MCB

Internship Report

2008

History and Introduction of Muslim Commercial Bank

Muslim Commercial Bank (MCB) unfolds 62 years of growth. MCB is not an overnight success story. MCB Ltd formerly known as Muslim Commercial Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited company. The bank was established with a view to provide banking facilities to the business community of the South Asia. The bank started corporate life in Calcutta on July 9, 1947. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka 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 62-years legacy of trust in its customers and the citizens of Pakistan. The bank was nationalized in 1974 during the government of Zulfikar Ali Bhutto. This was the first bank to privatize in 1991 and the bank was purchased by a consortium of distinguished Pakistani corporate groups led by Nishat Group. As of June 2008, the Nishat Group owns a majority stake in the bank. Founded in 1948, Nishat Group is one of the leading and most diversified business groups in Pakistan. The group has strong presence in the most important business sectors of the country such as banking, textile, cement and insurance. Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played instrumental role in its success. In recognition of Mr. Manshas contribution, the Government of Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the country. 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 loan book through improved risk management processes. MCB is Pakistans fourth largest bank by assets having an asset base of PKR 445 billion at 2008 on a consolidated basis and the largest bank by market capitalization. The Bank has a nationwide

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distribution network of over 1,050 branches. In 2008, MCB reported an after tax profit of PKR 15.3 billion on a consolidated basis.

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

Mission Statement
We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us.

MCB VALUES
Integrity
We are the trustees of public funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.

Respect
We respect our customers values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed.

Excellence
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward.

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Customer Centricity

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Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solutions.

Innovation
We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.

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MCB Internship Report Corporate Profile

Board of Directors
Mian Mohammad Mansha Chairman

2008

Mr. S. M. Muneer

Vice Chairman

Mr. Tariq Rafi

Member

Mr. Shahzad Saleem

Member

Mr. Sarmad Amin

Member

Dr. Muhammad Yaqub

Member

Mian Raza Mansha

Member

Dato' Mohammed Hussein

Member

Mr. Aftab Ahmad Khan

Member

Mr. Abdul Farid Bin Alias

Member

Mian Umer Mansha

Member

Mr. Muhammad Ali Zeb

Member

Mr. Atif Bajwa

President / CEO

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Audit Committee
Mr. Tariq Rafi Chairman

Dr. Muhammad Yaqub

Member

Dato' Mohammed Hussein

Member

Mr. Aftab Ahmad Khan

Member

Mr. Muhammad Ali Zeb

Member

Mr. Malik Abdul Waheed

Member

Human Resources Committee

Mian Mohammad Mansha Chairman

Dr. Muhammad Yaqub

Member

Mian Raza Mansha

Member

Mr. Shahzad Saleemn

Member

Mr. Atif Bajwa

Member

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Risk Management & Portfolio Review Committee

Mr. Shahzad Saleem Chairman

Mr. Tariq Rafi

Member

Mr. Sarmad Amin

Member

Mian Raza Mansha

Member

Mian Umer Mansha

Member

Committee on Physical Planning, IT System & Contingency Arrangements

Mr. Sarmad Amin Chairman

Mr. S. M. Muneer

Member

Mr. Tariq Rafi

Member

Mian Raza Mansha

Member

Mr. Abdul Farid Bin Alias

Member

Mr. Atif Bajwa

Member

Business Strategy & Development Committee Mian Mohammad Mansha Chairman

Mr. S. M. Muneer

Member

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Mr. Shahzad Saleem

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Member

2008

Mian Raza Mansha

Member

Dr. Muhammad Yaqub

Member

Dato' Mohammad Hussein

Member

Mian Umer Mansha

Member

Mr. Atif Bajwa

Member

Chief Financial Officer

Mr.Salman Zafar Siddiqi

Principal Office MCB 15 Main Gulberg, Lahore

Registrar's and Share Registration Office MCB 15 Main Gulberg, Lahore M/s. THK Associates (Pvt.) Limited State Life Building No.3, Dr. Ziauddin Ahmed Road,Karachi.

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Deposits
The MCB banking system performs various functions, out of various functions the most important function is the opening of an account in the bank. It is very easy and simple for anyone to open the account in the bank without any difficulty.

Procedure for Account Opening

 First of all an application form is filled up which requires necessary details.  Than the signature on the specimen card.  Than allot the account number.  Than the bank issued letter of thanks to its customer.  At the last stage the cheque book is issued to the customer.

Types of Customers
 Individual Account Holders.  Joint Account Holders.  Partnership Account Holders.  Joint Stock Company Account Holders.

Types of Accounts
There are following types of accounts in the MCB Ltd.:

Pak Rupee Current Account

MCBs Pak Rupee Current Account offers you 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. The following are the key points related with it:

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 Low minimum balance requirements.  Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.  Use your MCB Smartcard to shop at thousands of merchants across Pakistan.  Hundreds of 9-5 full day banking branches.  In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day.

Pak Rupee Savings Account

MCBs Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment. The key points are:  Low monthly average balance requirements.  Profit paid into your account every six months.  Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.  Use your MCB Smartcard to shop at thousands of merchants across Pakistan.  Hundreds of 9-5 full day banking branches.  In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day.

Khushali Bachat Account

It is one of the most popular products of MCB. It is important because of the following:  Low initial deposit.  The account can be opened by people from all walks of life and still avail the facility of profit.

Mahana Khushali Bachat

MCB Monthly Khushali Scheme provides you the following:

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 A steady income every month.  Just purchase a Monthly Khushali Certificate.  You will enjoy a steady income of your total deposit every month.

2008

Pak Rupee Term Deposit

It has the following characteristics:  Highly attractive profit rates.  Multiple tenors from one month onwards such as 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits.  Option of premature encashment.  Option for ATM debit card to access profit earned.  Option for automatic renewal of term deposits.

Saving 365
The MCB Saving 365 account says that the higher you save, the higher you go. MCB Savings 365 Gold Account offers you a wide range of attractive profit rates. The characteristics of saving 365 account are:  The higher your balance, the higher your rate.  Profit calculated on daily basis.  Profit paid into your account every month.  Open your account with Rs. 500,000/- only.  Cash deposit and withdrawal facility at hundreds of branches nationwide.

Foreign Currency Account

Enjoy the confidence of operating an international account, locally. MCB Foreign Currency Account offers you the option of earning attractive returns on your Foreign Currency Investment. It has the following key characteristics:

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 Open your account in US Dollar, UK Pound Sterling, or Euro.  Open for as little as US$ 500 or equivalent.  Unlimited transactions at your branch.  Free Foreign Currency cash deposit and withdrawal facility.  Rate of Return directly linked with international market.  Profit paid into your account every six months.  Foreign Remittances facility available.  Countrywide network of Foreign Currency Branches.  Cash withdrawal in PKR equivalent.

2008

 Your foreign currency account is exempted from Zakat and withholding tax.

Smart Dollar Account

Discover a sensible solution that helps make more of your dollar savings. MCB Smart Dollar Account is a sensible way to maintain or grow your US Dollar deposit across USD Current, Savings or Term Deposits. The key points related with it are as follows:  USD Current, Savings and Term Deposit accounts.  Competitive profit rates.  Attractive incentives being offered, if you maintain the minimum amount of USD 10,000/- or above.  Free collection for crediting Foreign Currency Account.  Free Bank Statements.  Free Smartcard.

Business Account
An upwardly mobile way to bring down costs on your way up. MCB Business Account lets you build your business through the accrued savings from discounted transaction fees, and more. The following are the key characteristics of business account:  Higher the balance, the higher the number of free transactions.

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 Open a Business Account with Rs.50,000 only.

2008

 Unlimited free cash deposit and withdrawal facility at hundreds of branches nationwide. When you maintain average monthly balance of Rs.100,000 or above than the following free services will be provided by the bank:  Demand Drafts/Pay Orders.  Cancellation for Demand Drafts/Pay Orders.  Cheque Book.  International ATM Gold Card.

Saving Xtra
Grow with MCB Xtra by saving more and earning greater profit. MCB Savings Xtra Account offers you a wide range of attractive profit rates. It has the following characteristics:  The higher your balance, the higher your profit.  Now avail attractive rates up to 8.5%.  Profit calculated on monthly basis.  Profit paid into your account semi-annually.  No joining fee on Debit/ ATM Card.  50% Discount on Lockers.  Cash deposit and withdrawal facility at hundreds of branches nationwide.  Unlimited number of ATM withdrawal transactions.  3 Free withdrawal transactions through the branch every month.

Fixed deposits
Fixed deposits are those deposits which are by the bank under the conditions that they will not be payable on demand but will be payable under fixed or determinable future time date.

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MCB Loan

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MCB provides the facility to the people who need advance money to meet their requirements. For getting the advance the following steps are there:  Information required by the bank.  Preparation of credit proposal.  Sanction advice.  Other terms and conditions.

Types of Loans
Following are the types of loans through which the MCB facilitates its customers:

MCB Business Sarmaya

Good cash flow is the key to any successful business.MCB Business Sarmaya offers running finance facility against your house/flat, insuring a steady cash flow for your business. So now you can breathe easy, because Business set....tau Life Set. MCB Business Sarmaya is the best Running Finance facility against your residential property which empowers you to manage your business dealings better. So act today and get MCB Business Sarmaya and thus improve your business, avail lucrative opportunities and expand your business, with absolute satisfaction of cash flows. It provides the following facilities to customers:  Running finance facility, to use as and when you want.  Financing up to Rs. 20 million.  Pay back when you want.  Only monthly mark-up payment.  Lower mark up and that too only on utilized amount.  Option to club income to avail higher financing limits.

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

2008

 Fast and hassle free processing of application after completion of your documents.  Doorstep service and assistance from our dedicated sales staff to fill and submit application along with documents.  Access your Business Sarmaya account through our vast ATM and branch network anywhere in Pakistan.  Available in all major cities i.e. Karachi, Lahore, Faisalabad, Rawalpindi and Islamabad.  Get discounts if you are already a customer of similar facility at another bank.

MCB Car4u
Life in the fast lane can be really slow without a car. MCB Car 4 U makes it a breeze to finance/lease your new/used car. So get up to speed, because "Kahin Na Kahin Tau Hai 1 Car 4 You". Life is like a chess board. You plan your career options. You analyze your business moves. But when you really want to improve your life, you make a power move. MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. The key points are:  Option for financing or leasing.  Financing tenures from 1 to 7 years.  Option for new as well as used cars.  Options for local as well as imported cars.  Financing up to Rs. 2.5 million.  Option for early payment.  Option for replacement loan.  Lower mark up rates.  Lower insurance rates.  Minimum 20% down payments.  Fast and hassle free processing of application.  Priority delivery on different vehicles.  No processing fee if the case is declined.

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 Pay your down payment after your loan is approved.  Currently available in the major cities.

2008

 Get discounted rate if you are already our customer for Personal Loan, Pyara Ghar or Business Sarmaya.  If you are our branch customer, you can avail this facility anywhere in Pakistan.

MCB Pyara Ghar

Owning your dream home has never been easier. Some destinations require a long wait. Like waiting for a home of your own. But with MCB Pyara Ghar it is now easy to step into your home and start living a real life. MCB Pyara Ghar is the most sensible option for purchasing, building, or renovating your new/existing home. MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase, Renovate or Construct your home the way you have always wanted. Having your own home was never so easy. It offers you a range of financing options to help you realize your dreams. After all ", Apna Ghar Pyara Ghar". It has the following key points:  Lower mark up rates.  Financing upto 80% of the value of your house/flat.  Options to club income to avail higher financing limits.  Equal monthly installments.  Fast and hassle free processing of application.  Doorstep service and assistance from our dedicated sales staff to fill and submit application along with documents.  Available in all major cities.  Get discounts, if you are already a customer of a similar facility at any other bank.

Running Finance
MCB provides running loans to its customers. The key points are:  The max time of repayment is one year and it is according to will of customer.

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purposes.

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2008

 This type of advances is given to Trade, Commerce and manufacturing general  These finances as evident by the name are given to meet their daily needs.  The mark up is charged on daily balances.  It is drawn through cheque.

Demand Finance (DF)

The duration of DF is more than running or Cash Finance. These are made in Lump sum and are there is a permission to repay the amount in periodic installment. Upon receipt of documents negotiated by the seller bank, the opening bank makes sure that documents are according to terms and conditions of the credit. Bank makes the payment to the party against document and upon expire date, bank receives back money with mark up rate.

Export Refinance Part-1 (Pre-Shipment)

The government pursues the banks to provide the loan to the exporters to promote the exports. The bank provides this type of advance facility to only those exporters who have not enough money to make shipment. Bank provides the loans to the customer at the rate of specific % for period of 150 days.

Export Refinance Part-1 (Post Shipment)

This means that the customer has enough amounts to make first shipment but not more. So the bank issues a loan to the exporter. Finance is provided by the SBP to the exporters for purchase of raw material, its processing, Packing and shipment. In case, if the party is unable to make the shipment within specify days of financing. The party has to pay certain amount of finance as asked by the SBP and after specify days the rate of mark up also goes up. So usually exporters try to make the shipment within the fixed period set by the SBP.

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Agricultural Loan

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2008

Bank provides the agriculture advances in order to enhance and support the agriculture sector of the country. Banks Agriculture division deals with the agriculture advances. These advances are of following types:  Farm Credit  Non Farm Credit Farm Credit These are the credits provided by the MCB or purchases of inputs for development of agriculture sector. Following are two main Sub classes of Farm credit:  Production Finance  Development Finance Non Farm Credit The second major form of agriculture advance is Non Farm credit. These loans are provided to boost up agriculture sector to provide the sources of earning of foreign exchange as well as to provide employment opportunities to people. These loans are providing against mortgage of land as security or pledge of equipment as collateral security. These are long term or medium term investment depending upon the project. Following are the different types of small industries for which loans are provided to improve the economy of the country.  Fish Farm  Cattle Farm  Poultry Farm Khushali Scheme Under Khushali Scheme loans/finances are allowed for farm/non farm credits which include fixed investments/working capital requirements. Amount of finances sanctioned depend upon the credit requirement and collateral. Financing for land leveling/development, heavy equipments,

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agriculture machinery, vehicles/transport for agri purpose are covered under this scheme. There may be other development projects proposed by the farmers falling within the ambit of agri financing, which can be considered under this scheme. It has the following features:  Short, medium and long term financing facilities are extended.  The repayment is scheduled on the basis of farmers convenience on annual/ biannual basis. With the MCB provides the following agriculture schemes:  Shadabi Plan  Tractor Finance Sheme  Aabiari Scheme  Growers Finance  Dairy and Meat Plan  Murghbani Scheme  Baghbani Scheme  Mahigeri Shceme

Rupee Travelers Cheque

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 travelling and in all walks of life. MCB Rupee Traveler's Cheques- The safest way to Carry Cash Rupee Travelers Cheques Features are as follow:  Buy them from any of the designated branches in Pakistan.  MCB RTCs are safe to carry and can be used without any inconvenience especially by Travelers.  At any designated MCB branch.

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 In case of loss or theft, you can get the full amount back.

2008

 Due to special printing and safety precautions, Cheques cannot be duplicated.  Available in denominations of Rs 1000, Rs 5000, Rs 10,000.  Validity is up to 10 years from the date of purchase.  Customer Service Facility is available at (021) 111-000-123.  More than 900 MCB Authorized branches are selling and purchasing Cheques all over Pakistan.

Gift Cheque
Now there is no need to worry about finding the right gift for your friends and loved ones. MCB Gift Cheques are the perfect gift for birthdays, weddings, graduation, religious festivals and many other occasions. Gift Cheque is beautifully packed in a Gold / Silver envelope with a personalized Gift Card designed to suit all occasions. They are safer than cash, because they can be replaced if lost or stolen. They are also available at all TCS Express centers round the clock.

Remittance
Transfer of money or equivalent to money from one branch to another branch of the same bank is called remittance.

Important Terms
Originating branch
It is the branch from which money is send to another branch or the point of origin of remittance.

Responding branch
The branch which receives the instrument or money for remittance is known as Responding Branch.

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Types of Remittance

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Remittance is classified into following four types:  Inward Remittance  Outward Remittance  Inland Remittance  Foreign Remittance

Types of Payment
MCB uses following types of payments:  Demand Draft (DD).  Pay Order (PO0.  Electronic Mail Transfer (EMT).

Demand Draft
 Demand Draft is used for the transfer of money outside station.  A draft is an instrument drawn by a bank in favor of any person on a branch of its own bank or any other bank to pay a certain amount of money which is demanded to the person named on it.  It is not necessary for the demand draft that applicant or recipient account should be open in originating and responding branches.  It is one of the cheapest methods of transference of money within the country or outside the country.  Applicant has to fill in the application form for availing the facility of demand draft.  After depositing the amount of draft, remittance officer prepares the cheque of demand draft.

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Pay Order

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 Pay Order is used as an instrument for transfer of money within station or city.  Pay order is written order, which is issued and received by the same bank or drawn and payable on same branch.  For pay order it is not necessary that applicant should be account holder.  It is used for local transference of money from one person to another.  The bank charges excise duty and flat rate from the applicant.

Electronic Mail Transfer

The transfer of money from one branch to another branch of the same bank through electronic mail is called electronic mail transfer.

Corporate Banking
The MCB performs various functions in corporate banking. Few of these functions are:

Term Loans
You as an individual can gain and benefit the most through MCB Consumer Banking. In MCB you get friendly, efficient and attentive personalized banking services - a unique banking relationship experienced by each MCB client. MCB offers Short to Medium Term Finance to meet capital expenditure and short term working capital requirements of our customers. The loans are structured on the basis of underlying project characteristics and cash flows of the business.

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Working Capital Loans

Based on the customer's specific needs, the Corporate Bank offers a number of different working capital financing facilities including Running Finance, Cash Finance, Export Refinance, Preshipment and Post- shipment etc. Tailor- made solutions are developed keeping in view the unique requirements of your business.

Trade Finance Services

Under Corporate Banking MCB offers trade finance services that include an entire range of import and export activities including issuing Letters of Credit(L/Cs), purchasing export documents, providing guarantees and other support services.

Cash Management
Our network of over 900 branches in Pakistan enables us to collect and disburse payments efficiently with our cash management services. This also enables us to offer you a choice of paper based or electronic fund transfer solutions including collection amounts, cross branch online transactions etc.

Investment Banking
Our Investment Banking Team has emerged as a leading player in Pakistan's Investment Banking arena. The Team handles advisory, corporate finance and capital markets related transactions. Within these areas, the team has developed expertise in:  Private Placements  Debt/Equity Underwriting  Term Finance Certificates  Loan Syndication  Arrangement of Non- Fund Facilities

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 Privatization

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 Mergers and Acquisitions  Corporate Advisory

2008

MCB Services
The MCB provides following services to its customers:

MCB ATM Services

Welcome to a world of convenience with the MCB ATM Card. "It Works. Anytime, Anywhere in Pakistan and abroad. MCB ATM Card is accepted at over 3500 ATMs nationwide. MCB has the largest and most widespread ATM network in the country. MCB ATM Card enables you to access fast cash, inquire account balance, transfer funds and pay utility and mobile bills/mobile top-ups from any of over 420 MCB ATMs in the country. The MCB ATM Card has the following two categories:

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.

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 cardholder has to make at least two transactions to withdraw the full amount of Rs. 25,000.

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Smart Card

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MCB now brings you MCB Smartcard -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 Smartcard will help you live a smarter life. It not only helps you manage your expenses, but also eliminates undue interest on your day to day credit card transactions. Your balance is always within your reach and you spend accordingly. MCB 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

SMS Banking
At the forefront of technological excellence, MCB proudly introduces MCB SMS 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 SMS Banking service is available to all MCB ATM cardholders, 24 hours - 365 days. It has the following characteristics:  Banking at a glance  Banking on your fingers  A free service This service is available for Mobilink and Ufone customers only.

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. Our well-abreast and friendly call center team is available throughout the year to ensure that your daily financial obligations are taken care of guaranteeing you a good nights sleep. You can ask following information through call centers:

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 General Inquires.

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 Financial services and non financial services.

2008

Money Gram
Money Gram is a global leader in worldwide money transfer services, working closely with specially chosen agents in 176,000 locations across 190 countries and territories, offering a customer-to-customer money transfer service which is fast, convenient and trusted. They provide a secure way to send and receive money to and from your loved ones worldwide and make sure that your money gets to where its needed quickly. Transactions are normally available in less than 15 minutes.

Special Features
Anyone can receive money through 100 designated MCB branches displaying the Money Gram logo across Pakistan.  Receive Money in as little as 10-15 Minutes.  No Bank Account needed.  Fast, Secure and Easy.  Compliant with State Bank of Pakistan regulations.  MCB Bank Ltd. does not recover any charges from the Receiver against money received through Money Gram.

How to Receive Money

 Ask the person who is sending you money to give you your 8-digit reference number.  Visit a designated MCB Branch displaying the Money Gram logo. Please bring your Computerized National Identity Card (CNIC) and your 8-digit Reference number with you.  Complete our simple receive form and show your identification you will then be given your money, usually in your local currency.

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MCB Islamic Banking

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.

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.

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

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 is 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.

Shariah Advisor
Dr. Muhammad Zubair Usmani, working as Sharia Advisor in the bank since July 2000 is a prominent scholar having Ph.D. degree in Islamic Finance as well as Fazil Takhassus from Jamia

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He has attended and

Darul Uloom Karachi, (i.e. specialist of Islamic Fiqh and Fatawa).

addressed several international and local seminars / conferences as guest speaker in Pakistan as well as abroad. He has also worked as Research Scholar and member of various forums and committees formed for promoting the cause of Islamic Banking in Pakistan and abroad. All products are approved by our Sharia Advisor Dr. Muhammad Zubair Usmani and these are further approved and vetted by Dar ul Ifta, Jamia Dar ul Uloom Korangi Karachi. Majority of the products are signed by Maulana Muhammad Taqi Usmani.

Legal Advisor
M/s Mohsin Tayebaly & Co., Advocates & Legal Consultants, has vetted all documentation. The Co. for this purpose not only has expertise in legal and corporate affairs but also have competent lawyers possessing knowledge of Sharia.

Deposit Schemes
If you are looking for a deposit opportunity where you can purse your funds and reap HALAL returns, MCB offers following products:

Al Makhraj Saving Account

The minimum deposit requirement for Al-Makhraj Saving Account is only Rs. 5,000 and profits can be earned semi annually.

IANAT Account
If you are looking for a chequing account that gives you the ease of doing unrestricted number of transactions, the bank offers 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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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 2 years.

Fund Based Facilities

MCB offers 3 broad Islamic fund based facilities:  Ijarah  Murabahah  Diminishing Musharika Equipment

Ijarah
MCBs 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 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. We currently offer 2 types Ijarah Products:  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

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Diminishing 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 banks 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.

Up Coming Products
Following are the products which are expected to be in the near future:  Diminishing Musharika Housing  Guarantee  Istisna cum Murabahah  Istisna Post Shipment

Management of Deposit Schemes

Deposits shall be managed under the Mudaraba arrangement, under which customer is the Rabbul-Maal and bank is the Mudarib. Bank, being the Mudarib, shall be responsible for placing the funds in secured as-well-as profitable Islamic ventures on the basis of Ijarah, Murabaha, Mudaraba, etc and shall share a portion of profits as a compensation for its efforts. The profit sharing ratio shall be announced at the beginning of month. Rabb-ul-Maal, on the other hand, shall earn the net profit after all deductions, and this total earning of the Rabb-ul-Maal shall be shared by the individual depositors on the basis of weightages, which shall be announced at the beginning of the month. In the event of loss, Mudarib would lose its profit share which otherwise would have been paid to it in the cases of profit, and Rabb-ul-Maal shall bear the net loss.

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How is the Return Halal

Care would be taken in ensuring that both the arrangements of accepting deposits from customers, and investing that amount in Islamic Modes of Financing, are done in a strictly Shariah-compliant manner. On the basis of approval from reputed Shariah scholars, who belong to internationally renowned university for Islamic education, products have been designed to not only suit the needs of depositors/ borrowers but also remain strictly in compliance with Islamic Shariah. Moreover, our Shariah Advisor, Dr. Maulana Muhammad Zubair Usmani would also monitor our transactions on a daily basis. Elements of Riba have been eliminated completely from the contracts so that income earned through investments in assets is completely halal and is shared by the depositors in a Shariahcompliant manner. A transparent system of weight ages is used to calculate the profit rates on the basis of which profits are disbursed to each customer. These weight ages are announced by the bank at the beginning of each month/ term and posted on the Notice Boards of Islamic Banking Branch as well as on our website.

How to Make Deposits in these Schemes

All that shall be required to do to deposit funds with us is to fill in the form, and pay us through any mode convenient to the customer i.e. Cash, Cheque, or Pay Order in favor of MCB Bank, Islamic Banking Branch. Funds may be deposited at Islamic Banking Divisions branch, or at any of the authorized MCB branches.

MCB Virtual Banking

MCB Virtual Internet Banking offers you the convenience to manage and control your banking and finances; when you want and where you want. MCBs Virtual Internet Banking facility is:  Simple  Secure  Free of cost

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MCB Virtual Internet Banking allows you to access banking services, 24 hours a day, 7 days a week and throughout the year.

What do MCB Offers

MCB Virtual Internet Banking offers a wide range of online services which makes your banking accessible anytime and from anywhere.  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.  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.  Bulk Funds Transfer for Corporate Customers.  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.  Mobile Recharge facility for all Telcos.

How can someone start?

The procedure is very simple:

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 Click on the register link on the MCB Virtual Banking page & complete the application form, suggest your MCB Virtual Internet Banking User ID choices and click submit.  Visit any MCB ATM, select the option Service Requests and on the next screen select Internet Banking Reg. Wait a while for the Registration to complete and the appropriate message will be displayed.  Check your registered email address for the registration confirmation containing your Virtual Internet Banking Password and Customer number.  With your Customer Number handy, call the MCB Call Centre on (021) 111-000-622 to obtain your User ID. After verification User ID will be disclosed to you, enabling you to start using the MCB Virtual Internet Banking service. The virtual banking includes the users:  Individuals  Corporate

MCB Selects SYMBOLS

PAKISTAN, SINGAPORE, OCTOBER 24, 2002 - Muslim Commercial Bank largest private bank in Pakistan and System Access, a leading global universal banking solutions provider, are pleased to announce the signing of agreements to select SYMBOLS to run the bank's business operations. The Bank will be implementing the full suite of the latest version of SYMBOLS Version 8. Muslim Commercial Bank will run SYMBOLS finance modules to deliver personalized services to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will serve as its core banking transaction processing engine. By implementing SYMBOLS, Muslim Commercial Bank aims to raise the level of its customer service and its time to market in new product offerings for its three cores banking businesses in

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progressive Bank.

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Corporate, Commercial and Consumer Banking - retaining its market leadership as Pakistan's

"On the technology front, we are impressed with SYMBOLS's multi-tier architecture. It gives us the scalability for future growth - a critical consideration in meeting the real-time needs of our extensive ATM network, over 1,000 branch network and growing online services. The adoption of Java-based technology also provides an added advantage for easy integration of our legacy systems" says Mr. Ali Munir, Senior Executive Vice President, MCB. SYMBOLS application architecture is centered on a customer relationship management foundation that facilitates customer knowledge, interaction, and relationship development and better management of risk at the customer level. Commenting on the business benefits, Mr. Ali Munir says, "The customer centric nature of SYMBOLS allows us to enjoy a complete 360-degree view of our customers' interaction profile across the Bank, with a consistent dialogue between our customers and the Bank across multiple service delivery points." "Muslim Commercial Bank requires a proven, scalable system that addresses both speed-tomarket for new products and services with excellent customer service levels across the bank in real-time. SYMBOLS have again proved itself to satisfy every aspect of technology and functionality as a true universal banking solution." comments Mr. Ramesh Nava, Senior Vice President, Asia-Pacific Operations, and System Access. System Access will provide implementation, training and support to Muslim Commercial Bank.

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Branch Introduction
According to my experience of internship in a branch of MCB. I have seen that Departmentalization was not one clear and one employee was overall handling complete department. So I have working with the head of following department.

Learning as a Student
During my internship in MCB I worked hard and successfully completed all the task/duties that were assigned to me. I was highly motivated to perform practically about which I had some experience and exposure. I reached at branch at 8:45 am. I met with the branch manager. He introduced me with the whole branch staff.. The duties that I performed and the things I learned are given as follows:

REMITTANCES DEPARTMENT
I learnt about the remittances by the customer. It is very importance and earns a lot of commission and increase the deposit and transactions through MCB. What is Remittance? Remittances mean transfer of fund from one place to another place. The following modes are available to banker for transferring the money from one city to another city. 1. Demand Draft(DD) 2. Telegraphic/Telephonic Transfer(TT) 3. Pay Order(PO) 4. Mil Transfer(MT)

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ACCOUNT OPENING DEPARTMENT

y For the duration of my internship in MCB, I have learned and observed many things about opening an account. Basically, I think that opening an account is to establish a contractual relationship between banker and client. By opening an account at a bank of a person becomes a "client" of a bank. In addition, I will express the basic requirements and steps for opening account. y Before opening an account at MCB I observed that the following points should be considered in this regard. y y Another account holder of the bank should properly present the new client. The account holder must sign the account opening form in the presence of the representative of the bank and the signature is properly verified. y y A copy of the ID card is required by the Bank. Against the submission of the form of Bank prescribed application duly presented in the manner prescribed and on the provision of these documents may be necessary and account can be opened. The Bank reserves to itself the right to refuse to open an account without giving any reason. y Each account is assigned a separate number must be quoted in all correspondence with the relationship bank account. y Minimum to open and ongoing maintenance of various types of accounts is as follows: Rs y y y Savings of 500 Current 500 Term deposit 1000

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Recommendations
Although the MCB Ltd. is working very efficiently and effectively since its privatization in 1991. It becomes one of the leading private banks in the Pakistan. It is contributing a lot in the economy of Pakistan. But there still something on which the management of the MCB should work on. The following should be needed to improve:  The employees of the bank feel the boredom of doing same tasks. So the job rotation policy should be adopted frequently to create interesting working conditions.  The management of the bank must send its employees for different courses in the major cities of Pakistan or even abroad. This will contribute in the employee development and also in the organizational development.  The management should send the employees on the training. This will help the employee to understand his work and perform his duties in an efficient way.  The incentives to the employees should and must increase on the regular basis. So it will increase the employee retention with the bank and also increase the employee involvement.  The management of the bank should design the proper internship program for the graduate students and also for the post graduates in way that they can learn a lot during their internship.  With that the internship program should be in a way that the deserving students can get the chance for the internship.  Recently the management is closing its non profitable branches frequently. So the management should try to minimize the problem and maximize the profit but should not close the branches. Because this will also cause the unemployment.  The management should take care the shareholders of the bank and always keep an eye to maximize the wealth of the shareholders.  Recently the management of the bank is not working on the policy to attract the foreign business. The management should also work on to expand its business internationally.

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