Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Name of Organization:
MCB Bank Limited
Submission Date:
15 September, 2013
GUJRAT UNIVERSITY
CITY CAMPUS
G.T ROAD GUJRAT
Page 1
ACKNOWLEDGEMENT
First of all thank the Almighty Allah, with whom blessing I have done my Internship
report. A number of people have contributed and support me for the successful
completion of my internship report.
After thanks to Allah, I thank to all those peoples who have supported me during the
completion of my final report. I acknowledge the support of my supervisors who provides
me ideas about the preparation of the report. The support, suggestions, comments
provides by them are very helpful for me for this report. I would like to thanks the entire
staff of the MCB Bank Limited who help me and provide me the guidelines for the
completion of the report. Especially Mr. Adnan, Branch manager of MCB Bank Limited,
G.T Road, Gujrat helps me in best regards, without the cooperation of Mr. Adnan it was
very hard to complete this report successfully.
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Page 3
Page 4
Page Number
6
6
8
9
9
11
12
13
13
14
14
15
16
18
18
19
19
19
19
20
20
20
21
32
37
38
39
41
42
43
Page 5
Page 6
Shahzad Saleem
Sarmad Amin
Page 7
Page 8
2007
2008
2009
2010
Total Assets
Share Capital
Investments
Deposits
Advances
Profit Before Tax
Profit After Tax
(Rs, 000)
410,485,517
6,282,768
113,089,261
292,098,066
218,960,598
21,308,035
15,265,562
(Rs, 000)
443,615,904
6,282,768
96,631,874
330,274,155
262,135,470
21,867,566
15,374,600
(Rs, 000)
509,223,727
6,911,045
167,134,465
367,604,711
253,249,407
23,154,945
15,495,297
(Rs, 000)
567,552,613
7,602,150
213,060,882
431,371,937
254,551,589
26,253,075
16,873,175
d) DEPOSIT PRODUCTS
Following are main deposit products or services are offered by MCB Bank Limited.
1. Basic Banking Account
i.
The BBA account is opened with small initial deposit of Rs. 1,000
ii.
iii.
iv.
v.
2. Current Account
i.
ii.
iii.
iv.
v.
vi.
3. Saving Account
i.
ii.
Profit is paid @ 5%
iv.
v.
vi.
ii.
iii.
iv.
v.
vi.
vii.
These are basic deposit products which are offered by MCB Bank Limited, from these
products the bank derive other products with connecting some benefit with the main
products or accounts. Other accounts are as follows:
6. Smart Dollar Account.
7. Saving 365 Gold.
8. Business Account.
9. Saving Xtra Account.
10. Current Life Account.
11. Smart Savings.
e. ADVANCES PRODUCTS:
The following are main advances products offered by MCB Bank Limited.
1. Running Finance Facility:
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ii.
iii.
iv.
ii.
iii.
iv.
3. Cash Finance:
i.
ii.
iii.
iv.
F. CMPETATORS:
The following are competitors of MCB Bank Limited.
1. Private Sectors Competitors Banks:
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ii.
iii.
iv.
v.
vi.
vii.
Summit Bank.
ii.
iii.
iv.
3. Foreign Banks:
i.
ii.
2. ORGANIZATION STRUCTURE
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b) Number of Employees:
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Numbers
Permanent Employees
9,583
57
9,640
Outsourced Employees
3,740
13,380
c) MAIN OFFICES:
Registered Office
MCB Building, F-6/G-6, Jinnah Avenue, Islamabad.
Principal Office
MCB 15 Main Gulberg, Lahore.
UAN: (042) 111-000-111
PABX: (042) 36041998-9
Website: www.mcb.com.pk
ii.
iii.
Cash Department
MCB Bank Limited, Railway Road Gujrat branch connected with G. T Road Gujrat main
lending branch with following department.
ADVANCES DEPARTMENT
DEPOSIT / ACCOUNTS DEPARTMENT:
The commercial banks perform two main functions. It accepts deposit from general
public and advances loans. By the performing these functions, they earn profits. Deposit
department is one of the most important department and main department of the bank. It
performs the vital function in the bank because it deals with the supply of money to the
bank. Deposits are the inputs of a bank. Deposits department is just like a heat, as it
function other department also run, otherwise the whole system paralysis. In deposit
department the bank attract deposit by offering different deposit products, like saving &
term deposit accounts.
REMITANCES DEPARTMENT:
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Training Program
ii.
iii.
Cash Department.
3. Advances Department.
c) Detailed Description of all Departments:
A. Human Resource Department:
Human Resource functions are performed by the HR Division, Regional Office Gujrat. I
spent two weeks in HR Department to know the HR functions and roles. I go through the
selection process of employees used in different departments of the bank.
MCB Bank Limited, hires staff in two ways on e is from batch program (Fresh Induction)
and other is hiring experienced staff from other banks and also hires staff contractual staff
both in batches and experience stuff.
The fresh graduates are hired through MCB Batch Program. MCB needs staff in different
departments. The hiring program starts from advertisement in different news papers and
MCB on websites and different HR recruitment portals. After the received of thousands
of applications from fresh Graduates and Masters, the HR Departments are sorted out
merit wise and test is conducted. After completion of test interview are held in respective
staff colleges. Currently MCB Bank Limited has three staff colleges, Lahore, Islamabad
and Karachi. After passing out the interview the candidates and gone through
comprehensive pre-indention training program. This training program is purely on all
Banking departments in the class room and on the field. After completion of trainings, the
employees are posted at different departments.
In the second one hiring staff process is experience staff. The Regional Heads and
General Mangers asses the need of employee or need for replacement through the field
managers. They calls for interviews, select the right candidates for the right department
and send the request to the HR Department for their hiring.
The need assessment is observed at Head Office level taking feed back from filed
managers. Branch Managers also involved in the Human Resource functions, he manage
all the staff of the branch according to the need and jobs responsibilities.
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B. Operations Department
Operations Department include all operations activates of the branch. The Branch
Operations Manager manage all activates of the branch. Branch Operations Manager is
responsible for all banking operations in the branch. The operations department divides
into three sub departments.
1. Accounts and Deposit Department:
The main objective of Accounts Department is to keep the records of all financial
transactions of bank in accurate, timely and transparent manner; it is also responsible in
managing existing accounts and also developing new relations. The basic objective of
Accounts Department is to keep records of financial transactions of bank in an accurate,
transparent and time-bound manner. With the adoption of new technology and centralized
banking system the working of accounts department is changed. Now, accounts
department in responsible of managing the existing relationship also cater new
relationships to the bank. They are now more involve in the supply of money. The accept
deposit from general public for the advancing loans
Mission & Vision of Accounts and Deposit Department:
The accounts and deposit department is responsible for the deposit mobilization and
account opening. This department is also responsible for issuance of ATM Cards, Mobile
banking and also introduction of new products newly started by the bank. Department is
also responsible for the maintenance of existing account.
Duties to be performed:
The main duties performed by the officers of Accounts Departments and various
accounting units are as follows:-
To control the budgets and maintain the Accounts books of records for
budgetary control.
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Any person can open account with minimum deposit of Rs. 1000.
ii.
iii.
iv.
v.
All cheques and other instruments should be crossed before they are credit to the
account.
vi.
The bank would not require any prior permission from the account holder for
debiting his/her account for charging expenses, fee, commission, mark up etc
arising out of any dealing with the branch.
vii.
The account holder should maintain a minimum balance of Rs. 10,000 per month
otherwise, the bank deduct of Rs.50 per month account maintenance charge.
viii.
Account statements are provided to the depositors mostly half yearly intervals or
whenever required by him.
ix.
These accounts are completely exempted from zakat and with holding taxes.
x.
If the customer is not performed any transaction for the six month the account
automatically converted into dormant. After 3 years to inoperative account register.
To re-operate such account an application is written in the name of branch manger.
After ten year the if no transaction take place the amount laying in the account
slender to SBP (State Bank of Pakistan).
II.
Savings accounts are used to save the money and earn profit. This saving account is
opened with a minimum balance set by each individual bank. There are usually
exceptions for minors such as a lower or no minimum balance to open. Saving accounts
are mostly opened by those types of customers whose baking transactions are not
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ii.
iii.
The deposits can be made individuals, trusts, charitable institutions and provident
fund.
iv.
Zakat on the amount of balance is deducted at shirah rates but zakat is not deducted
if declaration is given by the customer.
v.
vi.
III.
Basic banking Accounts are basic accounts of starting banking relationship. These
accounts are usually open students and low salary person. No account maintenance
charges applied if the account holder restricted to two deposits and two withdrawals. No
zakat is applicable on these accounts.
Features of Basic Banking Account:
Following are the main features are the current accounts.
xi.
The BBA account is opened with small initial deposit of Rs. 1,000
xii.
xiii.
xiv.
xv.
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ix.
x.
xi.
These are basic accounts which are offered by MCB Bank Limited, from these products
the bank derive other products with augmented some benefits with the main products or
accounts. Bank also offers these accounts in foreign currency like Dollar, Pound & Euro.
Other accounts or products are as follows:
12. Smart Dollar Account.
13. Saving 365 Gold.
14. Business Account.
15. Saving Xtra Account.
16. Current Life Account.
17. Smart Savings.
18. Khushali Bachat Account.
2.
Inland remittances
INLAND REMITTANCES:
Following are the main source of inland remittance used in banks.
1. Demand Draft (DD):
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Following are the main tasks which are performed by me in different departments during
my internship in MCB Bank Limited.
I)
I.
Operations Department:
Account or Deposit Department:
During my internship training program, I spend two (2) weeks in accounts department, in
this department, I learn and gain practical knowledge about opening and closing of
accounts. I open every type of accounts (Current, PLS, Term) and every category of
accounts (Individual, Sole proprietor, Partnership and Company Accounts). I complete
the documents required for opening of accounts and learn the procedure to close the
account. Following is the detail about all task mention above.
Account Opening:
Under this section, I learned how to open an account and types of the accounts and
conditions to open the accounts. There are different customers and they want to open an
account which satisfies their requirements, so bank had provided the opportunity for the
customer to fulfill there needs and can open different types of accounts like current
account, PLS account, BBA account, foreign currency accounts, Business Accounts and
many more types of accounts. I open different types of account current, Profit & Loss
Account, Term Deposit Account. Following documents are compulsory for opening an
account. I collect all these documents from customer and open accounts.
Documents Received to open a Personal Account:
Copy of National Identity Card of the person desiring to open the account.
Request letter on business letter head.
Copy of NTN or Business Prove.
Complete filling of the form.
Filling the Specimen signature Card with business name stamp.
Minimum opening balance is required.
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clearly mentioned.
Cheques are signed by the directors, partners or employees of company,
drawn in favor of them and credited in their account in the bank are too
scrutinized.
Withdrawal of amount can be made at branch only in which account is
maintained. No third party can withdraw money. In current amount can be
withdrawn during banking hours anytime.
Issuance of Lockers:
Branch also offers Safe Deposit Lockers facility to their customers. The lockers are
invariably to be installed in the Strong Room of the Branch to ensure maximum security
against burglary, theft and riots. Each locker irrespective of its size has a separate number
and is fitted with a double key lock which cannot be opened except with the two keys,
one being Master Key under the custody of Operations Manager /Authorized Officer and
the other possessed by the customer.
The relationship subsisting between Bank and Person to whom locker is rented out will
be that of a Licensee and a Licensor and not that of a customer and banker.
Lockers are offered in three sizes, small medium and large. Before issuing a licence for
the use of locker, make it sure that the licensee maintains an account in any branch of our
Bank in the same City / Town, preferably in the branch where locker facility is available.
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In the Remittance & Clearing department, I learnt different types of money transfer from
one place to another. Different types of methods are used to transfer money with a secure
means from one place to the other place.
Demand Draft
It is the instrument used to transfer the money from one city to another. The person who
wants to made payment to other person or business, he make a request to prepare a
demand draft. It is prepared on a written form. The beneficiary name, applicants name,
amounts in words and figures, purpose of transfer of money and services charges are
written on demand draft. It is made either for cash or through cheque. The bank is
charged commission on it.
Mail Transfer
The transfer of money in the shape of document from one place to another by mail is
called Mail Transfer. It is the safest and fastest mode for remittance. All other procedure
is same as demand draft.
Telegraphic Transfer
It is also an instrument used to transfer the money from one city to another. It is the
fastest transfer of money from one bank to another. The transfer is made on the behalf of
the customer through telecommunication. Other requirements are same as they are in the
demand draft.
Pay Order
Pay order is more liquid as compare to cheque. It is used to secure transfer of money
from one place to another. The client gets a printed form from the bank to fill it and
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ii)
afternoon to
other banks for clearing, which are presented by our account holder.
NIFT perform the function of clearing with in the city or area and also other cities. The
services of other cities are called Intercity Clearing. NIFT also provide the facility of
clearing cheques in same day called Same Day Clearing, in which the cheques are
cleared with in working day.
III.
Cash Department:
In cash department the cash and prize bonds are receipt and paid. The cash department
also received utility bills. The Operations Manager briefly tells me about the functions of
cash department.
III)
CREDIT DEPARTMENT
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Running Finance:
In running finance facility the bank provides the facility to withdraw the amount from his
account up to the limit approved. The Running Finance facility is secured against the
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Running Finance facility is not being used for long-term financing needs. In this
respect, the financing needs of a borrower should be ascertained with regard to
not breached.
The customer makes periodic adjustments, at least quarterly, unless otherwise
approved.
No disbursement is made against expired limit.
Documentation: Following documents are obtained at the time of disbursement of
credit facility.
Promissory note, duly stamped (IB-12)
Mark-up Agreement (IB-6)
Sufficient, tangible securities with or without collateral, realizable of stable
value with necessary documentation [e.g. Letter of Hypothecation (IB-25) /
IB-28 & IB-31 in case of Deposit Certificates, Shares / Securities etc.
For property including IB-22 or IB-24, etc.], and Adequate insurance, as
appropriate, covering assets charged in Bank's favor. The cost of insurance is
to be borne by the borrower.
Cash Finance:
Cash Finance is a facility where an amount is disbursed against pledge of locally
procured goods and / or merchandise. The amount after retaining the prescribed
percentage of margin on stocks is transferred in a separate cash finance account of the
customer. Delivery of pledged stocks is allowed on payments.
Special Precautions:
The Bank should ensure that:-
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specific permission.
6. Approved Muccadums are hired and deputed, in accordance with Banks
Muccadumage policy.
Application Polices:
Draw down is allowed on receipt of goods for pledge. Drawing power is to be
determined, based on value of goods placed under pledge along with stipulated margin.
Finance is recovered on each delivery. Each drawdown is required to be adjusted within
the stipulated period (generally 90 to 180 days) along with proportionate mark-up
(Recovery of Mark-up on Cash Finance) and at quarter ends.
Documentation: Following documents are obtained at the time of disbursement of credit
facility.
1. Markup Agreement (IB)
2. Promissory Note (IB-12)
3. Letter of Pledge (IB-26)
4. Where collateral property is obtained, relevant documents including IB-22 / IB-24
to be obtained.
Demand Finance:
Under this type of facility, finance is allowed to the borrower for a fixed period usually
exceeding one year, repayable either in periodic installments or in lump sum, at a future
date. This type of finance is of non- revolving nature. The demand finance facility may
also be created as a consequence of loan rescheduling or as a consequence of forced
financing.
Special Precautions:
It should be ensured that:
1. The security possessed is commensurate with the terms of finance.
2. Where the installment payment is delayed, the additional mark-up is charged for
the delayed period.
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Agriculture Financing:
Farmers are eligible for Agricultural Financing for each of the following purposes:
1. Farm Credit
a) Production Finance
Seasonal requirements for crops i.e. purchase of seed, fertilizer, pesticides and
Working capital
Working capital requirement for short term needs for packing, transportation,
processing and other short term needs of the farmers.
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MCB offer medium and long-term finances facilities for purchase of livestock,
milk processing and chilling plants, motorcycle for milkmen, veterinary
clinics, compound feed making industry, poultry farming, dairy farming,
marine fisheries, cold storage for fisheries, forestry, apiculture, sericulture,
biogas plant, sulphuric gas generator etc.,
Working Capital
ii)
Short term finances for the items mentioned above in 2 i. (i.e. purchase of feeds,
raising and veterinary expenses, and artificial insemination unit/services, etc).
iii)
Consumer Financing:
MCB offers the following consumer finance facilities exclusively to its existing account
holders.
iv)
Branch Performance:
Produ
ct
Deposit
Advanc
es
Profit
ATM
Accoun
2007
290.6
03
73.44
8
18.10
4
225
239
2008
301.7
75
50.92
6
12.97
6
262
280
2009
352.8
37
382.8
83
-6.002
287
315
2010
414.3
78
306.9
42
30.74
1
380
410
2011
516.1
65
153.2
41
44.30
3
444
516
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Effectively manage and mitigate all kinds of risks inherent in the banking.
Strategic planning:
Following are the strategic planning of the MCB Bank Ltd for the future business.
Facilitate alignment of the vision, mission, corporate objective and with the
business goals.
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Provide strategic solutions to mitigate weak areas and to counter threats to profits.
Provide strategic initiatives and solutions for projects, products, policies and
procedures.
6) Swot Analysis:
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieve that objective.
Following is the SWOT analysis of Muslim Commercial Bank ltd.
i) Strength:
Strength means the attributes of the person or company that are helpful to
achieving the objective(s). Strengths are the factor which arises internally forms the
organization and provides benefits to the organization if we adopt these strengths.
Following are the Strengths of the Muslim Commercial Bank ltd.
aspects.
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Muslim Commercial Bank Ltd. has launched its Mobile ATM Service,
ii) Weakness:
Weakness mews the attributes of the person or company that are harmful to
achieving the objective(s). Weaknesses are the factor which arises internally forms the
organization and can be avoided by the organization. Following are the weakness of the
Muslim Commercial Bank ltd.
iii)
Opportunity:
Opportunities mean external conditions that are helpful to achieving the
objective(s). By availing the opportunism form the external market, the organization can
lead the market with flying colors. Following are the Opportunities which are there in the
market for the Muslim Commercial Bank ltd.
iv)
Grow in size also increase the profitability and trust of the customer.
Threats:
Threat means the external conditions which could do damage/harm to the
objective(s) of the organization. MBC has to keep their eye on the threats available in the
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MCB is facing a strong competition by its major competitors; Habib Bank Ltd
and Bank Alfalah. Business of these banks is also growing with very high pace.
MCB should enhance its Branch Network, in order to capture the market of
different areas.
The SWOT analysis of the bank signifies that its strengths overcome its weaknesses and
its opportunities are more than its threats. This is positive sign for any Organization
7) Conclusion:
In the light of SWOT analysis and Critical Analysis of the MCB Bank Ltd I
want to conclude the following point for the Improvement and success of MCB Bank
Ltd.
Continuous Improvement:
MCB Bank Limited should continuously conduct its financial analysis and compare it with
their competitors and evaluate their performance with other competitors hence the progress
and good will of the organization will increase.
Proper Planning:
MCB Bank Limited has to conduct proper planning for activities; they have to plan the
objective of the organization according to the Mission and Vision Statements of the
organization.
Advertising Campaigns:
In this fast word where the world has become the Global village no one can deny the
importance of advertisement. Most of the organizations are advertising their organization on
different media zones. They are getting most of the shares of the market which MCB Bank
Ltd is not availing, MCB has to adopt this strategic to get the more and more market shares.
This way they can increase their profits and gets the trust of the peoples.
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8) Recommendations
From the quantum of the profit and its financial data it can easily judged that
after privatization MCB is performing well. Its deposits are growing day-by-day and so is
profitability.
Following are recommendations for MCB.
Shortage of Staff:
Almost in all branches of MCB Bank Ltd the problem of Shortage of Staff is very
common. There are only few employees working on the bank, they are over loaded due to
shortage of the staff. One employee of the MCB Bank Limited is working on different
seat at a time which creates the stress for the both customer and the employee because
customer has to wait more than actual timing so higher management of the MCB Bank
Ltd has to hire the well educated and trained staff for their organizations.
Staff Is Not Adequately Trained:
Staff in almost all branches of MCB is not adequately trained. In Most of the branches,
old peoples are working who dont have idea about the new technology and hence the
efficiency of the organization will reduce and the output also. Higher management has to
take step to educated their staff and conduct training program for their old employs so
that the can also keep steps with the changing technology.
Online Banking Problem:
This problem is related to the new setup of the MCB Bank Ltd. Even though MCB has
introduced the online banking system but this system is not working technically well
because most of the time and most of the branches of the MCB shows the status of
Offline which hearts the customers as well as the staff of the MCB. MCB management
has to resolve the problem relating to the Offline status of the branches
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