Total Quality Management

Benchmarking
We visit MCB and Summit Bank for the purpose of benchmarking. Both Bank have its own
image. MCB are the larger network but and the same time have more weaknesses and flaws.
Contrary to this Summit bank is a lot younger and smaller network, but with the more
organize and up to dated structure, providing a satisfactory services to the customers.

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

MCB Bank Limited is a Pakistan-based

company. The Bank operates in four
business segments:

Corporate finance
Trading and sales
Retail and consumer banking
Commercial banking

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

2. Trading & Sales:

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

3. Retail & Consumer Banking:

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

4. Commercial Banking:
Commercial banking segment includes project finance, export finance, trade finance, leasing,
lending, guarantees and bills of exchange relating to its corporate customers.

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MCB is one of the leading banks of Pakistan. MCB soon earned the reputation of a solid and
conservative financial institution managed by expatriate executives. 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.

Historical Background
The history of MCB can be divided

Development Phase
Nationalization Phase
Privatization Phase
Present Position of MCB

1. Development Phase:
MCB Limited formerly known as Muslim Commercial Bank Limited is not an overnight success
story. It was incorporated by the Adam Gee Group on July 9, 1947 under the Indian Companies
Act, VII of 1913 as a limited company. The bank was established with a view to provide
banking facilities to the business community of the South Asia. After the partition of the Indo-
Pak subcontinent, the bank moved to Dhaka (that was the capital of former East Pakistan at
that time) from where it commenced business till August 1948. In 1956, the bank transferred
its registered office to Karachi, where the head office is presently located. Thus, the bank
inherits a 63 years legacy of trust of its customers and the citizens of Pakistan.

2. Nationalization:
In January 1974, the Government of Pakistan nationalized MCB following the Banks
(Nationalization) Act 1974. MCB was the only bank which was nationalized solely as neither it
nor any other bank being merged with it due to its consistent and firm policies and its sound
position.

3. Privatization:
A wave of economic reforms swept Pakistan in the lattes introducing the Need for
privatization of state owned banks and companies. This was the first bank to be privatized in
1991 and the bank was purchased by a consortium of Pakistani corporate groups led by
Nishat Group. 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.

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Introduction Summit Bank

The core objective of preparing this report is to express my learning during the 6 weeks period
of internship. This is the mirror of my practical exposure that is originated through time spent
in Summit Bank Limited.

The report is about Summit Bank its products, field of activities and its financial analysis. In
the report, SWOT analysis is conducted so that I may able to give an authenticated approach
to problems and Dilemmas faced by the Branch. When I conduct comparative analysis of
operations, products offered and funds used, I found it far better as compared to other banks
working in Pakistan.

History Summit Bank

Summit Bank Ltd is one of the fastest growing commercial banks of Pakistan, which, in a very
short span of time, has expanded its network across the country and built an infrastructure
based on state of the art Risk Management Framework as well as IT platform. Also
targeting to be a universal bank in terms of providing products and services in all key segments
of banking i.e. Corporate and Investment Banking, Trade Finance, Commercial Mid-Market /
SMEs, and Consumer Banking, it commenced its operations in August 2006.

The Pakistan operations of Rupali Bank Limited were acquired by Arif Habib Securities Limited
under the Scheme of Amalgamation approved by the State Bank of Pakistan. The name of
Rupali Bank Ltd was subsequently changed to Arif Habib Rupali Bank Ltd and then finally to
Arif Habib Bank Ltd in October 2007. On 31st March 2010, Suroor Investments Ltd, a company
incorporated in Mauritius, acquired 59.41% stake in Arif Habib Bank Ltd from Arif Habib
Securities Ltd, and on 18th August 2010, Arif Habib Bank Ltd was rebranded as Summit Bank
Ltd.

Suroor Investments Ltd. also entered into share purchase agreements (SPAs) with majority
shareholders of My Bank Ltd and Atlas Bank Ltd, who after completion of the transactions
have merged in Summit Bank Ltd expanding the Banks geographical outreach with a network
of 166 Real Time Online branches across the country. In line with the managements vision
of making this bank a front runner amongst its peer banks, this merger has brought synergies
and access to a wider range of markets and customers.

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Current Position of MCB

Over the years MCB has developed strong relationships with its customers by understanding
their needs and treating them with respect, dignity and importance. The driving force behind
its commitment and services is its focus on customers ensuring that it not only meets, but
also exceeds their expectation.

They strive to achieve excellence by ensuring that every moment of their time is spent in
adding value, making sure that they do things right, first time, and every time. With the quest
of quality MCB has always taken initiatives bringing banking into a new arena; from cash to
the convenience of plastic; from branch banking to internet banking and from face to face
customer interaction to online accessibility.

Today, MCB in one of the largest foreign banks in Sri Lanka, the first bank in Pakistan to launch
Global Depository Receipts (GDR) in 2006, has strategic foreign partnership with Maybank of
Malaysia which holds 20% shares in MCB through its wholly owned subsidiary Maybank
International Trust (Labuan) Berhad since 2008, has international indirect regional presence
in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic
network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5
million approximately.

MCB is reputed as one of the soundest financial institution and as one of the leading banks in
Pakistan with a deposit base of PKR. 462 billion approximately and total assets of PKR 605
billion approximately. The bank is versed as one of the oldest and most responsible banks in
Pakistan and has played pivotal role in representing the country on global platforms while
being one of the few institutions that are recognized and traded in the international market.
The bank has also been acknowledged though prestigious recognition and awards by Euro
money, MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker

In December 2016 an agreement between MCB and NIB (a Singapore base company) formed
an agreement a merger, according to which MCB accrued the shares of NIB bank in Pakistan
which results in the enhancement of MCB network nationwide.

MCB Banks share increased 2.25%, or Rs5.05, and closed at Rs229.24 with a volume of 1.38
million shares at the stock market.

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Problems Related To Your Company

Advertisement:
The majority of people are not well aware about the products of MCB. Therefore it should
advertise extensively especially RTC and Master Cards.

Accommodate Behaviorally:
A behavior has been noted that bank tries to feel at ease with good looking, rich and educated
people and the poor looking customers feel some bit strange in the environment of the bank.
The bank employees should try to accommodate behaviorally all type of customers.

Mismanagement of Time:
Mismanagement of time is another big mistake in MCB branches, the bank official time of
closing is 5:30pm but due mismanagement of time allocation and work the staff is normally
on their seats till 7:00 or 8:00 clock.

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Hierarchy of Our Company

Chairperson
Mian Muhammad Mansha

President
Muhammad Tahir Qayum

Corporate Banking
Commercial Banking Commercial Banking
Group
Group - North Group - South
Muhammad Shoaib
Imdad Ali Butt Shahid Sattar
Qureshi

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Flowchart of Our Company

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Process to Be Benchmarked
As we all know in this modern era everybody does possess a bank account, which are used to
sends back daily livings to his family in his home town, and to the top business tycoons who
make major business transactions all across the globe. A well-developed bank is a key player
in modern financial markets, by making new competitive strategies among other banks,
coming up with better finance beneficiary program for their customers, like loans, saving
accounts, business accounts and current accounts etc. so by having a large penetration in
public sector of banks they can play a big role for the betterment of public from social sector
to economic. Even though after having a very big network of MCB throughout the country its
still lacking many thing which can be added to increase its serviceability by properly analyzing
its area of working.

By keeping these points in mind we select MCB for this project and establishing a
benchmarking process to evaluate weakness, flaws and gaps between MCB and our
benchmarked bank (Summit Bank) to improve quality of services.

Objectives of MCB
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.

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.

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.

Customer Centricity:
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.

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.

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Areas Need to Be Improve

Waiting Facility for Clients
At MCB people are standing in a queue to wait for their turn.

Learn from the data: Customer satisfaction is the number one

priority, because dissatisfied customers will not continue you
service.

Parking Facility
At MCB there is no parking facility for their customers as people
have to park their bikes and cars on road.

Mobile App for Customers Ease

MCB has no mobile application for customers help.

Customer Assistance
Employs at MCB do not provide proper assistance and help to customer which leads the
customers to face problems while using any service of the bank.

Study others: feedback from clients

Attractive Interest Rates

MCB is charging high interest rates on loans and other services.

Performance Measured of MCB

It is one of the fact that organizations with excellence in performance can survive alone in the
highly competitive global market conditions. An exceptional system can be maintained by a
highly motivated Human Resource with the state of art equipment. A motivational force is
enough to drive and inspire the employees to do wonders for the organization. Without active
role of HR of the organization, it is impossible to compete in the present fast changing
business world. So, human resource only create the distinction when properly trained,
developed suitably motivated through intrinsic and extrinsic compensation rewards system.

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Organization to Be Benchmarked
We have selected Summit bank to benchmark because in our short survey we found it a much
better organize bank in serviceability.

Type of Organization (Summit Bank)

Summit bank is a banking organization which provides the following services.
Deposit Products
Islamic Banking
Corporate Banking
SME Banking
Consumer Banking
Electronic Services
Remittance

Types of Sources (Summit Bank)

Bonds
Interest over loans (loans for homes, cars, study, business)
Investments from public over insurance programs.
Capital gain from public accounts (current and saving etc.)
Currency exchange
Services charges over money transactions between banks.

Current Situation of Summit Bank

After the completion of the merger processes, the Summit Bank Ltd. is now operating with
the network of 190 branches all over Pakistan offering a wide range of products and services
to its customers and the community at large. Consequent to the merger of the three banks,
multiple branches in the same vicinity have been relocated to the strategic locations. This not
only widened the Banks presence in more areas but also reduced the annual rental cost by 53
million approximately.

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Summit Bank Ltd. launched new products and services, the e-banking services were
introduced that satisfied the needs of different customer segments. The Bank also
successfully entered the VISA International network by

Besides broadening the Banks sources of foreign exchange and income, our entry into the
VISA network means that owners of VISA-branded cards issued anywhere in the world
can now, without restriction, enjoy the convenience of having access to local currency
funds at all ATMs of the Bank.

The internet banking facility of the Bank continues to provide immense convenience to
both personal and business clients who need to regularly access and monitor their
transactions. The Internet Banking service now provides customers the ease of being able to
make transfers to other accountholders in the ease and comfort of their own homes or
offices.

History of Summit Bank

In October 2007, Arif Habib Securities Limited under the Scheme of Amalgamation set by the
State Bank of Pakistan acquired the Pakistan Operations of Rupali Bank Limited; hence
forming Arif Habib Bank. In 31st March 2010, Suroor Investments Ltd, a Mauritius based
investment firm, acquired 59.41% stake in Arif Habib Bank Ltd from Arif Habib Securities Ltd,
and on the 18th of August 2010, Arif Habib Bank Ltd was rebranded as Summit Bank Ltd.

Summit Banks parent company, Suroor Investments Ltd, later acquired majority shares of My
Bank Ltd and Atlas Bank Ltd in Pakistan. The operations of the later mentioned banks were
then merged under the single umbrella of Summit Bank Ltd, thus expanding the Banks
network to more than 190 Branches.

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Hierarchy of Summit Bank

Mr. Nasser Abdullah

Hussain Lootah
Chairman

Mr. Muhammad Zahir

Mr. Husain Lawai
Esmail
Vice Chairman
President & CEO

Mr. Shehryar Faruque Mr. Farid Uddin Mr. Asadullah Khawaja

Director Director Director

Performance Measured of Summit Bank

Summit bank improving itself day by day by introducing different services and make their
clients and provide them an easy and a comfort zone.

Summit bank treating their customers as a Boss and understanding their needs and work on
it.

Friendly staff
Online services
Concern about their customers by knowing their problems

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GAPS between MCB and Summit Bank

Building

MCB buildings are mostly build with old Summit banks has newly design buildings
architecture design because of being old according to modern banks architect
bank. structure.

Owner

MCB owner is a controversial person Summit bank is not under a single persons
involve in many corruption cases. veto power but is under different groups of
investors who forms a board which takes the
decisions related to organization.

Ethical Behavioral Training of Staff

In MCB usually banks staff specially cash Summit bank staff are more cooperative and
officers and cash counter doesnt behave friendly in nature
politely they have the biasness among their
customers according to their nature of
accounts.

Markup Interest Rates

MCB is offering low markup rates to their Summit bank offering high markup rates to
customers their customers

Benefits of Being Less in Numbers

MCB has more number of branches which Summit bank are very less in numbers in
includes overseas branches as well which branches which make them easy to manage
makes difficulties for them to perform their them.
managerial issues

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Action Plan
It is undouble known that MCB is one of the largest banking network of our country but the
think is lacking that good management of its resources and lacking of competent top
management. So all we need is to just make few small changes to revitalize its all structure to
be among one of the great banks of country for example the bank must form are system which
divide the whole network of MCB into small units e.g., making small regional divisions and
appointing authorities that will monitor the functioning of branches situated in these regions.
Then these authorities of these divisions will them responsible of performances of their region
and will be answerable to the higher authorities.

Staff training is also necessary according to the modern banking system.

Affective marketing plans must be brought in to capture the market share.

Some ethical prospective must also be employed e.g., all branches must be eco-friendly,
proper parking system, proper securities plan etc.

Some new things can also be brought in e.g., making contracts with international banks to
transfer money in and out of the country at very low rates to provide benefits to businesses
and individuals working outside the country who sends back money to their families to use.
This will also help to avoid the illegal ways of transferring money, e.g., Hundi.

(A Hundi is a financial instrument that use in trade and credit transactions. Hundis are used
as a form of remittance instrument to transfer money from place to place, as a form of credit
instrument or IOU to borrow money and as a bill of exchange in trade transactions. The
Reserve Bank of India describes the Hundi as "an unconditional order in writing made by a
person directing another to pay a certain sum of money to a person named in the order." The
operation of the Hundi system has many parallels with the Hawala system also widely used in
Africa, India and the Middle East).

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Conclusion
From the current analysis we found that MCB is good and holds an impressive position in
market but MCB is not best. Today with the increase of competition in market everyone has
to best to survive in the market. Technology up gradation, better performance are all required
to be at top in the market.

Suggestions
Here are following suggestions MCB should follow

Providing ease to wait for their turn while standing in the queue.
Providing better parking facility.
Technology up gradation.
Employees should behave politely with clients.
Competitive interest rates.
Better infrastructure.

Limitations
Less information on internet.
Less know how of staff persons in both banks.
Converting raw information gathered from different branches into proper English
paragraph.
Distrust of staffs while giving information while making this report.

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