CHAPTER NO 1

1.1 Introduction of MCB

MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion and total assets over Rs.500 Billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks. The Bank has a customer base of approximately 4 million, a nationwide distribution network of over 1,000 branches and over 450 ATMs in the market. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base. MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan, with a network of over 900 branches, over 750 of which are Automated Branches, over 225 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. MCB has become the only bank to receive the Euromoney award for the fourth time in the last five years. MCB won the "Best Bank in Pakistan" in 2005, 2004, 2003, 2001, and in 2000 the "Best Domestic Bank in Pakistan" awards. In addition, MCB also has the distinction of winning the Asia Money 2005 & 2004 awards for being "The Best Domestic Commercial Bank in Pakistan".

MCB offers a wide range of financial products and advice for Personal and Corporate Customers. You can also apply on-line for many of our Online Services. Customers can access their accounts using our simple and convenient MCB Virtual Internet Banking services. 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. It encourages diversity and treats each of its employees with fairness. It gives constructive feedback for their continuous development and seeks suggestion from all employees for further improvement. It ensures that quality performance is acknowledged and rewarded and exercise utmost responsibility in decision making with regards to its employees. Integrity of its employees is the strength of its performance.

MCB believe in achieving their mission and vision by working together as a combine group. It treats its colleague as its internal customer and ensures that the requirements of internal customer focus are always met. Equipped with in-depth product knowledge and

recognizing the strengths in each individual, It strive for optimum-results from its coworkers and bringing out peak performances by working towards common goals and objectives in today's dynamic banking environment.

History
MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947. MCB is not an overnight success story rather good track of services are responsible for the leaps and bounds progress. 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 52-year legacy of trust in its customers and the citizens of Pakistan. Before separation of Indo Pak, the need for more Muslim banks was felt. And Muslims having strong financial capacity were thinking to invest in this sector as well. This was the idea, which paved the way for setting up Muslim Commercial Bank Ltd. known as MCB. This was the third Muslim bank in the subcontinent. This bank was incorporated under companies act 1913 on 9th July 1947 at Calcutta. But due to changing scenario of the region, the certificate of incorporation was issued on 17th August 1948 with a delay of almost 1-year; the certificate was issued at Chittagong. The first Head office of the company was established at Dacca and Mr. GM Adamjee was appointed its first chairman. It was incorporated with an authorized capital of RS.15 million.

After some time the registered office of the company was shifted to Karachi on August 23rd, 1956 through a special resolution, recently the Head office of MCB has been transferred to Islamabad in July 1999 and Head office is termed as Principal Office. This institute was nationalized with other on January 1st, 1974. At that time it had 506 branches and deposits amounting to Rs.1.640 m. Although MCB has a reputation of a conservative bank but nationalization also left its effects on this institute as well and by end of year 1991 in which it was privatized the total number of branches were 1.287 and deposits amounting to as high as Rs.35,029 m .When privatization policy was announced in 1990, MCB was the first to be privatized upon recommendations of World Bank and IMF. The reason for this choice was the better profitability condition of the organization and less risky credit portfolio which made'' it a good choice for investors. On April 8th, 1991, the management control was handed over to National Group (the highest bidders). Initially only 26% of shares were sold to private sector at RS. 56 per share. REVOLUTION IN MCB Incorporated in Calcutta, India on 9th July 1947 First chairman Mr. G.M Adamjee Head office was shifted to Dhaka in August 1948 Head office was shifted to Karachi in august 1956 Nationalized on 1st January 1947 Privatized on 8th April 1991 Fist chairman after privatization Mr. Mian Muhammad Mansha

Head office transferred to Islamabad 1991.

THE BUSINESS MCB is in its over 50 years of operation. It has a network of over 900 branches all over the country with business establishments in Sri Lanka and Bahrain. The branch break-up province wise is Punjab (57%), Sindh (21%), NWFP (19%) and Baluchistan (3%) respectively. MCB PHILOSOPHY MCB Bank knows the best to deal with its customers and thus has a customer oriented philosophy. The MAB philosophy in their words is described below For us, you are not just a set of numbers; you are a valued customer whom we know by name. This helps us serve you exactly the way you want us to thats the difference! We offer effective solutions derived from our personal knowledge of all your banking requirements which are met when we meet youby name. MARKET STANDING MCB has an edge over other local banks, as it was the first privatized bank. The State Bank of Pakistan has restricted the number of branches that can be opened by foreign banks, an advantage that MCB capitalizes because of its extensive branch network. Ten years after privatization, MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer.

MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clientele includes public sector companies as well as large local and multinational concerns. MCB is also catering to the growing middle class by providing new asset and liability products. The Bank provides 24 hour banking convenience with the largest ATM network in Pakistan covering 41 cities with over 225 ATM locations. The Banks Rupee Traveler Cheques have been market leaders for the past six years and have recently launched their Gift Cheques Scheme. MCB looks with confidence at year 2005 and beyond, making strides towards fulfillment of its mission, "to become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work". COMPETITORS National Bank of Pakistan Bank Al falah United Bank Allied Bank of Pakistan Citibank Habib Bank Ltd. Faysal Bank Prime Commercial Bank ABN Amro Bank

Saudi Pak Commercial Bank Indus Bank Soneri Bank The Bank of Khyber Bank of Punjab Gulf Commercial Bank Metropolitan Bank Standard Chartered Askari Bank

NORMAL OPERATIONS OF THE BANK TIMINGS MCB Bank follows the rules stated by The State Bank of Pakistan. Bank Timings Public Dealing Friday Saturday WORKING DAYS Bank working days are six, from Monday to Saturday. 9 am to 5 pm 9 am to 5 pm 9am to 1pm 3pm to 5pm 9 am to 5pm

WORKING METHODS MCB Bank follows computerized system they do follow manual system but to a very small extent. They use a banking software program SYMBOLS to run the bank's business operations. The Bank is implementing the full suite of the latest version of SYMBOLS Version 8. Muslim Commercial Bank runs SYMBOLS e-Finance modules to deliver personalized services to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center serves as its core banking transaction processing engine.

1.2 VISION & MISSION

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.

1.3 VALUES
Integrity: We are the trustees of public fsunds 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. Teams work together for the smooth and efficient implementation of ideas and initiatives. Excellence: We take personal responsibility for our role as leaders in 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. 1.4 OBJECTIVES OF ORANIZATION The following are the objectives of Muslim Commercial Bank Limited. CREATING AND MANAGING VALUES :The first objective of Muslim Commercial Bank Limited is to create and mange the values, which is one of the back bone of the objectives of any well organized and managed organization.

HUMAN VALUES The second objective of Muslim Commercial Bank is to take care of the Human capital which is a necessary thing for the development and prosperity of any well established organization. BEST PLACE TO WORK The third objective of Muslim Commercial Bank Limited is to make it a place which is much feasible and comfortable for employees of the bank. The MCB is always conscious in developing such place where employees of the bank feel easiness. TECHNOLOGY The forth objective of Muslim Commercial Bank Limited is to bring new and latest technology in the operations of the bank. At MCB, technology has a direct relation with your needs; it is a means for creating value and convenience for the customer. Over the last few years MCB has invested heavily into strengthening its technology backbone. Today it is leading the way in banking technology and setting new standards for the banking industry; penetrating into the local market, listening to the needs of the people and educating them of simple financial products and services that create both value and convenience. MCBs strength lies in providing a technological base at the grass roots level of the society with a challenge to educate and assimilate such systems across vast cultural and economic backgrounds. With over 768 automated branches, 243 online branches, over 151 MCB ATMs in 27 cities nationwide and a network of over 16 banks on the MNET ATM switch, MCB continuously innovate new products and services that harness technology for the customers benefit.

UNDERSTANDING RELATIONSHIPS The fifth and very important objective of Muslim Commercial Bank Limited is to create such an environment which is suitable for creating understanding and relationship between the employees, thus going towards the way of development and prosperity. Over the years, MCB has fostered strong bonds with its customers. Understands them; their needs. They feel comfortable with MCB; its their bank; it responds to them; listens to them; partners with them; grows with them. At MCB, banking is all about being there for people, making a home in their hearts-continuously building relationships on mutual trust and confidence. We understand that relationships are about expectations-our products and services are based on your customers, expectations. Be it financing for personal or business related needs, funds transfer and trade related facilities or need for different types of deposit accounts, MCB offers you a variety of products and services customized to satisfy your individual needs. UNDERSTANDING CONVENIENCE The next objective of Muslim Commercial Bank Limited is to make understanding a convenient thing for the whole environment of the bank, for the purpose of boosting up its values and prosperity in such a competitive environment. Convenience is what the customer is looking for; and this is what we at MCB are continuously striving to provide. Whether it is the 24 hours cash convenience of our ATM network or the easy availability of financing requirements or simple opening of account, MCB has tailored its products and services to make your life easier. MCB knows the particular needs of its diverse customer base d continuously develop products and services that fulfill these needs.

UNDERSTANDING RELIABILITY The last but not least objective of Muslim Commercial Bank Limited is to make an environment which have an understanding of reliability in the whole structure of the bank. With a strong financial base, a promising team and the right resources, MCB has proved to be a reliable partner indeed. MCB understands the special needs of the business, trading and agricultural sectors. Strategically located branches in small towns and cities provide warm services and advice to the small businessmen and local traders. MCB speaks their language; it understands their needs and provides tangible results. By responding in a timely manner with a flexible approach, MCB provides its clients with the reliable financial service and support they require to successfully achieve their business objectives. With a solid foundation of over 50 years in Pakistan and having recently completed 10 successful years of privatization, MCB is strongly positioned to lead the banking sector in the new millennium. You can feel safe in our hands. Overcoming Challenges Overcoming challenges with optimism. Adapting to change can be a huge challenge. At MCB, our positive approach to life and business enables us to anticipate and welcome change. During these financially trying times, our enthusiasm and confidence helps us to shape a future full of prospects and opportunities. Overcoming challenges with courage. At MCB, we dare to brave the unchartered. By spearheading relief efforts in refugee settlements, we continued to serve in a territory others were hesitant to enter. After all, only by facing challenges can one appraise life with courage, strength and belief.

Overcoming challenges with teamwork. We believe that cultivating team spirit is critical to foster personal and organizational growth. At MCB, this signature approach to teamwork proves how collective progress helps achieve continuous growth. Overcoming challenges with conviction. At MCB, we are driven to deliver the best. Under the most demanding circumstances, we are committed to achieving our vision of growth and prosperity through innovation. It is this brand of conviction that culminates in greater success. Overcoming challenges with focus. The vision of a secure and prosperous future requires insight .A combination of foresight and hindsight that has enabled MCB to withstand new and demanding challenges and emerge as one of the forebearers of stability. Overcoming challenges with persistence Success comes with perseverance, endurance and a commitment to tenacity. Which is why, our dedication to excelling in all areas manifests itself through an ever-expanding portfolio of products and services; not to mention, a consistently growing branch network. PROMINENT FEATURES SBP allowed exporters obtain foreign currency loans against firm contracts L/Cs and MCB made arrangements for clients to use the facility at EPZ branch, Karachi and offShore Banking Unit, Bahrain for the purpose. It also offered services to clients for procuring foreign currency loans from abroad.

The other significant development is the launching of the MCB Imdad-e-Bahami Scheme for Housing Improvement in addition to commercial lending, MCB has accepted the responsibility to offer social lending. The scheme, launched with the co-operation of the Swiss institution aims at providing easy credit to low income group is Urban areas to improve their living condition. Other Prominent features are as follow: Committee Structure Organizational culture Customer Service Automation & Modernization International Appearance Employees Mgt Relation Human Resource

COMMITTEE STRUCTURE MCB employs a very strong committee structure to oversee decision by decentralized operations. Officers are given strict limit to authority. Within prescribed limit, officers do indeed make their own decision- but according to guidelines, procedures, and rules. Decision outside of prescribed limits is taken to high-level committees. ORGANIZATIONAL CULTURE Officers of the bank don't need to spend a lot of time into whether they should consider issues or ideas. They just know their certain parameters beyond which they won't go. The employees in the organization are well dressed, well communicated and well cooperative. Officers learn what these parameters are through their experience with various

committees-through a process osmosis. In visiting and in participating on committees, individuals get to see what their cohorts are doing. Cross - fertilization of ideas occurs and, often, morale is helped. Major corporate policy changes occur through a process of involvement by levels of management. CUSTOMER SERVICE Perhaps the most important yardstick for testing the success oriented organization is in the area of customer services and it is in this very sphere that MCB have made the leading strides. To eliminate delays in dealing with credit proposals, of which complaints were frequent is the past, an effective three lier system was introduced instead of six lier system. Under this new system adequate sanctioning powers were delegated to Branch, Regional and General Managers and also to the senior executives in charge of credit at the Head Office. Only proposals exceeding their powers are now considered in the credit/executive committee. As a part of the new system, the role of the Head office was redefined from supervisory to supporting only the inspection division at the Head Office now has a supervising role for ensuring the implementation of the Banks Directives. The new policy and the restructuring of the system had a two fold positive outcome. Customer were provided improved services and needed facilities. The Banks executives and other staff come to possess a new sense of confidence and dignity in their jobs. Automation & Modernization The project of on line banking has been successfully introduced and provides customer with the facility to operate from any branch in the network, so for, more than 80 branches

have been connected to the MCB Data Network between/among Karachi, Lahore, Rawalpindi, Hyderabad, Multan and Islamabad. The bank has installed a number of Automated Teller Machines (ATM) to provide 24 hours cash facility to its customer. ATMs have been installed at 40 branches in Karachi, Lahore and Islamabad. The network have been expanded to Multan and Faisalabad since 1997. The ATM at Karachi airport has also started functioning and those at Lahore and Islamabad airport have been inter-linked in 1997. Swift The bank has also started replacing conventional telex messaging system for fund transfer, L/C opening etc., by connecting on-line with the world wide interbank Financial Telecommunication Network (SWIFT). So for, MCB has on line 20 branches in Karachi, Lahore, Faislabad, Gujranwala and Sialkot on SWIFT, to meet foreign correspondence requirement. Human Resource The bank has five special importance to the aspect of training and career planning of its staff members. Forwards this main objective, several training courses have been organized initiating a self development process, in order to accelerate organizational growth and to further improve the Banks level of expertise and efficiency. In 1998, a total of 576 courses were conducted which covered a wide variety of topics connected with banking and customer services. An aggregate numbers of 8,776 staff member participated. Additionally 245 officers and executive took part in training courses and seminars conducted by professional institution, such as institute of Bankers Management

Association of Pakistan, Pakistan Institute of Management and Pakistan Banking Council. Eight executive also participated in courses conducted is foreign countries. The MCB executive development centre, set up in November, 1995 for used attention an the development and grooming of our executives. Eminent scholars and specialists were invited, during 1996, to apprise our executives of new concepts and techniques to keep abreast of the constant changes taking place locally and globally. A total of 54 seminars were held this year in which 518 executive participated. International Appearance After the closing down of the London operations prior to privatization, MCB was left with no foreign branches and operations. In 1994 as planned the bank opened up its international operations by inaugurating its branches in Dakha and Colombo. More branches are operating in Pettah, Srilanka and Chittagang. Access to Middle East and Africa is in progress. Employees Management Relation The employee management relations remained cordial. Up-to-now more than 290 offspring of the employees are inducted in the bank as cashier and typists on merit basis. Extensive training PROGRAMME for the employees continued to supplement their capabilities. The management is indebted to the employees for sharing its vision and dream to make MCB the best Bank of the country, that is client driven, preferred by the customers and tested on the touch- stone of customer satisfaction.

1.4 AWARDS & ACCOLADES

EUOROMONEY AWARDS: MCB bank Ltd. has also been awarded by the Euromoney Awards and the Asia Money Awards. The prestigious Euromoney award has been given to MCB for five times in the past six years. BEST BANK IN PAKISTAN 2005 : MCB is the only bank to receive the Euromoney Award for Excellence for the fifth time in the last six years. BEST BANK IN PAKISTAN AWARD 2004 : In a continuous winning streak, MCB took pride in 2004 by receiving the Euromoney prestigious award of excellence for being the best bank in Pakistan for the fourth time in the last five years. BEST BANK IN PAKISTAN AWARD 2003 : MCB won the Euromoney Award 2003 for the Best Bank in Pakistan for the year 2003 due to its quality, integrity and dedication, striving to achieve collective success by understanding changing trends and assimilating into diverse cultures.

BEST BANK IN PAKISTAN AWARD 2002 : MCB received the Best Bank in Pakistan award for the year 2002 at the Euromoney Awards 2002. BEST DOMESTIC BANK AWARD 2000 : MCB was awarded the Euromoney Award 2000 for the Best Domestic Bank in Pakistan for the year 2000. Asia Money Awards: MCB is the only bank that has received two Asia Money Awards for the best domestic bank in Pakistan besides four Euromoney Awards in the last five years for The Best Bank in Pakistan in recognition of its consistent and enviable performance. These awards have been conferred up on the Bank for its consistent growth and staying ahead of the increasing competition. Asia Money commends the Banks strategy of focusing on fee based income by expanding its investment banking and cash management services at the time of low interest rates during the past year to increase its revenue and profitability. It further elaborates that the Bank has introduced several new derivative and hedging products for its corporate clients, which were previously offered only by a few foreign banks. It added that now Pakistans top corporate depends on MCB to provide first rate syndicated lending services. THE Best Domestic Bank in Pakistan 2009: MCB received the Asia Money Award for the best domestic bank in Pakistan in the year 2009.

THE BEST DOMESTIC COMMERCIAL BANK AWARD 2005 : MCB received the Asia Money Award for the Best Domestic Bank Award in the year 2005. THE BEST DOMESTIC COMMERCIAL BANK AWARD 2004 : MCB has a distinction of winning the Asia Money 2004 award for being the Best Domestic Commercial Bank in Pakistan. HEAD OFFICE AT GLANCE: I. I. Chudrigor Road of Karachi has same importance in Pakistans economy as of the Wall Street in world economy. The division working under MCB Head office are as follows: Administration Credit Management Investment Banking Human Resource Information Technology Corporate Planning & Budgeting Finance & Treasury International Division Inspection & Audit Law Division Marketing & Development Trustee Division

Under the President An Executive Committee and a Credit Committee works. All the matter of the bank join to the board of director are presented to the executive committee which is responsible for daily operation of the bank .The request for credit exceeding the General Manager power is approved by the Credit Committee. Under the area Executive is the General Manager who is the in charge of the Circle Office. Before privatization there were provincial chiefs for all the four provinces. But this management now has abolished the provincial officers and improved the efficiency of the bank CIRCLE OFFICE The working of circle office is to control and regulate the functions of branches which are under in its control. The functions of circle office is to mobilize the deposits and receive reports from branches. Circle office is like a mini head office. Agents and correspondents of MCB are in all commercial cities of the world. Circle office is divided in the following division: Credit Management Audit & Inspection Human Resource Marketing & Development

Province Punjab Sindh Balochistan NWFP & AJK

Circles 9 5 1 2

Region 27 12 2 7

Branches 823 278 35 235

1.5 ORGANIZATIONAL STRUCTURE OF MCB BANK LTD As MCB is a banking company listed in stock exchange therefore it follows all the legalities which are imposed by concerned statutes Mr. Muhammad Mansha is chairman & chief executive of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company. Operational Management of the bank is being handled by a team of 10 professionals. This team is also headed by Mr. Muhammad Mansha. The different operational departments are Consumer Banking & IT div; Financial & Inter branch div; Banking operations div; HR & Legal div; financial control & Audit div; Credit management div; Commercial Banking div; Corporate Banking div; Treasury management & FX Group and lastly Special Assets Management (SAM) Group. For effective handling of branches, it has been categorized into three segments with different people handling each category. These categories are Corporate Banking Commercial Banking Consumer Banking

CORPORATE BANKING

These are branches, which have an exposure of over Rs. 100 million. Usually includes multinational & public sector companies. COMMERCIAL BANKING The branches which has a credit exposure of less than Rs. 100 million but having a credit portfolio of more than Rs. 20 million (excluding staff loans) Usually branches in large markets and commercial areas come under this category. CONSUMER BANKING These are the branches that have exposure up to Rs. 20 million and these include all the branches that are neither corporate nor commercial branches. Organizational Structure: 1.6 ORGANIZATIONAL HIERARCHY OF MCB MANAGEMENT LEVEL The organization chart within a department and in different offices is as follows: Divisional Heads .. Head Office

Regional Head (EVP) .. Regional Office Zonal Head (VP) Branch Manager .. Zonal Office .. Branch

(VP, AVP, GRADE 1, 2, 3)

1.7 ORGANIZATIONAL SETUP OF MCB

BRANCH NETWORK

PROVINCE WISE PROVINCE PUNJAB SINDH NWFP BALOCHISTAN AZAD J. KASHMIR DOESTIC TOTAL OVERSEAS EPZ TOTAL BRANCHES 665 248 106 37 18 1074 6 1 1081 SUB-BRACHES 7 1 8 8 TOTAL 672 249 106 37 18 1082 6 1 1089

COMMERCIAL BRANCH BANKING GROUP Circle/ No. of Brs. Regions No of Brs No. of SubBrs.

Total CBBG .

South Central East North 332 331 339

205

01 06 01

CONSUMER BANKING GROUP

Regions Consumer Liability Central Lahore

No of Brs. 15

No. of SubBrs. -

Consumer Liability North Islamabad Consumer Liability South Karachi Privilege Banking Karachi

10 16 04

OPERATIONS GROUP Circle. Wholesale Banking Operations Islamic Banking Operations Total No. of Branches 10 11 21

Group CBBG-south CBBG-East CBBG-Central CBBG-North CONSUMER BG OPERATION Gp. WBGTransaction Banking Div.

Circles 4 3 4 3 -

Regions 7 8 12 11 3 -

No. of Branches 205 231 232 239 45 21 1

OVRSEAS

14

41

6 1089

TOTAL

1.8 POLICIES OF MCB

Internship Policy: MCB is the bank that serves all type of customers and makes its policies according to their needs and demands here the MCB has the policy to serve the students that is six weeks internship.

MCB has no gender bias For the selection of the employee MCB focus on merit rather than gender. There

is no any kind of discrimination on the basis of male or female, a person having the skills and knowledge and is perfect of that particular job can be selected as the employee. Opening account policy Prior to establishing a relationship with new customer MCBobtains basic

information i.e. business, source of income, expected level of activity in the account and reasons for opening the account. Training of employees MCB has the program through which all the employees of the bank get proper training and then work for the achieving the goals. Revenue Recognition MCB recognized its revenue on accrual basis. For example if MCB invest in some different securities and entitled for the profit yet not received, the profit is recorded as when it earned not when it received.

Investments Policy MCB also invest its money other than the advances, while investing in the securities MCB has the following policy to invest in a Held for trading Held to maturity

In the light SBP regulations quoted securities are shown at market values and any changes arising are taken to profit and loss account only upon actual realization. RISK MANAGEMENT The bank is primarily subject to interest rate, credit and currency risks. The bank has designated and implemented a frame work of controls to identify, monitor and manage these risks are as follow . Currency Risk Management To handle with currency risk, MCB enters into futures and swaps transactions in the inter-bank market and with the State Bank of Pakistan in order to hedge its assets and liabilities and cover its foreign exchange position. Credit Risk Management In order to manage the credit risk MCB has a good policy the bank first scan the information about the person who wants to obtain the loan and then assign the limit of sanctioned amount that is decided on the critical analysis of the persons income and resources. MCB is government backed bank thats why it provide the

loan only against the security.

MCBs Competitive Strategies To be competitive the Bank has further reinforced its position in the Consumer banking area by streamlining and re-launching the consumer financing products and introducing more convenience based solutions. With the re-launch of auto finance and house finance products, the Bank pushed the products with full thrust. The Bank has also launched a running finance facility against mortgage of property. Technology continued to play an important role in improving and expanding product offerings. The Bank introduced more IT based products to cater to the changing lifestyles and needs of the customers. MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country. MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet Banking, ATMs and MCB Call Centre, currently with six payment partners. Similarly, the Bank also took initiatives to increase the usage of debit facility. To provide timely and updated information, MCB has also provided a new look to its website which is user friendly and considerably easy to browse. The Islamic Banking initiative has been very successful in attracting new customer, both individuals and companies. Similarly, those relationships, which were confined only to current account facility, have grown into stronger business relationships. The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad.

The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs. Some wide-ranging new strategic initiatives were also taken up which will be important for the Bank in years to come. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of select countries in the Asia-Pacific region. It is projected to earn US$ 1 million in its first year of operations. To increase its international presence, the Bank will be opening its representative office in Dubai and entering into major strategic alliances with banks in the UAE/ especially for marketing our consumer banking products to non-resident Pakistanis. Furthermore, feasibility is also being carried out for entering other international markets. MCB's of operations expenses, continued re-alignment to of be streamlined with focus on

rationalization

back-end

processing

to increase

productivity, enhancement of customer service standards, process efficiency and controls. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade

services to branches with a view to improve efficiency, expertise and reduce delivery cost. Management of Human Resources has been one of our core focus areas. MCB is committed towards attracting, retaining and motivating outstanding people. Challenge for MCB is to provide an environment in which employees can better realize their potential. The Bank introduced 'reward for performance' where high potential

officers

were

identified

and

rewarded accordingly. In view of the competitive

environment, the Bank is focusing on performance and introducing a more robust performance management system. MCB is also strongly committed to training its staff at all levels. The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8. MCB Bank will run SYMBOLS E-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, MCB Bank aimsto raise the level of its customer service and its time to market in new product offerings for its three core banking businesses in Corporate, Commercial and Consumer Banking retaining its market leadership as Pakistan's progressive Bank. POLICY FORMATION PROCESS At MCB Bank all policies are formulated at the Head Office at Karachi and are then distributed among the vast network of more than 950 branches of MCB. Among some of the policies they implement are that the Commercial Office East or West, keeps in view new opportunity for a suitable and profitable location for its new branch. But as all policies are done by the HO no suitable information could be gathered.

MANAGERIAL POLICIES Managers handle their staff at branch level. The duties assigned to them are to keep the monthly deposit up to the mark; opening of new accounts has to be either stable or increasing. They are responsible for assigning leaves to their staff on yearly basis and even handle emergency absence. MCB has a rule of working 9 to 5 daily but, internally their staff has alternate off on Saturdays. The manager has to develop a leave program so as this routine does not disturbs any customer. They have to handle the problems of disappointed or angry customers and convince them about the best service MCB provides. They receive specific targets which they have o achieve within the given time period which results in bonuses distributed among the staff and the manager released by the HO. MCB MARKET MIX Marketing mix is one of the key concepts in modern marketing era. "Marketing Mix is the set of marketing tools that the firm uses to pursuits marketing objectives in the target market". Marketing is very essential in the increment of profit of an organization. It has been observed that the Union Bank is looking after all the basic requirements. The management of Union Bank is concerned enough to accept and modify the desired changes in their organizational setup to attract maximum customers.

There is no separate department for marketing in every branch only Karachi main branch hold it. In every branch 2 or 3 people are there to provide the promotion services. Marketing is done on high level because management is centralized. Now are discussed four variables of marketing mix of Union Bank. Product Price Placing Promotion

1.9 MCB PRODUCTS AND SERVICES PODUCT FOCUS OF MCB : OUR BUSINESS IS TO MAKR SURE THAT YOUR CASH MANAGEMENT NEEDS ARE MET; NO HALF BAKED SOLTIONS. WORKING CAPITAL LOANS : Based on the customer specific needs, the corporate bank offers a number of different working capital finance facilities including Running finance, Cash finance, export refinance, preshipment & post shipment etc. Tailor-made solutions are developed keeping in view the unique requirements of the customers business TRADE FINANCE : 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. INVESTMENT BANKING :

MCBs investment banking team has emerged as a leading player in Pakistans Investment Banking arena .The team handles advisory, corporate finance and capital markets related transactions. With these areas, the team has developed expertise in Private Placements Debt/equity underwriting Term Finance Certificates Loan Syndication Arrangements of Non funded facilities Mergers and acquisitions Privatization Corporate Advisory

TERM LOANS MCB offers Short or medium term Finance certificates to meet capital expenditures and short term working capital requirements of its customers. The loans are structured on the basis of underlying project characteristics and ash flows of the business. CASH MANAGEMENT

MCBs 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 on- line transactions etc. MCB ONLINE SERVICES

With a solid foundation of over 50 years in Pakistan, with more than 750 automated branches, 269 online branches, over 190 MCB ATMs in 34 cities nationwide and a network of over 16 banks on the MNET ATM switch, MCB is positioned at the forefront of the banking industry in Pakistan. This success has been possible because of a neverending drive to achieve higher levels of excellence, constantly striving to raise the level of performance.

MCB ATM SERVICES With an ever growing number of ATMs operating across the nation, the MCB ATM Network is the largest and most advanced of its kind in the country, and is part of MCB's continuing efforts to provide you with convenience that suits your requirements most. And now the MCB ATM has gone global. MCB's affiliation with Master Card International brings about added facilities for the MCB traveler abroad with the Cirrus and Maestro networks. MCB ATM WITHIN PAKISTAN MCB Bank has the largest ATM Network in the country with over 200 ATMs and over 300 online branches. The MCB ATM Card can be used in over 35 cities in Pakistan. Whether customers want to withdraw cash or ask for a mini-account statement, or even use it as a debit card at Maestro POS terminals, the MCB ATM Card gives its customers instant access to their bank account, anytime, anywhere. Additional Conveniences : MCB's revolutionary M-Net Switch enables customers to access their MCB

Account from any member bank's ATM Machine.

Mobile Banking

helps use GSM Phone to access mini-account statements

and balance information from anywhere.

Funds Transfer

Facility enables to transfer funds from one registered ATM account

to another. MCB's Funds Transfer facility is available to all MCB customers who

maintain Pak rupee accounts at any on-line branch and are MCB ATM cardholders. This facility is available at any time you find convenient, 24 hrs, and 365 days. MCB ATM INTERNATIONALLY MCB ATM Card can be used to access MCB account from anywhere around the globe.

MCB ATM is accepted at 634,700 locations where there are *Master Card

or

Cirrus

ATMs allowing a daily withdrawal limit of US$ 200 (or equivalent in

other currencies) on availability of funds in account. Plus, the added convenience of shopping through over 5 million Maestro POS (Point of Sales) terminals globally. ATMS ADDITIONAL INFORMATION PIN CHANGE PIN change option is now given so that customers can have added security with their card. For added security, it is advisable to customers to change their PIN as soon as they receive the card. It is also advisable to keep on changing PIN on a regular basis. If customers feel that their PIN has been disclosed to others, be sure to change the number as soon as possible. PIN FORGOTTEN Customers are advised to memorize their PIN and are asked to never write their PIN down on anything in their wallet, or on the card itself. In case if customers forget their PIN, a new card will have to be made, which can be done by returning

the old card to the MCB online branch and submitting an application for a new card. The new card can be received by MCB users within 72 hours to 5 days.

DAMAGED CARD If card breaks in two or gets distorted, please return the card to MCB Online branch. Customers can receive new MCB ATM card from MCB Online branch within a few days.

CARD LOSS In case of card loss, customers are advised to visit MCB Online branch or call 24hour MCB Call Centre number at (021) 111-000-622. Customers can receive MCB ATM card from MCB Online branch within a few days. If card is not returned from the ATM, contact the branch where the card is lost. Customers will have to complete a form and will then receive their card from MCB Online branch.

INCORRECT PAYMENT If by any chance the ATM does not dispense the correct amount of money or does not dispense the money at all, customers can contact the branch where the ATM was used or their home branch and inform them immediately. They will have to complete a form and the amount will then be credited to their bank account. ATM RECEIPTS

Customers are advised to keep their ATM receipts after every transaction. It is a good way to guard against fraud and make record-keeping easier.

MCB ATM REGULAR CARD MCB ATM allows withdrawal of up to Rs. 10,000 per day and a maximum of 3 withdrawals per day per card. MCB GOLD CARD MCB gold card allows Rs. 25000/- per day and a maximum of 6 withdrawals per day are allowed. MCB BILL PAYMENT For the first time in Pakistan, MCB has introduced unique service - MCB ATM Bill Pay which allows customer to pay utility bills and recharge their mobile phones the easy waythrough MCB ATM's, available 24 hours-365 days. This facility is for all MCB ATM Card holders and MCB ATM Cash Card holders alike. It is faster, easier, convenient and more secure. Customers can decide when he has to make the payment and how much he wants to pay. Its secure as customers do no have to carry cash or even their bill, they can just use any MCB ATM to pay their utility bills and recharge mobiles around the clock. MCB ATM account holders can pre-register their MCB account(s) and Consumer / Account numbers of the Utility Company / Service Provider with their home branch to avail this service. MCB ATM Cash card holders can directly enter the Consumer / Account numbers of the Utility Company/Service Provider onto the relevant ATM screen to make the utility bill payment or to recharge their mobile phones.

MCB MOBILE BANKING

At the forefront of technological excellence, MCB has proudly introduced MCB MOBILE BANKING. MCB mobile banking provides the convenience of accessing account balance information and mini statements whenever the customer is available. MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365 days. They just have to call MCB Help Line on (021) 111-000-777 or any MCB online branch for assistance. MCB Mobile Banking gives customer easy and quick access to their account(s) at any time including holidays. With MCB Mobile Banking customer can Check your balance View the last 4 transactions of your MCB account

MCB Mobile Banking is a free service for MCB account holders who have an ATM card. All they have to pay for is the cost of an SMS message if charged by the service provider. MCB CALL CENTRE

Keeping up with banking services can be tedious but not with MCB Bank, where phone service is at fingertips. The customers just have to dial Help Line from the comfort of

their home or office or wherever they happen to be. It offers basic banking services for their convenience, eliminating the need for them to make unwanted trips to branch. MCB CALL CENTRE SERVICES BANKING SERVICES Balance Inquiry (receive details through fax, SMS or email - registered users) Foreign Exchange Rates (receive details through fax, SMS or email -registered users) Account Statement Cheques book requests ATM SERVICES ATM Lost / Stolen Reporting (Hot / Warm) ATM Transaction Details, History & Complaints MCB MOBILE BANKING SERVICES M-PIN Reset Block / Unblock Service RUPEE TRAVELER CHEQUS (RTC) SERVICES RTC Verification (receive details through fax, SMS or email -registered users) Lost / Stolen Reporting (receive details through fax, SMS or email -registered users)

OTHER SERVICES Product Information (receive details through fax, SMS or email -registered users. ATM Locator (receive details through fax, SMS or email -registered users) Branch Locator (receive details through fax, SMS or email -registered users) Tele-banking Services Management i.e. TPIN change, Block / Unblock service Customer Complaints Fax & email Service

MCB SMART CARDS

Smart Card is a multi-function debit card that provides with round the clock access to bank account for purchasing, cash withdrawals and other transactions. MCBs Smart Card is a secure and convenient instrument of payment with unmatched functionalities. It provides 24-hour direct access to bank account. The convenience and flexibility of MCB Smart Card helps live a smarter life. It not only helps managing expenses, but also eliminates undue interest on day to day credit card transactions. Balance is always within reach and customers can 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. Customers can avail the following functionalities on MCB Smart Card.

Smart Card is available in the Classic and Gold category with a further choice of Local or International versions. With these card categories, supplementary cards for family members are also available. The difference between the classic and gold categories is based on their purchasing and withdrawal limits as given below.

ATM Withdrawal LimitPOS Purchasing Limit (Rs.) Local Classic Gold International 10,000 Classic Gold 25,000 100,000 150,000 10,000 25,000 50,000 100,000 (Rs.)

MCB SMART CARDS FEATURES Purchasing Bill payments Funds transfer Cash withdrawals Balance inquiry Mini statement Mobile banking Internet banking

MCB DEBIT CARD MCB Debit Card is a secure, convenient and quick payment facility that enables to do purchasing by using existing MCB ATM / MCB Smart Card as a DEBIT CARD. MCB DEBIT CARD FEATURES No need to carry cash, when MCB Card is your companion. Acceptability of your card at Merchant Locations, including Petrol Pumps, Grocery Stores, Bakeries, Departmental Stores, Jewelers, Travel Agents, Restaurants, chemists, hospitals and many more locations displaying this sign. When MCB Card is used, payment is made by directly debiting your Bank account. No need for signature, as PIN (Personal Identification Number) is being

used for security. MCB CASH CARD The wide spread acceptability and frequent use of MCB ATM Cards has prompted the Bank to add more value to the cards which cater to customers evolving cash needs enabling them to go ahead with ease and convenience. This reinforces MCB commitment to provide to its customers safe and secured mode of cash substitute.

MCB CASH CARD is useful means of cash for MCB customers and non customers alike: Travelers Businessmen

General Public

MCB CASH CARD DENOMINATIONS MCB Cash Cards are issued in the following preloaded denominations. MCB Classic Card (CL) Rs 5,000 (Rupees Five Thousand) MCB Silver Card (SL) Rs 10,000 (Rupees Ten Thousand) All the MCB CASH CARDS of different denominations have the same design, feature, size and are easy to place in the wallet.

MCB CASH CARD FEATURES MCB Cash Card Pin Code is confidential and is only known to the purchaser. It can be changed from the MCB ATM Machines.

MCB Cash Card if lost or stolen then the same will be immediately marked "HOT" on request of purchaser.

The amount remaining on the MCB Cash Card account will be refunded to the purchaser

Loss/ theft will only be entertained through the original purchaser. Loss / theft are to be reported to the issuing branch by the purchaser or MCB Cash Card / ATM Help Line Call Centre (111-000-777).

MCB CASH CARD ADVANTAGES MCB ATM Cash Card enables MCB customers / non customers to meet their day-to-day cash requirements and settlements of their commercial / personal cash requirements transactions. Secure MCB ATM Cash Card is the safest alternative to cash because the purchaser can be rest assured of its security. If the ATM Cash Card is lost it would be cancelled immediately and the purchaser would get the amount refunded easily subject to completion of refund formalities. Ease of use MCB ATM Cash Card is the best because unlike other modes of transfer of Funds / Remittances which are drawn on a particular branch and can only be en cashed at that branch. MCB ATM Cash Card holder can draw cash from any of MCB ATMs all over the country, M-Net Members ATMs and Cirrus Member ATMs globally. MCB CASH

CARD is disposable and with a prescribed determined value. When the value of MCB CASH CARD is utilized fully and the balance amount is NIL the cards will be discarded.

Sale procedure Sale procedure of MCB CASH CARD is also very simple, any one who is customer of MCB or a non customer of the Bank may purchase the MCB CASH CARD through any of our Authorized Online Branches with ease and completion of minimum formalities. The purchaser is required to fill an application Form CC-10 and hand over the same at the counter of any authorized online branch of his choice and the rest will be done by the friendly staff of the bank. OTHER PRODUCTS MCB PYARA GHAR

MCB offers three home financing options for Pyara Ghar. MCB Pyara Ghar provides flexible and competitive home financing facility with options of home purchase, construction and renovation. With the MCB Pyara Ghar Scheme customers can obtain the financing to purchase a house/apartment, construct own house or renovate existing house immediately. Nothing could be more convenient than owning a house and paying easy installments that takes a step closer to becoming the owner of their house. It is better than paying a monthly house rent which takes no where other than increasing your expenses. Pyara Ghar is definitely the most feasible and direct route to a dream house.

MCB gives its customers their dream home at the best possible mark-up rates. They can choose either one of their two mark-up rate options- fixed or variable. They also have an option to club spouses income to avail higher financing amount. Early repayment option is tailor-made to allow making partial prepayments at dates that suit Pyara Ghar Clients. MCB PYARA GHAR BENEFITS Option to Purchase, Renovate or Construct. Competitive financing rates. Financing tenure from 2-20 years. Financing up to Rs. 20 Million. BTF-hassle free process to transfer your facility from another institution. Pre-approved for Auto Finance. Home Home Purchase Financing Home Renovation Construction Rs. 500k to Rs. 20 Rs. 500k to Rs. 7m Rs. 500k to Rs. 10mRs. 500k to Rs. 15m Amount m Loan to Value75:25 for65:35 for65:35 for all for80:20 Ratio businessmen with 3businessmen with 3businessmen with 3segments years business proofyears business proofyears business proof BTF

80:20

for70:30

for70:30

for

businessmen with 5businessmen with 5businessmen with 5

years business proofyears business proofyears business proof

80:20 for salaried70:30 for salaried70:30 for salaried employees Tenure 3 - 20 years individuals 2 - 20 years employees 3 - 20 years 3 - 20 years

MCB PYARA GHAR ELIGIBILITY Pakistani national residing in an approved city. Not less than 21 years or more than 65 years (at the time of finance maturity). Salary / income is at least Rs. 18,000 per month with monthly installment not exceeding 50% of the take-home salary/income. Association with business / profession for at least 3 years. Salaried Individuals.

MCB PYARA GHAR FACILITIES INSURANCE MCB Pyara Ghar provides its customers the mandatory property insurance (for the amount of loan). The life insurance is optional; however MCB encourages its customers to go for it as it secures the loan repayment, hence securing their family.

BALANCE TRANSFER FACILITY In case customers have a home loan outstanding with another bank for at least one year, they can have it transferred to MCB through a hassle-free process on much better terms. Preferred Rate Break in Processing Fee

PROCESSING Customers are advised to carefully read and fill out the MCB Pyara Ghar application and the Letter of Understanding (LOU), which will be provided at their doorstep by MCB sales staff. Submit it along with the related documents. On the approval of application, customers will get a Sanction letter. In case of Home Purchase the property will be transferred through relevant Housing Authority / Registrar office / Society in your presence along with Banks authorized officer, lawyer and seller of the property. Whereas for others, MCB will disburse the sanctioned amount in your presence and banks authorized officer. EXCELLENCE Convenient access through more than 1000 MCB branches. Relationship with MCB, a bank with over 50 years of quality service. Financing up to Rs. 20 Million (depending upon your income and appraised value of your property). Independent Service Quality Representatives to assist customers.

PRICE "The amount of money that customers pay for the product" Price should be commensurate with the offers perceived value. If it is not, customers will turn to competitor's product. Prices offered by MCB Bank Limited are according to the high quality services they render to their customers. About the markup charges its vary banks to banks but not very much difference according to my analysis. MCB bank has different tenure to different products so and also the different rates to charge. They believe in the higher the amount the higher the profit. PLACE "Place includes the various activities the company undertakes to make the product accessible and available to the customer". They also have a banking network of more than 950 branches. If you want financial advice, walk into any of their branches. Head office and Main office is on the in Karachi, which is the center of business activity. Locations of MCB Bank depend on the locality around and how much business it supports. The services provided to customers too depend on the location of the branch and its total deposits. About the future development union bank is looking forward to open its more branches in the various cities of Pakistan. This will create more flexibility and also give the diversification to the bank.

PROMOTION "Promotion includes all activities that an organization undertakes to communicate and promote the products to customers. Promotion programs consist of advertising, sales promotion and public relations." At MCB Bank it is appreciated if staff member introduces new customers but usually it is based on personal relations. Advertising is done in form of Neon signs and signboards. They publish their brochures and pamphlets so that the information is communicated to a large number of people. They distribute calendars, diaries and key chains to their officers and customers. No doubt MCB bank is doing promotion activities very strongly. The marketing department knows the competitive environment very well. And the department is working very well in this context. Promotion managers are using every media to

advertise their products as others banks are doing.

1.10 NATURE OF ACCOUNTS

1.10.1 DEPOSIT ACCOUNTS MCB offers two major categories of accounts. Local currency accounts and Foreign currency accounts.

Among the local currency accounts MCB offers Khushali Bachat account, Pak Rupee Saving account, Pak Rupee Current Account, Pak Rupee Term Deposit, Special Pak Rupee Term Deposit, Saving 365, Saving 365 Gold, and Basic Banking Accounts. And among the foreign currency account MCB offers Foreign Currency Saving Account, Foreign Currency Current Account. 1.10.2 KHUSHALI BACHAT ACCOUNT Khushali Bachat Account is one of the most popular deposit accounts offered by MCB. Its a special type of account which provides the account holder additional facilities for payment of utility and HBFC. Low average balance requirement. Profit is paid on your account on a half yearly basis. Cash deposit and withdrawal facility at hundreds of MCB branches across Pakistan (conditions apply). Withdraw cash through Pakistans largest ATM network.

Make cash free transactions, at thousands of merchant outlets through MCB Smart Card (local & international).

Customers can stay in touch with their account through MCBs Virtual Banking Service.

They can use their account to pay bills 24 hours a day, 7 days a week through Virtual Banking. They can get instant updates about their account through MCBs sms

banking. 1.10.3 PAK RUPEE SAVING ACCOUNT Low average balance requirement Enjoy unlimited free of cost transaction facility. Profit is paid on account on a half yearly basis Cash deposit and withdrawal facility at hundreds of MCB branches across Pakistan (conditions apply) Withdraw cash through Pakistans largest ATM network. Make cash free transactions, at thousands of merchant outlets through MCB Smart Card (local & international) Stay in touch with MCBs Virtual Banking Service. Customers can use their accounts to pay their bills 24 hours a day, 7 days a week through Virtual Banking

Customers can get instant updates about their account through MCBs sms

banking. 1.10.4 PAK RUPEE CURRNT ACCOUNT Low average balance requirement. No Zakat or withholding tax deductions. Enjoy unlimited free of cost transaction facility. Cash deposit and withdrawal facility at hundreds of MCB branches across Pakistan (conditions apply). Withdraw cash through Pakistans largest ATM network. Make cash free transactions, at thousands of merchant outlets through MCB Smart Card (local & international). Stay in touch through MCBs Virtual Banking Service. Customers can use their account to pay bills 24 hours a day, 7 days a week through Virtual Banking. Customers can get instant updates about their account through MCBs sms

banking. 1.10.5 PAK RUPEE TERM DEPOSIT ACCOUNT Avail choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. Low investment threshold.

Half yearly profit payment. Avail a credit facility up to 75% of the total deposit value.

1.10.6 SPECIAL PAK RUPEE TERM DEPOSIT ACCOUNT MCBs Special Rupee Term deposits offer a very attractive long term investment option with ease and convenience. Highly attractive profit rates. Tenors available are 3 months, 6 months, 1, 3 and 5 years. Profit on 3 and 6 months deposit is payable at maturity of deposit. Profit on 1, 3 and 5 years deposit is payable quarterly. Profit can withdraw your profit amount through MCBs wide network of ATMs. Avail a credit facility up to 75% of the total deposit value.

1.10.7 SAVING 365 The MCB Saving Account offers facilities of Current Account. The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals. Open a Saving 365 Account with a minimum initial deposit of Rs. 300,000. Low average balance requirement. Enjoy unlimited free of cost transaction facility.

Profit is paid on account on a half yearly basis. Cash deposit and withdrawal facility at hundreds of MCB branches across Pakistan (conditions apply).

Withdraw cash through Pakistans largest ATM network. Make cash free transactions, at thousands of merchant outlets through your MCB Smart Card (local & international). Stay in touch through MCBs Virtual Banking service. Customers can use their account to pay their bills 24 hours a day, 7 days a week through Virtual Banking. Customers can get instant updates about their account through MCBs sms banking. Customers can avail a credit facility up to 75% of the total deposit value

1.10.8 SAVING 365 GOLD As balance grows, so does the rate of return on Savings 365 Gold account. Open a Saving 365 Gold Account with a minimum initial deposit of Rs. 10 Million. Offers a tiered profit rate structure. Enjoy unlimited free of cost transaction facility. Profit is paid on account on a half yearly basis.

Cash deposit and withdrawal facility at hundreds of MCB branches across Pakistan (conditions apply).

Withdraw cash through Pakistans largest ATM network. Make cash free transactions, thousands of merchant outlets through MCB Smart Card (local & international).

Stay in touch with MCBs Virtual banking service. Customers can use their account to pay bills 24 hours a day, 7 days a week through Virtual Banking.

Customers can get instant updates about their account through MCBs sms banking.

Customers can avail a credit facility up to 75% of the total deposit value.

1.10.9 BASIC BANKING ACCOUNT In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30, issued on November 29, 2005, the Basic Banking Account has been launched with effect from February 27, 2006. This product has been introduced to facilitate the low income group as well as the existing account holders who wish to convert their regular savings or current account into Basic Banking Account. The Basic Banking Account is a current account and can be opened with a minimum initial deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit transactions (either cash or through clearing) and 2 withdrawals (cash or clearing) each month. All

customer-initiated transactions over and above this limit will be charged a transaction fee. However unlimited free of charge cash withdrawals are allowed through MCB's own ATMs. There will be no minimum balance maintenance requirement, and hence no monthly account maintenance charges will apply. In cases where balance in BBA remains zero for a continuous 6 month period, the account will be closed automatically, without any notice to the account holder. 1.10.10 FOREIGN CURRENCY SAVING ACCOUNT MCBs Foreign Currency Savings Account offers attractive returns on Foreign Currency investment. Open a foreign currency Savings account in any of the four currencies i.e. US Dollar, UK Pound Sterling, and Euro. Unlimited transaction facility. Low balance requirement. Profit credited to customers account on a half yearly basis. Customers can avail a credit facility up to 75% of the total deposit value. A foreign currency account can be opened at any of MCBs foreign exchange dealing branches.

1.10.11 FOREIGN CURRENCY CURRENT ACCOUNT MCBs Foreign Currency Current Account offers its customers the convenience of unlimited withdrawals i.e. access to their funds whenever they want without any notice. There is no limit on the number of transactions they can make in a day. Open a foreign currency Current account in any of the four currencies i.e. US Dollar, UK Pound Sterling, and Euro. Unlimited transaction facility. Low balance requirement. Customers can avail a credit facility up to 75% of the total deposit value. A foreign currency account can be opened at any of MCBs foreign exchange dealing branches. INSTANT FINANCING Customers can get a loan in an instant at any MCB branch. MCB is offering same day financing facility against liquid collateral at competitive pricing to its customers. MCB REMIT EXPRESS MCB sends money fastest to Pakistan, anywhere in Pakistan. International remittances with a two-way messaging facility delivered at customers doorstep within 24 to 72 hours. Fast, secure and easy-to-use, MCB's Remittance Services is an efficient way to transfer money overseas. Customers can remit funds from any country to Pakistan through Swift

System. Customers are required to provide the following Swift Code to their bank in their country. The following details are to be included: Name and Account Number of Beneficiary Name of the Branch/ Name of the city (Where beneficiary is maintaining an account). Easiest and safest way to remit funds Remittance within 24 to 72 hours Personal delivery to the beneficiary Delivery confirmation to the remitter Message facilities for both parties The beneficiary will receive the amount even if he/she does not have an MCB account MCB CAR FINANCING

Car financing and leasing at competitive rates with flexible options. Car4u finances both semi-commercial and non-commercial vehicles for personal and business use.

FLEXIBLE Option for financing or leasing Financing tenures from 1 to 7 years. Options for new as well as used cars. Option for local as well as imported cars. Financing up to Rs.20 lacs. Option for early payment Option for Replacement Loan. Option for first year insurance financing.

AFFORDABLE Lower mark-up rates. Lower insurance rates Only up to 10% down payment. Equal monthly installments.

SPEED Fast and hassle free processing of application. Priority delivery on different vehicles.

SPECIAL BENEFITS Option to pay 1st installment after three months. Pay down payment after loan is approved.

AVAILABILITY Currently available in 16 major cities. Will soon be launched in Rahim Yar Khan, Sukkur, Mianwali, Abbottabad,

Mardan and many more cities. EXISTING CUSTOMERS MCB offers 1% discount to its existing customers for Personal Loan,

Pyara Ghar or Business Sarmaya. MCB RUPEE TRAVELLER CHEQUES

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 traveling and in all walks of life. MCB Rupee Traveler's Cheques- The safest way to Carry Cash the most widely accepted way to pay cash for

travel related purposes. RTC is a safe and secure way to make payments nationwide. 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. Easily available: Buy them from any of the designated branches in Pakistan. As good as cash: MCB RTCs are safe to carry and can be used without any inconvenience especially by Travelers. Easily en-cashed: At any designated MCB branch. Easily refunded: in case of loss or theft, you can get the full amount back. Exclusive security features: Due to special printing and safety precautions, Cheques cannot be duplicated. Denominations: Available in denominations of Rs 1000, Rs 5000, Rs 10,000 and gift Cheques of Rs 500. Valid until Used: Validity of Cheques indefinite. More than 900 MCB Authorized branches are selling and purchasing Cheques all over Pakistan. MCB Rupee Traveler's Cheques are also available at the counters of

Foreign Banks such as ABN Amro and HSBC and private bank i.e. Bank AlHabib. MCB RTC GIFT CHEQUES MCB Gift Cheques eliminates guesswork in trying to find out the perfect Gift for any occasion birthdays, wedding, graduation and religious festivals.

Gift Cheques 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 Centre round the clock. MCB EASY PRSONAL LOAN Personal loans for salaried individuals of reputed local and foreign companies at rates tailored to customer's repayment capacity. FEATURES OFFERED MCB will lend any amount, from Rs 30,000 to Rs 490,000, depending upon net monthly income. Customers can choose tenure of 1 to 3 years for the repayment of the loan.

FACILITIES AVAILABLE Bank to Bank balance transfer. Credit Card balance transfer. Loan Protector Shield- insurance coverage of balance loan amount in case of death or permanent and total disability. Availability of early repayment option.

REPAYMENT ARRANGEMENTS Repayment of principal and mark-up is monthly and can be repaid using either one of the following modes:

Direct Salary Transfers. Payroll Deduction. Post-dated Cheques.

ELIGIBILITY Minimum net monthly income Rs 10,000. 25 to 55 years of age. Pakistani national. Permanent resident of Karachi. At least 2 years of employment with current employer. Initially offered to employees of selected institutional MCB customers in Karachi.

PROCESSING FEE Processing fee of 1% of the principal loan amount to be charged at the time of loan disbursement. MCB CORPORATE FINACING Providing access to diversified financing options including working capital loans, term loans, trade finance services and investment banking. WORKING CAPITAL LOANS Based on the customers specific needs, the Corporate Bank offers a number of different working capital financing facilities including Running Finance, Cash Finance, Export

Refinance, Pre-shipment and Post- shipment etc. Tailor- made solutions are developed keeping in view the unique requirements of their customers business. TERM LOANS 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. 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.

INVESTMENT BANKING MCB 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 Mergers and Acquisitions Privatization Corporate Advisory

CASH MANAGEMENT SERVICES MCB network of over 900 branches in Pakistan enables them to collect and disburse payments efficiently with their cash management services. This also enables them to offer its customers a choice of paper based or electronic fund transfer solutions including collection amounts, cross branch on- line transactions etc. MCB VIRTUAL BANKING MCB, the leader in banking technology, now provides the convenience of banking on the internet. Customers can now access their account anytime and anywhere MCB Virtual

Internet Banking offers its customers the convenience to manage and control their banking and finances when they want to, where they want to. It is convenient, simple, secure and totally free of cost. MCB Virtual Internet Banking offers its customers the convenience to manage and control their banking and finances when they want to, where thy want to. MCBs Virtual Internet Banking facility is simple and secure and its free of cost. With MCB Virtual Internet Banking customers can access any of the banking services, 24 hours a day, 7 days a week and throughout the year. MCB VIRTUAL BANKING SERVICES MCB Virtual Internet Banking offers a wide range of online services which makes their 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 customers 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. Cheques 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

MCB LOCKERS MCB lockers provide the best protection for customers valuables. Lockers of different capacities are available nationwide. MCB BUSINESS SARMAYA MCB Business Sarmaya is the best Running Finance facility against residential property which empowers to manage business dealings better. So customers can get MCB Business Sarmaya and thus improve their business, avail lucrative opportunities and expand their business, with absolute satisfaction of cash flows.

FLEXIBLE Running finance facility to use when and for whatever they want. Financing up to Rs. 20 million. Renewed every year Customers can pay back when they want No fixed monthly payment

AFFORDABLE Lower mark up and that too only on utilized amount. HIGH LOAN AMOUNT Loans up to 70% of the value of house / flat.

SPEED EASE Doorstep service and assistance from dedicated sales staff to fill and submit application along with the documents. WIDE ACCESSIBILITY Customers can access their Business Sarmaya accounts through MCBs vast ATM and branch network anywhere in Pakistan. Fast and hassle free processing of application after completion of documents.

SPECIAL BENEFITS Hassle free process to transfer similar facility from any other bank at a special discount. AVAILABILITY Available in all major cities i.e. Karachi, Lahore, Faisalabad, Rawalpindi and Islamabad. EXISTING CUSTOMERS Customers can get discounts if they are already a customer of similar facility of any other bank. MCB MASTER CARD MasterCard International has expanded globally in more locations in the world than any other card. The card was introduced by Muslim Commercial Bank Limited in 1995 and now offers card members over 15 million outlets in 232 countries. Photo security- The first bank in Pakistan to introduce the enhanced feature of photograph on the card limiting fraud in case of card loss. Welcomed at over 3, 000 outlets in Pakistan. Provides up-to 45 days Free Credit. Joining and Annual Fees to suit its customers.

24 Hour Customer Services- Call 111-700-700 and customers can get information from their customer services representatives on new card application or have their queries resolved anytime of the day.

Cash Advance Facilities available in Pakistan and worldwide.

MCB EASY BILL PAY MCB provides its customers the facility to pay their utility bills anywhere, anytime through their three convenient options. MCB Easy Bill pay offers unmatched convenience to pay utility and mobile phone bills or re-charge their prepaid mobile phone accounts anywhere, anytime with security and peace of mind. MCB bank is the only bank that offers its customers three convenient options of making bill payments to PTCL, SSGC, Instaphone, Mobilink, Paktel, and Ufone. So, customers can save their precious time by avoiding long queues and pay bills through MCB Easy Bill Pay. MCB Smart card or MCB ATM Card Holder can easily pay their bills or re-charge their prepaid mobile phone account through the following convenient options of MCB Easy Bill Pay: MCB ATM MCB Call Centre MCB Virtual Banking

MCB ISLAMIC BANKING MCB is the place where they work as a team, having no barriers, no boundaries. At MCB, everything they do is rooted in their values and a true understanding of this diversified market. At the core of it lie not only achieving successful results, but the curiosity to delve into the consumers insights for a better and a simpler lifestyle. The bank possesses sufficient expertise, necessary infrastructure, information technology, and manpower to run Islamic Banking Operation. MCB understands the special needs of the customers desirous of availing local and international financing facilities for their business and trading under Islamic Modes. MCB now provides its customers with the reliable Islamic Financial Services and support they require to successfully achieve their business objectives. Keeping in view the said purpose bank has recently formed Islamic Banking Division and Islamic Banking Management Committee under the supervision of Mr. Muhammad Shoaib Qureshi, Senior Executive Vice President and Head of Banks Operations and Islamic Banking Group, who has an experience of more than 36 years covering all segments of banking.

DEPOSIT SCHEMES For customers who are looking for a deposit opportunity where they can purse their funds and reap halal returns on it, we offer the following products: AL - MAKHRAJ SAVING ACCOUNT The minimum deposit requirement for Al-Makhraj Saving Account is only Rs. 10,000 and profits can be earned 6-monthly. Other features associated with this product are as follows: Minimum Deposit: Rs. 10,000 Minimum Monthly Balance: Rs. 10,000 Islamic Tools used in designing the product: Mudaraba/ Musharaka Product to be availed by: Individuals & Joint Account Holders (Local and Foreign), Companies, Corporate, Trusts, etc Special Advantages: For Customer= Bi-Annual Profit Payment; Withdrawal Facility Shariah = Meets requirements for Shariah Compliance Additional Features: Personalized Cheques books Withdrawal Facility from ATM Online deposit/ withdrawal facility as per bank's policy Debit card

Utilities payment via ATM card Mobile Banking Call center facilities 6-monthly profit payment Free bank balance certificates (once in 6 months) Taking stop payment/ hold mail/ standing instructions Issuance of duplicate statement of account (as per Schedule of Charges) Personal financial consultancy services (regarding Shariah Compliant products) Choice of statement frequency (as per Schedule of Charges) Balance for Profit Calculation: Monthly Average Balance Frequency of Announcements: The first announcement shall be made at the end of December 2003) Profit Payment Options: 6-Monthly Weight ages: Initially single weight age for product; Later weight ages can be made according to tiers (Volume-wise) Communication Process: Announcement on notice boards, and website Banking Network: IBD's Branch only

IANAT ACCOUNT For customers who are looking for a chequing account that gives them the ease of doing unrestricted number of transactions, MCB offers Al-Makhraj Ianat Account. With a minimum of only Rs. 10,000, Ianat Account may be opened. With all the features and facilities that this product offers, it is highly recommended for management of business funds. Details of the product are as follows: Minimum Deposit: Rs. 10,000 Minimum Monthly Balance: Rs. 10,000 Product to be availed by: Individuals & Joint Account Holders (Local and Foreign), Companies, Corporate, Trusts, etc Additional Features: Personalized Cheque books Withdrawal Facility from ATM Online deposit/ withdrawal facility as per bank's policy Debit card; Utilities payment via ATM card Mobile Banking Call center facilities Free bank balance certificates (once in 6 months) Taking stop payment/ hold mail/ standing instructions

Issuance of duplicate statement of account (as per Schedule of Charges) Personal financial consultancy services (regarding Shariah Compliant products) Choice of statement frequency (as per Schedule of Charges) Banking Network: IBD's Branch only

AL-MAKHRAJ TERM DEPOSIT ACCOUNT 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 1, 3 & 6 months, 1, 2, 3 or 5 years. Profit payment options available to customers are monthly, quarterly and/ or at maturity. However, monthly profit payment and deposit product of 1 month are not available currently. Details of the product are as follows: Minimum Deposit: Rs. 25,000 Islamic Tools used in designing the product: Mudaraba/ Musharaka Tenors Available: 1 month, 3 month, 6 month, 1 yr, 2 yrs, 3 yrs & 5 yrs (1-month product to be made available later in a few months time) Product to be availed by: Individuals & Joint Account Holders (Local and Foreign), Companies, Corporate, Trusts, etc Special Advantages:

For Customers= Profit Payment Options customized to suit needs of customers; Minimum Deposit requirements lower than most banks so it is more accessible/ affordable for people Shariah= Meets requirements for Shariah Compliance Additional Features: Call center facilities Taking hold mail/ standing instructions for profit payments etc Personal financial consultancy services (regarding Shariah Compliant products) Frequency of Announcements: The first announcement shall be made at the end of the month of December 2003. Profit Payment Options: Monthly/ Quarterly/ At Maturity (Monthly payment option to be made available later in a few months time) Weightages: Different weightages based on tenors and profit payment options Communication Process: Announcement every month on notice boards, and website Banking Network: IBD's Branch only

FUNDS BASED FACILITIES

MCB Islamic Banking provides funds based facilities for Ijarah Products, Equipment Ijarah, Car Ijarah, and Murabahah.

ISLAMIC BANKING DIVISION Islamic Banking Division has been formed with effect from 1st January 2003, which in a short span of time, has developed Islamic Banking Products, prepared Operational Manual, arranged local & international training for its own executives as well as at all management level ISLAMIC BANKING MANAGEMENT COMMITTEE Recently 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. MCB SERVICES FIELD OF ACTIVITIES Commercial banks are the most effective mobilizer of savings and have bee providing short term requirements of working capital to trade, commerce & industry .The commercial banks are authorized to engage in forms of business. The banks play a very important role in economy of a country. Businesses depend upon banks for carrying out various activities relating to finances, obtaining agency services etc .Banks provide facilities to individuals too. The manifold services of the bank can be divided into major head as the purpose of banks is to provide some services to the general

public. And for this purpose different banks provide different services to the people in different forms. The Muslim Commercial Bank (MCB) is a commercial bank, in modern time commercial banks play a very important role and their functions are manifold. The main functions and services which Muslim Commercial Bank Limited provides to different peoples are as follows. Open Different accounts for different peoples Accepting various types of deposits Accepting various types of deposits Granting loans & advances Undertaking of agency services and also general utility functions, few of those are as under: Collecting Cheques and bill of exchange for the customers. Collecting interest due, dividend, pensions and other sum due to customers. Transfer of money from place to place. Acting an executor, trustee or attorney for the customers. Providing safe custody and facilities to keep jewelry, documents or securities. Issuing of travelers Cheques and letters of credit to give credit facilities to travel. Accepting bills of exchange on behalf of customers. Purchasing shares for the customers. Undertaking foreign exchange business.

Furnishing trade information and tendering advice to customers.

For proper functioning of branches and the over all bank has been divided in different departments. These departments handle different jobs so that division of work is there for improvement of functions and also it is easy to control the situation.

1.11 SWOT AND PEST ANALYSIS 1.11.1 STRENGTH MCB is the first Pakistani privatized bank and because of its quality management, marketing, innovation in products and services. Owing to all such factors they have established a good reputation in the banking market. The name of MCB makes you recall the highly cooperative and professional individuals ready to serve you with maximum zeal and zest. MCB have faster banking services that are making it more prominent in the banking industry especially in operations and Foreign exchange. The customer prefers this bank not only because of its faster speedy service rather due to reasonable service charges. MCB in Pakistan is the also in the list of highly automated banks like Emirates because of its modern style of banking through fully computerized control and twenty four hour banking. The joining of experienced people, advanced management, advance setup and facilities gave MCB an edge over its competitors. Services offering are all Unique and different to others. Have the advantage of being the first mover in customer services. MCB Bank able to give really good customer care, because they know that customers are the source of funds for them and also there is a great competition among the banks in Pakistan. Very well and good atmosphere in bank. Attractive deposits and financing schemes offer by MCB bank with suit able interest rate.

MCB bank is currently in a good financial position Great check on operations and working of business through the Mystery shoppers. MCB Bank is always there, with absolute convenience and cutting edge technology, to provide service beyond horizons.

Online banking is the key feature. Key benefits of MCB Bank Online system is its simplicity, convenient banking solutions over phone, instant access to banking services from anywhere at anytime, and saves time and money.

Use of SYMBOLS; banking software which produces greater customer satisfaction by providing better services.

MCB bank has an edge over other banks with regard to its timings which are from 9am 5pm throughout the week and even on Saturdays.

Islamic banking is especially popular among religious people and is opted by Muslims from all around the globe.

Various types of personal loans are offered to general public for e.g. Car4u, Pyara Ghar etc.

MCB Banks virtual Banking provides greater convenience to customers as they can handle their transactions from anywhere at anytime.

Diversification of their portfolio. Greater network with more than 900 branches all around Pakistan. Better control on losses. Distinctive customer service provided to customers.

1.11.2 WEAKNESSES The majority of people are not well aware about the products of MCB. Therefore it should advertise extensively especially RTC and Master Cards. A behavior has been noted that bank tries to feel at ease with good looking, rich and educated people and the poor looking customers feel some bit strange in the environment of the bank. The bank employees should try to accommodate behaviorally all type of customers. In MCB there is lack of specialized skill because of job rotation policy of human resource department. The bank should concentrate upon increasing its abilities on individual service basis. Mismanagement of time is another big mistake in MCB branches, the bank official time of closing is 5:30pm but due mismanagent of time allocation and work the staff is normally on their seats till 7:00 or 8:00 clock. Difficulty in managing the extended network of branches. MCB Bank has various types of Debit card but it does not provide its customers the facility of Credit Card. Need to focus more Human Resource issues. Shortage of staff, which causes extra burden on existing staff leading to fatigue and boredom. Inexperienced hiring process which results in placement of the wrong person at the wrong seat.

1.11.3 OPPORTUNITIES As on December 31, 1998, sixty-eight scheduled banks with 9,106 branches are operating in Pakistan. As on this date, total population of Pakistan is 140.03 million. Total number of personal accounts with all scheduled banks as on December 31,1997, are 28.98 million. If we consider the population statistics of working age group as on December 31,1997, it stands to the figure of 96.64 million. Thus we can say those 28% of working age people of Pakistan are having accounts with banks while 72% are unbanked. The need of privatization has made people to switch to banks to satisfy their needs of lending and borrowing. This not only increases the deposits but also the credit business. Changes in social patterns, population, and lifestyle changes and in economical. Mean people now thinking to deposit their money in such a sound bank. Good financial position creating a good reputation for future advances and huge deposits. The MCB bank is entering in a growing industry and also going to further expand its branches all over Pakistan as well as internationally. Such products or services which can give MCB Bank a monopolistic position.

1.11.4 THREATS Change in government policies has affected the banking business. Still banks have to wait to get permission of state bank. The freezing of foreign currency accounts is a vital example of letting people not to trust on banks.

The Competition has become severe by the entrants of so many banks, So to exist one will have to prove himself in its services through excellent management and will have to satisfy its shareholders. Otherwise he will be out the market. The decrease purchasing power of consumer in the current economic situation of the country affecting the business activity speed too much and the result is the low investment from the investors in new projects can create problem for the bank because it is working a lot in trade. Large and increasing competition. Threat of new entrants is always there. Threat of new entrants leads to the tough competition. Hundi system is still operating in Pakistan in growing rate, which is a great threat of the Remittance department of the union bank limited 1.12 PEST ANALYSIS AND ENVIRONMENTAL SCAN A broad view of market is important when management is interested in introducing better services for customers. Rapid technological change, global competition and the diversity of buyers preferences in many markets require the constant attention of the market vouchers to identify promises business opportunities, see the shifting requirements of the buyers, evaluate changes in competitors positioning and guide the choice of which buyers to target and classify them according to respective segments. Identification of external and macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles. These influences include: Political and legal environment

Economic trends Socio cultural environment Technological factors

1.12.1 POLITICAL AND LEGAL ENVIRONMENT: Banks are strongly affected by the political and legal considerations. This environment is composed of regulatory agencies and government law that influence and limit various organizations and individuals. opportunities for business. Business legislation has following main purposes To protect banking companies from unfair competition. To protect consumers from unfair business practices adopted by banking companies To protect the interest of the society from unbridled business behavior. Mostly these laws create new

1.12.2 ECONOMIC TRENDS A banking market requires better consumer market in volume along with higher

borrowing power. The available borrowing power depends on: Consumer income Saving rates Consumption patrons Rates of interest Budget deficit Exchange rates

Cost of living Inflation

1.12.3 SOCIO-CULTURAL ENVIRONMENT A society is shaped by beliefs, norms and values. People in a society consciously and unconsciously interact with: Themselves Others Organization Society

1.12.4 TECHNOLOGICAL FACTORS Forces of technological advancement have played the most dramatic role in shaping the lives of people. The rate of change of technology has greatly affected the rate of growth of economy. New technology is creating deep rooted affects which could be observed in long run. The improved techniques involved in on line bsanking. In brief PEST analysis affects the overall banking companies and provides us the information about the external macro condition.

CHAPTER NO. 2

2.1 Activities

Performed By Me

sharaqpur branch
During my internship I worked in sharaqpur sharif branch for eight weeks This branch has following departments where I worked: 1 2 3 Account Opening Department Clearing Department Remittance Department

ACCOUNT OPENING PROCEDURE

I worked in this department.
Several customers came to open an a/c. and submitted an application for opening an a/c. I gave them an application form. This application form is useful for all accounts opening e.g. PLS CD etc. I gave them the following informations which were required for account opening. i. ii. iii. iv. v. vi. Individual Account Joint Account Proprietorship Limited Company Partnership/Firms Club, Society, Association of Persons Trust After that I collected the necessary information, which a bank requires;

DOCUMENTS TO BE ATTACHED

It was my duty to check the following documents with account opening form, because now all the banks have been centralized so each and every form should be completed and verified before dispatching the forms to the head office for opening of the account: 1. 2. 3. 4. Photo Copy of CNIC Valid original CNIC card is must at that time Vareysays from NADRA Certified true copy of the certificate of incorporation or registration (in

case of companies and registered bodied only). 5. Certified True Copy of the Certificate of Commencement of Business

(in case of public limited companies only). 6. Certified True Copy of the Memorandum and Articles of Association

(in case of limited companies). 7. Certified True Copy of Rules and Regulations or By-Laws (in case of

limited companies). 8. Certified True Copy of the Resolution of the Board of

Director/Managing Committee/Governing Body regarding conduct of the account. 9. List containing names and signatures of the Director/Office Bearer

duly certified by Registration Authority. 10. Letter of partnership or Certified Copy of Partnership dead (in case of

partnership). 11. 12. CNIC) Trust deed and Board Resolutions, for Trust accounts. Three photos( in case of shaky signatures Or thumb impression on

13. 14.

KYC form for income proof Application for opening of account (in case of housewife, students) on

the behalf of husband or guardian. 15. salary slip (in case of salaried person)

SPECIMEN SIGNATURE CARD When an account was opened with account opening form I need to give a specimen signature card to the customer after that I checked that the following information is provided by the customer or not. a. b. c. d. e. f. g. h. Branch Code Date Account No. Title of A/c Special Instructions Names Signatures Approved By

The customer used to fill this card and return it to me. For illiterate persons a thumb impression was taken and two latest passport photographs were taken. I scanned signature card in the computer system. CHEQUE BOOK ISSUING During chequebooks issuance my duties were following.

A chequebook were contains a number of cheques, which enables the customer to make withdrawal from his account or make payment by issue of cheque. After account opening a chequebook requisition, which was infact, a request to acquire a chequebook. This requisition form was given just for first time getting new a/c holders. When the a/c holder was old then a

chequebook or for

chequebook slip was already in his chequebook before 10 leaves of the chequebook. So when the account holders reached to this slip after issuing the first cheques .they filled that slips and presented to me. When the new or old customer presents the requisition form or cheque slip I filled the bank chequebook slip. In this cheque book I filled the; a. b. c. d. e. Date S.No. No. Of the leaves A/c # Title of the A/c (in block letters) After this I sent these cheque book requisition slip to NIFT for printing. Credit Voucher I filled many deposit slips for the customers. These deposit slips were known as credit voucher. Debit Voucher I have also made the debit voucher to debit the customer account.

The amount of debit voucher depends upon the no. of the leaves of chequebook. For one leaf bank charges 5 rupees. For PLS and current account chequebook can be of 25, 50, 100 leaves. After 4 days NIFT returns the printed cheque books then my responsibilities are that: Write the title of account on title page Write the account number on title page Put the date stamps on title page Write the serial no. on customer requisition slip

PRESENTATION OF CHEQUE During working at this department I had to stamp, the cheques, which came for cash withdraw these stamps, are following. Signature verify Cheque posted Paid cash

Letter of Thanks To Customer When a new customer need to open his account in the bank, my duty was to write a letter of thanks for account opening and posted it to the Customer.

CLEARING DEPARTMENT
I worked in this department
As implied from the name that this department is for clearing the cheque, which are drawn on the bank or drawn on another bank.

Types of Clearing There are two types of clearing: I. Inward Clearing Outward Clearing Inward Clearing

Inward clearing means the cheques, which were to be honore by the bank but which were receive through other banks representatives. Those were the cheques, which MCB account holders gave to such account holders who have their accounts in others banks other than MCB. So those banks submitted their

cheques to NIFT. I received many cheques for inward clearing. It was my duty to check that these cheques are Clear Writing Signature of Account Holder Three Stamps

Amount in Words & Figures Date No Limitation Bank Name If any Cutting then customer Signature If I finds any fault, I returned that cheque attaching memorandum which

comprises of: Date Cheque # Amount Reason of Returning II. OUTWARD CLEARING Outward clearing means the collection of cheques on behalf of customers. Those cheques were those, which were drawn on others banks. Those

clearing can be local or out station. When customers bring such cheques, they filled the deposit slip. They keeped the counterfoil and the remaining part was stapled with the cheque. I stamped the crossing stamp. I also stamped the clearing stamp of next day and endorsement stamp. In those clearing, I received the cheques whole day and entered those cheques in outward clearing register. And those cheques were keep in bag locked with key and in evening NIFT representative was come and take that bag and returns.

REMITTANCE DEPARTMENT

I worked last two weeks in this department. That department was following remittances, which were issued by me. Demand draft Pay Order Mail Transfer Call deposit receipt (CDR)

DEMAND DRAFT
I filled many demand draft forms. Following stamps I used. Crossing Stamp This stamp shows that this D.D. is of this bank. Validity Stamp This stamp shows that this issued D.D. is useful for 6 months.

PAY ORDER
I filled many pay order forms and issued many pay orders. Mail Transfer I learnt about mail transfer how to make it. CDR (Call Deposit Receipt) I filled many CDR forms and issued many CDR

Chapter no 3
3.1 SUMMARY
This internship report is about the MCB bank ltd. In this report I described the introduction history and the department description and mission and vision statement of the Bank. In this branch I have gone through various procedures and practical methods that actually takes place is the banks. I tried my level best to understand all the necessary pros and cons of the following departments. I have also performed all these procedures by card with fill devotion. I have also given recommendations for the bank and for the internees that will go for internship the future. In the end is would like to say that over all it was a very pleasant and learning full experience. May regards to staff and the teachers.

3.3 RECOMMENDATIONS FOR DEPARTMENT OF BUSINESS EDUCATION

The department should include one extra portion in internship activities, the student should write the self-assessment after internship even he is able to the new market new scenario fit unfit. The department should arrange the visits for the purpose of getting knowledge. English is the key to success in modern world. Generally, the English language of MBE students is weak. Therefore, a language culture should be promoted, so that students may be able to face future challenges.

The department should arrange the English language course. Computer lab with internet facility should be provided to the MBE students There should be a proper check on the students who are doing internship so the students should also be careful and complete their internship properly

Department should develop relationship with important industries. In this way, students should be able to get gob.

3.4 RECOMMENDATION FOR NEXT INTERNEE

MCB bank is well known organization. I suggest that next internee should go this organization. The atmosphere is very good. All employees work mutual coordination. They are very cooperative. They focus on internee activities during their routine work. I suggest that internee should work in all the departments of the MCB bank. Following are suggestion for next internee: He should prepare his initially skills like communication & computer skills. He must derive public relation in the organization. Prepare your mind for working in professional environment. Not only read or observe the working of organization try to do practically. While working tries to get knowledge about every department of organization. Perform work in a best way and handle working problems with great courage and confidence. Always follow the rules & regulations and this habit will facilities you in your future.

3.5 CONCLUSION
At present, there is no such organization in the world that is free from problem and challenges. Every concern has to strive and struggle a lot to be more profitable and to get edge that is more competitive. The management of MCB bank is taking strategic steps to enable the bank to emerge as a strong and progressive institution. It is continuing to make efforts to refine its products and operations to make them more compatible. New deposit schemes have been introduced and an action plan to maintain revenue growth in future. As the business and economic conditions remain uncertain, MCB bank continues to develop the new products as it has been doing in past.