Student Name

Student ID
MBA
Finance
Finance (FINI-619)

Internship report

MCB Bank Thanil Fatohi

Branch(1177)
Brief Introduction of the Organization
It was established under the Indian companies act V11
as limited company by adamjee group on 9th of July
1947
In 1974 it was nationalized during the government of
Mr. Zulfiqar Ali Bhutto.
In 1991Nishat group purchase this bank and it was the
first bank which was privatize.
It is awarded as the “Best Bank in Pakistan” in 2001,
2003, 2004 and 2005.
The 2nd largest bank with deposit base Rs 431 billion
and assets Rs 570 billion.
Listen on London Stock Exchange.
Head office is located in Karachi.
Business volume
Particulars 2012(In millions)
Total Assets 765,899
Total Liabilities 664,148
Total Sales 68,356
Shareholder Equity 88,157
Profit before tax 32,054
Profit After Tax 20,941
Total income 50,009
Earning Per Share 22.77
Deposits 545,061
Advances 239,583
Investments 402,069
Authorized Capital 10,000
Paid up/ share capital 9,199
Bonus share 920
Main Rivals of MCB
United Bank Limited
Allied Bank Limited
Bank al Habib Limited
Bank al Falah Limited
Askari Bank
Faysal Bank
Bolan Bank Limited
Soneri Bank Limited
Atlas Bank Limited
Indus Bank Limited
Meezan Bank Limited
Bank Islami
The Bank of Punjab
Training Program (Duties performed)
Starting Date: 16th of Dec. 2013
Ending Date: 24th of Jan. 2014
Account opening, fill the account opening form
Deposits, fill the deposit slips
Demand draft and its working
Cash and bills, pay and receive the amount for
accounts and also fill the scrolls for collection
of bills.
 Learning Experience
Knowledge Gained
I observe the role of manager and know about
management.
Skills Learned:
I learn about customer dealing and filling the
concerned slips.
Attitudes Observed/Values Gained:
I practically know about team work and cooperation.
Most Challenging Task Performed:
The most challenging thing is to understand the
behaviors and perception of different clients.
 Ratio Analysis

Ratio MCB Bank

analysis
Net Profit Margin= (Net profit after taxation / Net
sales) * 100
Net Profit Year 2010 Year 2011 Year 2012
Margin
16,873,175/ 19,424,906/ 20,940,696/
54,821,296*100=30.7 68,146,588 68,356,191
7% *100 *100
= 30.77 % = 28.51% = 30.63%
Ratio MCB Bank
analysis
Gross spread ratio=Net interest margin / Mark-up
earned*100
Gross Year 2010 Year 2011 Year 2012
spread
ratio =6,833,529/ =4,526,314/ 40,856,172/
54,821,296*100 68,146,588*100 68,356,191
=0.67 times*100 =0.65 times*100 =0.59times*100
=67% =65% =59%
Ratio MCB Bank
analysis
Spread Ratio = Interest Earned / Interest Expense

Spread Year 2010 Year 2011 Year 2012

ratio
54,821,296 / 68,146,588/ 68,356,191/
17,987,767 23,620,274 27,500,019
= 3.04 times =2.88 times =2.48 times
Ratio MCB Bank
analysis Non Interest Income to Total Income Ratio = Non
interest income / total income*100
Non Interest Year 2010 Year 2011 Year 2012
Income to
=6,265,306/ =8,112,191/ =9,153,331/
Total
61,086,602*10 76,258,779*1 77,509,522*100
Income
0 =10.25% 00 =11.8%
Ratio
=10.63%
Ratio MCB Bank
analysis

Return on Assets= Net income after tax/Average Total

Assets*100
Return on Year 2010 Year 2011 Year 2012
Assets
=16,873,175/ =19,424,906/ =20,940,696/
(ROA)
538,388,170*100 610,392,918*100 709,566,107*10
=3.13% =3.18% 0
=2.95%
Ratio MCB Bank
analysis Du Pont Return on Assets= (Net income /sales)
*(sales/Average total assets)*100

Du Pont Year 2010 Year 2011 Year 2012

Return on
Assets =16,873,175/ 19,424,906/ =20,940,696/
Ratio 538,388,170*100 610,392,918 *100 709,566,107*100
=3.13% =3.18% =2.95%
Ratio MCB Bank
analysis Return on Equity (ROE) =Net income after tax/stockholder
equity*100
Return on Year 2010 Year 2011 Year 2012
Equity
(ROE) =16,873,175/ =19,424,906/ =20,940,696 /
69,180,011 78,915,003 88,156,909
=0.243*100 =0.246*100 =0.237*100
=24.39% =24.61% =23.75%
Ratio MCB Bank
analysis
Debt Ratio = Total debt/Total Assets

Debt Ratio Year 2010 Year 2011 Year 2012

=488,348,404/ 564,430,741/ =664,148,186/

567,552,613*100 653,233,223*100 765,898,992*10
=0.86 *100 =86% =0.86 *100 0
=86% =0.86*100
=86%
Ratio MCB Bank
analysis
Debt / Equity Ratio= Total Debt/Total equity

Debt to Year 2010 Year 2011 Year 2012

Equity
Ratio =488,348,404 / = 564,430,741/ = 664,148,186/
69,180,011 78,915,003 88,156,909
=7.06 times =7.15 times =7.53times
Ratio MCB Bank
analysis
Times Interest Earned Ratio =Earnings before interest
and tax (EBIT)/interest expenses

Times Year 2010 Year 2011 Year 2012

Interest
Earned =44,240,842/ =55,103,453/ =59,553,763/
Ratio 17,987,767 23, 620, 274 27,500,019
=2.46times =2.33times =2.16 times
Ratio MCB Bank
analysis Advances / Deposits Ratio= Loans/deposits

Advances / Year 2010 Year 2011 Year 2012

Deposits =254551,589/ =227,580,139/ =239,583,320/
Ratio 431,371,937 491,188,710 545,060,728
=0.59 times =0.46 times =0.44 times
Ratio MCB Bank
analysis
Operating Cash Flow Ratio=operating cash
Flow/current liabilities

Operating Year 2010 Year 2011 Year 2012

Cash Flow
Ratio =58,701,161/ =124,459,950/ =96,700,952/
274,715,687 550,726,395 647,937,421
=0.21 times =0.22times =0.14 times
Ratio MCB Bank
analysis Dividend per Share=Dividend amount/No of equity shares

Dividend Year 2010 Year 2011 Year 2012

per Share = 8,880,716/ =9,806,772/ =11,707,312/
760,215 836,236 919860
=11.68Rs =11.72Rs =12.72Rs
Ratio MCB Bank
analysis
Earnings per Share =Net income/No of outstanding share

Earnings Year 2010 Year 2011 Year 2012

per Share =16,873,175/ =19,424,906/ =20,940,696/
760,215 836,236 919860
=22.19Rs =23.22Rs =22.76Rs
Ratio analysis MCB Bank

Price/Earning Ratio =Price per share/Earning per share

Price/Earning Year 2010 Year 2011 Year 2012

Ratio
=228.54/ =134.60/ =209.76/
22.19526 23.22896 22.76508
=10.29 times =5.79 times =9.21 times
Conclusion

Bank should rely more on the interest

income rather than non interest income
Bank has to pays its shareholders
dividend from its income as it is capable
of doing this
The ratios of the bank show profitability
and smooth running of successful
business
Recommendations for Improvement
(According to learning experience)
MCB should focus more on quality of customer
services in this era of competition.
There is a need to improve the customer and employee
relationship.
Bank must focus on the application of new and
updated technology and train their employees side by
side.
There must be a concept of job rotation so that each
employee must be able to perform every activity.
Internal control should be more strengthened so that
the performance of organizations increases.
Recommendations for Improvement
(According to Ratio analysis)
Net profit margin decrease in 2011 but in 2012 it
shows increasing trend but there is need to
increase the profit margin by minimizing the cost.
There is a need to increase the interest income.
Non interest income is not the guarantee of
financial health of any business.
Bank must not rely on its own asset instead it
takes fewer loans to lessen the interest income.
Return on equity is also shows diminishing trend
in 2012 it shows that expenses are more.
Try to reduce the interest expenses and attract
more customers to increase the income of bank.
THANK YOU