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Dedication

I would like to dedicate this accomplishment offline to my beloved and caring parents and to my
teachers with the support of whom I am standing at this step of my life stairs.

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 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 respected teachers who make me
able to be at this position. Finally I thankful to all staff member of MCB (Timber market branch
Lahore 0187) specially the branch Manager Sir Asif, Operational Manager Sir Mubeen and
General banking Officer Sir Ali Jan.

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 Table of content

 Executive summery 1
 Mission and vision
 objectives
 Background
 Awards and achievements
 Nature of the organization
 Business operations
 Organization structure
o Board of directors
o Product and services
 MCB online services
 Departments
 Dispatch department
 Account department
 Clearing department
o Inward clearing
o Outward clearing
 Financial department
 Loan products
 MCB cards
 MCB banc assurance
 MCB remittance
o Remittance department

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  Demand draft
 Pay order
 Online transfer
 Deposit slips

 Account opening department

 Application form
 Specimen card
 Account opening register
 Cheque book
 Different kinds of department
 Current account
 Saving account
 Saving 365 Gold Account
 Term deposit account
 Asaan account
 Business account
 SWOT analysis
 Internal
 External
 Ratio analysis
 Conclusion
 Recommendations

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 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 the 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 local 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 of my internship, I learned about different things that how to branch
manager deals with the customer and staff. I learned that what kind of documents is required for
different kinds of financial activities or opening new account etc. Those things that I have
mentioned above have been discussed in detail and all the procedures have been describe
thoroughly.

In this report there detailed background, mission and vision statement and business operations
(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.

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 Vision statement:

To be the leading financial services providing, partnering with the 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.

Objectives:

Following are important objectives of studying the organization:

o To learn about Capital Adequacy, Asset and Liability Management, Interest Rate
Risk , Liquidity, Asset Quality & Profitability of bank.
o Analyzing savings and investment trends in banking sector.
o Assessment of the company’s financial condition through the financial statements
o To examine the Innovations in customer service in banking

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 Background:

Incorporation:

MCB Bank Ltd formerly known as Muslim Commercial Bank Limited was incorporated
by the Adamjee Group on July 9, 1947, under the IndianCompanies Act, VII of 1913 as a
limited company. The bank was established with a viewto provide banking facilities to
the business community of the sub-continent. The bank was nationalized in 1974 during
the government of Zulfikar Ali Bhutto.MCB earnedRevenue of PKR 31.787 billion and
Net Income of PKR 15.266 billion in 2007.

Privatization:

This was the first bank to privatized in 1991 and the bank was purchased by a consortium
of distinguished Pakistani corporate groups led by NishatGroup.Nishat Group is one of
the leading and most diversified business groups inPakistan. The group has strong
presence in the most important business sectors of thecountry such as banking, textile,
cement and insurance. Mian Muhammad Mansha is thehead and chairperson of the
group .He is regarded as one of the richest persons in Pakistan. He owns textile mills, the
Muslim Commercial Bank and is a major player in cement. .He was awarded the
Tamgha-e-Imtiaz civil award by President Musharraf on March 23, 2004...

Network:

MCB is the fourth largest bank of Pakistan. Its wide network includes fully facilitated
branches all over Pakistan. It covers 125 cities, comprising of 978 branches out of which
262 have the ATM machines.

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 Awards and achievements:

 2010 MMT Award: World’s Best Mobile Money Transfer Bank

 2009 Asia money: Best Domestic Bank in Pakistan
 2009 The Asset: Best Domestic Bank in Pakistan

 2008 Euro money: Best Bank in Asia

 2008 Euro money: Best Bank in Pakistan
 2008 Asia money: Best Domestic Bank in Pakistan
 2006 Asia money: Best Domestic Bank in Pakistan
 2005 Euro money: Best Bank in Pakistan

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 Nature of the organization:

MCB Bank Limited is a banking company incorporated in Pakistan and is engaged in

commercial banking and related services. The Bank’s ordinary shares are listed on all the stock
exchanges in Pakistan whereas it’s Global Depository Receipts (GDRs) representing two
ordinary shares are traded on the International Order Book (IOB) system of the London Stock
Exchange.

MCB Bank Limited is a Pakistan-based company. The Bank operates in four business segments:

 Corporate finance
 Trading and sales
 Retail and consumer banking
 Commercial banking

Corporate finance:

Corporate finance includes underwriting, securitization, investment banking,

syndications; initial public offerings (IPO) related activities (excluding investments) and
secondary private placements.

Trading and sale:

Trading & sales segment includes fixed income, equity, foreign exchange commodities,
lending’s to financial institutions and brokerage debt.

Retail and consumer banking:

Retail & consumer banking includes retail lending and deposits, banking services, private
lending and deposits, banking services and retail offered to its retail customers and small
and medium enterprises.

Commercial banking:

Commercial banking segment includes project finance, export finance, trade finance,
leasing, lending, guarantees and bills of exchange relating to its corporate customers.

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 Board of directors

Mian Mohammad Mansha Chairman

S. M. Muneer Vice Chairman

Mr.Tariq Rafi Director

MR. Shahzad Saleem Director

Mr. Sarmad Amin Director

Dr. Muhammad Yaqub Director

Dato’ Mohammed Hussein Director

Mian Raza Mansha Director

Aftab Ahmad Khan Director

Mian Umer Mansha Director

Mr. M. Ali Zeb Director

Dato’ Seri Ismail Shahudin Director

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

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 Product and services:

DEPOSIT SCHEME OF ISLAMIC BANKING

DEPOSIT PRODUCTS

 Al Makhraj saving
account
 IANAT account
 Al Makhraj TDR DEPOSIT PRODUCTS
 Saving account
 Current account
 Saving extra
 Smart dollar
account
 Foreign currency
account  Auto loan
 Credit card
 Visa debit card
 MCB visa
 MCB visa prepaid

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 MCB online services:

 MCB ATMs

MCB has one of the nation's largest ATM networks with over 450 ATMs and still growing.
MCB ATMs give you 24-hours convenience of cash withdrawal, mini-statement, utility bill
payment, funds transfer services and much more. 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 call Centre

Call Center The state of the art MCB call center is the right choice to keep you in step with
your ever hectic schedule by providing you services relating to your account and Smart card
at any point in time.

 MCB Mobile

At the forefront of technological excellence, MCB proudly introduces MCB MOBILE

BANKING. MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer
money, pay bills and do much more. No need to visit a branch or an ATM anymore, login to
www.mcbmobile.com using your mobile phone and start transacting

 MCB online banking

Online Banking MCB has a fast growing network of over 1,100 online branches in the
country providing customers real time online transaction facilities

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 Departments:

Departments of MCB Bank limited are as under:

 Dispatch department
 Accounts department
 Clearing department
Dispatch department
Dispatch department is the very important sector in the bank because all inward
and outward mails in which ordinary and sensitive as well, routed or transfer to this
department as the mail in the branches consists of documents covering title to goods,
cheques, inter branch Dr. Cr. Advices, letter of credit in international banking apart from
other routine letters. So it is important to handle dispatch carefully and make sure there is
not wrong devilry.
Account department
This is important department in which the account are maintained and also the
voucher and the books and the all the expenses or expenditure of the bank are maintained
so it is the most important department of the bank maintain all the account of the bank is
the duty of this department and this department is working well.
Finance department
Financing department is the important department because bank finance in
various ways like advancing the loan and make the profit as a excess amount in the way
of interest the MCB finance in such a way giving the loan to the customer and also buy
the share of the private organization also finance in the agriculture sector and the private
sector as well.

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Clearing department
There are two type of clearing in the bank and during my internship me doing both type
of the clearing.

 Inward clearing

 Outward clearing

Outward Clearing

When cheques, TC’s and other negotiable instruments drawn upon other banks like NBP,ABN
AMRO of the same city (as Lahore) are presented in Muslim Commercial bank todeposit them in
the respective payee’s accounts, these instruments are lodged in outwardclearing (o/w clg) of
MCB bank.

Procedure of Outward Clearing:

 The name of the branch appears on its face where it is drawn

 It should not stale or post - dated or without date.
 Amount in words and figures does not differ.
 Signature of the drawer appears on the face of the instrument.
 Instrument is not mutilated.
 There should be no material alteration, if so, it should be properly authenticated.
 If order instrument suitably indorsed and the last endorsee’s account being credited.
 Endorsement is in accordance with the crossing if any.
 The amount of the instrument is same as mentioned on the paying-in-slip andcounterfoil.
 The title of the account on the paying-in-slip is that of payee or endorsee (with
theexception of bearer cheque).
 If an instrument received other than MCB of Pakistan then special crossing stamp
isaffixed across the face of the instrument. Clearing stamp is affixed on the face of
theinstruments, paying-in-slip and counterfoil (The stamp is affixed in such a mannerthat
half appears on counterfoil and paying-in-slip). The instrument is suitablydischarged,

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  Where a bearer cheque does not require any discharge and also aninstrument in favor a
bank not need be discharged.

Return Outward Clearing:

 Over writing
 No stamp of clearing or if it is not clear
 No stamp of crossing or if it is not clear

Inward Clearing

Inward clearing means cheques drawn on us and presented by other banks. In inward clearing
Branch acts as paying banker. After realization of inward clearing, banks deposits are decreased
as bank makes payment to other banks from the balances held by the branch. This realization of
inward clearing is also referred to as responding to the clearing. Cheques and other negotiable
instruments (PO, DD, PS, CDR Etc.) drawn on Muslim bank, sent by other banks, constitute the
inward clearing of MCB.

Procedure of Inward Clearing:

 Instruments with schedules are received from NIFT.

 Amount of each instrument entered is in inward clearing register.
 Instruments are detached and handed over to the deposits and other respective department
for checking and payment.
 In case of any instrument is returned, return memo is prepared stating the reason of the
return.
 Entry is made in cheques Return register.
 Cheques return charges are recovered from the party as per charges schedule.

Checking / Return of Instruments:

 Over writing
 No stamp of clearing or if it is not clear
 No stamp of crossing or if it is not clear

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 MCB BANCASSURANCE

Combining the best of banking and insurance solutions, MCB Banc assurance has created a One-
stop shop for all your financial and insurance needs. Whether you want to save for your child’s
education or marriage, for the security of dignity after retirement or gaining maximum return on
savings, MCB Banc assurance has a plan just for you.

 Flexi Life
 Life Partner
 EduCare
 Dream Wedding
 Capital Sure
 Retire Easy
 Income Max
 Future Assure
 Rotection Plan

MCB’S REMITTANCE

Fast, secure and easy-to-use, MCB's Remittance Services is an efficient way to transfer
money overseas. You can remit funds from any country to Pakistan through Swift
System. MCB Home Remittance provides a seamless inflow of foreign remittances
credited in the Beneficiary’s account within minutes. Cash payments can also be made at
our designated branches on behalf of Xpress money, Samba (Speed cash now) and
MoneyGram, along with cash payments from other correspondents all over the world.

Remittance department:

 Demand Draft:

It is used for payment made outside the city. It is writing on the name of head office.Accounting
entry by drawing branch. When the customer purchases a draft, the drawing branch sends the

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advice (a copy of DD) to the drawee branch and the original copy of DD isgiven to the
purchaser. On the arrival of advice the drawee branch debits HO account andcredits the DD
payable account. When the customer comes with the original DD to thedrawee branch, his
account is credited by debiting the DD payable account.

Charges Commission 50/- but if amount increase or decrease then it will also increase ordecrease
and FED 8/- also increase or decrease.

 Pay Order:

Payment Orders are issued for the money transfer with in the city. Pay order is made for local
transfer of money. Pay order is the most convenient, simple and secure way of transfer of money.

MCB LOAN PRODUCTS

The loan products of MCB Bank Limited are given below:

 Car4U
 Business sarmaya
 Payaraghar
 Intant finance

Car4U

MCB Car4U not only gets a car of your own choice but is also affordable with competitivemark-
up, flexible conditions, easy processing and above all, no hidden costs

Business Sarmaya

Good cash flow is the key to any successful business. MCB Business Sarmaya offersrunning
finance facility against your house/ flat, insuring a steady cash flow for yourbusiness.

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Pyara Ghar

MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase,Renovate
or Construct your home the way you have always wanted. Having your own homewas never so
easy Personal LoanMCB Easy Personal Loan provides you with the financial advantage to do
things you'vealways wanted to but never had the sufficient funds for. Take that much-needed
holiday.Buy a car. Refurnish your house. Purchase a new TV. Finance a better education for
yourchildren.

Instant Finance

With MCB instant Finance, get a loan instantly at any MCB branch against liquid collateral at
competitive pricing.

Account Opening Department:

This department deals with account opening section of the bank where the customers can open
up their account in MCB. There are various steps involved in the opening of the account which
are the following:

 Application form
 Specimen card
 Account opening register
 Cheque books

Application Form:

The customer who wants to open up his account will have to meet with the manager or
the second officer who will then provide the customer with the application form.

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Specimen Card:

This card contains two signatures of an applicant, applicant A/c no, A/c type, branch
code, title of A/c, it will be attached with an application form. Banker uses this card at the
time when he receives the cheque; he compares customer’s signature with the signature
on the cheque for avoiding fraud.

Account Opening Register:

The manager records the necessary details into this register and allots an a/c number from
this a/c opening register. This register is maintained for each type of account and the a/c
numbers are allotted serially. After opening a saving and current account every
applicant’s data is entered into the computer to maintain a safe record and application
form is properly filled so that it can be available when necessary.

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Cheque Book:

The customer is provided with the cheque book when the bank accepts the A/C opening
application form and the letter of thanks is received by the customer.

Different kinds Of Customers:

There are many different kinds of accounts that customers can open up, which are the following

Individual:

Individual account is an account that can be operated by only one person; it is also called
as a private account. Following are required to open up an individual account.

1. Signature of customer on back of AOF.

2. N.I.C photocopy attached
3. Mention next of kin (nominee)

Joint:

Joint account is an account in which the applicant mentions that how much a person will
operate the account. Proper instructions are given such that:

Any OneOf Us Or Survivor:

In this case if a person dies then the other will handle the account individually.
Any Two/All Of Us Jointly:

In this case if a person dies then the partner will not be able to operate the account
individually without having permission from the court.

The requirements of opening a joint account are the following:

 Sign of both customers on back of AOF

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  Sign on joint A/C # mandate
 Name and A/C # of introducer
 NIC copies of both members.
 Mode of operation.

Partnership Account:

It is a type of a joint account and the following is required to open up a partnership

account:

 Partnership deed certified copy

 NIC photocopies of all partners.
 Partnership mandate for account signed by all the partners
 A letter duly signed by all the partners containing the operating
 instructions of the account also has to be taken.

Company Accounts:

For opening up a company accounts following documents are required:

 Copy of certificate of incorporation

 Memorandum of Association
 List of Director’s
 Copy of board resolution
 Certificate of Commencement of Business
 Copies of NIC of Director’s
 Company’s Balance Sheet

Letter of Thanks:
Bank prepares ‘Letter Of Thanks’ for the new customer. This act promotes good will among the
customer.

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Pay-in Slip:
This slip is used for depositing the additional amount. The bank will accept the Pakistanis notes.
All cheques and other instruments should be crossed before they are deposited for credit into the
account. There shall be no restriction on number of withdrawals in current account. An account
holder wishing to close his account must surrender the unused cheques to the bank. The current
account is computerized, thus it generate the statement of account for all account holders
periodically. Incidental charges of Rs.50 are beard by the account holder if its credit balance is
less than Rs.10000.

Closing Of An Account:
There might be a number of reasons for this, some them are listed as follows:

 If customer desires to close his account

 In case of death of one account holder
 Bankruptcy of the account holder
 If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account hold for informing
him that his account is going to be closed. There is need an approval form higher
authority to close any account.

Different Types Of Accounts:

There are different types of accounts and they are as follows:

Current Account:
The current account is the most common account and the most preferred amongst business

concerns. The theoretical explanation for this would be that they can function more efficiently
but since in reality there are no restrictions on any with drawl the only reason we could think of
is that current account facilitates online banking which saves time (which in this ultra-
competitive business world the most precious resource) to a considerable extent. In case of a

23
current account the client does not earn any interest. Current account enables the client to do
cash transactions in a more efficient manner.

Saving Account:
Individuals who wish to earn profit/interest on their investment normally maintain the profit and
loss sharing account but in order to earn interest the client is required to keep his/her deposits
with the bank for some time. In theory there are some restrictions on withdrawal of money from
a Profit and Loss sharing account but in general banking practice there is no restriction on any
with drawl from a Profit and Loss sharing account. The interest/profit is paid half yearly.

Profit And Loss Account:

PLS saving account having a running minimum credit balance of RS.10000. 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.

Profit/Loss:
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.

Rules For PLS:

The rules for PLS are as under:

 Account holder can only withdraw sums from his account by means of cheques
supplied to him by the bank for that particular account.
 Postdated and stale cheques will not be paid.
 The bank reserve to itself the rights to close any account without previous notice
any account, which has not satisfactory account credit, balance.
 If the account holder withdrawals the money under 7 days’ notice, the profit loss
earning products will be computed on the monthly minimum balance. Zakat is
deducted every year on non-exempted accounts.

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

 Minimum balance is Rs.500, 000/=

 Below minimum balance, profit calculation ignored
 Profit calculated on daily basis
 Profit paid on annually basis
 Zakat deducted on at 2.5%
 The higher the balance, higher the rate is offered.
 Profit calculated on daily basis.
 Profit paid into your account every month

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 Loan Department:

Types of Loans:

There are different types of loan which are as given below:

 Short term loan

 Long term loan

Short - Term Loan:

Short – term loan can be defined as a loan that is scheduled to be repaid within a short
time of period, usually less than a year.

Long – Term loan:

Long – term loan can be defined as a form of debt that is paid off over an extended time
frame that exceeds one year in duration. Obtaining a long term loan provides a business

26
 with working capital that it can use to purchase assets, inventory or equipment which can
then be used to create additional income for the business.

I came to know that the basic information that is required for the issuance of credit or loan is as
under:

 Name of the customer

 Copy of CNIC
 Expiry date of CNIC
 Date of birth
 Complete address
 Income of the customer

The bank provides the limit before it issues the loan to its customer or any organization. There
are some documents and guarantee required by the bank when it is about to issue the loan some
of which are follows:

 Account number of the borrower and the account type

 Nature of the business and the main products
 Name of the borrower
 Purpose of the loan, Partnership or Proprietorship business
 Type of the business
 Details in case of firms and companies associated with the loan
 The current financial position of the business
 The accurate financial statements of the business
 The details of the borrower’s bank account with other banks

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 During my time in credit and loan department, I have learned that there are three financed
organization type (FOT) in which the borrowers are categorized as following:

1.Consumer
2. Small And Medium Enterprise (SME)
3. Corporate / Commercial

Consumer:

This particular section deals with the individuals who apply for the financing to meet
their personal needs. Consumer financing includes facilities such as credit cards, auto
loans, housing finance and personal loans.

Small And Medium Enterprise (SME):

By small and medium enterprise we mean an entity, which employs 250 or less, not more
than it, if it is related to a manufacturing concern and 50 persons if it relates to trading.

a. A trading concern with total assets at cost excluding land and building up to Rs. 50
million

b.A manufacturing concern with total assets at cost excluding land and building up to Rs.
100 million.
c. Any concern trading or manufacturing with net sales not exceeding Rs. 300 million as
per latest financial statements.

Corporate/ commercial:

A customer who doesn’t falls under the category of consumers or SME shall be
categorized as corporate/commercial.

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 MCB CARDS:

There are three types of cards are as under:

 Smart card
 Visa debit card
 Visa credit card

 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,
recharge prepaid connections, register for mobile and internet banking services and much more.
The convenience and flexibility of MCB SmartCard will help you live a smarter life.

It not only helps you manage your

expenses, but also eliminates undue interest on your day to day credit card transactions. Your
balance is always within your reach and you spend accordingly. MCB now brings MCB
SmartCard -a secure and convenient instrument of payment with unmatched functionalities. It
provides 24-hour direct access to your bank account.

29
  Debit Card

Now MCB brings a secure, convenient and

quick payment facility that enables you to do
purchasing by using your existing MCB ATM
/ MCB Smart Card as a DEBIT CARD.

 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 i-revolve, which makes variable mark-up rate available to customers allowing
them to repay at affordable rates

30
 SWOT Analysis of MCB Bank:

Defination:

The SWOT analysis helps organizations assess issues within and outside the organization. The
SWOT analysis, made up of an assessment of strengths, weaknesses, external opportunities and
threats from competition, provides an outline for strategic decision-making.

INTERNAL ANALYSIS:

Internal analysis of a firm is the analysis of its strengths and weaknesses. Unless a firm
has internal strengths and controls its weaknesses, it cannot take advantage of
opportunities and escape threats which the external environment presents. Following are
the main strength and weaknesses of MCB.

Strengths:

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 Strength can be defined as an area where a company is best at doing something or a
feature that puts the company at an advantage in comparison to its competitors. MCB
enjoys the following strengths:

 MCB is a well-established bank enjoying long history of over 55 years of

experience and profitable operation.
 MCB is the largest private bank in Pakistan and third largest bank amongall
banks.
 It has the largest branch network among private banks of Pakistan
 MCB is the market leader in introduction of e-banking and it has thelargest ATM
network in the country.
 The Banks’ Rupee Traveler Cheques have been market leaders for the past six
years
 MCB rated the best domestic bank for two consecutive years of 2000 and2001 by
euro money, a leading international publication.
 MCB has the ability to bring innovative products and services like personalized
service, electronic funds transfer, sophisticated financial products such as
electronic banking, auto-teller machines and evening banking
 MCB has been very effective in controlling costs as it successfullyrestructured
itself after its privatization. During this process more than1,600 employees were
relieved under a golden handshake scheme and 110 branches were closed.

Weaknesses:

A weakness is defined as an area in an organization where theorganization is not as good at

doing something as its competitors or a thing which an organization lacks thus putting the
organization at disadvantage in comparison to its competitors. Based on the above definition,
MCB has the following weaknesses

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  In MCB there is a lack of specialized skill because of job rotation policy of human
resource department. The bank should concentrate upon increasing its abilities on
individual service basis.
 Mismanagement of time is another big mistake in MCB branches, the bank official time
of closing is 5:00pm but due to mismanagement of time allocation and work the staff is
normally on their seats till 7:00 or 8:00 clock.
 Slow improvement and acceptance of technological charges.
 The overseas branch network of MCB is limited. It has only four overseas branches
whereas HBL has twenty overseas branches, three subsidiaries, two affiliates, and one
representative office. Similarly NBP has fifteen overseas branches, one subsidiary, and
four representative offices
 Employees at branch level are not properly motivated to work by heart. They take the all
routine activities as a boring job.
 Most of the employees lack managerial training as they are not properlyeducated. Due to
seniority, they have moved up on the hierarchy line to Grade-I,II or III positions having
hardly bachelor degrees. This type of senior staff cannotapply the modern and innovative
techniques of management in decision making.

EXTERNAL ANALYSIS

An organization has to monitor its environment constantly to keep up withnew developments and
changes in the environment. A change in the externalenvironment may be either an opportunity
or threat. In either case theorganization has to properly use it strengths to avail the opportunities
and avoid or minimize the negative effects of threats. Following are the main opportunities
andthreats of MCB. Minimize the negative effects of threats. Following are the main
opportunities andthreats of MCB.

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Oppurtunities:

An opportunity can be defined as a change in external environment whichif properly exploited

with the organizational strengths will result in enhanced sales market share or income. Using its
strengths. MCB can avail the followingopportunities

 MCB may enhance its Rupee Travelers Cheques (RTCs) sales bysearching for new
market niches
 It can introduce debit card system or may convert the existing ATM cardsinto a complete
debit card.
 New products like personal loans mortgage and auto leasing and each management which
diversify credit risk and add to revenue generating products are currently provided in big
cities like Lahore, Islamabad,Karachi and Rawalpindi, these products may be tested for
success in other areas like Peshawar, Quetta and Sargodha.
 Developing network for electronic transaction require huge investmentwhich cant be
made all at once, there exists an opportunity for MCB toenter into agreement with other
banks to use each other’s ATMs which willresult in an increased convenience to MCB
customers and customers of other banks
 As all around the world remittances of money are strictly monitored so asthe money
remitted may not fall in hands of so called terrorists for that allconventional money
laundering through Hun dies have been stopped thereis an opportunity for MCB to extend
its branch network to variouscountries emphasizing mainly on introducing electronic
fund transfer facilities.

Threads:

Threat can defined as a change in external environment which if notmet with proper strategies
will result in loss of revenues market share or income. In the context of MCB’s external
environment the following potential threats exist

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  The competition has become severe by the entrants of so many banks, so to exist
one will have to prove himself in its services through excellent management and
will have to satisfy its shareholders. Otherwise he will be out of market.
 The Rupee Travellers Cheque (RTC) sales volumes may be affected on account of
regulatory restriction imposed by SBP on issuance to largevalue denominations.
 The frequent reduction on 6-month and 12-month Treasury Billsdiscount rates by
SBP may create pressure on the banks profitability.

Recommendations for SWOT analysis:

 improve and accept the technological charges.

 MCB bank hire efficient managers
 They should maintain their revenue cost
 Employees of MCB Bank should be motivated by heart for their efficient work
 Mismanagemnt of time in MCB Bank should be maintained

Ratio Analysis:

A ratio analysis is a quantitative analysis of information contained in a company's

financial statements. ... Ratio analysis is used to evaluate various aspects of a company's
operating and financial performance such as its efficiency, liquidity, profitability and
solvency.

1. Profit before Tax Ratio

(2016):

= profit before tax /total income

= 32,062,744 /20,949,696

= 153.0463%

(2015):

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 = 31,483,179 / 19,424,906

= 232.2896%

2. Return on equity

(2016):

= Profit after tax /Shareholder's equity

= 20,949,696/ 88,156,909

= 23.7641%

(2015):

= 19,424,906 / 78,915,003

= 24.6150%

3. Current ratio

(2016):

= current assets/ current liabilities

=701,815,811 / 633,908,115
= 1.11 :1

(2015):

= 600,590,624 /539,765,115

= 1.12 :1

4. Net profit ratio

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(2016):

= Profit before tax /Markup earned

= 32,062,744/ 68,356,191

=46.9054%

(2015):

= 31,483,179 / 68,146,588

= 46.1992%

5. Return on share capital

(2016):

= Profit after tax / Share capital

= 20,949,696/ 9,198,601
= 227.7487%

(2015):

= 19,424,906/ 8,362,365

= 232.2896%

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 CONCLUSION

 We have concluded that MCB is fully committed, motivated and aimed to do

exactly what is mentioned in its mission statement.
 MCB has ability to face the challenges of present dynamic world.
 Skilled and highly talented staff is keen to provide best services to the customers in most
efficient and effective way.
 MCB aims to build long term relationships with customers, thus making profitable
relationship with them.
 MCB management also seems interest to prevail over international market.
 MCB has always showed full responsibility towards various societal activities
 Finally we conclude that MCB’s journey towards success of heights is going on…If it
keep on moving as so, soon it will touch maximum fame. Even beyond the
imagination….
 MCB management is fully aware of present Banks Crises. And has taken necessary steps
to satisfy all of its customers about various rumors that are in the air.

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SUGGESTIONS

 There should be decentralization in the structure of MCB bank

 Human Recourse Department must exist at least every zonal branch.
 Management should make the market survey time to time, after regular intervals to have
latest and authentic information about market and other influencing factors
 MCB should make more investment in Islamic banking and open at leastone Islamic
Banking branch in every city of country.
 In every branch, there must be separate refresh room for female employees.

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