final report on Mcb

8/7/2019 final report on Mcb

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Table Of Contents

ABOUT MCB: ..................................................................................................................... 3Vision Statement ..................................................................................................................4Mission Statement ................................................................................................................4VALUES: .............................................................................................................................5

Trust: ................................................................................................................................ 5Customer Focus: .............................................................................................................. 5Innovation: ....................................................................................................................... 5Teamwork: ....................................................................................................................... 5Achievement: ................................................................................................................... 5

Social Responsibility: ...................................................................................................... 5Structure: .............................................................................................................................. 6BANKING AREAS OF MCB BANK .................................................................................71. RETAIL BANKING ........................................................................................................8

1- Online services ............................................................................................................ 82. MOBILE BANKING .................................................................................................. 93. calL center ...................................................................................................................94. BILL PAYMENTS ...................................................................................................115. M NET:- ...................................................................................................................12

2- ACCOUNTS: ................................................................................................................13Pak Rupee Accounts .....................................................................................................13

1) Saving Account: ................................................................................................... 132) Current Accounts: .................................................................................................133) Term Deposit: .......................................................................................................144) Special Term Deposit: ..........................................................................................145) Smart Saving Accounts: .......................................................................................14

SAVING Accounts ........................................................................................................151) Saving 365: ...........................................................................................................152) Saving 365 Gold: ..................................................................................................16

Basic Banking Account ..................................................................................................16Khushali Bachat Account .............................................................................................. 17FOREIGN Currency Accounts ...................................................................................... 17

1) Saving Accounts: .................................................................................................. 172) Current Accounts: .................................................................................................18

PRACTICAL EXAMPLE .................................................................................................19Account opening procedure: .......................................................................................... 19

Types of accounts:- ............................................................................................................19REQUIRED DOCUMENTS FOR ACCOUNT OPENING: .............................................20

For Individual: ...............................................................................................................20For Partnership: ..............................................................................................................20

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3) Sole Proprietorship .................................................................................................... 21PROCEDURE OF ISSUANCE OF CHEQUE BOOK: ................................................ 24

3-LOANS: ..........................................................................................................................25FUNDED BASED LOANS ...........................................................................................25

1. MCB BUSINESS SARMAYA ..............................................................................25

2. PERSONAL Loans: ............................................................................................... 263. MCB Pyara Ghar Loan: ......................................................................................... 274. MCB CAR4U: .......................................................................................................28

NON FUNDED BASED LOANS .................................................................................291. BANK GUARANTEE:- ........................................................................................292. LETTER OF CREDIT:- .........................................................................................29

PRACTICAL EXAMPLE OF ACQURING LOANS .......................................................304- CARDS: .........................................................................................................................33

1. Smart card / DEBIT CARDS: ....................................................................................332. MCB VISA card: .......................................................................................................33

5- REMITTANCES: ..........................................................................................................34

Remit Express:- ..............................................................................................................34INSTRUMENTS USED IN REMITTANCE:- ..............................................................341. Demand Draft (D.D): .................................................................................................34PROCEDURE FOR ISSUANCE OF DEMAND DRAFTS: ........................................352. Telegraphic Transfer (TT): ........................................................................................36PARTIES INVOLVE IN TELEGRAPHIC TRANSFER:- ........................................... 363. Mail Transfer (MT): ...................................................................................................374. Pay order:- ..................................................................................................................375. Online Fund Transfer:- .............................................................................................. 386. Rupee Traveler Cheques (RTCs): ..............................................................................39

6- Clearing:- .......................................................................................................................39Inward clearing: .............................................................................................................40Outward clearing: ...........................................................................................................40

2. VIRTUAL/ONLINE BANKING ...................................................................................413. ISLAMIC BANKING ....................................................................................................43

1. DEPOSIT SCHEMES: ..............................................................................................43Al-Makhraj Saving Account ......................................................................................43Al Makhraj IANAT Account: ....................................................................................44Al Makhraj Term Deposit: .........................................................................................45Ijarah .......................................................................................................................... 46

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ABOUT MCB:

MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280

billion and total assets of around Rs.300 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.

This led to deterioration in the quality of the Banks loan portfolio and service quality.

Eventually, MCB was privatized in 1991.

The MCB Bank Limited is one of the largest banks in Pakistan. The MCB Tower in

Karachi serves as the Muslim Commercial Bank's headquarters, and is also the tallest

building in Pakistan. MCB to list on the London Stock Exchange when it raised $150

million floating global depositary receipts.

MCB is the fourth largest bank in the sector having nearly 8% market share of

total assets and deposits.

MCB has a low market share of the consumer market compared to its peers (5%).

However, it is expected that this will increase as MCB has been relaunching its

consumer credit side.

MCB has one of the highest NIMs (Net Interest Margin) in the sector, due to itsability to maintain low funding costs. It is expected that this margins will be

maintained, with higher yielding consumer loans offsetting pricing pressures in

other segments of the loan book as well as rising funding costs.

MCB has one of the highest RoAs (Return on Assets) and RoEs (Return on

Equity) in the banking sector on account of high NIMs.

During the last fifteen years, the Bank has concentrated on growth through

improving service quality, investment in technology and people, utilizing its extensive

branch network, developing a large and stable deposit base and managing its non-

performing loans via improved risk management processes.

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Vision Statement

Challenging and Changing the Way you Bank.

Mission Statement

MCB Banks team of committed professionals is dedicated to maintaining long term

customer relationships through outstanding service and convenience.

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VALUES:

Trust:

Trustees of public funds and serve with integrity & commitment. Ethical behavior

is of critical importance to us. Adopt full compliance with internal and external policies

and procedures, operating within the legal framework.

Customer Focus:

Continuously seek to exceed our customers expectations, forging and

maintaining long term relationships

Innovation:

Strive to be the market leaders in innovative products and services offering

customized financial solutions with flawless execution

Teamwork:

The diversity of their people is their strength. They inspire and challenge each

other working together to achieve synergy

Achievement:

People are their most valuable asset. Committed to a result oriented culture. Goals

are clear and merit is the only criterion for reward.

Social Responsibility:

As responsible citizens contribute to the social welfare of the community we live

in.

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Structure:

6

Head of Retail Banking

Consumer Banking GroupCommercial bankingLahore Office

Commercial BankingKarachi Office

15 General Managers

39 Regional Managers

971Branches


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7

BANKING AREAS OF MCB BANK

1

2

3

Retail Banking

Islamic Banking

Virtual/online Banking


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1- Online services

1. MCB ATM SERVICES

MCB ATM CARDS:-

With an ever-growing number of ATMs operating across the nation, the MCB ATM

Network is the largest and most advanced of its kind in the country, and is part of MCB's

continuing efforts to provide you with convenience that suits your requirements most.

And now the MCB ATM has gone global. MCB's affiliation with Master Card

International brings about added facilities for the MCB traveler abroad with the Cirrus

and Maestro networks.

CARD CATEGORIES

1) MCB ATM Regular Card:

The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per day and a

maximum of 3 withdrawals per day per card.

2) MCB ATM Gold Card:

The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a maximum

of 6 withdrawals per day per card. The card holder has to make at least two transactions

to withdraw the full amount of Rs. 25,000.

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1. RETAIL BANKING


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2. MOBILE BANKING

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

BANKING. The convenience of accessing your account balance information and mini

statements whenever you want or wherever you may need them, with comfort and peace

of mind.

MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365

days.

Mobile Banking at a Glance:

MCB Mobile Banking gives you easy and quick access to your account(s) at a time you

find convenient, including all holidays.

Banking at your Fingertips:

With MCB Mobile Banking you can:

Check your balance

View the last 4 transactions of your MCB account(s).

MCB Mobile Banking is a free service for MCB account holders who have an ATM card.

All you pay for is the cost of an SMS message if charged by the service provider.

3. CALL CENTER

The state of the art MCB call center is the right choice to keep you in step with

your ever-hectic schedule by providing you services relating to your account and Smart

card at any point in time.

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Services Offered:

1) General Inquires:

ATM locations

Account opening procedures

MCB bank charges

Product information

MCB merchant locations

2) Financial Services:

Account Balance inquire Pay orders request

Funds transfer request

Debit card Transactions details

Last five transactions details

Demand drafts request

Cheque book request

24 Hour ATM card blocking

Bill Payments (PTCL, SSGC, Mobilink, UFONE, Paktel)

3) Non-Financial Services:

Balance Certificate request

Bank Statements request

Address Change request

Virtual Banking activation

24 Hour complaint registration

Zakat Deduction certificate request

Tax deduction certificate request

Mobile Banking activation

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Debit card blocking

4. BILL PAYMENTS

About MCB Bill Payments:

MCB easy bill pay offers unmatched convenience to pay your utility and mobile

phone bills or re-charge your prepaid mobile phone accounts anywhere, anytime with

security and peace of mind.

MCB is the only bank that offers you 3 convenient options of making bill

payments to PTCL, SSGC, Instaphone, Mobilink, Paktel and Ufone. So, save your

precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay.

MCB Smart Card or MCB ATM Card Holder can easily pay their bills or re-

charge their prepaid mobile phone account through the following convenient options of

MCB easy bill pay.

Bill Payments Features:

Pay your bills 24 hours a day 7 days a week.

Make total payments of up to Rs. 20,000 per day.

Carry out up to 10 transactions per day per card.

Make either full or partial payments. Full payment is required for PTCL only.

Recharge your pre-paid account for Ufone, Instaphone and Paktel as per their fixed slabs.

Pay as a registered or non-registered user. Registration will help you avoid the time delayin entering details each time you carry out a transaction.

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5. M NET:-

M-NET enables all the member banks to share their electronic networks. Which

means customers of member banks can use M-NET as well as 1-Link ATMs Nationwide.

M-NET member banks ATM machines accept cards issued by MCB Bank Ltd, Citibank,

Standard Chartered, HSBC, My Bank, Bank of Punjab, Prime Commercial Bank, Saudi

Pak Bank Limited, Habib Bank, Metropolitan Bank, American Express and First Women

Bank. MNET customers can use over 600,000 ATMs worldwide.

M-Net switch has currently more than 410 ATMs in 50 cities. MCB is one of thelargest networks for secure online real time financial transactions. They plan to have the

network grow in faster pace in future as MCB itself will be adding more ATMs by the

end of the year. The ATM deployment has been planned in such a manner that a

customer will be only a few minutes away from an ATM in major cities. This coupled

with geographic coverage provides the largest convenient spread in the country, because

of which they are very strongly concentrating on Diverse Coverage & Convenience.

M-Net Switch ATMs are present in all the major cities of the country. They are

available in the hilliest and northern areas of the country such as Murree, Abbottabad and

Swat etc thus providing convenience of accessing 24 hours cash to the customers across

the country. M-Net switch also has its Service Centers in the main cities of the country

providing support to member banks customers. M-Net Switch ATMs are also present in

all 3 main Airports of Pakistan i.e., Jinnah Terminal (Karachi), Allama Iqbal International

Airport (Lahore) & Islamabad International Airport.

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2- ACCOUNTS:

Pak Rupee Accounts

1) Saving Account:

MCBs Rupee Savings account is the most convenient way to manage your savings.

Low average balance requirement

Enjoy unlimited free of cost transaction facility at your branch

Profit is paid on your account on a half yearly basis

Cash deposit and withdrawal facility at hundreds of MCB branches across

Pakistan (conditions apply)

Withdraw cash through Pakistans largest ATM network.

Make cash free transactions, from your account at thousands of merchant outlets

through your MCB Smart Card (local & international)

Use your account to pay your bills 24 hours a day, 7 days a week through Virtual

Banking

2) Current Accounts: Low average balance requirement.

Enjoy unlimited free of cost transaction facility at your branch.


Pakistan (conditions apply).



through your MCB Smart Card (local & international).

Stay in touch with your account through MCBs Virtual Banking Service.


Banking.

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3) Term Deposit:

At MCB, you can open an account that fits your requirements.

MCB offers a wide range of attractive term deposit schemes to suit your requirements.

Avail your choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4

years and 5-year term deposits.

Low investment threshold.

Half yearly profit payment

Avail a credit facility up to 75% of the total deposit value.

4) Special Term Deposit:

MCBs Special Rupee Term deposits offer a very attractive long term investment option

with ease and convenience.

Highly attractive profit rates

Tenors available are 3 months, 6 months, 1, 3 and 5 years.

Profit on 3 and 6 months deposit is payable at maturity of deposit.

Profit on 1, 3 and 5 years deposit is payable quarterly.

Withdraw your amount through our wide network of ATMs.

Avail a credit facility up to 75% of the total deposit value.

Contact your branch for information on the present profit rates on offer.

5) Smart Saving Accounts:

MCB Smart Savings Account gives you the optimum value you deserve.A Savings Account where not only do you get a competitive return, enjoy the

unlimited number of fringe benefits but also stay connected all the time.

Following are some of the benefits,

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MCB Smart Savings Account gives you up to 9 % return per annum. Profit is

calculated on a monthly basis, based on the minimum monthly balance maintained during

that month.

3.0%p.a. - If minimum Balance is Rs. 10,000 Rs. 100,000



Profit will not be paid on any amount above Rs. 300,000

MCB Smart Savings Account is available through vast network of about 600 online

branches all over the country.

SAVING Accounts

1) Saving 365:

The MCB Saving 365 calculates profits on a daily product basis and gives you the

facility of unlimited withdrawals.

Open a Saving 365 Account with a minimum initial deposit of Rs. 300,000.


Profit is paid on your account on a half yearly basis.







Banking.

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2) Saving 365 Gold:

MCB offers a wide range of attractive term deposit schemes to suit your requirements.

Open a Saving 365 Gold Account with a minimum initial deposit of Rs. 1 Million.

Offers a tiered profit rate structure.








Stay in touch with your account through MCBs Virtual Banking service.


Banking

Get instant updates about your account through MCBs sms banking.

You can avail a credit facility up to 75% of the total deposit value.

Basic Banking Account

In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30,

issued on November 29, 2005, the Basic Banking Account has been launched with effect

from February 27, 2006.

This product has been introduced to facilitate the low-income group as well as the

existing account holders who wish to convert their regular savings or current account into

BBA.

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The Basic Banking Account is a current account and can be opened with a minimum

initial deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit transactions

(either cash or through clearing) and 2 withdrawals (cash or clearing) each month. All

customer-initiated transactions over and above this limit will be charged a transaction fee.

However unlimited free of charge cash withdrawals are allowed through MCBs own

ATMs. There will be no minimum balance maintenance requirement, and hence no

monthly account maintenance charges will apply. In cases where balance in BBA

remains zero for a continuous 6 month period, the account will be closed

automatically, without any notice to the account holder.

Khushali Bachat Account

Low average balance requirement.







FOREIGN Currency Accounts

1) Saving Accounts:MCBs Foreign Currency Savings Account offers attractive returns on your Foreign

Currency investment.

Open a foreign currency Savings account in any of the four currencies i.e. US

Dollar, UK Pound Sterling, and Euro.

Unlimited transaction facility

Profit credited to your account on a half yearly basis.


A foreign currency account can be opened at any of our foreign exchange dealing

branches.

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2) Current Accounts:

MCBs Foreign Currency Current Account offers the convenience of unlimited

withdrawals i.e. access to your funds whenever you want without any notice. There is no

limit on the number of transactions you make in a day.

Open a foreign currency Current account in any of the four currencies i.e. US

Dollar, UK Pound Sterling, and Euro.

Unlimited transaction facility

Low balance requirement.


A foreign currency account can be opened at any of our foreign exchange dealing

branches.

Conditioned accounts

1. Dormant accounts

If current / saving accounts remain inoperative for three years the same should be

transferred from inoperative to unclaimed accounts. If these accounts remain unclaimed

for ten years then become the property of State Bank of Pakistan.

2. Inoperative account

Current accounts if not operative for two years & saving for three years become

inoperative.

3. Unclaimed accounts

Current account not operated for 6 month and saving account if not operated for one year

become dormant accounts.

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PRACTICAL EXAMPLEAccount opening procedure:

The requirements for opening an account are as follows.

The minimum amount to open an account is Rs. 10,000 but depends upon the

nature of account.

An introducer preferably of same branch.

Real CNIC and photo copy of CNIC (of both customer and introducer.)

When all the required documents are completed; documents are checked carefully. If

there are any mistakes they are adjusted further, the signature of prospect account holder

is taken on the signature card, the signature of verifying officer is taken on the form aswell.

Types of accounts:-

Individual

Joint

Proprietorship

Partnership

Joint stock

Government institution.

NATURE OF ACCOUNT:

Following are the nature \s of MCB accounts.

Current A/C.

PLS Savings.

Savings (in foreign currency).

Term Deposit.

Call deposit.

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Khushali Bachat A/C.

The customer is required to select the nature of account which suits to his/ her personal or

business requirements.

REQUIRED DOCUMENTS FOR ACCOUNT OPENING:

The requirements of documentation depend upon the nature of the account which

is going to be opened.

For Individual:

For the opening of an Individual account I asked about the following documents

Attested Photocopies of Computerized National ID card.

In case of salaried person, attested copy of his or her service card or any otheracceptable evidence of service, including, but not limited to a certificate from theemployer.

In case of illiterate person, two recent passport size photographes of the newaccount holder besides taking his right and left thumb impression on the specimensignature card.

Reference of existing account holder.

For Partnership:

Attested Photocopies of Computerized National ID cards of all partners.

Attested copy of partnership deed or letter of partnership signed by all partners

of the company.

Attested copy of registration certification with registrar of the firms

Authority letter, in favor of the person, who will be authorized to operate account

in the absence of partners

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3) Sole Proprietorship

Application to open an account on the official letter head of the sole

proprietorship.

National tax number (NTN)/sales tax registration certificate (if available). Evidence of membership of trade organization/chamber of commerce etc.

List of officials authorized to operate the account and their specimen signatures

a. FILLING OF ACCOUNT OPENING FORM

The client who is willing to open his or her account in MCB need to fill the account

opening form which provides sufficient information to the bank regarding address, nature

of account, residential status etc.

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b. SPECIMEN SIGNATURE CARD

The client is also required to make two signatures in specimen card to keep the record by

bank for future cheque other transactions.

c. FILLING UP DEPOSIT SLIPS:

I filled the slips having to sides the right one and the left one. The color of saving

and current account is changed. For saving it is green and for current account it is blue.

First of all I wrote down the date on the both of the slip. One side of the slip is taken by

the bank and the other side is given to the customer for his / her own record. Than write

the account no of your account in the blocks which looks likes this

Branch Code

Currency Code

Nature of Account

Account Number

computer Digit

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Samples of Deposit Slip

Current Deposit Slip used for deposit of cash or transfer of amount

Saving Deposit Slip used for deposit of cash or transfer of amount

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PROCEDURE OF ISSUANCE OF CHEQUE BOOK:

Cheque book is used for the purpose of withdrawal or deposit; I issued four types

of cheque books that are currently in use for the convenience of MCB account holders.

They consist of 10 leaves, 25 leaves, 50 leaves and 100 leaves, where leaves stand for the

number of pages. All the pages of the cheque book are stamped by the officer, branch

stamp is also affixed, the account holder name, account number, date and cheque book

number is entered in the register.

REQUISITION SLIP:

It is used to issue new check book when old one is finished.

IMPORTANCE OF REQUISITION SLIP:

This slip is very important because if the slip is lost you cannot apply for

another cheque book. You have to pay penalty for this book which is 350. This

requisition slip contains the detail of:

Title of account

Cheque book series number

Signature of issuing officer with the name

Authorized signature of the customer

Signature of recipient

A bank round stamp

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3-LOANS:There are two types of loans which MCB is offering to its cusotomers.

1. Funded based loans

Running Financing (business sarmaya)

Term Finance

Personal loans

MCB payara ghar laon

MCB care 4u

2. Non funded based loans Bank Guarantee

Letter of Credit

FUNDED BASED LOANS

1. MCB BUSINESS SARMAYA

MCB Business Sarmaya offers a running finance facility against your house/flate and is

the best way to resolve all your cash flow problems. It's easy, flexible, and affordable and

keeps your business growing. Because we believe

Flexible

Running finance facility to use when and for whatever you want

Financing up to Rs 20 million

Renewed every year

Pay back when you want

No fixed monthly payment

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Affordable:-

Lower mark up and that too only on utilized amount.

High Loan Amount:-

Loans up to 70% of the value of your house / flat

Speed:-

Fast and hassle free processing of application after completion of your documents.

Wide Accessibility:-

Access your Business Sarmaya account through our vast ATM and branch

network anywhere in Pakistan.

Special Benefits:-

Hassle free process to transfer your similar facility from any other bank at a

special discount.

Availability:-

Access your Business Sarmaya account through our vast ATM and branch

network anywhere in Pakistan.

2. PERSONAL Loans:

Fast

Speedy loan approval

No guarantor / security / collateral required

Flexible

Borrow up to Rs. 1,000,000

1 to 5-year tenures

Partial and full adjustments allowed anytime during the tenure

Optional insurance.

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Affordable

Equal monthly installments

Lower interest rates

Higher loan limits

Special Benefits

Loan amount renewed anytime after nine months.

Existing Customers

Fill in and submit the application form along with a copy of your CNIC if you

have been a customer of MCB Car4U, MCB Pyara Ghar or MCB Business Sarmaya for

at least 12 months.

3. MCB Pyara Ghar Loan:

MCB Pyara Ghar now provides you with all you want as you can renovate your

existing home, buy or construct a dream house that you always envisioned for you and

your family.

Flexible

Financing up to Rs 20 million

Financing Tenures from 2 to 20 years

Options to buy construct or renovate your house or flat

Option for partial payments

Option for early payment

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Affordable

Lower mark up rate

Loans up to 80% of the value of your house or flat

Option to club your spouse's income to avail higher financing limits


Speed

Fast & hassle free processing of application

Availability

Available in all major cities i.e. Karachi, Lahore, Faisalabad, Rawalpindi and

Islamabad

4. MCB CAR4U:

MCB Car4U through its flexibility, affordability, speed and other special benefits

makes you keep up with the fast pace of life...

Flexible

Option for financing or leasing

Financing tenures from 1 to 7 years

Options for new as well as used cars

Option for local as well as imported cars

Financing up to Rs. 20 lacs

Option for early payment

Option for Replacement Loan

Option for first year insurance financing

Affordable

Lower mark-up rates

Lower insurance rates

Only up to 10% down payment

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Speed

Fast and hassle free processing of application

Priority delivery on different vehicles

Special Benefits

Option to pay your 1st installment after 3 months

Pay your down payment after your loan is approved

Availability

Currently available in 16 major cities:

Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, Quetta, Multan, Peshawar,

Hyderabad, Sialkot, Gujrat, Gujranwala, Sargodha, Mirpur (AJK), Jhelum,

Sahiwal

Existing Customers:- Get 1 % discount if you are already our customer for Personal

Loan, Pyara Ghar or Business Sarmaya.

NON FUNDED BASED LOANS

1. BANK GUARANTEE:-

MCB offers sometimes the facility of bank guarantee to its loyal customers for different

business purposes.

2. LETTER OF CREDIT:-

MCB offers the letter of credit facility to its customers and act as issuing as well as

negotiating bank for both importer and exporter. Bank facilitates the transaction between

exporter and importer by providing the letter of credit facility.

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Businessmen Compulsory MCB a/c Min. 6 months Debit/creditTurnover.

How much Financing ?

Demand for securityPrimaryHypo (R.F 50%)Pledge (C.F 30%)Secondary/ CollateralR.F 75%C.F 200% (very risky)

IF Okay?

Valuation ofProperty from

Approved valuator

Making a Proposal of

AFF

BBFSCIBRouting SheetCall ReportCredit Risk RatingManage Valuation

ReportCopy of Previous a/cStatement of Stock

Send to Credit Risk

Control DivisionLahore

IF clear?

Legal Opinion by advisor ofa bank

Attach all copies ofSecurities with the proposal

And sent it to Credit Hub(Relevant Circle)

Customer is Eligible for Financing

PRACTICAL EXAMPLE OF ACQURING LOANS

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Approve the demand

Then, the ownership ofCollateral security is

Delivered to bank

Vetting Certificate

Building Stock Insurance

Send a copy of maintainedFile to Lahore

DAC

DisbursementAuthorization

Certificate

Signature of a customer on

IB Form

Indemnity Bond (Islamic) Form

MONEY

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PROPERTY RELATED DOCUMENTS

Legal FARAD

NEC (Non Encumbrance Certificate)

AKS( direction and dimension)

Title deed (transfer letter)

Map

Property visits report

SBP Undertaking from the borrower

Financials of the business

Monthly Stock Reports

Property valuation report

Insurance Of Property

DOCUMENTS REQUIRED FROM CUSTOMERS

CNIC copy

Property to be mortgaged.

Personal Guarantee.

Hypothecation of stocks/ items/ finished goods.

Property documents to be mortgaged.

Personal Net worth Statement

CUSTOMERS SIGNATURE REQUIRED

Letter of disbursement

Letter of guarantee

Demand promissory note

Letter of hypothecation

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4- CARDS:

1. Smart card / DEBIT CARDS:

MCB now brings you MCB Smart Card a secure and convenient instrument of

payment with unmatched functionalities. It provides 24-hour direct access to your bank

account. The convenience and flexibility of MCB Smart Card will help you live a smarter

life. It not only helps you manage your expenses, but also eliminates undue interest on

your day-to-day credit card transactions. Your balance is always within your reach and

you spend accordingly.

MCB is the only bank to introduce a debit card that gives the option to choose from

domestic and international cards for local and global usage respectively. You can avail the

following functionalities on your MCB Smart Card.

2. MCB VISA card:

MCB Visa is not just another card in your wallet. It not only provides the

conventional credit card services in a manner that is superior in comparison, but goes an

extra mile. Introducing unique, innovative and state of the art services, MCB Visa is themost secure, affordable and rewarding credit card... turning your shopping into a much

more exciting experience. MCB Visa is accepted at all ATMs across Pakistan as well as

at 27 million acceptance locations worldwide.

MCB Visa is not just another card in your wallet. It not only provides the

conventional credit card services in a manner that is superior in comparison, but goes an

extra mile. Introducing unique, innovative and state of the art services, MCB Visa is the

most secure, affordable and rewarding credit card... turning your shopping into a much

more exciting experience.

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5- REMITTANCES:Fast, secure and easy-to-use, MCB's Remittance Services is an efficient way to

transfer money overseas. Customer can remit funds from any country to Pakistan through

Swift System.

Remit Express:-

Fastest to Pakistan Anywhere in Pakistan:

The fastest way of getting your money across to Pakistan Remit Express offers low cost

remittance from U.A.E. and Saudi Arabia. Your relatives, friends or business associates

receive drafts within 72 hours. MCB Remit Express has been specifically designed to

meet the needs of the expatriate Pakistani community residing in the Gulf countries.

Features:-

Easiest and safest way to remit funds

Remittance within 24 to 72 hours

Personal delivery to the beneficiary

Delivery confirmation to the remitter

Message facilities for both parties

Your beneficiary will receive the amount even if he/she does not have an MCB

account

INSTRUMENTS USED IN REMITTANCE:-

1. Demand Draft (D.D):

DD is written order, drawn by one branch of a bank upon another branch of the

same bank, or upon another bank under special arrangement to pay a certain amount of

money to or to the order of a special arrangement. DD is neither payable to bearer nor

drawn on branches situated within the same city. D.D. is issue on the demand of

customer.

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PARTIES INVOLVES:-

1- Purchaser

2- Issuing or Drawing Branch

3- Drawee Branch

4- Payee/Beneficiary

PROCEDURE FOR ISSUANCE OF DEMAND DRAFTS:

A printed application form is obtained for issuance of demand draft. It should be

properly filled in and signed by the purchaser. It is also be obtained on written request of

a customer after verifying his signature on the letter along with the cheque drawn by him

of the equivalent amount. Name of the payee should be mentioned on DD. Amount on

words and figures should be mentioned. It must signed by the purchasers. Rate of

commission, charges & excise duty recovered at the rate set by the bank.

DEPOSIT OF CASH:

The purchaser at the cash counter along with DD application form will deposit the

amount of DD.

PREPARATION OF DRAFT:-

DD leaf must be name of the issuing branch Payees name on the draft should tally with

the name mentioned in application form. Date, serial number, amount in words and

figures & name of drawee branch must be written carefully. All drafts for amount Rs

10000/- and above should be applied test.

(A test is secret key in words written on bank document for the purpose of security

genuineness)

With the red ink amount must be write in Exactly Rs=20000/-

The charges of D.D:-

The charges of D.D. are as under:

Commission: DD. 0.05% of Total amount

Postage Charges: Rs.75

F.E.D: 5% of Commission

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2. Telegraphic Transfer (TT):

Transfer of funds from one branch to another branch of the same bank or upon

other bank under special arrangement for the payment to the beneficiary through

telegram/ Telex/ Fax is called TT.

TT is not negotiable

Funds are not payable to bearer

Not allow within the same city

PROCEDURE OF ISSUANCE OF TT:

I followed the following procedure of issuing T.T.

Customer filled a T.T. form (Payment may be by cheque or cash basis).

After submission of cash / cheque he/she give the form to officer.

PARTIES INVOLVE IN TELEGRAPHIC TRANSFER:-

a) Applicant

b) Drawing Branch

c) Drawee Branch

d) Payee

PROCEDURE FOR ISSUANCE OF TT:

Cash received stamp has been affixed on the application form. Authorized officer should

sign it. And we record it in outward remittance register and TT dispatch register. After

making entries into the register, we write it in Telegram Dispatch Register.

CHARGES OF T.T:-

The charges of T.T. are as under:-

Commission

Rs.100 up to 100,000/- to 150,000/-

Rs.150 up to 150,001/- to 200,000/-

Rs.200 up to 200,001/- to 300,000/-

Postage: Rs.75/-

Tax: Rs.5/- to 20/- up to face value of T.T

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3. Mail Transfer (MT):

Transfer of funds from one branch to another branch of the same bank within or

outside the city or upon other bank under special arrangement for the payment to the

beneficiary through Mail/ Couriers Service is called Mail Transfer.

Like TT, fund can be remitted by MT for the credit of the payee account or the

payee/ beneficiary can be advised the amount from the Drawee branch either in cash on

proper identification or through his banker.

ISSUANCE PROCEDURE:

Application on SF-100 revised

Payment through cash or chque

Preparation of MT

Application of Test on MT

Signing and dispatch of MT

Parties involve:

Applicant

Remitting or drawing

Drawee Branch

Beneficiary/ Payee

4. Pay order:-

A pay order is a written authorization for payment, made in a receipt from issues

and payable by the bank, to the person named and addressed therein on his giving a

proper discharge thereon.

It should be prepared and signed like demand draft.

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FEATURES:-

It is issues by and drawn upon and payable by the same branch of the bank

It is neither transferable nor negotiable and as such it is payable to the

payee named therein

It is in a receipt from and therefore, is payable only after obtaining a

discharge of the payee on adequate revenue stamps

Pay order cannot be issued to a minor

Pay order is issued for the payment within the same city

PREPARATION OF PAY ORDRE:

Pay order is making for any outside payment. It is also prepared on the demand of

customer. When bank receive any bill then prepare a payorder. When payorder is paid

then we enter the current date.

5. Online Fund Transfer:-

Online fund transfer facility provided by MCB to its customers from one branch

to other (inside and outside the city). When a customer came and ask to make the online

payment in accounts at other branch I filled that given form. After filling the requirement

on this form the amount of the customer is transferred to the responding branch in the

target account by online connecting the branch.

CHARGES ON ONLINE FUND TRANSFER:-

The given charges taken from customer,200/- Commission10/- Tax

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6. Rupee Traveler Cheques (RTCs):

MCB Bank has been at the forefront of providing its customers with new and

innovative products and financial instruments that are safe, secure and profitable.

MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash for traveling

and travel related purposes. The product has been extremely popular and is preferred over

cash by customers while traveling and in all walks of life.

Rupee Travelers Cheques Features:

Easily available: Buy them from any of the designated branches in Pakistan. As good as cash: MCB RTCs are safe to carry and can be used without any

inconvenience especially by Travelers.

Easily enchased: At any designated MCB branch.

Easily refunded: in case of loss or theft, you can get the full amount back.

Exclusive security features: Due to special printing and safety precautions,

Cheques cannot be duplicated.

Available in denominations of Rs 1000, Rs 5000, Rs 10,000 and gift cheques of

Rs 500.

6- Clearing:-

The clearing record those cheques which are the part of the other banks butdeposited in our bank. These cheques are recorded in computer and these cheques for

collection is send to the NIFT which is stand for national institution for facilities and

technologies. Which are responsible for collecting the entire cheques amount from the

bank?

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TRANSFER:

Some clients ask to deposit the cheque of other account into their account for thispurpose first the cheque amount is checked whether the account has enough amount in it

or not, then the cheque account is debited and the deposit account is credited.

Inward clearing:

When somebody deposits the cheque of our particular branch in some other

branch or bank, we get it through NIFT services for clearing,

Outward clearing:

It is about the cheques of other banks or other branches that we get by the

customers who ask us to deposit them in their account.

Separate all cheques

It must be noted on clearing register

All D.S must be attached on clearing cheques except C.C.

Clearing stamp on the back side of all cheques

Intercity stamp must be on intercity cheques

C.C stamp on C.C cheques

CHEQUES CLEARING:

In case of MCB cheques charges 0.15% + postage

In case of other banks charges 0.20% + postage

In case of unclearing 100+75 charges

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VIRTUAL BANKING:

MCB Virtual Internet Banking offers customers the convenience to manage and

control their banking and finances when they want to, where they want to. MCBs

Virtual Internet Banking facility is,

Simple

Secure

Free of cost

With MCB Virtual Internet Banking customer can access any of the banking

services, 24 hours a day, 7 days a week and throughout the year.

MCB Virtual Internet Banking offers a wide range of online services, which makes

customer banking accessible anytime and from anywhere.

Mini-statements of each of the listed accounts showing recent transaction history

for that account(s)

Statement-by-Period of each of the listed accounts, based on the period specified.

Immediate or Scheduled Transfer of Funds between your own accounts, as well as

to third-party accounts setup as beneficiaries, maintaining accounts with MCB.

Scheduling of One-Time as well as Recurring Funds Transfers

Payment of utility bills for registered Utility Companies.

Immediate or Scheduled Bills Payment. Scheduling of One-Time as well as

Recurring bill payments. Option for Full or Partial payment based on the

payment conditions specified by a particular Utility Company.

Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary

to the corporate employees, who maintain accounts with MCB.

Cheque Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to the processing of

specified payments and transfers.

Personal Alerts for reminding of pre-specified events and occasions

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1. INDIVIDUAL USERS:

MCB Virtual Banking - Internet banking at its best! It is a safe and convenient

way to manage and control your banking and finances. This service meets your essential

banking needs

2. CORPORATE USERS:

MCB Virtual Banking - Internet banking at its best! It is a safe and convenient

way to manage and control your banking and finances. This service meets your essential

banking needs

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INTRODUCTION:

MCB now provides its customers with the reliable Islamic Financial Services and

support they require to successfully achieve their business objectives.

Islamic Banking Division was formed with effect from 1st January 2003, which in

a short span of time has developed sufficient expertise, necessary infrastructure,

information technology, and manpower to run Islamic Banking Operation and offer

Islamic Banking Products.

ISLAMIC BANKING MANAGEMENT COMMITTEE:

The bank has established an Islamic Banking Management Committee comprising

of the senior executives representing various important functions of the bank, such as,

Credit & Risk Management, Finance, Treasury, Operations, Islamic Banking Division

and Sharia Advisor. The objective of this committee was to review the products offered

by Islamic Banking Branches, and to improve them not only to make them competitive

and practicable but also make them truly Sharia Compliant.

1. DEPOSIT SCHEMES:

Al-Makhraj Saving AccountThe minimum deposit requirement for Al-Makhraj Saving Account is only Rs. 5000 and

profits can be earned 6-monthly. Other features associated with this product are as

follows:

1. Minimum initial deposit: Rs. 5000

2. Product to be availed by: Individuals & Joint Account Holders (Local)

Companies, Corporate, Trusts, etc

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3. Special Advantages:

a. for customer = bi-annual profit payment; withdrawal facility

b. shariah = meets requirements for shariah compliance

4. Additional Features:

Personalized Cheque books

Withdrawal Facility from ATM/ Debit Card

Online deposit as per bank's policy

Virtual Banking

Call Centers Facilities

6-monthly profit payment on the basis of monthly declared rates

Issuance of duplicate statement of account (as per SOBC)

Free bank balance certificates (once in 6 months)

Taking stop payment/ hold mail/ standing instructions

No penalty if balance falls below minimum level.

Personal financial consultancy services (regarding Shariah Compliant products)

Utility bill payment via ATM card

Choice of statement frequency (as per Schedule of Charges)

5. Weightages: Weightages are made according to tiers (Volume-wise and Time

wise)

6. Communication Process: Announcement on notice boards, and website Banking

Network: IBD's Branch only.

7. Profit payment options, 6 monthly

Al Makhraj IANAT Account:If you are looking for a chequing account that gives you the ease of doing

unrestricted number of transactions, we offer Al-Makhraj Ianat Account. Ianat Account

may be opened with a minimum of only Rs. 10,000. With all the features and facilities

that this product offers, it is highly recommended for management of business funds.

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1. Minimum Initial Deposit: Rs. 10,000

2. Product to be availed by: Individuals & Joint Account Holders (Local),



Personalized Cheque books

Withdrawal Facility from ATM/ Debit Card

Online deposit as per bank's policy

Debit card; Utilities payment via ATM card

Virtual Banking

Call center facilities

Free bank balance certificates (once in 6 months)

Taking stop payment/ hold mail/ standing instructions

Issuance of duplicate statement of account (as per Schedule of Charges)

Choice of statement frequency (as per Schedule of Charges)

No penalty if balance falls below minimum level.

4. Banking Network: IBD's Branch only

Al Makhraj Term Deposit:A minimum of only Rs. 25,000 is needed to invest money in Al-Makhraj Term

Deposit. Choice of tenors can be made from a list of options namely 3 months to 5 years.

Details of the product are as follows:

1. Minimum Deposit: Rs. 25,000

2. Islamic Tools used in designing the product: Mudaraba/ Musharaka

3. Tenors Available:1 mth, 3 mth, 6 mth, 1 yr or 2 yrs

4. Product to be availed by: Individuals & Joint Account Holders (Local),


5. Special Advantages:

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a. For Customers = Profit Payment Options customized to suit needs of

customers; Minimum Deposit requirements lower than most banks so it is

more accessible/ affordable for people

b. Shariah = Meets requirements for Shariah Compliance.


a. Call center facilities

b. Taking hold mail/ standing instructions for profit payments etc

c. Personal financial consultancy services (regarding Shariah

Compliant products)

7. Frequency of Announcements: The first announcement shall be made at the end

of the month of December 2003.

8. Profit Payment Options: Monthly/ Quarterly/ At Maturity (Monthly payment

option to be made available later in a few months time)

9. Weightages: Different weightages based on tenors and profit payment options

10. Communication Process: Announcement every month on notice boards, and

website

11. Banking Network: IBD's Branch only.

2. Fund Based Facilities:

MCB Bank offers 2 broad Islamic fund based facilities:

1) Ijarah

2) Murabahah

IjarahMCBs Islamic Ijarah, analogous to the English term 'leasing, is based on the

Ijarah wa Iqtina concept which means the sale of the asset to the lessee (customer) after

the Ijarah has matured. Under this scheme, MCB will be the owner of the asset, and you

(lessee) will be given the asset to use for a certain period of time in return for monthly

rental payments. MCB will give a separate unilateral undertaking that it will offer to sell

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the asset to you (lessee) at the maturity of the Ijarah agreement at a price that may be

equal to the security deposit amount, hence the term Wa Iqtina

1. Al Makhraj Car Ijarah Concept.

Under the Al-Makhraj Car Ijarah scheme, you can get a car of your choice

against monthly rentals payable to MCB Islamic Banking.

Special Attractions

a. Free from Riba

b. Fully Shariah Compliant

c. No rental payments from the date of booking till the time of delivery

d. No up-front registration / tax related expenses and fees

e. No up-front Insurance payment

f. Nominal processing fee of Rs. 4400 (Non-refundable)

2. Equipment Ijarah

Ijarah for Machinery and other equipment to corporate clients.

Security Deposit

10% Minimum plus any other security required by the Bank from time to time. Legal Documentation

Agreement to Ijarah

Other Documentation

Unilateral undertaking by the Bank to offer to sell the asset at maturity. Unilateral

undertaking by the lessee to purchase the asset at the Pre-Agreed Purchase Price on

termination of Ijarah before Maturity.

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2. Murabahah

A contract between a buyer and a seller under which the later first purchases the

goods at the request of the former i.e., customer and then sells it to same customer after

adding profit.

Buyer Banks customer

Seller Bank

Agent Customer for foreign transaction banks approved broker for local transaction

customer for local transaction also (unmanageable situations)

Murabahah sale price= Cost + expenses incurred + agreed profit

Common Features

a. Request of customer for purchases / import of specific goods.

b. Appointment of customer as agent of the bank (Foreign Transactions) / common

broker (for Local Transactions).

c. The bank after taking possession of goods and establishing its ownership, shall

deliver the same or documents of title thereof to the customer on the basis of offer

and acceptance.

d. Price / profit once fixed cannot be changed either on premature or overdue

repayment.

e. Repayment period once fixed cannot be extended. Rollover of liabilities not

permissible by Sharia. Similarly, goods cannot be repurchased against which

Murabahah already allowed / adjusted.

f. All costs / charges to be incurred pre / post Murabahah execution, to be

determined, calculated earlier and included in Murabahah Selling Price.

g. Custom duties to be either paid in full by bank or customer. If paid by the bank, it

shall be part of Murabahah Selling Price.

h A i t ll t l / iti b bt i d t l t

final report on Mcb

Documents

Transcript of final report on Mcb