presence in Dubai (UAE), Bahrain,
Azerbaijan, Hong Kong and Sri Lanka and a nationwide distribution network of 1,165 branches
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Include 22 Islamic banking branches (December 31, 2011) within Pakistan and 8) branches
outside the country (December 31, 2011 including the Karachi Export Processing Zone Branch),
and over 650 ATMs in 110 cities, in a market with a population of over 190 million with a
customer base of 4 million (apprx.)
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 and managing its non-performing loans via improved risk management
processes.The president of the bank is M.U.A Usmani.
MCB has been successful in turning around its operations since its privatization and is moving
forward to set high performance standards with the continuous support of its customers and
leadership in banking technology. To further strengthen its financial services base, MCB has also
incorporated an Asset Management Company in the year 2005 known as MCB Asset
Management Company. MCB has also incorporated a leasing company in Azerbaijan in 2009.
MCB is reputed as one of the most sound financial institution and as one of the leading banks in
Pakistan with a deposit base of PKR. 462 bln (apprx.) and total assets of PKR 605 bln
(apprx.).The bank is versed as one of the oldest and most responsible banks in Pakistan and has
played pivotal role in representing the country on global platforms while being one of the few
institutions that are recognized and traded in the international market.
The bank has also been acknowledged though prestigious recognition and awards by
Euromoney, MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker.
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The Role of organization in Economy:
The role of the Muslim commercial banks in the growth and development of sound and healthy
economy of the country is briefly discussed as under:
1. Saving mobilization:
MCB play important role in the mobilization of saving by introducing a variety of saving
schemes. Bank induces the people to earn interest through saving and it provides various
facilities in the country to create a will and power to save. Muslim Commercial Bank has
opened up branches in urban and rural areas to mobilize savings of the people.
2. Availability of Funds:
An additional point of role of MCB is more availability of funds. Poor population has
poor resources for the economic development in poor countries like Pakistan. The
activities like inventions and innovations, research and development and initiatives
(effectiveness in responding to challenges) are impossible due to insufficiency of funds in
these countries. Bank removes the deficiency of capital by providing different types of
funds that leads to economic development.
3. Facilitating trade activities:
The third role of MCB to collect the savings of the people arid make them available for
facilitating trade activities both inside and outside the country.
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4. Helping SBP in achieving monetary policies:

The Muslim commercial bank under the supervision and guidance of the State Bank of
Pakistan help in implementing and achieving the objectives of the monetary policy which
vary from time to time.
5. Implementation of Modern Technology:

Economic development without use of advanced and the most up-to-date technology is
impossible. Almost in all the economic sectors backward techniques of productions are
used due to poverty in third world countries like Pakistan. Bank provides more funds to
people to make it possible to use the modern techniques of production. Due to
implementation of modern technology, there is increase in production level, decrease in
cost and save in time.
6. Provision of agency services:

The MCB provide agency services to the clients. They receive and pay cheques. They
collect dividends and pay interest and premium on behalf of the clients. They keep their
valuables in safe custody. They help in the mobility of capital and thus stimulate capital
in the country.
7. Development of Agriculture Sector:
MCB is playing an important role in the development of rural and agriculture sector.
MCB is financing agriculture sector since 1973.MCB has reinvigorated its agri financing
products under the brand name MCB Green Scheme. The scheme is designed and aimed
at meeting all types of financial needs of agriculture sector covered under extended list of
eligible items.
8. Profit, sharing scheme:
The MCB Islamic banking has now introduced interest free banking in Pakistan. The
depositors instead of having a fixed return on the deposits will share in the profit and loss
of the banks. The Profit and Loss Sharing (PLS) arrangement which is an alternative to
interest under an Islamic Economic System is now operating in Pakistan.
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9. Expansion of Market:
Muslim Commercial Bank helps in the expansion of market. They help in the formation
of sound economic infrastructure in order to raise living standards and to expand trade
and commerce of an economy. It causes development of industrial as well as agriculture
sector. Accordingly, there is expansion of market that results in economic development.
10. Provision of Valuable Services:
The MCB is providing a lot of valuable services for the economic development. Some of
the most important services provided by MCB as under:
Due to use of credit instruments like Cheques, drafts and saving

accounts, bank has reduced the use of currency at the cheapest costs
and in the safest manner.
Bank serves as business and commercial agents of their customers.
Bank provides locker facility.
Banks accept the various utility bills.
They guide the investors while making investment decisions.
Bank advance loans for education in foreign countries.
11. Modern Facilities:

Now MCB bank providing various modern facilities like:
MCB VIRTUAL BANKING:
MCB Virtual Internet Banking offers you the convenience
to manage and control your bank account and finances;
when you want and where you want. MCBs Virtual
Internet Banking facility is:
o Simple
o Secure
o Free of cost.
ATM & Online facilities & Balance ready cash etc.
Mobile Banking and Call Centers, Smart Card and Debit cards.
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Contact Us:
We're here when you need us.

No matter what you need help with, no matter where you are, you can always reach us.
Branch Code:
0494
Branch Name;
Khanewal Branch
Address:
Khanewal Ghalla Mandi, Khanewal.
Branch manager No:
03346111686
Contact Numbers(s):
065-2554762
Fax Numbers(s):
065-2551307
Email:
mcb0494@mcb.com.pk
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Business Philosophy:
MCB Bank knows the best to deal with its customers and thus has a customer oriented
philosophy. The MAB philosophy in their words is described below
For us, you are not just a set of numbers; you are a valued customer whom we know by name.
This helps us serve you exactly the way you want us to thats the difference! We offer effective
solutions derived from our personal knowledge of all your banking requirements which are met
when we meet youby name.
Vision Statement:
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future.
Mission Statement:
We are a team of committed professionals, providing innovative and efficient financial
solutions to create and nurture long-term relationships with our customers. In doing so, we
ensure that our shareholders can invest with confidence in us.
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CORE VALUES:
INTEGRITY:
We are the trustees of public funds and serve our community with integrity. We believe in being
the best at always doing the right thing. We deliver on our responsibilities and commitments to
our customers as well as our colleagues.
RESPECT:
We respect our customers values, beliefs, culture and history. We value the equality of gender
and diversity of experience and education that our employees bring with them. We create an
environment where each individual is enabled to succeed.
EXCELLENCE:
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a
performance driven, result oriented organization where merit is the only criterion for reward.
CUSTOMER CENTRICITY:
Our customers are at the heart of everything we do. We thrive on the challenge of understanding
their needs and aspirations, both realized and unrealized. We make every effort to exceed
customer expectations through superior services and solutions.
INNOVATION:
We encourage and reward people who challenge the status quo and think beyond the boundaries
of the conventional. Our teams work together for the smooth and efficient implementation of
ideas and initiatives.
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OBJECTIVES:
Following are the objectives of Muslim Commercial Bank Limited.
1. CREATING AND MANAGING VALUES:
The first objective of Muslim Commercial Bank Limited is to create and manage the values,
which is one of the back bone of the objectives of any well organized and managed organization.
2. HUMAN VALUES:
The second objective of Muslim Commercial Bank is to take care of the Human capital which is
a necessary thing for the development and prosperity of any well-established organization.
3. BEST PLACE TO WORK:
The third objective of Muslim Commercial Bank Limited is to make it a place which is much
feasible and comfortable for employees of the bank. The MCB is always conscious in developing
such place where employees of the bank feel easiness.
4. TECHNOLOGY:
The forth objective of Muslim Commercial Bank Limited is to bring new and latest technology
in the operations of the bank. At MCB, technology has a direct relation with your needs; it is a
means for creating value and convenience for the customer. Over the last few years MCB has
invested heavily into strengthening its technology backbone. Today it is leading the way in
banking technology and setting new standards for the banking industry; penetrating into the local
market, listening to the needs of the people and educating them of simple financial products and
services that creates both value and convenience. MCBs strength lies in providing a
technological base at the grass roots level of the society with a challenge to educate and
assimilate such systems across vast cultural and economic backgrounds. With over 768
automated branches, 243 online branches, over 151 MCB ATMs in 27 cities nationwide and a
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network of over 16 bank son the MNET ATM switch, MCB continuously innovate new products
and services that harness technology for the customers benefit.
5. UNDERSTANDING RELATIONSHIPS:
The fifth and very important objective of Muslim Commercial Bank Limited is to create such an
environment which is suitable for creating understanding and relationship between the
employees, thus going towards the way of development and prosperity. Over the years, MCB has
fostered strong bonds with its customers. Understands them; their needs. They feel comfortable
with MCB; its their bank; it responds to them; listens to them; partners with them; grows with
them. At MCB, banking is all about being there for people, making a home in their heartscontinuously building relationships on mutual trust and confidence. We understand that
relationships are about expectations-our products and services are based on your customers,
expectations. Be it financing for personal or business related needs, funds transfer and trade
related facilities or need for different types of deposit accounts, MCB offers you a variety of
products and services customized to satisfy your individual needs.
6. UNDERSTANDING CONVENIENCE:
The next objective of Muslim Commercial Bank Limited is to make understanding a convenient
thing for the whole environment of the bank, for the purpose of boosting up its values and
prosperity in such a competitive environment. Convenience is what the customer is looking for;
and this is what we at MCB are continuously striving to provide. Whether it is the 24 hours cash
convenience of our ATM network or the easy availability of financing requirements or simple
opening of account, MCB has tailored its products and services to make your life easier. MCB
knows the particular needs of its diverse customer base d continuously develop products and
services that fulfill these needs.
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7. UNDERSTANDING RELIABILITY:
The last but not least objective of Muslim Commercial Bank Limited is to make an environment
which have an understanding of reliability in the whole structure of the bank. With a strong
financial base, a promising team and the right resources, MCB has proved to be a reliable partner
indeed. MCB understands the special needs of the business, trading and agricultural sectors.
Strategically located branches in small towns and cities provide warm services and advice to the
small businessmen and local traders. MCB speaks their language; it understands their needs and
provides tangible results. By responding in a timely manner with a flexible approach, MCB
provides its clients with the reliable financial service and support they require to successfully
achieve their business objectives. With a solid foundation of over 50 years in Pakistan and
having recently completed 10 successful years of privatization, MCB is strongly positioned to
lead the banking sector in the new millennium. You can feel safe in our hands.
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MARKET STANDING:
MCB has an edge over other local banks, as it was the first privatized bank. The State Bank of
Pakistan has restricted the number of branches that can be opened by foreign banks, an
advantage that MCB capitalizes because of its extensive branch network.
Ten years after privatization, MCB is now in a consolidation stage designed to lock in the gains
made in recent years and prepare the groundwork for future growth. The bank has restructured its
asset portfolio and rationalized the cost structure in order to remain a low cost producer.
MCB now focuses on three core businesses namely Corporate, Commercial and Consumer
Banking. Corporate clientele includes public sector companies as well as large local and
multinational concerns. MCB is also catering to the growing middle class by providing new asset
and liability products. The Bank provides 24 hour banking convenience with the largest ATM
network in Pakistan covering 41 cities with over 225ATM locations. The Banks Rupee Traveler
Cheques have been market leaders for the past six years and have recently launched their Gift
Cheques Scheme.
MCB looks with confidence at year 2005 and beyond, making strides towards fulfillment of its
mission, "to become the preferred provider of quality financial services in the country with
profitability and responsibility and responsibility and to be the best place to work".
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MANAGEMNT SYSTEM
Organizational Structure:
As MCB is a banking company listed in stock exchange therefore it follows all the legalities
which are imposed by concerned statutes Mr. Muhammad Mansha is chairman& chief executive
of the company with a team of 10 directors and 1 vice chairman to help in the business control
and strategy making for the company.
MCB is a very large and complicated organization having many divisions, branches, and
administrative offices all over the country and outside the country. MCB is running its operations
successfully since1947 and reached to the top of the banking industry. Normally it is said that
MCB has no specific organizational structure, but it is not true because no bank without its
proper organizational structure could sustain No. 1 position for so many years. However, MCB
policies are very flexible and changes frequently according to the situation.
Still many decisions of small importance, are made by Top Management for control purposes. So
there is a mix of centralized and decentralized authority in this respect. (The tendency to restrict
delegation of decision making in an organization structure, usually by holding authority at or
near the top of the organization structure.)
Operational Management of the bank is being handled by a team of 10 professionals. This team
is also headed by Mr. Muhammad Mansha. The different operational departments are Consumer
Banking & IT div; Financial & Inter branch div; Banking operations div; HR & Legal div;
financial control & Audit div; Credit management div; Commercial Banking div; Corporate
Banking div; Treasury management & FX Group and lastly Special Assets Management (SAM)
Group.
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For effective handling of branches, it has been categorized into three segments with different
people handling each category. These categories are:
Corporate Banking
Commercial Banking
Consumer Banking
CORPORATE BANKING:
These are branches, which have an exposure of over Rs. 100 million. Usually includes
multinational & public sector companies.
COMMERCIAL BANKING:
The branches which has a credit exposure of less than Rs. 100 million but having a credit
portfolio of more than Rs. 20 million (excluding staff loans).
Usually branches in large markets and commercial areas come under this category.
CONSUMER BANKING:
These are the branches that have exposure up to Rs. 20 million and these include all the branches
that are neither corporate nor commercial branches.
PROVINCES WISE BRANCHES:

Corporate
Consumer
20 branches
637 branches
Commercial
383 branches
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ORGANIZATIONAL STRUCTURE:
President
Group heads
Divisions and field
Circle offices
Regional offices
Branch offices
Organizational structure of MCB Branch Khanewal:

Mr.Jawad Shahid Khan is acting as a branch manager in Khanewal, branch.
Operational manager Mr. Muhseen Hussnain of the branch handled the 10 subordinates. This
team is also headed by Mr. Jawad Shahid Khan Branch Manager for effective handing of branch;
it has been categories into three segments with different people handling each category. These
categories are:
a) Foreign trade manager
b) Operations manger
c) Credit manger
a) Foreign trade Manager:

Foreign trade Manager is too responsible for exports and imports of funds. He is too
responsible in front of branch manager.
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b) Operations manager:
Operations manager is to be responsible of:
o Accounts departments
o Systems
o Remitted
o Cleaning
o General Services
c) Credit Manager:
Credit manager is to look after all credit facilities like, Term Loans, Running finance facilities
etc.
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MANAGEMENT HIERARCHY:
Chief Manager
Operational manager
Credit department
Operation
officer
Supervisor
Cash dep.
(Chief cash)
Clearing
Teller
Teller
Deposits/ withdrawals
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COMPANY PROFILE:
MCB Limited Key Data:
Ticker:
MCB
Country:
PAKISTAN
Major Industry:
Financial
Sub Industry:
Commercial Banks
Sales 2011:
76,415,174,000 (Year Ending Jan 2012).
Employees:
10,199
Currency:
Pakistan Rupees
Market Cap:
169,309,454,239
Fiscal Year Ends:
December
Shares Outstanding:
919,860,123
Share Type:
Ordinary
Closely Held Shares:
69,466,057
Full name:
Muslim Commercial Bank Ltd
Status:
Listed
Legal Form:
Public Limited Company
Operational Status:
Operational
Tel:
021- 9212432
Phone:
92-42-3604-1621
Fax:
92-42-3577-661
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Headquarters:
Consumer Protection Department State Bank of Pakistan 5th Floor, SBP Main Building I.I
Chudrigar Road, Karachi; Pakistan
Web site:
www.mcb.com.pk
Corporate Profile:
Names
Designations
Board of Directors
Mian Mohammad Mansha
Chairman
Mr. S. M. Muneer
Vice Chairman
Mr. M.U.A. Usmani
CEO / President and Member
Mr. Tariq Rafi
Member
Mr. Shahzad Saleem
Member
Mr. Sarmad Amin Member
Member
Dr. Muhammad Yaqub
Member
Mian Raza Mansha
Member
Dato' Mohammed Hussein
Member
Mr. Aftab Ahmad Khan
Member
Mr. Abdul Farid Bin Alias
Member
Mian Umer Mansha
Member
Mr. Muhammad Ali Zeb
Member
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Audit Committee:
Mr. Tariq Rafi
Chairman
Dr. Muhammad Yaqub
Member
Dato' Mohammed Hussein
Member
Mr. Aftab Ahmad Khan
Member
Mr. Muhammad Ali Zeb
Member
Mr. Malik Abdul Waheed
Member
Human Resources Committee

Chairman
Dr. Muhammad Yaqub
Member
Mian Raza Mansha
Member
Mr. Shahzad Saleemn
Member
Mr. M.U.A. Usmani
Member
Risk Management & Portfolio

Review Committee
Mr. Shahzad Saleem
Chairman
Mr. Tariq Rafi
Member
Mr. Sarmad Amin
Member
Mian Raza Mansha
Member
Mian Umer Mansha
Member
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Committee on Physical Planning,

IT System & Contingency
Arrangements
Mr. Sarmad Amin
Chairman
Mr. S. M. Muneer
Member
Mr. Tariq Rafi
Member
Mian Raza Mansha
Member
Mr. Abdul Farid Bin

Alias
Member
Mr. M.U.A. Usmani
Member
Business Strategy & Development

Committee
Chairman
Mr. S. M. Muneer
Member
Mr. Shahzad Saleem
Member
Mian Raza Mansha
Member
Dr. Muhammad Yaqub
Member
Dato' Mohammad Hussein
Member
Mian Umer Mansha
Member
Mr. M.U.A. Usmani
Member
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MCB Bank Limited (the Bank) is a banking company engaged in commercial banking and
related issues. It operates 1,165 branches including 22 Islamic banking branches within Pakistan
and eight branches outside the country. The Bank operates through five segments: Corporate
Finance, which includes underwriting, securitization, investment banking, syndications, initial
public offer and related activities; Trading and Sales, which includes fixed income, equity,
foreign exchange commodities, landings and borrowings from financial institutions and
brokerage debt; Retail and Consumer Banking, which includes retail lending, deposits, banking
services, banking services and retail offered to retail customers and small and medium
enterprises; Commercial Banking, which includes project finance, export finance, trade finance,
among others to corporate customers; and Asset Management, which includes asset
management, investment advisory, portfolio management, equity research and underwriting.
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Management responsibilities:
Bank management direct bank branches and departments, resolve customers problems, ensure
that standards of service are maintained, and administer the institutions operations and
investments, in addition to overseeing the following employees:
Bank tellers:
The largest number of workers in banking provides routine financial services to the
public. They handle customers deposits and withdrawals, change money, sell money
orders and travelers checks, and accept payment for loans and utility bills. Increasingly,
tellers also are selling bank services to customers.
New accounts clerks and customer service representatives:
Answer questions from customers, and help them open and close accounts and fill out
forms to apply for banking services. They are knowledgeable about a broad array of bank
services and must be able to sell those services to potential clients. Some customer
service representatives work in a call or customer contact center environment, taking
phone calls and answering emails from customers. In addition to responding to inquiries,
these workers also help customers over the phone with routine banking transactions and
handle and resolve problems or complaints.
Loan and credit clerks:

Assemble and prepare paperwork, process applications, and complete the documentation
after a loan or line of credit has been approved. They also verify applications for
completeness.
Bill and account collectors:
Attempt to collect payments on overdue loans. Many general office clerks and
bookkeeping, accounting, and auditing clerks are employed to maintain financial records,
enter data, and process the thousands of deposit slips, checks, and other documents that
banks handle daily. Banks also employ many secretaries, data entry and information
processing workers, receptionists, and other office and administrative support workers.
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Office and administrative support worker supervisors and managers oversee the activities
and training of workers in the various administrative support occupations.
Loan officers:
Who evaluate loan applications, determine an applicants ability to pay back a loan, and
recommend approval of loans. They usually specialize in commercial, consumer, or
mortgage lending. When loans become delinquent, loan officers, or loan counselors, may
advise borrowers on the management of their finances or take action to collect
outstanding amounts. Loan officers also play a major role in bringing in new business
and spend much of their time developing relationships with potential customers.
Trust officers:
Manage a variety of assets that were placed in trust with the bank for other people or
organizations; these assets can include pension funds, school endowments, or a
companys profit-sharing plan. Sometimes, trust officers act as executors of estates upon
a persons death. They also may work as accountants, lawyers, and investment managers.
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POLICY FORMATION PROCESS:

At MCB Bank all policies are formulated at the Head Office at Karachi and are then distributed
among the vast network of more than 950 branches of MCB.
Among some of the policies they implement are that the Commercial Office East or West,
keeps in view new opportunity for a suitable and profitable location for its new branch.
But as all policies are done by the HO no suitable information could be gathered.
MANAGERIAL POLICIES:
Managers handle their staff at branch level. The duties assigned to them are to keep the monthly
deposit up to the mark; opening of new accounts has to be either stable or increasing.
They are responsible for assigning leaves to their staff on yearly basis and even handle
emergency absence. MCB has a rule of working 9 to 5 daily but, internally their staff has
alternate off on Saturdays. The manager has to develop a leave program so as this routine does
not disturbs any customer.
They have to handle the problems of disappointed or angry customers and convince them about
the best service MCB provides.
They receive specific targets which they have o achieve within the given time period which
results in bonuses distributed among the staff and the manager released by the HO.
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PROCESS GUIDE:
POLICIES:
Internship policy:
MCB is the bank that serves all type of customers and makes its policies
according to their needs and demands here the MCB has the policy to serve the
students that is six weeks internship.
Opening account policy:
Prior to establishing a relationship with new customers MCB obtain basic
information i.e. business, source of income, excepted level of activity in the
account and reasons for opening the account.
Training of employees:
MCB has the program through which all the employees of the bank get proper
training and then work for the achieving the goals.
Investment policy:
MCB also invest its money other than the advance, while investing in the
securities MCB has the following policy to invest in;
Held for trading
Held to maturity
In the light SBP regulations quoted securities are shown at market values and any
changes arises are taken to profit and loss account only upon actual realization.
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Hiring policies:
MCB have proper employee hiring policies, they follow these policies strictly,
due to which they have the best employees and by this they get the long term
benefits.
Holidays schedule:
MCB provides a schedule of holidays by which the employees get term holidays
and the work remains undisturbed.
Retirement policies:
MCB provides facility of retirement for their employees, by which the employee
could get retirement and can avail new chances etc.
Human resource functions:

The human resources department (HRD) supporter the importance of the
individual while thinking strategically .HR conveniences the establishment of
an atmosphere in which people have the incomes to continuously grow in
motivated for carry on improvement for the remunerations of all stakeholder.
Situated as strategic business unit within the commercial structure of the MCB,
the HRD,s has as its prime responsibility to give to the organizations efficiency by
attractive its people and line up the strategies and actions and system to the policy
of the business. it is through this that the HRD adds value to the institution.
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The human resources department (HRD) conveniences and partner with its customers
(MCB staff) in applying the planned strategy through.
Capability grounded HR systems.
Policy and actions
Evolving abilities
Appearance organization
Clear and exposed statement
Remuneration and appreciation
Employee happiness
Variety
Agreement
Human resources outlet is to assurance the important services, progresses and policies are in
place to succeed employee to accomplish at their finest, be safe and satisfied with their work and
be properly developed .human resources is also vital to settle that employees energy in an
atmosphere which is in unity with the departments values, the related legislative requirements
and public service values and best training.
Human resources area office is liable for the administration of the human resources role for the
department of human services .this entail of responsibility for human resources systems, policy
and training through the branch. The branch is planned to importance on planned human
resource work, the supervision of departmental mangers and human resources staff in areas and
divisions.
Human resources have a number of areas of focus including:
Employee relation
Employee security
Managerial facilities
Arrangement and concert
Organizational capability
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Organization growth and maintenance
The human resources branch managers a number of organization-wide schemes through the
department in the above areas, in association with human resources staff in area and programs.
The branch everything closely through manufacturing relation branch (situated within financial
and commercial facilities division) in evolving and applying enterprise negotiating agreements
and issue resolution with mergers covering the departments employees.
MUSLIM COMMERCIAL BANKS EMPLOYEE DEVELOPMENT RECOGNISED BY

GLOBAL ACCOUNTANCY BODY:
ACCA (the Association of Chartered Certified Accountants), the worlds largest and fastestgrowing professional international accountancy body, has recognised Muslim Commercial
Bank for qualifying as an ACCA Platinum Level Approved Employer under trainee
development scheme. This status acknowledges the high standards of training and development
which MCB provide to its employees.
As part of the programme, employers whose training schemes meet ACCAs rigorous criteria
can become ACCA Approved Employers under the professional development stream, and are
rewarded with a broad range of tools to help implement their staff development programmes.
These include e-learning resources such as online courses, a continuing professional
development (CPD) planning tool known as the professional development matrix and a
knowledge library, an internet based research resource tool.
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Mr. Arif Masud Mirza Head of ACCA Pakistan, said: Increasingly, the provision of
comprehensive training and development is seen as an important factor by employees when
considering which employer to choose. ACCAs approved employer programme provides a
benchmark of good practice to employers around the world and gives public recognition to these
organizations for the quality of support and training they invest in their employees.
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MARKETING MIX
Marketing mix is one of the key concepts in modern marketing era.
"Marketing Mix is the set of marketing tools that the firm uses to pursuits marketing objectives
in the target market".
Marketing is very essential in the increment of profit of an organization. It has been observed
that the MCB is looking after all the basic requirements. The management of MCB Bank is
concerned enough to accept and modify the desired changes in their organizational setup to
attract maximum customers.
Marketing is the task of creating, promoting and delivering goods and services to consumers and
businesses. Organizations identify and profile distinct group of buyers who might prefer or
require varying products and marketing mixes. The customer seeks for value and satisfaction.
The organizations can increase the value of the customer offering in several ways e.g. raising
benefits, reducing costs etc. Marketing mix is a set of marketing tools that the firm uses to
pursue its marketing objectives in the target market.
There is no separate department for marketing in every branch only Karachi main branch hold it.
In every branch 2 or 3 people are there to provide the promotion services. Marketing is done on
high level because management is centralized. Now are discussed four variables of marketing
mix of MCB Bank. These marketing tools are known as 4 ps of marketing.
Product
Price
Placing
Promotion
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PRODUCT:
Anything that can be offered to a market for attention, acquisition, use for consumption that
might satisfy a need. It includes physical object, services, persons, places, organization and
ideas."
- The largest network of 315 on-line branches in the country and growing,
providing customers with 24 x 7 real time online transaction facilities.
- A deposit account for customer with substantial balances, offering profit on

daily product basis with the facility of unlimited withdrawals. The higher you save, the higher
you go. MCB Savings 365 Gold Account offers you a wide range of attractive profit rates.
KEY POINTS:
The higher your balance, the higher your rate.

Profit calculated on daily basis.
Profit paid into your account every month.
Open your account with Rs. 500,000/- only.
Cash deposit and withdrawal facility at hundreds of branches nationwide.
35
- The best protection for the valuables of MCB customers. Lockers of

different capacities are available nationwide.
- International remittances with a two way messaging facility delivered at

customers doorstep within 24 to 72 hours.
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.
MCB SPECIAL RUPEE TERM DEPOSITS MCBs Special Rupee Term Deposits offer a
very attractive long term investment option with ease and convenience. Tenors option available
is of 3 months, 6 months, 1 year, 3 years, and 5 years. Customers can also avail a credit facility
up to 75% of total deposits.
MCB Islamic Banking provides Riba Free and Shariah Compliant

solutions to various customer segments in a growing number of cities. With the help of Shariah
Specialties, lawyers and professional commercial bankers, MCB offers the best solutions to cater
their customers needs the Islamic way. Islamic banking services through exclusive
units/branches offering a range of liability and asset based Sharia compliant products like
Musharika, Murabaha, Ijara and Istasana.
36
MCB CARDS A local point of sale acquiring network facilitating acceptance of

all major card brands.
- MCB Smart card and ATM card holders can avail cash withdrawal facility at over
900,000 ATMs worldwide.
- MCB Smart card and ATM card holders can enjoy the convenience of shopping at
over 5 million POS locations globally.
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- A 5- year fixed Deposit Scheme, targeted to persons with small savings

who would desire a regular monthly return on their investment.
Salient Features:
Minimum amount of investment shall be Rs.0.010m and the maximum amount of
investment would be Rs. 1.000m.
Khushali Certificates can be purchased by individuals (singly or jointly) or by the
Proprietorship/Partnership concerns or Companies, etc. in their name.
The Khushali Certificate will be of five years maturity.
The interim rate of profit offered will be minimum 1% per month. If the profit declared
by the bank is higher, additional profit will be paid.
Zakat will be deducted wherever applicable on yearly basis whether you will be receiving
your profit or enchasing your certificates.
As per Government Directions, tax on the profit / return is to be deducted by MCB

branches at the time of payment.
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- 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 designed to be fast, flexible and affordable so that you can live free and Celebrate Life!
Hajj Mubarak Scheme - A saving scheme, of 2/3 years duration, for the convenience of
persons, with a limited income, who desire to perform Hajj was introduced
Under the 2 years scheme, a monthly deposit of Rs.1800 is required, whereas under the 3 years
scheme, the required monthly deposit is only Rs.1200.
Capital Growth Certificate Scheme

For long term depositors under which the amount deposited almost doubles at the end of 5 years.
For the scheme, the minimum amount of deposits is Rs. 10000 while there is no maximum limit.
In case of premature encashment of the certificate, the depositor will profit at the same rates as
that of PL Saving Account.
- MCB mobile banking brings banking to fingertips. Customers can dial in

anytime to get information regarding balance and mini statements. At the forefront of
technological excellence, MCB proudly introduces MCB MOBILE BANKING*. The
convenience of accessing account balance information and mini statements whenever want or
wherever may need them, with comfort and peace of mind. MCB Mobile Banking service is
available to all MCB ATM cardholders, 24 hours - 365 days.
39
- MCB provides the convenience of banking on the internet. Whether at

office, home or traveling, customers can log on to www.mcb.com.pk and enjoy 24 hour access
to customers for their accounts at MCB for the largest array of services.
- Customers can call for answers to their queries about banking services,
ATM services, mobile banking services, RTC services, Tele banking services, and MCB
product information. Our well-abreast and friendly call center team is available 24 x 7, 365 days
a year to ensure that your daily financial obligations are taken care of guaranteeing you a good
nights sleep.
Welcome to the MCB PHONE BANKING Experience: 111-000-MCB (622)
o General Inquiry e.g. ATM Locations, Product Information etc.
o Financial Services e.g. Account Balance Inquiry, Debit Card, Transaction detail, bill
payments etc
o Non-financial Services e.g. Internet Banking activation etc.
- Business Set... Tau Life Set! Good cash flow is the key to any successful
business. MCB Business Sarmaya' offers running finance facility against your house/flat,
insuring a steady cash flow for your business. So now you can breathe easy, because Business
set....tau Life Set.
Flexible:
Affordable:
High Loan Amount:
Speed:
Ease:
Wide Accessibility and Availability:
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- MCB has the largest network of ATMs with around 210 at present and is still
growing. Customers can get 24 hour convenience of cash withdrawal, mini statement, bill
payment, and funds transfer services.
- MNET is an electronic hub for ATM sharing plus other touch points.
Members include 12 local financial institutions enjoying ATM sharing and bureau services.
MNET is Pakistans largest operating switch with the highest transaction volume.
- MCB customers can get a loan instantly at MCB Branches. MCB offers
same day financing facility against liquid collateral at competitive pricing.
- MCB easy bill pay is an easy solution to pay utility and mobile phone bills. MCB
ATM card and MCB Smart Card holders can easily pay their bills through MCB ATMs, MCB
Virtual Banking, and MCB Call Centre with security and peace of mind. With the aim of
extending this service to wider range of customers, the number of MCB branches collecting
Utility Bills more than 900.
- providing access to diversified financing options, including working

capital loans, term loans, trade finance services, and investment banking.
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- RTC is the most widely accepted way to pay cash for travel related purposes.
MCB RTC is a safe and secure way to make payments nationwide. MCB Rupee Travelers
Cheques are as good as cash, in fact better. Better because with Rupee Travelers Cheques you
have the power to purchase and a feeling of security that should you lose them, you will get a
refund .MCB Rupee Travelers Cheques are accepted at major shops, travel agents, hotels,
business establishments and MCB branches all over Pakistan. You don't have to be an MCB
account holder to buy the Rupee Traveler Cheques. Anybody can purchase them. It's a safe and
convenient way to conduct everyday business. At a time when thefts and robberies are on the
increase, you are better off carrying Travelers Cheques rather than money.
- MCB Pyara Ghar is an ideal home finance product that allows customers to
purchase, renovate or construct their home the way the want to. Financing available is up to 20
years for amount up to 20 million. MCB gives dream home at the lowest and best possible markup rates. You can choose either one of our two mark-up rate options- fixed or variable. Early
repayment option tailor-made to allow making partial pre payments at dates that suit.
Who Can Apply?
Anyone who fulfills the following criteria is eligible to apply:
Pakistani national residing in the city and area where the product is launched 25 years old
or above when you apply and under 60 at the time of maturity of the applied financing
period.
Salaried person, self-employed professional or a businessman with a verifiable monthly

income stream.
Net take -Home income not less than Rs. 25,000 per month.
Have 5 years or more of business or professional experience.
Employed with the present employer for 2 years with a total employment history of 5
years.
Home Purchase Home Renovation Home Construction.
Tenure 3 years to 15 years 2 years to 5 years 3 years to 15 years.
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- Life is like a chess board. You plan your career options. You analyze your
business moves. But when you really want to improve your life, you make a power move. MCB
Car4U auto finance is the power move that gets customers not only car of their choice but leads
to the best in life. It is affordable with competitive mark up, flexible conditions, easy processing
and above all no hidden costs.
PRICE:
"The amount of money that customers pay for the product"
Price should be commensurate with the offers perceived value. If it is not, customers will turn to
competitor's product. Prices offered by MCB Bank Limited are according to the high quality
services they render to their customers.
About the markup charges its vary banks to banks but not very much difference according to my
analysis. MCB bank has different tenure to different products so and also the different rates to
charge. They believe in the higher the amount the higher the profit.
PLACE:
"Place includes the various activities the company undertakes to make the product accessible
and available to the customer".
They also have a banking network of more than 950 branches. If you want financial advice, walk
into any of their branches. Head office and Main office is on the in Karachi, which is the center
of business activity. Locations of MCB Bank depend on the locality around and how much
business it supports. The services provided to customers too depend on the location of the branch
and its total deposits.
About the future development union bank is looking forward to open its more branches in the
various cities of Pakistan. This will create more flexibility and also give the diversification to the
bank.
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PROMOTION:
"Promotion includes all activities that an organization undertakes to communicate and
promote the products to customers. Promotion programs consist of advertising, sales
promotion and public relations."
At MCB Bank it is appreciated if staff member introduces new customers but usually it is based
on personal relations. Advertising is done in form of Neon signs and sign boards. They publish
their brochures and pamphlets so that the information is communicated to a large number of
people. They distribute calendars, diaries and key chains to their officers and customers.
No doubt MCB bank is doing promotion activities very strongly. The marketing department
knows the competitive environment very well. And the department is working very well in this
context. Promotion managers are using every media to advertise their products as others banks
are doing.
Customer Oriented Attitude
MCB bank values its customers. Customers complaints are encouraged because it gives
opportunity to know the needs of the customers and build more confidence in them.
Most of the promotional efforts are done through:
Direct marketing
Public relation
MCB bank sometimes gest suggestions and recommendations from its good customers. Branch
layout is being designed in such a way that more and more customers are attracted.
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SWOT ANALYSIS:
As it is a semi government base bank and has its own strengths and weakness. They have also
many opportunities and threats in his way of progress.
STRENGHTS:
MCB is the semi government and enjoying the benefits of it. They are working as agent
of SBP.
MCB always thinks about their solutions and manipulates it easily. Employees who work
in MCB have security from job and they work confidently. If there are problem occur
they stretch out many ideas, they are never short for idea.
They have a strong background in financially.
Main strengths of it are HR department which is diverse, trained, and skill.
They have a wide network.
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Good corporate citizenship.

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short
term entity ratings of MCB Bank Limited at AA+ (Double A Plus) and A1+ (A One
Plus), respectively. The ratings denote a very low expectation of credit risk emanating
from a very strong capacity for timely payment of financial commitments.
For this bank solution is difficult but possible. They use internal system easily.
The bonding of employee is very high.
They opened all its branches at commercial areas so the customers feel easy to reach to
the bank and take facility that bank provided.
Islamic banking is especially popular among religious people and is opted by Muslims
from all around the globe.
They consider accomplishment as commitment. MCB has a capability to achieve their
dream.
MCB Banks virtual Banking provides greater convenience to customers as they can
handle their transactions from anywhere at any time.
WEAKNESSES:
Here are weaknesses which create the problems in banks and make resistance to achieve the
goal.
Centralization of decision making.
Limited product knowledge among staff members.
Main thing which I noted that there re work loaded is too much and system and network
are jammed mostly. Which is created problem for the customer and not do well
performed.
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If there are required to fill the form then it takes place too much time which is very
irritating. And then customer has to go many seats for do the signature.
They are always depending to each other which is no benefit for a good organization. The
procedure of bank is too lengthy and takes too much time. The application time is taking
quite lengthy.
Most of the employees are overload with the work and promotion is also not timely.
There are no separations training center in which employee can take advantage. So the
employees progress also slow.
No proper job rotation.
Inexperienced hiring process which results in placement of the wrong person at the
wrong seat.
Difficulty in managing the extended network of branches.
Frequent changes in service management.
OPPORTUNITIES:
In MCB the hiring system of human resource should be specialized staff they should not
compete to each other work corporately to remove the external threats.
Leasing.
They should more emphasize on electronic banking and wide spread their network and
enhance the profitability.
Also enhance new technologies and scheme.
High investment opportunities.
Good financial position creating a good reputation for future advances and huge deposits.
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THREATS:
Low interest in capital`s market.
No new strategy to compete the external threats. It would be effect to the banking system.
No new technologies which can affect the customer and the interest of customer may be
turn.
Weak conditions of Pakistan.
Threat of new entrants leads to the tough competition.
Staff not well educated and cause the problem in banking system.
Lack of interest and capability may allow entering the new threats which ruined
everything.
When government possess the other policies then many disturbance take place in banking
system. It would have facing a strong competition by its competitor.
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COMPETITORS ANALYSIS
Competitor analysis in marketing and strategic management is an assessment of the strengths and
weaknesses of current and potential competitors. This analysis provides both an offensive and
defensive strategic context to identify opportunities and threats. Profiling coalesces all of the
relevant sources of competitor analysis into one framework in the support of efficient and
effective strategy formulation, implementation, monitoring and adjustment.
Competitor analysis is an essential component of corporate strategy. It is argued that most firms
do not conduct this type of analysis systematically enough. Instead, many enterprises operate on
what is called informal impressions, conjectures, and intuition gained through the tidbits of
information about competitors every manager continually receives. As a result, traditional
environmental scanning places many firms at risk of dangerous competitive blind spots due to a
lack of robust competitor analysis.
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Competitors
Some of the competitors or Muslim Commercial Bank is as follows.
National bank of Pakistan

Bank al falah
United bank
Allied bank of Pakistan
Citi bank
Habib bank LTD.
Faysal bank
Prime commercial bank
Abn amro bank
Suadi pak commercial bank
Indus bank
Soneri bank
Bank of Punjab
Standerd charterd
Askari bank
Competitors profile
The strategic rationale of competitor profiling is powerfully simple. Superior knowledge of rivals
offers a legitimate source of competitive advantage. The raw material of competitive advantage
consists of offering superior customer value in the firms chosen market. The definitive
characteristic of customer value is the adjective, superior. Customer value is defined relative to
rival offerings making competitor knowledge an intrinsic component of corporate strategy.
Profiling facilitates this strategic objective in three important ways. First, profiling can reveal
strategic weaknesses in rivals that the firm may exploit. Second, the proactive stance of
competitor profiling will allow the firm to anticipate the strategic response of their rivals to the
firms planned strategies, the strategies of other competing firms, and changes in the
50
environment. Third, this proactive knowledge will give the firms strategic agility. Offensive
strategy can be implemented more quickly in order to exploit opportunities and capitalize on
strengths. Similarly, defensive strategy can be employed more deftly in order to counter the
threat of rival firms from exploiting the firms own weaknesses.
Clearly, those firms practicing systematic and advanced competitor profiling have a significant
advantage. As such, a comprehensive profiling capability is rapidly becoming a core competence
required for successful competition. An appropriate analogy is to consider this advantage as akin
to having a good idea of the next move that your opponent in a chess match will make. By
staying one move ahead, checkmate is one step closer. Indeed, as in chess, a good offense is the
best defense in the game of business as well.
A common technique is to create detailed profiles on each of your major competitors. These
profiles give an in-depth description of the competitor's background, finances, products, markets,
facilities, personnel, and strategies. This involves:
Background:
Location of offices, plants, and online presences
History - key personalities, dates, events, and trends
Ownership, corporate governance, and organizational structure
Financials:
P-E ratios, dividend policy, and profitability
Various financial ratios, liquidity, and cash flow
Profit growth profile; method of growth (organic or acquisitive)
51
Products:
Products offered, depth and breadth of product line, and product portfolio balance
New products developed, new product success rate, and R&D strengths
Brands, strength of brand portfolio, brand loyalty and brand awareness
Patents and licenses
Quality control conformance
Reverse engineering
Marketing:
Segments served, market shares, customer base, growth rate, and customer loyalty
Promotional mix, promotional budgets, advertising themes, ad agency used, sales

force success rate, online promotional strategy
Distribution channels used (direct & indirect), exclusivity agreements, alliances,

and geographical coverage
Pricing, discounts, and allowances
Facilities:
Plant capacity, capacity utilization rate, age of plant, plant efficiency, capital
investment
Location, shipping logistics, and product mix by plant
Personnel:
Number of employees, key employees, and skill sets
Strength of management, and management style
Compensation, benefits, and employee morale & retention rates
52
Corporate and marketing strategies:
Objectives, mission statement, growth plans, acquisitions, and divestitures
Marketing strategies
Sources of information for competitor analysis:

Davidson (1997) described how the sources of competitor information can be neatly grouped
into three categories:
Recorded data:
This is easily available in published form either internally or externally. Good examples include
competitor annual reports and product brochures;
Observable data:
This has to be actively sought and often assembled from several sources. A good example is
competitor pricing;
53
Opportunistic data:
To get hold of this kind of data requires a lot of planning and organization. Much of it is
anecdotal, coming from discussions with suppliers, customers and, perhaps, previous
management of competitors.
The table below lists possible sources of competitor data using Davidsons categorization:
Recorded Data
Observable Data
Opportunistic Data
Annual report & accounts
Pricing / price lists
Meetings with suppliers
Press releases
Advertising campaigns
Trade shows
Newspaper articles
Promotions
Sales force meetings
Analysts reports
Tenders
Seminars / conferences
Regulatory reports
Patent applications
Recruiting ex-employees
Government reports
Discussion with shared distributors
Presentations / speeches
Social contacts with competitors
54
SITUATIONAL ANALYSIS
Situation analysis is a method managers use to analyze both the internal and external
environments of an organization in order to understand the firms own capabilities, customers
and business environment. As described by the American Marketing Association, a situation
analysis is "the systematic collection and study of past and present data to identify trends, forces,
and conditions with the potential to influence the performance of the business and the choice of
appropriate strategies."
The situation analysis consists of several methods of analysis: The 5Cs Analysis, SWOT
analysis and Porter five forces analysis. A Marketing Plan is created to guide businesses on how
to communicate the benefits of their products to the needs of potential customer. The situation
analysis is the second step in the marketing plan and is a critical step in establishing a long term
relationship with customers.
The situation analysis looks at both the macro-environmental factors that affect many firms
within the environment and the micro-environmental factors that specifically affect the firm. The
purpose of the situation analysis is to indicate to a company about the organizational and product
position, as well as the overall survival of the business, within the environment. Companies must
be able to provide a summary of opportunities and problems that may be encountered within the
environment in order to gauge an understanding of their own capabilities within the market.
55
5C Analysis
While a situation analysis is often referred to as the "3C analysis", the extension to the 5c
analysis has allowed businesses to gain more information on the internal, macro-environmental
and micro-environmental factors within the environment. The 5C analysis is considered to be the
most useful and common method in analyzing the market environment due to the extensive
information it provides to a business.
Company
The analysis of the company allows for the evaluation of the company's objectives, strategy and
capabilities. These areas indicate to an organization about the strength of the business model or
whether there are areas for improvement, as well as how well an organization will fit with the
external environment.
Goals & Objectives:
An analysis on the mission of the business, the industry of the business and the stated
goals required to achieve the mission.
Position:
An analysis on the Marketing strategy and the Marketing mix.
Performance:
An analysis on how effectively the business is achieving their stated mission and goals.
Product line:
An analysis on the products manufactured by the business and how successful it will be
in the market.
56
Competitors
The competitor analysis takes into consideration the competitors position within the industry
and the potential threat it may pose to other businesses. The main purpose of the competitor
analysis is for businesses to analyze both the current and potential nature and capabilities of
a competitor in order to be prepared against competition. The competitor analysis looks at
the following criteria's:
Identity competitors:
Businesses must be able to identify competitors within their industry. Identification of
whether competitors provide the same service/products to the same customer base will be
useful is gaining knowledge on direct competitors. Both direct and indirect competitors
must be identified, as well as potential competitors that may enter the market.
Assessment of competitors:
The competitor analysis looks at competitor goals, mission, strategies and resources. This
will allow for a thorough comparison on the goals and strategies of both competitors and
organization.
Predict future initiatives of competitors:
An early insight into the potential activity of a competitor will help a company be
prepared against competition.
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Customers
Customer analysis can be vast and complicated. Some of the important areas that a company
analyzes include:
Demographics:
Advertising most suitable for the demographic
Market size and potential growth

Customer wants and needs
Motivation to buy the product
Distribution channels (online, retail, wholesale, etc.)
Quantity and frequency of purchase
Income level of customer
Collaborators
Collaborators are useful for businesses as they allow for an increase in the creation of ideas, as
well as an increase in the likelihood of gaining more business opportunities. The following type
of collaborators is:
Agencies:
Agencies are the middlemen of the business world. When businesses need a specific
worker who specializes in the trade, they go to a recruitment agency.
Suppliers:
Suppliers provide raw materials that are required to build products. There are 7 different
types of Suppliers: Manufacturers, wholesalers, merchants, franchisors, importers and
exporters, independent crafts people and drop shippers. Each category of suppliers can
bring a different skill and experience to the company.
58
Distributors:
Distributors are important as they are the 'holding areas for inventory'. Distributors can
help manage manufacturer relationships as well as handle vendor relationships.
Partnerships:
Business partners would share assets and liabilities, allowing for a new source of capital
and skills.
Businesses must be able to identify whether the collaborator has the capabilities needed
to help run the business as well as an analysis on the level of commitment needed for a
collaborator-business relationship.
Climate
In order to fully understand the business climate/environment there are usually many different
factors that can affect a business, and if researched well it will contribute to a company that can
respond well to change. An analysis on the climate is also known as the PEST analysis. The
types of climate/environment firms have to analyses are:
Political and regulatory environment:
An Analysis of how active the government regulates the market with their policies and
how it would affect the production, distribution and sale of the goods and services.
Economic Environment:
An Analysis of trends regarding macroeconomics, such as exchange rates and inflation
rate, can prove to influence businesses.
Social/cultural environment:
Interpreting
the
trends
of
society;
of demographics, education, culture etc.
which
includes
59
the
study
Technological analysis:
An analysis of technology will help improve on old routines and suggest for new methods
in being more cost efficient. In order to stay competitive and gain an advantage over
others, businesses must have sufficient knowledge on the technological advances.
60
FINANCIAL STATEMENT ANALYSIS

HORIZONTAL ANALYSIS OF BALANCE SHEET:
The horizontal analysis of any organization shows the general trend of different items placed in
the financial statements. For the purpose of Horizontal analysis of MUSLIM COMMERCIAL
BANK LIMITEDS financial statement Base Year Method is used. It means that for the purpose
of comparison year 2009 is used as base year for 2010 and 2011.
FORMULA:
The formula which is used in computing the percentages of various items on the basis of the
figures of year 2009 is given below:
= CURRENT YEAR / BASE YEAR 100
Analysis
2009
2010
2011
2009
2010
2011
38,774,871
45,407,183
53,122,522
100%
117.10%
137%
6,009,993
1,478,569
2,281,263
100%
24.60%
37.96%
3,000,000
4,401,781
955,087
100%
146.73%
31.84%
167,134,465 213,060,882 316,651,613 100%
127.48%
189.46%
253,249,407 254,551,589 225,801,259 100%

18,014,896 20,947,540 22,007,903 100%
61.03%
116.28%
89.16%
122.17%
Assets:
Cash and
balances with
treasury banks
Balances with
other banks
Lending to
financial
institutions
Investmentsnet
Advance-net
Operating
fixed assets
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Deferred tax
assets
Other assets
23,040,095
27,705,069
32,413,576
100%
120.25%
140.68%
509,223,727 567,552,613 653,233,223 100%
111.45%
128.28%
8,201,090
10,265,537 9,466,818
100%
44,662,088 25,684,593 39,100,627 100%
367,604,711 431,371,937 491,188,710 100%
125.17%
57.51%
117.35%
115.43%
87.55%
133.62%
Liabilities:
Bills payable
Borrowings
Deposits and
Other accounts
Sub-ordinate
loans
Liabilities
against assets
subject to
finance lease
Deferred tax
liabilities
Other liabilities
Net Assets
3,196,743
4,934,018
6,294,886
100%
154.35%
196.92%
15,819,082
16,092,319
18,379,700
100%
101.73%
116.19%
439,483,714 488,348,404 564,430,741 100%
111.12%
128.43%
69,740,013
79,204,209
88,802,482
100%
113.57%
127.33%
6,911,045
38,385,760
15,779,127
7,602,150
40,162,906
21,414,955
8,362,365
42,186,467
28,366,171
100%
100%
100%
110.00%
104.63%
135.72%
121.00%
109.90%
179.77%
8,664,081
10,024,198
9,887,479
100%
115.69%
114.12%
69,740,013
79,204,209
88,802,482
113.58%
127.33%
Represented
by:
Share capital
Reserves
Inappropriate
profit
Surplus on
revaluation of
assets
62
Horizontal analysis of any organization depicts actually that how much rise and fall is there in
the values of different items of the financial statements in comparison with the previous year. So,
for identifying the tendency in the values of the current years any previous year showing
remarkable performance is considered to be the base year and the values of the items for this
year are equal to 100%. With the help of this base years values the values for the next years are
calculated that makes the difference clear.
ASSETS:
Cash and Balances with Treasury Banks:
This asset is showing an increasing trend., The State Bank of Pakistan requires a certain
percentage (CRR) of the deposits of commercial banks to be maintained (in form of Local
Currency Current account, foreign currency current and Foreign Currency deposits accounts with
SBP according to the Banking Company Ordinance, 1962) the ratio of which is increased due to
excessive local currency in hand.
Cash & Balances position of MCB reflects that during year 2010 to 2011 remained very.
However it substantially increased in year 2011. Position of MCB reflects that during year 2011
it remained highest as compared with the previous years. However, its a better position of a
bank Advances are increase dafter decline because of quality lending of MCB by introducing
attractive products
Balances with Other Banks:
These balances provide safety with regard to the liquidity position of the Bank. Through this
asset the Banks normally reduce the risk of shortages of ready cash in both certain and uncertain
circumstances. There is an up & down (mix) ratio of this bank.
The figures of MCB are showing mixture trends in year 2011 it was highest while in layer years
it remained consistent. At last, in year 2011 it became low as compared to 2011. Increase in
investment shows the liquidity position of the MCB is strong and MCB have more ability to pay
its short terms liabilities.
Lendings to Financial Institutions:
This asset also ensures the strong liquidity position of Bank. In the year 2011, it reduced to
31.48% while in 2010 it increase in 146.72%, the Bank has not provided any loan to the financial
Institutions as due to the instigation of more Muslim commercial Bank branches. This decrease
in lending to financial institutions is due to decreasing trends in deposit and increasing trends of
the investment in the securities by the MCB. The figures of MCB are showing declining trend
which is a good sign from the stability of the organization.
63
Investments:
Investments are meant for utilizing the idle funds available with the Banks. The percentage of
investments is increased for both years 2011. Normally the securities obtained are of three kinds:
Available for sale securities
Held to Maturity securities
Held for Trading
The increase in investments shown above is due to excessive securities purchased by the Bank.
Advances:
The percentage for advances is also increased for the year 2011. As the increased amounts of
loans, running finances and car Financing are the major causes to make the trend positive.
Operating Fixed Assets:
Operating fixed assets of the MCB shows in increasing trend since the year 2011 with the
percentage 5.89% and2010, the operating fixed assets of the MCB shows slight declining trends
due to more investments in securities in order to make the MCB more liquid to meet the short
terms liabilities. Operating fixed assets which include the capital work in progress, property and
equipment and intangible assets show a huge increase in the amounts due to the expansion in the
network of branches.
64
LIABILITIES:
Borrowings from Financial Institutions:
Bank has reduced call borrowings and repurchase agreement borrowings. Borrowing and other
liabilities are increasing in 2011, while in year 2010 it became less as compared to year 2011
which means reduction in taking Debts by the bank.
Deposits and Other Accounts:
The main reason is expansion of branch network. Due to this factor the percentage is increased
from 117.35% to 133.62%.MCB deposits are increasing every year and bank prefers to borrow
from the depositors which are less costly than borrowing from banks. MCB deposits are higher
in 2011 as compare to 2010 as a percentage.
Capital Fund:
In the year 2003 the capitals is increased by 50%. The reserves also increased from the year 2010
to year 2011 mainly due to the expansion which is an indication of stable business. Share capital
of the MCB shows an increasing trend in 2011. Increase in capital reserve by the MCB shows
healthy financial position and liquidity position of the MCB.
65
HORIZONTAL ANALYSIS OF INCOME STATEMENT:
Analysis
2009
2010
2011
2009
2010
2011
51,616,007
Markup/
return/ interest
earned
54,821,296
68,146,588
100%
106.20%
132.03%
15,841,463
Mark up/
return/ interest
expense
35,774,544
Net markup/
interest
income
(7,465,145)
Provision for
bad debts
17,987,767
23,620,274
100%
113.55%
149.10%
36,833,529
44,526,314
100%
102.96%
124.46%
(3,685,378)
(4,168,260)
100%
49.37%
55.84%
28,309,399
33,236,412
40,872,700
100%
117.40%
144.38%
5,642,885
6,265,306
8,112,191
100%
111.03%
143.76%
(10,797,339)
(13,160,382)
(16,987,066)
100%
121.89%
157.33%
23,154,945
26,253,075
31,483,179
100%
113.38%
135.97%
7,659,648
15,495,297
9,379,900
16,873,175
12,058,273
19,424,906
100%
100%
122.46%
108.89%
157.43%
125.36%
Net markup/
interest
income after
provision
Total nonmark up
interest
income
Non
markup/interes
t expense
Profit Before
Taxation
Taxation
Profit after
taxation
66
Net Mark-up / interest Income (after Provision)

It is showing a sturdy escalating pattern. The interest expense is increasing in relation to the
Interest earned. While analyzing net Markup income/Interest income in comparison with profit
before taxation, it has been noted that income under this head is showing inclining tend which
Provision is made in accordance with the requirement of prudential regulations issued by State
Bank of Pakistan and charged to the profit & loss Account. In the year 2010 it was lower as
compare to the year 2011. Comparatively, the interest is tremendously increased for the years
2011.
Non Mark-up Income

Non markup income has enormously increased in the year 2011. The non interest income for the
year 2011 is increased in comparison with 2010 but it is lower in year 2009.
Bad Debts:
After the year 2010 provision for Bad Debts are going increase to increase in nonperforming
loans. Expenses under this head, it has been noted that expenses are showing increasing trend.
During 2011 more expenses were incurred under this head.
Non Mark-up Interest Expense

The ratio of Non Mark-up expense is increased due to the solid reason of establishment of a
number of new branches as well as appointment of new staff has enhanced the amount of salaries
and allowances. Overall administrative expenses increased which ultimately caused to decrease
the profits.
MCB administrative expenses are also increasing constantly till 2007 and after 2007
administrative expenses in 2008 decrease in 2011. This increasing and decreasing trend of
administrative expenses vary with the increasing and decreasing trends of the MCB profitability.
Profit before Taxation:

In the year 2011, the profit is increased by sixteen percent but in year 2010 ratio decreases. Profit
of MCB is constantly increasing till 2009 and amount of tax is also increasing simultaneously,
which is beneficial for the Federal Government and after 2010, the profit of MCB more increase
in 2011 and as a result tax amount also increase.
67
There is increase in Pre-tax & after tax profit which shows good management resulted as of good
policies. Deferred taxes of the MCB are also going on decreases due to increase in fixed
operating assets of the MCB which also effects on the advances portfolio of the MCB. During
this period MCB need to increase its fixed operating assets due to IT & renovation revolution in
the banking industry. MCB have increases its deferred taxes in the year 2011 due to decline in
profitability.
68
RATIO ANALYSIS:
Following different ratios are used to analyze the management of Muslim Commercial Bank
Limited for the years 2010 & 2011. These ratios help us to find the profitability conditions and
different recent trends to judge the banks management performance of year 2010 and 2011.
1. Return on Equity (ROE) = (Net Income/Avg. Total Shareholders Equity) 100
ROE (2010)
ROE (2011)
= 16873175 100
69180011
19424906 100
78915003
= 24.39 %
24.61 %
ROE(2010)
ROE(2011)
Difference
= 24.39 %
= 24.61 %
= 0.22 %
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Comments:
There is not a big difference between these ratios of BAL for two years but for
comparison point of view, it measures the rate of return on common stockholders equity. The
ROE ratio of BAL in 2011 is higher than 2010 which mean the profitability of the BAL in 2011
is higher than the year 2010. This ratio shows that more effectively the shareholder's investment
is being employed by BAL in year 2011 as compare to 2010. It also shows that in year 2010
BAL use greater portion of debt as compare to 2011. If we see from investor point of view the
BAL in 2011 is more attractive than in 2010 because in 2011 BAL is generating profit more
efficiently.
2. Return on Assets (ROA) = (Net Income/Avg. Total Assets) 100
ROA (2010)
ROA (2011)
= 16873175
100
567,552,613
19435,906 100
653,233,223
2.98 %
2.97 %
ROA (2010)
ROA (2011)
= 2.97 %
= 2.98 %
Difference
= 0.01 %
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Comments:
ROA ratio is an indicator of how profitable a company is relative to its total assets. ROA ratio in
2011 is higher as compare to 2010 which gives an idea that management of BAL more
efficiently using its assets in 2011 to generate earnings. From the investor point of view this ratio
gives investors an idea of how more effectively the BAL is converting the money, the investor
has to invest into net income. In Year 2011 bank is better at converting its investment into profit
because its ratio is 2.98 % higher than 2010.
3. Interest Income to Total Assets = (Interest Income/Avg. Total Assets) 100
Interest Income to Total

Assets (2010)
=
36833529 100
567,552,613
6.48 %

Assets (2011)
=
44526314 100
653,233,223
6.82 %

Assets (2010)

Assets (2011)
Difference
= 6.48 %
= 6.82 %
= 0.34 %
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Comments:
This ratio is used to measure the company's financial position with respect to the interest income
by determining how much of the company's assets generating interest income from interest
bearing items. The ratio of BAL in 2011 is 6.82 % higher than 2010 which shows BAL in 2011
is more efficient to generating interest income from their assets as compare to 2010.
4. Equity Margin = (Total Assets / Shareholders Equity)
Equity Margin (2010)
= 567,552,613
69180011
= 653,233,223
78915003
8.20
8.28
Difference
= 8.20
= 8.28
= 0.08
Comments:
This ratio shows that Muslim Commercial Bank is getting much of its resources from its
shareholders in 2011 as compared to year 2010. This means that Bank is low-geared bank and
faced less difficulty while trying to be financed through debt in 2011 in contrast with year 2010.
72
5. Gross Loans to Total Assets = (Gross Loans /Total Assets) 100
Gross Loans to Total Assets

(2010)

(2011)
= 254,552,000,000
100
567,552,613,000,000
= 225801,000,000
100
653,233,223,000,000
0.045 %
0.034 %

(2010)

(2011)
= 0.045%
= 0.034 %
Difference
= 0.011 %
Comments:
We can say that in 2010 BAL issued more loans than 2011 and it is getting more business from
fundamental banking. It also shows that for borrowers 2010 was more suitable then 2011 when
getting funds for investment.
There is another point which can contradict my above saying that in gross loans, provision of
loan losses include, this ratio did not give the clear picture about the loans condition of bank. The
reason may be that this ratio in year 2010 can contain more provision for non-performing loans
losses as compare to 2011.
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6. Current ratio = current asset/ current liabilities
Current ratio (2010)
= 518,900,004
467,322,067
= 598,811,744
539,756,155
= 1.11
= 1.12
Difference
= 1.11
= 1.12
= 0.01
Comment:
There is not a big difference between these ratios of BAL for two years but for comparison point
of view, it measures the Current ratio. The current ratio of BAL in 2011 is higher than 2010
which mean a firm ability to cover its current liabilities with its current assets. BAL in 2011 is
higher than the year 2010.
74
7. Interest coverage ratio = EBIT/Interest expense
Interest coverage ratio

(2010)

(2011)
= 26,253,075
17,987,767
= 31483179
23,620,274
= 1.46
= 1.33

(2010)

(2011)
Difference
= 1.46
= 1.33
= 0.13
Comment:
Coverage ratio shows the number of the times a firm can recover or meet particular financial
obligations. The interest coverage ratio, which is also called the time interest earned ratio,
measure the coverage of the firm s interest expense. Year 2010 is better in interest coverage ratio
as compare to the other years.
75
8. Trading Commission & Fees to Total Assets = (Trading Commission & Fees /
Total Assets) 100
Trading Commission & Fees to

Total Assets (2010)
Trading Commission & Fees to

Total Assets (2011)
= 4,129,540 100
567,552,613
= 4,921,383 100
653,233,223
0.73 %
0.75 %
Trading Commission &

Fees to Total Assets (2010)
Trading Commission &

Fees to Total Assets (2011)
Difference
= 0.73 %
= 0.75 %
= 0.02 %
Comments:
BAL in 2011 had more Trading Commission& Fees ratio as compare to 2010 shows
which shows that BAL in 2011 was more involved in trading business as compare to 2010 and
getting more profit from trading business in 2011.
76
9. Earning Per Share = Net Income after Tax / Weighted Average Number of Common
Share Outstanding
Earning Per Share (2010)
= 16873,175
7602150
= 19,424,906
8,362,365
= 2.22
= 2.32
Difference
= 2.22
= 2.32
= 0.1
Comment:
This ratio got really improved as it has gone with the increase in profit. Earning per share BAL is
2.32 in 2011. As compare to 2010 its higher.
77
10. Debt to Asset Ratio = (Total Liability /Total Assets) 100
Debt to Asset Ratio

(2010)
= 488,348,404
567,552,613
=
86.04 %
100
Debt to Asset Ratio

(2011)
= 564,430,741 100
653,233,223
=
86.41 %
Debt to Asset Ratio

(2010)
Debt to Asset Ratio

(2011)
Difference
= 86.04 %
= 86.41 %
= 0.37 %
Comments:
The debt/asset ratio shows the proportion of a company's assets which are financed
through debt. BAL in 2010 has high ratio as compare to year 2011 which shows BAL in
2011more relies on debts in contrast with 2010. BAL in 2011 was highly leveraged as compare
to 2010, which shows BAL in 2011 was in more danger as compare to 2010.
78
11. Profit before Tax Ratio = (Profit before Tax /Gross Mark-up Income) 100
Profit Before Tax (2010)
= 262,530,75 100
548,212,96
= 314,831,79 100
68146,588
47.89 %
46.19 %
Difference
= 47.89 %
= 46.19 %
= 1.7 %
Comments:
BAL in 2010 has 1.7% more PBT ratio in contrast with year 2011. PBT ratio shows how much
the company earns before paying the tax against the gross markup income.
79
12. Advances/Deposits Ratio = (Advances/Deposits) 100
Advances/Deposits
Ratio (2010)
Advances/Deposits Ratio
(2011)
= 225801259 100
491,188,710
= 254,551,589 100
431,371,937
45.97 %
59.01 %
(2010)
(2011)
Difference
= 45.97 %
= 59.01 %
= 13.04 %
Comments:
This ratio indicates that what percentage the advances issued against the deposits. This ratio
shows BAL in 2011 issued more advances against deposit in contrast with year 2010.
80
TRAINING PROGRAMME
Methodology:
Plan of internship program:
A brief introduction of the branch where I did internship

I did the internship in MCB bank. During my training period I really enjoyed in the entire
department in which I worked. It is my best memories in that bank because I learned from bank
lot of many things. And it is my first experience in any field. It was not possible for me to work
in any field especially in bank as an internee but the operation manager provided me this
opportunity to work in the MCB. And they guide me so well that I did not feel any hesitation and
my confusion are finished.
During my internship period I rotated in all department of the bank and I really enjoyed it. All
the employees guided me so well and make it easy for me. I did work in remittance department
which is very interesting and made me confident. In account opening department I did work all
the procedure which is done I did it well mannered. I got lot of experience from it. Because
different type of people we can be faced and recognized them.
I also worked in customer service department. This is the first department in which initiate the
relationship with customer, how deal with customer how guide their customer determine the
quality of the service. I have done duty to arrange different office document like photo copies,
scanning, and faxes of the document was done. Dispatching letter, managing visitors, and many
other things like sorting out the post, all type of bills etc.
I feel very glad while doing internship there because I have learnt a lot during my internship.
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Organization culture
Being in Service Industry, MCB have a fast paced work environment where early responsibility
and independent decision-making enables an individual to reach his/her desired potential. Also
there is a strong performance management system that has built a meritocracy where high
performing potentials are duly rewarded as a result MCB embarks upon a single minded
commitment towards a performance driven culture.
Purpose of internship
Reason of choice:
MCB is Successive and Market oriented.
MCB investing huge sums on HR development and training.
MCB is the semi government and enjoying the benefits of it. They are working as agent
of SBP.
Staff is very cooperative.
Its quite near from my house.
Customer default rate is lower as compared to other banks.
MCB has the largest ATM network in the country.
Meeting the challenges of latest Technology by introducing Smart card remit
Express, mobile banking etc.
MCB is largest private bank in Pakistan with around 1000 branches, which cover almost
every part of Pakistan.
The bank enjoys competitive advantage over other banks in Pakistan.
The bank enjoys competitive profitability in the industry.
MCB has captured majority of potential customers in Pakistan.
MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTCL etc.
82
PERSONAL OBJECTIVE:
I did the internships because it will provide me the opportunity to test my interest in a
particular career before permanent commitments are made.
It will develop skills in the application of theory to practical work situations.
It will develop skills and techniques directly applicable to my careers.
It will aid me in adjusting from university to full-time employment.
It will provide me the opportunity to develop attitudes conducive to effective
interpersonal relationships
It will increase my sense of responsibility
It will develop employment records/references that will enhance employment
opportunities.
It will develop employment records/references that will enhance employment
opportunities.
It will provide me an in-depth knowledge of the formal functional activities of a
participating organization
Internships will provide me the opportunity to understand informal organizational
interrelationships.
83
DEPARTMETNTAL DETAIL OF MCB:

Cash Department
Clearing Department
Remittance Department
Deposit Department
Advance Department
Technology Department
CASH DEPARTMENT
The following books are maintained in the Cash Department:
Receiving Cash Book
Paying Cash Book
Token Book
Scroll Book
Cash Balance Book
When the cheque or any negotiable instrument is presented at counter for payment, it is entered in
the token book and token is issued to the customer. The token clerk and the Cashier make entries in
the paying book and payment is made to payee. At the close of day, the Token Book and Paying
Cashier Book are balanced.
MCB bank Limited is running two parallel programs viz. MIBS and Symbols.
In MIBS all above mentioned books are to be maintained. However in Symbols cash receiving cash
book, paying cash book, token book & scroll book are obsolete. The consolidated figure of receipt
and payment of cash is entered in the cash balance book and drawn closing balance of cash.
Opening Balance + Receipts - Payments = Closing Balance
84
This is very important department because cash is the most liquid asset and mostly frauds are made in this
department, therefore, extra vigilance is taken in this department and nobody is allowed to enter or
leave the area freely.
Mostly, cash area is grilled and its door is under supervision of the head of that department. All the
books maintained in this department are checked by an officer.
ATM machines are also operated and handled by the head of Cash department who intern maintains
the cash in ATM machines for 24 hour service.
CLEARING DEPARTMENT:
Every banker acts both as a paying as well as a collecting banker, It is however an important function
of crossed cheques. A large part of this work is carried out through the bankers clearing house. A
clearing house is a place where representative of all banks of the city get together and settle the
receipts and payment of cheques drawn on each other. As the collecting banker runs certain risks in
receipt of their ownership the law has provided certain protections to the banks.
The Negotiable Instrument Act, 1881, lays down that drawer or holder of a cheque or draft may cross
the instrument generally or specially. It further lies down that a crossed cheque can only be paid to a
banker, who collects it for a customer in good faith and without negligence.
Types of Cheques:
Transfer cheques:
Are those cheques, which are collected and paid by the same branch of bank.
Transfer delivery cheques:
Are those cheques, which are collected and paid by two different branches of the same
bank situated in the same city.
85
Clearing cheques:
Are those cheques, which are drawn on the branches of some other bank of the same
city or of the same area, which is covered by a particular clearing house.
Collection cheques:
Are those cheques, which are drawn on the branches of either the same bank or of
another bank, but those branches, are not in the same city or they are not the members
of clearing house.
FUNCTIONS OF CLEARING DEPARTMENT:

To accept Transfer, Transfer delivery, clearing and collection cheques from the customers of
the branch and to arrange for their collection.
To arrange the payment of cheques drawn on the branch and given for collection to any other
branch on MCB or any other members or sub member of the local clearing house.
To collect amount of cheques drawn on members, sub-member of local clearinghouse, sent
for collection by MCB Branches, not represented at the local clearinghouse.
Receiving and scrutinizing the cheques and other deposit instruments, and the pay-in-slip at
the counter.
Fixing the stamps.
Scrutiny and receipt by the authorized officer
Returning the counter file to the depositor.
Certificate and confirmation by the officer in charge of the department.
86
Separating the cheque into transfer, transfer delivery, and clearing cheques.
Cleaning Process Flow Chart:
87
ADVANCES DEPARTMENT:
Advances are the most important source of earning for the banks. MCB is also giving full attention
towards this aspect and it is also obvious from the growing portfolio of advances and from very low
delinquency rate. The credit portfolio of this institution is in a very much better shape than other
financial institutions of Pakistan and the credit goes to the management and the staff who are
concerned about the quantity and quality as well.
Loans
Cash Credits
Overdraft
LOANS:
Loans are monetary assistance by a financial institution to a business, individual etc. The loans are
granted by the bank in lump sum, so these types called fixed or demand loans. Interest is charged on
the whole amount of a fixed loan.
The borrower withdraws whole the amount of loan. This type of loan is normally granted against
security of gold documents. In case of demand loans against gold or documents, a demand
promissory note for the amount of loan is taken from the borrower loans are granted under;
LOAN AGAINST GOLD:
Under this type of loan, which is granted to the borrower the Head Cashier estimates the value of
Gold or Gold ornaments through an agent (Gold smith) and keeps a margin of 40 to 50percent. After
the opening the gold loan account a token is given to the borrower, which is a bank receipt. On
repayment of loan, the gold or ornaments held as security for it, together with the demand
promissory note duly discharged is returned to the borrower and his receipt for the gold ornament
taken in the demand loan ledger. This receipts states that he ornaments returned are complete and in
order. Part delivery of ornaments is given against part payment of a loan but care is taken that the
ornaments still in banks possession fully covers the balance of the loan outstanding. The interest gold
loan is to be applied with quarterly.
88
LOAN AGAINST PLEDGE OF STOCKS:
In case of advancing such types of loans, the following precautions are kept in the mind;
o Stock pledged must be readily saleable
o Products should be readily saleable
o Advance should be within the borrows means
REQUIREMENTS OF LOAN:
For granting loan to any party or individual, the bank checks following particulars of the client:
o Credibility
o Feasibility Report
By Credibility, bank Judges the credibility of the client by his past bank record, CBI report etc. it is
very important in making decision about giving him loan.
Feasibility report is on the running or proposed business of the client. The report enables the bank to
judge the likely return of the business.
CASH CREDIT:
Such cash account is opened in the name of the customer who borrows from the bank. Customer is
granted a loan up to a certain limit, sanctioned by the head office, from which he can draw when he
requires and interest is charged on the amount actually utilized by the customer. In order to avoid the
danger of idle fund, the bank charges a certain rate of interest, even if the customer does not
withdraw any amount. The rate charged by the bank on cash credit in 46 paisa per thousand on daily
basis. The credit is usually given against the securities of goods or merchandize as follows:
ADVANCE AGAINST PLEDGE OF STOCKS
When cash is granted against the pledge of stock or product, cash credit form is taken, from the
certain products or stock, but the actual pledge is created when the stock or finished products are
placed under the bank's lock or the document of title is duly endorsed to the bank by the borrower.
89
HYPOTHECATION OF STOCKS
The difference between pledge and hypothecation is that under a pledge the borrower's goods are
placed in the bank's possession under own lock, whereas, under a hypothecation, they remain in the
possession of the borrower or guarantor and are merely charged to the bank under documents signed
by them. Even though the documents empower the bank to take possession of the goods
hypothecated, but it is possible that the borrower may actually resist any attempt.
MORTGAGE OF PROPERTY
Title deeds of immovable property are accepted by the bank only as collateral security or
alternatively as unauthorized security
BROAD CATEGORIES:
FUND BASED
Funded Facilities- Pak Rupees
Funded Facilities-Foreign Currency
Funded Facilities- State Bank of Pakistan Scheme
Seasonal Finance
MCB Instant finance
90
NON FUND BASED

Fund Based Facilities:
Bankers Funds Involved
Non-Funded Facilities:
Bankers Fund are not Involved
In these finances only bankers name is used. Non-fund based finances convert into fund based,
if customer fails to perform the actions on its part.
REMITTANCE DEPARTMENT:
Remittance department performs following functions:
Mail Transfer (MT)
Telegraphic Transfer (TT)
Demand Drafts (DD)
91
MAIL TRANSFER (MT):

When a customer requests the bank to transfer his money from one branch of bank to
another branch of the same bank or from one city to another city to the same bank or any other
bank. Customer fills the form given by bank. If the customer has an account with that amount
as mentioned in the application form then concerned officer will undertake the following
procedure to make the mail transfer complete.
Branch Mail transfer form
Receiving Branch Register copy
Issuing branch register Copy
Beneficiary advice
Advice to customer
In case where the customer is not account holder of the bank then the customer will have to deposit
the amount which he wants to transfer under
Mail. Then the above said procedure will be done.
TELEGRAPHIC TRANSFER (TT):

This type of transfer is simple. After filling the application form the concerning officer shall fill the
telegraphic transfer form. Then it is sent to the required bank which on receiving it immediately
makes the payment to the customer and afterwards the voucher are sent to that bank by ordinary
mail.
DEMAND DRAFT (DD):

Demand draft is just like cheques and issued when the customer wants to take cash with
him personally. The idea behind is to avoid the risk and burden of currency notes in huge quantity.
Demand draft can easily be handled whatever amount it has and the money can easily be taken from
the bank when it is presented. In fact, the bank persuades the customer to transfer money by drafts
and avoid the risk of frauds involves in MT and T.T.
Draft is only issued when the bank knows customer and bank has the confidence in him.
In case of transfer of money by drafts, the customer has to fill an application form. Then the
concerned officer fills the following forms:
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Customers advice
Customers debit form
Register copy
Cover Advice
DEPOSIT DEPARTMENT:
Bank deals in money and they are merely mobilizing funds within the economy. They borrow from
one person and lend to another, the difference between rates of borrowing and lending sets the
spread or gross profit. Therefore we can rightly state that deposits are the blood of the bank which
causes the body of an institution to get to work. These deposits are liability of the bank so from point
of view of bank we can refer to them as liabilities.
The total deposits of MCB are growing since its inauguration but after privatization there is a sharp
incline in over all deposits of the bank. The increase in deposits is also a cause of increase on total
number of accounts; bank has progressed in both aspects.
TYPES OF DEPOSITS:
Deposits can be segregated on two bases, one is the duration in which there funds are expected to be
with the bank and second is the cost of getting these funds. So divide deposits in two classes
according to duration of deposits i.e.
Time deposits / liabilities
Demand deposits / liabilities
93
And on the basis of the cost to acquire these funds, a deposit can be classified as any one of following
three, High Cost, Low Cost & No Cost. Banks has different kinds of deposit schemes in order to induce
deposits. These schemes are a mixture of the above mentioned two types of deposits with an addition
of different services & requirements such as: minimum balance' requirement, mode of transaction,
basis for calculation of profit, deductions, additional benefits, eligibility for different groups. In the
similar fashion, MCB has a large variety of deposit schemes and some of them are as follows:
CURRENT ACCOUNT:
In this type of accounts the client is allowed to deposit or withdraw money as and when he likes. He
may, thus, deposits or withdraws money several times in a day if he likes. There is also no restriction
of amount to be deposited or withdrawn. However, there is requirement of minimum balance
maintenance of Rs.1000/-. No profit is paid by the bank and no service charges are deducted by the
bank on current deposits account.
Usually this type of account is opened by the businessmen. No profit is paid by the bank moreover;
these types of deposits are also exempt from compulsory deduction of Zakat.
PAK RUPEE CURRENT ACCOUNT:
MCBs Pak Rupee 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 plus you can avail finance facility up to 75% of the total deposit.
In addition, you have access to a countrywide ATM network convenient cash accessibility 24hours a
day. The facility also provides you with unlimited daily transactions with a limit on maximum
withdrawal amount through the ATM machines.
94
Foreign Currency 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.
SAVINGS ACCOUNT:
MCB Bank offers a wide array of savings products that suit short term growth & transactional needs.
Our savings accounts offer attractive profit rates as well as flexibility to transact. Savings Extra is
targeted for customers having Rs. 5 million + deposit, 365 Gold offers profit rate on daily balance
while PLS savings has a lower minimum balance requirement.
In addition, two unique products: Smart Savings and Savings Maximizer are special saving accounts
run solely via debit cards and other remote banking channels, offering a very competitive rate to both
high and lowed savers.
PLS SAVINGS ACCOUNT:
This type of account is for those persons who want to make small savings'. This type of account is
opened with a minimum deposit of Rs.1000/-. The profit is paid on these accounts on the minimum
balance during a month for the whole of that month. Zakat & other withholding taxes are deducted as
per rules of the government. However if declaration of no Zakat deduction is submitted by the
account holder then no Zakat deduction is marked on the account. The bank would be within its
rights to make investment of credit balances in the PLS saving accounts in any manner at its sole
discretion and to make use of the fund to the best of its judgment in the banking business under the
PLS system. The profit/loss will be credited/debited on the basis of its networking results at the end
of each half-year. Calculation of products on PLS saving A/c will be made for each calendar month
on the lowest credit balance of an account between the close of business on the 6th day and the last
day of the month.
95
PAK RUPEE SAVINGS ACCOUNT:
MCBs Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment. In
addition, you have access to a countrywide ATM network convenient cash accessibility 24hours a
day. The facility also provides you with unlimited daily transactions with a limit on maximum
withdrawal amount through the ATM machines.
FOREIGN CURRENCY SAVINGS ACCOUNT:

MCBs Foreign Currency Savings Account offers you attractive returns on your Foreign Currency
investment. You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanese
Yen or Euro Your foreign currency account is exempted from Zakat and withholding tax.
KHUSHALI BACHAT ACCOUNT:
This is an advance form of PLS saving A/c, in this type of account. There is restriction on the
number of withdrawals as well, i.e. up to 4 times in a calendar month. The minimum balance
requirement for this type is Rs. 2500/For making extra transaction customer has to pay service charges that are deducted from customer
account. However, Customer gets the benefits of profit calculation on daily product basis and also
free service of standing instructions of paying utility bills and HBFC installments.
All other rules of saving account are applicable.
96
DOLLAR KHUSHALI ACCOUNT:
The Dollar Khushali Account, a Dollar based account was introduced in 1993 at selected
MCB Bank branches. Today, you can open a Dollar Khushali Account at over 200 branches in
Pakistan.
Term Deposits Receipts:
This is a type of term deposit in which a receipt is issued for varying tenors ranging from 1 month to
5 years or more. These are in the form of receipts and profit on these receipts is paid biannually.
These receipts are cashable after expiry of the period for which they were issued. Different profit
rates are applied to different type of TDRs. Under this deposit scheme, a deposit is received from the
depositor under the condition that he will intimate the bank before a certain period in case of
withdrawals.
MAIN FUNCTIONS OF DEPOSIT DEPARTMENT:

This was a brief review of different types of deposit schemes. The Deposit Department handles the
account opening, profit payment and accounting of all types of deposit schemes.
Account Opening:
Account opening is an agreement in which customer offers his funds and bank accepts these
funds, therefore the nature of relation between a banker and customer is of a contractual one
and all the conditions applicable to this contract act are also applicable.
97
Profit payment & calculation:

Profit payment & calculation is done in accordance with the rules of each type of deposit
scheme-by the deposit department. The products for each deposit scheme are calculated
separately and added till the end of 6 month period. Then the sum total of these products is
multiplied with the respective profit rates which are issued by the Head Office at the end of
each half yearly closing. The profit provisions for each type of deposits are also calculated on
monthly basis by the same department in order to calculate the net profit or loss position of
the branch.
Accounting Entries:
Accounting entries are also made in the respective books of account by this department.
However, in small and medium size branches, the accountant performs the book keeping
duties for all kinds of ledgers.
98
TECHNOLOGY DEPARTMENT:
Technological advancements are also affecting the banking industry. The foreign banks have a
competitive edge over all local banks in their technologies' advancements and automated systems.
Local banks have also realized the gravity oil this situation and are striving to add computerized
systems to their branches MCB is ahead of all other local banks in this field and now it is in a
position to even compete with foreign banks. There are more than 1127 branches of MCB all over
Pakistan and out of these more than 1100 branches are fully computerized Almost all .the branches of
MCB are computerized; therefore, the need for a technology department at each branch is growing.
Now a day, a computer division is working in each city to provide service to add the branches of that
area. MCB has also introduced the now concept of online banking.
There are now more than 1100branches linked through this system and they can transact with each other
directly using computer systems at their own branches. Now customers do not have to wait long for
their transactions and can operate their account through all the online branches.
ATM NETWORK
ATM stands for Automatic Teller Machine. This machine is used to transact in one's account without
intervention of humans. These machines are basically used for taking cash, confirming balances and
requesting statements / cheque books.
MCB has the largest ATM network in the country at the moment with almost one ATM at each
online branch and also ATM terminals at International Airports. This network covers more than the
27 cities of Pakistan including the provincial capitals and large commercial cities of the country.
ATMs are operated through a card issued to the valued customers and by application of Personal
Identification Number (PIN number). A person can withdraw from any machine across Pakistan with
having an account in only one branch of MCB. This was only possible with the help of online
system. In this system all the machines are linked to central banking host at IRM division Karachi
through either satellite or telephone controller. This system identifies the card holder and his PIN
Number. Now MCB has also entered into a contract with Cirrus
99
MasterCard
This contract will enable an ATM cardholder to use his account even when he is out of country at all
the ATMs where Cirrus logo is displayed.
Green Cards
Are ordinary cards with a maximum withdrawal facility of Rs. 10,000/- in a day. The annual fee for
this card is Rs. 300/- only.
Gold Cards
Are special cars with maximum withdrawal limit of Rs. 25000/- in a day. These cards are issued to
the person shaving more than Rs. 500000/- as their average balance.
International Cards
Are issued in collaboration with Cirrus and are useable all over the world with maximum withdrawal
facility according to the standards of Cirrus.
100
101
TRAINING PROGRAM:
Job performed:
I got training in different departments of MCB bank. During my 6 WEEK periods I have learnt
lot things from these entire departments. Like customer service department, account opening,
clearing etc.
Overview of job performed:

Detailed description of department where I worked in:
All departments play a vital role for achieving their goal and progress. All employees work
together and help to each other and work all in efficient flow.
I worked all departments approximately. And learned mostly things specially those I needed. All
workers and staff encourage me and appreciate me in every task. Further I also did more
interesting activities that is very help full for me. I really enjoyed when I was there. Manager of
there is very corporative and help full.
I did special training in clearing and collection, remittance, and cash department, account
opening, and customer service department.
Remittance department:
First and second week of my internship was in the department of remittance. In this department I
deal with mostly local and foreign remittance. I made voucher and also debit and credit voucher.
The whole transaction takes place manually and then keeps record in computer. There are very
hustle and bustle around there peoples come and go and as I earlier mentioned that here are two
types if transaction foreign and local so in foreign transaction made foreign draft and online
service.
102
In other hand in local remittance is pay order, demand draft, online cheques, etc. I did all the
tasks with responsibility and not given any chance that any mistake occurs there. Firstly I did all
the work manually copied on register. After verification and clarification, which not errors occur
in it. Then I did it on computer.
Cheque clearing and collections department:

Third and fourth week I was spending in department of clearing and collection department. In the
beginning I had many problems and made confusion in every step.
Because it my first
experience to do anything. But Miss Sadia was did help me very much and taught me everything.
I collect the cheque and then after verification stamp it and signature on it. Because of record
purpose stamp, and signature required. Head office clears all the cheque received and drawn to
the other bank and then it to be deposited in MCB bank.
Here are two type of cheque outward and inward cheque. Outward cheques are out station
cheque and inward cheques are local cheque. I also did the task and pasted cheque of intercity
which is called outward cheque and I dispatch most of cheque. Those cheques which are mostly
returned back from head office, that cheque must be write first in register for keep record then
inform the customer to remove the error. Mostly cheque those come back that are insufficient
fund. So customer should be concentrate on it to save the time not only banker but also own.
Cash department:
In this department I passed fifth week. in this department I collect the cash and count it and
verification it. In cash department it is only responsible of for the cash deposit or withdraws
from the bank. When customer comes with cheque, He is required to fill the cheque without any
error.
103
And when the cash want to deposit then fill also deposit slip and do signature on it. In the end of
the day the cash tellers fill out a balance sheet concerning the position of cash left with the bank.
That is recorded. All work done carefully and well mannered. They are all conscious about in
this department. And all worked carefully.
Account opening department (PBA)

In this department I worked on the sixth week. I learned how to open the account. In the
beginning I had many problems and made confusion in every step.
Because it my first
experience to do anything. But Miss Uroosa helped me very much and taught me everything so
learned and performed the following activities:
How to open a new accounts
How to Issue check books
How to Receive Check Book Issuance Requisition
Products and services:

Terms Deposit:
MCB Term Deposits offer smart short to mid-term Investment alternative with flexibility,
convenience and security with various tenor options available customers can choose one
suits their needs. This is mutual with different Profit payout options and the added facility
of being able to avail credit facility against their deposits.
MCB Salary Club:
A payroll solution designed to make life easy; it simplifies all the monthly payroll related
banking needs of employers and Open door to a world of special offers for employees
Salary Club provides the convenience of having a wide Range of financial services
available to employees at their Place of work.
104
MCB Investment Services:
Make the most of your wealth with investment opportunities that matches your unique
financial aspirations. MCB Investment Services offer distribution of mutual funds
managed by the Leading fund managers of Pakistan We can suggest the Products most
suited for your needs, or work with you to create a modified solution completely focused
on your Expectations of the capital markets.
MCB Visa Credit Card:
MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing
on providing, superior service, Travel privileges & shopping pleasure. It also offers
Comprehensive insurance & installment plans, reward points And SMS alerts that give a
different feel to the world of Credit Cards these unique features include revolve, which
makes Variable mark-up rate available to customers allowing them To repay at affordable
rates.
MCB ATMs:
MCB has one of the nation's largest ATM networks with over 625 ATMs and still
growing. MCB ATMs give you 24-hours Convenience of cash withdrawal, ministatement, utility bill Payment, funds transfer services and much more.
MCB Mobile ATM:
With MCB Mobile ATM not only do we provide you with World class banking service
but we also provide convenience. Our innovative mobile ATMs ensure that you are given
service close to you.
MCB Lockers:
MCB Lockers are the best protection for your valuables. Lockers of different capacities
are available nationwide.
MCB SMS Banking:
Banking at your finger tips: SMS anytime to get information Concerning balance, mini
statements and credit card related Information once your card.
MCB Car4U:
MCB Car4U not only gets you a car of your own choice but It is also reasonable with
viable mark-up, flexible conditions, Easy processing and above all, no hidden costs MCB
105
Instant Finance with MCB instant Finance gets a loan instantly at any MCB Branch
against liquid collateral at competitive pricing.
MCB Smart Card:
MCB Smart Card is the key that enables access to convenient Banking services Smart
Card allows you to manage your account, withdraw Cash, transfer funds, pay utility and
mobile bills, and recharge prepaid connections, register for mobile and internet banking
Services and much more.
MCB Rupee Travelers Cheque:
It is a safe and secure way to make payments nationwide. MCB Rupee Travelers Cheque,
being the market leader, is the most widely accepted way to pay cash for travel-related
Intention.
MCB Full Day Banking:
Enjoy the convenience of extended banking hours from 9am to 5pm, including Saturdays
at MCB FULL Day Banking Branches across the country.
MCB Call Center:
Theres no easier way to bank than the new enhanced 24/7 MCB Call Center, which
blends innovation and Convenience to provide Banking Services that go beyond
Expectations. With MCB Call Centre you can maintain your VISA credit & ATM/Debit
cards; check your account balances, Confirm last 5 transactions, pay utility & mobile
phone bills, Top-up your mobile, pay MCB Visa Credit Card bill from your MCB
account, transfer money within your own accounts in MCB and register complaints.
106
Self-assessment:
Interviewing skills
Written communication skills
Oral communication skills
Ethical values based on practice skills
Capacity to work with colleagues, other students, and peers skills
Ability to work independently
Ability to work with diverse people and groups
Work Quality
Self-development
Job knowledge
Team work
Problem solving
107
What have I done

Duties & Accomplishments:
During my internship in MCB I worked in Remittances, Advances, Clearing, account opening and
Customer Service Office department and I successfully completed all the task/duties that were
assigned to me.
The duties that I performed and the thing I learned each day are given as follows:
Day 1:
Learned basic operations of remittance department
Learned how to make entries and vouchers for Incoming TT (Telegraphic
Transfer)
Made vouchers and entries for Incoming TT
Observed other operations e.g. PO (Pay Order), DD (Demand Draft)
Day 2:
Learned bank charges for PO, DD, TT & MT (Mail Transfer)
Learned how to make entries and vouchers for Outgoing TT(Telegraphic
Transfer)
Made few Outgoing TT
Learned & Made Inter-Branch Credit Advices against the checks received
from outer city branches
Day 3:
Learned about the payment against PO & DD received from other
branches (usually the first activity in the remittance dept.)
Learned how to issue a PO
Made entries against the TT and MT in the Day Book
Made Incoming and Outgoing TT
108
Made Inter-Branch Credit Advices against the checks

Day 4:
Made Debit vouchers against the TT, PO & DD charges
Made Credit vouchers (contra) against the TT, PO & DD charges
Made entries in the Day Book
Day 5:
Learned Incoming & Outgoing TT Entries in the Daily Voucher Record
Sheet
Learned how to make DD and PO
Made Credit vouchers (contra) against the TT, PO & DD charges
Day 6:
Learned about different Stamps on the PO
Learned and made entries and vouchers against Incoming MT
Day 7:
Learned and recorded the entries against Incoming MT
Issued Credit Advices against DD
109
Day 8:
Learned PO and DD issuance in detail
Made the entries against Intercity Received Checks
Day 9:
Got more information about Remittance Software System
Learned how to make cancellation entries in the Remittance Software
System in case of any discrepancy
Day 10:
Learned how to cancel a DD

Made vouchers for incoming MT
Issued Credit Advices against DD
Day 11:
Learned how to make entries against the incoming TT for which the
beneficiarys account in some other bank
Day 12:
Learned basic operations of cheques clearing department.
Learned how to make entries and vouchers
110
Day 13:
Learned about Cheque Collection
Day 14:
Learned about Cheque Collection
Day 15:
Day 16:
Made Vouchers
Made Daily Voucher Sheet
Day 17:
Issued check books
Received Check Book Issuance Requisition
Day 18:
Issued check books
Day 19:
was moved to Account opening
Learned about KYC (known your customer)
111
Day 20:
was moved to Account opening
Learned about KYC (known your customer)
Day 21:
Learned ML (Money Laundering) according to prudential regulation
issued by state bank of Pakistan
Day 22:
Learned documentation requirement for each type of account opening
Day 23:
Learned documentation requirement for each type of account opening
112
Day 24:
Worked as CSO(Customer Service Officer) because CSO was on
leave and performed the following activities:
Attended phone calls
Attended customer inquiries
Received ATM forms
Received and entered daily DAK
Day 25:
Issued ATM cards
Issued balance Certificates and Bank Statements
Made charges vouchers for TT/DD/PO
Day 26:
completion of account opening form with all formality as
per bank`s own policy and procedure
Day 27:
Did all manual AOF and customers dealing
113
Day 28:
Learned about different account opening related terms and
definitions
Learned about Payment against Foreign Currency Checks
Made Voucher Sheet
Day 29:
completion of account opening form with all formality as
per bank`s own policy and procedure
did all manual AOF and customers dealing
Day30:
Worked as CSO (Customer Service Officer)
Day 31:
Issued ATM cards
Made Vouchers
Day 32:
Opened new accounts
Issued check books
Made Vouchers
114
Day 33:
Sorted Foreign Currency Signature Verification Cards
Opened new accounts
Issued check books
Made CCs(Check Collection)
Made Electricity Bills Vouchers
Day 34:
Opened new accounts
Issued check books
Made CCs(Check Collection)
Made SUI GAS Bills Vouchers
Day 35:
Received ATM forms
Day 37:
Made CCs
Made Vouchers
115
Day 38:
Attended phone calls
Attended customer inquiries
Received ATM forms
Day 39:
Do all the revision and orientations and knows about the HR
departments in both days, collect the all information for
made the report.
.
116
PROBLEMS & SUGGESTIONS

Problems:
The dealing of employees towards their customer is not uniformly or equally.

Which I observed in during my internship the more preference give the special person
like relative, friends, other known persons give more attention and do their work firstly
and give them special protocol. Which is done unfair towards other, who already there
and wait for their work.
I observed there are lack of education and experience but still they are working there with
the help of other which create the problem for customer.
The staff members usually waste their valuable time while performing their duties.
The system of lunch time is also no good whenever who want to go for lunch when they
want even they not take attention towards their customer.
So I can say easily here are many problems and issues which need improvement.
In human resource department there is not proper appraisal system. And give more
importance that brings the reference. That is not good for a common person.
There are no proper training system which is not good for a bank in this case many
problems can be occurring and the competitors cab be take this opportunity easily.
Most of human resource department staff has not proper or high qualification. In this
reason many problems can be created.
This bank also take an intelligence test for new employees, which is people are not
capable to their position.
During my training session I feel that most of the staff and employees make a lot of
unnecessary phone calls while they dealing their customer. This is very irregular
responsibility.
117
There are the system of security is also not good. Peoples come and go but the guard does
not take attention carefully. But when the main person come in the bank like big boss or
big manager then they alert on their seats and pretend themselves that they do their work
very well. This is also unfair for not only bank but also employees and customer.
The entire worker who work in bank and do their duties all should be conscientious and
diligent in their duties. And do not take such action which is not good for bank and also
for customer.
So bank should take such steps to improve its all the system, if all the procedure is done
in accurately and in good manner then no one can be criticize on it so they should be
more concern on it.
If they do in this manner then the bank also go towards prosperity and progress. And
criticism finish.
Employees should also give attention on this criteria because little little false make the
big ocean which is not good if they want to progress.
118
Suggestions
After doing a deep study and witnessing everything that goes on in a branch, I would then like to
make the recommendations that; First of all, the management needs to overlook the major
problems that the organization is currently facing and then develop strategies to eradicate them.
Some of the suggestions that I would like to give at the end are:
Promotion and Mass Media Publicity
MCB Bank can improve its Marketing strategies to acquire more promotion and
mass media publicity by the use of effective channels of promotions like TV,
Newspaper Advertisements. It can also improve its magazine publication that it
releases each month.
Need introduce friendly Products
In order to compete in the ever-expanding market both nationally and
internationally,
Introducing new and efficient products is one of its major requirements.
Centralized Structure
Centralized Structure that enables employee involvement needs to be formed.
Better Reward System
Better reward system is one of the most important requirements in order to reduce
the problem of Employee retention and improve Employee motivation.
Continuous Training of Employees
Creation of enhanced performance appraisal system
Implementation of enhanced Marketing system
Continuous lecture on better communication of staff with customers
ATM Machines Maintained
ATM machine must be maintained properly to make it more convenient for the
customers and to decrease the load of work to the employees of the bank
especially in the salary days.
119
Staff Member
I have observe during working that there need of more staff due to pressure of
work MCB should hire more employees for better performance even any
employee when take leaves Manager has no choice to his work to other employee
so this situation built high pressure.
Symbol System
To make the SYMBOL system more efficient and make sure its connectivity all
the time in order to provides more convenience to customers.
Job Rotation for Employees
MCB should to make the strategy where make the job rotation of employees.
120
Conclusion
I feel that MCB has a better production in which they have achieve a better and succeeded
results. They provide better facility to their customer ant try to maintain it. They always try to
achieve their targets. The system of human resource is also very good in nature and way of their
system is unique. There are brides system in which employee can survive easily and work their
work easily and they improve their capability easily, also learn more things. Nature of employees
should good towards their customer. I learned many things in MCB and achieve a lot of
experience which I have not earlier. And also enjoyed worked. I have achieved many benefits
from this bank which is useful for me in the future. The role of HR department is also
corporative.
121
Reference & Sources

Website Sources:
(2011)
Human
resource
management
system
Wikipedia.
from http://en.wikipedia.org/wiki/Human_resource_management_system
Retrieved
(2011).
History
of
MCB. MCB
from http://http://www.mcb.com.pk/mcb/about_mcb.asp
Retrieved
Bank
Limited.
(2011). Vision and Mission Statement of MCB. MCB

from http://www.mcb.com.pk/mcb/mission_vision.asp
(2011).
Product
and
Services
of
MCB. MCB
from http://www.mcb.com.pk/psc/personal/default.asp
(2011). Financial Data and Reports of
from http://www.mcb.com.pk/ir/fin_data_rep.asp
MCB. MCB
Bank
Bank
Bank
Limited.
Limited.
Limited.
Extra Source:
Colleagues
Operational manager
Branch Manager
Different Hand books
Newspapers
122
Retrieved
Retrieved
Retrieved
Annexure
Annual report 2011, Interim report 2012

Orientation report
MCB brochures
123
Glossary
MCB
ATM
FED
WHT
TDR
CDR
PBA
BBA
PLS
TD
AOF
AMO
KYC
SSC
GBO
ICO
CSO
DD
PO
FTA
CPD
NI
TR
TC
IBC
OBC
MO
HO
Muslim Commercial Bank

Automatic Teller Machine
Federal Excise Duty
with Holding Tax
Term Deposit Receipts
Call Deposit Receipts
Personal Banking Advisor
Basic Banking Account
Profit and Loss A/C
Term Deposit
Account opening Foam
Account maintenance officer
Know your customers
Specimen Signature card
General banking officer
Internal control officer
Customer service officer
Demand Draft
Pay Order
Fund Transfer Application
Central Processing Division
National Institute of Facilitation Technology
Term Deposit Receipt
Rupee Travel Cheque
Inward Bills for Collection
Outward Bills for Collections
Main Office
Head Office
124

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Executive Summary

The Role of organization in Economy:

4. Helping SBP in achieving monetary policies:

5. Implementation of Modern Technology:

6. Provision of agency services:

Due to use of credit instruments like Cheques, drafts and saving

11. Modern Facilities:

We're here when you need us.

Khanewal Ghalla Mandi, Khanewal.

Branch manager No:

PROVINCES WISE BRANCHES:

Divisions and field

Organizational structure of MCB Branch Khanewal:

a) Foreign trade Manager:

76,415,174,000 (Year Ending Jan 2012).

Fiscal Year Ends:

Closely Held Shares:

Muslim Commercial Bank Ltd

Public Limited Company

Mr. M.U.A. Usmani

CEO / President and Member

Mr. Tariq Rafi

Mr. Shahzad Saleem

Mr. Sarmad Amin Member

Dr. Muhammad Yaqub

Mian Raza Mansha

Dato' Mohammed Hussein

Mr. Aftab Ahmad Khan

Mr. Abdul Farid Bin Alias

Mian Umer Mansha

Mr. Muhammad Ali Zeb

Dr. Muhammad Yaqub

Dato' Mohammed Hussein

Mr. Aftab Ahmad Khan

Mr. Muhammad Ali Zeb

Mr. Malik Abdul Waheed

Human Resources Committee

Dr. Muhammad Yaqub

Mian Raza Mansha

Mr. Shahzad Saleemn

Mr. M.U.A. Usmani

Risk Management & Portfolio

Mr. Tariq Rafi

Mr. Sarmad Amin

Mian Raza Mansha

Mian Umer Mansha

Committee on Physical Planning,

Mr. Tariq Rafi

Mian Raza Mansha

Mr. Abdul Farid Bin

Mr. M.U.A. Usmani

Business Strategy & Development

Mr. Shahzad Saleem

Mian Raza Mansha

Dr. Muhammad Yaqub

Dato' Mohammad Hussein

Mian Umer Mansha

Mr. M.U.A. Usmani

Loan and credit clerks:

POLICY FORMATION PROCESS:

Human resource functions:

Arrangement and concert

Organization growth and maintenance