Akeel Hussain 11022720-130

MCB

Akeel Hussain 11022720-130 FMAS

INTERNSHIP REPORT ON MUSLIMCOMMERCIAL BANK LIMITED

Internship Report submitted to the Faculty of Management &Administrative Sciences in Partial Fulfillment of the Requirements for

the Degree of Master of Business Administration

By:

Akeel Hussain

M.B.A. (Finance)

Roll no. 11022720-130

Session: 2011 – 2015

University of Gujrat

Date of Submission:

22-01-2013

Name of Program Coordinator_________________

Signature of Program Coordinator______________

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ACKNOWLEDGEMENT

All praise to Almighty Allah, the most merciful and compassionate, who give me

skills and abilities to complete this report successfully

I am grateful to my parents who are always been a source of encouragement for

me throughout my life and from start to the end of this report

I am thankful to all my staff members so Muslim commercial Bank Road

Chamber of commerce & Industry Branch, Sialkot.

I found every one very co-operative and helpful for providing me the Theoretical

as well as practical knowledge about the function and operation of the bank.

I express my greatest gratitude to my kindhearted Supervisor Miss Mehreenwho was the Person who made me able to write this report, Her enthusiasm

shows the way forward to me to achieve this success and who kept me in high

spirit through his appreciation. She helped me a lot each time I went up to her.

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1 EXECUTIVE SUMMARY:Internship is the one of the crucial part of the MBA course and this provide the

practice knowledge of what students read about business in their books.

Internship report is prepared to full fledge analysis of an organization. As this is

the only field experience that students before entering practically into the market.

Banking play very important role in the commerce and economic development of

a country. Now-a-days banks are using different modern technologies, which

influence the managerial activities that are why I decided to do my internship

Training in the bank. In preparation of this Report is have tried my best to provide

all Possible information about the operation, function and tasks of MCB in brief

and comprehensive form. It also includes a brief department worked during

internship. I have also tried my best to use simple and easy words and language.

The first chapter includes executive summery and objective study of the

organization; the second chapter includes overview of the MCB with brief history,

nature of the organization, Business Volume numbers of employee and product

line. Later on third chapter contain the Branch structure, various departments and

functions & strictures of account and finance departments, finance and

accounting operations, Role of finance Manager and the use of electronic media

in decision making. Forth chapter consist of the critical analyses of theatrical

concepts with the help of five year balance sheets and Income statements and

future prospects. Then internship report ends with some recommendation after

identification of some weakness observed during the course of internship.

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iiiAkeel Hussain11022720-130 FMAS

Table of ContentsACKNOWLEDGEMENT.................................................................................................................................... i

1 EXECUTIVE SUMMARY: .............................................................................................................................. ii

Part-1.............................................................................................................................................................1

5.1 Introduction: ....................................................................................................................................... 1

5.1.1 Back Ground of study:..................................................................................................................1

5.1.2 Purpose: ....................................................................................................................................... 1

5.1.3 Scope of Work:.............................................................................................................................2

5.1.4 Objectives that I want to achieve: ...............................................................................................2

5.2 overview of organization: ...................................................................................................................2

5.2.1 History of MCB Bank: ...................................................................................................................3

5.2.2 Nature of organization:................................................................................................................4

Vision Statement:..............................................................................................................................4

Mission Statement: ...........................................................................................................................4

Key Values of MCB Bank Ltd: ............................................................................................................4

Integrity:........................................................................................................................................ 4

Respect:......................................................................................................................................... 4

Excellence: .................................................................................................................................... 5

Customer Centricity: .....................................................................................................................5

Innovation: .................................................................................................................................... 5

NATURE OF BUSINESS ACTIVITES:..................................................................................................... 5

Holder of public money: ...............................................................................................................5

Business loans: ..............................................................................................................................5

Consumer loans: ...........................................................................................................................6

Investments: ................................................................................................................................. 6

5.2.3 Business volume:..........................................................................................................................7

Total Assets: .......................................................................................................................................... 7

Investment: ........................................................................................................................................... 8

Deposits: ...............................................................................................................................................9

Gross Advances: ..................................................................................................................................10

Profit before Taxes:.............................................................................................................................11

Profit after Taxes:................................................................................................................................12

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5.2.3.1 ACHIVEMENTS AND AWARDS: .................................................................................13

Euro money Awards: .......................................................................................................................13

Asia Money Award: ..........................................................................................................................13

5.2.4 MCB Products and Services Details:...........................................................................................13

Current Account:.............................................................................................................................13

Savings Account: .............................................................................................................................13

Term Deposit:..................................................................................................................................14

MCB Online Banking: ......................................................................................................................14

MCB MNET: .....................................................................................................................................14

MCB Cash Management: ................................................................................................................14

MCB Channel Financing: .................................................................................................................14

MCB Local Rupee Drawing Arrangement: ......................................................................................14

MCB Home Remittance:..................................................................................................................14

MCB Corporate Financing: ..............................................................................................................15

MCB Project & Structured Finance: ................................................................................................15

MCB Syndicated Loans and Debt Capital Markets:.........................................................................15

MCB Quasi Equity/Hybrid Instruments:..........................................................................................15

MCB Advisory Services:...................................................................................................................15

MCB Islamic Banking:......................................................................................................................15

MCB Agri Products: .........................................................................................................................16

MCB Privilege: .................................................................................................................................16

MCB Salary Club: .............................................................................................................................16

MCB Investment Services: ..............................................................................................................16

MCB Visa Credit Card: .....................................................................................................................16

MCB Car4U:.....................................................................................................................................17

MCB Instant Finance: ......................................................................................................................17

MCB Smart Card:.............................................................................................................................17

MCB Rupee Travelers Cheque: .......................................................................................................17

MCB ATMs:......................................................................................................................................17

MCB Mobile ATM:...........................................................................................................................17

MCB Lockers:...................................................................................................................................17

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MCB Full-Day Banking: ....................................................................................................................18

MCB Bancassurance:.......................................................................................................................18

MCB Call Centre: .............................................................................................................................18

MCB Mobile: ...................................................................................................................................18

MCB Virtual Banking: ......................................................................................................................18

5.2.5 PEST Analysis:.............................................................................................................................18

Political:...........................................................................................................................................19

Economical: .....................................................................................................................................19

Social: ..............................................................................................................................................19

Technological: .................................................................................................................................19

5.2.6 Contribution of MCB toward economic development: .............................................................20

5.3 Organizational Structure:..................................................................................................................20

5.3.1 Organizational Hierarchy chart: .................................................................................................20

5.3.2 Number of employees: ..............................................................................................................21

5.3.3 Main offices:...............................................................................................................................21

5.3.4: Introduction of all departments: ..............................................................................................21

Cash Department: ...........................................................................................................................22

Clarification: ....................................................................................................................................22

Payment: .........................................................................................................................................22

Receipts:..........................................................................................................................................23

Collection of money from the customer in accounts: ....................................................................23

Collection of utilities bills: ...............................................................................................................23

Remittance Department: ................................................................................................................23

Foreign remittances: .......................................................................................................................23

Local remittances: ...........................................................................................................................24

Demand Draft: ................................................................................................................................24

Pay Orders:......................................................................................................................................24

Telegraphic Transfer: ......................................................................................................................24

Foreign Exchange Department: ......................................................................................................25

Kinds of Foreign Exchange Transaction: .........................................................................................26

Current Transactions:......................................................................................................................26

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Visible Trade:...................................................................................................................................26

Invisible Trade: ................................................................................................................................26

Capital Transactions:.......................................................................................................................27

Short term financial Transaction: ...................................................................................................27

Working Balance: ............................................................................................................................27

Imports:...........................................................................................................................................27

Credit Department: .........................................................................................................................27

5.3.5 Comments on the organizational structure:..............................................................................28

Part 2:..........................................................................................................................................................29

Internee Work:........................................................................................................................................29

Introduction of branch:.......................................................................................................................29

Hirarchy of branch: .............................................................................................................................30

Supervisors during internship: ............................................................................................................31

First week:...........................................................................................................................................31

Customer service department: ...........................................................................................................31

Second week: ......................................................................................................................................33

Account opening: ............................................................................................................................33

Third week: .........................................................................................................................................34

Know your customer:......................................................................................................................34

Apply for check book: .....................................................................................................................35

Issuance of cheque book: ...............................................................................................................35

DAK receipts and dispatch: .............................................................................................................36

Wastage of cheque book: ...............................................................................................................36

Fourth week: .......................................................................................................................................36

Account closing and account dormant: ..........................................................................................36

Clearing department: ......................................................................................................................37

Cheque of transfer: .........................................................................................................................37

Cheque of clearing: .........................................................................................................................38

Cheques of collection:.....................................................................................................................38

Return memo about cheques: ........................................................................................................39

Fifth week: ..........................................................................................................................................39

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Fifth week in my internship: ...........................................................................................................40

Department of remittance:.............................................................................................................40

Demand draft: .................................................................................................................................41

Clearing process of demand draft:..................................................................................................42

Pay order:........................................................................................................................................42

Cross branch transaction: ...............................................................................................................42

Sixth week: ..........................................................................................................................................43

Cash department: ...........................................................................................................................43

5.4.6 Summary of learning:.................................................................................................................44

5.4.6.1 Skill and qualification: .........................................................................................................44

5.4.6.2 Responsibilities: ..................................................................................................................44

5.4.6.3 Impact of internship on future career plans:......................................................................45

5.4.6.4 Relation of classroom and practical knowledge: ................................................................46

6.1 Conclusion of Internship: ..............................................................................................................46

6.2. General observation: ...................................................................................................................47

6.3. SWOT analysis: .............................................................................................................................48

Strengths: ........................................................................................................................................48

Weakness: .......................................................................................................................................48

Opportunity:....................................................................................................................................49

Threats: ...........................................................................................................................................49

7.0 Recommendations: .......................................................................................................................49

8.0 Refferences: ……………………………………………………………………………………………………………………………58

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1Akeel Hussain11022720-130 FMAS

Part-1

5.1 Introduction:This internship offers me an incredible opportunity to gain real-world experience

in the high-stakes finance industry. Most importantly this internship allows me to

distinguish myself from my classmates, as I gain a competitive advantage by

connecting my coursework with industry experience.

5.1.1 Back Ground of study:The Background of this study is that we are student of business administration

and required to complete our six-week internship in an organization. We are

requires to submit our knowledge, not submit our report because this report is

purely based on our knowledge. It is necessary for us to work in an organization,

which is more near to facilitate you as an employee. Because if any organization

treat you as a staff member, it mean they give you same as giving to their

employees and MCB is the bank which have a potential to train the student as a

employee which actually provides you a real picture about the working of the

organization or what actually happens in the practical life.

5.1.2 Purpose:The main purpose of that study is to aware with the organization environment

because this field is entirely different from the university or home life although

both have certain importance on their places but we are required to gain practical

knowledge and to implement those things which we have learnt in theories which

will be helpful for us to improve our analytical skills, working skills,

communication skills and other skills etc, and it gives us a sense to how to make

a relation how to manage these relation and how to be a successful in future.

The other rationale to doing internship is to use our academic knowledge or we

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can say we compare our educational knowledge with the practical field and try to

implementation of those acquaintances because as internee we get opportunity

to enhance our academic knowledge Creating PR (personal relations) because

on the bases of PR more chances of progress no matter whichever field you

chose for you career.

5.1.3 Scope of Work:The scope of work, I feel that all organization prefers the internship program and

this program give them the right person and this is easier for the organization to

select the person by this program. Because it cut the cost of many usual steps of

hiring and without these, they obtain fresh blood so that why organization feel

internee as an employee.

5.1.4 Objectives that I want to achieve: Prime concern to learn maximum about the Banking sector in General and

MCB in particular.

Analyze the company’s financial condition through the financial statements

(compute financial ratios and compare to the industry averages).

To describe the impact of financial decisions on the health and functioning

of the overall organization.

To learn the various steps and procedures of credit risk management &

administration.

Finding out the weaknesses, short comings, strengths and beauties of the

credit administration department.

5.2 overview of organization:Banking is one of the most sensitive businesses all over the world. Banks playvery important role in the economy of a country and Pakistan is no exemption.Banks are custodian to the assets of the general masses. The banking sectorplays a significant role in a contemporary world of money and economy. Pakistanhas a well-developed banking System, which consists of a wide variety of

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institutions ranging from a Central Bank to commercial banks and to specializedagencies to cater for special requirements of specific sectors. These are fewprocesses and developments from which banking industry has been passingthrough for few years.

Improvements and strengthening of IT systems to cater to E-bankingdemands of customers.

Optimizing the level of human resources to ensure quality customerservice.

Wide range of services in consumer and corporate banking fields. Foreign banks with their corporate culture have started coming in light of

banking, Industry growth and development. Banks started providing project and term finance to build additional

manufacturing Capacity, to increase exports, productivity and employmentin the country.

Deep and broad-based organizational restructuring Upgrading the human resource base through training and quality

recruitment. Privatization. Mergers and Acquisitions. Mortgage based personal running finance. Auto and Home financing. Margin financing.

5.2.1 History of MCB Bank:

MCB Bank Limited" formerly known as "Muslim Commercial Bank Limited was

incorporated by the Adamjee Group on July 9, 1947, under the Indian

Companies Act, VII of 1913 as a limited company. MCB is one of the leading

banks of Pakistan with a deposit base of Rs. 368 Billion and total assets over

Rs.500 Billion. Incorporated in 1947, MCB soon earned the reputation of a solid

and conservative financial institution managed by expatriate executives. In 1974,

MCB was nationalized along with all other private sector banks. The Bank has a

customer base of approximately 4 million, a nationwide distribution network of

over 1,100 branches and over 500 ATMs in the market. During the last fifteen

years, the Bank has concentrated on growth through improving service quality,

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investment in technology and people, utilizing its extensive branch network,

developing a large and stable deposit base.

5.2.2 Nature of organization:

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.

Key Values of MCB Bank Ltd:These are the standards and principles which determine our behavior and how

we interact with our customers and each other:

Integrity:We are the trustees of pMCBic 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 customer’s 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.

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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.

NATURE OF BUSINESS ACTIVITES:

Holder of public money: Collecting deposits from customers and giving them interest

Business loans: Short term loans to business firms

Working capital loans

In term construction financing

Security dealer financing

Retailer financing

Assets based financing

Syndicated loans

Long term business loans

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Term business loans

The revolving credit financing

Long term project loans

Loans to support acquisition of the business funds

Consumer loans: Home Finance

Car Finance

Credit Card

Personal Loans

Investments: Government securities

Stock exchange

Pakistan investments bonds

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5.2.3 Business volume:

Total Assets:Rupees in billions

December 31st 2006 2007 2008 2009 2010 2011

Total Assets 342.1 410.5 443.6 509.2 567.6 653.2

Increase/Decrease ------ 68.4 33.1 65.6 58.4 85.6

Percentagechanges

------ 20.00% 8.06% 14.79% 11.47% 15.08%

Figure: 1 Total Asset 2006 to 2011

Comments:

Figure 1 and table shows that assets of MCB increase every year throughoutfrom 2006 to 2011. That is positive sign for bank but this is a hurdle if bank holdunnecessary assets.

0

100

200

300

400

500

600

700

2011 2010 2009 2008 2007 2006

Total Assets in billions

Column1

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Investment:Rupees in billions

December 31st 2006 2007 2008 2009 2010 2011

Investment 63.5 113.1 96.6 167.1 213.1 316.7

Increase/Decrease ----- 49.6 -16.5 70.5 46.0 103.6

Percentage changes ----- 78.11% 14.59% 72.98% 27.53% 48.62%

Figure: 2 Investments 2006 to 2011

Comments:

The position of the bank in the case of the investment is as strong as compare to

the other previous years. The investment decrease in 2008 but increase in 2007,

2009, 2010 and 2011. The bank also has the plan of investment in successful

projects in coming years.

0

50

100

150

200

250

300

350

2011 2010 2009 2008 2007 2006

Total Investment in billions

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Deposits:Rupees in billions

December 31st 2006 2007 2008 2009 2010 2011

Deposits 257.5 292.1 330.2 367.6 431.4 491.2

Increase/Decrease ----- 34.6 38.1 37.4 63.8 59.8


Figure: 3 Deposits 2006 to 2011

Comments:

The position of the deposits and other accounts is satisfactory for the bank. The

bank deposit and other accounts increase from year to year because of increase

in the business of the bank. The above figures from 2006 to 2011 show the

position of the MCB very clearly.

0

100

200

300

400

500

600

2011 2010 2009 2008 2007 2006

Deposits in billions

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Gross Advances:Rupees in billions

December 31st 2006 2007 2008 2009 2010 2011

Gross Advances 206.8 229.7 330.2 367.6 431.4 491.2

Increase/Decrease ----- 22.9 100.5 37.4 63.8 60.2


Figure: 4 Gross Advances 2006 to 2011

Comments:

From 2006 to 2011 the figures and chart shows the strength of the bank in the

case of the advances. The advance increases from year to year.

0

100

200

300

400

500

600

2011 2010 2009 2008 2007 2006

Gross Advances in billions

Column2

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Profit before Taxes:Rupees in billions

December 31st 2006 2007 2008 2009 2010 2011

Profit before Taxes 18.5 21.3 21.9 23.2 26.3 31.5

Increase/Decrease ---- 3.2 0.6 1.3 3.1 5.2

Percentage changes ---- 17.30% 2.82% 5.94% 13.36% 19.77%

Figure: 5 profit before taxes 2006 to 2011

Comments:

From the figures and chart shows the strength of the bank in the case of the

profit before taxes. The profit before taxes increases from year to year. The chart

shows the strength of the MCB from year to year comparison and this increasing

trend indicates the successful business of the MCB in banking sector.

0

5

10

15

20

25

30

35

2011 2010 2009 2008 2007 2006

Profit before Taxes

Years

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Profit after Taxes:Rupees in billions

December 31st 2006 2007 2008 2009 2010 2011

Profit after Taxes 12.1 15.3 15.4 15.5 16.9 19.4

Increase/ Decease ---- 3.2 0.1 0.1 1.4 2.5

Percentage changes ---- 26.45% 0.66% 0.65% 9.03% 14.79%

Figure: 6 profit after taxes 2006 to 2011

Comments:

From the figures and chart shows the strength of the bank in the case of the

profit after taxes. The profit after taxes increases from year to year. The chart

shows the strength of the MCB from year to year comparison and this increasing

trend indicates the successful business of the MCB in banking sector.

0

5

10

15

20

25

2011 2010 2009 2008 2007 2006

Profit after Taxes

Years

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5.2.3.1 Achivements and Awards:

Euro money Awards: Best Bank Award 2010 Best Bank Award 2009 Best Bank Award 2008 Best Bank Award 2007

Best Bank Award 2006

Asia Money Award: Best Domestic Bank Award 2009

Best Domestic Commercial Bank Award 2007

Best Domestic Commercial Bank Award 2006

5.2.4 MCB Products and Services Details:

Current Account:MCB Bank offers a variety of current accounts to cater to the everydayTransactional needs of various customers. These accounts ensure ease andFreedom to bank from any of the 1100+ branches across the country. TheDifferent accounts include: the Basic Banking Account that has no minimumbalance; Business Account offering free online transactions, Demand Drafts, PayOrders and lots more to meet the day to day business requirements; Current LifeAccount which offers the security of life insurance free of cost; and for all others,the conventional Current Account.

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 asflexibility to transact. Savings Xtra is targeted for customers having Rs. 5 million+ deposit, 365 Gold offers profit rate on daily balance while PLS savings has alower minimum balance requirement. In addition, two unique products: SmartSavings and Savings Maximizer are special saving accounts run solely via debitcards and other remote banking channels, offering a very competitive rate to bothhigh and low end savers.

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Term Deposit:MCB Term Deposit offer attractive short to mid-term investment options withflexibility, convenience and security. With various tenor options available,customers can choose one that suit their needs. This is combined with differentprofit payout options and the added facility of being able to avail credit facilityagainst their deposits.

MCB Online Banking:MCB has a fast growing network of 1100+ online branches in the countryproviding customers real-time online transaction facilities.

MCB MNET:MNET is an electronic inter-bank connectivity platform for online transactions onATM and other remote banking channels. It offers other value added servicesthat include a portfolio of e-banking and payment system products as well asmanagement and day-to-day operations of the same. Members include 10 localand foreign financial institutions enjoying ATM sharing and value added services.

MCB Cash Management:Cash Management provides a wide range of value added services to largecorporations through its vast network of online branches. Our structured andcustomized products enable our customers to realize their sales proceeds swiftlyfrom all over the country, supported by real-time MIS. Cash Management alsoprovides payment solutions through MCB network and through third parties andcustomized solutions for dividend payouts.

MCB Channel Financing:MCB Channel Financing provides working capital facilities to dealers andvendors of selected companies under a structured product program. This productenables our customer’s dealers to leverage themselves and increase theirbusiness capacity with their respective business partners.

MCB Local Rupee Drawing Arrangement:Transaction Banking Department at MCB, provides Local Rupee DrawingArrangement, a product for small banks and financial institutions to use our vastbranch network platform to make payments in areas where their own branchnetwork does not exist, thus extending their reach nationwide.

MCB Home Remittance:MCB Home Remittance provides a seamless inflow of foreign remittancescredited in the beneficiary’s account within minutes. Cash payments can also be

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made at our designated branches on behalf of Xpress Money, Samba (SpeedCash Now), Money Gram and My bank Money Express Malaysia, along withcash payments from other correspondents from all over the world under thebrand name of MCB Fast & Easy.

MCB Corporate Financing:MCB Corporate Financing provides access to diversified financing options,including working capital loans, term loans, trade finance services andinvestment banking.

MCB Project & Structured Finance:MCB Project & Structured Finance involves financing complex projects, usually inan SPV structure, where the loan is tightly structured around the cash flows, risksare allocated amongst various stakeholders, and there is limited or no recourseto the sponsors.

MCB Syndicated Loans and Debt Capital Markets:MCB Syndicated Loans and Debt Capital Markets involve arrangement,underwriting and placement services for significant financing requirements bylarge corporate and institutional clients to other financial institutions or throughthe debt capital markets.

MCB Quasi Equity/Hybrid Instruments:MCB Quasi Equity/Hybrid Instruments structure and place a category of debt thathas some characteristics of equity such as being unsecured, subordinated orwith a potential equity upside. MCB Equity Capital Raising MCB Equity CapitalRaising relates to raising capital for our clients by offering common or preferredequity to public or private investors, through initial public offers, offers for sale,rights issues and private equity placements.

MCB Advisory Services:Financial and Capital Raising Advisory provides our clients with financial advisoryservices, commercial structuring support and access to capital resources to helpcompanies successfully finance their business/project.

MCB Islamic Banking:With the help of Shariah specialists, lawyers and professional commercialbankers, MCB Islamic Banking provides Riba Free and Shariah Compliantproducts and services both on the liability and asset side of the statement offinancial position to various customers of all demographic segments with its

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presence in a growing number of cities. MCB’s Islamic Banking products areavailable to cater the need of Working Capital, Capital Expenditures,International/Local trade and consumer’s requirements.

MCB Agri Products:MCB is committed to the farming community to support their national objectivesof self-sufficiency & food security to the people of Pakistan. Dedicated andspecialized staff, supervised by the Agri Credit Division, is posted in lendingbranches to cater for strong business relationships & facilitation. The bank’sextensive branch network in all the provinces and diversified product rangeextends our reach of agri credit facilities to farmers engaged in any type ofactivity, encompassing both crop & non crop sectors.

MCB Privilege:A first from a local bank, MCB Privilege through its dedicated, world classPrivilege Centers offers a higher level of personalized services, more rewardingin-branch experiences and a wide array of deposit and investment products thatare tailored to meet the financial expectations of our affluent clientele. Asmembers of MCB Privilege, customers experience unparalleled advantages thatput them ahead of others. MCB’s dedicated Privilege Centers await to welcomeyou in Karachi, Lahore, Islamabad and Multan, with plans to expand to morelocations.

MCB Salary Club:A payroll solution designed to make life easy; it simplifies all the monthly payrollrelated banking needs of employers and opens the door to a world of specialoffers for employees. Salary Club provides the convenience of having anextensive range of financial services available to employees at their place ofwork.

MCB Investment Services:Make the most of your wealth with investment opportunities that match yourunique financial aspirations. MCB Investment Services offer distribution of mutualfunds managed by the leading fund managers of Pakistan. We can suggest theproducts most suited for your needs, or work with you to create a personalizedsolution 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 Cardsfocusing on providing, superior services, travel privileges & shopping pleasure. Italso offers comprehensive insurance & installment plans, reward points and SMS

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alerts that give a different feel to the world of credit cards. These unique featuresinclude i-revolve, which makes variable mark-up rate available to customersallowing them to repay at affordable rates.

MCB Car4U:MCB Car4U not only gets you a car of your own choice but is also affordable withcompetitive mark-up, flexible conditions, easy processing and above all, nohidden costs.

MCB Instant Finance:With MCB Instant Finance, you can get a loan instantly at any MCB branchagainst liquid collateral at competitive pricing.

MCB Smart Card:MCB Smart Card opens the opportunity to have access to your funds via multiplebanking channels. It enables you to withdraw cash from ATMs across Pakistanand around the world, transfer funds, pay utility and mobile bills and register formobile and virtual banking services.

MCB Rupee Travelers Cheque:MCB Rupee Travelers Cheque is the best and safest alternate way of carryingcash. It can be used by travelers, businessmen or by the general pMCBic inmeeting their day to day cash requirements while they travel. It is a safe andsecure way to make payments because it gives the purchaser security that evenif the cheque is lost it can be refunded.

MCB ATMs:MCB has one of the nation’s largest ATM networks with 500 ATMs covering 110cities across the country and still growing. MCB ATMs give you a 24-hoursconvenience of cash withdrawal, mini-statement, utility bill payments, mobile top-ups, funds transfer services and much more.

MCB Mobile ATM:Through our MCB Mobile ATM we allow for convenient world class bankingservices. Our innovative MCB Mobile ATM van ensures that we offer our serviceswherever you are, be it concerts, fairs or any other occasion/special event.

MCB Lockers:MCB Lockers are the best protection for your valuables. Lockers of differentcapacities are available nationwide. MCB SMS Banking with MCB SMS Banking,you can bank on your fingertips. Once you’re registered onto the service you canSMS anytime to get account information.

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MCB Full-Day Banking:Enjoy the convenience of extended banking hours from 9am to 5pm, includingSaturdays at MCB Full-Day Banking branches across the country.

MCB Bancassurance:Combining the best of banking and insurance solutions, MCB Bancassurancehas created a one-stop shop for all your financial and insurance needs. Whetheryou want to save for your child’s education or marriage, for the security of dignityafter retirement or gaining maximum return on savings, MCB Bancassurance hasa plan for you. You can also buy instant insurance coverage through your mobilewithout any medical assessment.

MCB Call Centre:The simplest way to bank is with the new enhanced 24/7 MCB Call Centre, whichblends innovation and convenience to provide banking services that go beyondexpectations. MCB Call Centre enables you to manage your VISA Credit &ATM/Debit Cards, confirm account balances & view last 5 transactions, payutility/mobile phone & MCB Visa Credit Card bills, topup your mobile, transfermoney within MCB network accounts and register complaints. Most importantly itprovides you with our very own banking consultant to discuss your financialneeds and requirements. Simply call at 111-000-622 and we’ll do the rest.

MCB Mobile:MCB Mobile is a quick easy and secure way to recharge mobile phones, transfermoney, pay bills and do much more. Visit the nearest MCB ATM or call 111-000-622 to register and logon to www.MCBmobile.com using your mobile phone tostart transacting.

MCB Virtual Banking:MCB Virtual Banking Service is a convenient way to access your account(s)24/7. It is secure, free of cost and lets you do your banking whenever andwherever. This service allows you to transfer funds, pay utility/mobile bills, set upstanding order instruction, download account statement and much more.

5.2.5 PEST Analysis:The "Political, Economic, Social, and Technological analysis", it describes a

framework of macro-environmental factors used in the environmental scanning

component of strategic management. I explained these two types of analysis in

detail. The pest analysis is that analysis which stated that how much firm

organization affects from the factors as pest

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Political:As we know that MCB, is acting under provisional government so the bank focus

on the agriculture and provides variety of packages to the formers, through this

development the poor former may be establishing their lives by the loan provided

by the MCB. Government has also worked in the field of agriculture.

State bank of Pakistan has decreased its reserve requirement from 8% to 6%,

which is helpful for all banks. Improvement in law and order can attract both the

local customer & the foreign investors. Government of Pakistan through SBP

establishing the rule for those people that are import luxury goods from out of the

country, the rule are impending to discourage those peoples and to imply the tax

on import by this encouraging the local industry. Political instability affects the

economy ultimately affects the banking sector as well the margin going shrinks.

Economical:

Social:Visible confusion in society is raiding people to take out their investments and

valuables from banks as there are huge chances of banks liquidation. There was

trend in few years ago when so many people are opening accounts, but now this

trend has decreased to some extent. The scope of banking sector going decline,

because of the need and the salaries of the bank are not as much, which fulfill

the requirements of the new talent so everyone want to switch from banking

sector to the other.

Technological:Advanced computerized and control system.

The inflationary pressure influence the economy of Pakistan, and the decreasing

trend in the new business, people prefer to invest in the out of the country and

due to this the market share of banking sector going reduces day by day. Energy

crisis is the main problem of our country, because there is a huge demand but

the supply is less.

Economic instability prevailing in worldwide financial markets and investors are

losing their confidence in banks.

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Growing network of online branches of the bank in the whole country.

5.2.6 Contribution of MCB toward economic development:Majority of the rural setup in Pakistan lacks necessary exposure to financial and

modern services. MCB has 427 rural branches where we offer customized

product menu to suit and meet the requirements of these people. MCB is

committed in enhancing knowledge and understanding of banking business vis-

à-vis spreading and exploring neglected regions of the country.

5.3 Organizational Structure:

5.3.1 Organizational Hierarchy chart:

Board of Directors

Mian Mohammad Mansha Chairman

Mr. 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

Mr. Aftab Ahmad Khan Director

Mian Umer Mansha Director

Mr. Muhammad Ali Zeb Director

Dato' Seri Ismail Shahudin Director

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

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5.3.2 Number of employees:

5.3.3 Main offices:Head office and the main branch of MCB is in Gulberg 3, Lahore and Egerton,

Lahore respectively. The is divided into seven regions.

Each consisting number of branches.

Lahore region

Faislabad region

Gujranwala region

Rawalpindi region

Karachi/Quetta region

Multan region

Peshawar region

Rests are the branches working under these regions. Which are almost 270 in all

over Pakistan.

5.3.4: Introduction of all departments:MCB is working as a Government bank but it is not fully government bank, The

MCB working under the provisional government of Pakistan. MCB offers variety

of products and these products or offering not handling by the one leave of a tree

mean every aspect controls by the different department. The proper

departmentalization provides the path towards growth and MCB is one of the

examples of that growth.

Each branch is divided into the following departments:

Cash department

Remittance department

Foreign exchange department

Credit department

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Cash Department:The main function of this department is Payments and receipts. It collects and

pays money to the customers, on behalf of their account, through cheque or any

other negotiable instruments. There are three main functions of the cash

department:

Clarification

Payment

Receipts

Clarification:The clarification is the duty, responsibility or the safe guard of the cash officer,

when the account holder come at the cash counter and holding cheque so cash

officer must check the posting of cheque , sign, stamps, token number and

transaction number which is the sign of proper posting or debating of check from

the account holder. Another main aspect of verification includes checking of

proper date, amount, endorsements, such as issue stamp, clearing stamp and

backside stamp, and signature. After proper verification of cheque, the payments

have issued.

Payment:The cash officer pays the cash against the cheque or negotiable instruments.

The department receives the cheque and after their clearance, cash is issuing to

the check-holder.

Cash officer paying cash to only those which have the cheque or if the customer

is not a account holder then he or she must have he ordered cheque, officer

paying the cash before checking or clarify the receiver of that cash. At the period

of day end cash officer must balance their cash in hand with the balance of the

system.

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Receipts:Another duty of cash department is to receiving the cash from the account

holders, or any one that want to deposit money in the account. In the receipt

section, most of the receipt goes through the accounts of the MCB. The cash

receipts are done in two forms:

Collection of money from customers in their accounts

Collection of utility bills

Collection of money from the customer in accounts:The collection of cash from the customer it is surely credited in the account of

holder, because account holder save their surplus money in their account and

depositing of cash is only trough the prescribed receipt on which account holder

mentioning the account number type , date, contact number and signature of

depositor.

Collection of utilities bills:MCB also offers the facility of collection of utility bills. The customer can deposit

electricity, gas, and telephone bills through the bank. The bills are receiving,

stamping and kept in record. The record are base on the system posting which

deals by the cash officer, at the end of the working hour cash officer must post

that bills in the system and through credit voucher bank transfer the bill amount

to the corresponding account.

Remittance Department:Remittance department is relating to funds transferring. There are two main kinds

of remittances. These are:

Foreign remittances

Local remittances

Foreign remittances:Foreign remittances means the money transfer from one country to the another,

or we can say that, the family or the family members those are out of the country

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and want on the way to remit their money to the families in Pakistan, so they use

that facility and MCB offers facility which make easy that remittances. These

modes includes Express Money transfer, Habib Express, Western Union, Ansary

International etc these are the mode of system from which bank remit the money

from one country to the another and the other modes are foreign demand drafts,

foreign telegraphic transfers, and online transactions.

Local remittances:Local remittances are way of transfer money from one place to another in the

country it includes pay orders, demand drafts, telegraphic transfers; traveler’s

cheque, and mail transfers. All these remittances can be categorized into four

main kinds:

Demand Draft

Pay Order

Telegraphic Transfer

Mail Transfer

Demand Draft:Demand Draft is the negotiable instrument use in the transfer of money from one

place to another in the particular country and this draft can be use from one bank

to another, but this instrument pay only by the drawer bank. This is issuing by

one branch and payable at other branch of same bank or other bank’s branch.

Pay Orders:Pay order is a financial instrument use for the transfer of money with in a city for

the specific purpose through paper document because the issuance and paying

of instrument doing by the same branch.

Telegraphic Transfer:Telegraphic transfer is the mode of remittances in which customer want to

transfer their money from one city to another, but in this type of remittances the

document will not move from the drawer bank to the payee bank the information

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or the transformation convey through the telephone. It is a facility providing by

the bank, through which a customer can send or transfer their amount

immediately.

There are two kinds of telegraphic transfers:

Ordinary Telegraphic Transfer

Telegraphic Transfer

Ordinary Telegraphic Transfer reaches to its destination after two days when it is

dispatching. For ordinary TT only two vouchers are prepared:

Commission Voucher

Postage Voucher

Telegraphic Transfer reaches to its payee immediately because the payee

branch is informed immediately through telephone and fax. For this, three

vouchers are prepared:

Commission

Postage

Telephone charges

Foreign Exchange Department:The department of operations is mainly working in the Pak Rupees and the

foreign Exchange Department is working it like the other department. Its means

that the opening of account, in cash of the currency, loaning, financing, investing

etc but the main difference between the foreign exchange department and other

department is the currency, in this department all activities related with the

foreign currency, the account must be open in foreign currency and deal in the

foreign currency as well.

In foreign exchange department, the major things to be dealt with are:

Foreign Currencies Deposits

Foreign Trade

Foreign Exchange Rate

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Remittances

The foreign exchange department deals with the foreign currency accounts. It

deals in following main foreign currencies:

US Dollar

UK pound

Euro

For Account opening minimum balance for each of these currencies is 500 in the

respective currency. The accounts in which foreign currency accounts can be

open are PLS, Current Account, and Fixed Account etc. These accounts are

opening in the currencies other than Pakistani currency.

Kinds of Foreign Exchange Transaction:The foreign exchange transactions are usually put into four categories:

Current transactions

Capital transactions

ST financial transactions

Working balances

Current Transactions:As regards the current transactions, they are dividing in two classes.

Visible Trade:The visible trade is that type of business activity in which import and export of

goods physically, some time it known as merchandizing.

Invisible Trade:The invisible trade is relating with the trade invisibly as the payment made to or

received from the other country for the shipment, for the purpose of business,

banking, insurance services received or provided to them. The remittances,

profit-bearing business all comes in this category.

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Capital Transactions:Capital transactions are the transaction in which obtaining the aids, grants, trusts,

long-term loan or any sort of help by the other country. Then the bank operated

by the capital or huge transaction.

Short term financial Transaction:If any customer want to invest in the other country or some time bank itself

investing in the other country because of the fluctuations in the currency or the

instability in the political and economical system of country so the bank or the

customer invest in other country for 3 months minimum and the bank help in the

transaction.

Working Balance:The commercial banks sometimes keep their balances in the outside of the

country due to the economical and political instability the economy suffer the loss

then bank store the money in the other country and these type of financial

activities provides them a profit which is basic need of nay investment or financial

institution.

Imports:Imports mean bringing commodity into Pakistan from outside, by sea, land or

area. The import of any goods or item bank plays a vital role between the

transaction they help to the customer through opening of LC and other mode of

remittances, which gives them the secure way. However, SBP discourage the

imports of luxury item by putting the taxes on the imports these help to

encourage the local companies that they manufacture and sale in their own

country.

Credit Department:Credit department provides the plate forum to those wants the finance from the

bank sometimes banking or credit office focus some factor while providing the

loan to those people. these loan are categorized in two areas as

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Criteria for Granting Loans

Advances

When the customer comes at the branch premises and want to credit then the

concern officer focus on the come criteria that must be fulfill by the customer

these criteria includes the customer must have sound mind, having well and

stable financial position, nor any other obligation or default of any bank, having

good character and payback capacity.

5.3.5 Comments on the organizational structure:

If the hierarchy is more complicated there must be more chances of collapsing

the information between the different managerial groups and as a result downfall

in the cultural values of the organization. In these types of structures that MCB

have employees’ feels comfortable in describing their problems to their seniors

for assistance in many issues.

By examining the organizational hierarchy chart it is obvious that the hierarchy is

not complicated but it is simple. More simple structure results in more efficiency

of quality work and also the well communication of the orders from top to bottom

of the hierarchy. These types of the structures provide an ease in transmitting

different type of information through different managerial levels without any

ambiguities.

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Part 2:

Internee Work:

Introduction of branch:Bank MCB limited

Branch code: 1403

Branch name Chamber of commerce and Industry building

City Sialkot

Phone no. 0524274827

Fax no. 0524262938

In summer I complete my internship from MCB chamber of commerce & industry

building branch. Mr. Muhammad Sarwar held the post manager in that branch

he is very nice personality cooperative with branch staff, regular and also has

very good manager qualities. Mr. Mukhtar Ahmad held the post of operation

manager in that branch. He very competent person to manage the overall

operation of the branch he also follow the time table of banking working hours.

He has a lot of knowledge and experience in general banking. Mr. Rashid held

the post of asset manger he deal in advances he has very grace person and

Mr.Sikandar zulifiqar held the post forex manager he deal with customer in very

good way.

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Hirarchy of branch:

Manager

AssetManager

OperationManager

GeneralBankingofficer

CashDepartment

ForexManager

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Supervisors during internship:First of all I am starting my practical work during internship from the CSO’s post

the CSO in MCB chamber of commerce and industry building branch is held by

Miss Mehreen. She is very hardworking lady she give me precious kind of

knowledge about the post of customer service officer. Second phase of learning I

am supervised by Miss Asma. She is very kind personality and held the post of

general banking officer. She provides me very useful knowledge about clearing

department. Phase three I am supervised by Mr. Mubashar Hussain he did his

MBA from university of Gujrat. He held post of remittance and give me very depth

knowledge about remittance department. At the end did work under the

supervision of Hafiz Sheraz. He is senior cashier in MCB CC&I branch. He is

very nice personality and gives me a lot of instruction about handling the cash

department.

First week:Date Day Timing Task

Aug 27-2012 1st day 9:00 AM to 5:00PM Observe customer dealing

Aug 28-2012 2nd day 9:00 AM to 5:00PM Filling of pay in slips

Aug 29-2012 3rd day 9:00 AM to 5:00PM Filling of pay in slips

Aug 30-2012 4th day 9:00 AM to 5:00PM Filling of online transfer slips

Aug 31-2012 5th day 9:00 AM to 5:00PM Filling of online transfer slips

Customer service department:During this summer I did my internship in MCB chamber of commerce and

industry branch Sialkot. Where I started my internship from the customer service

department in that bank the post of customer service officer is held by Miss

Mehreen. At very starting day I only observed the customer dealing whole day.

Customer dealing play important role in success of every organization. Because

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every customer first of meet with customer service department in bank and

branch first impression on customer must from the side of customer service

officer. After that someday I take on the seat of CSO and dealing with customers.

During that period I fill deposit slips that give me knowledge about the deposit

methods.

On deposit slip I write the branch name, branch code, name of the account

holder under the heading of account title, complete account number, amount in

words, amount in figure and also write currency type either the deposit amount

consist of 500 rupee note or 1000 rupee note etc. then on deposit slip put the

sign of thumb or signature of the customer. I also fill slip of credit cards these are

totally different from deposit slip on these slips I write the name of the card holder

under the heading of customer name, card number, and amount in figure and in

word that must be same in both the signed by the customer and pass to the cash

counter for collection. I also give duty to operate the photo copier machine this

generally use for copy of CNIC of the customers that come for online and

account opening and had not copy of their CNIC. I also fill the online slips this

slip is same as deposit slip but it has other formalities like if the amount is more

than 50000 rupee then a form is also filled that require the t national identity card

of client, purpose of transaction, nature of transaction and who is the person to

whom that should receive the amount. For the purpose of this form is to control

illegal transformation of money. The rules of State Bank of Pakistan relating to

internee are very stick due to this they not give the control of online in the hand of

internee’s. I only involve in manual work of bank during my internship but the

staff of that branch is very lenient with me they orally tell me about the system

how to operate it. I also performed the duty to calculate the withholding tax of the

customer’s account. These calculate for the purpose of preparing tax certificate

to the customer that they use to prepare their tax return. I also performed the

responsibility to giving the account statement to customers.

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Second week:Date Days Timing Task

Sep03-2012 1st day 9:00 AM to 5:00 PM Account opening

Sep04-2012 2nd day 9:00 AM to 5:00 PM Account opening

Sep05-2012 3rd day 9:00 AM to 5:00 PM Account opening

Sep06-2012 4th day 9:00 AM to 5:00 PM Account opening

Sep07-2012 5th day 9:00 AM to 5:00 PM Account opening

Account opening:During second week of my internship I learn about the account first day at

account opening whole day I observed the process of account opening. Miss

Mehreen give me a filled opening form tell me to check the process of account

opening form she also said me the rules and regulation of states bank are very

stick. In that branch the account opening target assigned by the main office of

MCB which normally 70 to 100 account in a month. For this she calls to the

customer and tell him about the MCB positive point also facilities of MCB.

Account opening form of MCB many parts that are describe as bellow:

Type of accounts (individual, business, partnership and company a/c etc.)

Nature of account and currency

Personal information of customer

Detail of other banking relationships

ATM card

Know your customer (KYC)

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Basic banking account is basically opened by the salaried persons this account is

open with 100 rupee after approval of head office customer is able to deposit

amount in their account. The process of saving account is same as the basic

banking account but the basic banking account has fewer turnovers. Foreign

currency account is require to $500 dollar it also require that customer should

have Pak currency account with the same branch and also show the purpose of

opening foreign currency account.

Third week:Date Days Timing Task

Sep 10-2012 1st day 9:00 AM to 5:00 PM KYC (know your customer)

Sep 11-2012 2nd day 9:00 AM to 5:00 PM KYC (know your customer)

Sep 12-2012 3rd day 9:00 AM to 5:00 PM Issuance of cheque book

Sep 13-2012 4th day 9:00 AM to 5:00 PM DAK receipt & dispatch

Sep 14-2012 5th day 9:00 AM to 5:00 PM Waste of cheque book

Know your customer:At the start of my third week during my internship Miss Mehreen tell me about

know your customer form that she filled for customers new account opening.

Know your customer is form that holds the detail personal information of the

account holder. This formality is applied by the state bank to control over money

laundering. This form holds the detail source of income of an account holder. In

this form detail about the residency of the customer either his accommodation is

his personal or he live in rented house. This form has brief information about the

account holder’s business (what kind of business is run by the account holder)

either he run sole proprietorship, partnership or company. This KYC consist of

detail past history of customer dealing with banks. This information help to bank

for making decision about giving the loan to the customer and save the bank

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from any unseen situation that give loose to bank. Know your customer give

more reliable information about the customer to bank. This rule is run after the

scandal of money laundering by khanani & kalian. This gives the information

about the transaction of the account. This form is filled by customer service

officer during the process of completing the form of account opening. This form

also holds the information about the dealing of the customer with other branches.

An exemption to the customer when it also a financial institution. A customer

account opening process requires checking the following things:

Computerized national identity card is valid (not expired)

Presented document are original (like as letter pad of business etc.)

Two time signature in specimen signature card.

All evidences are consistent (signatures at account opening form on

specimen must same)

If branch manager not available then account opening form verified by the

operation manager

Apply for check book:When the approval account opening is delivered by head office then customer

service officer inform to customer through call then customer come to the branch

and deposits some amount in his account and then apply for his cheque book.

Issuance of cheque book:After two to five days of applying the cheque book the cheque books DAK is

received by head office and then also customer service officer call to customer

for giving them information about their cheque book. And they come with letter of

thanks and get their cheque book for this process bank maintains a register with

the name of issuance of cheque books. Customer service officer must record of

distribution of cheque book.

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DAK receipts and dispatch:As all process banks also maintain a register with the name of DAK receipts.

Customer service officer must record of every post receipt or dispatch and their

detail from where post is delivered and also detail of all dispatch to whom this is

delivered.

Wastage of cheque book:Miss Asma tell me about the cheque books that yet not received by customer up

till period of six month then bank is liable waste the cheque books because he

must audited if bank does not wastes these cheque book auditor require the

report. The wastage process of cheque book is save the account number, name

of the account holder and also save the cheque no and after compellation of this

process bank should record it in waste of cheque book register.

Fourth week:Date Days Timing Task

Sep17-2012 1st day 9:00 AM to 5:00 PM Account closing & Dormant

Sep18-2012 2nd day 9:00 AM to 5:00 PM Clearing

Sep19-2012 3rd day 9:00 AM to 5:00 PM Clearing

Sep20-2012 4th day 9:00 AM to 5:00 PM Clearing

Sep21-2012 5th day 9:00 AM to 5:00 PM Clearing

Account closing and account dormant:During the fourth week of my internship Miss. Mehreen tell me about the account

closing and a/c dormant. When one person want to close his a/c he draw cheque

on his branch with the equal amount that he has in his a/c. when the cheque is

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presented at the counter of the cashier and bank make payment of that cheque

after charging process fee to the customer. And she also tell me about the a/c

dormant when a person not operate his a/c within the time period of the six

month. For reactivation of a/c the customer must fill the a/c dormant application

to the branch.

Clearing department:After completing my tasks in customer service department that are necessary

require for operation manager change my desk and pass me from customer

service department to clearing department in this department I am supervised by

Miss Asma who hold the general baking officer seat at MCB CC&I branch

Sialkot. She teach me about the clearing of cheques when cheques are

presented at the counter then she sort the cheques and differentiate the cheques

either it is cheque of collection, cheque of transfer or cheque of clearing. And it is

the responsibility of the clearing officer to take proper care to the cheque that she

receives from the customers. After completion of the process finally the amount

of cheque added to the a/c of customer who present the cheque at clearing

counter.

Cheque of transfer:When the presented cheque is from the drawer of the a/c that is in the same

branch then it will treated as cheque of transfer i.e. both a/c’s are in the MCB

CC&I branch then it must be treated as cheque of transfer. This type of cheque

transfer from one a/c to another a/c after check in the balance and stumping it.

This is requiring the transfer stump.

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Cheque of clearing:When the presenting cheque is from the any branch of any bank the t cheque is

treated as cheque of clearing. It is responsibility of the clearing department to

take care to cheque. These cheques are forwarded by branch to their main

branches and main forwarded it to the state bank’s clearing department to verify

either this a/c has amount and also transfer the money from that bank to the

MCB. When this process is successfully complete then the amount transfer to the

presenter a/c. when the cheque of the MCB’s customer from other for verification

in MCB that is called inward clearing wise versa when the cheque of other

transfer to that bank for clearing from the site of MCB that is called outward

clearing the clearing of chques further divided into two categories that are

described below:

General clearing (when the cheques are cleared in normal clearing time

that are known as general clearing)

Same day clearing (when the cheque is cleared in single day it is only

possible when cheque is from the bank branch situated in same city)

Clearing officer must care during the receiving the cheques the date of

cheque, a/c number, signature of drawer and payee and must fill the

deposit slip for cheque if above mention points are not fulfill then cheque

going to dishonored.

Cheques of collection:When the presenting cheque is from any branch of MCB then will be treated as

cheque of collection. Either it is situated in Sialkot or out of Sialkot. This cheque

sent to main branch through TCS. When the process is success fully completed

then it transfer to the a/c of that person who present the cheque. The register of

collection of cheques has same specimen of column as the register of clearing.

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Return memo about cheques:When cheque has any problem that is presenting it attach with a document that

is called cheque return memo. The cheque return memo has described these

component name of the branch and code of branch in which the a/c of cheque is

maintain. Date of the cheque, a/c number, account title and also the reason for

which the cheque is return. There are following reasons for the cheques are

return:

Payment stops (when the payment is stopped on the request of the a/c

holder)

Amount differ (when the amount written on cheque is different in word and

figure)

Mutilated cheques (when the condition of cheque is very bad)

Post dated cheques (when cheques are presented after six month)

Stump of clearing (when the stump of clearing not put on cheque)

A/c closed (may the a/c is close)

Incomplete cheque

Fifth week:Date Days Timing Task

Sep 24-2012 1st day 9:00 AM to 5:00 PM Rupee traveler cheque

Sep 25-2012 2nd day 9:00 AM to 5:00 PM Remittance

Sep 26-2012 3rd day 9:00 AM to 5:00 PM Remittance

Sep 27-2012 4th day 9:00 AM to 5:00 PM Remittance

Sep 28-2012 5th day 9:00 AM to 5:00 PM Remittance

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Fifth week in my internship:During the fifth week of my internship period I am dealing with rupee traveler

cheques this assignment assign me for the site of Miss Asma she give me a brief

introduction of rupee traveler cheques. She introduce me the feature of rupee

traveler cheques these are easily available in whole Pakistan about 900

branches of MCB deal with rupee traveler cheques. The safety of rupee traveler

cheque is much higher than liquid cash and commodity like as gold and silver.

These are easily convertible into cash for any branch of MCb that deal in rupee

traveler cheques. It has also the features as securities like as bond and common

stock. These are available in 5000 rupee and also in 1000 rupee and these are

valid until these are used by the person who purchased it from his bank. It

necessary for the buyer must have the a/c with MCB and only available from that

branch in which he has his a/c. the clearing process of rupee traveler cheques

require the stump of clearing. It must have the signature of the person who sell

out it and the signature must match with the signature that he put in bank at the

time of issuance otherwise its clearing canceled by the clearing officer. It must

have the stump of endorsement on rupee traveler cheques, signature of IBS and

should carefully check it either it is genuine or not.

Department of remittance:This dept give the service of transforming of money from one place to another

place to a/c holder of MCB people use the remittance department for transferring

money from one place to other place for safety purpose. Demand draft issued for

transferring money within the city and the pay order is used to transferring money

from one city to other city like from Sialkot to Lahore. Customer carry the demand

draft and pay order instead of cash the most commonly used instrument in

remittance department are given bellow.

Pay order

Demand draft

Cross branch transaction

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Demand draft:Demand draft is written instrument that is drawn by one branch on other branch

of the same bank or order to the other branch of same bank to pay a certain sum

of money to the particular person for this purpose the person who want make

demand draft must give an application to the bank. The payment of demand draft

by the mode of cash or by cheque to the brawer bank by the person who show

his willingness to make the demand draft it must be recorded in the remittance

registered and also signed by the person who wants to make it. Then the

demand drat is making by the remittance officer after checking/ testing his

application. There are following parties involved in demand draft:

Purchaser (the person who want to purchase the demand draft from the

bank)

Drawee branch (the bank branch that is responsible for making payment

to the beneficiary)

Payee (The person who has right to receive the money from the drawee

branch)

Drawer (the bank branch that make the demand draft or give the odder to

the other branch )

The important points for making payment of demand draft it is responsibility of

drawee branch to verified by the bank branch that give the order of giving

payment of demand draft either it is genuine or not . checkout the serial no. of the

demand draft if it is applicable and also check the amount in words and amount

in figure are same if same then it will be treated as valid otherwise it go to

dishonored. Also check the name of beneficiary and amount. When it is proof

from all aspects then drawee bank make payment of the demand draft and

entered it into demand draft registered.

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Clearing process of demand draft:The clearing of demand draft must require the following process in all branches

of MCB bank limited in whole Pakistan.

Crossing stump( it is necessary for the drawee bank to put the clearing

stump on the demand draft)

Endorsement stump (endorsement stump that show how payment is made

it from the site of drawee bank)

Verification of signature (it is duty of drawee branch to verified the

signature )

Pay order:A pay order is also a written instrument just likes as the demand daft but it is

drawn on the branch of the same bank in other city. It also contains the name

and address of the person who is the payee of instrument. Pay order is also

drawn by the bank branch on the same bank branch in other city. Pay order can’t

be transferable it is only paid to the person whose name and address is written

on pay order it is not paid to the any bearer of pay order. Pay order is only

payable when it has the revenue stamp put by the clearing. Pay order does not

issue to the person who not meet the age of majority. Parties that are involved in

pay order are describing bellow:

Buyer (the person who make the pay order from his bank)

Drawer (bank branch that involved in making the pay order or give the

order to the other branch of same bank in other city)

Payee (the person that have right to receive the money from the drawee

branch)

Drawee ( bank branch that is liable to pay the amount of money to the

payee)

Cross branch transaction:It is a process of transferring money from one branch to the other branch of the

same bank. In this process there is no constraint of city either branch is situated

in the same city or it is situated in other city. The amount of money debited from

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the a/c of payee and advice him to receive the money from the specific branch of

a bank with proper identification. The cross branch transaction can’t be

negotiable. There are following parties involved in cross branch transaction:

Applicant (the person who apply for it)

Drawer branch (the branch that make the cross branch transaction)

Drawee branch(the branch that is liable to pay the amount of cross branch

transaction)

Payee (the person who is beneficiary in this case)

Sixth week:Date Days Timing Task

Sep 24-2012 1st day 9:00 AM to 5:00 PM Payment and Receipts

Sep 25-2012 2nd day 9:00 AM to 5:00 PM Bills Received

Sep 26-2012 3rd day 9:00 AM to 5:00 PM Online Services

Sep 27-2012 4th day 9:00 AM to 5:00 PM Prize bond dealing

Sep 28-2012 5th day 9:00 AM to 5:00 PM Prize bond dealing

Cash department:At the last week of my internship I did work in cash department where I am

guided by Hafiz Sheraz senior cashier at MCB CC&I building branch. He tells me

how to handle cash. Cashier is liable to meet the deposit and withdrawal at the

end of each day that is very much difficult but he handles it in very good way.

This department play very necessary rile in banking industry they generate fund

for lending by deposit and provide money to the customer when they want to

withdrawal through cheques. This department provide different kind of services to

the general public and reward of all these services the generate revenue for bank

cash department provide services to different sectors like as collection of utility

bill. Cash department also involve in dealing of sale and purchase of prize bond

MCB purchase these bond from the state bank and then sell it to general public.

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Cash department also play an important role in online banking services to

general public. MCB this service to his customers as well as general public this is

done through by cheques and also by cash.

5.4.6 Summary of learning:

5.4.6.1 Skill and qualification:I have got very useful knowledge about banking sectors. First of all practically I

learn about customer dealing the customer dealing is very necessary in the

success of every organization. I have got confidence in customer dealing during

my internship. I have lot of information about accounting opening process that is

very helpful for me in my practical life. I have experience of operating the photo

copier machine during my internship. Before my internship I had no experience

about the fax machine during internship I have to use fax machine that is very

help full for me in my future life. I get the knowledge about filling of account

opening form and also get very keen knowledge about the account opening

process and also aware about the policies of state bank of Pakistan about

account opening process like as the purpose of filling KYC (know your customer )

form. I am also getting the skill working with different people that are senior for

me in age and also in education. I have experience of checking vouchers during

my internship that are very help full for me in my future of my educational life. I

have not skill to control work burden before my internship but during my

internship I get high stamina of working continuously. Before internship I had no

knowledge about clearing that is very necessary for a business student I get this

during my internship. I also get knowledge about remittance rupee traveler

cheques and also what type of method use to control work burden.

5.4.6.2 Responsibilities:At very first days in my internship process I am involve in customer dealing in

this process I fill deposit slips and cheques. And I also did the responsibility of

photo copier operator. Many days during my internship operation manager give

me calculation of withholding tax as assignment this is required by the clients of

MCB for the purpose of submission of their tax returns. Demand draft register

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also maintain during my internship. I am also check vouchers of whole branch

during my internship that give me very keen information about the how many

stamps are require for cheque process. I did duty as CSO and get the signature

of the person new account holding. Some time I did the responsibility to fill the

deposit slips for the customers who come for deposit and for those who come for

online. Some days operation manager give assignment for binding of the account

opening form and also said for checking the account opening form and

differentiate the form that are incomplete from the completed forms. During my

internship the audit of branch is conducted by the auditors of MCB and in these

days operation manager said for checking the voucher of whole day and check

them from all aspects either they are signed by all required authorities during

their process. Someday our branch super-dent of cashier gives me assignment

of checking signature of rupee traveler cheques. And the last assignment during

my internship from the side of assets manager for arrangement of files of

customer who got loan from the MCB CC&I branch this responsibility did by me

for three days.

5.4.6.3 Impact of internship on future career plans:My internship gives me lot of benefit experience and much newness that do not

know me before my internship. I did not experience about banking industry

before my internship I got lot of experience about banking job. I enjoyed my

internship very much and my internship influences me to follow banking job after

my study life. I see the responsibilities of bank employees they done their work

but after that they are totally free from tensions. But on the posit side it give me

experience of dependent job such as casher not able to leave the cash counter

up till closing of all day balance of receipts and payment if he failed to match 5

time in both he can’t able to leave the bank. Like as casher every employee

bound to close all day’s activities performed by him during whole working day.

These point are influence me against the bank job and force me start my own

business because in personal business everyone is free he do his job with his

willingness. And also enjoyed the huge as compare to dependent employee. The

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social life of an employee also bonded because he go everyday for his job if

absent from his job then boss verify by him why he is not on his job today. The

internship at MCB will very helpful for me in future career because MCB is very

large organization that helps me to achieve my job at completion of my study

career. The experience of internship also very helpful me in my future study

career because I am student of finance department in which banking knowledge

is very repeatedly use in higher education.

5.4.6.4 Relation of classroom and practical knowledge:I got many things about banking set or during my study life that is not totally but

many things that I read in books are different from the practical work just like pay

in slip about it I read in my book it read green and pink color and different deposit

slip for current account & saving a/c but in real it has single color and only single

deposit slip use for current a/c and saving a/c. I had limited knowledge about a/c

opening process in my study life but in real it much complicated for this many

formalities fulfill after that new a/c would opened like KYC form is use to check

the personal information about the new a/c holder that information also included

in a/c opening form. The knowledge about clearing department in before my

internship also limited but it also has many complications like as inward clearing

outward clearing same day clearing general clearing. The classroom knowledge

helps us in our practical life but it is very limited to perform tasks in job life.

Accounting concepts that I studied also different in practical and in books. The

management that we study in books is practically seen during my internship.

When work with our branch cashier then I see the cash control that read in

bookish knowledge. Bookish knowledge provides us direction of work but it is

enough for working in organization because different type of innovations occurs

day by day. It is very necessary to get training about that for facing the changes

in present world.

6.1 Conclusion of Internship:Internship is very beneficial for me in financial career I did my internship with

dedication hard working that give me a lot knowledge about the realty of practical

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work. Internship give me knowledge about financial department during my

internship I learn the process of lending loan to the general public. I also see the

importance of banking sector in our economy. I also learn theoretical as well as

practical knowledge about banking sector banks run their business at a very

large scale. The banking sectors is very expert in saving them from future loses.

Banks lend loan to general by checking their past credit history they secure their

lend by pledging the property of loan receiver. I learn the about the different

policies to run their business in different economic situation. That helpful for me

in future when I start my practical life in business industry. I also had opportunity

to match my bookish knowledge with real practical career. I also concluded

Pakistan’s banking industry need to improve in many aspects. The staff in our

banks is traditional and they need to improve their knowledge about the changing

in whole world banking industry. They need to train to operate online system the

online banking system is very weak. The staff in banks are traditional they are

not properly deal with employees. They had traditional view and not knew about

the task of other they only done their daily work and also have knowledge about

that. I got experience to face the customers that give me confident to face

different people in my life. The behavior of employee at closing time is unethical

with their customers. A banker is not a good banker if it not deal with their at their

mental level so, that it is very necessary for a banker to show professional

attitude dealing with their customer. I got professional attitude during my

internship that is because in my life first time I am going to work in practical field

before it only got the bookish knowledge. I got experience of practical during my

internship did my task that are new for me in my whole career.

6.2. General observation:Banking sector is very much important for supporting to economy of country. It

backbone of our industry it support to our trading, manufacturing and also for

foreign trade. The job of banking is very difficult for employees before my

internship my perception about banking job very different as compare to after the

job. Work load in banking job is obese when I did my internship most employees

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work till 9:00 o clock. The behavior of employees with customer like small scale

customer they deny for working at 2:00 pm mostly, it is for check out from the job

at time.

6.3. SWOT analysis:

Strengths: Muslim commercial bank is large organization in banking sector of

Pakistan due to this general public relay on MCB.

MCB has good reputation in banking sector of Pakistan. Because the

MCB is the first privatize bank.

Always follow the rules announce by the state bank due to this it save

from the unseen risks.

The product line of MCB is very vast they offer very attractive product to

general public and also for organization.

MCB has very lenient in customer dealing it give better facility of mobile

banking.

The policies of MCB are flexible it quickly adopt the technological changes

as well as economic changes in banking industry.

Highly qualified staff holds by MCB those work properly among customer

requirement and also have a lot of experience in banking industry.

Weakness: Majority of general public not aware about the products of MCB.

High charges at ATM card as compare to other banks.

Less job rotation among their task due to this specialty of employees low.

Lack of time management that affect the employee turnover because

employees work their task up to 7:00 PM.

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The development process is very slow.

The policy about collection of funds is not good it is more concentration on

deposit and less on their mobilization.

Opportunity: MCB has opportunity to division of their deposit in financial market.

It has opportunity to capture the financial market through its product like

as RTC’s, forex and by remittance department.

MCB has qualified staff that has ability to capture the market by better

utilization of time in working hours.

This is opportunity to adopt the information technology to improve its

customer service.

MCB has opportunity to mobilize its accumulated deposit for generating

funds.

Threats: Government policies are hurdles in expansion of business because

government imposes different types of formalities that are influence the

banking business.

High competition is also a threat for MCB different banks launch new

strategies to capture the market.

Employee union is also influence our polices about employees.

High rate of inflation affect the customer buying capability.

7.0 Recommendations:To enhance the profit of MCB to control cost for this bank should increase the

current deposits. In competitive market there are need to improve the customer

dealing of bank because customer always influence by the dealing of marketer/

customer services. There are need to follow the proper bank timing in some

banks employee stop their public dealing at 2:00 PM. Bank should improve their

training techniques and each employee have knowledge about overall banking

operation. MCB should control its expenditure because the extra expenditure

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affects the profit of the organization. MCB should control their employee turnover

when one train employee leave the organization then for that post organization

spend huge money for the training of junior employee. The employee turnover

should be reducing through offering different rewards and incentives. I

recommend the banking industry to send their employees in foreign for training

because in our country the banking system runs over very traditional methods

and techniques. Banking industry should also remove the old and lady staff and

replace it with refresh graduate because new graduate have much more

knowledge about the current world banking business. In our country the online

system is very weak and to exist in today world it is very necessary to improve

our online system. To follow the computerize system is very necessary many

bank branches in Pakistan use computerize system but the staff in our banks yet

not knowledge about operating this system. Improve their incentive to remove the

large difference in salary of higher staff and lower staff by the help of this tool the

work efficiency of lower staff must improve that directly affect the reputation of

bank. MCB must improve its customer service because customer’s first

perception is important in future relation of customer with bank. I recommend the

MCB to open their branches in foreign to expand their business. I recommend to

MCB the recruitment process must be on merit base because recruitment play

important role in success of every organization.

8 Refferences:The material or books consulted for the preparation of the branch are as follows:

Operations manual of MCB Bank Ltd

M.C.B. Bank Ltd Official Web site.

Credit manual.

Compliance newsletters.

Every staff member working in MCB CC&I Building branch Sialkot

www.MCB.com.pk

Akeel Hussain 11022720-130

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Transcript of Akeel Hussain 11022720-130