Among the other 22 scheduled banks with 3525 branches network nationalized on 01st January,

1947through the nationalization of Banks Act, 1974 under the nationalization policy of the
Government. MCB was also nationalized and at that time of nationalization Premier Bank was
merged in M.C.B LTD in 1974.

After the failure of the communism, it was realized though the world the idea of nationalization
was not correct and has no any positive effects on economy. This idea developed especially in
1980 decade under which in sub-continent of Asia its importance was also realized. In Pakistan
Privatization and de-regulation policy was started in 1998 under this policy the first unit
privatized was M.C.B, with a view to stable the economy and to reduce the burden on national
exchequer of other sick units.

In 1990 this bank was announced for Privatization on the grounds that 51% shares would be for
general public out of which 26% shares would be offered to a particular party, which will take
administration of bank and lead by Mian Mohammad Mansha who was the first chairman of
MCB LTD.
Now out of 10% shares only 14.90% shares are being held by State Bank of Pakistan and all
other being held by individuals, directors and joint Stock Companies etc (Annual Report of
M.C.B).

MCB can be divided into three Phases

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  Development Phase
 Nationalization Phase
 Privatization Phase

Development Phase
MCB Bank Limited was incorporated by the Adam jee Group on July 9, 1947, under the Indian
Companies Act, VII of 1913 as a limited company. The bank was established with a view to provide
banking facilities to the business community of the South Asia. After the partition of the Indo-Pak
subcontinent, the bank moved to Dhaka (then the capital of former East Pakistan) from where it
commenced business in August 1948. In 1956, the bank transferred its registered office to Karachi,
Where the head office is presently located. Thus, the bank inherits a 64 years legacy of trust of its
customers and the citizens of Pakistan. MCB Bank is not an overnight success story. It started with a
share capital of Rs 30 million which is divided into 3 million ordinary shares of Rs 10 each.

Nationalization Phase
The 1960s decade is stated as the golden era in Pakistan’s economic and financial development. The
banking sector also registered noticeable growth during that period and lent a strong helping hand to
the government to achieve rapid economic growth of the country. But in early 1970s this scenario
changed altogether. The separation of East Pakistan (now Bangladesh) and induction of the government
led by Zulfiqar Ali Bhutto were the most significant events of early 70s having far reaching effects on the
banking system.

In the wake of rapidly changing conditions of the country, the government decided to nationalize all the
commercial banks so that the nation as a whole can benefit from a better use of resources.

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Consequently, the Muslim Commercial Bank was nationalized under the Banks (Nationalization) Act,
1974 promulgated on January 1, 1974. In the banking sector, the then government decided to retain
only five major banks by merging all the smaller banks with the large ones. As a result of this policy, the
Premier Bank was merged into Muslim Commercial Bank in 1974.

Privatization Phase
This was the first bank to be privatized in 1991 and the bank was purchased by a consortium of Pakistani
corporate groups led by Nishat Group. The banks after nationalization came under political and
bureaucratic control and deviated from normal banking practices. Some of their senior executives were
tempted to nurture a culture of obliging big businessmen, feudal and political influential. They sacrificed
their personal integrity and interest of banking sector for gaining promotion and accumulating personal
wealth. That is how banking sector started losing its upright and professional institutional image from
mid-80s and its downward slide started which touched new low during 1990s. The then PML
government also became conscious of the falling standard of the banking sector and decided to privatize
all the commercial banks. Banks (Nationalization) (Second Amendment) Ordinance 1991 was also
promulgated to pave the way for privatization of banks in Pakistan.

In the wake of above amendments, 26% shares valuing Rs. 149.8 millions of the Muslim

Commercial Bank, held by the State Bank of Pakistan was sold and the Bank’s management was
transferred to the purchasers of these 26% shares. Mian Mohammad Mansha is the Chairman of the
MCB and has played instrumental role in its country.

Nature of the Organization

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

The Bank operates in four business segments

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

Corporate finance
Corporate finance includes underwriting, securitization, investment banking, syndications initial public
offerings (IPO) related activities (excluding investments) and secondary private placements.

Trading and sales

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

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

Commercial banking
Commercial banking segment includes project finance, export finance, trade finance, leasing, lending,
guarantees and bills of exchange relating to its corporate customers. MCB is one of the leading banks of
Pakistan. Its deposit base of Rs. 368 Billion and total assets over Rs.500 Billion.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 1,000 branches and over 450 ATMs
in the market 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. 2012 Bags Another Esteemed International Award For Its Growth and
Performance

General Information

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Awards & Achievements

 2011 “The Best Bank of the Year” and “The Most Stable Bank of the Year”
 2010 MMT Award: World’s Best Mobile Money Transfer Bank
 2009 Asia money: Best Domestic Bank in Pakistan
 2009 The Asset: Best Domestic Bank in Pakistan
 2008 Euro money: Best Bank in Asia
 2008 Euro money: Best Bank in Pakistan
 2008 Asia money: Best Domestic Bank in Pakistan
 2006 Asia money: Best Domestic Bank in Pakistan
 2006 Euro money: Best Bank in Pakistan
 2005 Asia money: Best Domestic Bank in Pakistan
 2005 Euro money: Best Bank in Pakistan
 2004 Euro money: Best Bank in Pakistan
 2004 Asia money: Best Domestic Bank in Pakistan
 2003 Euro money: Best Bank in Pakistan
 2001 Euro money: Best Bank in Pakistan
 2000 Euro money: Best Bank in Pakistan

MCB Mission & Vision statement

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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.

Vision statement
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future

Objectives of MCB

The main objectives of MCB are to earn Profit by investing the money of depositors, who can’t
utilize that money for getting required return. So the bank invests that money in the shape of
advances and shares, the return or interest Charged on those advances with the depositors. Beside
above-mentioned objectives the Bank serves the society by facilitating them in the shape of
advances to industries, agriculturists etc. it also provides employment to people; it help in
developing economy of the country. It also provides facilities in doing business with other
countries.

Present Position of MCB

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MCB has significant contributions in building & strengthening both corporate and retail banking sector in
Pakistan. MCB Bank Ltd in 2011 delivered a profit before tax of Rs. 23.2 Billion registering a growth of
6% over last year. This growth is directly attributable to an increase of 14% in CASA deposits, 21% in
revenues and a tight control on expense base enabling to retain position as one of the most profitable
banks in the country. In 2011, MCB delivered a superior return on equity of 27.4% and assets crossed
the Rs. 500 Billion mark. This performance is all the more remarkable keeping in view the economic &
political challenges faced by the country during this past year and miscreant created issues that MCB
specifically grappled with for a large part of the year. MCB fundamental belief is that a financial services
company can only succeed if it meets its customers’ needs. If they can understand customer’s financial
objectives and offer them the right products and services so that they can be financially successful, then
MCB Bank will continue to build on its leadership position and provide requisite returns to its
shareholders. During 2011, MCB took several initiatives that brought even closer to their customers.
With the launch of MCB Privilege, MCB became the first local bank to offer a dedicated proposition for
the affluent segment; to meet the growth and protection needs of customers, we introduced

Ban assurance and Investment Products in many of our branches; to enhance transactional convenience
for customers, MCB became the first Pakistani bank to launch mobile banking.

These coupled with several other initiatives enabled us to continue on the path of growing customer
base and profitability. Last year, to expand and reach customer proposition, MCB also reached an
agreement with RBS Pakistan to acquire their business. Unfortunately, the deal did not go through but
bank continue to invest organically to further strengthen businesses.

MCB Core Values

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Customer Focus
We treat each of our customer equality & as the most important person while we interact with him/her.
We must ensure that we do everything to meet and exceed the customers’ expectations with perfect to
times, accuracy &quality services.

Employee Respect & Dignity

We treat each of our employees with fairness, which includes giving constructive feedback for their
development. We celebrate diversity and seek suggestions from all employees for improvement. We
ensure that responsibility & fairness in all our decision-making.

Team Based Approach

We work towards achievement of our vision & mission as a combines group. We encourage inter &
intra-departmental communications. We treat our colleagues as our internal customers & ensure that
the requirements of internal customer focus are always met.

Best Quality
We ensure that each moment of our time is spent on value adding activity. We always seek ways for
exceeding expectations of customers & colleagues. We also ensure that we do things right, first time
every time.

Good Corporate Citizenship

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We ensure that we contribute our due share to the Govt. we realize that we have a responsibility to the
society in which we operate & we seek ways of playing a positive role for the betterment of the
community at large.

Collaboration of MCB and Nokia

Muslim Commercial Bank in collaboration with Nokia is soon going to launch mobile banking
services in Pakistan, reported Telecom Recorder The Mobile Money Service, Nokia’s flagship
product for mobile banking in developing countries, will be available to all MCB customers with
Nokia phones.

The MCB Bank Mobile Money Service powered by Nokia will allow mobile phone users to
transfer money to another person by using the person’s mobile phone number and also top-up
prepaid connections, pay bills and enjoy cashless shopping.

Nokia would enable MCB-mobile money customers to not only have compelling user
experiences on Nokia handsets right out of the box through a pre-loaded money client, but also
by making available downloadable ‘Money’ clients for MCB branchless banking customers. This
outcome is result of an agreement signed between Nokia and Muslim Commercial Bank in July
2011.

Nokia is already offering mobile money services in the Indian market through Union Bank of
India and YES BANK.

MCB Online Services

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  ATMs.
 Call Centre
 Mobile Banking
 Bill Payments
 Online Banking

MCB Cards

 Smart Card
 Debit Card
 Visa Credit Card

MCB Agriculture Products

 Shadabi Plan
 Khushali Scheme
 Tractor Finance Scheme
 Aabiari Scheme
 Grower Finance
 Dairy & Meat Plan
 Murghbani Scheme
 Baghbani
 Mahigeri Scheme

MCB Products
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 Virtual Banking

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MCB provides the convenience of banking via internet, whether at home, office or on travel, log on to
www.mcb.com.pk and enjoy 24 hour access to all your accounts at MCB for great number of services
such as Funds Transfer, Utility Bill Payments, Mobile Top-ups and much more.

 Detailed Account Summary of all listed accounts.

 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.
 Bulk Funds Transfer for Corporate Customers.
 Cheque Book Request for any of your listed accounts..
 Personal Alerts for reminding of pre-specified events and occasions

Other Services

 MCB MNET
 MCB Salary Club
 MCB Lockers
 MCB SMS Banking
 MCB Full Day Banking

Work Done by Me

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 Providing all kinds of basic information to the customers
 Working as a greeter
 Filling of deposit slips for customers
 Read MCB manual to understand the culture of MCB Bank,
 Update customer ‘KYC’ forms.
 Fill customer account opening forms.
 Read about MCB Islamic banking.
 Work in clearing department.
 Up-date customer current information.
 Study different types of accounts.
 Record cheques amount, cheque number, city name in record book register.
 Issue cheque books to the customer.
 Stamped different documents.
 Sign different documents from branch manager.
 Work in credit department.
 Issue new cash to customer.
 Prepare some documents in MS excel.
 How to locate signature cards for signature verification
 How to make entry for Cash deposit and cash withdraw

Personal Work experiences

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Although there is no formal customer service section but in my opinion I had a wonderful time
while working informally as an internee in the customer services position. Here Mr. Kashif
Maqsood was the customer services person as Operation Manager and he was outstanding at
handling all kinds of queries and problems faced by the customers along with serving as a greeter
and assisting the customers in filling of various deposit slips. My jobs was to work as both a
greeter as well as fill all kinds of deposit slips, cheque’s and remittance form for the customer
plus provide them all types of basic information regarding account opening process, balance
inquiry under the head 307008. I worked diligently and was able to handle everything with
superb ease and perfection.

Business Process

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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

Mr. Mian Raza Mansha Director

Mr. Mian Umer Mansha Director

Mr. Aftab Ahmad Khan Director

Mr. Manzar Mushtaq Director

Mr. Ahmad Alman Aslam Director

Dato' Seri Ismail Shahudin Director

Mr. Abdul Farid Bin Alias Director

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

Hierarchy of Management

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 President

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Regional General Managers

Branch Managers

Operation Managers

Account Officer Cashier Messenger Credit Officer

Business Strategy

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The business strategy of MCB is to provide financial solutions to major segments of its customer
base, namely retail and corporate. Separate business groups have been set up to ensure a more
focused approach in satisfying the diversified customer segments. The Bank has also established
an Islamic Banking unit to offer Shariah compliant products and services, with dedicated Islamic
banking branches in six cities. The plan for future is to further realize the capacity of Islamic
Financial Systems and to bring Shariah compliant network parallel to current retail network of
traditional banking.

Wholesale Banking Group caters to the top tier local and multinational companies. As a result of
organizational restructuring including reinvigorating Investment Banking and beefing up
relationship teams, the Group is in line with the industry’s best practices. MCB has closed some
large deals and is currently working on a number of large transactions including advisory
business. It is a strong competitor in cash management and structured financing activities.Retail
Banking Group focuses on trading and middle market segment primarily for building risk assets
and trade related business. MCB caters to their needs of financing foreign and local trade, funds
transfer and other seasonal requirements. The Bank has renovated a large number of branches
and staffs have been trained for meeting the requirements of SMEs and other retail customers. A
separate SME Financing Division has been set up to provide customized financing solutions to
this very important segment of the economy. The Group also focuses on the development of
innovative consumer asset products for satisfying the personal needs of the customers. MCB has
a significant share of consumer financing business with its House and Car Financing schemes.
The recently launched running financing facility against the mortgage of property is also
expected to go a long way in increasing the quality consumer credit portfolio of the bank.

With the experience gained in the past few years, the Bank is fast progressing towards becoming
the leading bank in consumer business. Other areas such as Banc assurance set newer records as

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well by crossing the Rupees 1 billion benchmark in 2011 owing to the continuous determination
to strengthening this product. Islamic Banking outperformed in terms of improved profitability
and volumes with introduction of additional 11 products and expansion with 8 new branches in
2011 and Privilege Banking, an elite setup, is a benchmark in the industry through means of its
quality banking. They currently have 9 branches across major cities

Procedure to Open an Account

According to my practice in MCB, when a customer wants to open an account, the bank officer gives him
an application form. All information, which is necessary to be known by the bank, are requirements of
the application form. Form also requires the essential documents to be attached by the customer.

Basically following information is required to open an account with MCB

1.Title of Account
2.Full Name of Applicant
3 Occupation
4. Address
5. Telephone No
6.Currency of account
7.Nature of Business
8. Introducer’s Name, Address & Signatures
9.Special instruction regarding the account
10 Initial Amount of the Deposit
11. Signature of the applicant

Evolution of Islamic Banking

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Before the dawn of Islam, the Makka, the Holy city of Arabian Peninsula, was the centre of world trade
and regarded as a safe haven for investors and business people. Traders caravans used to make two
trips-north and south- to and from Makka during the summer and winter. Amid this relative security and
local prosperity in trade and business, it was obvious that primitive system deposits and the utilization
of money shall appear in pre-Islamic Makka society. Mostly goods are exchanged on bartered basis
while payments also made in Dinar and Dirham coins. Dinar coins were in gold while Dirham coins were
in silver. The parity between Dinar and Dirham

The business of money changing was common. Similarly, lending money on interest (Riba) was also
common in Arabian Peninsula. The Jews of Medina, Banu Nadir, monopolized local business. They lend
money to local people and charge high rate of interest. It was their main source of income. They were in
majority and wealthy community as compared to other communities while the Quresh tribe of Makka
was the men of trade and commerce. They pooled financial resources for carrying out large business
ventures and share profit according to proportion of their contribution. (Warde-2006).

However, when Holy prophet (MPBUH) along with his companions migrated to Medina the
concentration of business activities were also shifted from Mecca to Medina. The Holy Prophet and his
companions were experienced and honest traders and the residents of Medina took full advantage of
their presence. Medina was an agrarian city and most of its residents were engaged in agriculture
activities. But after the arrival of the Holy Prophet the entity of that city was changed and it was
emerged as one of the main business cities of Arab region. (K.Ali, Study of Islamic History)The tiny
Muslim state was emerged from the city of Medina and was transformed into the big empire of the
world due to introduction of pro-poor, equitable and Welfare-oriented financial system. The next four to
six centuries saw a continuous expansion of Muslim empire and high living standard of its citizens.

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The Muslim’s love for trade is expressed by Goitein (1967: 55) in these words: “Merchants, craftsmen,
and scholars alike would be combine journeys undertaken in their personal interests with pilgrimages to
holy places. The Muslim pilgrimage, of course, far outstripped in importance those of the other two
religious. In the first place, pilgrimage was one of the main religious duties of a Muslim, whereas in
Christianity and Judaism it was only a meritorious deed. Secondly, from its very inception, the pilgrimage
to Mecca was connected with the great transcontinental trade and remained so throughout the middle
Ages. The standing wish for a Muslim pilgrim was: “May your Hajj is accepted, your sin is forgiven and
your merchandise not remains unsold.”

The first modern experiment with Islamic banking was undertaken in Egypt under cover, without
projecting an Islamic image, for fear of being seen as a manifestation of Islamic fundamentalism which
was anathema to the political regime. The pioneering effort, led by Ahmad El Najjar, took the form of a
savings bank based on profit-sharing in the Egyptian town of Mit Ghamr in l963. This experiment lasted
until l967 (Ready l98l), by which time there were nine such banks in the country. These banks which
neither charged nor paid interest, invested mostly by engaging in trade and industry, directly or in
partnership with others, and shared the profits with their depositors (Siddiqi l988). Thus, they
functioned essentially as saving- investment institutions rather than as commercial banks. The Nasir
Social Bank, established in Egypt in l97l, was declared an interest-free commercial bank, although its
charter made no reference to Islam or Shariah (Islamic law).The IDB was established in l974 by the
Organization of Islamic Countries (OIC), but it was primarily an inter-governmental bank aimed at
providing funds for development projects in member countries. The IDB provides fee- based financial
services and profit-sharing financial assistance to member countries.

IslamicUniversity
Banking in Pakistan
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Pakistan was created in the name of Islam in 1947.All Constitutions of Pakistan have incorporated,
within the principles of policy, the elimination of Riba(interest) as an important objective of the State
policy. Article 38(f) of the Constitution of the Islamic Republic of Pakistan provides: “The State shall
Eliminate Riba as early as possible.” The Objectives Resolution, now a part of the Constitution, as well as
principles of policy enunciated in the Constitution also require to establish an order in Pakistan
“[w]herein the Muslims shall be enabled to order their lives in the individual and collective spheres in
accordance with the teachings and tenets of Islam as set out in the Holy Quran and Sunnah”. In Pakistan
Islamic banking emerged as a response to both religious and economic needs. The earliest efforts for
finding an alternative to the interest-based system could be found in a number of reports submitted by
the Council of Islamic Ideology (CII).

The process of Islamisation of the economy was started in 1980s and mark-up was introduced in place of
interest and separate windows were established in all commercial banks to carry out banking practice
under profit-and-loss system (PLS). Modarba Companies (Floatation and Control) ordinance, 1980 was
enforced and more than 30 Modarba Companies were launched and enlisted at Karachi Stock Exchange.
These companies are still operating and paying handsome dividend every year to their shareholders. The
successful experience of Modarba Companies and people’s enthusiastic participation in their equity
paved the way for initiation of Islamic banking in Pakistan

Functions of Islamic
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Banking
 To collect deposits from the people on profit-and-loss sharing basis.
 To provide all necessary banking services to its customers.
 To finance those projects which generates employment?
 To allocate financial resources (financing) in a way that it ensures equitable distribution of
income.
 To act as a development institution.
 To promote entrepreneurship by providing finance on profit and loss basis.
 To transform saving into investment in such a way that it benefits to the majority.
 To provide expertise and technical advice to the finance-taker in order to improve the process
of production and profitability.
 To disperse financing and discourage its concentration

MCB Islamic banking

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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 Operations and offer Islamic Banking Products. With the help
of Shariah specialists, lawyers and professional commercial bankers, MCB Islamic Banking
provides Riba Free and Shariah Compliant solutions to various customers Segments in a growing
number of cities.

Mission Statement
To play a dynamic role in promotion of Islamic Banking and win customers trust by providing sharia
compliant financial services.

Vision Statement
To become a leader among Islamic Banks of the country in the coming years capturing major share of
the domestic Islamic financial market

Deposit Schemes

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For customers who are looking for a deposit opportunity where they can purse their funds and reap
halal returns on it, MCB offer the following products:

 Al-Makhraj Saving Account

 Al-Makhraj Ianat Account
 Al-Makhraj Term Deposit

Fund Based Facilities

MCB offers 3 broad Islamic fund based facilities:

 Ijarah
 Murabahah
 Diminishing Musharika Equipment

Ijarah Products
MCB’s 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 after the Ijarah has matured.

Under this scheme, MCB will be the owner of the asset, and the customer (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 the asset to the customer (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’

Types of Ijarah

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  Car Ijarah
 Equipment Ijarah

Murabahah
It is 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.

Murabah Sale Price = Cost + Expenses incurred + Agreed Profit

Musharika Equipment
It is a contract through which the bank and its client participate in the joint ownership of a property. The
share of the Bank is further divided into a number of units and it is agreed that the client will purchase
the bank’s share periodically, thus increasing his own share until all the units of the bank are purchased
by him so as to make the client the sole owner of the property.

Department Functions
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It is backbone of banking it is one of the major department of MCB. It consists of
following departments:

 Remittance Department
 Accounts Department
 Current Department
 Clearing Department
 Cash Department

Remittances

The need of remittance is commonly felt in commercial life particularly and in every day
life general. A major function of any banking system is the transfer of funds from one
client or one place to another. By providing this service to the customer the bank earns
a lot of income in the form of service charges. This department deals with local currency
remittance i.e. remittance from one city to another without actually carrying the
currency. MCB uses following instrument for transferring of money:

 Demand Drafts (DD)

 Pay Order (PO)
 Telegraphic Transfer (TT)
 Mail Transfer (MT)

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Accounts Department

Every transaction which takes place recorded in the computer so all transactions in
different departments are forwarded to account department. Since all vouchers from
different departments are forwarded to current department so this department tallies
all such transactions with current department after maintaining the ledger of each
department. Following are different functions performed by this department:

 Preparation of Financial Statements for different time span

 Maintain all accounts of different departments

 Calculation of profit on different schemes

 Calculation of markup on different advances

 Preparation Different types of reports for State Bank

 Daily position of cash & every accounts

 Matching daily summaries of all departments with ledger

The fund deposited in the MCB bank can be classified under the main heads:

 Current Account
 Saving Account
 Term/Call Deposit

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Clearing Department

Clearing is a system by which banks exchange cheques and other negotiable instruments
drawn on each other within a specified area and thereby securing the payment for its
clients through the clearing house. A clearing house is a general organization of the
banks at a given place, its main purpose is offsetting the cross obligation in the form of
cheques. When there are many banks in the country each will receive a number of
cheques drawn on other banks, deposited within for collection.

A clearing house is an organization where these cheques are brought and the mutual
claims of each bank on the other are offset and a settlement is made by the payment of
differences. The representatives off all the banks in Pakistan attend office of the bank
which is performing these duties of clearing house, on each business day at a fixed time.
They deliver cheques that their bank may have negotiated and receive in exchange
cheques drawn on their bank negotiated by other bank. The responsibility of smooth
cooperation of the clearing function lies with the State Bank of Pakistan.

The operation of clearing refers to the collection of cheques drawn on other banks.
These cheques may be drawn on UBL, HBL, NBP, or any other bank of Pakistan. The
respective clerk collects all cheques and enters them in clearing Register. Then he affixes
stamps on these cheques and sorts out cheques of different banks and prepares
Schedule for them. These cheques are sent to clearing house. State Bank of Pakistan has
extended the service of Clearing House. MCB will receive all the cheques drawn by other
banks. Finally they exchange their cheques mutuality. MCB representative will give

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Cheques of UBL, HBL, ABL, NBP, and SBP to their representatives, and get the cheques
drawn on MCB from this representative. Further they settle their account. State Bank of
Pakistan representative will work out the balances and will settle their account from
their balances with State Bank of Pakistan. The amount of the cheques is credited in the
account of depositor on the 2nd or 3rd day. If the cheques are not returned it is under
stood that all the cheques are honoured.

Cash Department

Cash department both deposits and withdrawals go side by side. This department works
under the accounts department and deals with cash deposits and payments. This
department maintains the following sheets, books, ledger of account:

 Cash received voucher sheet.

 Cash paid voucher sheet.
 Paying-in-slip
 Cheque Book
 Cash balance book

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 SWOT Analysis

Strengths
 MCB is the first Pakistani privatized bank and because of its quality management, marketing,
innovation in products and services.
 Owing to all such factors they have established a good reputation in the banking market.
 The name of MCB makes you recall the highly cooperative and professional individuals ready to
serve you with maximum zeal and zest.
 MCB have faster banking services that are making it more prominent in the banking industry
especially in operations and Foreign exchange.
 The customer prefers this bank not only because of its faster speedy service rather due to
reasonable service charges.
 MCB in Pakistan is the also in the list of highly automated banks like Emirates because of its
modern style of banking through fully computerized control and twenty four hour banking.
 The joining of experienced people, advanced management, advance setup and facilities gave
MCB an edge over its competitors

Weaknesses
 The majority of people are not well aware about the products of MCB.
 Therefore it should advertise extensively especially RTC and Master Cards.
 A behavior has been noted that bank tries to feel at ease with good looking, rich and educated
people and the poor looking customers feel some bit strange in the environment of the bank.

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  The bank employees should try to accommodate behaviourally all type of customers.
 In MCB there is lack of specialized skill because of job rotation policy of human resource
department.
 The bank should concentrate upon increasing its abilities on individual service basis.
 Mismanagement of time is another big mistake in MCB branches, the bank official time of
closing is 5:30pm but due mismanaging of time allocation and work the staff is normally on their
seats till 7:00 or 8:00 clock

Opportunities

 MCB may enhance its Rupee Travelers Cheques (RTCs) sales by searching for new market niches.
 It can introduce debit card system or may convert the existing ATM cards into a complete debit
card.
 New products like personal loans mortgage and auto leasing and each management which
diversify credit risk and add to revenue generating products are currently provided in big cities
like Lahore, Islamabad, Karachi and Rawalpindi, these products may be tested for success in
other areas like Peshawar, Quetta and Sargodha.
 Developing network for electronic transaction require huge investment which can’t be made all
at once, there exists an opportunity for MCB to enter into agreement with other banks to use
each other’s ATMs which will result in an increased convenience to MCB customers and
customers of other banks.

Threats
 Foreign banks operating in Pakistan are playing a significant role by incorporate in gnaw
technologies and providing better quality services thus creating a threat to the local banks
especially to MCB which tries to develop core competence in electronic based products.
 Policies of privatization, foreign exchange reforms and structural adjustments have increased
the inflow of foreign resources through direct and portfolio investment.
 In trade financing the role of foreign banks is even more significant as approximately 30 percent
of the total trade of the country is transacted through them.

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  Change in government policies has affected the banking business. Still banks have to wait to get
permission of state bank.
 The freezing of foreign currency accounts is a vital example of letting people not to trust on
banks.
 The Competition has become severe by the entrants of so many banks, So to exist one will have
to prove himself in its services through excellent management and will have to satisfy its
shareholders. Otherwise he will be out the market.

Future Outlook

MCB is following a multi-pronged plan, whose key features are as follows:

It aims to be the leader in transactional convenience. To get top market share, the bank will continue to
invest alternate channel payment capabilities and services as well as getting a larger share of transaction
driven businesses like remittances, cash management, payroll and trade.
Continuation of investment in branches to make them more sales and service oriented. Through
introduction of new sales and service model, strengthened transaction processing and leading financial
products menu, the bank aspires to achieve this ambition. In addition to the core focus on mass, mid
market and corporate segments, the bank will continue down the path of further segmenting our
customer needs and developing focused customer propositions.

Finally, controls and efficiency is central to the bank s existence. It will build stronger controls, develop a
unit cost culture and generally be on top of the game. The global financial crisis has badly effects
banking systems. The financial sector is facing problems but its better than other neigh boring countries
due to regulations and the role of SBP to take timely corrective measures. Measures include relaxation
of CRR and SLR in phases. The banking sectors spread continues its rising trend after witnessing dip to
the level of 6.78% in June 2008 that has being taken as an after effect of minimum profit payment of 5%
on saving accounts. The profits show that long term investment in Pakistani banking system will be
lucrative, as the assets quality is quite sat is factory. Pakistan continued to follow stance of tightening of
the monetary policy using the high interest rate as a tool to contain inflationary pressures at the cost of

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stalled economic activities. It can be noted that SBP already charging lower mark-up rate from exporters
against export refinance facility under EFS in order to enable them to become competitive in the
international market. The trade and industry however feels in order to ignite a spark in the dull and
dreary economic conditions and to come out of the persisting recession the incentive of low interest
should have been given to all stakeholders across the board to achieve the desired results.

Some of the market expectations are that current discount rate at 15% is likely to be on a slope by at
most 400bps (basis points). In fact, the cut in the interest rate was long overdue as done by other
economies elsewhere as well as in the face of stability returned into macro situation under the IMF
programmed. Trade experts feel that in current times, low cost credit is vital to stimulate the economy
and international trade. Pakistan export shave a combination which can be well suited to the current
world economic situation, i.e., low value added goods have income elasticity and are least likely to be
affected by the economic slowdown. Challenges faced by the economy, in general, and the banking
sector, in specific, include restrained liquidity, slowdown of economic activity, and high inflation. Despite
these issues, MCB has been able to maintain its profitability and only concern is of higher NPLs, which
have to be checked as it has surpassed to alarming levels. Besides this, the bank is equipped to face
challenges with its dynamic management and trained work force. In this situation the MCB is growing
day by day and is going to acquire the RBS bank, which shows that the MCB is the market leader and
management is doing work in this crunch and getting the benefit of this and purchasing the banks to
expand.

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 Identification of Plausible problems

 Lack of knowledgeable staff working in the branch.

 No proper ventilation system.
 Not proper chairs for the customer.
 No proper shelves of banking books and they are separated here and there.
 ATM’s performance is so bad (card stuck and some other problems).
 There is no lighting system in the branch.
 There is no LCD in the branch.
 Not treat customer in good mananers.
 Each cabin has very bad conditions and all the glass sheet are broken from different sides.
 Server issue occurs many times; sometimes it could be disconnected from the main head office
and maintained after three or four hours.
 There is no proper person of banc assurance and in the credit department.
 There is no maintenance of notice board.

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 Recommendation and Suggestions

 Proper ventilation system is going too maintained in the branch.

 Changing the ATM machine.
 Oracle 10.1 MCB software has been installed in the computer system to solve the issue of server
disconnected.
 Cabin could be maintained proper wood and glass fiber should be used to make a good impact
on the customer.
 Proper maintenance of notice board new information can be on notice board.
 Proper recruitment of banc assurance and for the credit department
 Here should be decentralization in the structure of MCB bank.
 Human Recourse Department must exist at least every branch.
 Management should make the market survey time to time, after regular intervals to have latest
and authentic information about market and other influencing factors
 Marketing campaign should be stronger so that people could fully get aware about MCB bank.
 For opening account in bank, to pay or get services from MCB, there must be online
confirmation of NIC from NADRA.
 MCB should make more investment in Islamic banking and open at least one Islamic Banking
branch in every city of country.

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 They must write the bank break timing in BOLD letters in front of branch’s main
entrance.(Including Friday)
 There must be an area for male staff members where they should smoke easily.
 Everyone have to perform his/her particular assignments.
 They must make another separate washroom for staff & one for Public use.

Conclusion

 I concluded that MCB is fully committed, motivated and aimed to do exactly what is mentioned
in its mission statement.
 MCB has ability to face the challenges of present dynamic world.
 Skilled and highly talented staff is keen to provide best services to the customers in most
efficient and effective way.
 MCB management imposes close observation on any uncertain, ambiguous events; Necessary
steps are briskly adopted to reduce risk and uncertainity.
 MCB management is fully aware of present Banks Crises. And has taken necessary steps to
satisfy all of its customers about various rumors that are in the air.
 MCB aims to build long term relationships with customers, thus making profitable relationship
with them.
 MCB pays full concern towards its employees. Its rewards and motivates them by rewarding
different bonuses.
 MCB is making progress by leaps and bounds. Innovation in collaboration with creative ideas is
taking it to new heights, enabling it to touch climax.
 MCB management also seems interest to prevail over international market.
 MCB has always showed full responsibility towards various societal activities.

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 Finally we conclude that MCB’s journey towards success of heights is going on…If it keep on
moving as so, soon it will touch maximum fame..Even beyond the imagination.
 Their focus would be to constantly seek out growth opportunities through increased quality assets
and by offering a wider range of products and services to their esteemed customers.

Bibliograph

 http://www.mcb.com.pk y
 http://ilm.com.pk/directories/banks/mcb-bank-limited-pakistan

 http://www.scribd.com/doc/14985166/report-on-information-system-of-Muslim-Commercial

Bank

 http://www.studysols.com/mcb-bank-limited-pakistan

 http://www.mcb.mu/en/self-service/internet-banking

 http://www.studysols.com/mcb-bank-limited-pakistan/

 http://www.scribd.com/doc/21694200/Internship-Report-MCB-Bank-Ltd

 http://www.scribd.com/doc/24131000/8/ORGANIZATIONAL-STRUCTURE-OF-MCB-BANK-LTD-

%E2%80%93

 http://www.scribd.com/doc/37419488/Introduction-of-Mcb

 http://www.scribd.com/doc/54933555/17/MANAGEMENT-HIERARCHY

 www.scribd.com/doc/.../12/Banking-Sector-Supervision-in-Pakistan

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 http://www.pakistanbanks.org/industry.../news/banking.../2011/01.html

 http://pakistan.deposits.org/providers/mcb.html

 http://www.scribd.com/doc/37419488/Introduction-of-Mcb

Appendices

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