Special Assignment

BCRW Submitted To:

Ms Nasreen Saeed

Submitted By:
Umair Ali Khan

ID:
091415 MBA(eve)

Institute Of Management Sciences

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Report On MCB Bank Ltd

Table of Content

Executive Summary ...................................................................................................................... 04 History........................................................................................................................................... 05 objectives ...................................................................................................................................... 06 organization structure..07 Products & Services ...................................................................................................................... 08 Global Connectivity...11

Functions of MCB....14 ATM Network..21 Training & development..23

Findings.25 SWOT analysis26 Recommendations28 Conclusion..29 Refrences30

Executive Summary

The purpose of this report is to provide information of countrys renowned organization MCB BANK LIMITED. This report will be useful in motivating the people toward towards attaining their goals. This report represents that how MCB manage their business effectively and be the No 1 bank in country. MCB Bank Ltd is one of the leading banks in Pakistan. MCB Bank has a solid foundation of over 50 years in Pakistan, with a network of 1007 branches out of which 1000 are domestic and 7 are oversees , MCB Bank has 600 Online

Branches, 260 MCB ATMs in 35 cities nationwide and a network of over 12 banks on the MNET ATM Switch. There are round about 9,011 permanent employees working with MCB Bank Ltd and 4,350,245 accounts are opened. Its Imports and Exports are 135,542 and 60,725 respectively.

MUSLIM COMMERCIAL BANK LTD (HISTORICAL SCENARIO)

Before separation of indo PAK, the need for more Muslim banks was felt. And Muslim having strong financial capacity was 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

Golden History of Muslim Commercial Bank:

This bank was incorporated under companies act 1913 on July, 1947 (just before partition) at Calcutta. But due to changing scenario of the region, the certificate of incorporated was issued on 17th August, 1948 with a delay of almost 1 year, the established at Dacca and Mr. G.M. 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 23 rd, 1956 through a special resolution, now recently the head office of MCB has been transferred to Islamabad in July, 1999 and now Head office is termed as principle Office. This institute was nationalized with other on January 1st, 1974. At that time it had 506 branches and deposits amounting to Rs. 1640 million. Although MCB has reputation of a conservative bank but nationalization also left its effects on this institute as will and by end of year 1991 in which it was privatized the total number5 of branches were 1.287 and deposits amounting to as high as Rs. 35029 million.

OBJECTIVES:
MCB 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 197 MCB ATMs in 35 cities nationwide and a network of over 17 banks on the MNET ATM Switch.

It is therefore not surprising that Euro money, Europe's leading Banking, Financial and Corporate magazine granted MCB the "Best Bank in Pakistan" in 2003, 2001, and in 2000 the

"Best Domestic Bank in Pakistan" awards. In addition, MCB also has a distinction of winning the Asia Money 2004 award 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 service.

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 multi national 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 30 cities with over 197 ATM locations. The Banks Rupee Travelers Cheques have been market leaders for the past six years and have recently launched their Gift Cheques Scheme.

MCB looks with confidence at year 2004 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".

Corporate Information:
Registered Office: MCB building, F-6/G-6, Jinnah Avenue, Islamabad

Principal Office: Adamjee house 2nd floor, Chundrigar road Karachi Registers and share Registration Office: THK Associates (pvt) Ltd. Shares department, ground floor sheikh sultan trust building no 2, Beaumont road Karachi

Organization Structure:
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; credit management div; commercial Banking div; corporate Banking div; Treasury management & FX for effective handling of branches, it has been categorized into three segments with different people handling each category. These categories: a) Corporate Banking b) Commercial Banking c) Consumer Banking

a) Corporate Banking:
These are branches which have an exposure of over Rs. 100 million. Usually includes multinational & public sector companies

b) 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 area come under this category

c) Consumer Banking:
These are the branches which gave exposure up to Rs. 20 million and these include all the branches which are neither corporate nor commercial branches.

Product / services:
MCBS CORPORATE PRODUCTS:
Working Capital Loans Term Loans Trade Finance Services Cash Management Investment Banking MCB 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. Within this area, 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

INTERNATIONAL PRODUCTS:
Speed Cash

 Home Remittance Money Gram and Global Money Drawing Arrangements

MCB ATM 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.

MCB CASH CARD is useful means of cash for: Travelers Businessmen General Public It enables them to meet their day-to-day cash requirements and settlements of their commercial / personal cash requirements and settlements. It is safest because the purchaser can rest assured of its security that the card if lost would be cancelled immediately and he would get the amount refunded easily subject to completion of refund documents. It is the best because unlike other modes of transfer of Funds / Remittances which are drawn on a particular branch and could be encashed only at that branch but the holder of MCB CASH CARD could draw cash from any of MCB ATMs all over the country, M-Net Members ATMs and Cirrus Member ATMs globally. MCB CASH Cards are issued in the following preloaded denominations. MCB Classic (CL) RS 5,000 (Rupee Five Thousand) MCB Silver (SL) RS 10,000 (Rupee Ten Thousand)

MCB CALL CENTRE:

Keeping up with banking services can be tedious. Not with Muslim Commercial Bank, where phone service is at your fingertips. Just dial our Call Centre from the comfort of your home or office or wherever you happen to be. It offers basic banking services for your convenience, eliminating the need for you to make unwanted trips to your branch. Banking Services: Balance Inquiry Foreign Exchange Rates Account Statement Cheque 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 Travelers Cheque (RTC) Services: RTC Verification Lost / Stolen Reporting Other Services: Product Information ATM Locator Branch Locator Tele-banking Services Management i.e. TPIN change, Block / Unblock service Customer Complaints It's so easy to register for MCB Call Centre. Just fill in all the necessary details in the form and return it to your on-line branch.

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 You will be issued a Tele-banking Services Number and a secured Tele-banking PIN. All calls to the MCB Call Centre are treated with confidentiality as registered accounts can only be accessed through your Tele-banking Services Number and your secured Tele-banking PIN. Highly trained English/Urdu speaking agents are available to attend to your enquiries in a friendly and professional manner. You can be assured of a quick response.

MCB ATMs CARD:

1. MCB Regular ATM Card 2. MCB ATM Gold Card

MCB Regular ATM Card: Daily Cycle Limit is up to RS 10,000. Three transactions allowed daily. To whom it is issued. Valued Customers Supplementary Cards can also be issued.

MCB ATM Gold Card: Daily Cycle limit up to Rs 25,000/ Six transaction allowed daily To Whom IT IS Issued. Valued Customers Long term relationship clients

GLOBAL CONNECTIVITY:
MCB is linked through MASTERCARD for the products CIRRUS/MAESTRO, which now have access to more than 601000 ATMs and above 205 million POS (Point of Sales) around the world. You can have Global Cash Access wherever you go. It means you can your MCB ATM Card where ever u see Cirrus/Maestro logo and all cards with this logo can be used on MCB ATM Machines and vice versa. Now with ATMs located on all continents as through MNET.

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ATM SHARING WITH IN PAKISTN:

MNET MNET enables all the member banks to share their electronic networks. This means customers of all member banks can use each other's ATMs. ATM machines of MNET member banks accept cards issued by Muslim Commercial Bank, Citibank, Standard Chartered, HSBC, Faysal Bank, Credit Agricole and American Express. MNET customers can use over 600,000 ATMs worldwide that carry the Cirrus logo and shop at over 5 million outlets that carry the Maestro logo.

Cash Department:
The following books are maintained in the Cash Department:

1) Receiving Cash Book 2) Paying Cash Book 3) Token Book 4) Scroll Book 5) Cash Balance Book

When cash is received in counter, it is entered in the Scroll Book and receiving Cashier Book. At the close of the day, these are balanced with each other.

When the cheque or any negotiable instrument is presented at counter for payment, it is entered in the token book and token is issued to the customer. The token clerk and the cashier make entries in the paying book and payment is made to payee. At the close of day, the Token Book and payment of cash is entered in the cash balance book and drawn closing balance of cash. Opening Balance + Receipts payments = closing Balance.

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This is very important department because cash is the most liquid asset and mostly frauds are made in this department, therefore, extra care id taken in this department and nobody is allowed to enter or leave the area freely. Mostly, cash area is grilled and its door is under supervision of the head of that department. All the books maintained in this department are checked by an officer.

sDeposit Department:
Bank deals in money and they are merely mobilizing funds within the economy. They borrow from one person and lend to another, the different between the rate of borrowing lending forms their spread or gross profit. Therefore we can rightly state that deposits are the blood of the bank which causes the body of an institution to get to work. These deposits are liability of bank so from point of view of bank we can refer to them as liabilities.

Total deposits of MCB are growing since its inauguration but after privatization there is sharp incline in over all deposits of bank. The increase in deposits is also a cause of increase on total number of accounts; bank of progressed in both aspects. Types of Deposits: Deposits can be segregated on two bases, one is duration in which there funds are expected to be with the bank and second is the cost of getting these funds. So divided deposits in two classes according to duration of deposits i.e.

1) Time deposits / liabilities 2) Demand deposits / liabilities Current a/c (CD): In this types of accounts of the client is allowed to deposits or withdraw money as and when he likes. He may, thus, deposits or withdraws money several times in a day if he likes. There is also no restriction of accounts to be deposits or withdrawn. However, there is requirement of maintenance of Rs. 1000/-. Usually this types pf account is opened by the businessmen. No profit is paid by the bank and no service charges are deducted by the bank on current deposits account. These types of deposits are also exempt from compulsory deduction of Zakat.

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PLS Savings Bank a/c (SA): These types of account are for those persons who want to make small savings. These types pf account is opened with a minimum deposit of Rs. 1000/-. Under this scheme deposits can be made only u0p to a costing amount and withdrawals are allowed twice a week or 8 times a month. If a big amount is required a seven days notice is required before the withdrawal. The profit is paid on these accounts on the minimum balance during a month for the whole of that month. Zakat & other withholding taxes are deducted as per rules of the government. Khushali Bachat a/c (SBA): This is an advance form of PLS saving a/c, in this typed of account. The minimum balance requirement for this type is Rs. 2500/-. There is also restriction on the number of withdrawal as well, i.e. up to 4 times in a calendar month. For maintaining this extra balance the customer gets the benefits of profit calculation on daily product basis and also free service of standing instructions of paying utility bills and HBFC installments. All other rules of saving account are applicable. PLS 365 Saving a/c: This is a special type of saving account in which customer maintains a minimum balance of Rs. 300,000- and in turn he gets the benefits of daily profit calculations and also there is no restriction on the maximum number of withdrawals as was there in the case of KBA. There is also another advantage of this scheme that if balance on a particular day falls below the minimum balance then only the product of that day is ignored whereas in KBA, if balance falls below the minimum limit then all the products for that month are ignored on in other words no profit is paid for that month.

Function of MCB:
This was a brief review of different types of deposit schemes. The deposit Department handles the account opening, profit payment and accounting of all types of deposit schemes.

Account Opening:

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Account opening is an agreement in which customer offers his funds and bank accepts these funds, therefore the nature of relation between a banker and customer is of a contractual one and all the conditions applicable to this contract act are also applicable. Procedure for Opening: Procedure for opening of account is as follows: A person, who wants to open any kind of account, has to fill in printed form which is provided by the bank, free of cost. Separate account opening forms are used for different types of account. Bank usually requires that new depositor must be introduced by some one. An introducer can be any person known to the bank but preferably it should be a customer of the bank. However, the manager can open the account by his own introduction. If the manager is satisfied, it will obtain the full signature of the customer on the form and specimen signature card, makes the first deposit, and issues the cheque book. The following are given to the customers:

Pay-in-slip is the proof of deposit. For every payment which is to be deposited in the bank, the pay-in-slip is to be filled up. The object of this book is to provide the customer which the banks acknowledgement for receipt of money to be credited this account. Cheque Book contains a number of cheques. It enables a customer to make withdrawal from this account or make payment of various parties by issue of cheque. Pass Book is a copy of the customers account as appears in the books of the bank. Balance is recorded in this book by the Clerk.

Clearing Department:
Every banker acts both as a paying as well as a collecting banker, it is however an important function of crossed cheques. A large part of this work is carried out through the bankers cleaning house. A clearing house is a place where representative of all banks of the city get together and settle the receipts and payment of cheques drawn on each other. As the collecting banker runs certain risks in receipts of their ownership the law has provided certain protections to the banks.

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The Negotiable Instrument Act, 1881, lays down that drawer or holder of a cheque or draft may cross the instrument generally or specially. It further lies down that a crossed cheque can only be paid to a banker, who collects it for a customer in good faith and without negligence. Types of Cheque Collected: Transfer Cheques: are those cheques, which are collected and paid by the same branch of bank. Transfer delivery cheques: are those cheques, which are collected and paid by two different branches of the same bank situated in the same city. Clearing cheques: are those cheques, which are drawn on the branches of some other bank of the same city or of the same area, which is covered by a particular clearing house. Collection cheques: are those cheques, which are drawn on the branches of either the same bank or of another bank, but those branches, are not in the same city or they are not the members of clearing house.

Functions of Clearing Department: 1. To accept Transfer, Transfer delivery, clearing and collection cheques from the customers of the branch and to arrange for their collection. 2. To arrange the payment of cheques drawn on the branch and given for collection to any other branch on MCB or any other members or sub member of the local clearing house. 3. To collect amount of cheques drawn on members, sub-member of local clearing house, sent for collection by MCB Branches, not represented at the local clearing house.

Common Procedure for all Cheques: i. Receiving and scrutinizing the cheques and other deposit instruments, and the pay-in-slip at the counter. ii. iii. iv. v. vi. Fixing the stamps. Scrutiny and receipt by authorized officer. Returning the counter file to the depositor. Certificate and confirmation by the officer charge of the department. Separating the cheque into transfer, transfer delivery, and clearing cheques.

Ledgers of Deposit Department:

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The following types of ledgers are concerned with deposit department: 1. Saving Ledgers 2. Current Ledgers 3. Profit & Loss Sharing Ledgers 4. Fix Deposit Register 5. S.N.TD. Register 6. Call deposit register 7. Cumulative deposit certificate register 8. Cash book 9. Daily profit and loss summary book 10. Officer spaceman signature book 11. Voucher register However, in computerized branches all these ledgers are no more there but only day books are maintained. The rest of the work is done on computers.

Advance Department:
Advances are the most important source of earning for the banks. MCB is also giving full attention towards this aspect and it is also obvious from the growing portfolio of advances and from very low delinquency rate. The credit portfolio of this institution is in a very much better shape than other financial institutions of Pakistan and the credit goes to the management and the staff who are concerned about the quality and quantity as well.

1) 2) 3)

Loans Cash Credits Overdraft

Loans:

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Loans are monetary assistance by a financial institution to a business, individual etc. The loans are granted by the bank in lump sum, so these types called fixed or demand loans. Interest is charged on the whole amount of a fixed loan. The borrower withdraws whole the amount of loan. This type of loan is normally granted against security of gold documents. In case of demand loans against gold or documents, a demand promissory note for the amount of loan is taken from the borrower loans are granted under; Loans Against Gold: Under this type of loan, which is granted to the borrower the Head Cashier estimates the value of Gold or Gold ornaments through an agent (Gold smith) and keeps a margin of 40 to 50. After the opening the Gold loans account a token is given to the borrower, which is a bank receipt. Loans Against Pledged of Stock: In case of advancing such types of loans, the following precautions are dept in the mind: i. ii. iii. Stock pledged must be readily saleable Products should be readily saleable Advance should be within the borrows means

Requirement for Loan: For granting loan to any party or individual, the bank checks following particulars of the client: 1) 2) Credibility Feasibility Report

By Credibility, bank Judges the Credibility of the client by his past bank record, CBI report etc. it is very important in making decisions about giving him loan. Feasibility report is on the running or proposed business of the client. The report enables the bank to judge the likely return of the business.

Remittances Department:
Demand Draft: 1) Demand Draft is a written order drawn by a branch of a bank upon the branch of same or any other bank to pay certain sum of money to or to the order of specified person. 2) 3) Demand Draft is a negotiable instrument. Legal provisions are same as that of cheque.

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4) 5) 6)

It is to be ensured that purchaser can at least sign. Thumb expression is not accepted on D. D. The following are the Parties a) Purchaser b) Issuing Branch c) Drawee Branch d) Payee

A demand draft may be issued against the written request of the customer before issuing it must be seen that the demand draft is in order.

Scrutiny of Application: The DD application must be scrutinized by the counter clerk in respect of following points: A. There should be branch where payment is to be made. B. Full name of Payer should be mentioned C. Amount in words and figures must be same. D. Application to be signed by the purchaser.

Telegraphic Transfer: Transfer of funds from one branch to another branch of the same bank or upon other bank under special arrangements Telegraphic transfer is not negotiable. The funds are not payable to bearer. Minor cannot avail this facility. Parties: Following are the parties involved: Applicants Drawing Branch Drawee Branch Beneficiary

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(Full name of the beneficiary or account number should be mentioned in the application form) Instructions regarding mode of payment should be obtained A record is the remittent outwards register should be maintained. All the remittent must be control through number.

Mail Transfer: Transfer of funds from one branch to another branch of the same bank with in or outside the city is called mail transfer. Mail transfer is not negotiable. The procedure is same as for DD. All precautions must be observed.

Pay Orders: Pay Orders is meant for bank own payment but in practice they are also issued to customers. A pay order is written authorization for payment made in a receipt form issued and payable by the bank. To the person named and address. The following are the parties: A. Purchaser. B. Issuing Branch. C. Payee Charges must be recovered at prescribed rate. Pay order should be like demand draft. A record of all issued and paid should be maintained. Credit voucher should be prepared

Technology department:
Technological advancement is also affecting the banking industry. The foreign banks have a competitive edge over all banks in their technologies advancements and automated systems.

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Local banks have also realized the gravity oil this situation and are striving to add computerized system to their branches. MCB is ahead of all other local banks in this field and now it is in position to even compete with foreign banks. There are more than 1405 branches of MCB all over Pakistan and out of these more than 300 branches are fully computerized Almost all the branches of big cities are computerized; therefore, the need for a technology department at each branch is growing. Now a day, a computer division is working in each city to provide service to all branches of that area. MCB has also introduced the now concept of online banking. There are now more than 300 branches linked through this system and they can transact with each other directly using computer systems at their own branches. Now customers dont have to wait long for their transaction and can operate their account through all the online branches.

ATM NETWORK: ATM stands for automatic teller machine. This machine is used to transact in ones account without intervention of humans. These machines are basically used for taking cash, conforming balances and requesting statements / cheque books. MCB has the largest ATM network in the country at the moment with almost one ATM at each online branch and also ATM terminals at international airports. This network covers more than the 27 cities of Pakistan including the provincial capitals and large commercial cities of the country. ATMs are operated through a card issued to the valued customers and by application of personal identification Number (PIN number).A person can with draw from any machine across Pakistan with having an account in only one branch of MCB. This was only possible with the help of online system. In this system all the machines are linked to central banking host at IRM division Karachi through either satellite or telephone controller. This system identifies the card holder and his PIN number.

JOB DESCRIPTION:
All new employees of the bank are required to finalize their job description within 15 days of joining at their place of posting (forms are available at the place of posting) the job description

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duly signed and agreed by both the new joiners and his/her immediate supervisor should be sent to HRD for record.

The purpose of job description is to clearly define the job responsibilities of each employee and to ensure that the employees are made aware of and understand what is expected of them.

Job rotation:
Periodic rotation of staff between various assignments is used by MCB Bank as a means of broadening area of expertise of concerned staff. This is also done to ensure smooth transition from one job to another in case the staff member leaves their job, or is transferred to other job or location. Furthermore, periodic job rotation has also become a standard audit requirement.

It has therefore been decided that all staff members posted at branches should be rotated periodically according to the following guideline:

1. For clerical supervisory or officer level positions, rotation may be done as frequently as conveniently possible, provided that the maximum period in one assignment should not be over two years. 2. For department heads or managers the minimum period should be 2 years and maximum period should be in one assignment should not exceed five years.

Mentoring:

A mentoring program has been initiated in the bank to help freshly inducted staff in Branch/Head office to integrate and settle down in their respective assignments as soon as possible. The objective of MCB mentoring program is that new joiners become well adjusted, motivate and productive employee in the shortest possible time. New joiners are advise to enquire about the

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identity of the mentor in their respective Branch/Unit and should quickly arrange a meeting with Him/her.

Training and development:

The management of MCB believes that systematic training and development helps the bank human resource in enquiring professional skills and expertise, which in turn gives MCB a sustainable edge over peer banks in the todays competitive business environment. On going learning for all is therefore one of the priority areas for the bank. The objective of training activities are to keep MCB employees abreast of latest professional knowledge and skills in all areas banking, as well as to reinforce a passion for the highest quality of customer services at all levels. At the beginning of every quarter TDC announces dates for training courses for the following quarter. The courses are planned on the basis of training requirement received from are offices, branches or Head Office Divisions/Departments, either through employee appraisal forms or by specific demand from time to time. TDC may also design and offer additional training programs in other areas in response to specific training needs expressed by its internal customers.

Fringe benefits:
In order to retain efficient and productive employees, organizations, and organizations need to provide employees with an enriched basket of fringe benefits, redefine jobs so that workers perform meaningful tasks, pay equal or higher salaries than the competitors, implement flexible work schedules and sponsor special training or higher education programs. MCB Bank provide following compensation and benefits to its employees Medical allowance House rent allowance Bonus Salaries and wages Inspection Provident fund

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 Sanctions

REMMITTANCE:

To fill the vouchers, as pay order and DD always get credit so I had to make debit vouchers for them. To get the vouchers singed for DD and pay order To keep the records in the registers which were maintained as per the rule of the state bank of Pakistan. To keep the record of newly issued credit cares as if someone lost his/her card then his previous card is blocked and new card is issued to him against the payment of Rs.200. To keep a check on the proper filling of the voucher as wrong or unclear filling may reject the payment to be done on time. To check and calculate the amount that has to be debited as if a pay order is sent to a person who has an account in a bank, then excise duty will be 5%of Rs.100, i.e. Rs.5. Rs.100 has to be paid by the sender to the bank and if the receiver is a waling customer then the sender would be charged Rs.500 for it. .

CUSTOMER RELATIONS:
To greet customers as MCB Bank proves to be the most caring bank To facilitate customers in filling the cash slip and to guide them to the right person at the right time. To provide quality services to the customers at the bank To politely and sharply deal with the customers To provide and guide them to the best possible way To answer the queries to the customers To help the customers in best possible way

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Overall Review:
The Bank has now completed more than 16 years, since its privatization and it is, indeed, gratifying to note that during this period, MCB has performed well and has sustained its growth in all the major sectors. The well deserved credit, for this good performance and progress, must surely to the Banks management, its Directors and, in no small measure, to the entire MCB team for its dedication, concerted efforts and excellent team spirit.

MCB has been a pioneer among the banks in Pakistan, particularly in introducing a number of innovative banking products and services like MCB smart card and car4U. For the first time in the history of Pakistan, these multifarious products mostly in the shape of saving schemes have been introduced by MCB with brand names. This has set the trend and many other banks, both local and foreign, have since followed in MCBs footsteps, by launching new products and services, on similar lines.

Findings:
1) The process of Automation at MCB is very slow. Some branches in rich areas are being made on lone vary quickly, while the branches in the poor areas are receiving no attention. 2) For the last 6 years or so the management of the bank has not raised the pays of the personnel. This is showing a bad impact on the performance of the employees. 3) The employees of old batches are habitual of poor behavior with the clients. They do not pay proper attention towards the clients. This may have a seriously bad impact on image of the bank in the future. 4) The ATM machines installed at various branches are unable to perform well. On observation, I found that in some unimportant areas the second hand machines were installed, while in high class rich and business areas, the machines with first class standard were installed. But while being on line, these machines failed to interact with each others effectively.

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5)

The process of launching Mobile-Banking is very slow. So the other banks in the market with their established networks are tying to capture the markets.

6)

The bank has lately entered the market of leasing and financing of home appliances. As a result of this late, the competitors in the marker have managed to capitalize the market potential.

7)

The staff of the bank is reluctant to guide the internees, as they show no personal interest in guiding the internees of various disciplines.

8)

The management of MCB is continuously cutting the no of branches, which simply means the unemployment.

SWOT Analysis
A SWOT Analysis is often done of an organization to elucidate the present capabilities of the organization and see how it can progress further. A SWOT analysis of MCB has been done here.

Strengths:
The largest commercial bank in Pakistan with the largest deposit base and therefore targeting the most number of people. Most economical pricing of products and services as compared to other banks. Easy assess to the customers at their residential localities through a high number of branches. Considered to be a trustworthy and highly secure bank. In the past and presently having a marketing strategy in place and therefore able to tap into the vast market. Presently many branded products that MCB can call their own.

Weakness:
Customer services at MCB branches below the average level of service available at most local commercial banks.

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 Tall bureaucratic structure that is inappropriate for a commercial bank and limits progressive activities. The tall structure has results in a smaller span of control which has led to less delegation of authority. This has minimized the growth of MCB. Not targeting and paying attention to higher class accounts like corporate accounts. No implementation of modern technology in small branches in rural areas. Employees behavior with the customers is ordinary and below the average in small branches.

Opportunities:
An opportunity exists in form of opining a separate ladies department within the branch, in order to give equal opportunity to ladies. Growing polices of the government on businesss and commerce sector provides MCB an opportunity to efficiently meet business peoples requirement of instant cash financing facilities. Customer feedback on various products and services could be immense help to MCB. MCB has opportunity to introduce latest technology in small branches. With the introduction of more branded products and services MCB could grab the market from other nationalized and foreign banks. Customers already trust MCB and with the introduction of such products it would be an incentive for them to become customers.

Threats:
The increased number of nationalized banks becoming privatized and foreign banks operating in Pakistan is a major threat for MCB. The aggressive marketing campaigns of foreign and private banks result in customers shifting their money to these banks. Lack of consistency of government policies often directly affects MCB.

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2.5 Recommendations for Improvement:

From the quantum of profit and its financial date it can be easily judged that after privatization, Muslim Commercial Bank is performing well. Its deposits are rowing day-by-day and so its

profitability. The controlling body is responsible for the productive performance of the bank following are many observation and suggestion to improve the efficiency for the development of economy: 1) Pakistanis working abroad through MCB send a big portion of one remittance. As we know a big portion of this amount is wasted in purchase of luxuries. The people can be motivated to save money by offering various investment schemes. The rate of profit should increase 1% or 2% than other banks and it would be profitable step for bank.. 2) Staff turnover particularly of trained staff result in financial and other losses. The amount spent by bank on employment, induction and training of outgoing officers constitutes to beat till another officer should ready prove this work. The exodus of bank officer in the past has worsened the situation. 3) Most of the bank employees are sticking to one seat only with the result that they become master of one particular job and loose their grip on other banking operations. In my option all the employees should have regular job experience all out-look towards banking. The promotion policy should be reviewed. 4) Refresher coursed for the staff is most important in any international organization. All the employees should have these coursed according to their requirement. Foreign experts can also be called for this purpose. 5) Every year some of the employees should be sent for training to another countries and employees form other branches should be brought here. Some more riding material should be provided. The purpose should be to educate the employees with the advance studies in their fields. The employees should be provided the opportunities to attend and participate in seminars and lectures on banking. 6) Banks should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. As such, system should be designed that every employee who has some problems

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with his officers can communication it to higher management and some steps must be taken to improve that. 7) A proper and conducive centrally managed Internship System should be designed, so that the forthcoming business students could be able to get firsthand practical touch. 8) For the last many years, the management of MCB is continuously closing its unprofitable branches and lying of the personnel of these branches. This is creating a situation of unemployment in the country. This should be stopped and an incentive for the bank personnel should be introduced. 9) The management of the bank should take care of its shareholders and a stable policy regarding cash dividend should be adopted. 10) The bank management should formulate such policies as to target home appliances market for middle class group because it is a larger market available with the bank to serve. In this regard proper leasing schemes should be introduced. 11) The process of establishing On-line Banking system should be conducted at a fast pace, so that a large number of clients could be served. 12) 13) The automation process should be conducted at a fast pace. The bank should take into series attention to conduct foreign business. Otherwise, foreign banks will capture the foreign market. In this respect the bank should capitalize its huge branch network. 14) The ATM machines and other instruments of the banks should be user-friendly.

Conclusion:
It is evident from this report and the financial statements of MCB that it is making progress by leaps and bounds. The profits of MCB have grown considerably during the last few years and this trend is expected to continue into the future. Therefore, we conclude that MCB has a very prosperous present and future, which assures the shareholders of wealth maximization. Side by side of it I think that if bank would be able to cover and control on the above mentioned recommendations then it would be in such a situation that will really lead it towards the road of prosperity, development and integrity. And with the above mentioned sentences I think there is too fault of the customers and in order to make the proper working of the bank the customers

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should also cooperate with the bank which will be really a good, ambitious and diligent condition for the bank. And then bank will be really in such a situation and position to compete its competitors in the country as well as on international level.

References:
www.mcb.com.pk www.sbp.org.net.pk www.pkeconomist.com www.punjab.gov.pk www.coper/hrm.ca

Books & Journals: Human Resource Management (Gary Dessler) Human Resource Management (David Decenzo) Public Administration Research Center (1981). Islamabad Annual Report 2009, 2010 MCB Bank ltd. Journal of Applied Psychology. Pp 81,557-574.

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