MCB BANK Internship Report

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MUSLIM COMMERCIAL BANK LIMITED

INTERNSHIP REPORT ON
MCB BANK LIMITED
GUJRANWALA BRANCH

PROGRAME:

MBA (Finance)

Name of Program Coordinator ……………………..
Signature of Program Coordinator ……………………

Internship Report submitted to the Faculty of Commerce in Partial Fulfillment of the
Requirements for the Degree of Master of Commerce.

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MUSLIM COMMERCIAL BANK LIMITED

DEDICATION
I dedicate my all efforts to my beloved
parents because of their love and
affection which brings me to reach at
this position.

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Preface
With the changing world scenario, the need for effective and efficient managers has increased
manifold. The organizations require managers with analytical and problem solving abilities
enabling them to exploit the opportunities presented. Today, the most important pre-requisite for
managers is to have well-developed communication skills so that they not only are able to
communicate within the organizations but also with the groups outside the organization,
customers, suppliers, government and the community.
The development of these skills not only requires strong theoretical knowledge but also a
practical experience. Although the six week internship program has not fully developed these
abilities but it has at least given me a feel of the market. It has, to some extent, enabled me to
see the relevance and applicability of various tools and theories of management. Moreover, this
training has created an awareness of the various career opportunities available in the market.
Also now in this age where there is huge competition among MBA students. Because most of
students prefer MBA.
This report thus represents in a handy and systematic manner, the details of my internship
program at MCB. I have tried to write this report using the most accurate and up-to–date
information and hope that it will give the reader a brief and meaningful idea about the
organization. And I hope my teachers appreciate it also.

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MUSLIM COMMERCIAL BANK LIMITED

ACHKNOWLEDGEMENT
First I want to thank Allah who blessed me with skills knowledge.
And give me strength to do this task.

Then I would like to thanks my parents whose efforts brings me
more strong. I extent my graduation cause of my parents and
teachers who help me to accomplish my task.

I am also thankful to members of Muslim commercial bank to give
me an opportunity to enhance my practical skills.

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Table of contents
1. Title page
 Dedication
 Preface
2. Acknowledgements
3. Table of contents
4. A Brief executive Summary of the Internship
 Main Body of Report
Part-1:
5.1 INTRODUCTION
5.2 OVERVIEW OF THE ORGANIZATION:
5.2.1 Brief history
5.2.2 Nature of the organization
5.2.3 Business volume, reward honors & success
stories etc.
5.2.4 Product/service line
5.2.5 PESTL analysis
5.2.6 Contribution of MCB towards economic development
5.3 ORGANIZATIONAL STRUCTURE:

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MUSLIM COMMERCIAL BANK LIMITED
5.3.1Organizational Hierarchy chart
5.3.2 Number of employees
5.3.3 Main offices
5.3.4 Introduction of all departments

Part-2:
5.4 INTERNEE WORK:
5.4.1 Brief Introduction of branch
5.4.2 Details of supervisors
5.4.3 Weekly timetables
5.4.4 Description of Departments (workstation)
5.4.5 Description of activities
5.4.6 Description of Assigned Project
5.4.7 Summary of Learning
5.4.7.1Gained Skills and Qualifications
5.4.7.2 Undertaken Responsibilities
5.4.7.3 Influence of Internship on Future Career
5.4.7.4 Correlation between experience and classroom
Knowledge

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MUSLIM COMMERCIAL BANK LIMITED
6. CONCLUSION OF REPORT:
6.1 Conclusion of internship experience
6.2 Overview of banking sector
6.3 SWOT analysis





Strength
Weakness
Opportunities
Threat

7. Recommendations
8. References
9. Appendix and supplementary material

Executive Summary:
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Internship is a compulsory subject in 3 rd semester of Master in Business Administration. This
requires the students to complete the 6 week internship after 2 nd semester. I am also the
student of MBA in University of Gujrat. So according to the requirement of UOG I was also
required to undergo the internship program. I had also to submit the internship report, so for
this purpose I selected the Muslim Commercial Bank, Gujranwala branch and completed my
six week internship.
Another purpose of doing internship is that in these days due to limited job opportunities it
has become very difficult for people to start their professional career after completing their
higher education. Only those people are hired who have knowledge along with experience.
So before starting my internship, I decided to work with full devotion in Muslim Commercial
Bank.
MCB Bank limited has a solid foundation of over 50 years in Pakistan, with a network of over
1000 branches over 850 of Automated branches and over 350 MCB ATMs It has eight
Islamic Banking branches. Bank has taken the lead in introducing the innovative
concept of centralizing Trade Services in country by providing centralized foreign
exchange services to branches a view to improve efficiency, expertise and reduce
delivery cost.
During my internship I observed various departments of Muslim Commercial Bank. I worked
on the following things: Deposits, Online Transfer, Filling of Cheque, Opening of accounts,
Pay order, Demand Draft, Remittances, Clearance, Rupee Traveling Cheque etc. I tried to
successfully complete this tasks assigned to me.
I observed a lot of practical things which are daily requirements of banking working system. I
also observed the bank’s behavior with their customers and within branch. I also learned
documentation and record keeping for different activities and processes of bank. I found that
all these things were different from the courses which we studied in our MBA & M.COM.

PART-1

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MUSLIM COMMERCIAL BANK LIMITED
5.1 INTRODUCTION AND OVERVIEW OF
ORGANIZATION:
INTRODUCTION:
Broader view of financial market and business is important when we are the students of
Business Administration. This internship report is an important requirement for getting the
Master of Business Administration Degree from the UVIVERSITY OF GUJRAT. We have to
submit this report in 3rd semester after completing our internship in summer holidays.
As I am also the student of Master in Business Administration in University of GUJRAT so I have
also completed my six weeks internship from Muslim Commercial Bank Limited, Gujranwala
branch During the period of my internship I worked in various departments of the bank. I expect
that this internship report will give you the true picture of my practices which I have done in my
intership.

PURPOSE:
The purpose to do internship report was to explore the learning of my practical field. The main
purposes are:






To know the banking operations.
To improve the report writing skills.
To gain the experience that will be helpful for me in the future.
To apply the best methodology procedure.
To know what sort of changes IT brings in managerial activities.

Scope
This course of internship will help the students to increase their knowledge regarding the
working of banking sector of Pakistan because most of the teachers during their lectures
especially about finance use the examples of bank like Muslim Commercial Bank Limited,
National Bank of Pakistan, United Bank Ltd., Bank Alfalah and many other banks. Therefore, the
students can enhance their understanding about the business world, grasp the functioning of
economy and make the decision about future as an internee in MCB Bank Ltd. The main focus
of my study research was on general banking procedures in one of the branches of MCB. These
operations include remittances, deposits and foreign exchange.

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MUSLIM COMMERCIAL BANK LIMITED
OBJECTIVE OF STUDYING THE ORGANIZATION
OBJECTIVES:
The object of this report shows my effort of learning in organization which are as:


As I am interested in Finance so my purpose of studying the organization is to get
practical experience in financial system and operation of the bank.



I wanted to get the knowledge about the working of the banking sector.



I wanted to improve my own skills in this sector and professional approach.



I was interested to study different departments of the branch like cash, foreign
remittance and online transfer etc.



I wanted to compare the system of account of the bank with the company accounts.



I wanted to study the financial system and achievements of the bank.



I had interest to observe its function, duties, system and their effects on whole
financial system of the country.



My aim was to analyze this bank with reference to other banks listed on stock
exchange.



My objective was also to view the Finance & Accounting System.



I had keen interest to observe the behaviors of people on professional level.



I wanted to make the analysis of banks with reference to the industries.



And to give the recommendation for improvement of the Finance & Accounting
System.



To learn the changing environment.

I hope that this report will be a true representative of my efforts and will satisfy you and help me
in achieving the purpose, which I was meant.

5.2 Overview of the Organization

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MUSLIM COMMERCIAL BANK LIMITED
5.2.1. History of Muslim Commercial Bank limited
MCB Bank Limited also known as Muslim Commercial Bank Limited was incorporated by the
Adam Jee Group on July 9, 1947 in Calcutta in Bengal, under the Indian Companies Act,
VII of 1913 as a limited company. But due to partition of Indo- Pak subcontinent, the
certificate of incorporation was issued on 17 August, 1948 with a delay of almost 1 year.
The

certificate was issued in Chittagong. Then the Head office of the company was

established at Dacca and Mr. G. M. Adam jee became the first chairman. Its authorized
capital was Rs15 million.

In August 23, 1956 through a special Resolution bank

transferred its Head Office from Dhaka to Karachi. The purpose of establishing of bank
was to provide banking facilities to the business community of South Asia.
In January 1974, the government of Zulfiqar Ali Bhutto nationalized the Muslim
Commercial Bank Limited according to the Banks Nationalization Act 1974. In June, 1974
Premier Bank Limited also merged with Muslim Commercial Bank.
In the late 1990’s Pakistani’s government felt need for privatization of state owned banks
and companies. In April 1991, Muslim Commercial Bank was privatized by Nawaz Sharif’s
government. It was 1 st Pakistani bank which was privatized. It was purchased by a leading
industrialist of Pakistan, Nishat Group. Government sold 26% shares of the Bank of which
25% capital was paid up to general public. According to the agreement between the
Pakistani’s government and the Nishat Group additional 24% shares were purchased by
the group making their holding 50%. From June 2008, the Nishat Group owns majority
shares of the Muslim Commercial Bank. Only 25% shares were retained by the
government of Pakistan. Now it is a fully privatized bank.
Mian Muhammad Mansha is the Chairman of Muslim Commercial Bank. He has played
an important role in success of Muslim Commercial Bank. In reward of Mr. Mansha’s
efforts, the Government of Pakistan has given him "Sitara-e-Imtiaz" which is one of the
most prestigious civil awards of the Pakistan.

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MUSLIM COMMERCIAL BANK LIMITED
Muslim Commercial Bank is fourth largest bank of Pakistan having assets of US$ 6.7
billion. It is the largest by market capitalization having a market capitalization of US$ 4.1
billion. The Bank has approximately 4 million customers. It has network of 1026 branches
in all over the country in which eight branches are Islamic banking branches and over 300
are ATMs.
Muslim Commercial Bank has the following subsidiaries:
o

Adam jee Insurance Company.

o

First Woman Bank Limited

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MUSLIM COMMERCIAL BANK LIMITED

Vision Statement
“To be leading financial services provider, partnering with our customers for a more prosperous
future”.

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MUSLIM COMMERCIAL BANK LIMITED

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”.

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MUSLIM COMMERCIAL BANK LIMITED

5.2.2. Nature of Muslim Commercial Bank Limited
Muslim Commercial Bank Limited is one of the fourth largest banks of Pakistan with a
deposit

of

Rs.368

Billion and

its total assets are more than Rs.500 Billion. It was

Incorporated in 1947 and it soon earned the reputation of a solid and conservative financial
institution. In 1974, Muslim Commercial Bank was also nationalized along with all other private
banks. The Bank has approximately 4 million customers, a nationwide distribution network of
more

than

1000

branches

and

over

450

ATMs

in

the

market.

During the last fifteen years, the Bank has grown rapidly through improving service quality,
investment in technology and people, utilizing its extensive branch network, and developing a
large and stable deposit base.
Now it is a public limited corporation. It provides financial services to its customers i.e. deposits,
loan, online transfer, foreign remittances, currency exchange, leasing of cars, collection of bills,
dividends and interest, ATMs, debit and credit cards etc.

System:
Since October 24, 2002, Muslim Commercial Bank has been using System Access “SYMBOL”
version 8 to run its business operations. Muslim Commercial Bank is running “SYMBOLS” as
eFinance modules to deliver personalized services to its customers on multiple delivery
channels. While SYMBOLS Enterprise Operations Center is serving as it’s “core banking
transaction processing engine”.
By implementing “SYMBOLS”, the aim of Muslim Commercial Bank is to raise the quality of its
customer service and utilize its time to offer new product in the market for its three core banking

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MUSLIM COMMERCIAL BANK LIMITED
businesses “Corporate banking, Commercial banking and Consumer Banking”. By adopting the
Java-based technology provides an additional advantage for easy integration of legacy systems.
“SYMBOLS” application architecture is based upon the customer relationship management
foundation that facilitates customer knowledge, interaction, relationship development and better
management of risk for the customer. System Access is also providing implementation, training
and support to the employees of Muslim Commercial Bank.

Functions of Muslim Commercial Bank:
Basically two types of functions are performed by the Muslim Commercial Bank. These
functions are as follows
Principle Functions
Auxiliary Functions

1. Principle Functions:
Principles functions are the core functions are the core functions of MCB Bank. These functions
are the lifeblood of the MCB Bank. These functions are:
a. Accepting the deposits
b. Financing

a. Deposits
There are two types of deposits in MCB Bank. These are as follows:

1. Demand Deposits

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MUSLIM COMMERCIAL BANK LIMITED
Demand deposits have no any legal restriction on drawing of deposited amount. The cash is
readily available on demand without any condition. Demand deposits are further divided into
categories.

 Current deposits
Current deposits are non- interest bearing deposits. These deposits earn the most of the
bank income because does not pay any interest on them.

 Saving deposits
These are the interest bearing deposits. There is no any legal restriction on it. It is mostly
preferred by saving and salaried class.

2. Time deposits:
Time deposits are for specified period of time. Amount can not be easily

withdrawn on

demand. If the amount is withdrawn before time, person has to pay certain penalty. Time
deposits are further divided into categories as

 Notice time deposits
These deposits can not be withdrawn before time without any notice.

 Fixed Term Deposits
Amount deposited in financial institution for a fixed period of time are called fixed term deposits.
These are for short period of time ranging from a month to few years.

b. Financing

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MUSLIM COMMERCIAL BANK LIMITED
The second core function of Muslim Commercial Bank is to provide finances

to the individual

especially to the businessmen against securities at fixed rate of interest. Like different types of
accounts for accepting deposits, Muslim Commercial Bank also provides loans to its customers
in the different types of accounts. These are

1. Demand Finances:
Demand finances are given on demand. It is a single transaction and can be for long, medium
and short period of time. Interest is also charged on it. The amount can only be withdrawn once
at the time of reimbursement.

2. Running Finance
It is a short term loan up to one year. Amount can be withdrawn and deposited at any time. As
the name shows it is basically for running day to day business activities. This type of loan is
given to the businessman who has strong relationship with the bank.

3. Cash Finance
It is for a limited period of time. It is provided to the businessman to complete the working
process.

4. Fixed Assets Financing
This type of finance is advanced to the business for the purchase of fixed asset. This asset is
considered as security.

5. Overdraft
This type of loan is advanced to the businessman who has very healthy position. He is allowed
to draw up to the limit if he has no balance in his account and the interest is charged on daily
basis.

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MUSLIM COMMERCIAL BANK LIMITED
2. Auxiliary Functions:
The functions that have secondary position in the bank are called auxiliary functions. Bank
demands extra charges for performing these functions. These functions are as fellows

 Collection of cheques
Muslim Commercial Bank makes collection and payments of cheques, promissory notes and
bills on behalf of customers. Muslim Commercial Bank charges commission for providing these
services.

 Locker
Muslim Commercial Bank also provides locker facility to its customer where they can keep their
precious ornaments and documents.

 Collection of Dividends
Muslim Commercial Bank acts as an agent for acts customers in collection of dividends or
interest earned on stocks and shares held by them. Customers only inform the issuer of
securities that interest should be credited to their accounts in the bank.

 Purchase and sale of securities
Customers also give authority to the bank for purchase and sale of securities on their behalf.

 Transfer of Funds
Muslim Commercial Bank also transfers funds of the customers to its other branches in the
same city or any other cities. If the transfer is within one station then the bank does not charge
any commission.

 Issue of Traveler Cheques

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MUSLIM COMMERCIAL BANK LIMITED
Muslim Commercial Bank also issues Rupee Traveler Cheques for the convenience of travelers
and in reward of performing these services it charges commission at the low rate.

 Discounting Bill of Exchange
Muslim Commercial Bank also utilizes its surplus funds in another important way by discounting
bill of exchange at market worth. The bank pays an amount to the holder of bill equal to their
face value after deduction of interest at the market rate.

 Acts as a referee
Muslim Commercial Bank also provides another useful service to its customers by acting as a
referee. The information is supplied in secrecy. Its basics are on the respectability and financial
standing of credit.

5.2.3. Business Volume of Muslim Commercial Bank
As the Muslim Commercial Bank limited is the fourth largest bank of the Pakistan. It has a solid
foundation of more than 50 years in Pakistan. It has network of over 1000 branches in
which over 850 are Automated Branches, over 350 MCB ATMs in 41 cities nationwide and
more than12 branches are on the MNET ATM Switch. So its profitability is high and it has
large assets.

Rewards and success:

 Best Domestic Bank Award 2000
Muslim Commercial Bank was awarded the “Euromoney Award 2000” for the
"Best Domestic Bank in Pakistan".

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MUSLIM COMMERCIAL BANK LIMITED
 Best Bank in Pakistan Award 2001
In 2001, Muslim Commercial Bank was again awarded the “Euromoney Award 2001” for the
"Best Bank in Pakistan" for the 2nd time.

 Best Bank in Pakistan Award 2003
Due to the quality services, integrity, good customer relationship and meeting the changing
trends Muslim Commercial Bank has again won the “Euromoney Award 2003” for the "Best
Bank in Pakistan" for the 3rd time.
 Best Bank in Pakistan Award 2004
In a continuous winning streak, Muslim Commercial Bank again is proud of winning the
“Euromoney Award 2004” for being the "Best Bank in Pakistan" for the fourth time in the last
five years.
 The Best Domestic Commercial Bank Award 2004
Muslim Commercial Bank has a distinction of winning the esteemed “Asia Money 2004 Award”
for being "The Best Domestic Commercial Bank in Pakistan".
 Best Bank In Pakistan Award 2005
Muslim Commercial Bank has again received the prestigious “Euromoney Award” for the “Best
bank in Pakistan” for its excellence operations. It is honor for the Muslim Commercial Bank that
it has received the “Euromoney Award for Excellence” for the 5th time in the last six years.
 Asia Money Awards 2005
The Muslim Commercial Bank Limited has got distinction that Asia Money once again declared
“Asia Money Award 2005” to the Muslim Commercial Bank as "The Best Domestic Commercial
Bank in Pakistan" for the year 2005.
 Best Bank in Pakistan Award 2006
For his excellence operations, the Muslim Commercial Bank has again received the esteemed
“Euro money Award” for the “Best Bank in Pakistan”. It is the only bank that has received the
Euro money Award for Excellence for the 6th time in the past seven years.

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MUSLIM COMMERCIAL BANK LIMITED

 Euro money Award 2008:
In 2008, Muslim Commercial Bank has been awarded as “Euro money Award 2008” for the
"Best Bank in Asia" for the 7th time. It is pride of the Muslim Commercial Bank that no other bank
in Pakistan has received such honor.

 The Strongest Bank 2010 Award:
In 2010, Muslim Commercial Bank received the “The Strongest Bank 2010 Award” by The Asian
Banker for being Pakistan’s best-performing financial institution.
 The Qatar Financial Centre Asian Banker Leadership Achievement Award 2010:
President and Chief Executive Officer of the Muslim Commercial Bank, Atif Bajwa, has been
awarded “The Qatar Financial Centre Asian Banker Leadership Achievement Award 2010”








Year 2012:
The Asset Triple A Best Domestic Bank - Pakistan
Euro money Best Bank in Pakistan
NFEH CSR Business Excellence Award “Best Media Coverage”
ICAP and ICMAP
2nd Best Corporate Report Award 2011- Banking Sector
World Finance
Best Commercial Bank - Pakistan
Pakistan Centre for Philanthropy
PCP Corporate Philanthropy Award








Year 2011:
CFA Association Pakistan Most Stable Bank of the Year
CFA Association Pakistan Best Bank of the Year
Euro money Best Bank in Pakistan
ICAP / ICMAP
1st - BCR Award 2010 - Banking Sector
SAFA Joint 2nd Runner-up for BCR 2010

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PACRA MAINTAINS ENTITY RATINGS OF MCB BANK LIMITED
The Pakistan Credit Rating Agency (PACRA) has maintained the long-term entity ratings
of Muslim Commercial Bank Limited at “AA+” (Double A Plus) and its short term entity
ratings as “A1+” (A One Plus). These ratings denote a very low expectation of credit risk
because of a very strong capacity for payment of financial commitments at time.

These ratings also reflect the MCB’s strong risk absorption capacity due to sound capital
structure supplemented by consistently robust performance. The bank is in well position
to sustain its competitive edge in the sector owing to its quality management team,
established franchise and extensive outreach equipped with requisite technology
infrastructure. These ratings recognize the

bank’s prudence in aligning its business

strategy with challenging and changing operating environment.

5.2.4. Products and Services of Muslim Commercial Bank
Muslim Commercial Bank Limited provides a variety of products and services to its
customers. The most important are as follow:

Personal Banking
Personal banking provides two services: Deposits Accounts and Loan Products.
1. Deposits Accounts:
 Basic Banking Account
“A simple way to start banking”
It is very simple account to start banking with the Muslim Commercial Bank. It can be
opened with minimum amount of Rs.1000.Amount can be withdrawn twice in a month
without any charge. It does not require maintenance charges.

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MUSLIM COMMERCIAL BANK LIMITED
 Current Account
“Race ahead”
It is a non interest bearing bank account offered by the Muslim Commercial Bank. It
requires low minimum balance to maintain it. It offers unlimited cash deposits and
withdrawal facility without any charges.
 Saving Account
“A habit worth getting into it”
Muslim Commercial Bank’s saving account is an interest bearing account. It requires low
monthly average balance. The bank offers profit after every six months. It provides
unlimited deposits and withdrawal facility.

 Foreign Currency Account
“Your international account, locally”
It provides interest on foreign currency investment either in US Dollar, UK Pound
Sterling or Euro. It provides rate of return at market rate after every six months. It can be
opened with US$ 500.

 Smart Dollar Account
“Makes dollar and sense”
This account offers a useful way to grow US Dollar deposits across USD Current,
Savings and Term Deposit accounts. It offers interest and if balance is above US$ 10000
it also provides incentives.

 Saving 365 Gold
“Higher tiers, higher profit”

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MUSLIM COMMERCIAL BANK LIMITED
Important feature of this account is that “higher the balance, higher the rate”. Profit on
this account is paid every month and is calculated on daily basis. It can be opened
with Rs.500000/-.

 Special Rupee Term
“Better return over time”
This account offers interest to the holder. The customer can open this account for one or
more term according to his needs.

 Business account
“Bring down cost over your way up”
The important feature of this account is “Higher the balance, the higher the number of
free transactions”. It provides the free services of Demand Draft, Pay Order, Cancellation
of DD, PO, Cheque book and International ATM Gold Card if the balance is above
Rs,100000/-.

 Savings XTRA
“Enjoy the fruit of higher growth”
This account offers interest semiannually and interest is calculated after every month. It
provides 50% discount on locker. This account offers that if higher the balance then
higher will be the interest rate.

 Current Life Account
“Live for today. Be covered for tomorrow.”
The Muslim Commercial Bank’s Current Life offers the customers free comprehensive life
insurance coverage in a current account. It requires low average balance.

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MUSLIM COMMERCIAL BANK LIMITED
2. Loan Products:
 MCB Business Sarmaya
MCB Business Sarmaya is the best Running Finance facility for residential property which
empowers the customer to manage his business dealings better. It provides facility to
improve business with absolute satisfaction of cash flows.

 Term Loans
Muslim Commercial Bank provides the term loans to individuals or businesses. An
individual can gain and benefit this service through MCB Consumer Banking.

 Working Capital Loans
Based on the customer's needs, Muslim Commercial Bank offers a number of different
working capital finances including Running Finance, Cash Finance, Export Refinance,
Pre-shipment and Post- shipment etc. Tailor- made solutions are developed to analyze
the unique requirements of business.

 MCB Car 4u
Muslim Commercial Bank’s Car 4 U facility offers breeze to lease a new or used car. In it
financing tenure is from 1 to 7 years. It also provides option for local or imported car. It
requires 20% minimum down payment.

 MCB Ghar Pyara Ghar
MCB Pyara Ghar is an ideal Home Finance Scheme from own bank that allows to
purchase, renovate or construct own home as the way people have always wanted.

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MUSLIM COMMERCIAL BANK LIMITED
 MCB Rupee Traveler's Cheques
Muslim Commercial Bank’s Rupee Traveler's Cheques were first introduced in 1993 as
asafe cash for the convenience of customers during traveling. It is very popular and
mostly preferred over cash by customers while traveling.

Corporate Banking
 Cash Management Services
Transaction Banking provides wide range of value added
services to large corporations. Through its vast network of
real-time

online

provides

cash

branches

Muslim

management

Commercial

services,

The basic products offered are as under
o

Collections

o

Payments

o

Channel Financing

o

Local Rupee Drawing Arrangement

o

Home Remittances

 Investment Banking

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Bank

supported

by

real

time

MIS.

MUSLIM COMMERCIAL BANK LIMITED
Investment Banking of Muslim Commercial Bank has played a dynamic role in the local market
of Pakistan through its innovative structured solutions for its customers. It is regarded as one of
the leading investment banking house in the country. Investment banking products and services
are
o

Project and structured Finance

o

Syndicated Loans and debt capital markets

o

Quasi equity and hybrid instruments

o

Equity capital raising

o

Advisory services

o

Facility administration commercial banking

Online Services
 MCB ATM Services
With more than 850 automated branches and 450 MCB ATMs in 41 cities nationwide, Muslim
Commercial Bank is positioned at the fourth largest bank in Pakistan. This success has been
possible because of a never-ending drive to achieve higher levels of excellence in performance.

 MCB Mobile Banking

MCB Mobile Banking is a quick, easy and secure way to conduct financial transactions
as mobile phone balances, transfer money, pay bills and do so much more.
o

View Mini Statements (last 6 transactions)

o

Transfer funds to any Muslim Commercial Bank account

o

Pay Utility Bill

o

Pay MCB Visa Credit Card Bills

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MUSLIM COMMERCIAL BANK LIMITED
o

Recharge MCB Visa Prepaid cards

o

Pay mobile post paid bills

o

“Top up” prepaid mobile phones

o

Make donations to charities

o

Block their ATM Card for the day

 MCB Call Center

MCB

Call

Centre

provide

comfort

to

customers at home or office or wherever they happen to be. It offers basic banking
services for customer’s convenience, eliminating the need for them to make unwanted
trips to customer’s branch.
 MCB Smart Card

Muslim Commercial Bank provides MCB Smart Card as a secure and convenient
instrument of payment with unmatched functionalities. It provides 24-hour direct access
to customer bank account. It not only helps customer to manage his expenses, but also
eliminates undue interest on his day to day credit card transactions.
 MCB Debit Card
Muslim Commercial Bank Limited also provides a secure, convenient and quick
payment facility that enables customer to do purchasing by using debit card.
 MCB Visa Platinum

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MUSLIM COMMERCIAL BANK LIMITED
Muslim Commercial Bank’s Visa

Platinum

Credit

Card

is the most reliable and

competitive Credit Card offering luxurious shopping, dining and traveling opportunities.
It is accepted in about 29 million locations in more than 150 countries around the world
and over 30,000 establishments in Pakistan.
 MCB Visa
MCB Visa is not just another card in wallet. It not only provides the conventional credit
card services in the manner that is superior in comparison, but goes an extra mile.
 MCB Bill Payments
MCB easy bill payment offers convenience to pay utility and mobile phone bills or recharge
prepaid mobile phone accounts anywhere, anytime with security and peace of mind.
It offers 3 convenient options of making bill payments to PTCL, SSGC, SNGPL, KESC,
Mobilink, Supernet, IESCO, HESCO, and Ufone to save precious time by avoiding long
queues. It offers the following features:
o Payment of bills 24 hours a day 7 days a week.
o Make either full or partial payments. Full payment is required for PTCL only.
o Recharge pre-paid account for Ufone, Mobilink and Zong as per their fixed slabs.

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Virtual Banking:
The MCB Virtual Internet Banking offers customers the
convenience to manage and control their banking and finance e.g. when he needs to, where he
needs to. With MCB Virtual Internet Banking customer can access any of the banking services,
24 hours a day, 7 days a week and throughout the year with free of cost
and online.

Islamic Banking
Deposit Schemes
For customers who are looking for a deposit
opportunity where they can grow their funds
and earns Halal returns on it. In Islamic Banking
Muslim Commercial Bank offers the following products:
o

Al-Makhraj Saving Account

o

Al-Makhraj Ianat Account

o

Al-Makhraj Term Deposit

Fund Based Facilities
Ijarah Products

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MCB’s Islamic Ijarah is based on the ‘Ijarah WaIqtina’ concept which means the sale of
the asset to the lessee after the Ijarah is matured. Under this scheme, Muslim
Commercial Bank Limited becomes 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 rent.
Types of Ijarah
o

Car Ijarah

o

Equipment Ijarah

UPCOMMING PRODUCTS:
Diminishing Musharika Housing
Istisna Pre Shipment Export Finance
Islamic Banking Foreign Currency Deposit

5.2.5

PESTL analysis

 Political analysis
Due to political instability, governments of Pakistan are changing rapidly. Every government sets
its own rules, regulation and policies. These can be against or favor of banking sector of
Pakistan.
Pakistan is also becoming a common place for territory acts so now it is one of the most
vulnerable countries in the world. This situation is a threat and is effecting the growth and
working of Muslim Commercial Bank in Pakistan.

 Economic analysis:
o

Economy of Pakistan is facing financial crisis so some people are not able to repay their
liabilities. Due to financial crisis there are less opportunities of starting any business so
businessmen are not demanding much loan.

o

There is strong black economy in Pakistan.

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o

There is unfair competition in the financial market.

o

Due to inflation money is losing its value. So it is affecting the interest rate.

o

Exchange rate is also decreasing day by day.

o

Recent flood, unemployment, illiteracy and corruption etc. are also hindering its growth.

 Social analysis:
Cultural issues are also affecting the working of Muslim Commercial Bank. People have their
own values, norms and beliefs. Some people do not consider interest according to Islamic laws.
But now Islamic Banking offered by the Muslim Commercial Bank Limited is attracting them.

 Technological analysis:
Technology is rapidly changing. There is competition among banking sector to introduce new
technology in their products and services in order to attract new customers. So according to the
requirements of market Muslim Commercial Bank has centralized its system. Most of the
branches of the Muslim Commercial Bank are online. It is also introducing a wide network of
ATMs in all over the Pakistan.

5.2.6

Contribution

of

MCB

Bank

towards

economic

development:
Muslim Commercial Bank is Pakistan’s fourth largest bank by assets having assets of
US$ 5.9 billion, and the largest by market capital with market capital of US$ 1.8 billion.
In 2009, MCB reported a profit after tax of PKR 15.5 billion.
During the last fifteen years, the Muslim Commercial Bank has concentrated on growth
by improving service quality, investing in technology and people, utilizing its extensive
branch network, developing a large and stable deposit base, and managing its nonperforming loans through improved risk management processes.
The main strategy of Muslim Commercial Bank is to provide financial solutions to its
customer. So it has developed separate business groups to ensure a more focused
approach in satisfying the diversified customer segments. The Bank has also
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established an Islamic Banking unit to offer products and services according to
Shariah. So it has set up Islamic banking branches in six cities. The future plan of MCB
Bank is to further increase the capacity of Islamic Financial Systems and to bring
Shariah compliant network parallel to current retail network of traditional banking. So
MCB is providing equal services to all people in the country.
Muslim Commercial Bank has business establishments in SriLanka and Bahrain
including newly established Rep.Office in Dubai, UAE to enhance the money market.
Thus it is strengthening Pakistan’s economy. The Bank has also formed a private
company in Hong Kong which is fully owned subsidiary of MCB in partnership with
Standard Chartered Bank for handling trade transactions of selected countries in the
Asia-Pacific region. Muslim Commercial Bank is also setting performance standards for
the support of its customers and leadership in banking technology.
It is also important to look at the recently held bidding for the sale of United Bank
Limited (UBL). Muslim Commercial Bank has submitted the highest bid. MCB has
already attained the status of the largest private sector bank in Pakistan and now it is
trying to make its presence felt in the global market. MCB’s shares are traded on three
stock exchanges of Pakistan. Its global depositary receipts are listed in the London
Stock Exchange. All these achievements show that Muslim Commercial Bank has
played an important role in development of the Pakistan. So the Advisory Council of the
Asian Banker Leadership Achievement Awards Program appreciated the role played by
Muslim Commercial Bank in developing systems and in bringing innovations through
the launch of new products and services.

5.3 ORGANIZATIONAL STRUCTURE of MCB Bank:
5.3.1 Organizational Hierarchy Chart:

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5.3.2 Numbers of employees of MCB Bank:
Numbers of employees in Muslim Commercial Bank Limited are approximately 31500.

5.3.3 Main Offices:
Main offices of Muslim Commercial Bank are

 Registered Office
It is the registered office and head office of Muslim Commercial Bank. It is located in Islamabad.

 Principal Office
Principle office of Muslim Commercial Bank was first located in Karachi. Now it has transferred
in Lahore.

 Registrar's and Share Registration Office
Share registration office of Muslim Commercial Bank is in Karachi.

 Provincial Head Quarters
Provincial headquarters of Muslim Commercial Bank are in every province. These are as
Punjab Office, Sindh Office, Baluchistan Office and NWFP Office.

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Head
Quarter
Karachi

Provision
al Head
quarter

Punjab
offices

Baluchist
an Office

Circle
Offices

NWFP
Office

Branch
Offices

Sindh
Office

5.3.4 Introduction of Departments of MCB Bank:
At the top level management, following are the main department of Muslim Commercial Bank
Limited.

1. Audit department
Audit department of Muslim commercial bank limited consists of 5 members and one chairman.
Mr Tariq Rafi is the chairman of this committee. The meetings of audit committee are held once
a quarter before the approval of interim and final result of the bank. The board of directors has
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set up an effective internal audit functions. The personnels of audit department are highly
qualified and are involved in internal audit on full time basis. This department has given a
satisfactory rating under the Quality Control Review Program of The Institute of Chartered
Accountants of Pakistan.

2. Human Resource Management Department
Human Resource Department (HRD) facilitates and partners the MCB Staff in the
implementation of the planned strategy by adopting a ‘Can Do Attitude’. Mian Muhammad
Mansha is the chairman of this department. The HRD contributes to the business strategy of
MCB Bank through:


Competency based Human Resource systems



Its effective policy and procedures



Developing the Capabilities



Performance of Management



Open communication



Giving the rewards and recognition



Employee’s satisfaction



Diversity among employees



Compliance

3. Islamic banking
Islamic banking department was formed on 1 st January, 2003. This department has sufficient
expertise, necessary infrastructure, information technology and manpower to run Islamic

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banking operations. It offers Islamic banking products like Al-Makhraj Saving Account, AlMakhraj Ianat Account, Al-Makhraj Term Deposit etc. This committee consists of senior
executives from various important departments like credit and risk management, finance,
treasury, operation etc. The objective of this department is to attract the customers who do not
believe on the interest accounts.

4. Risk Management & Portfolio Review Department
Mr. Shehzad Saleem is the chairman of this department. System of this
department identifies, measures, monitors and manages the risk effectively.
Risk can be credit risk, operational and market. Following are its functions:
o Identify, measure, monitor and mitigate the risk.
o Ensuring that business conducted is consistent with risk appetite of bank
o Formulate and implement risk policies and procedure.
o To conduct periodic review to ensure that risk is within acceptable
parameter

5.Physical Planning, IT System & Contingency Arrangements
Department:
Mr Sarmad Amin is the chairman of this department. It includes 5 members. This department is
introduced new information technology. System of Muslim Commercial Bank has become
centralized. Bank is using SYMBOL system software. Now this department is converting its
branches into online. It is offering products like MCB ATM Services, MCB Mobile Banking, MCB
Call Center, MCB Smart Card, MCB Bill Payments etc.

6.Business Strategy & Development Department:
Mian Muhammad Mansha is the chairman of this department. This department includes 7
members. This department reviews existing policies and practices in effect

at Muslim

Commercial Bank Ltd. It offers proposal for alterations to the existing policies in light of the

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previous findings and getting approval of MCB’s board of directors. Departments of branches
will be discussed in the Part 2.

Part-2
5.4 Internee Work
5.4.1 Brief Introduction of Branch
I did my internship in Muslim Commercial Bank Limited Qila didar singh branch, Gujranwala.
And some important information about my branch which I observed, are as below.
Employees of the branch
There are 11 employees in the branch in which there are two security guards, one sweeper, one
tea boy and remaining are the members of management.

Manager of the branch

Mr. Ashiq Ali

Operation Manager

Mr. Arslan

Chief Cashier

Mr. Shah

Cashier

Mr. Frasat

Foreign Remittance Officer

Miss Nazia

Customer Service Officer

Miss Afsheen Arif

Cheque clearing Officer

Mr. Raja

Credit and Advance Officer

Mr. Faizan

There are other some other employees in the branch.
Code of the branch is (1474)

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Starting Date of Internship
July, 10, 2013
Ending Date of Internship
August, 19, 2013.

5.4.2 Detail of Supervisor
During my internship In Muslim Commercial Bank Railway Road branch, my supervisor was
Miss Afsheen Arif. She is a Customer Service Officer in the branch. She is very punctual and
responsible. Her behavior with internees was friendly. She was more cooperative with the
internees than other employees of the bank. She always completes her work in time without
any delay and mistake. Being a customer service officer, she treats the customer politely to
even those customers who talk in ill manner and show a very rude behavior. I am very
impressed of her way of working. She taught me workplace ethics and how to behave
professionally.
Her jobs are
o

To open account of customer. i.e. current account, PLS saving account, foreign
exchange account, special rupee term account etc.

o

Help the customers in filling cheques, deposit slips, application for ATM Card,
cancellation of ATM card, Requisites for issuance of new cheque book, online transfer
form, demand draft, pay order, any other form which is required by the customer to solve
his problem.

o

Telling the customers about their bank account balance.

o

Issue of bank statement at the requirement of customer which may be annually, semi
annually, monthly etc.

o

providing any other information which is required by the customer.

Here most of the work is manual documentation.

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5.4.3 Weekly Timetable
In my branch of Muslim Commercial Bank Limited working hours for internees were from 9:00
a.m. to 2:00 p.m. in all working days of the week except Friday. On Friday working hours of
internee were from 9:00 a.m. to 2:00 p.m. in all working days of the week except Friday. On
Friday working hours of internees were from 9:00 a.m. to 12:30 p.m.
During internship period, my weekly timetable was as follows:

Week
1st week

Date
10th July to 16th July

Working Activity
Account Opening, types of

2 week
3rd week

16 July to 22 July
22 July to 29 July

account
Types of Account
Deposit,
Transfer

4th week
5th week
6th week

29 July to 5th Aug
5th Aug to 12 Aug
12 Aug to 19 Aug

Withdrawals
Remittance Department
Clearing Department
Credit Department

nd

th

5.4.4 Introduction of departments of Branch
In Railway Road branch of Muslim Commercial Bank, there are following departments.
1. General Banking Department
2. Deposits Department
3. Cash department
4. Foreign Exchange Department
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5. Advances and Credit Department

1. General Banking Department
General banking department deals with following services.
a. RE MI TTAN C E
In remittance funds can be transferred in other branches of Muslim Commercial Bank or
in other banks. Main functions of remittance are payments of fees of different
organizations, fulfillment of tenders and collection of funds. Remittances are the
maximum part of general banking department. General banking department issues the
following remittances.
o

Pay Order

o

Demand Draft

o

Mail Transfer

o

Telegraphic Transfer

o

Payment of Pay Order and Demand Draft

o

Cancellation of Pay Order and Demand Draft

o

Vouchers

b. Inward Clearing
It depends upon those cheques that are cleared within branch and with in the city. As the
concerned branch receives any type of clearing cheque first of all its physical checking is taken
place. Clearing procedure requires two days margin. These Cheques have their vouchers. The
amount of the Cheques and voucher
should be identical. Then these Cheques are stamped and noted on receiving and also feed in
the computerized system.
c. Outward Clearing

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It depends upon those cheques that are cleared out side the city. For outward
clearing cheques are sent to the branch in which drawer has his account.
d. Issuance of cheque Book
Any person who has opened the account can credit his account and for this purpose a
Cheques book is issued so that he can be able to credit the needed amount whenever he
needs.

e. Issuance of ATM Cards
Head office of Muslim Commercial Bank Limited issues ATM (Auto Teller Machine) cards
with their PIN (Personal Identification Number) codes. So when the customer demands
for his ATM card then the branch in which customer has his account issues to him. Then it
is activated by the number provided on the card.
f. Cancellation of ATM Card
Bank can also cancel the ATM Card. Cancellation is necessary in the following cases:
o

If card is folded, damaged or stolen.

o

PIN code is missed or forgotten by customer.

o

Card is captured by the machine and expired.

o

Or If it is requested by the customer.

2. Deposits department
Muslim Commercial Bank deals in money. Deposits department of Muslim Commercial Bank
borrows money from one person and advances department lends it to another. The difference
between the rate of borrowing and lending is their profit. The deposits are liability of the bank.
Muslim Commercial Bank offers two types of deposits

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1) Time deposits
2) Demand deposits
The MCB Bank has different kinds of deposit schemes in order to attract deposits. These
schemes are the mixture of the above mentioned two types of deposits with an addition of
different services & requirements. Muslim Commercial Bank has a large variety of deposit
schemes and some of them are as follows:
o

Current account

o

PLS Saving account

o

Basic Bank account

o

Foreign Currency account

o

Smart Dollar account

o

Saving 365 Gold account

o

Special Rupee Term account

o

Business account

o

Saving XTRA account

o

Current Life account

3. Cash Department
Cash department cashes the cheques, receives the amount of deposits and collects the utility
bills, fees of any organization etc.
Following books are maintained by the Cash Department.
1. Receiving Cash Book
2. Paying Cash Book
3. Token Book
4. Scroll Book
5. Cash Balance Book

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At the end of the day the consolidated figures of receipt and payment of cash are entered in the
cash

balance

book

and

closing

balance

of

cash

is

drawn.

This is the most important department because cash is a liquid asset and mostly frauds are
made in this department. So extra care is taken in this department and nobody is allowed to
enter or leave this area freely. The cash area is grilled and its door is under supervision of the
head of that department. All the books which are maintained in the cash department are
checked

4.

by

an

officer.

Foreign Exchange Department

Foreign exchange department deals with foreign exchange account, import and export
transactions, Letter of Credit, foreign remittances etc . Foreign exchange department issues
Letter of Credit to the importer in order to facilitate it in its business transactions outside
the country. It also helps exporter in collection of receipts.
a. LC’s establishment
Any company can provide its documents including bill of lading, short shipment notice in
case of short shipment, packaging list etc. The information provided from the documents
are recorded in the LC establishment section of foreign exchange department. So it helps
in import of goods.
b. Reti r em ent of LC
This department helps in collection of receipts. When the transactions is completed then
documents are sent to the home bank for the payment of the LC. These transactions are
recorded in the payment section.
c. Foreign Currency Deposits
The Foreign Currency Deposit are related to the foreign currency accounts, cash deposit
or credit and foreign remittances.
d. Foreign Remittance

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This

department

also

receives

foreign

remittances

for

individuals

or

businessmen. The PIN Code is given by the respective company through which it
is sent.

5. Advance and credit department
This department deals with the approval of different kinds of loans for different individuals
and business. The loans are advanced against some securities such as bonds, properties
and any other type of asset which is equally valuable or more than the asset. Every
branch has its own limit, if the amount of loans is with in the limit of that specified branch
then it is being approved by the branch but if the amount of loan is more than limit then it
is necessary to get its approval by the head office. Credit can be given by two modes.
A Funding Facility
1) Running finance
2) Cash finance
3) Demand finance
4) Payment against documents
5) Finance against imported merchandise
6) Finance against trust receipt
7) Export finance
8) Foreign bill purchased
9) Others
Non Funding Facility
1) Letter of credit
2) Letter of guarantees
3) Bid bonds
4) Performance bonds
5) Other facilities

5.4.5. Activities performed
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During my internship in the Muslim Commercial Bank Ltd, Railway Road branch I did not much
enjoyed working with the staff due to lack of cooperation of staff. I wanted to get the experience
of operations of banks in a limited time of 6 weeks. So I would be able to widen my vision and
enhance my knowledge about banking sector and its working. Although it was almost impossible
to work in all the departments of the branch within that limited time but on my request, my
supervisor, Miss Afsheen Arif, provided me the opportunity to work in the different departments
for the sake of practical knowledge. I feel highly indebted to work in the branch because I learnt
a lot in that branch.
During my internship training in the Muslim Commercial Bank as I have already mentioned that I
have worked in different departments. I spent a lot of time in general banking department and a
very little time in foreign exchange department and for clearing. I worked on different seats and
at those seats following functions are performed.

 Opening a new account
During the span of my internship in MCB Bank I learned and observed about the opening of an
account. Basically I think that the opening of an account is the establishment of a contractual
relationship between the bank and its customer. By opening an account in the bank such person
becomes the customer of a bank. Further I am going to note down the basic requirements and
steps involved in the opening of an account.
Investigation:
Before opening an account in Muslim Commercial Bank limited like the other banks of Pakistan
also ascertain whether the person who is going to open the account is a desirable customer or
not. For this purpose Muslim Commercial Bank determines the prospective customer’s integrity,
respectability, occupation and the nature of business by the introductory references given at the
time of account opening. After the banking system of MCB has become centralized, bank also
gets verisys from NADRA for verification either person is Pakistani and is not objected by
Pakistani’s government. Negligence in this formal preliminary investigation may cause in serious
consequences not only for the bank directly but also for other bankers and the general public
who

may

be

affected

by

it

indirectly.

In order to further strengthen and streamline the account opening process, the Federal
Ombudsman of Pakistan, widening his rules on complaint No. II/31/5186 has directed the banks
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to retain with the account opening form a Photostat copy of National Identity Cards of the
person desiring to open an account as well as that of the person who is giving the reference of
that person. According to these directions, the branch manager obtains the original National
Identity Cards along with their Photostat copies and then returns the original card after attesting
the authenticity of the retained copy.
How to open an account
Before opening an account in MCB I observed that the following points must be considered.
i.

Another account holder in the same branch of the bank should properly introduce
the new customer.

ii.

The account holder must sign the account opening form in the presence of bank
officer and the signatures are duly verified by National Identity card.

iii.

Customer has also choice to change his signature from NIC. Signatures are also
obtained on signature specimen card. Customer has to keep the same sign for
withdrawal of money. Otherwise cheque will not be honored.

iv.

A copy of identity Card is required by Bank which is attested by original NIC.

v.

Some other documents must be provided according the requirement of each type
of account. The Bank has the right to refuse to open and account without
assigning any reason.

vi.

Bank also requires verification from NADRA. In case of any objection bank has the
right to refuse to open the account.

vii.

Bank also fills the Know Your Customer form to determine the risk of person.

viii.

Bank also requires the document which describes source of income from money
will be deposited in the account.

ix.

Each account is allotted a distinct number that is to be quoted in all
correspondence with the bank relation to the account.

x.

Minimum amount for opening an account is required according to the nature of
account.

xi.

In case of partnership account, partnership deed must be attached.

xii.

In case of companies, memorandum and article of association, certificate of
incorporation, certificates for commencement of business, list of directors, their

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CNIC, board resolution for opening of account must be obtained from the
customer.
xiii.

Accounts of Trusts, Executors & Administrators can be opened but for it the prior
approval of the Head Office is required.

Procedure for opening an account
According to my practice in MCB, when a person wants to open the account, the bank officer
gives him an application form. All information, which are necessary to be known by the bank,
are the requirements of the application form. Other essential documents which are required by
the banker are attached by the customer the after the sign of branch manager it is sent to the
head office where account opening procedure is completed, account number is assigned and
cheque book is also issued.
Basically following information are required on the account opening Formby the MCB.
o

Title of Account.

o

Full name of applicant.

o

Occupation.

o

Address written on the NIC.

o

Telephone No.

o

Currency of account.

o

Nature of Business.

o

Introducer’s Name, Address & Signatures

o

Special instructions regarding the account.

o

Initial Amount of the Deposit.

o

Signature of the applicant on signature specimen.

 Depositing in the account

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Different customers come in the branch. Some are educated who fill their own deposit slip and
some are illiterate to whom we help to fill the slip. Deposits slip are filled for depositing amount
in the account. Following information are provided on the slip.
o

Branch code

o

Account title

o

Account number

o

Currency i.e. US Dollar, Euro, PKR etc.

o

Type of account e.g. current account, saving account.

o

Total amount which is to be deposited in figures and words.

o

Signature of depositor.

This slip is deposited in the cash department along with the amount, where it is stamped and
transferred into the customer account.

 Online Transfer
MCB Bank has given the facility to the customers to transfer the amount to any person who has
the account in any other branch of the MCB Bank. For this purpose person has to provide the
following information to the customer service officer.
o

Applicant’s name

o

His account number if he has.

o

National Identity Card number

o

Beneficiary’s name

o

Beneficiary’s account number

o

Branch code

o

Total amount in numbers and figures which is to be transferred.

o

Type of currency to be transferred.

o

Purpose of transfer.

o

Signatures of applicant.

If applicant has his account in the branch the CNIC is not required and walk in customer form is
not filled.

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If applicant wants to transfer amount in cash then he submit the form to the cash department
where it is stamped and a copy is given to the applicant for evidence. Then data is transferred to
the system. If applicant wants to transfer through credit then he gets its verification from the
operation manager and submits it to the foreign exchange department.

 Pay Order
A pay order is a written authorization for payment made in a receipt form issued and payable by
the bank. Pay orders are made for the payment of fee, tender or issued for payments of
the dealings. These are necessary for the proof of payments made between the bank
and the customer for the beneficiary. These are noted in printed block letters and serial
numbers are issued from the computerized system.
Form for pay order is filled by the customer service officer and all those information are provided
which are mentioned in the online transfer form. Then it is deposited to the remittance
department.

 Demand Draft
Demand draft is a written order drawn by a branch of a bank upon the branch of same bank or
any other bank to pay certain amount of money to or to the order of specified person. DD is
made for the beneficiary for payments of funds. Thumb expression is not acceptable on DD.
Its application form is also filled by the customer service officer and all those information
are provided which are mentioned in the form. Then it is submitted to the officer who
deals in remittance. The DD application is scrutinized by the counter clerk for the following
points.
o

for the payment of DD there should be branch.

o

full name of payer should be mentioned

o

amount in words and figures must be same

o

application to be signed by the purchaser

He prepares the demand draft and feeds the data in the computer system. A serial
number is issued from the computer system to the demand draft.

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 Issuance of ATM Card
Usually an option is given in the account opening form whether customer wants to get ATM card
or not. Customer can also demand for new ATM card if previous has expired. Head office
issues ATM cards with their PIN (Personal Identification Number) codes. Its issuance
process starts from consultancy of customer with the customer service officer. When the
customer claims for his ATM card it is checked from the list that is also issued by the
head office and the claim is also checked from the list. If the name is found in the list then
the cards are issued by taking a signature and PIN code is given to the customer by
taking signature. Then AT M card is activated by the number provided at or with the
specific card.

 Cancellation of ATM Card
ATM Car d can be cancell ed at t he r equest of cust om er. ATM Cards can be
cancelled due to the following conditions:
o

If folded or damaged

o

Stolen

o

PIN code missed or forgotten

o

Card captured by the machine and expired

o

If requested by the customer.

For cancellation customer can apply to the customer service officer.
Besides the above functions, following activities are also performed.
Accountholder’s annually, semiannually, monthly statement.
Telling the accountholders about their balance
Provision of any information required by the customers.

 Utility Bills Collection
This job is performed in the Cash Department. This department collects the utility bills on behalf
of WAPDA, Sui Gas Companies, and Pakistan Telecommunication Corporation Ltd. Receiving

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officer puts the stamp on the utility bills “Paid” and date of payment. He signs the utility bills.
Then a list is made on the form which is called “Bills scroll form”. One copy of the scroll is kept
by bank for evidence and the original copy with the receipt of the bills is sent to the billing
department of that corporation. The bank charge commission for this job.



Cheque Honoring
In the clearing department where cheques of all banks of the city are collected and the
receipts and payment of cheques drawn on each other are settled. Cheques are
collected for three purposes.

o

For Cash payments

o

For transfer from one account to another account

o

For Clearing

1. Cash Payment Cheques
o

Cash payment cheques are treated in the Cash department. Cheques which are
presented on counter must be checked as
Date.

o

Signature of Drawer through computerized system.

o

Whether Bearer has cancelled or not.
Match the amounts in figure and words both.

When all above conditions are fulfilled then following is made in the token register.
o

Number of token

o

Number of cheque.

o

Amount on cheque

o

And Particulars
Then cheque is stamped with “cash payment” and “ stamp for token”.

2. Cheque for Transfer
Cheques which are presented for transfer are treated by the officer who deals in remittances.
When these cheques are given for transfer then three stamps three stamps are put on it.

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o

Crossing stamp

o

Transfer stamp

o

Bank Manager Stamp

Then this cheque is debited from the drawer account and amount is transferred in the
drawee account through computerized system.
3. Cheque for clearance
Cheques which are presented by any other bank for clearance are treated in the clearing
department. Two types of clearing takes place.
o

Intercity clearing

o

Intracity clearing

When cheques are received for clearing then two stamps are put on each cheque: Crossing
stamp and manager stamp. Then following information are recorded in the clearing register.
o

Name of party.

o

Name of bank on whom it is drawn.

o

Branch name and code.

o

Number of cheque

o

Amount of the cheque.

o

And date.

Then cheques are sent to NIFT after calculating their total amount along with total number of
instruments. A summary is also prepared on a sheet and it is sealed with the cheques.

 Foreign Remittance
Foreign remittances are dealt in the foreign exchange department. Bank has made contract with
some companies which transfer the remittances from one country to another country. Each
company has its own code which may consist of numbers, alphabets and alphanumeric. One
code which is given to one customer is not repeated for another customer. Foreign exchange
department require the CNIC and code. This code is entered into the computer system along
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with the company name. Then print of slip is obtained which is signed by the customer. Copy of
NIC is attached with it and it is attested ant stamped by the officer. This is deposited in the cash
department and money is received by the customer.

5.4.7 Summary
A brief summary of my learning during internship is given below under the following
headings:

5.4.7.1 Skills and Qualifications
This internship period was a training session for me and training always brings learning for the
person. So I also have learned many skills and qualifications during my internship. In the bank
internees were not allowed to on the computer. But I had seen my supervisor working on the
computer. Then I came to know how computer is used in all fields whether it is a banking sector,
business or any hospital. I learned how data is entered and processed in the computer system.
During internship period I have also improved my interpersonal skills. I feel that now I am better
able to communicate with others. It has enhanced my confidence level. Now I can better deal
the customers and coworkers in good manner than before. In addition to the professional level, I
communicate my ideas more clearly with my class-fellows. My listening skill has also improved
because during my internship I had to deal some customers who behaved in ill manner and
talked rudely. In such situation I had to show patience and treat them very politely.
During this period I also learned the workplace ethics and increased my moral values. It has
brought behavioral changes. I learned how to behave professionally.
This training has widened my vision about banking sector. Before training my perception about
bank was that it is a place for accepting deposits and advancing loans in order to earn profit. But
practically I observed the broader services which the banks are providing and facilitating the
individuals specially the businessmen in order to carry on their day to day activities.

5.4.7.2 Undertaken Responsibilities

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During my internship period I helped my supervisor in customer dealing and manual
documentation. As she is the customer service officer, she provides guidance to the customers
within bank premises. She provides all the information which are required by the customers.
She receives the calls of customers, informs them about their bank balance and remittances,
gives solution about their problems and arranges meeting of customers or any party with the
manager or any other employee. So I under took all the responsibilities which assist her in her
job.
I helped the customers in filling of account opening form, application form for ATM Card,
cheques, deposit slips, cheque requisition slip, online transfer form, walk in customer form,
foreign remittances form etc. As the internees were not allowed to work on database so I
performed manual work.

5.4.7.3 Influence on future career plans
As during the internship period in the bank I gained the practical experience first time in any
organization so it has also influenced my future career plans. First of all I have analyzed the job
opportunities in the market. It has created awareness about competition in the labor market.
Because when I went for internship, I saw the number of candidates which were more than the
capacity that the bank had. Some were on reference. I considered the same situation in the
labor market where the supply of labor is more than the demand.
I have also mentally prepared myself for the requirement of market about abilities. I decided
what kinds of skills I need to secure myself in the future market. As all the operations in the bank
and other organizations are performed with the help of computer and information technology so
I think necessary computer literacy and skills should be learned in order to grab the market
opportunities.
Now a days due to high competition job selection process has also become complicated and
difficult. Sometime a person who has specialization in one field has to work for any other job. So
I am trying to adapt myself according to the requirements of market.

5.4.7.4 Correlation of internship activities with classroom knowledge

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The knowledge which we obtain in the classroom is theoretical. Any special practical is not
performed. In the countries like Pakistan we have no access to the financial markets. So when
we did practical, it was different from class work. But the basic concepts are same. The debit
and credit rules and basics which we have studied in the market are applied in all the
organizations. But the difference comes from the practical experience.

6. Conclusion
6.1 Key Conclusion from experience
Internship experience can be learning platform if it is provided properly. Internee can improve
his technical, human and conceptual skills through it. He can analyze the practical implication of
his bookish knowledge. He can learn how to be professional while performing business
activities. It widened the vision of the internee. But for this purpose it is necessary that the
management of the organization should be cooperative. All the candidates who deserve it
should be provided opportunities not only those who are on reference.

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When I was working in the bank, I have observed some positive points and some problems. The
key conclusion is
o

In the bank every one was committed with his work.

o

It is an online branch in which computerized system is used. So it requires less manual
documentation.

o

The branch exists in the location which is easily accessible to every one and near to the
business area.

o

Sometime branch is offline. This irritates the customers.

o

Branch has little space for sitting the customers. Some customers have to stand during
the rush hours.

o

There is office politics in the branch.

o

As the literacy rate in Pakistan is low and mainly the forms are in English. So most of the
customers have to face difficulty while filling the form. They do not understand the terms
and conditions written on the form so they only sign it where the employee of the bank
says.

o

Internees are not cooperated properly. The behavior of employees with internees is
irritating. They are treated as the internees have come only for time passing not for
learning. Some employees also pass the comments on the female internees.

o

Sometime customers also behave with the internees in ill manner.

6.2. Overview of Banking Sector in Pakistan
History of Pakistani banking sector starts since the independence of Pakistan on August 14,
1947. Its journey starts from the establishment of SBP on July 1, 1948 because central bank
provides support and monitor the banking sector.
During 1950s and 1960s banking sector got expansion due to the development projects and an
active participation of private sector. In 1974, banks operating in Pakistan got nationalized and
came under the direct control of the Government of Pakistan. Nationalized banks showed the
poor performance due to Govt. protection and lack of competition in the banking sector. During

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1990’s some banks were again privatized. According to the constitutions of 1965, 1962 and
1973 the Govt. of Pakistan is required to eliminate interest based transactions from the country.
Similarly, in 1992 the Supreme Court of Pakistan also ordered to stop interest based
transactions from the country.
The inception of 21st century came with Islamic banking practices across the country to facilitate
the different segments of the economy. State Bank of Pakistan developed comprehensive
criteria in 2001 and registered Meezan Bank as the first Islamic bank in 2002. Islamic banking
practices in Pakistan proved very successful due to growth and expansion of the banking sector.

The banking sector in Pakistan has been able to withstand discrepancies from weakening
macroeconomic fundamentals since 2007. Although banks are facing credit risk but the overall
sector is in well place to withstand modest shocks because they build their inventory of
government securities. Annual Report on the working of the Bank for the year 2009-10 (FY10)
mentions that due to emerging dynamics in the macro-financial environment, the SBP has
rationalized

the minimum capital requirement and its implementation schedule from commercial banks. This
will provide breathing space to the banking sector in this difficult macroeconomic environment.

6.3 SWOT analysis
Strengths
o

MCB Bank provides a variety of services to its customers.

o

Management of MCB Bank is efficient and experienced.

o

Bank has efficient Information Technology infrastructure.

o

The word “MUSLIM” in brand name of Muslim Commercial Bank creates a very good
image.

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o

MCB Bank is one of the five big domestic commercial banks.

o

It has large network of online branches all over the Pakistan.

o

Culture of MCB Bank is strong and employees are professional and committed to their
work.

o

Bank is continuously focusing on developing a new and innovative product line in order
to attract new customers.

o

MCB Bank creates a strong customer relationship.

o

Asset utilization in MCB Bank is good.

o

It has the largest ATMs network in Pakistan.

o

The launch of MCB Bank switch enables other banks to use MCB’s ATM network.

Weaknesses
o

Job satisfaction of employees is low.

o

Customers are facing a problem of NADRA verification while opening their accounts. It is
a long and time consuming process.

o

Equal protocol is not given to all customers. Customer having account with small amount
is not treated same as other who has high account.

o

Employees are not loyal with the bank.

o

Employees are promoted on seniority basis.

o

Attitude of senior managers at Head Office is not good towards junior staff.

o

Most of employees in MCB are young. So they remain in search of more job
opportunities.

o

There is also office politics among the employees of the bank.

o

Most of the employees are sticking to only one seat. So they become master of one
particular job and loose their grip on other banking operations.

Opportunities
o

Muslim Commercial Bank can create a global market.

o

Islamic Banking in country is increasing its Islamic operation.

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o

Innovative products like car financing, home financing, credit cards etc. can increase its
market share.

o

Introduction of Islamic Banking can attract large number of people.

o

Free staff training can increase employee’s productivity.

o

Profitability of bank can be increased through strong internal control.

o

Opening of new branches in rural areas can increase its branch network and gain more
profit.

o

MCB Bank can earn more profit by giving loan to farmers and industrialists at low rate.

Threats
o

Current economic crisis are effecting the operations of bank.

o

Political instability is decreasing its efficiency.

o

There is strong competition with domestic banks and money market.

o

Foreign banks have high marketing budget than domestic banks.

o

People are loosing their interest on bank.

o

Foreign banks are also in local market that is affecting its market share.

o

Growth in NPL’s industry can hurt MCB Bank also.

o

Merger and acquisition activities in banking sector also badly affecting the MCB Bank.

o

Switching of employees to the jobs which are offering more salaries is increasing
employee’s turnover.

o

Due to inflation, cost of doing business is increasing day by day.

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7. RECOMMENDATIONS
If we study the financial statements of MCB Bank we come to know that it is making progress by
leaps and bounds. During the last few years its profit has grown considerably. It is introducing
new products and services in order to compete in the market. It is converting more of its
branches into online. Deposits of USLIM Commercial Bank are growing day by day. State Bank
of Pakistan is responsible for the productive performance of the Bank. So we can conclude that
its future will be prosperous as present.
Following are my suggestions to improve the efficiency for the development of the economy.
o

As the elite class of Pakistan is spending larger portion of their income is wasting in
purchase of luxuries. The people can be motivated to save money by offering the deposit
through various investment schemes and high interest rate than the competitors offer.

o

High salaries and incentives should be provided in order to maintain confidence and
loyalty of the employees.

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o

Employees should not stick to one job only. They should have regular job experience on
all out look towards banking.

o

Refresher courses for the staff are important to improve the productivity of employees
specially the foreign experts. All the employees should have these courses according to
their requirements.

o

Every year some employees should be sent for training to developed countries and
employees from there should be brought here.

o

Reading material like reports issued by SBP, Stock Exchanges or any other regulatory
body should be provided in order to educate the employees with the advance studies in
their field.

o

Seminars and lecture about banking sectors should be arranged and employees should
be provided the opportunities to attend and participate in them.

o

All customers, whether they have account with small balance or with large balance,
should be treated equally.

o

Recruitments should be strictly on merit basis not on reference and induction should be
after proper and extensive training of new employees.

o

More foreign branches should be opened with new technology and heavy capital in order
to capture the international market and to earn international repute for the banking sector
and economy of Pakistan.

o

Workplace environment, equipments, furniture and staff dressing should be according to
the modern banking style.

o

Office politics should be eliminated.

o

Bank should adopt the global organizational banking structure in order to meet the
international standards of banking sector.

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REFERENCE:
 Quresh, A. H., Hussain, Z., & Rehman, K. U. (n.d.). A Comparison between Islamic
Banking and Conventional Banking Sector in Pakistan. Retrieved from
http://ifrnd.org/IMBR/Vol%204/4(4)%20Apr%202012/6.pdf
 Sharmin, K. (2012). A CORELATIONAL STUDY ON AUTOMATED SERVICE
QUALITY AND IT’S RELATIONSHIP BETWEEN CLIENT SATISFACTION AND
GENERAL BANKING IN CONTEXT OF BANK ASIA LIMITED. Retrieved from

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http://dir.iub.edu.bd:8081/handle/123456789/124
 Sneath, W., & Pierce, A. (n.d.). Faculty & Staff Undergraduate Internship Guidebook.
Policy, 14, 15.
 Usman, M. (n.d.). The Effect of Ownership on Organizational Performance. Retrieved
from
http://btu.se/fou/cuppsats.nsf/all/286b1e07bd882742c12577a400664aa5/$file/Final_Thes
is_Muhammad_Usman.doc
 Ijaz, D., Naseem, M. A., & Iqbal, J. (2012). IMPACT OF PRIVATIZATION ON NONPERFORMING LOANS OF CONVENTIONAL COMMERCIAL BANKS IN
PAKISTAN. Retrieved from http://www.savap.org.pk/journals/ARInt./Vol.3(1)/2012(3.138).pdf
 http://www.mcb.com.pk/ir/MCB%20A-Report2007.pdf

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