INTERNSHIP REPORT ON MCB BANK LIMITED

Aqsa Khalid
2021-ag-4516

DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES

FACULTY OF social SCIENCE

INTERNSHIP REPORT ON MCB BANK LIMITED

Internship Report submitted to the Faculty of Management & Administrative Sciences in
Partial Fulfillment of the Requirements for the Degree BACHELOR of Business
Administration.

BY:

Name:- Aqsa Khalid

AG no :- 2021-ag-4516
Program & Session:- ( 2021_2025)

Name of Program Coordinator ___________________

Signature of Program Coordinator_________________
ACKNOWLEDGEMENT

In the name of ALLAH, the most kind and most merciful.

First of all, I’m grateful to ALLAH ALMIGHTY, who bestowed me with health, abilities and
guidance to complete the project in a successful manner, and without HIS help I was unable to
perform this task. More than anybody else,
I would like to acknowledge my project advisor, Mr. ----------------- teacher of -------------------
------ for his never ending support and untiring efforts. He was always there to guide me
whenever I felt stuck off and his encouragement always worked as morale booster for me. I have
found him very helpful while discussing the tricky issues in this dissertation work.
I would also like to thank sir Khurram (Operations Manager of MCB) for providing me the
opportunity to have an excellent learning experience during my internship. His critical comments
on my work have certainly made me think of new ideas and techniques.
I offer my heartiest tribute and cordial gratitude to present my thanks to My teacher for their
kind support and cooperation in this project
Moreover, it would have been impossible to accomplish the task without the help of the staff of
MCB. Thus I would like to extend my gratitude to:
Sir Rashid (Branch manager )

Dedication
 “I dedicate my work & efforts first of all to ALLAH Almighty and His beloved
Prophet (P.B.U.H) and my Parents with dedication, love and gratitude without whom
caring support it would not have been possible”

It would not have been possible”

TABLE OF CONTENTS
Topic Page#
Executive Summary…………………………………………… v
Part 1: 7
Introduction…………………………………………………… 7
Overview of the organization……………………………….. 8
Mission & Vision…………………………………… 8
Core Values………………………………………… 8
Competitors………………………………………… 9
Brief History…………………………………………………. 9
History………………………………………………. 9
Today MCB…………………………………………. 10
Nature of Organization…………………………………….. 11
Segments of MCB………………………………….. 11
Business volume, Rewards, Success Stories…………… 13
Business Volume…………………………………… 13
Rewards & Honor…………………………………… 14
Products/ Services lines……………………………………. 15
Personal banking……………………………………. 15
Corporate banking…………………………………... 21
Online Services……………………………………… 22
Virtual banking………………………………………. 24
Islamic banking……………………………………… 24
PESTL Analysis…………………………………………….. 25
Political & legal……………………………………… 25
Economic…………………………………………….. 26
Social………………………………………………… 27
Technological……………………………………….. 28

MCB contribution towards economic development……… 29

Organizational Structure……………………………………… 31
Hierarchy Chart of MCB…………………………………….. 34
 No. of Employees……………………………………………. 35
Main Offices………………………………………………….. 35
Introduction of all departments…………………………….. 35
Comments on Organization………………………………… 37
Part 2:
Introduction of branch………………………………. 39
Details of supervisor………………………………… 39
Weekly Timetable…………………………………… 40
Description & Activities of Department……………. 47
General banking………………………………….. 47
Account Opening…………………………………. 49
Clearing Department…………………………….. 52
Remittance Department…………………………. 55
Cash Department……………………………….. . 57
Lockers & ATM…………………………………… 59
Task Assigned to me………………………………... 60
Summary of Learning……………………………….. 62
Conclusion……………………………………………………… 66
Key Conclusion Summary…………………………………… 66
General Observation about MCB………………………… 66
SWOT…………………………………………………………. 67
Recommendation……………………………………………… 71
References…………………………………………………….. 72
Appendix and supplementary material................................ 72
Executive Summary

MCB is one of the leading banks of Pakistan incorporated in 1947 MCB Bank has made
significant contributions in building and strengthening both corporate and retail banking sector
in Pakistan. My work is based on the observations & experiences during my internship & data is
collected for this report by many sources in which my own written work, discussion with staff,
literature on banking etc. In internship report I tried our best to explain all the work which I
learned during my internship & also give some suggestions for the betterment of MCB bank
LTD. This report is an upshot of my internship in MCB bank university of agriculture branch;
my internship report is based on different parts.
The main purpose of internship is to learn, by working in practical environment and to apply the
knowledge acquired, during the studies, in a real world scenario in order to tackle the problems.
In this report the detailed analysis of the organization has been done and all the financial,
technical, managerial and strategic aspects have been evaluated to analyze the current position
of the organization. Along with it, the background analysis, the prevailing competition analysis,
the business process analysis, and the internal environment and external environment of the
organization have been discussed and the recommendations & suggestions for the improvement
have been made wherever required. During my eight weeks internship program, I mainly worked
with the following departments:
GENERAL BANKING, CREDIT These departments have been discussed in detail and all the
policies and procedures have been described thoroughly. This report will provide a complete and
clear image about MCB Bank ltd.
5.1. INTRODUCTION:
BANK:
“Bank is a financial institute which takes money from those persons who have excess
money & lend to those people who have less money or those who have not resources to fulfill
their basic needs.”
Internship is a necessary course which must offer to the students of business. Internship
helps to students to learn their practical field so when they enter in market after their completion
of study they have the experience of market so they adjust in market very well.
I choose. University of agriculture branch for internship & I am very thankful to sir
Rashid (Manager) who provide me a learning environment in his branch. This report is about
MCB’s products, fields of activities and its management style.

Objective:
Following are the objectives of my internship:
• To get the experience of practical field.
• To increase their interpersonal abilities.
• Integrate my knowledge & skills.
• Apply my personal abilities in field.
• To work with well known organization.
• Enhance their skills & abilities.
• Understand how manage the stress/ burden of work in bank.

Purpose:
The basic purpose of my internship is to relate my area of interest of my study with
organization while it is a perfect field for me to doing a job with banking sector or not.

Scope:
I internship with MCB bank & tried our best to work well with all departments. It is
very helpful for me because when I complete my study I preliminary know the work of banking
sector so it is a broad scope for me working with any bank not only with MCB bank.

Difficulties Faced during data collection:

I faced some difficulties during data collection which are:
Most of the times people were not free to answer my queries or they were not interested at all in
my work.
They hesitate to reveal any information regarding their organization.
I prepared the questionnaire, but the response rate was very low.

5.2. Overview of the organization:

MCB bank LTD is a profitable financial institution in
Pakistan. It is a very famous & oldest commercial bank in Pakistan having a biggest network
within the country and outside the country.

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.

Core values:
The standards
and principles which
determine our
behavior and how we interact with our customers and each other
Core values of MCB are;
1. Integrity
2. Respect
3. Excellence
4. Customer centricity
5. Innovation

COMPETITORS:
• National Bank Of Pakistan
• Habib Bank Ltd
• United bank Ltd
• Allied bank Ltd
• Bank of Punjab
• Bank Alfalah
• Faysal Bank
• Standard Chartered
• Askri Bank
• Dubai Islamic bank
• Bank of Kyaber
 1. OVERVIEW OF THE ORGANIZATION

1.1. BRIEF HISTORY OF THE ORGANIZATION

The history of MCB can be divided into four main Phases:
• Development Phase
• Nationalization Phase
• Privatization Phase
• Present Position of MCB

1.1.1 DEVLOPMENT PHASE

MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the
Indian Companies Act, VII of 1913 as a limited company. The bank was established with a view
to provide banking facilities to the business community of the South Asia. After the partition of
the Indo-Pak subcontinent, the bank moved to Dhaka (then the capital of former East Pakistan)
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 64 years
legacy of trust of its customers and the citizens of Pakistan. MCB Bank is not an overnight
success story. It started with a share capital of Rs 30 million which is divided into 3 million
ordinary shares of Rs 10 each.

1.1.2 NATIONALIZATION PHASE

The 1960s decade is stated as the golden era in Pakistan’s economic and financial
development. The banking sector also registered noticeable growth during that period and lent
a strong helping hand to the government to achieve rapid economic growth of the country. But
in early 1970s this scenario changed altogether. The separation of East Pakistan Page 9 (now
Bangladesh) and induction of the government led by Zulfiqar Ali Bhutto were the most
significant events of early 70s having far reaching effects on the banking system. In the wake of
rapidly changing conditions of the country, the government decided to nationalize all the
commercial banks so that the nation as a whole can benefit from a better use of resources.
Consequently, the Muslim Commercial Bank was nationalized under the Banks
(Nationalization) Act, 1974 promulgated on January 1, 1974. In the banking sector, the then
government decided to retain only five major banks by merging all the smaller banks with the
large ones. As a result of this policy, the Premier Bank was merged into Muslim Commercial
Bank in 1974.

1.1.3 PRIVITIZATION PHASE

This was the first bank to be privatized in 1991 and the bank was purchased by a
consortium of Pakistani corporate groups led by Nishat Group. The banks after nationalization
came under political and bureaucratic control and deviated from normal banking practices. Some
of their senior executives were tempted to nurture a culture of obliging big businessmen, feudal
and political influential. They sacrificed their personal integrity and interest of banking sector
for gaining promotion and accumulating personal wealth. That is how banking sector started
losing its upright and professional institutional image from mid-80s and its downward slide
started which touched new low during 1990s. The then PML government also became conscious
of the falling standard of the banking sector and decided to privatize all the commercial banks.
Banks (Nationalization) (Second Amendment) Ordinance 1991 was also promulgated to pave
the way for privatization of banks in Pakistan. Page 10 In the wake of above amendments, 26%
shares valuing Rs. 149.8 millions of the Muslim Commercial Bank, held by the State Bank of
Pakistan were sold and the Bank’s management was transferred to the purchasers of these 26%
shares. Mian Mohammad Mansha is the Chairman of the MCB and has played instrumental role
in its success.

1.1.4 PRESENT POSITION OF MCB

MCB has significant contributions in building & strengthening both corporate and retail
banking sector in Pakistan. MCB’s profit before tax grew to Rs. 40.10 billion which reflects a
tremendous growth of 25% over 2021, despite the tough operating environment. The key
highlights were impressive increase in net interest margins through gradual shift in the maturity
profiling of investment base along with a more refined cost structure. The strategic profiling of
the investments based on the interest rate calls resulted in a gradual shift from shorter to longer
term investments, thereby capitalizing on the significant interest rate movement during the year.
Net interest income rose to Rs. 59.62 billion, 30% higher than the last year on account of
effective asset deployment of the low cost deposits. Analysis of the interest earning assets
highlights that income on advances increased by Rs. 20.37 billion, primarily on account of
increase in yield of 398bps. On the investment side, gross markup income increased by Rs. 30.76
billion, due to increased average volume by Rs. 66.61 billion and yield of 391bps. On the interest
bearing liabilities side, the cost of deposits increased by 278bps over last year. The non-markup
income block of the Bank was reported at Rs. 16.68 billion with major contributions coming in
from fee commission and foreign exchange income. In 2021 the Bank booked fresh auto loan
disbursement of over PKR 7 billion and was able to maintain its position as one of the top players
in auto finance business. Credit card business has exhibited significant growth with closing the
book at PKR 2.7 billion with an average growth of 11% over the last three years. Bancassurance
business set its highest sales record since inception and ended the year with the ever-highest net
sales number of PKR 3.16 billion with a growth of 29% from 2021. This performance is all the
more remarkable keeping in view the economic & political challenges faced by the country
during this past year and miscreant created issues that MCB specifically grappled with for a
large part of the year. MCB fundamental belief is that a financial services company can only
succeed if it meets its customers’ needs. If they can understand customer’s financial objectives
and offer them the right products and services so that they can be financially successful, then
MCB Bank will continue to build on its leadership position and provide requisite returns to its
shareholders. During 2009, MCB took several initiatives that brought even closer to their
customers. With the launch of MCB Privilege, MCB became the first local bank to offer a
dedicated proposition for the affluent segment; to meet the growth and protection needs of
customers, MCB Home Remittances surged to a volume of PKR 456 billion, registering a
tremendous growth of 22% over last year while trade volumes increased to PKR 920 billion
with a remarkable growth of 17% over 2021. Cash management volumes generated by the Bank
rose to Rs. 1.88 trillion during 2020. Despite the inflationary surge during the year, growth in
the operational network and constant investment in digital, cyber security and information
technology related platforms, the operating expense growth was contained to an impressive 5%,
as efficient cost management remains one of the key strengths for MCB Bank Limited. On the
provision side, the Bank surpassed all previous records of recovery by achieving the highest
ever figure of Rs.3.047 Billion and registered a growth of 7% over the last year. While the Bank
continued its journey to mark historical recovery figure on the board, it settled / resolved a large
number of chronic and willful defaulters where classification was more than five years old. On
the liabilities side, the deposit base of the Bank registered a significant increase of Rs. 95.73
billion (+9%) over December 2020. Return on Assets and Return on Equity were reported at
1.59% and 16.84% respectively, whereas book value per share was reported at Rs. 122.54. The
Bank has declared the highest dividend per share (Rs. 17 per share) in Pakistan’s banking
industry. MCB remained active throughout Pakistan, UAE and Sri Lanka through diverse
network of 1,422 branches (including 12 sub-branches) and more than 1,350 ATMs. To enhance
the knowledge and skillset of its work force, a number of trainings were held during the year.
Participants from all over the country were trained through different programs including in-
house, ex-house, mobile, and E-learning training programs. A segment comprising senior
management was engaged through a Management Development Program as part of the Talent
Management Scheme of the Bank. Detailed analysis covering performance and achievements of
respective groups against their targets for 2018 is included in the Groups’ review section of this
annual report.

1.2 NATURE OF THE ORGANIZATION

MCB Bank Limited is a banking company incorporated in Pakistan and is engaged in

commercial banking and related services. The Bank’s ordinary shares are listed on all the stock
exchanges in Pakistan whereas it’s Global Depository Receipts (GDRs) representing two
ordinary shares are traded on the International Order Book (IOB) system of the London Stock
Exchange. MCB Bank Limited is a Pakistan-based company. The Bank operates in four business
segments:
• Corporate finance
• Trading and sales
• Retail and consumer banking
• Commercial banking

1.2.1. CORPORATE FINANCE

Corporate finance includes underwriting, securitization, investment banking, syndications;

initial public offerings (IPO) related activities (excluding investments) and secondary
private placements.

1.2.2 TRADING & SALES

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

1.2.3 RETAIL & CONSUMER BANKING

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

1.2.4. COMMERCIAL BANKING

Commercial banking segment includes project finance, export finance, trade finance,
leasing, lending, guarantees and bills of exchange relating to its corporate customers. MCB
is one of the leading banks of Pakistan. Its deposit base of Rs.1145 Billion and total assets
over Rs.1515 Billion. 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 8.2 million,
a nationwide distribution network of over 1422 branches and over 1360 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
brand
I’m honoured and grateful to share our story of our sterling performance during 2022
– a year in which MCB Bank continued to focus on creating value for our clients, communities
and shareholders. MCB Bank’s profit before tax rose to Rs.40.10 billion reflecting a
tremendous growth of 25% over 2021. It has been achieved in a difficult and challenging
operating environment. The Bank’s profit after tax increased to Rs. 23.98 billion (+12%)
enabling a significant return on capital to our shareholders in the form of dividends, which
totaled Rs. 20.15 billion, the highest in the industry by any benchmark. The assets of the Bank
grew by 1.1% to Rs.1.5 trillion over the year. In comparison with 2021, net interest income grew
to Rs. 59.6 billion registering a splendid growth of 30%, with Return on Assets (ROA) and
Return on Equity (ROE) improving to 1.59% and 16.84%, respectively

Highlight – 2021

market
capitalization
PKR 243
Billion
net mark up
income PKR
ROA (1.59%)
59.62 Billion
(30%)

PBT 40.1 billion

( 25 %)

cast to ASSETS PKR

income 1515 Billions
ratio(43.40%) (1%)

deposits PKR
1145 Billion
(9%)

5.2.3. Business volume, reward honors & success stories act during
last 6 years:

5.2.3.1. Business Volumes:

The business volume of the MCB of the last five year so favorable
results as it all elements in the business volume goes higher as compare with previous year.
Six Years’ - Performance Commentary

In this section, commentary on the six years’ performance of the Bank is being
provided, covering key highlights;

Statement of Financial Position

Total Assets:

The asset base of the Bank has registered a remarkable compound annual growth
rate (CAGR) of 10.88% over the last 6 years growing to Rs. 1,515 billion as at December
31, 2021. Prime contributors to the said increase have been advances and investments, with
investments growing annually by approximately 8.90% while advances grew by 12.25%.
The earning asset mix of the Bank has been prudently managed to ensure maximization of
returns to stakeholders. In 2019, based on the strategic move, NIB Bank was merged with
and into MCB Bank Limited resulting in a significant increase in assets of 25%.
Furthermore, in 2020, 90 branches of the Bank were transferred to a wholly owned
subsidiary of the Bank i.e. MCB Islamic Bank Limited. In 2022 the Bank recorded a net
growth of Rs.17 billion (1.14%) over 2020.

Advances:

The changing macro-economic factors made the operating environment more

challenging with discount rate registering a sheer increase of 750 bps in the last two years.
Growing concerns on the asset quality coupled with limited credit opportunities falling
within the defined risk appetite has resulted in a moderate growth in gross advances base.
However, over the past three years, merger of NIB Bank and decent growth on the private
sector credit appetite has reflected in the growth numbers for MCB. Gross advances
have grown at a CAGR of 12.25 % over the last 6 years. ADR ratio of the Bank improved
considerably over the last few years i-e 42.41% in 2013 to 47.17% in 2021.

7
Rs.
in
Billi
ons

Non-performing Loans:

Strengthened risk management policies coupled with refined appetite has enabled the
Bank to keep a check on quality of its assets. Bank posted significant recoveries in past
few years. However, in 2021 the Bank surpassed all the previous records of recovery by
achieving the highest ever figure of Rs.3.047 Billion and registereda growth of 7% over
the last year. The infection ratio of the Bank was 8.68% as at December 31, 2019 which
improved to 5.90% as at December 31, 2018. However, transfer of NPL stock from NIB
Bank i.e. Rs. 29.650 billion has increased the infection ratio to 9.47% as at December 31,
2019. In 2021 infection ratio improved to 9.15% due to substantial recoveries. The
quality of asset base has been one of the prime focus areas of the Bank and the significant
recoveries posted in the last few years reflect the strategic focus of the Bank. The
coverage ratio of the Bank has moved from 85.62% as at December 31, 2019 to 87.73%
as at December 31, 2021.NPLs classified in “loss” category constitute more than 93.04%
of the NPLs base as at December 31, 2021. This specifies the adequacy of provision
held in the books of the Bank.

8
Rs.
in
Billi
ons

Investments:

During the past few years, the lack of credit opportunities resulted in banking
sector money being deployed in Government Papers as Government’s borrowing appetite
has continued to grow. With an average annual growth rate of 8.90% over the last six
years, the investment base of the Bank has grown from Rs. 511 billion as at December
31, 2019 to Rs. 748 billion as at December 31, 2021. In 2021, the strategic profiling of
the investments based on the interest rate calls resulted in a gradual shift from shorter to
longer term investments, thereby capitalizing on the significant interest rate movement
during the year.
Deposits:

The deposit base of the Bank has nearly doubled over the last six years, surpassing the
landmark of PKR 1 trillion, with absolute numbers increasing from Rs. 688 billion as at
December 31, 2018 to Rs. 1,144 billion as at December 31, 2022. CAGR of 10.40% is
maintained during the past 6 years. CASA base has registered remarkable increase in last
6 years, increasing from Rs. 626 billion as at December 31, 2020 to Rs. 1,035 billion as at
December 31, 2019. This has been strategically achieved through service excellence,
strategically placed touch points for the customer and transactional convenience provided
through a variety of products.

9
 1,400 90.42% 91.02% 92.86% 90.96% 94.13%
93.39%
1,145 1,049 968 781
1,200
Rs.
in
Billi
ons
1,000
800 697 688
736
600
400
200
0
2021 2020 2019 2018 2017 2019 CASA Ratio
Equity and Dividends
• The paid-up capital of the Bank has grown from Rs hi 11.1 billion as at December
2019 to Rs. 11.8 billion as at December 31, 2021, meeting the statutory capital
requirements set by the Central Bank.

• In 2008, most affluent strategic partnership occurred in Pakistan where the

largest Bank of Malaysia, Maybank Berhad, acquired 20% holding in MCB Bank
Limited (Current holding 18.78%. Dilution due issue of share under merger scheme).
In 2019, Fullerton Financial Holdings (International) of Singapore through Bugis
Investments (Mauritius) Pte Ltd acquired 5.49% stake in MCB under merger scheme
of NIB Bank with and into MCB Bank
Limited.

• The Bank has the highest cash dividend per share in the industry with regular interim
dividends and remains one of the prime stocks preferred in the Pakistani equity
markets.

Profit and Loss account

Net Interest Margin

10
• The composition of markup income has seen a shift in the last six years on the back of
concentration shift in the earning asset base of the Bank. The contribution from markup
income earned on advances has increased from 37.34% in 2019 to 41.46% in 2019
while markup income from investments is decreased to 54.58% as compared 61.91%
in 2019. Investment to total asset ratio is decreased from 55% (FY 2014) to 49% (FY
2021); whereas, advances to total asset ratio is improved by 2% from 2019 to2021.
Gross yield on average assets is also improved over the years and closed at 10.49% in
20121.

• The regulatory revisions covering minimum deposit rate introduced in the earlier years
of this six years analysis has adversely affected the Bank’s net interest margin. The
said impact was strategically diluted by improving the CASA base over period taking
it to over 90.42% as at December 31, 20121. In 2021, owing to the adoption of IFRS
16, the Bank recorded additional expense of Rs. 1.13 billion against unwinding cost of
liability against right-ofuse-assets. Furthermore, cost of foreign currency SWAPs was
increased by Rs. 2.35 billion over 2020 due to fluctuation in exchange rate.

Non-Markup Income

• During last six years, fee, commission income and capital gains have been the major
drivers behind non-fund income growth. Fee, commission income has grown on the
back of new products and services added to the menu coupled with remote banking
and branchless initiatives taken by the Bank. The product development teams of the
Bank have been tapping the unbanked segment of the population and offering them
tailored products to meet their specific financial requirements. Different types of
products have been offered in order to meet the needs of the time like credit card,
mobile banking, visa debit card, MCB Lite, prepaid cards, IBFT etc.

• The fee, commission and brokerage block of the Bank has been constantly increasing
over the years with major contributions coming from commission earned on card

11
 business, bancassurance business, and remittances and intercity / intra-city cash
transfers.

• The equity investment base of the Bank has been providing outstanding dividend
yields with dividend income proving to be one of the major contributors to non-markup
income. During the past 6 years, above Rs. 27 billion has been realized by way of
capital gains and dividend income.

1,1
45 10,
731

9,7
41

7,6 7,8
40 42 7,2
25

5,6
79

4,7
41 4,4
29
3,4
2,8 20
96
1,9
41 1,6 1,4 1,6
1,3
1,2 36 56 1,4 48
77 1,2 1,2 1,0 43
80
93 67 946 61
912

833

Provisions and write offs

• Owing to the strengthened risk management framework, the provision charge on

advances of the Bank has been on a declining trend over years. However for the last
two years the Bank has recorded net charge of Rs. 4.8 billion against equity portfolio
due to market volatility. The provision and write-off reversal was reported at Rs. 1.86
billion for the year 2020 followed by extensive recovery efforts and reversals in
subsequent years. To explain further, the Bank also carries an unencumbered general
provision of around 0.1% of gross advances and has not taken the benefit of FSV in
provision calculation for the year 2021

Operating expense:

12
• The growth in administrative block of the bank has been nominal considering the
inflationary patterns followed over the period of six years. The management has been
able to introduce cost effective techniques / methods to exercise control over the
administrative expenses. Centralization of various expense heads and imposition of
annual capping have been few of the key initiatives undertaken in this respect. This
has enabled the Bank to maintain one of the lowest cost to income ratios in the industry.

Profit before tax and Profit after tax:

• MCB Bank has been able to post outstanding profitability numbers over the period of
last six years as substantiated by the highest EPS and remarkable return on asset ratio.
CAGR over the last six years is 3.68%.

The post-tax profitability numbers were Rs.24.32billion for 2021 and now it stands at
Rs. 23.97 billion for 2022 The aggregate profit after tax for the last six years has
crossed Rs. 135 billion.

• Profitability ratios have been one of the best in the banking

industry which are reflective of the effective management of the affairs and adoption
of prudent strategies.

13
Six-year graphical summary of Ratios

Other statistics
• The Bank has added almost 3 million bank accounts to its base during the past 6 years
with the current statistics highlighting bank accounts over 8 million.

• With active participation in trade, MCB Bank has been able to improve trade volume
in last 6 years which has increased to Rs. 564 billion for imports and Rs. 357 billion
for exports.

• The Bank has been able to increase its market share in the remittance business growing
from Rs. 184 billion as at December 31, 2014 to the volume of Rs. 456 billion as at
December 31, 2019.

14
• In 2008, the Bank launched Bancassurance which was a unique cross functional
service to the customers of the Bank. With only 131 policies and 129 customers in
2008, MCB Bank issues 44,208 policies with new premium amount of more than Rs.
3.1 billion.
• MCB Bank launched mobile banking in 2009 with approximately 53K customers
reported by the end of the 2009. As of 2019, the mobile customers have grown to 1.91
million and above with transaction volume of over Rs. 50 billion.

• During the year 2019, this is the 7th consecutive year where MCBs Annual Report has
been adjudged winner for best corporate report award in
financial sector category. MCB Bank has been awarded as winner by ICAP
and ICMAP for Best Corporate Report Award 9 times in past 10 years.

• In 2015, MCB Annual Report has been honored to receive 1st place by South Asian
Federation of Accountant (SAFA) for best presented Annual Accounts 2014. MCB
was the 1st Pakistani bank to receive this accolade.

• In 2016, Bank was awarded Best Bank in Corporate Finance and Investment Banking
by EuroMoney Awards while in 2016 bank was awarded as best bank by Euro Money.
We have also been awarded for Country Awards for Achievement in recent past years
by FinanceAsia.

• In 2019, Bank was declared Most Outstanding Company in Pakistan in Financial

Sector category by Asia money.

China-Pakistan Economic Corridor (‘CPEC’) is beginning to show greater momentum with

several energy and infrastructure projects in the pipeline, which will fuel growth in the
medium term. Bank is continuously focusing on CPEC related infrastructure projects and
bank has been able to achieve various awards on outstanding performance under CPEC
arrangements. In this regard bank received award for Best Regional Bank in South Asia
for BRI (Belt & Road Initiative) - Asiamoney New Silk Road Finance Awards

5.2.3.2. Rewards and Honors:

MCB is recognized
A successful model of privatization. Because of its twenty-
nine booming years of privatization in 2020 and its growth

15
and stability, can be a case study for those prospective government institutions which
waiting to be privatized.
MCB has achieved following rewards;

Award Year Award Details / Transaction

Best Bank for Corporate Finance & Capital 2016 Pakistan Banking Awards 2016
Market Development

Corporate Finance House of the Year Fixed 2015 CFA Society Pakistan (CFA Pakistan)
Income (Runner Up)

Asset Triple A, Country Award 2015 “Deal 2015 Government of Pakistan Privatization of 11.5% stake in Allied Bank
of the Year - Highly Commended” Limited

Asset Triple A, “Highly Commended Best 2013 PKR 6.0 billion Loan Facility to Pakistan Mobile Communications
Islamic Deal” in Pakistan

Asset Triple A, “The Best Deal” in Pakistan 2012 Dawood Group acquisition of 16.42% stake in Hub Power Company

The Banker’s Asia-Pacific “Deal of the Year” 2012 PKR 11 billion Project Finance Facility to FFC Energy Limited, 49.5MW
by Financial Times, UK wind power plant.

Asset Triple A, “The Best Islamic Deal” in 2012 PKR 7.1 billion Syndicated Term Finance Facility arranged and led by
Pakistans MCB Bank for one of the largest telecom company of Pakistan

The Banker’s “Deal of the Year” for Pakistan, 2007 USD 53 million listed bond issue led by MCB Bank
by Financial Times, UK

16
 1.5 PRODUCT & SERVICES
Products and services of MCB can be divided into 5 main heads.
5.1.1 Personal banking
5.1.2 Corporate banking
5.1.3 Online services
5.1.4 Virtual banking
5.1.5 Islamic banking

1.5.1 MCB CORPORATE FINANCING

MCB Corporate Financing provides access to diversified financing options,

including working capital loans, term loans, trade finance services and investment
banking.
• Working Capital Loans Based on the customer’s specific needs, the
Corporate Bank offers a number of different working capital financing
facilities including Running Finance, Cash Finance, Export Refinance,

17
 Pre-shipment and Post- shipment etc. Tailor- made solutions are developed
keeping in view the unique requirements of your 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.
• Cash Management Cash Management provides a wide range of value added
services to large corporations through its vast network of online branches.
Our structured and customized products enable our customers to realize
their sales proceeds swiftly from all over the country, supported by real-
time
• Transaction Banking Division Transaction Banking provides wide range of
value added services to large corporations through its vast network of real-
time online branches network. Our structured and customized products
enable our customers to realize their sales proceeds swiftly from all over
the country, supported by real-time MIS. The basic products offered by
Transaction Banking Division are as under:
• Collections
• Payments
• Channel Financing
• Local Rupee Drawing Arrangement
• Home Remittances

1.5.2 MCB RETAIL BANKING

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 1.5.2.1 DEPOSIT ACCOUNTS

i. Current Account
MCB Bank offers a variety of current accounts to cater to the everyday
transactional needs of various customers. These accounts ensure ease and
freedom to bank from any of the 1,450 branches across the country. The
different accounts include: the basic account that has no minimum balance;
Business Account offering free online transactions, Demand Drafts, Pay
Orders and lots more to meet the day to day business requirements; Current
Life Account which offers the security of life insurance free of cost; and
for all the others the conventional Current Account.

ii. Profit and loss account:

It offers a wide array of savings products that suit short term growth &
transactional needs. Our savings accounts offer attractive profit rates as
well as flexibility to transact.

iii. Savings Xtra account:

is targeted for customers having Rs. 5 million deposit, 365 Gold offers
profit rate on daily balance while PLS savings has a lower minimum
balance requirement. In addition, a unique product: Smart Savings is an
account run solely via a debit cart, offering a very competitive rate to small
savers.

iv. Foreign Currency Account Enjoy the confidence of operating an

international account, locally. MCB Foreign Currency Account offers the
option of earning attractive returns on your Foreign Currency Investment.

19
 v. MCB Salary Club Account:

A unique product offering targeted towards organizations to

manage payroll by getting employee accounts opened with MCB Bank.
MCB Salary Club Account has both Current and Savings variants on
which employees can avail various free benefits & discounts on different
services.

vi. MCB Ladies Account: MCB Ladies Account is targeted specifically

towards ladies with the mainobjective to create a niche for females of
Pakistan and give them the freedom of managing their own finances
with a sense of security and independence. This product offers various
benefits including free Insurance with a unique blend of health, accident,
critical illness and death coverage along with attractive discounts on other
services. MCB Ladies Account holders also have an option to choose from
5 unique and colorful debit card designs with higher transaction limits,
along with an exclusive Cheque Book.

vii. MCB Current Life Account: A current account which offers Free Life
insurance coverage of up to PKR 1 million, giving customers peace of
mind by ensuring the security of their loved ones in case of an unforeseen
event.

viii. MCB Senior Citizens Account: MCB Senior Citizens Account comes in
both Current and Savings variants and aims to provide exclusive
privileges in order for our elderly customers to take care of their
financial needs with ease, while providing discounts on a wide array of
services.

ix. MCB Pensioners Account: MCB Pensioners Account comes in both

Current and Savings variants and allows account holders to live their lives
to the fullest and face the future with confidence. This account

20
 is designed specially to cater to the financial needs of Pensioners and goes
the extra mile to ensure peace of mind at this stage in their life. In addition,
50% discount on numerous services can be availed by opening up a MCB
Pensioners Account.

x. MCB Asaan Account: A current deposit account with simplified

account opening requirements is designed to extend benefits of
financial services to unbanked segments of society. This product aims to
improve economic growth of potential customers under the financial
inclusion initiative.

xi. MCB 365 Savings Gold Account: This account enables customers to
enjoy attractive returns on their deposits on a monthly basis along with
making use of various self-service channels such as Internet Banking &
Mobile Banking.

xii. MCB Burqraftaar Remittance Account is a promising product to serve

home remittance consumers with security, convenience, and accessibility
from a trusted medium. This account also provides a secure remittance
inflow medium which will help the customer and the remitter with a
unique withholding tax exemption on cash withdrawal. The account is
targeted towards Remittance Beneficiaries, who are resident Pakistanis
and rely on different mediums to receive funds with different risk
associated mediums.

xiii. MCB Asaan Remittance Account is another initiative by the SBPunder

the financial inclusion program to provide secure home remittance
inflows. The account is available in the Current variant only and is
targeted towards unbanked/under-banked remittance beneficiaries of
Pakistan, with simplified account opening requirements. This product not
only increases the Bank’s product portfolio but also fulfills its fiduciary

21
 responsibility of documenting the economy and inculcating a saving
habit in its customers.

xiv. Mahana Khushali Bachat MCB Monthly Khushali Scheme provides you
with a steady income every month. Just purchase a Monthly Khushali
Certificate and you will enjoy a steady income of your total deposit every
month. Terms deposit.

1.5.2.2 MCB BANCASSURANCE

Combining the best of banking and insurance solutions, MCB Bancassurance has
created a one-stop shop for all your financial and insurance needs. Whether you want to
save for your child’s education or marriage, for the security of dignity after retirement or
gaining maximum return on savings, MCB Bancassurance has a plan just for you. •
FlexiLife • LifePartner • EduCare • DreamWedding • CapitalSure • RetireEasy •
IncomeMax • FutureAssure • ProtectionPlan

1.5.2.3 MCB’S REMITTANCE

Fast, secure and easy-to-use, MCB's Remittance Services is an efficient way to

transfer money overseas. You can remit funds from any country to Pakistan through Swift
System. MCB Home Remittance provides a seamless inflow of foreign remittances
credited in the beneficiary’s account within minutes. Cash payments can also be made at
our designated branches on behalf of Xpress money, Samba (Speed cash now) and
MoneyGram, along with cash payments from other correspondents all over the world.

22
1.5.2.4 MCB LOAN PRODUCTS

• Car4U MCB Car4U not only gets a car of your own choice but is also affordable
with competitive mark-up, flexible conditions, easy processing and above all, no
hidden costs.
• Business Sarmaya Good cash flow is the key to any successful business. MCB
Business Sarmaya offers running finance facility against your house/ flat, insuring
a steady cash flow for your business.
• MCB HOME is an ideal Home Finance from your own bank that lets you
Purchase, Renovate or Construct your home the way you have always wanted.
Having your own home was never so easy
• Easy Personal Loan MCB Easy Personal Loan provides you with the financial
advantage to do things you've always wanted to but never had the sufficient funds
for. Take that much-needed holiday. Buy a car. Refurnish your house. Purchase a
new TV. Finance a better education for your children.  Instant Finance With MCB
instant Finance get a loan instantly at any MCB branch against liquid collateral at
competitive pricing.

1.5.2.5 MCB RUPEE TRAVELERS CHEQUE It is a safe and secure way to make
payments nationwide. MCB Rupee Travelers Cheque, being the market leader, is the most
widely accepted way to pay cash for travel-related purposes MCB Rupee Traveler's
Cheques were first introduced in 1993 as safe cash for traveling and travel related purposes.

1.5.2.6 MCB ONLINE SERVICES

23
 i. ATMs MCB has one of the nation's largest ATM networks with over 1360 ATMs
and still growing. MCB ATMs give you 24-hours convenience of cash withdrawal,
mini-statement, utility bill payment, funds transfer services and much more. With
MCB Mobile ATM not only do we provide you with world class banking service
but we also provide convenience. Our innovative mobile ATMs ensure that you
are given service close to you.
ii. Call Center The state of the art MCB call center is the right choice to keep you in
step with your ever hectic schedule by providing you services relating to your
account and Smart card at any point in time. There’s no easier way to bank than
the new enhanced 24/7 MCB Call Center, which blends innovation and
convenience to provide Banking Services that go beyond expectations. With MCB
Call Centre you can maintain your VISA credit & ATM/Debit cards, check your
account balances, confirm last 5 transactions, pay utility & mobile phone bills, top-
up your mobile, pay MCB Visa Credit Card bill from your MCB account, transfer
money within your own accounts in MCB and register complaint.
iii. Mobile Banking At the forefront of technological excellence, MCB proudly
introduces MCB MOBILE BANKING. MCB Mobile is a quick easy and secure
way to recharge mobile phones, transfer money, pay bills and do much more. No
need to visit a branch or an ATM anymore, login to www.mcbmobile.com using
your mobile phone and start transacting.
iv. Bill Payments MCB easy bill pay offers unmatched convenience to pay your
utility and mobile phone bills or re-charge your prepaid mobile phone accounts
anywhere, anytime with security and peace of mind. MCB is the only bank that
offers you 3 convenient options of making bill payments to PTCL, SSGC, SNGPL,
KESC, Mobilink, Supernet, IESCO,HESCO, and Ufone. So, save your precious
time by avoiding long queues and pay your bills through MCB Easy Bill Pay.
v. Online Banking MCB has a fast growing network of over 1,460 online branches
in the country providing customers real time online transaction facilities.

24
 1.5.2.7 MCB CARDS

i. Smart Card MCB Smart Card is the key that enables access to convenient
banking services. Smart Card allows you to manage your account, withdraw
cash, transfer funds, pay utility and mobile bills, recharge prepaid
connections, register for mobile and internet banking services and much more.
The convenience and flexibility of MCB Smart Card will help you live a
smarter life. It not only helps you manage your expenses, but also eliminates
undue interest on your day to day credit card transactions. Your balance is
always within your reach and you spend accordingly. MCB now brings MCB
Smart Card -a secure and convenient instrument of payment with unmatched
functionalities. It provides 24-hour direct access to your bank account.
ii. Debit Card Now MCB brings a secure, convenient and quick payment facility
that enables you to do purchasing by using your existing MCB ATM / MCB
Smart Card as a DEBIT CARD.
iii. Visa Credit Card MCB offers a complete suite of Classic, Gold and Platinum
Visa Credit Cards focusing on providing, superior service, travel privileges &
shopping pleasure. It also offers comprehensive insurance & installment
plans, reward points and SMS alerts that give a different feel to the world of
Credit Cards. These unique features include i-revolve, which makes variable
mark-up rate available to customers allowing them to repay at affordable
rates.

1.5.3 MCB INVESTMENT BANKING

25
 Make the most of your wealth with investment opportunities that match your unique
financial aspirations. MCB Investment Services offer distribution of mutual funds
managed by the leading fund managers of Pakistan. We can suggest the products most
suited for your needs, or work with you to create a personalized solution completely
focused on your expectations of the capital markets MCB goal is to provide best financial
solutions to client helping them achieving their objectives and support economic growth of
the Country. The basic services offered by investment banking are as under:
 Project & Structured Finance Involves financing complex projects, usually in an
SPV structure, where the loan is tightly structured around the cash flows, risks are allocated
amongst various stakeholders, and there is limited or no recourse to the sponsors.
 Syndicated Loans and Debt Capital Markets It involves structuring/advisory
arrangement, underwriting and placement services for significant financing requirements
by large corporate and institutional clients to other financial institutions or through the debt
capital markets.
 Quasi Equity/Hybrid Instruments It structures and places a category of debt that
has some characteristics of equity such as being unsecured, subordinated or with a potential
equity upside.
• Equity Capital Raising Equity Services relate to raising capital for clients
by offering common or preferred equity to public or private investors,
through initial public offers, offers for sale, rights issues and private equity
placements.
• Advisory Services Financial and Capital Raising Advisory provides
clients with financial advisory services, commercial structuring support
and access to capital resources to help companies successfully finance
their business/project.
• Facility Administration Management of creditor interests in syndicated
transactions in capacities such as facility agent, security trustee, project
monitoring bank, book-runner etc.

26
 • Commercial Banking Complementary products and services such as
revolving lines of credit, trade services and cash management that may be
bundled with our Investment Banking Products.

1.5.4 MCB AGRICULTURE PRODUCTS

MCB has been providing finance to the agriculture sector since 1973. With the help
of our vast branch network, specialized staff posted in the branches, multiple and
diversified product range, we cater to the financing requirements of the farming community
spread throughout the country and facilitate in achieving increased productivity.
❖ Shadabi Plan Shadabi Plan caters the financing needs for production
activities on the farm which mainly include seed, pesticides and fertilizers
along with provisions for miscellaneous expenses like payment of
electricity & diesel bills of tubewells, maintenance expenses for tractors
and the like items as per list of Eligible items.
❖ Khushali Scheme Under Khushali Scheme loans/finances are allowed for
farm/ non-farm credits which include fixed investments/working capital
requirements. Amount of finances sanctioned depend upon the credit
requirement and collateral. Financing for land leveling/development,
heavy equipment’s, agriculture machinery, vehicles/transport for agri
purpose are covered under this scheme. There may be other development
projects proposed by the farmers falling with in the ambit of agri financing,
which can be considered under this scheme.
❖ Tractor Finance Scheme To boost up the mechanized farming in the
country, Tractor Finance Scheme is introduced to offer specialized
services to farmers. Under this scheme, there is no requirement of
minimum land holding because of multipurpose use of tractor for
agriculture cum commercial. However, the repayment capacity and
potential use of tractor will be evaluated at the time of loan processing.

27
 ❖ Aabiari Scheme Under the Aabiari scheme, financing facilities for tube
well, other wells, irrigation systems of all types including sprinklers are
covered. The purpose is to facilitate the farmers in overcoming the
shortage of water for cultivation/plantation since water is essential
requirement for crops.
❖ Grower Finance Grower Finance is a unique way of financing
registered/(bonafide) growers/farmers of sugarcane, cotton and rice(mills).
The special characteristic is that the financing facilities are extended to
farmers against the Mill/Factory guarantee. Fixed/floating charge may be
created on the Mill's assets and the loan is disbursed directly to the
growers. This finance is short term in nature but the tenure may extend to
eighteen months in case of growers of sugarcane.

1.5.5. VIRTUAL BANKING

MCB provides the convenience of banking via internet, whether at home,

office or on travel, log on to www.mcb.com.pk and enjoy 24 hour access to all
your accounts at MCB for great number of services such as
• Funds Transfer,
• Utility Bill Payments,
• Mobile Top-ups and much more. 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 your 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.

28
 • 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.
• Cheque 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
.
1.5.6 ISLAMIC BANKING

With the help of Shariah specialists, lawyers and professional commercial bankers,
MCB Islamic Banking provides Riba Free and Shariah Compliant solutions to various
customer segments in a growing number of cities.
Deposit Schemes For customers who are looking for a deposit opportunity where
they can purse their funds and reap halal returns on it, MCB offer the following products:
Al-Makhraj Saving Account Al-Makhraj Ianat Account Al-Makhraj Term Deposit  Fund
Based Facilities MCB offers 3 broad Islamic fund based facilities: Ijarah Murabahah
Diminishing Musharika Equipment
Ijarah Products MCB’s Islamic Ijarah, analogous to the English term 'leasing’, is
based on the ‘Ijarah wa Iqtina’ concept which means the sale of the asset to the lessee after
the Ijarah has matured. Under this scheme, MCB will be the owner of the asset, and the
customer (lessee) will be given the asset to use for a certain period of time in return for
monthly rental payments. MCB will give a separate unilateral undertaking that it will offer
to sell the asset to the customer (lessee) at the maturity of the Ijarah agreement at a price

29
that may be equal to the security deposit amount, hence the term ‘Wa Iqtina’ Types of
Ijarah Car Ijarah Equipment Ijarah
Murabahah It is a contract between a buyer and a seller under which the later first
purchases the goods at the request of the former i.e., customer and then sells it to same
customer after adding profit. Murabah Sale Price = Cost + Expenses incurred + Agreed
Profit.
Musharika Equipment It is a contract through which the bank and its client
participate in the joint ownership of a property. The share of the Bank is further divided
into a number of units and it is agreed that the client will purchase the bank’s share
periodically, thus increasing his own share until all the units of the bank are purchased by
him so as to make the client the sole owner of the property.

1.5.7 PRIVILEGE BANKING

A first from a local bank, MCB Privilege through its dedicated, world class
Privilege Centers offers a higher level of personalized services, more rewarding in-branch
experiences and a wide array of deposit and investment products that are tailored to meet
the financial expectations for affluent clientele. As members of MCB Privilege, customers
experience unparalleled advantages that put them ahead of others. MCB’s dedicated
Privilege Centers a wait to welcome you in Karachi, Lahore, Islamabad and Multan, with
plans to expand to more locations.

5.2 ORGANIZATIONAL STRUCTURE OF MCB:

30
 As MCB is a banking organization also listed in stock exchange therefore it follows
all the legalities, which are imposed by concerned statutes. Mr. Muhammad Mansha
is chairman & Imran Maqbool is the president and chief executive of the Bank with a
team of 10 directors and 1 vice chairman to help in the business control and strategy
making for the company.
Recently the organizational structure was re-designed as follows

6 MCB’s Management Hierarchy

7

31
 7.1.1 Introduction of all Department:

There are different departments working in

MCB bank some of them are as follow.
7.1.1.1 Customer Service Department

7.1.1.2 Cash Department

7.1.1.3 General Banking/Remittance department

7.1.1.4 Credit and Advances department

7.1.1.5 Foreign exchange department

7.1.1.6 Account Opening Department

5.3.4.1. Customer Service Department:

The first department is a customer

services department which is deal in with respect to the customers dealing like balance
inquiries, account statements, customer complaints.

5.3.4.2. Cash Department:

Cash department relate with all cash transaction like

deposit & withdrawal of cash in bank, this department is manage by the accountant. They
deposit the amount of customers, withdrawal the cash of customers, deal in DD/ PO etc.
Accountant check the balance of cash @ the end of the day & it should be equal.

5.3.4.3. General banking department:

General banking deals with remittance,

issuance of DD, PO, Funds transfer, Rupee traveler Cheque Issuance and payment,

32
Cancellation and payment of DD PO, inward clearing, Outward clearing, Cheques
Collection, issuance of Term deposit, fixed deposit and cheque book issuance etc.

5.3.4.4. Credit and Advances Department:

Credit & advances department manage

the credit in a bank & arrange the loans for business man & also for their customers.
1. Loans

2. OD (overdraft)

3. Cash credits

Bank issue loans for short, medium, long terms to their customers & bank not issue these
loans without any security on the back of this loans so bank mortgage or pledge the
property, any assets or documents of customers which are often the higher than the market
value of loan or some time equal to the value of loan.

5.3.4.5. Foreign Exchange department:

This department deals with all the foreign

exchange affairs like payment or retirement and foreign remittances. Every transaction
which is take place in the international banking shall be carried out at rates which are settled
by the state bank of Pakistan.

5.3.4.6. Account Opening Department:

This department deals with opening of

account in Pakistani as well as foreign currency.

5.3.5. Comments on organizational structure:

• The organizational structure of MCB is growth slanting and participative.

33
• Basic aim of the management is to provide a place which is much possible and
comfortable for employees of the bank.

• MCB has created a tough environment that encourages creativity and assurance.

• Vibrant culture offers various growth opportunities across Pakistan and in many
other countries around the world.

• MCB foster a work environment where employees can understand their latent
whether locally or in the international arena. Thus, enable the employees to achieve
their specialized goals while keeping in synch with the bank’s overall objectives.

34
5.4. Internee work:
5.4.1. Branch Introduction of MCB university of agriculture
I choose the MCB bank for
internship. I completed my internship in this bank. This bank is situated at the main campus
Of Agriculture University .This branch established in 1975. It is a branch with a deposits
base of 2.00 billion .
Some other information about my branch is given below:
Every bank has a code that is assigned by the head office, my branch MCB code is 1688.
To contact with my branch following are the numbers are given below:
PT

Period of internship:
Joining Date:
Leaving date:

5.4.2. Detail of supervisor:

Position/ Designation Name

Branch Manager (BM) Mr. Rashid

Branch Operation Manager (BOM) Mr. Khurram

Customer Service Manager (CSO) Ms. Sania

Ms.

Mr.usman

35
5.4.3. Weekly timetable:

1st week Department:

General banking

Date Activity/ Task

July 2024 Introduction of bank.
July 2024 Learn about deposit slip and many vouchers
July 2024 Learn about the different kind of application in bank
July 2024 Learn about different kinds of cheque
July 2024 See many banks stamps & many vouchers.
July 2024 Learn about how to fill the deposit slip & others vouchers.

Signature of Supervisor:

36
2nd week Department:
General banking (Account opening section) Supervisor: Mam sania

Date Activity/ Task

1 August 2024 Learn about opening a new account & understand the function of
different account, customer relationship
2 August 2024 Opening an individual account
3 August 2024 Learned many other account like zakat, business, student account
4 August 2024 During working in account opening department, I opened 5
individual accounts. Fill their Account forms & KYC form.
6 August 2024 Learned how cheque book & ATM card issue.
7 August 2024 Make practices in the account opening department.

Signature of Supervisor:

3rd week Department:

General banking (Clearing section)

37
 Date Activity/ Task
8 August 2024 Learn about the basic of the Clearing department in general banking.

• Outward clearing
• Inward clearing

9 August 2024 Understood the whole section of outward clearing

10 August 2024 Get the knowledge about inward clearing
11 August 2024 I also passed entries in the clearing (inward & outward) register.

I Collect cheques for clearing from supervisor.

Issue deposit slips to customers.

13 August 2024 Gets the knowledge about the intercity & same day clearing?
15 August 2024 Last day, work overall in clearing department

• Received cheques from customers

• Issue deposit slips to customers
• Recording of different kinds of information about the customers like
name, date, address, bank name, drawee name in clearing register.

Signature of Supervisor:

4th week Department:

General banking (Remittance section)

Date Activity/ Task

38
 16 August 2024 Learned different activities in remittances department.

Gained basic knowledge about Demand Draft (DD) and Foreign

Demand Draft.
17 August 2024 Learned about the Local Fund Transfer (LFT).
18 August 2024 Use of Traveler cheque in banks.
20 August 202 In 4th day of this week. I understand & get the complete knowledge
about P.O
21 August 2020 Understand the process of make of P.O & issue of P.O

22 August 2020 Learn the process of the making of DD.

Signature of Supervisor:

5th week Department:

Cash Department and General banking (Customer Service Section)
Supervisor: Mam Sadaf

39
 Date Activity/ Task
23 August 2020 Work together with the supervisor of Cash department.
24 August 2020 Learn how to verify the cheques
25 August 2020 Working in the receipt department, fill the deposit slips & at the end
of day, help of supervisor in closing of cash procedure.
27 August 2020 Utility bills
28 August 2020 Collection of utility bills & records of bill data in scroll book.
29 August 2020 In the last day, I performed the duty of CSO. Attend call, receive
inquires & make call to customer in any case.

Signature of Supervisor:

Six week Officer: Miss

Zardashia, Mr. Basahrat

Date Activity/ Task

40
 30 August 2020 Learned about ATM.

Terms & condition about ATM.

31 August 2020 Filling & Receiving of form of ATM.

Issue the ATM cards to the customers after fulfill the necessary requirement.
1 September 2020 Help of customers in the activation of ATM

Receive & Record the complaints about the ATM from customers.
3 September 2020 Learned about the lockers facility provided by MCB
4 September 2020 Final practice in account opening & Cash department.
5 September 2020 Final practice in clearing & remittance department.
6 September 2020 In last day, I worked almost in all departments & share our experience about
my working with staff.
Note: My six week complete on 6 September 2020 but I internship with MCB till 7
September 2020 so that’s why, the leaving date on my internship letter is written 7
September 2020.

Signature of Supervisors:

1st Week:
In first week of my internship I work with general banking department. My
supervisor is Ms Zardashia. She is a customer services officer (CSO). She tells me about
the general concept of banking. She gives me a brief concept about the deposit slip & many

41
application & voucher that is used in bank. Also tells me about different cheques & their
functions.

2nd Week:

I work with the account opening department in the 2nd week. Here my supervisor
is Ms Zardashia. I learn about, who to open the different kinds of account. Which things
kept in mind in opening an account? How accounts close & Issuing of cheque book &
many other things.

3rd Week:
In the third week, I worked with the clearing department. My supervisor is Ms
Nabila Dar. He guides me about different things like inward & outward clearing. I also
learn the filling of entries of clearing. I receive cheques from customers also.

4th Week:
In the 4th week, I work with the remittance department under the supervision of
the Ms Nabila Dar. I learn about the RTC, making of PO & DD.

5th week:
In the fifth week, I work with Ms Sadaf in cash department. I work with the both
remittance & payment department. Collect cheques from customers & also receive the
utility bills from customers.
6th Week:
In the last week, I work in ATM department; learn the whole procedure of ATM.
Learn the locker procedure. At the end, I work with the all departments (General banking,
Clearing, Remittance, ATM and Cash).

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5.4.4. Detail of department along with operation:

1st week: (25july2020—31july2020)

Department: General Banking
Supervisors: Ms Zardashia Chohan

Detail of my activities:
In my 1st my day in internship, I met with all staff in the bank. My
1st week of internship is in the general banking department, the officer of general banking
department is Ms Zardashia Chohan, she is my supervisor in general banking department.
In my 1st day I learn about the bank, what is banking sector? What is the main function of
the banks & over all the basic information about bank? In 2nd day I learn about the deposit
slip which is a part of general banking, here a bank officer deal with customer. Customer
deposits their saving in bank for many purposes. I learn the whole procedure of deposit
slips & many other vouchers in banks. In 3rd day of my 1st week in internship, I learn from
my supervisor about the different kinds of the application e.g. funds transfer application.
MCB bank provides a faster way of transferring cash to another place. I personally observe
this thing in bank. In 4th day I learn from my supervisor about different kinds of cheques
in the banks. Bank receives different kinds of cheques from customers who have a different
function. In a 5th day of 1st week, I learn about the different stamps that are used in general
banking department. This stamp is used in filling of deposits slips & funds transfer
application. In the last day of 1st week, I learn about the fillings of this slips like deposit
slip & fund transfer application. Mam fill one slip so that I understand than in a whole day
I filled him all the slips in the bank.
Some important information gives me Miss Zardashia:
• In filling of cheques. If in the slips, cutting or overwriting is happen than it is
necessary to take a signature of the customer on that specific place where cutting is
done.

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 • The amount which is written should be same in word & figure
• The copy of CNIC is necessary demand by customer in the filling of deposit slips
in case of those customers who have no bank account in MCB.

Procedure of online transaction:

Following are requirements in the filling of online
transaction
1. CNIC no. of sender.
2. Beneficiary Account Number
3. beneficiary Branch Name and branch code
4. Amount of Funds transfer in words & figure.
5. Signature of the customer who online transfer the amount.
6. Purpose of transferring or online.

2nd Week: 1August2012—07August2012

Department: Account opening
Supervisor: Ms Zardashia Chohan

Detail of my activities:
In the second week of my internship in the MCB, I work with the
same supervisor Mam Zardashia Chohan. In this department I learn about the account
opening process. My supervisor guides about the different type of accounts in the bank.

44
She tells me about the different types of account like individual account. Sole
proprietorship account, partnership account, corporate level account etc. my supervisor
also tells me the some important things which kept in mind during filling the account form.
In this week firstly understood the whole procedure than practically work in this
department. I opened many individual accounts, collect the data from customers & than fill
their account opening form.

Opening of New Account:

The primary function of any organization is to create
relationship between organization & customers. Banks create this relation by opening the
new accounts of customers in the bank. Every bank tried our best to open the new account
on maximum level. In this way bank generate their income. MCB open the different types
of account given as follow:

Formation of individual account:

Banks follow the different rules &regulation before
opening the individual account. A person come in the bank for opening the account with
money, manager of the bank demand the original CNIC from the customer. If customer has
an original CNIC than it is proving that the customer is the resident of the country but it is
not only requirement for the customer. Customer sale officer (CSO) verifies the CNIC with
the NADRA verfysis.
MCB give a lot of respect to the customers. Before opening the account, manager asked
from the customer about the income resource of the customer. If the purpose of the income
is legal than the bank open the account of the person.
The bank provides the account opening form to customer. In
this form the customer provide the information that is written in the form. If the customers

45
not fulfill the form himself than the bank employees fulfill the form of the customer on the
behalf of the customers. I also fulfill the forms of the customers of account opening.

Requirements for opening an individual account:

• Photocopy of national identity card of concerned person
• Also give the copy of CNIC of next kin
• Application of account opening
• Signature on the signature specimen card
• Must write the source of fund
When all these requirements fulfill the customer officers signed on the signature specimen
card for attestation. The customer deposits the money to the teller; receive the deposit slip
for future references.

Account of salaried person:

• Copy of CNIC of the salaried person
• Person attach the salary slip with the form
• Also attach the letter that is by employer
• CNIC copy of next kin

Business Account:
Following are the requirements for opening the business accounts:
• Copy of CNIC
• Business Letter head
• Business Stamp
• A letter in which the request for account opening
• Copy of National Tax no.
• Also mention the place of business

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Procedure of closing an account:

Customer has a right to close the account himself.

Customers written an application to the bank in which the customer request to the bank for
closing the account. Bank done following activities in closing an account:

Return the remaining balance to the customer. Customer returns the debit card,
cheques book & other instruments to the banks. After doing process the bank closes
account

Issuance of Cheque Book & ATM card:

The bank provides the cheque book to the
customer. Bank officer take a signature on from the customer than issue the cheque book.
Second time the cheque book is issued when the customer fill the leaf that is attached in
the existing cheque book. The bank officer applies for new cheque book online.
Cheque book contain on 10, 25, 50, 100 leaf. One cheque book
is issued at one time. The bank record the cheque book issuing entry in the register where
he record the name of customer, account number, cheque book leaf number from start &
end & at last the bank officer take the signature of the customer.

3rd Week: 08August2020—15August2020

Department: General Banking (Clearing Section)
Supervisor: Ms Nabila Dar

Detail of my activities:
Clearing Department:

47
 MCB provide a lot of services to the customer. In the 3rd
department, I work with the clearing department & here my supervisor is Mam Nabila Dar.
She guides me about the clearing. In banks, two types of clearing are done. One is inward
clearing & 2nd is outward clearing. Banks receive the checks of the customer whose are
drawn on it of the others banks. Customers who are not in the city also avail this facility.
Clearing:
Clearing is the facility that is provided by the banks to the customers for the
transfer of the funds. Here I explain clearing through an example. A is a customer of MCB
receive cheque from the person who is the customer of other bank, present this cheque in
the MCB. Bank put the process on this cheque & this example is also for the outward
clearing. Now I explain the both types of the clearing under:

Kinds of clearing:
• Outward
• Inward
Outward clearing:
1st is outward. In this clearing, in MCB bank the cheques of the
others banks is present. The General Branch officer work on it, verify the cheques of the
others bank & put in the NIFT portion. NIFT receive the cheques from the banks & transfer
the cheques to the original branch. The bank where is the cheque is present record the entry
in his book & next day or after three days when the verification is done by the bank, the
presenting branch of that cheques credit the accounts of the customer with the amount that
is written in the cheques, credit means increase in the account of the customer & if the
verification is done by the bank & reject the cheque by the bank than the bank not credit
the account of the customers.
Inward Clearing:
A second type of the clearing is inward clearing in which the bank
receives the cheques from the NIFT. These are those cheques which are the cheques of that
branch & shown any other branch & receive these cheques for the verification. The

48
collecting branch where is cheques is verified check the different things before verify the
cheque like account of that person that he has a money in the account or not. If there is
money than the bank officer verify the cheque & transfer in the next day or after three days
in intercity clearing & debit the account of the customers which means that the deduction
of the amount from the account of the customers. Next branch receive the cheque & credit
the account of branch customer. If the bank where his own cheque is present & after
verification clear the cheques but after it if the cheque is cancel because of any reason than
the bank again the credit the account of the customer because the money is not deducted
from the next branch. The debit & credit is recorded in the voucher of the debit & credit.
The credit voucher is the yellow color & the debit voucher is the pink color. The transaction
of the inward is also recorded in the register of inward.

Intercity clearing:
Banks are divided in to two areas, one is the local area & the second is
the intercity area. In local area, the nearest areas exist. For example, for the CHARSADDA
branch, TANGI, PESHAWAR, MARDAN & many other areas that is attach with the
CHARSADDA are in the local area. On the other hand, Lahore, Islamabad, Karachi &
many other cities exist in the intercity. The banks provide the intercity facility to the
customers. The cheques which are drawn by the person on the other person but not for the
local area exist in the intercity. NIFT provide the facility of intercity to the different banks.
Bank officer pass the cheques, sign on it, pass the stamp on the back & front of the cheques
& NIFT receive the cheque & transfer to the specific branch. The intercity is done within
the three days. Banks charge the amount on the intercity facility from the customers. NIFT
charge the amounts from the banks for the transferring. The charges of intercity is Rs. 290
Same day clearing:
This is also a facility that is provided by the banks to customer that is
same day clearing in which bank receive the inward & outward cheques through NIFT.
NIFT clear these cheques on a one day. This facility is only available in the large size
branches in big cities. This facility is not in the CHARSADDA branch.

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 NIFT deliver the cheques to the bank 10a.m & after it send these
cheques to the other bank at 4p.m after clearing & also receive their charges. This facility
is provided only the cheques of Rs. 500000 & more.

Types of Collection Cheque:

• Transfer delivery Cheques:

Cheques in which two branches involve but both

branches are under one name like MCB. One branch collected & other branch paid
the amount of cheque.

• Clearing Cheques:

Clearing cheques are those cheques which are drawn in the

banks in the same city or area. These areas exist in the local area according to the
NIFT distribution.

• Collection Cheques (CC):

CC is cheques which are drawn upon bank of the same

branch or on the others banks, but situation of these banks is not in local area. One
bank is in the intercity distribution.

4th Week: 16August2020— 22August2020

Department: General Banking (Remittance Section)
Supervisor: Ms Nabila Dar

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Detail of my activities:
Remittance Department:
In the 4th week I work with the remittance
department. My supervisor is Mam Nabila Dar. In this department I learn about the
remittance in the MCB bank. Remittance is a facility in which bank transfer the money
within the country & outside the country on the behalf of the customer & deduct charges
for providing this facility. Remittance has two types:

Types of Remittance:

Inward Remittance:

The first type of the remittance is the inward remittance in which

bank receives the instrument from the customer for transferring the money.

Outward Remittance:

The second type of the Remittance is the outward remittance in

which the bank issue/ pay the instrument to the customer on the behalf of the other person.

Participant of Remittance:

Following are the parties that is a part of remittance,

• Beneficiary
• Applicant
• Agent (bank)

Ways of Payments:

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Demand Draft (DD):
Mode of payment in which the bank made the draft on the behalf of
the customer. The bank fills the form of the demand draft. The amount is deducted from
the account of the person. This is made especially to avoid the loss of physical amount.
Customer maximum tried to not have money in the physical nature so they became the
demand draft from the bank.
Pay Order:
It is also a mode of payment in which customer order to the bank to pay the
certain amount of money to the specific person on the behalf of the customer. The bank
deducts the amount from the account of the customer.

Steps involve in issuing DD and PO:

• if a person want to make a DD & PO from the banks than he write an application
to the bank than bank make the DD & PO on the behalf of the customer. Bank
deducts the charges from the customers.
• The application consists on some question which is necessary to fulfill by the
customers like name, currency name, beneficiary name & signature of the
customer.

Banker’s cheque:
An instrument that is newly introduce in all banks in which an order to
pay the amount of money to the customers & in this instrument the restriction of the
presented at the specified branch is eliminated.

5th week: 23August2020—29August2020

Department: Cash Department and General banking
Officer: Ms Sadaf

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Detail of my assignments:
In 5th week, I work with the cash department. Here my supervisor
is Mam Sadaf. I learn a lot of things in this department about the cash. I collect the bills of
the customer, pay cash, and receive the cash from the customers.
In cash department, following are the books are prepared:
1. Book of cash in hand
2. Cash book of State Bank of Pakistan
3. Book of recording of bill (Scroll Book)

In cash department, the customers deposit the money in the account. The customers fulfill
the deposit slip & verified by the officer of the bank than present the deposit slip in the
counter. Teller again verified than receives the money & transfer in the account.

When the person wants to receive the amount from the bank, he
writes a cheque & draw on bank. Bank officer BOM verify the cheque & sign on it. Than
this cheque is transfer to the teller he also verified the cheques & than pay the amount to
the customer.

Cash is saves in the locker of the bank & every day whole procedure done. Record the
entries in the books & equal the cash according to the record data.

“Cash at the start of the day + cash receive during the day – cash pay during the year
= cash at the end of the day”
Cash department is the more hazardous department. The job of the accountant also so
difficult because there is changing in the one rupee entry become the illegal work &
accountant goes to under observation. Cash department is more risky, manager has also nit
allowed to enter in the department without the permission of the officers in the cash
department. Bank management adopts a lot of precaution like grilled all the space of the
cash department, cameras are put inside the department, a guard assign for the safety of the
cash department.
Collection of utility bills:

53
 MCB also receive the bills of the customer on the behalf of the
companies of that bill. Bank charge the commission on receiving the amounts of the bills.
Tellers perform their duty in receiving the bills.

6th Week: 30August2020— 6-September2020

Department: General banking
Supervisor: Mr. Basahrat & Ms Zardashia

Picture of my working:
In last week of my internship I work with the general banking
department & here I work in ATM department. I learn the whole procedure of the ATM
issuing & many others things about the ATM. Banks put the money in the in the ATM in
12:00 pm. Bank record the transaction of entering the cash in the ATM machine. In the last
day I work with all departments to understand the work of all departments again.
ATM Cards:
Banks provide this facility to those customers which have the account in the
banks. Following is the procedure adopt by the bank in issuing of the ATM.
• Customer fills the form of ATM issuing. Customer provide the information to the
bank which is demanding in the form
• This form check by the general banking officer & after the verification this form
data is sent to the Karachi ministry who work on it.
• When banks receive the card from Karachi, he sent this card to the customer on his
address which is written in the form.
• When customer receive the card than he registers the card by calling the helpline of
the bank & receive the password number which he wants.
• When the card is register than it is become useable by the customer.
• The fee on the ATM is receiving on the daily basis.
Charges on ATM:

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 Issue of ATM: Rs.1280/-
Annual fee of ATM: Rs.1280/-
Locker facility:
MCB also provide a facility of the lockers to the customers.
MCB provide different kinds of lockers to the customers like small size locker, medium
size lockers, large size locker, fee on the lockers is charge on the annually basis from the
bank. Locker is open with two key. One key is in the custody of the customer & other in
the custody of the bank.

Procedure of using locker:

When customers want to use the locker, he goes to the bank
with a key of locker &Met with the manager. He records the entry of using the lockers by
the customers. Firstly the manager put the key to the locker & than the customer attaches
the key of the locker than locker open.

5.4.5. Task Assigned to me:

I assigned different task during my internship that is given
below:

5.4.5.1. Issuing Deposit Slips to Customers:

In clearing department I issue the deposit
slip to customers.
5.4.5.2. Fill the online fund transfer applications:
There is a lot of transaction of the online
in a day, so I filled a lot of online application in a day.
5.4.5.3. Opening of an account:

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 Bank opened three to five Accounts daily so that there is
a long form which many people not fill himself. I fill the account opening form &
signed from the supervisor.

5.4.5.4. Vouchers:
I made the debit & credit voucher in a day. Debit for charge the
commission from accountholders & credit to transfer any income to the accountholder
account.
5.4.5.5. Issuance of cheque book:
I also issue the cheque books to the customer. The first
time cheque book issued after the verification by the supervisor. Banks post a letter of thanks
to the new account holders & when the customer come with the letter of thanks than I record
the data in the cheque issuing books like name, no. of leaf, cheque book no & take the
signature of the customers.
5.4.5.6. Record Entries in Clearing Register:
I working with the clearing department I
make entries on the daily basis of clearing (inward & outward). My supervisor verifies the
cheques which are in the outward clearing than I record the data of outward clearing cheque
in the outward clearing register. In register the name of other bank, drawee name, amount,
date is written & at the end the total amount of outward is written & than match with the
original cheques than at the end my supervisor makes a list of all outward clearing cheques
& than NIFT receive these cheques & transfer to their specified banks.
Same case is happening in the inward
clearing. When MCB receive his own bank cheques than record the data, in this case the
customer account is debited with the amount that is written in the inward clearing cheques.
5.4.5.7. Utility Bills Collection:
I receive the utility bills of the customers. Take money from
customers & deduct the amount of the bills. The customer copy is give to the customer &
office copy is kept by him for further records. Make an entry time to time by receiving the

56
bills & at the end, the whole data is record & match with the original entries. A bill scroll
book is maintained by me. On each bills collection, bank charge PKR.8
.
5.4.6. Summary of learning:
I have done my internship in the MCB bank in
CHARSADDA. Internship provides me a chance to enhance my abilities. MCB is a famous
bank in Pakistan & it is my luck to do work with a high standard banking organization. The
entire supervisor in the bank is very competent. I learn a lot of things from our supervisors.
In the start I am shy & nervous that how I do work with the
staff & understand the banking system in a practical field but my all supervisor trained me
very well I learn a lot of skills in the MCB which help me at everywhere in my career &
practical field. I also learn how a burden of work manages in the bank. My supervisor takes
a lot of work from me & I tried our best to do well because these are my responsibilities. I
observe many things in doing internship in bank. Internship also influence my future career
plans & I also relate my knowledge with practical field work.

5.4.6.1. Skill:
I learn a lot of Skills in the internship. My all supervisor are very helpful.
They are all provide me a maximum time in his busy time & tried his best to provide me a
lot of skills of practical field. Followings are the skills which I learn in the MCB.

• My confidence increase
• Dealing with customer
• Manage the tough time in the bank
• Discussions on general field
• Satisfied the customers
• Understand overall system that is adopted in banks expect computerized recording
of data
• I adopt a lot of good habit after the internship

57
 • My management become strong & more punctuate in time
• I take a decision very quickly with a great thinking, so that my decision making
skill enhance.
• A big thing that I observe in my personality that is I feel I become professional & I
try to in my normal life to adoption this behavior.

5.4.6.2. Responsibility:
During my internship in MCB, I have taken a lot of
Responsibilities. I like the banking field so I enjoy the work in internship. At all time
working in all departments, my hardly try that my supervisor take a lot of work from me.
These responsibilities enhance my abilities & skills. I enjoy the burden of banking work in
all departments. I work with each department like general banking departments, clearing
& remittances department, cash department etc. I understood the filling work in the bank
e.g. filling of online slips, deposit slips, debit slips, credit slips & recording of different
activities in the bank in register.
During my internship I take a lot of responsibilities. These responsibilities given below in
sequence:

• Filling of different kinds of cheques

• Filling of online application that is also called the funds transferring
application
• Filling of deposit slips
• I take a responsibility of record of inward & outward clearance in the
register on the daily basis & I trained very well in this working
• I take a responsibility to calculate the bills amount from the bills in the days
of bills paid by people & make a scroll sheet of bills regularly.
• Sometimes, in some cases I prepaid the debit slips & credit slips.
• Recording of cheque book issuing & ATM issuing in the register.

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 • I take a responsibility & my supervisor of general banking department
assigned a duty that when a customer is coming to open an account than I
fulfill the form of newly opened account.
• I also work as a telephone operator in the MCB bank. I call the customer to
take a cheque books. I also attend the calls of the customers & listen the
complaints of the customer

In working in all departments of bank, my knowledge

enhances & I learn a lot of new things in the bank. I get the experience working with bank.
I understand a lot of rules & regulation about the bank, their working, regarding customer
behavior, staff relationship & many other things. In working different department than I
know that each person has a role in making the organization successful. Fulfillment of
responsibilities by each staff member in time makes an organization more prosperous.
5.4.6.3. Influence on my future plan:
Internship where provide me a lot of skills &
enhance my personality & also give a right way to handle the business activities there it is
provide me a lot of guideless about my Future Career. I personally like the banking field
& have a dream to join the banking field after my completion of study.
To make plan about your future is hard nut to crack. many people usually fail to choose
their right career and it caused for failure of their life. Before my internship, there is not a
clear theme in my mind about my practical field only like the banking sector. But by doing
the internship in the MCB bank, my ambiguous image becomes clear in my mind. My
expectation about this field frequently right so internship in MCB bank strongly influence
my future career plan.
5.4.6.4. Practical field & my class room knowledge:
There are a lot of task & activities
that I performed in the MCB bank. Before internship I know the maximum business rules
& many accounting standard which is adopted in working of business recording. I
correlated my knowledge many times during my internship. I agree a lot of this thing that
the things which I learn in my academic center correlated with the practical field but it is a

59
single aspect that I thought our knowledge to the practical field is the adoption of this
knowledge in to the practical field because we have no experience before. Through
internship it was came in to my sense that which we learnt in our study career is no idle /it
matters lot in field work to show competency

6. Conclusion:
The banking system of Pakistan is not well established as compare to the
banking sector in the world but its play a vital role in the economic growth of the country.
Banks run the financial part of the country to make the country more efficient & productive.
In a short way, we can say that the banks are the back bone of any country for its
development.
The banking sector overall work on the same nature of the task like focus
the customer & understand the need & want of the customer, improve the management
policies of the banking sector, develop the organized structure for the banking sector.

60
Almost all the banks in the country work for the single task for the development of the
country.

6.1. Key conclusion derived from internship:

In a nut shell, internship provide a lot of
skills, abilities & many practical field knowledge, to do internship in the MCB, it’s not
only fulfill my internship requirement of university but in real, I enjoyed a lot this
experience of internship,
I derived a lot of experience from the internship experience. I read
the whole history of the MCB; I gained a lot of knowledge about this organization. In
future I also suggest to our friends to do internship in the MCB, this bank provide a
completely internship environment to his internee.

6.2. General observation about sector:

During my training period I have observed a lot of things. every organization has some
strong points as well as weak points/ during my training tenure have observed that over all
MCB is a well known and well establish organization /and it have achieved a lot but I also
observe some point which are necessary for it to cope in order get more pronunciation and
success, here I am trying to mention here some points which are observed by me during
internship tenure/
6.3. SWOT:
6.3.1. Strength:
• Only the one bank that is register in the London stock exchange.
• A large number of MCB branches in the country
• Capture a huge market in the banking sector & strong presence in the market.
• Provide a lot of product & services to the customers.
• MCB also established their business abroad which help to generate the foreign
exchange.

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• MCB use the modern technology in the banking field.
• Provide a twenty four hour services to the customers.
• MCB win the “ CSR Business Exclusive Award” in 2012
• MCB is only the bank who wins 8 Euro Money Awards & 5 Asia Money Award.
MCB also become the strongest bank of Pakistan in 2010.
• MCB have a skilled & experience management & staff.
• MCB provide efficient IT environment & online banking to customers.
• MCB is in the Top 3 commercial banks in Pakistan.
• MCB performance increase day by day.
• MCB provide the social culture to the customers in all branches.
• MCB focus on the customer services & tried to provide new products & services
to customers.
• MCB create/ develop a strong relationship with customers.
• MCB utilize his resources in an effective way.
• MCB has a largest ATM system in all over Pakistan.

6.3.2. Weakness:
• Satisfaction level of MCB employees not according to his own wish.
• Favoritism/ Biasness happen at different stages in bank
• Advertisement not effective so that customers not known MCB products.
• There is no equal importance among the employees.
• There is a difference between the good worth customer & lower worth customers
in shape of account.
• Centralization structure used in MCB so that’s why many decision is not goes in
the favor of organization.
• The employees not loyal & honest with organization because management not
fulfills the basic demands of employees.

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• The employees not promoted on upper level on the base of performance but on the
base of seniority.
• Behavior of the higher management is not pleasant with lower level of employees.
• MCB not involve the competent staff in the audit of the firm.

6.3.3. Opportunity:
• MCB should to expand his system with in the country & outside the country as well.
• MCB should provide the espousers to the customers which other banks not provide.
• Bank should establish the Islamic banking at possible levels.
• Increase the number of branches of general banking as well as Islamic banking.
• MCB cover many areas outside the country, should expand their foreign banking
at maximum level.
• MCB introduce a lot of new products for the customers like car financing & many
other things. It helps to increase the market share.
• MCB should control the internal environment in the organization which increases
the profitability of the bank.
• MCB should provide a dynamic environment to the employees which help to
increase the growth.
• Although MCB provide a lot of products & effective services to the existing
customers. MCB should plan to facilitate the new customers which become the
cause of growth for MCB.
• As MCB earn a lot as compare to previous years. MCB should provide facilities to
the employees so in this way they become so loyal about bank & productivity of
the bank increase.
• MCB have a skill & experience staff. MCB should to train according to the
international standard so the risk of fraud to be eliminated completely.
• MCB should open the branches in the rural area so the people of rural area aware
from bank & efficiency & productivity of the bank increase.

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• The bank earns a lot of profit by given the loan to the industrialist & agriculturist.
• MCB has prospect to commence new schemes for deposits because the trend of
saving in Pakistan increase.

6.3.4. Threat:
• Economy of the Pakistan is not strong so it is a great threat for banking sector as
well as MCB.
• In Pakistan, the political condition is not well. It is unstable political environment
in the country which affects the MCB working at any stage.
• There is a perfect competition in the banks in Pakistan.
• Inflation rate high in Pakistan which affects the overall rates of bank.
• In Pakistan, the banks of others countries also work with great capital which is a
biggest threat for banking sector as well as MCB.
• Foreigner banks decrease the market share of the MCB.
• Mergers of organization are also a threat for the MCB.
• MCB run their business in outside the country so it is also a great competition faced
by the MCB in other countries.
• Huge competition in the market exists so Employees not attach with one
organization for a long period of time.
• The cost of running the business in the Pakistan increase gradually so it’s become
so difficult to compete with the financial sector of the country.
• Frequent change in the law & order situation is become a threat for MCB.

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7. RECOMMENDATIONS:

• The employees of MCB not satisfied well so that management adopts different
techniques to motivate employees because their employees are the key factors for
their organization.
• Many people don’t know about the products & services of the bank so that MCB
should advertisement their products & adopt different kinds of marketing
techniques in advertisement of the product & services so that people understood
easily.

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 • I recommend that bank equally treat every customer, give protocol to each customer
equally whether he has a big account in bank or small size account in bank.

• Centralization exists in the MCB bank so it should change the organization

structure from centralization to decentralization.

• There is a lack of organizational loyalty in staff. So management only can handle

by given the incentives to each employee on equal basis.

• Promotional only done on the sonority basis not the brilliancy so that management
should change their theme of promotion strategy.

• Management should to treat with their subordinates very jolly not harshly so that
the employees motivate & productivity & efficiency increase.

8. References:

Electronic / Web Page:

• http://www.sbp.com.pk

• http://www.MCB.com.pk/

• http://www.MCB.com.pk/MCB/about_MCB.asp

• http://www.MCB.com.pk/MCB/corporate_information.asp

• http://www.MCB.com.pk/psc/accounts/basic_account.asp

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Some data is collected from the Annual Reports of MCB:

• MCB annual Report 2014

• MCB Annual Report 2015

• MCB Annual Report 2016

• MCB Annual Report 2017

• MCB Annual Report 2019

• MCB Branch Manual

9. Appendix and supplementary material:

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