Internship Report

MCB Bank, Limited, Galla Mandi,

Vehari

Advisor
Sir Waseem Abbas

Reported by:
Uzma Sana
CIIT/FA21-BBA-035/VHR

Department of Management Sciences

COMSATS University Islamabad
Vehari Campus

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 Internship Report
MCB Bank, Limited, Galla Mandi,
Vehari

Supervised by:
Sir Waseem Abbas
Assistant Professor

Reported by:
Uzma Sana
CIIT/FA21-BBA-035/VHR

Department of Management Sciences

COMSATS University Islamabad
Vehari Campus

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 Dedication
This work is dedicated to the Almighty Allah, all my friends, colleagues, and family members,
and especially to my teachers and mentors who in any way possible helped me to finish this
internship report. I would like to pay my special recognition to my supervisor Sir Waseem
Abbas for suggesting such worthy guidelines for this report.
I would certainly appreciate the chance of development and education for and with the ability
to create and implement positive change for the communities in some of the principles and
ethics that my beliefs have been founded upon. This has indeed been a willing opportunity that
has seen my career grow so much and I am grateful for the chance to grow in this one through
the opportunities and challenges that come with it. I would also like to thank all those people
who were with me during this period and in one way or the other helped in my promotion.

Acknowledgment
I thank Allah who has blessed me with the willpower and the intellectual and health-related
capabilities to deliver this internship report. I would have not been able to do it without His
help. Furthermore, I am grateful to the supervising officer on this internship, Mr. Waseem
Abbas, who helped and motivated me during that process.

I would like to thank Mr. Saad Munir for his nice suggestions. I would like to thank the staff
at MCB Bank Galla Mandi Branch and other branches as they have been extremely courteous
and accurate whenever I have asked them for service. Lastly, special thanks to Mr. Zeshan who
is the manager of the branch; he allowed me to do my internship there and supported me at
every stage, and Mr. Nouman Javed, the operations manager, who accompanied me during my
assigned tasks and scheduled them for me.

I must thank the branch service officer, Ms. Umaima, who has been very helpful in teaching
me different banking tasks. Not to forget, I would also like to thank Mr. Adnan, Mr. Irfan, and
all the staff for acknowledging the efforts that keep me working hard. Finally, I'm greatly
thankful to my family and friends, for their constant support. I would not have reached where
I am today.

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 Executive Summary
Since its establishment in 1947, MCB Bank has been one of the best respected and leading
banks in Pakistan and grips a main position in the world of business and retail banking. This
bank has more than 1,440 branches and over 1,480 ATMs across Pakistan. Along with its eight
branches situated within countries like UAE, Bahrain, and Sri Lanka, MCB takes the lead with
its numbers in the banking sector and caters to the services of over 8.5 million customers. It
provides online banking services 24/7.
This report is based on my six-week internship at MCB Bank. The bank occupies a primary
place in Pakistan's banking history and continues to remain competitive through the
introduction of specialized products and strong customer relationships.

The purpose of undertaking the internship is to acquire hands-on experience and relate the
knowledge acquired at the university. In this report, I analyze various aspects of the
organization which entails its background, competition, business processes, and even the
internal and external environment. I give recommendations for improvement as well.

On the whole, throughout the internship, my main work was in customer service and
relationship management and in the cash and branch services departments. In this report each
of the departments is discussed, including their policies and procedures, to give a
comprehensive overview of MCB Bank.

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 LIST OF ABBREVIATIONS

Abbreviations Full Form

AOF: Account opening form
BM: Branch manager
BOM: Branch Operational Manager
BSM: Branch Service Manager
CSO: Customer Service Officer
DD: Demand Draft
KFS: Key Fact Sheet
RM: Relationship Manager
FBL: Faysal bank limited
ATM: Automated Teller Machine
CDM: Cash Deposit Machine
CRF: Customer Relationship Form
IVR: Interactive voice response
QARD: Loan Extended Without Interest
RSBM Resident Shariah Board Member
SBP: State Bank Pakistan

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Table of Contents
Chapter no 1 ....................................................................................................................... 11
Introduction ........................................................................................................................ 11
1.1 History of MCB Bank ............................................................................................... 11
1.2 Subsidiaries and associates of MCB ......................................................................... 12
1.3 Awards ...................................................................................................................... 13
1.4 Vision and Mission Statements ................................................................................. 13
Chapter 2 ............................................................................................................................. 14
Product and Services of MCB Bank ................................................................................. 14
2.1 Retail Banking ........................................................................................................... 14
2.1.1 Current Accounts ............................................................................................... 14
2.1.2 Savings Accounts ............................................................................................... 14
2.1.3 Fixed Deposits ................................................................................................... 14
2.2 Loans to Consumers .................................................................................................. 14
2.2.1 Personal Loans ................................................................................................... 14
2.2.2 Home Loans ....................................................................................................... 14
2.2.3 Auto Loans ......................................................................................................... 14
2.3 Corporate Banking .................................................................................................... 14
2.3.1 Business Accounts ............................................................................................. 14
2.3.2 Trade Finance..................................................................................................... 14
2.3.3 Cash Management Services ............................................................................... 14
2.4 Islamic Banking......................................................................................................... 15
2.4.1 Shariah-compliant Products ............................................................................... 15
2.5 Investment Services................................................................................................... 15
2.5.1 Mutual Funds ..................................................................................................... 15
2.5.2 Equity Trading ................................................................................................... 15
2.6 Digital Banking ......................................................................................................... 15
2.6.1 Mobile and Internet Banking ............................................................................. 15
2.6.2 E-Wallets............................................................................................................ 15
2.7 Insurance Products .................................................................................................... 15
2.7.1 Life and Health Insurance .................................................................................. 15
2.7.2 General Insurance .............................................................................................. 15
2.8 Wealth Management ................................................................................................. 15
2.8.1 Financial Advisory Services .............................................................................. 15
2.9 MCB Other Services: ................................................................................................ 15

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 2.9.1 ATMs: ................................................................................................................ 15
2.9.2 Call Center: ........................................................................................................ 15
2.9.3 Mobile Banking: ................................................................................................ 16
2.9.4 Online Banking: ................................................................................................. 16
2.9.5 MCB Live Mobile App: ..................................................................................... 16
Chapter 3 ............................................................................................................................. 17
My Experience .................................................................................................................... 17
3.1 Week 1....................................................................................................................... 17
3.2 Week 2....................................................................................................................... 18
3.3 Week 3....................................................................................................................... 19
3.4 Week 4....................................................................................................................... 20
3.5 Week 5....................................................................................................................... 21
3.6 Week 6....................................................................................................................... 22
Chapter 4 ............................................................................................................................. 23
SWOT analysis ................................................................................................................... 23
4.1 Strength ..................................................................................................................... 23
4.1.1 Customer Loyalty: ............................................................................................. 23
4.1.2 Low Cost of Capital: .......................................................................................... 23
4.1.3 Largest ATM Network:...................................................................................... 23
4.1.4 Huge Branch Network: ...................................................................................... 23
4.1.5 Diverse Product Range: ..................................................................................... 23
4.2 WEAKNESSES ........................................................................................................ 23
4.2.1 Un-banked Areas: .............................................................................................. 23
4.2.2 High Administration Cost: ................................................................................. 23
4.2.3 Low Investment in Research:............................................................................. 23
4.3 OPPORTUNITIES .................................................................................................... 24
4.3.1 Low Awareness:................................................................................................. 24
4.3.2 Long Term Relationships:.................................................................................. 24
4.3.3 Potential in Foreign Operations: ........................................................................ 24
4.3.4 Potential in Joint Ventures: ................................................................................ 24
4.4 THREATS ................................................................................................................. 24
4.4.1 Political Un-stability: ......................................................................................... 24
4.4.2 Narrowing Spreads: ........................................................................................... 24
4.4.3 Political Interference: ......................................................................................... 24
4.4.4 Un-stable Government Policies: ........................................................................ 24

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 Chapter no 1
Introduction
1.1 History of MCB Bank
History of MCB bank
One of Pakistan's oldest banks, MCB Bank was established in the same year it was admitted
into the private sector. In 1974, the state-owned it, and in 1991, it was transferred. The Nishat
Group, a straightforward corporation that has diversified its profits in textiles, cement, banking,
insurance, power generation, hotels, agriculture, dairy, auto manufacturing, and paper
products, is the largest shareholder of MCB Bank. The Bank introduced its Global Depositary
Receipts (GDRs) in 2006 to access global capital markets. With its GDRs listed on the London
Stock Exchange, it was the first bank in Pakistan to do so. In 2008, the Bank and Maybank,
Malaysia, entered into a strategic partnership in which Maybank owns 18.78% of MCB through
Maybank International Trust. Under a merger plan, NIB Bank's operations were effectively
combined with those of MCB in 2017.
To meet the needs of a significant portion of society, provide financial solutions that adhere to
Shariah rulings, and demonstrate our faith in the future of the Islamic banking sector in
Pakistan, MCB became the first bank in the country to establish a wholly owned Islamic
banking subsidiary, MCB Islamic Bank Limited. With more than 1440 branches and more than
1480 ATMs in Pakistan and eight branches abroad in the United Arab Emirates, Bahrain, and
Sri Lanka, the bank has a sizable and effective branch network. With more than 8.5 million
customers, MCB is the biggest bank in Pakistan's banking and financial services industry. Our
clients worldwide have 24/7 access to MCB Bank thanks to our World Class.

Internet Banking
The Bank on a consolidated basis is running the second largest network of more than 1440
branches in Pakistan. MCB has the second-largest market capitalization in the industry. Total
assets are 2,085 Billion and the current deposit was 680 billion. The dividend per share was
Rs. 20/- in the year 2022. The Bank has the highest credit rating in the local market with the
AAA / A1+ for the long-term and short-term respectively, according to PACRA’s notification
dated 23/06/2022.

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1.2 Subsidiaries and associates of MCB
 MCB Islamic Bank Limited
The Islamic Bank primarily focuses on the operation that targets adherence to Islamic Shariah
principles. This would therefore result in the use of services in banking that do not rely on
interest and are free from immoral investments. Financial transactions are fair and transparent
not involving interest but profit sharing. Safeguarding a sound and ethical practice, the bank is
also bound by the rules and regulations of the State Bank of Pakistan.

 MCB - Arif Habib Savings & Investments Limited

Asset management is an exercise of savings management that takes care of and monitors the
clients' savings to maximize a return. Investment advisory agreements advise clients on savings
options given their commercial goals and the danger that they are willing to take. Portfolio
management is a process aimed at the selection as well as managing a portfolio of investments
to attain specified objectives. Equity research analysis involves the research analysis of stocks
as it offers insights and recommendations for investors. Thus, underwriting refers to the
assessment and assumption of risks associated with securities' issues, ensuring they meet the
guidelines of regulatory authorities but also feasible for the market.

 MCB Non-Bank Credit Organization Closed Joint Stock Company

The bank provides different types of leasing services that involve assets like industrial
equipment, public transport vehicles, real estate properties, and retail automobiles. In other
words, clients can apply for those assets, not necessarily buying them in full, which allows
more flexibility in financial options and lets businesses use necessary equipment or properties
even while managing their cash flow.
 Financial and Management Services (Private) Limited
This subsidiary of MCB specializes particularly in asset management-public assets. It has an
assortment of qualified financial analysts dedicated to the responsibility of building a well-
diversified investment portfolio so that maximum returns may be obtained with minimum risks
for the effective management of the given assets on behalf of their clients.
 Associates
Concerning significant holdings, the following entities are associates of the Bank:
 .Adamjee Insurance Company Limited
The company specializes in a broad insurance category covering all types of risks and assets.
Besides this, the company offers policies on property and vehicles, and liability, among other
types of insurance policies, thereby protecting the clients from probable financial loss.

 .Euronet Pakistan (Private) Limited

About this, the company caters to the outsourcing service of banks and financial institutions.
Its specialty is on managing and supporting the network of ATM and POS terminals. The
services offered hereby include operations, maintenance, and customer support through which
these institutions can consequently enhance the efficiency of their services and reduce their
operational costs.

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1.3 Awards
Only the prizes that the bank recognized in 2021 and 2022 are included here. Pakistan's Best
Corporate Finance Bank at the 2022 International Finance Awards 2. Asia Money Best Bank
Awards 2022 (Pakistan's Best Corporate Bank) 2022 ICMAP (Best Corporate Report Award)
& ICAP 2021: Co-Winner (Banking Industry) 2022 ICAP and ICMAP (Joint Runner-up for
the Overall Best Corporate Report Award in 2021) 2022 SAFA Awards (Joint Silver Award
for Private Sector Banks' Best Presented Annual Report, 2021) Asset AAA Sustainable Capital
Markets Nation (2021) (Best Loan Advisor & Regional Awards, South Asian Region) South
Asia's Best Structured Finance Deal & Regional Awards: 2021 Asset AAA Sustainable Capital
Markets Nation 2021 Asset AAA Sustainable Capital Markets Nation (Best Equity-Linked
Deal & Regional Awards) Funding for Asia's Country Awards in 2021 (The Best Bank in
Pakistan) 2021 ICAP and ICMAP (Best Corporate Report Award 2020 Winners in the Banking
Sector) ICAP and ICMAP (2020 Overall Best Corporate Report Award Winners) in 2021 Co-
second runner-up for the Banking Sector's Best Presented Annual Report 2020 in the 2021
SAFA Awards The 2020 ABF Corporate & Investment Banking Awards gave the Best Equity
Deal of the Year award in Pakistan. Pakistan is the recipient of the 2020 ABF Corporate &
Investment Banking Awards' Syndication Loan of the Year title. Pakistan's Telecom Deal of
the Year, the Asset AAA Infrastructure Awards, 202

1.4 Vision and Mission Statements

 Vision Statement
“To be the important financial services worker, joining with our patrons for a more prosperous
and safe future.”

 Mission Statement
“We are a team of specialists who are loyal to proposing our customers value-added economic
solutions that will foster long-term relations. By so doing, we can provide our stockholders
with the confidence they need to spend in us”.

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 Chapter 2
Product and Services of MCB Bank
The products and services given by MCB Bank form an integral part of the Pakistani banking
sector.

2.1 Retail Banking

2.1.1 Current Accounts
MCB Bank offers different current account options to its customers, to fulfill individual and
business requirements, offering various facilities that include online banking, free withdrawal,
and a checkbook facility.
2.1.2 Savings Accounts
There are various saving account variants provided by the bank with attractive interest rates, to
save the income of the customers. In addition, these accounts also provide online access
coupled with ATM banking.
2.1.3 Fixed Deposits
Fixed deposit accounts of MCB allow customers to save their money at an attractive rate for a
fixed tenure to save it safely and increase their wealth.

2.2 Loans to Consumers

2.2.1 Personal Loans
MCB offers personal loans without any security, which may provide customers the leverage to
pay back and hence meet individual needs such as education, medical bills, or even traveling.
2.2.2 Home Loans
The bank finances the clients' options for acquiring or reconstructing homes by adopting
customized repayment plans that cater to an individual's financial condition.
2.2.3 Auto Loans
MCB provides auto loan products offering its customers financing opportunities in owning
automobiles. The interest rates are competitive as well as flexible terms.

2.3 Corporate Banking

2.3.1 Business Accounts
MCB provides personalized business account solutions at small, medium, and large enterprise
levels with easy transaction management and online banking services.
2.3.2 Trade Finance
International trade is offered through products such as letters of credit and export financing by
the bank. Such products are not luxuries that firms involved in cross-border transactions can
afford to do without.
2.3.3 Cash Management Services
MCB offers a comprehensive cash management solution to smoothen the cash flow of a
company and hence optimize efficiency in performing work.

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2.4 Islamic Banking
2.4.1 Shariah-compliant Products
MCB Bank provides several Islamic banking products and services based on the principles of
Islamic finance, including savings and investment accounts. Other products available include
sharing profit accounts and Murabaha financing for asset purchases.

2.5 Investment Services

2.5.1 Mutual Funds
Investment via mutual funds is provided by MCB. Through the service, customers have the
opportunity to diversify and accumulate wealth in professionally managed portfolios.
2.5.2 Equity Trading
The bank offers brokerage services through equity trading. They aid in buying and selling
shares on the stock market.

2.6 Digital Banking

2.6.1 Mobile and Internet Banking
MCB's digital banking facilities have enabled customers to access their accounts, and make
online transactions, everywhere and at any time for easy access.
2.6.2 E-Wallets
The bank has launched e-wallets to provide easier online payment and transfer with an
emphasis on the growing trend of digital modes of payment and transfer.

2.7 Insurance Products

2.7.1 Life and Health Insurance
MCB provides all kinds of life and health insurance products that would be provided with
effective management and give financial security as well as peace of mind to customers'
families.
2.7.2 General Insurance
The bank also provides general insurance products, which cover the customers from liabilities
of damage, theft, and all other losses.

2.8 Wealth Management

2.8.1 Financial Advisory Services
MCB Bank provides personalized financial advisory services that concentrate on helping
clients manage investments, retirement plans, and achievement of other financial goals.

2.9 MCB Other Services:

2.9.1 ATMs:
MCB asserts that with over 1450 ATMs and continuing to grow, it is one of Pakistan's biggest
ATM networks. Among the conveniences that MCB ATMs provide are cash withdrawal, mini
statements, utility bill 10 payments, and funds transfer services. The modern ATMs from MCB
guarantee that you will always have service wherever you go.
2.9.2 Call Center:
The new, improved 24/7 MCB call center is the simplest way to bank since it offers clients
more than they expected by fusing convenience with innovation. Pay utility and mobile phone

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bills, pay MCB Visa Credit Card bills from your MCB account, transfer money from your
MCB account, examine the latest five transactions, check your account balance, check your
VISA credit and ATM/debit card data, and file a complaint.
2.9.3 Mobile Banking
MCB is proud to introduce 2.9.4 MCB mobile banking as a technologically sophisticated bank.
Refilling mobile phones, sending money, paying bills, and many more services can all be done
quickly, easily, and securely with MCB Mobile. You can start transacting by typing
www.mcbmobile.com into your laptop or mobile device without having to visit a branch or an
ATM.
2.9.4 Online Banking
With more than 1,100 online branches across the nation, MCB offers its customers real-time
online transaction capabilities in a highly quick network.
2.9.5 MCB Live Mobile App:
All banking services are provided by MCB Live via a mobile platform. This app gives you the
ability to pay your water and electricity bills, check your balance, transfer money, and do a lot
of other things.

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 Chapter 3
My Experience
3 Weekly internship report
Indeed, it has been a very nourishing and transformational experience at MCB Bank, infusing
into me hands-on knowledge in the process of banking operations, ranging from answering the
queries of customers to processing transactions. I have learned about various products like
personal loans and digital banking solutions from my knowledge-rich colleagues. What came
forth was the need for service and communication. Generally speaking, this internship has
helped me get a better understanding of the banking sector much better and has fired up my
passion further for pursuing finance as a career.

3.1 Week 1
Weekly Report for July 23 to 27
Introduction:
This report sums up my experience during my first week at MCB main branch Vehari July 23
to 27.
Summary:
During my first week of internship at the bank, I was introduced to the operational management
team and gained knowledge of several banking chores.
Activities and Tasks:
• Introduced to the team and operational manager.
• Assessed the tasks including check and deposit slip filling up.
• Developed expertise regarding card applications and cancellations.
• Introduced the necessary forms and account-opening techniques.
• Briefed on bank emails and biometric validation.
Conclusion:
I met the operation management team in my first week and gained some knowledge on the
basics of banking activities. I was given the first assignment to learn the procedures.

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3.2 Week 2
Weekly Report for July 29 to August 2
Introduction:
This report summarizes my experiences during my second week at MCB main branch Vehari
from July 29 to August 2. In my second week of training at the bank, I continued to learn about
management as well as acquired additional responsibilities.
Activities and Tasks:
•Held forms for consumers when applying for or canceling cards.
•Assisted in the process as well as learned about clearings.
•Completed the activities assigned by the operational manager.
• Learned practical knowledge concerning opening procedures for an account
•Provided aid for the staff to work efficiently in the banking.
• Submission of bank emails by the manager or operational manager and making biometric
verifications.
• The evening steps for processing the bank clearings, and skills were learned to enhance the
customer base, account opening, and client interaction measures toward achieving these
results.
Conclusion:
I gained suitable operational management experience during my second week, which demands
strict observation and communication skills. I concentrated on building operational knowledge
of banking and customer service skills. Even though my major is marketing, I also began
learning about marketing strategies that build client base and account openings, which falls
within my concentration in marketing. These exercises provide a thought-provoking analysis
of operational control and client contacts. The next weeks will bring many knowledge-building
skills, and I look forward to it.

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3.3 Week 3
Weekly Report for 5th August to 9th August
Introduction:
This report reflects my training during my third week at MCB's head office in Vehari, from
the 5th up to the 9th of August.

Summary:
This week, I continued learning about operational management and was given more
responsibilities. Most importantly, I learned about CBS, which made it possible for me to
accomplish many banking jobs.
Activities and Tasks:
• Maintained cash register and was cautious in tallying and keeping correct transaction
accounts.
• Maintained the security vault book up to date due to integrity and accuracy.
• Handled cash every day by the reconciliation of cash books through the bank's account.
• Learned how to trace information about various account holders from the CBS.
• Called and reminded all the closed accounts customers to encourage them to reactivate their
accounts.
• Checked dead case files to determine whether all procedures were done.
• Supported the manager and the operational manager in dealing with emails that contact the
bank. I learned how to deal with evening bank clearings. I acquired skills related to the
expansion of the client base and opening new accounts.
Conclusion
It is in my third week, I would say when I went through the materials about CBS and banking
procedures, me a sense of what to look at in the operational management. Such an experience
requires good communication and keen attention. Owing that marketing remains my primary
concern, from this experience, I realized how much the importance of operations in the
management towards good relations with clients and account openings.
The next weeks are cool moving forward.

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3.4 Week 4
Weekly Report August 12 to August 16
Introduction:
This is the report of my work in my fourth week of internship at MCB Main Branch Vehari
from August 12 to August 16.
Summary:
This week I was working with advanced banking-related tasks like accounts management as
well as providing support with the compliance of the bank and also learned some new things
about the bank's products or types.
Activities and Tasks:
• Accounts offered by MCB Bank
• Build relationships with customers.
• Activation of MCBS ATM card
• Got registered in MCB
• Familiarization with MCB products
• Helped in the opening and closure of accounts
• Supported processes for loan sanction and documentation
• Made daily transactions on cash and reconciled on the cash book maintained by the bank at
the end of the working day.
• Helped customers answer their many queries and complaints
• Aided manager and operation manager concerning bank emails.
Conclusion:
Within the fourth week, I learned more about account management and banking policies, which
improved my knowledge based on the aspects of regulatory compliance and customer service.

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3.5 Week 5
Weekly Report for August 19 to August 23
Introduction:
This report describes the occurrences that took place during my fifth internship week at MCB
Main Branch Vehari from August 19 to August 23.
I utilized the full potential of what an ATM can offer, such as withdrawing, transferring, and
paying bills. File forms for fund transfers, change contact numbers, reactivate dormant
accounts, or switch to other account types. Deposit money using a Collect Plus slip. Collect
messages if the staff are unavailable.
Actions and Events:
• Withdrawal and transfer amount, bills payment using an ATM
• Application for transferring funds through a form on funds transfer
• Ask for a change of customer's contact number
• Account being re-activated
• Change in product or type of account
• Use of Collect Plus deposit slip
• Certainly answer the official call if no staff can be produced.
Conclusion:
During the fifth week, I learned about Efficient banking operations including understanding
processes such as making transactions with the help of the ATM, filling up forms for the
transfer of funds, seeking any updates or account alteration, and reactivating inactive accounts
with the change of the account type. In both cases, applications are to be sent formally. A cash
deposit into Collect Plus is made easy with the help of a deposit slip, and immediate answers
to an official call ensure the smooth completion of the process. Expertise in these activities
provides better service and operations.

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3.6 Week 6

Weekly Report from 26 August to 30 August

Introduction:
The following report outlines the events that took place in the sixth week of the internship at
MCB Main Branch Vehari from August 26 to August 30
Summary:
• MCB Bank Departments: Retail, corporate banking, risk, operations, customer service.
• MCB Relationship Building: Personalized services and customer support.
• Types of Customers: Individual, SMEs, Corporate, Government.
• How to open the accounts: For current, saving, and Asian accounts, one has to visit a branch
with a CNIC and the required documents to open a selected account. Asaan's account requires
minimal paperwork.
Activities and Tasks:
• MCB bank department
• Building relations in MCB
• Types of customer
• How to open current, saving, and asset account
Conclusion:
In week five, I learned about services targeted at different types of customers through distinct
departments for each and emphasized very strong basic relationships. This particular bank
opens three types of accounts current, savings, and Asaan-with a rather easy account opening
procedure and minimum documentation involved. MCB has to cater to individuals and
businesses through customized banking solutions.

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 Chapter 4
SWOT Analysis
4.1 Strength
4.1.1 Customer Loyalty
Another advantage of MCB Bank is that it has been in business for a while and has loyal
customers as a result. This is particularly advantageous in the unstable and fiercely competitive
market of today.
4.1.2 Low Cost of Capital
Because of its extremely strong fundamental earnings power, which is reflected in gross
spreads, MCB is in a superior position here. Muslim Commercial Bank also has one of the
lowest costs of capital as the spreads contract. Its extensive branch network can be attributed
in great part to this.
4.1.3 Largest ATM Network
Additionally, Muslim Commercial Bank boasts the nation's largest network of ATMs. With
more than 1450 ATMs spread over Pakistan, it is a frontrunner.
4.1.4 Huge Branch Network
MCB has its branch network in Pakistan and it has 1440 branches. With this cutthroat
competition among the banks to attract deposits and other corporate and Investment banking
activities, the largest bank normally has the best chance of survival.
4.1.5 Diverse Product Range
At the moment, MCB offers a variety of financial products that are beneficial to various clients.
It offers a variety of goods and services to suit all kinds of clients.

4.2 WEAKNESSES
4.2.1 Un-banked Areas
Within a 3-mile radius, MCB has more than 100 branches in places where no other branch
exists. According to SBP regulations, these cannot be shut down. All of these branches are
expensive to run, and the majority do not provide steady, lucrative income.
4.2.2 High Administration Cost
Even though MCB had one of the greatest spreads in the business, its profitability was low
since the management was unable to reduce operating expenses after privatization.
4.2.3 Low Investment in Research
Even though MCB created BDMD to help with the creation of new plans and tactics to deal
with the constantly shifting market, the Pakistani environment is too unstable, so BDMD
requires additional funding for research, which is currently lacking.

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4.3 OPPORTUNITIES
4.3.1 Low Awareness
22.76 percent has been the official saving rate's range. Because of our low savings rates and
huge informal sector, our economy can be considered unbanked when compared to other
economies. There is a good chance that banks will be able to profit from this. The banking
sector can increase its efforts to inform the public about the advantages of using banking
services, grow its clientele, and seek profitable growth opportunities.
4.3.2 Long Term Relationships
Being a long-standing business, MCB may be able to make use of client relationships from the
previous 50 years
4.3.3 Potential in Foreign Operations
By expanding into the Middle East and Central Europe, which have sizable credit markets as
well as remittance markets for Pakistan, MCB can further benefit from its international
activities.
4.3.4 Potential in Joint Ventures
In order to boost profitability, MCB can also rely on the joint ventures it has made with different
financial institutions in different nations.

4.4 THREATS
4.4.1 Political Un-stability
Political instability is one of the biggest threats to all forms of business. It also impacts the
banks' working processes.
4.4.2 Narrowing Spreads
The spread of interests is rising to be smaller due to the increase in the level of competition
both in the deposits and the credit market, therefore creating serious threats to the profitability
of the bank.
4.4.3 Political Interference
In Pakistan, where corruption is rampant and political pressure leads to the granting of
numerous loans, most of them end badly. The bank's operations and the flow of money
throughout the economy are seriously threatened by this political meddling.
4.4.4 Un-stable Government Policies
As was already mentioned, the nation is rife with political unrest, and the government's
financial policies are also unstable. This creates uncertainty in the credit and deposit markets
as well as the economy, which makes it extremely challenging for a bank to run and predict its
investment portfolio as efficiently as possible.

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