Abid Bank Report Final

Muslim Commercial Bank Limited
Internship Report On Muslim Commercial Bank
Name
Muhammad Abid Zahid
Internship Report
MCB Bank Ltd

Shahalam Branch (0177)
Course
MBA (FINANCE)
Submitted To
Sir Fazal(Operation
Manager)
Submission Date
12-11-2015
TABLE OF CONTANT
Executive Summery
Dedication
Acknowledgement
Vision and Mission
Background
Awards
Values
Business Operation
Organizational Structure
Board of Directors
Products & Services
Highlights 2014
SWOT Analysis
i. Internal Analysis
ii. External Analysis
Marketing Strategy
Competitive strategy
Business Process Analysis
a. Horizontal analysis of Balance Sheet
b. Horizontal analysis of Income Statement
c. Horizontal analysis of cash flow Statement
Plan of internship program

Account opening department
i. Current account
ii. Saving Account
iii. Term deposit account
Clearing department
i. Outward clearing
ii. Inward clearing
Remittances department
i. Demand Draft (DD)
04
05
06
06
07
08
10
11
12
14
22
24
25
26
28
30
31
32
39
40
41
41
42
44
45
47
48

ii.
iii.
iv.
v.
Pay order ( PO)

Online transfer
Call Deposit Receipt (CDR)
Deposit slip
45
48
48
49
EXECUTIVE SUMMARY
I have done my internship in MCB Bank limited (Muslim Commercial Bank Limited). The main
purpose of internship was to learn, by working in practical environment and to apply the
knowledge acquired during the studies. There was only one department named as general
banking. I had worked in Remittance, where I filled Pay Order, Online transfer, Demand Draft,
Call Deposit Receipt forms. I did all type of clearing named as Normal Clearing, Same Day
Clearing, and Intercity Clearing. I have opened new account for new customer. I successfully
completed the entire tasks that were assigned to me.
During the six week time period of my internship I learned about different things that how the
Branch Manager deals with the customers and Staff. I learned that what kinds of documents are
required for different kinds of financing activities or opening new account etc. Those things
which I have mentioned above have been discussed in detail and all the procedures have been

describe thoroughly. In this report there detail back ground, vision and mission statement and
business operation (organization Structure, SWOT Analysis, Marketing Strategy, Competitive
Strategy, Business Process Analysis) and some relative material of MCB Bank Limited.
I have done my best I hope to ALLAH that this report will provide a complete and clear image of
Muslim Commercial Bank Limited.
Dedication
I
dedicate
this
internship report to
my
Parents,
Teachers,
Friends
and MCB Bank staff
because
of
their
encouragement
Guidance
I have
been
able
to
complete
this
report.
ACKNOWLEDGEMENT
First of all I thanks to ALLAH that HE gave me courage and ability to do
this difficult task.
Secondly, I see that the credit goes to my loving parents and my
respected teachers who make me able to be at this position.
Finally I thankful to all the staff members of MCB limited Bank (Shahalam Market Branch )
Specially the Operation manager Sir Fazal and General Banking officer Zahid Islalm , Sir Ishfaq
and Sir Abdul jabbar and Mam Ayesha.
VISION & MISION STATEMENT:

Vision Statement:

To be the leading financial services providing,
partnering with our customers for a more

prosperous and secure future.
Mission Statement:
We are team of committed professionals, providing innovative
and efficient financial solutions to create and nature long term
relationships with our customers. In doing so, we ensure that our
share holders can invest with confidence.
BACKGROUND OF MCB bank :

The MCB was established one month before the independence in June 1947. First head
quarter in Calcutta and after independence it was shifted from Calcutta to Dhaka and
afterward its head quarter were shifted from Dhaka to Karachi in 1948. Among the other
22 scheduled banks with 3525 branches network nationalize on 01st January1974 through
the nationalization of Bank act 1974, under the nationalization policy of the Government.
MCB was also nationalized and at that time of nationalization Premier Bank was merged
in MCB Bank Limited in 1974.
After the failure of the communism it was realizes through the world the idea of
nationalization was not correct and has no any positive effects on economy. This idea
developed especially in 1980 decade under which in sub continent of Asia its importance
was also realized. In Pakistan privatization and deregulation policy was stared in1998

under this policy the first unit privatized was MCB with a view to stable the economy and
reduce the burden of national exchequer of other sick units.
In 1990 this bank was announced for privatization on the ground that 51% shares would
be for general public out of which 26% shares would be offered to particular party, which
will take the administration of bank and lead by Mian Muhammad Mansha who was the
first chairman of MCB LTD
AWARDS
YEAR 2014
The Asset Triple A
Best Bank - Pakistan
The Asset Triple A
Best Domestic Bank - Pakistan
CFA 11th Excellence Awards
Best Bank of the year 2013 Large Bank
CFA 11th Excellence Awards
Most Stable Bank of the year 2013
Asiamoney Awards
Best of the Best Domestic Bank
The Asian Banker (USA)
Strongest Bank in Pakistan 2014
ICAP and ICMAP
1st - BCR Award 2013 - Banking Sector
SAFA
1st Runner up - BCR 2013 in Banking

Sector Category
Year 2013
The Asset Triple A
The Asset Triple A
Best Islamic Deal
ICAP and ICMAP
1st - BCR Award 2012 - Banking Sector
LK Domain Registry
Sri LankaBest Website Award
Lanka Clear Pvt. Limited
T+1 Cheque Clearing Award
YEAR 2012

The Asset Triple A
Euromoney
Best Bank in Pakistan
NFEHCSR
Business Excellence Award Best

Media Coverage
ICAP and ICMAP
2nd Best Corporate Report

Award 2011- Banking Sector
World Finance
Best Commercial Bank - Pakistan
Pakistan Centre for Philanthropy
PCP Corporate Philanthropy Award
Year 2011
CFA Association Pakistan
Most stable of the year
CFA Association Pakistan
Best Bank of the year
Euro money
ICAP/ICMAP
BCR Award2010-Banking sector
SAFA
Join 2nd Runner-up for BCR 2010
Year 2010
The Asian Banker
Strongest Bank in Pakistan
The Asian Banker
Leadership Achievement Award
MMT
Best Bank Led MMT Service
ICAP / ICMAP
BCR Award 2009-Banking Sector
SAFA
Certificate of Merit Award for BCR
Year 2009
Asia money
Best Domestic Bank in Pakistan
The Asset
Year 2008
Euro money
Best Bank in Asia
Euro money
Asia money
Year 2006

Asia money
Euro money
Year 2004
Asia money
Euro money
Year 2004
Euro money
Asia money
Year 2003 Euro money
Year 2001 Euro money
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.
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
Excellence
We take personal responsibility for our role as leaders in 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
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.
BUSINESS OPERATION
Organization Structure:
Chairman
/Board
Audit
Committee
Presiden
t
Corporate
Affairs
Division
Audit &
RAR
Group
Treasur
y&
Forex
Wholesal
e
Banking
Internationa
l
Invest
HRM
Group
Information
Tec
Operations
Group
Strategic Planning
& Investment
Group
Retail Banking
North
Complianc
e&
Control
Special Assets
Management
Group
CCM & Special

Projects Group
Risk Management
Group
Retail Banking
South
Financial
Control
Group
Islamic
Banking
CSR &
Security
Group
Legal Affairs
Group
Capital Market
Division
Board of Directors
Main Muhammad Mansha
Chairman
S.M. Muneer
Vice Chairman
Tariq Rafi
Shahzad Saleem
Sarmad Amin
Dati Muhammed Hussain
Main Raza Mansha
Main Ahmad Khan

Main Umer Mansha
Ahmad Alman Aslam
Imran Maqbool
President & Chief Executive Officer
Audit Committee
Tariq Rafi
Aftab Ahmad Khan
Dato Seri Ismail Shahudin
(Non executive Director)


(Executive Director)

Ahmad Alman Aslam

(Chairman)
Financial Officer
Salman Zafar Siddiqi

Company Secretary
Fida Ali Mirza
Auditors
A. F. Forguson & Co.
(Chartered Accountants)
Legal Advisors
M/s. Khalid Anwer &
Co.
Advocate & Legal Consaltant
Principal/Registered Office
MCB Building, 15-Main
Gulberg Jail
Road Lahore
Contact us:
UAN: +92 42 111 000 622

Email:investor.relations@mcb.com.p
k
Visit us: www.mcb.com.pk
Head Office
M/s. THK Associates (Pvt.) Ltd.
2nd Floor, State Life Building No.3
Dr. Ziauddin Ahmed Road Karachi, Pakistan
Branch Office
M/s. THK Associates (Pvt.) Ltd. 2nd Floor,
DYL Motorcycles Ltd. Office Building Plot No.
346, Block No. G-III, Khokhar Chowk Main Boulevard, Johar Town, Lahore, Pakistan.
Products & Services:
MCB Products & Services

MCB Current Deposit Product Menu
MCB Current Account:
An account with transaction facility and convenience. MCB CURRENT DEPOSIT menu is
designed to provide transaction convenience and flexibility to our valued customers for all their
financial dealings. The current account product menu includes:
MCB Business Account: MCB Business Account offers a wide range of unlimited
free transactions and services to cater to the business needs such as intercity withdrawals /
deposits, Funds Transfer, Cheque book, Bankers Cheque, Duplicate Bank Statements, EStatements, Rupee Traveller Cheques (RTCs)
. MCB
Current Life Account: Offers free life insurance coverage besides
catering to the usual transactional needs. MCB Fun Club Banking for Kids:
Basic Account: Values the basic banking needs of small depositors; offers transaction
facility with no maintenance charges
Foreign Currency Current Account: Provides freedom to manage cross

border as well as domestic transactional needs.
MCB Savings Deposit Product Menu:

MCB Bank offers a wide array of local and foreign currency savings products that suit short
term investment and transactional needs. Our Savings Deposit menu offers attractive profit rates
on various products based on the tenor and profit payment option
PLS Savings Account: Provides steady growth to your savings and access to a
complete range of bank services.
Smart Savings Account: Gives the option to smartly place your savings to earn
more. MCB 365 Savings Gold Account: Offers exclusive rates for the high savers
without any transaction restrictions.
MCB Savings Xtra Account: Tiered product offering attractive rates to suit
saving needs of the customers.
MCB Salary Club Gold Account: A unique product offering for the
organization / company to manage its payroll by getting its employee accounts opened
with MCB on which the employees can avail free benefits & discounts on various
services
MCB Fun Club - Banking for Kids: We believe saving money is never too late, nor ever
too early. MCB Fun Club helps your kids develop the habit of saving and helps them
build a better future.
Foreign Currency Savings Account: Save and earn on your foreign

currency accounts with access to all banking services
MCB Term Deposit Product Menu

MCB Term Deposit products offer secure and attractive investment options (both in
Local Currency & Foreign Currency) to customers depending on their need:
Flexi Deposit Account: Gives the option to the customers to conveniently

choose their profit payment frequency during the placement tenure.
Mahana Profit Account: Offers attractive investment option with monthly

profit payout.
MCB Lending Products
MCB Car4U: MCB Car4U brings for you an affordable and flexible opportunity to
have your very own car. To suit your needs, our car financing solution is designed to give
you unmatched convenience in helping you acquire a car of your choice in the shortest
possible time at very competitive rates
MCB Home Loan: A home of your own is a blessing and a long-held aspiration
of many. Now with MCB Home Loan, fulfilling this dream has never been so easy. MCB
Home Loan opens doors to numerous sensible financing options to help you purchase,
build or renovate your new existing home.
MCB Cash4Cash: A finance facility for individuals for fulfilling their personal
needs, which is collateralized against securities such as local and foreign currency term
deposits, national saving schemes instruments, mutual funds, bank guarantees, et

MCB Instant Finance: With MCB Instant Finance, get a loan instantly at any
MCB branch against liquid collateral at competitive pricing.
MCB Credit Card: MCB Credit Cards carry world class features that provide
transactional & payment convenience to our customers across the globe. The cards are
available in three different ranges i.e. Classic, Gold and Platinum to cater to the diverse
needs of our distinguished customers.
. MCB
Prepaid Card: MCB Prepaid Cards are available in three variants to suit
the customers choice and preferences i.e. Ease, Liberty and Freedom with option to
choose from four unique Plastic designs. This Visa supported card does not require prior
Bank account and can be used at POS, Internet and ATM globally.
MCB Student Personal Loan: MCB Student Personal Loan is currently

being offered to the MBA and Executive MBA students of Lahore University of
Management Sciences (LUMS). Under this facility, students can take a maximum of
PKR 1,000,000 loan from MCB during their MBA program. These loans are offered at a
very affordable rate and with easy repayment term spread over 5 years, post their MBAs.
MCB Personal Loan: MCB Bank offers Personal Loan facility to customers for
meeting their personal needs. Whether to purchase consumer durable goods, have a

leisure trip with family or cater to an emergency medical need, MCB Personal Loan is a
Fast, Affordable and Easy Option to meet our customers financial needs. The customers
are free to choose a repayment term between 1 to 5 years. MCB Personal Loan is offered
at competitive markup rates to both self-employed and salaried customers who meet set
criteria. It is currently being offered in 9 major cities in Pakistan.
MCB Wealth Management: MCB Wealth Management helps you make the
most of your wealth. It offers distribution of insurance products and mutual funds
managed by the leading insurance companies & fund managers of Pakistan. There is a
complete range of investment & insurance products to cater to the needs of the
customers.
MCB Investment Services: Investment Services operate with the aim to help
you make the most of your wealth with investment opportunities that match your unique
financial aspirations. MCB Investment Services offers 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 personalized solution completely
focused on your expectations of the capital market
MCB Lockers: MCB offers the facility and comfort to operate lockers in privacy.
Lockers are available in 4 different sizes i.e., Small, Medium, Large and Extra Large
with varied insurance coverage as per the size of the locker. Customers can choose from
the available options depending upon their need and requirement.
MCB Transaction Banking: Transaction Banking provides a wide range of

value-added collection & payment services to large corporations through its vast network
of real time branches. TBD provides structured and customized Collection products
enabling customers to realize their sales proceeds swiftly from across the country,
supported by real-time MIS reports
Online Fund Transfer (OFT): This web based electronic fund transfer
facility has been designed to enable large network of franchises /dealers/distributors to
conduct real time branchless transactions through secured MCB website.

MCB Digital Banking Products and Service
MCB Mobile: MCB Mobile is a globally recognized award winning mobile

payments service that has an enviable track record. With billions in digital payments,
processed across millions of transactions, the service is the first to offer ease in making
payments directly from your mobile phone, irrespective of the telecom provider. It is an
easy and secure way to transfer money, carry out balance inquiry, check mini-statement,
buy top-ups, pay bills and much more.
MCB Visa Debit Card: With global acceptance at over 20 million merchants
and 1.5 million ATMS worldwide, MCBs Visa Debit Cards are a way towards the
future. We are proud to have Pakistan's first chip-based Visa Debit Card which allows
customers to enjoy unmatched convenience, enhanced security and round-the-clock
accessibility to their funds.
Branchless Banking-MCB Lite: In order to further its customers, the Bank

has launched a technology based mobile wallet named MCB Lite. MCB wallet along with
the accompanying VISA card allows customers to handle their daily transactions and
payments in an efficient and real time manner while also digitalizing the economy. With
this product, MCB has initiated the drive for contributing to the economy by facilitating
cash-less transactions in Pakistan
MCB E-Commerce: With the introduction of its world class online payment
gateway, in partnership with MasterCard International, MCB is poised to play a major
enabling role in the imminent ecommerce boom in Pakistan
MCB Internet Banking: MCB Internet Banking was launched to bring the
state-of-the-art online banking experience for its customers. The bank implemented
Oracles Flex Cube Direct Banking which comes with enhanced securities, selfregistration, friendly interface and a host of functionalities/services.
MCB Call Center: In the modern world, customers prefer more convenient ways
of conducting their banking transactions and MCB caters to this need with its state of the
art Call Center services which are available around the clock
MCB ATMs: MCB has one of the nation's largest ATM network with 930+ ATMs
covering more than 200 cities across the country and still growing.
SMS Alerts: MCB is proud to offer a free SMS Alerts service which allows
customers to keep track of all of their banking transactions throughout the day. By
applying to this service, customers receive real time SMS updates whenever they conduct
a transaction on their MCB bank accounts
MCB E-Statements: MCB E-Statement initiative adds an additional level of

convenience to online banking. No need to wait for postal deliveries, e-Statements are
sent directly to your inbox which make it easier to retrieve information when needed
Utility Bill Payment Services: MCB Banks Utility Bill Payment Services
offers a wide range of utilities and customers can conveniently pay their bills online
(through MCB Internet Banking, MCB Mobile and MCB Lite) or at the nearest ATM or
MCB Branch.
MCB Merchant Acquiring: MCB has a strong acquiring network of over

4,000 merchants at key locations across Pakistan. Our Point of Sale (POS) network is
fully compliant with international safety & quality standards and accepts Visa,
MasterCard and Union Pay payments from all over the world
MCB Discounts & Loyalty: At MCB Bank, our mission is to create as much
value as possible for our esteemed customers. We take this mission very seriously and in
the same spirit, our Discounts & Loyalties team has put together more discount offers at
top merchants for MCB card customers (Debit, Credit, Prepaid and Lite) than any other
bank in the country
MCB AGRI Products: MCB is committed to meet the diversified banking needs
of the farming community as integral part of overall business strategy of the bank aligned
with national objective of achieving self-sufficiency in food security for the people of
Pakistan. Bank fully supports SBP/Govt initiatives launched for strengthening agriculture
sector and recognizes its contribution & significance in national economy
SHADABI PLAN (Agri production Finance)
KHUSHALI PLAN (Agri Development Finance)
Shadabi Plan: covers the agriculture loan products for the production requirements
of farm & non-farm activities of the farming community.
Khushali Plan: ADF caters the credit needs of farmers, generally long term,
pertaining to development projects related to both farm & non-farm sectors.
MCB Privilege Banking: As the first local bank to introduce high end retail
banking, MCB Privilege through its dedicated, world-class Privilege Centers offers a
higher level of personalized services, more rewarding in-branch experience and a wide
array of deposit and investment products that are tailored to meet the financial
expectations of our affluent clientele
MCB Ladies Branch: MCBs very first Ladies Branch (E-11 Markaz,
Islamabad) is being managed predominantly by female staff focusing on banking needs
of all segments especially female clients. The aura of trust and confidence that female
staff carry will encourage customers to discuss and find quick & comfortable banking
solutions for their financial needs.
MCB Islamic Banking Products: MCB-Islamic Banking Group (IBG)

provides Shari'ah compliant solutions to its valued customers to fulfill their deposit as
well as financing needs.

Service Quality: To ensure a culture of Quality Service for our customers, we at
MCB Bank Ltd., have a dedicated Service Quality Division. The objective of this
Division is to strengthen and continuously improve the Banks service culture.
Highlights 2014:
PBT
36.7
Billion
+14%
Best Bank in
Pakistan Award
by Asset AAA
Investments
511 Billion
+14%
Best
Corporate
Report
Award 2013
Assets 935
Billion +15%
ROA
2.78%
Capital
Adequacy
Ratio 20.41%
Advances
(Gross) PKR
322 Billion
Strongest
Bank
in Pakistan
Award by
Asian
Banker
+20%
Deposits PKR
688 Billion +9%
Non-Markup
Income PKR
13.4 Billion
+20%
ROE
23.83%
Highest Market
Capitalization
PKR 340
Billion (in
banking
industry)
SWOT Analysis
There are two part of SWOT Analysi
Internal Analysi
External Analysis
Internal Analysis
Strengths:
The strengths of MCB Bank are the following:
1. MCB is the first Pakistani privatized bank because of its quality management,
marketing, innovation in product and services is performing well in financial
market.
2. It has created a good reputation in the banking sector.
3. It has 1200+ branches on different places in Pakistan.
4. It has one of the nations largest ATM network with more than 500 ATMs
covering 110 cities across the country and it is still growing.
5. It provides MCB mobile ATM for convenient world class banking services.
Weaknesses:
1. Official time of bank closing is 5:30pm but the staff is normally on their seats till
7:00pm to 9:00pm.
2. Due to the lack of advertisement majority of the people are not well aware about the
products of MCB.
3. There is lack of specialized skill because of rotation policy of human resource
management.
4. Most of the staff and employees are dissatisfied due to low salaries as compared to
same position in other banks.
5. It is also seen that the staff complain about over loaded of work. It is the reason that
turnover ratio of MCB is increasing.
6. MCB has numbers of employees of the period when the MCB was nationalized bank
they cannot perform their duty as like employees in other banks. They always show
rude attitude that is not much motivating for new customer.
External Analysis
Opportunities:
1. MCB bank can capture big portion of the market by expanding their branches and
ATM network to other countries.
2. MCB have to launch some new product or services like tele bank and internet
banking etc.
3. Media is powerful tool of communication.MCB have to use it for advertisement of
new product and severs provided by MCB bank. By adverting MCB can create more
new customers.
4. MCB bank has to start some kind of Social services or for culture benefit. By doing
this it can motivate its customer that you are contributing in this services by parching
and using MCB services.
5. Now the concept of Islamic banking is increasing in Pakistan. There is opportunities
that by creating Islamic branches all over the country and fallow Islamic structure in
those branches. It should also creat Islamic product for customers
Threats:
1. In Pakistan the banking sector is growing rapidly and it has attracts the business men
to enter in banking sector. Some foreign banks have started their business in Pakistan.
2. Now MCB bank has to compete with great effort by giving superior services.
3. From few years Pakistan is facing a lot of problems like energy crisis, rising prices of
product. Govt. of Pakistan is borrowing money from State Bank of Pakistan and from
commercial banks also and due to lack of money to give to depositor many banks can
cause to bankrupt.
4. Foreign banks are increasing in Pakistan
5. Foreign banks are providing attractive and new services to MCB customer.
Marketing Strategy:

MCB bank is using different kind of marketing Strategies to expand their business. MCB
bank is using marketing mix strategy for promotion. It is a set of marketing tools which is
used to find out the marketing objectives in the target market.
These tools are classified into four factors named as
1. Product:
MCB bank has started new services and product to satisfy the customers. Different
kind of accounts are offered by the MCB bank to attract the customers.
Mahana Khushali Plan :
It is a five year plan in which amount is deposited for five years and return is
given on monthly basis. By this play MCB bank is targeting those people who want to
save their money and want some return on their investment.
Capital Growth Certificate plan:

This plan is offered to target those person that deposit their amount for long
period of time. According to this plan your deposited amount will be double after five
year.
Night - Banking Services:
MCB has started these services on busy commercial centre for the ease of their
customer. Now traders and other client can deposit their amount in these services
centres till 8:00Pm..
2. Price:
It is a critical marketing tool. It represent that what customer have to pay against
services received. It is the only element that creates revenue for MCB bank. Some time
pricing strategy is also used to set the price
Place :

Place is used in since of distribution channel ,and distribution mean that from where
the seller makes his products available to the buyers.MCb bank is using to important
channels of distribution.
Bank Branches
Bank Credit Card
Bank branches:
Bank branches are the most important channel of distribution for the bank. Through
these branches MCB is easily serving potential customers.
Bank Credit Cards:

MCB has made the contract with Master Card International and made the ac cess of
the card possible at 11 million outlets all over the world. Due to use of this card there is
rapidly increase in the usage of banking services.
3. Promotion:
MCB bank use this tool for different activities. BY using different ways MCB is
targeting the customers to use their product or services. MCB Ltd has used this tool to
spread information about their services and product.
MCB bank is using four basic promotional tools for promotion and those promotion
tools are the following.
Advertising
Personal selling
Publicity
Sales promotion
Competitive Strategy:
After making the mix structure of basic elements of marketing the banks focus on
growth strategies.
Growth strategy is further divided in to four strategies:
Market Penetration Strategy
Market Development Strategy
Product Development Strategy
Diversification Strategy
1. Market Penetration Strategy:

With the help of this strategy the bank management first consider either it could gain
more market share or not with its current products in their current markets
2. Market Development Strategy:

In this it considers whether it can find or develop new markets for its current
products.
3. Product Development Strategy:

Then, it considers whether it can develop new products of impending interest to its
current markets
Diversification Strategy:
Finally it will review opportunities to develop new products for new markets.
These strategies have been examined further as follows:
Market penetration:
By using this strategy MCB bank is increasing its sale with existing product in the
existing market by means of increased and more effective positioning and targeting,
deliver and promotional activities.
Some basic strategies are
Selling present services to new customers

Selling more services to present customers
Market development:
MCB is using this strategy to increase sale in new markets with existing products
and services.
Product development
This strategy is used to introduce the new product or services in the existing
market.
Diversification
It is also growth strategy and it is most difficult growth strategy for
bank. In this strategy the bank focuses on to grow new services and new
markets.
Financial Analysis of MCB (Horizontal Analysis)

Statement of Financial Position / Profit & Loss
MCB BALANCE SHEET

AS ON 31, DEC 2014

Profit and loss Account of MCB
As on Dec 31, 2014

Statement Of Cash Flow

ADMINISTRATION EXPENSE OF MCB
VERTICAL ANALYSIS:
Consolidated Statement of Financial Position

MCB BANK NON PERFORMING LOANS

VERTICAL ANALYSIS OF MCB
Balance Sheet Of MCB
As on 31, Dec 2014
VERTICAL INCOME STATEMENT
Consolidated Statement of
Comprehensive Income
For the year ended December 31, 2014
Statement of Cash Flow

For the year ended December 31, 2014
Details plan of my internship program:

Introduction of branch:
I have done my six weeks internship from MCB bank limited (0177) Shahalam
Branch Lahore under the branch manager Sir Zahid. This is a online branch of
MCB bank and this branch is doing good business. The question comes in how?
Reasons behind this are

firstly, when the branch manager joins this branch he brings some account
with him.
Secondly, this branch is on exact location on the main road and different are
around it.
Thirdly, the Staff of this branch is much cooperated they work like a time
thats why the working of management is very smooth and efficient.
. Finally, this branch have very good contact and the relation with the shops
business entities and the other sound parties as well to increase the deposit
of the branch and maintain the
efficiency of the work and enhance the organization
The branch manager Sir Zahid
introduced me with staff members and guided me about
different functions being operated within the organization.
Starting and the ending dates of my internship

Starting and the ending dates of my internship program in the MCB bank limited
(0177)
Shahalam Branch Lahore

Starting Date: September22 , 2015
Ending Date: Nov 05, 2015
Names of the departments where I have worked during my

internship duration
1. Account opening department
2. Clearing department
3. Remittances department
1. Account Opening Department

I have worked one week in account opening department. It is the most important
department of any branch of any bank because all the working of the bank is based on the
account. It is the first step between the customer and banks. I opened new accounts some for new
customers and some for old customers because they want to operate more than one account.
There are different types of accounts in MCB bank limited which are offered to its customers.
Different accounts has different benefits different charges different minimum balance
requirement and different purposes.
There are three types of account.
1. Current account
2. Saving account
3. Term deposit account
Current Account:
MCB Bank offers a variety of current accounts to provide to the everyday transactional needs of
various customers. These accounts ensure ease and freedom to bank from any of the 1100+
branches across the country.
The different accounts include:
i.
ii.
Normal Current Account that has 10,000 rupees minimum balance requirement.
Business Account that has 50,000 rupees minimum balance requirement. It is offering
free online transactions, Demand Drafts, Pay Orders and lots more to meet the day to day
business requirements

iii.
Current Life Account which offers the security of life insurance free of cost and for all
others, the conventional Current Account.
Note: If the balance goes down from the minimum balance required then the bank will be
charged Rs.50 as per mint.
Saving 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
i.
PLS Saving Account has no minimum balance requirement and it offer profit rate
on semi annually balance.
ii.
iii.
Xtra Saving Account is targeted for customers having Rs. 5 million + deposit and it
offer profit rate on quarterly balance.
365 Gold Account offers profit rate on daily balance.
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 low end savers.
Term Deposit Account:

MCB Term Deposit offer attractive short to mid-term investment options with flexibility,
convenience and security. With various tenor options available, customers can choose one that
suits their needs. This is combined with different profit payout options and the added facility of
being able to avil credit facility against their deposits.
To open term deposit account the minimum balance requirement is one lack rupees. Term
deposit account can be opened for one month, three month, six month, one year, three year, and
five year. The account will be closed after the term then new account will be open on the demand
of customer.

MCB bank limited is offering some other types of account these are mention below.
Basic Banking Account:

MCB bank is offering these services to those people who have low income without any
charges. No Zakat is deducted from their balance and there is no profit no loss on this account
For individual account
Account opening form

Attested photocopy of computerize National Identity Card or Passport of individual.
In case of salaried person, attested copy of his or her service card or any other acceptable
evidence of service, including, but not limited to a certificate from employer.

If the person has his or her own business then the letter pad copy is needed.
In case of illiterate person, two receipt passport size photographs of the new account
holder besides taking his right and thumb impression on the specimen signature card.
For Joint Stock Companies Account

Certified copies of
Resolution of board of directors for opening of account specifying the person or persons
authorized to operate the company account.

Memorandum and Article of Association
Certificate of incorporation
Certificate of commencement of business
Attested photo of Computerized National Identity Card of all Directors.
List of Directors in from-29 issued for the Register Joint Stock Companies.
For Partnership Account
Attested photocopy of computerize National Identity Card

Attested copy of Partnership Deed or letter of Partnership
Attested copy of Registration Certificate with Registrar of the firm. In case of Partnership
is unregistered, this fact should be clearly mentioned on the Customer Relationship form.
Authority Letter in original, in favor of the person or other person who is authorized by
the partners.
Account Opening Form is filled and necessary documents are attached with this Form
and are sent to main Branch. After verification the main branch send mail of verification then the
new is activated.
2. Cleaning department
I have worked two weeks (2nd ad 3th ) in clearing department. I learned the functions and
work which are performed by this department. This is the important department of any bank.
Branch Manager Sir Zahid taught me about clearing. He told me that it is a process in which
the banker settle their mutual account by claiming the arising account of various instruments
presented by one bank drawn on the other bank either the bank is in the same city or out of city.
Suppose an NBP account-holder gives a crosscheck for MCB. Similarly, MCB account-holders
give check to people having accounts in other banks; these all banks need to clear their overall
balances with each other. The clearing department does this.

Clearing checks
MCB
Account-holder
X
Cross check
NBP
Account-holder
Y
NBP Bank
MCB Deposited
In clearing we deal with the cheques of other banks or other branches of MCB. The
clearing is done with the help of NIFT (National Institutional Facilitation Technologies). It is the
institute which the state bank has hired for the collection of clearing cheques of each branch and
it plays middle man role between each branch with State Bank of Pakistan.
He told me that clearing are of two types
Outward clearing
Inward clearing
Outward clearing
Out ward clearing is that the settle of claims of our branch of MCB bank but drawn on
other branches of MCB or on other banks .These cheques are deposited by our customer in our
MCB branch and then our MCB bank branch present it in out ward clearing
GPO told me that there are three types of out ward clearing.
i.
ii.
iii.
Normal clearing
Someday clearing
Intercity clearing
Before starting clearing GPO gave me the first task to record the detail of cheques in the cheque
Collection ( CC ) ledger. The detail includes pay account number, cheque number, cheque
amount, bank name of which the cheque is. And I wrote the all amount of all cheques on Add list
and add it. Two copies were made one original and second carbon copy. I attached add list and
all the bank copy of deposit slip which were filled from customer in the CC ledger. GPO

appreciated me that your calculation is good. The same task is done either it is Normal, Same
day, or intercity clearing.
These are the following detail are required in Clearing Register.
1. Serial No.
2. Account no. of the depositor
3. Depositor name
4. Drawer
5. Drawee
6. Cheque No.
7. Amount of the cheque
Normal clearing:
Normal clearing is made at afternoon which would be present on next day.Two
stamps are stamped one on front of clearing date stamp and one on back manager stamp that
payee account will be credited with signature. It deals with in city. Time limit of this type of
clearing is two days..
Same day clearing:

Same day is made initial working hours and are presented on the same day. Two
stamps are stamped on frount of the cheque and one on back of the cheque. On front side,
one stamp of Same day clearing and second stamp of clearing date on which cheque has to
present. On back side, manger stamp that payee account will be credited, and manager
signature also
Intercity clearing:
Where there is State Bank of Pakistan then the clearing is done by NIFT and if not
then another institute is worked so CC ( cheque collection ) is made. Three stamps are
stamped two on front side and one on back side.
Charges for intercity clearing
MCB 0.15% of total amount of cheque including 75 rupees posting charges
(Minimum charges are 100 rupees)
For other banks 0.25% of total amount of cheque.
Excise duty 0.16%
In paid charges are 500+75posting charges

In case of normal clearing, detail information is recorded the detail in ledger. A clearing
schedule slip is arranged with the branch code stamp, total amount and number of instruments
and add list is also attached with clearing schedule slip then a plastic seal number is required
which is written on the seal.
After matching the detail of clearing Register with clearing schedule slip all the instruments,
add list, outline page are putted in an envelope and packed in NIFT bag and that NIFT bag is
closed with that plastic seal. This is to ensure additional safety. When the seal is opened then the
bank will not receive that bag., If the seal number on the bag and on the bundle cover does
nomatch in this case it is a suggestion that some sort of changes has been made the strict action
are taken by NIFT and the Bank consequently.
Inward clearing:
In inward clearing other banks or other branches of MCB also settle their account by claiming
the instruments which are drawn by the other bank customers or other branches of MCB bank.
This is inward clearing other banks sent instrument to our branch which are drawn on us.
There are few things which are included in inward clearing.
a. The cheques should be cross cheques or there should be cross stamp on face side of the
cheque.
b. Clearing stamp on the front side of the instruments.
c. The clearing stamp dated should be of the next working day
d. Manger stamp that Payees account is credited on the bake of the instruments and
signature on the stamp
e. The signature is to be verified before entering into computer and then the cheque is
posted and drafted.
3. Remittance Department:
I have worked two weeks (4th and 5th ) In Remittance Department. We deal with
different functions and different instruments in this department.

Those instruments and function are:
1.
2.
3.
4.
5.
Demand Draft (DD)

Pay order ( PO)
Online transfer or internal transfer
Call Deposit Receipt (CDR)
Deposit slip
1. Demand Draft (DD) :

Demand draft is like an instrument and is issued on the demand of the customer.DD
has abominate the extra burden of the currency. It is payable on the demand when the customer
want it. It is issued by the one branch of the bank and is payable by another branch of the same
bank.
Information required for DD

Beneficiary Details
Beneficiary Name
Bank or Branch Name and address
Purpose of remittance
2. Pay order (PO):

PO is the kind of instruments and it is the property of customer. It is used for the
payment of admission fee, tender or for payments of dealing.
In case of PO the issue bank and paying will be the same but branches may be different in that
city. It flows within the city.
3. Online Transfer:
The amount can be transfer from one account to another account either the account is of
that branch or any branch of MCB in any city.

If the amount is being transferred through cheque then online charges are
Commission
Rs.125
Excise duty
Rs.020
Total charges
Rs.145
If the amount is being transferred through Cash then the charges are different. If the amount is
less than Rs. 25000 then
Commission
Rs.150
Excise duty
Rs. 024
Total Charges
Rs. 174
If amount exceed from Rs.25000 then the taxes is also applied due to this total charges also
changed.
Information required for online

Beneficiary Details:
Beneficiary Name
Bank or Branch Name and address
Purpose of remittance
Applicant Detail:
Name or Title off account

Account number
CNIC or Passport No.(for Non Account Holder)
Signature of Applicant
4. Call Deposit Receipt (CDR):

It is highly liquefied instrument which can be cashed at any time on the demand of
customer. it is used for tender purpose.CDR show that the specific mentioned account is present

in between customer and other party with which deal is being done. In this case issue and paying
branch is same.
5. Deposit Slip:
There are two copies of deposit slip one is for bank use and other for customer use. We fill
deposit slip in case of cash deposit in account holder account and when any cheques come in the
branch
In my last week (6th) of internship period I have collected the information

related to my internship. At end of last week Branch manager Sir Zahid
taken my test what I were learned from the organization and then fill my
evaluation form and gave the internship letter to me.
This was the worked that I had learned from MCB bank limited. I have used
great effort to learn about banking sector hoped that this effort will provide
me opportunities. It is great edge for me in the job market. It gave a lot of
confidence that to deal the customers. It will create positive impact on my
future.

Abid Bank Report Final

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Muslim Commercial Bank Limited

Internship Report On Muslim Commercial Bank

Muhammad Abid Zahid

MCB Bank Ltd

Muslim Commercial Bank Limited

Plan of internship program

Muslim Commercial Bank Limited

Pay order ( PO)

Muslim Commercial Bank Limited

Muslim Commercial Bank Limited

VISION & MISION STATEMENT:

Muslim Commercial Bank Limited

partnering with our customers for a more

BACKGROUND OF MCB bank :

Muslim Commercial Bank Limited

Best Bank - Pakistan

The Asset Triple A

Best Domestic Bank - Pakistan

CFA 11th Excellence Awards

Best Bank of the year 2013 Large Bank

CFA 11th Excellence Awards

Most Stable Bank of the year 2013

Best of the Best Domestic Bank

The Asian Banker (USA)

Strongest Bank in Pakistan 2014

ICAP and ICMAP

1st - BCR Award 2013 - Banking Sector

1st Runner up - BCR 2013 in Banking

Best Domestic Bank - Pakistan

The Asset Triple A

Best Islamic Deal

ICAP and ICMAP

1st - BCR Award 2012 - Banking Sector

Sri LankaBest Website Award

Lanka Clear Pvt. Limited

T+1 Cheque Clearing Award

Muslim Commercial Bank Limited

Best Domestic Bank - Pakistan

Best Bank in Pakistan

Business Excellence Award Best

ICAP and ICMAP

2nd Best Corporate Report

Best Commercial Bank - Pakistan

Pakistan Centre for Philanthropy

PCP Corporate Philanthropy Award

Most stable of the year

CFA Association Pakistan

Best Bank of the year

Best Bank in Pakistan

BCR Award2010-Banking sector

Join 2nd Runner-up for BCR 2010

Strongest Bank in Pakistan

The Asian Banker

Leadership Achievement Award

Best Bank Led MMT Service

BCR Award 2009-Banking Sector

Certificate of Merit Award for BCR

Best Domestic Bank in Pakistan

Best Domestic Bank in Pakistan

Best Bank in Asia

Best Bank in Pakistan

Best Domestic Bank in Pakistan