Internship Report On MCB

Internship Report on
MCB Main Branch, Mansehra
Submitted by: Muhammad Abid Jadoon

Registration # SP09-MBA-037
MBA Finance
Supervised by: Miss. Faiza Sajjad
Department of Management Sciences

COMSATS Institute of Information & Technology
Abbottabad
January 2011
Internship Report on
MCB Main Branch, Mansehra
Submitted by: Muhammad Abid Jadoon

Registration # SP09-MBA-037
MBA Finance
Supervised by: Miss. Faiza Sajjad
This internship report is submitted in partial fulfillment of the requirements

for degree of Master of Business Administration awarded by the
COMSATS Institute of Information Technology, Abbottabad.

COMSATS Institute of Information & Technology
Abbottabad
January 2011
II

COMSATS Institute of Information Technology
Abbottabad
Approval Sheet
.
Approval Committee
1. External Examiner
Mr. ________________________________________
Signature_______________
2. Supervisor
Mr. Zaheer Ahmad Swati____________________
Signature_______________
3. Head of Department
Dr. Muhammad Mushtaq Khan. _____ _______________ Signature ________________
III
Muslim Commercial Banks Certificate ...
IV
DEDICATION
All the efforts in compiling this report are Dedicated
To
My Loving Parents
&
My Honourable Faculty Members of CIIT, specially to

my supervisory team
Who helped me in this Achievement
Abstract
The development of skills to perform well in professional life has become a dire need of
every MBA Graduate. The very purpose, an internship is to acquaint the MBA with
empirical business practices, particularly in banks which is nowadays the main area of
interest of most of the graduates whether an information technologist or a business
graduate.
As a compulsory requirement of Professional Degree in MBA in Finance, I opted to join
MCB Bank, to fulfill my degree requirement. My reason for choosing MCB was to
enhance my skills and techniques, so that to provide myself the opportunity to cope with
real life situation and I found MCB one of the best banking chains in Pakistan.
To better understand the report, my recommendation would be to look into different parts
mainly covering the overview of MCB Bank, overall management of Finance and
Accounts.
The MCB organizational model has been thoroughly studied and analyzed.
VI
Acknowledgements
God Al-Mighty is Worthy of all acknowledgements Whose Grace has no limits and who
gave me the strength and will to complete this report.
Secondly I am thankful to my parents who supported me morally and financially for the
last two years despite of their limited resources and social pressures.
Special thanks to my internship supervisor Miss Faiza Sajjad for his kind co-operation,
guidance and support to compile this report.
I would like to pay special thanks to the bank Manager of MCB Bank Branch Mansehra
for his constant guidance and motivation during my stay in the bank.
And last but not the least, the entire staff at MCB Bank, for being very cooperative and
courteous with me and providing me with the congenial environment at the bank during
my internship stay at the bank.
Special gratitude to all my honorable teachers, who taught me different courses during
my stay in the CIIT with addict zeal and zest.
I am also thankful for unturned cooperation of Mr. Qureshi (Chaha), who help me for the
formatting of this report.
VII
List of Abbreviations
MCB
Muslim Commercial Bank.
IDBP
Industrial Development Bank of Pakistan
SBP
State Bank of Pakistan
ADBP
Agricultural Development Bank of Pakistan
L/C
Letter of Credit
ATM
Auto Teller Machine
APD
Assets Product Division
IPD
Investment Product Division
IT
Information Technology
BTF
Balance Transferred Facility
NIT
National Investment Trust
FC
Foreign Currency
PLS
Profit & Loss Sharing
HRM
Human Resource Management
MT
Mail Transfer
ETD
Electronic Technology Department
MIS
Management Information System
FDD
Foreign Demand Draft
VIII
Executive Summary
Banks play a significant role in mobilizing savings thus taking great part in capital
formation process. Their role in development of a country has increased, with the advent
of modern technology. The intense competition, among banks, the privatization of the
financial institution and financial liberalization in general are gradually and continuously
making the banking sector efficient and effective.
Because of the reasons mentioned above banking has always been the main field of
interest for most of the students of business administration. It is also an academic
requirement to undergo internship therefore the main purpose behind this report is partial
fulfillment of requirements, for the degree of MBA. The report is categorized into the
following chapters:
In the first chapter introduction to the report, background of study, scope of the study,
merits, limitations and scheme of the study are given.
The second chapter is about history of banking, banking in Pakistan, introduction to the
organization, its historical background, role and functions of organization, its core values,
and miscellanies topics related to banking.
The third chapter is the major portion of the report. It covers the organizational structure
of MCB Bank, the different departments working at MCB Bank and the different
financial products of MCB Bank.
The fourth chapter of the report covers the analysis of report which has been observed. It
includes the financial analysis. Further more it analysis in detail strengths, weaknesses,
opportunities and threats of the organization. SWOT analysis no doubt acts as a mirror for
the management to know the strengths and weaknesses so that it can take appropriate
corrective actions.
In Fifth Chapter the detail Findings & Recommendations are discussed.
IX
Table of contents
Acknowledgements........................................................................................................... X
List of Abbreviations.......................................................................................................XI
Executive Summary.......................................................................................................XII
Chapter 01......................................................................................................................- 1 Introduction to the Report...........................................................................................- 1 1.1 Background of the Study.......................................................................................- 1 1.2 Purpose of the Internship......................................................................................- 1 1.3 Merits of the Report..............................................................................................- 2 1.4 Scope of Work/Report...........................................................................................- 2 1.5 Methodology of the Report...................................................................................- 2 1.5.1 Primary Sources:............................................................................................- 2 1.5.2 Secondary Sources.........................................................................................- 2 1.6 Limitations of the Report......................................................................................- 2 1.7 Scheme of the Report............................................................................................- 2 Chapter 02......................................................................................................................- 4 Introduction to Muslim Commercial Bank................................................................- 4 2.1 Evolution of Banking............................................................................................- 4 2.1.1 Early Growth......................................................................................................- 4 2.2 Development of Modern Banking.........................................................................- 5 2.3 Banking in Pakistan..............................................................................................- 5 2.4 Historical Background of Muslim Commercial Bank..........................................- 7 2.4.1 Nationalization...................................................................................................- 7 -
2.4.2 Privatization...................................................................................................- 7 2.4.3 Operational Head Office................................................................................- 8 2.5 Vision Statement of MCB.....................................................................................- 8 2.6 Mission Statement of MCB...................................................................................- 8 2.7 Credit rating..........................................................................................................- 8 2.8 Awards and Achievements....................................................................................- 9 2.9 Leading banking sector entity...............................................................................- 9 2.10 Role of MCB in Banking Sector.........................................................................- 9 2.11 MCBs Role in NWFP......................................................................................- 10 2.12 Functions of MCB.............................................................................................- 10 2.12.1 Acceptance of Deposits..............................................................................- 10 2.12.2 Providing Funds.........................................................................................- 10 2.12.3 Working as an Agent..................................................................................- 10 2.12.4 General Utility Services.............................................................................- 11 2.13 Number of Branches..........................................................................................- 11 2.14 Ethical Values....................................................................................................- 11 2.15 Computerization of MCB..................................................................................- 12 2.16 Online System...................................................................................................- 12 2.17 Money Gram Facility........................................................................................- 12 2.18 Hajj Service.......................................................................................................- 12 2.19 MCB Retail Banking.........................................................................................- 13 2.20 Secure transfer of money..................................................................................- 13 2.21 MCB Corporate Banking..................................................................................- 13 -
2.22 MCB investment Banking.................................................................................- 13 2.23 Enhanced Managerial Activities.......................................................................- 14 2.24 Flexible Business Style.....................................................................................- 14 2.25 Dynamic Approach Regarding Services...........................................................- 14 2.26 Better Working Condition.................................................................................- 14 2.27 Indulging in Healthy Competition....................................................................- 14 2.28 Information Technology....................................................................................- 15 2.29 Branches Expansion Strategy............................................................................- 15 2.30 Role in the Field Of Sports...............................................................................- 15 2.31 International Operations....................................................................................- 15 2.32 Overseas Branches............................................................................................- 15 2.33 Islamic Banking Division..................................................................................- 15 2.34 Controls and Management System...................................................................- 15 2.35 Structure of MCB..............................................................................................- 16 Chapter 03....................................................................................................................- 18 MCB Bank Mansehra Branch Mansehra.................................................................- 18 Services and Products.................................................................................................- 18 3.1 Departmental Review..........................................................................................- 18 3.1.1 Deposit Department.....................................................................................- 18 3.1.2 Cash Department..........................................................................................- 21 3.1.3 Remittance Department................................................................................- 22 3.1.4 Accounts Department...................................................................................- 24 3.1.5 Foreign Exchange Department.....................................................................- 25 -
3.1.6 Electronic Technology Department..............................................................- 26 3.1.7 Credit Department........................................................................................- 26 3.2 Financial Products of MCB.................................................................................- 27 3.2.1 Personal Finance..........................................................................................- 27 3.2.2 MCB Business Sarmaya...............................................................................- 28 3.2.3 Personal Loan...............................................................................................- 28 3.2.5 MCB Care 4U..............................................................................................- 28 3.2.6 Smart Card / Debit Card...............................................................................- 28 3.2.7 MCB VISA...................................................................................................- 28 3.2.8 Traveler's cheques........................................................................................- 29 3.2.9 Gift cheques.................................................................................................- 29 3.2.10 Products......................................................................................................- 29 Chapter 04....................................................................................................................- 30 Financial Analysis of MCB Bank...............................................................................- 30 4.1 Financial Analysis...............................................................................................- 30 4.1.1 Balance Sheet Analysis Horizontal analysis................................................- 30 4.1.2 Balance sheet vertical analysis (assets)........................................................- 36 4.3 Ratio Analysis.....................................................................................................- 39 4.3.1 Net Interest Margin Ratio.............................................................................- 40 4.3.2 Earning Asset Ratio......................................................................................- 41 4.3.3 Operating cost to income ratio.....................................................................- 41 4.3.4 Equity to total asset Ratio............................................................................- 42 4.3.5 Credit to deposit Ratio.................................................................................- 43 -
4.3.5 Loans loss coverage Ratio............................................................................- 43 4.3.6 Return on earning asset ratio........................................................................- 44 4.3.7 Return on deposits........................................................................................- 44 4.4 Swot Analysis......................................................................................................- 45 4.4.1 Strengths.......................................................................................................- 45 4.4.2 Weaknesses...................................................................................................- 46 4.4.3 Opportunities................................................................................................- 46 4.4.4 Threats..........................................................................................................- 47 Chapter 05....................................................................................................................- 49 Conclusions & Recommendations.............................................................................- 49 5.1 Conclusion:.........................................................................................................- 49 5.1.1 Good Features:.............................................................................................- 49 5.1.2 Drawbacks and Suggestions:.......................................................................- 49 5.1.3 Facility of Computer Cell in All Big Cities:................................................- 50 5.2 Recommendations:..............................................................................................- 50 Reference:....................................................................................................................- 51 -
Chapter 01
Introduction to the Report
This Internship report is aimed at studying and analyzing Muslim Commercial Bank
(MCB) in general and its branch office at Mansehra, in particular. The main purpose of
the internship is to prepare and submit a report as a partial fulfillment for the award of
MBA degree in finance from COMSATS Institute of Information Technology
Abbottabad.
1.1 Background of the Study
Pakistans economy by the Grace of God is growing with an appreciable rate. Sound
banking system for this growing economy is the need of the day, which must meet the
financial needs of the growing agriculture, industrial and commercial/services sector.
Muslim Commercial Bank since 1947 has played a pivotal role in the development of
Pakistan. Like other multinational banks, MCB has adopted a customer-oriented
approach, in order to provide quality products according to customer needs and stands as
a role model for the other banks. In this report I have tried to cover all the aspects of
MCBs banking operations.
1.2 Purpose of the Internship
The primary purpose of the internship is to fulfill the academic requirements of my study.
The secondary purpose of the internship is to evaluate the banking practices, in corporate
world and to compare these practices with the contemporary banking practices. The
purpose of the study also is, to do practical work, in the field and apply the knowledge of
classroom lectures to the real life situations, which thus enables a student to be a future
banking practitioner. Besides this, some other purposes are associated, which includes:
To give a comprehensive review of MCB.
To analyze MCBs organizational, financial and other aspects.
To identify the areas of the bank where there is some room for improvement.
To present some feasible solutions for the problems pertaining to MCB.
To apply the knowledge gained in practical field.
1.3 Merits of the Report

The study conducted will benefit the finance students in particular and banking students
in general because the third chapter of this report comprehensively encompasses most of
the aspects of banking, followed by SWOT analysis, conclusion and recommendations.
Furthermore, MCB Mansehra branch may also benefit from the recommendations made
at the end of the report.
1.4 Scope of Work/Report
Banking has a very broad scope. In only eight weeks of internship, it is very difficult to
understand each and every aspect of bank. Due to the barriers of limited time and space,
the scope of work is usually confined. However this study of MCB will help the
management to identify their weaknesses and threats and over come them by using their
strengths and capitalizing on the opportunities. This internship report will be source of
financial data for all those who are interested in financial statement analysis of MCB.
1.5 Methodology of the Report.
This study involves two types of data for report writing.
1.5.1 Primary Sources:
Interviews and discussion with staff members
Personal observations
Direct dealing with bank clients.
1.5.2 Secondary Sources
Annual reports of MCB
Brochures & Manuals.
Websites
Previous Internship Reports.
1.6 Limitations of the Report

As mentioned earlier, eight weeks of time is very limited for a complete observation of an
institution like MCB. Moreover some of the data was confidential and was not made
available to me. Sometimes due to the busy schedule of the bank, complete information
regarding different activities was not provided in time.
1.7 Scheme of the Report
This internship report is divided into five chapters as:
Chapter one includes background, purpose, scope, limitations, methodology, and scheme
of the report.
Chapter two includes background and history of banking in Pakistan, background of
MCB, roles, functions and branches.
Chapter three includes organizational structure of MCB, organizational charts and
departments of MCB.
Chapter four includes financial, SWOT analysis and findings based on work in chapter
three.
Chapter five includes recommendations of the study based on the analysis in the previous
chapter.
Chapter 02
Introduction to Muslim Commercial Bank
2.1 Evolution of Banking
It has not so far been decided as to how the word Bank originated. The explanation of
this origin is attributed to the fact that the Jews in Lombardy transacted the business of
money exchange on branches in the market place and when the business failed, the
people destroyed the Bank. Incidentally, the word bankrupt is said to have been evolved
from this practice. The opponents of this opinion argue that it was so, then how is that the
Italian moneychangers were never called Banchierei in the Middle Ages?
2.1.1 Early Growth
Banking in fact is as primitive as human society for ever since man came to realize the
importance of money as a medium of exchange. Perhaps it was the Babylonians who
developed banking system as early as 2000 B.C. It is evident that the Temples of Babylon
were used as Banks because of the prevalent respect and confidence in the clergy
(reference www.abl.com).
King Hamurabi (1728 1686 B.C), the founder of the Babylonian empire, drew up
accede where in he laid down standard rules of procedure for banking operations by
temples and great landlords. He got his code inscribed on the block of diorite about 8 feet
tall, containing about 150 paragraphs which deals with nearly all aspects of loans,
interest, pledges, guarantees, natural accidents, loss, theft etc. Later on Sumerians,
Babylonians, Hitties and Assyrians standardized the values of the goods in silver, copper
and bronze.
It is not certain as to who invented money but history recess that king of Lydia castled
electrum ingots of identical shapes and of uniform weights with a triple emblem engraved
on it as an official guarantee of value in 687 B.C. In 1401 a German public bank was
framed comprising the operations of discounting and transferring of money. By the 16th
century, some more public banks were formed in Venice, Milan, Amsterdam, Hamburg
and Nuremburg. In order to streamline Banking organizations and techniques,

conferences were held in Nuremburg from 1548 to 1551.Ultimately in 1587, a State Bank
under the name of banco DI rialto was formed in Genoa. (www.bankhistory.com)
Similarly in 1690, the Bank of Hamburg came into existence in Hamburg with the
business of accepting deposits of fine silver or of foreign money and to run accounts on
these deposits. This Bank rendered great service to the merchants as well as countries it
dealt with until 1873, when it was merged with the Reich bank. By the year 1700, the
bank of England was not only issuing notes but also conducting accounts for customers.
Its directors were conducting the business like that of limited companies. The bank had
the monopoly of issuing banking notes. Up to 1813 or there about in England, the main
profit of bank was derived from the circulation of notes.
2.2 Development of Modern Banking
In 1918 came into being eleven clearing banks of today. The effect of this historical
development of banking in England has been fairly wide. First, emergence of a small
number of large banks with wide network of branches. Second, increase in the popularity
of bank accounts and a large-scale use of cheques.
In 1946, the labor government nationalized the bank of England and transferred the
existing stock to the nominee of British treasury. In 1955, the British Banks made a
departure from traditional banking by undertaking hire-purchase finance for companies
buying industrial plants and machinery and took interest on hire-purchase finance.
2.3 Banking in Pakistan
At the time of independence, there were 631 offices of scheduled banks in Pakistan, of
which 487 were located in West Pakistan alone. As a new country without resources it
was very difficult for Pakistan to run its own banking system immediately. Therefore, the
expert committee recommended that the Reserve Bank of India should continue to
function in Pakistan until 30th September 1948, so that problems of time and demand
liability, coinage currencies, exchange etc, are settled between India and Pakistan.
The non-Muslims started transferring their funds and accounts to India. By the end of
June 1948 the number of officers of scheduled banks in Pakistan declined from 631 to
5
225. There were 19 foreign banks with the status of small branch offices that were
engaged solely in export of crop from Pakistan, while there were only two Pakistani
institutions, Habib Bank of Pakistan and the Australasia Bank.
The customers of the bank are not satisfied with the uncertain condition of banking.
Similarly the Reserve Bank of India was not in the favour of Govt. of Pakistan. The Govt.
of Pakistan decided to establish a full-fledge central bank. Consequently the Governorgeneral of Pakistan Quaid-I-Azam inaugurated the State Bank of Pakistan on July 1,
1948. Thus a landmark was made in the history of banking when the state bank of
Pakistan assumed full control of banking and currency in Pakistan.
The banking structure in Pakistan comprises of the following types.
State Bank of Pakistan.
Commercial Bank of Pakistan.
Saving banks.
Co-operative banks
Specialised credit institutions.
Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all
over the country and in some foreign countries through a network of branches. All these
commercial banks were nationalized in January 1, 1974, and were recognized and merged
into the following five banks:
National Bank of Pakistan
Muslim commercial bank limited
Habib Bank Limited
United Bank Limited
Allied Bank of Pakistan
The state bank of Pakistan is the Central bank of the country and was established on July
1, 1948.The separation of East Pakistan and its repercussion in the form of economic
depression has caused a lot of difficulties to the banking system in Pakistan. The network
of bank branches now covers a very large segment of national economy.
The numbers of branches have increased appreciably and there is now on branch of bank
for every 3000 heads of population approximately. There is done reasonable growth in
deposits from the establishment of Pakistan. Besides this growth, specialised credit and
financial institutions have also developed over the years.
The Government of Pakistan in the late 90s introducing the need for the privatization of
state owned banks and companies. The private sector has accepted the challenge and
most of the banks are privatized today. The State Bank of Pakistan issues the shares of
these periodically. Bank employees and other common peoples can also purchase these
shares and earn profit.
2.4 Historical Background of Muslim Commercial Bank
Muslim Commercial Bank (MCB) unfolds 52 years of growth. MCB is not an overnight
success story. The bank started corporate life in Calcutta on July 9, 1947. After the
partition of the Indo-Pak Subcontinent, the bank moved to Dhaka from where it
commenced business in August 1948. In 1956, the Bank transferred its registered office
to Karachi, where the Head Office is presently located. Thus, the bank inherits a 52-year
legacy of trust in its customers and the citizens of Pakistan.
2.4.1 Nationalization
In January 1974, the Government of Pakistan nationalized MCB following the banks
(Nationalization) Act 1947, Premier Bank Limited merged with MCB.
2.4.2 Privatization
A wave of economic reforms swept Pakistan in the late 1990, introducing the need for
privatization of state owned banks companies. In April 1991, MCB became Pakistans
first privatized bank. The government of Pakistan transferred the management of the
Bank to National Group, a group of leading industrialists of the country by selling 26%
shares of the bank.
In terms of agreement between the Government of Pakistan and the National Group, the
group, making their holding 50% has purchased additional 24% shares. Now, 25% is
purchased by the Government, which shall be sold in the near future.
2.4.3 Operational Head Office
The MCB Tower in Karachi serves as the MCB's headquarters, and is also the tallest
building in Pakistan. MCB, advised by Merrill Lynch, became the fourth Pakistani
company (the other three being Hubco, PTCL and Chakwal Cement - they all have been
delisted) to list on the London Stock Exchange when it raised US$150 million global
depositary receipts.
2.5 Vision Statement of MCB
"To become the preferred provider of Quality Financial Services in the country with
Profitability and Responsibility and to be the Best Place to Work."
2.6 Mission Statement of MCB
A vision statement was formulated to describe Mission statement into more
meaningful goals and targets to be achieved in future. The Vision statement of MCB is:
By the year 2010 MCB will have a highly motivated professional team who will provide
quality customer service, expand and penetrate the customer base, in order to improve
profitability so that we can pay regular dividend and Increase our share value."
The MCB Vision covers following long-term goals to be achieved in next 10 years:
To have highly motivated team.
Provide quality customer service.
Expand and penetrate the customer base.
Pay regular dividend and increase our share value.
2.7 Credit rating

The Pakistan Credit Rating Agency (PACRA) has assigned an asset manager rating of
AM3 to MCB Asset Management Company Limited (MCB AMC). The rating has been
assigned a Positive Outlook. The rating denotes the companys strong capacity to
manage the risks inherent in asset management and the asset manager meets high
investment management industry standards and benchmarks.
JCR-VIS Credit Rating Company Limited is pleased to upgrade the entity ratings of
MCB from A+ to AA- (Double A Minus) for medium to long-term and from A-1 to A-1+
(A One Plus) for the short term. By virtue of this upgrade, the preliminary ratings of
MCB's proposed subordinated TFCs of Rs 2.5b has also been upgraded to A+ (A Plus)
from a (Single A).
2.8 Awards and Achievements
The Muslim Commercial Bank Ltd., the largest private bank in Pakistan, has shown an
increase of 58.4 per cent in Operating Profits for the period ending December 31, 2000,
as compared to the preceding year.
The Muslim Commercial Bank Ltd registered an Operating Profit of over Rs. 2.483
billion for the last calendar year as compared to Rs. 1.567 billion during the year ending
December 31, 1999. MCB has a rich history that spans over 50 years. With a network of
over 1000 branches in 40 cities across Pakistan and over 225 ATMs, MCB is one of the
largest banks in Pakistan. With 85 percent of its branches automated MCB is also the
front runner in technology and innovation.
MCB has received the Euro money award four times in the last five years and is the only
bank to earn such successive distinction MCB won the "Best Bank in Pakistan" in 2005,
2004, 2003, 2001, and in 2000 the "Best Domestic Bank in Pakistan" awards.
2.9 Leading banking sector entity
MCB is Pakistans fourth largest bank by assets having an asset base of US$6.7 billion,
and the largest by market capitalization having a market capitalization of US$4.1 billion.
The Bank has a customer base of approximately 4 million and a nationwide distribution
network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in
a market with a population of 160 million.
2.10 Role of MCB in Banking Sector
MCB Bank Limited (MCB), one of Pakistans most progressive and dynamic financial
institutions. The banking sector in Pakistan is going through a transition period which
will have a positive impact on commercial banks. Muslim Commercial Bank (MCB)
seems to be one of the banks capable of taking advantage of these dynamics. Successful
internal restructuring, large branch network and the newly hired management team
should be able to raise earnings of the Bank significantly.
2.11 MCBs Role in NWFP
MCB is operating very successfully in NWFP. A shared network of over 612 online
ATMs covering all major cities in Pakistan sports the delivery channels for customer
service. MCB is playing its part in the socioeconomic development of NWFP with the
following objectives:
To participate in the economic development of the region.
To pay special attention to the needs of the underdeveloped areas.
To act as a bridge between the foreign and local entrepreneurs.
To encourage industry based on locally fabricated machinery and raw material.
2.12 Functions of MCB

MCB performs its functions in accordance with its memorandum and articles of
association in the same manner as do other banks in Pakistan.
The important functions performed by the Bank are:
2.12.1 Acceptance of Deposits
It is the basic function of all commercial banks because, the entire banking system is
based on the funds borrowed from the public, as banks own capital is not enough to sure
the operations.
10
MCB accepts deposits in the form of Current, Savings and Fixed deposits and offers
different schemes such as MCB Saving-365, MCB Saving-365 Gold, Mahana Khushali
Scheme, Khushali Bachat Scheme and many more in order to increase customers
attraction.
2.12.2 Providing Funds
A bank is a profit-seeking institution. It collects surplus balances from the customers at
low interest rate and makes advances at a higher rate to the individuals and business
firms.
There are three types of advances provided by MCB:
Running Finance
Demand Finance
Cash Finance
2.12.3 Working as an Agent

Agency functions performed by the MCB are
Dividends Collection
Cheques Collection
Acting as a trustee or executor
Execution of standing instructions
2.12.4 General Utility Services

This includes the following areas:
Clearance of utility bills
Providing locker facility
Accepting Bills of Exchange
11
Supply of information
12
2.13 Number of Branches

Figure 2.1 Networks of Branches
SECTORS
CIRCLES
REGIONS
BRANCHES
Punjab
10
25
632
N.W.F.P. & AJK
142
Sindh
12
232
Baluchistan
34
Domestic Zone
20
46
1040
EPZ
Overseas
Total
20
46
1045
(Source: self made)

2.14 Ethical Values
The intrinsic core values that are corner stones of our corporate behavior are as fallows.
Trust
Customer Focus
Innovation
Teamwork
Achievement
Social Responsibility
13
2.15 Computerization of MCB

MCB has three computers centers in Rawalpindi, Lahore and Karachi that are equipped
with modern mainframe computers of various capacities. Every branch has a well
established computer network.
The use of computers has enabled the bank to save the time and efforts raise efficiency
and deliver the goods in a timely manner. This has allowed the bank to maintain its
competitive edge in the market.
2.16 Online System
Theme of this service is Access any time, anywhere, and through any device which
symbolizes comfort, convenience and easy accessibility. AC-online a web based service
that can be accessed through multiple media link like:
PC via internet
Mobile phones with WAP or free SMS
Plain telephone
Following are some features:
Accounts statements and electronic data interchange
Graphical analysis
The banks has another computer based known as MNET which is a welldeveloped online branch-banking package.
2.17 Money Gram Facility

The bank has recently employed money gram service system, which can affect money
transfers within minutes. Similarly the system used for local transfer of money
transactions is called Uni-remote.
14
2.18 Hajj Service

A saving scheme, for 2/5 years, for the convenience of those people, who have limited
income and desire to perform Hajj, is introduced by MCB.
If the scheme is for 2 years, then the amount to be deposited monthly would be Rs.1800
in 24 installments.
For 3 year, the monthly deposit will be Rs.1200 in 36 installments. After expiry of
two/three years, Bank expects to pay Rs.48160 and Rs.51200 respectively or the amount
accumulated on the basis of profit rates as declared on half yearly basis, less Zakat and
withholding tax applicable at the time of payment, which would be utilized by intending
Hajji for submitting application and meeting other expenses of Hajji. Such accounts are
non-chequing accounts.
2.19 MCB Retail Banking
MCB retail-banking includes online services, accounts, loans, cards, travelers cheques.
2.20 Secure transfer of money
Public needs to transfer money from one city to another. The objective of MCB is to
ensure the safe and secure and efficient transfer
2.21 MCB Corporate Banking
MCBs mission is to serve all corporate needs of its customers and ensure full satisfaction
through product innovation, personalized banking through relationship banking, best
customer services and key contracts.
2.22 MCB investment Banking
Our Investment Banking Team has emerged as a leading player in Pakistan's Investment
Banking arena. The Team handles advisory, corporate finance and capital markets related
transactions. Within these areas, the team has developed expertise in
Private Placements
Debt/Equity Underwriting
15
Term Finance Certificates
Loan Syndication
Arrangement of Non- Fund Facilities
Mergers and Acquisitions
Privatization
Corporate Advisory
2.23 Enhanced Managerial Activities

The world has entered into a new era so has banking. The customers want cost effective
financial products, attractive return and excellent services but security of funds remains
the top most concern. Even in Pakistan commercial banks are no longer confined to fourwalls and the edge in technology plays a key role. Yet another important feature which
cannot be overlooked by the management of any commercial bank is the extent of branch
network, proximity to the customers, particularly for the rural population.
2.24 Flexible Business Style
MCB business approach is flexible which means that it changed it style according to
market need and was appealing to the customers. MCBs approach was dynamic and
personalized which made it distinguished from other banks of the era.
2.25 Dynamic Approach Regarding Services
MCB made people of Pakistan saving minded and familiar with banking and in this
regard its skilled management contributed very much. In this direction MCB mobilized
saving and opening of accounts.
Following are the factors which contributed in the achievement of this purpose:
Knowledge of customers business.
Market research.
Visits to customers at there offices.

16
Development of personalized relationship with business community.
Fixation of seasonal business markets.
2.26 Better Working Condition

From the very first MCB has provided its employees a better working environment,
salary structure and facilities. It has created such relax environment for its employees in
the presence of which employees can polish their skills and abilities.
2.27 Indulging in Healthy Competition
When MCB entered in the banking field, a new era of banking began and this era was the
phase of competition. Clients are attracted towards those banks which used to provide
better and quicker banking services. Keeping in view this approach MCB made a lot of
changes and adopted a modern strategy to provide attractive services to the customers.
The competition involved in by MCB was not only legitimize but also vital for industry.
It consists of a wide and increasing range of services which were provided efficiently and
with due courtesy
2.28 Information Technology
Technology has played a pivotal role in enhancing customer expectations, particularly
with respect to speed and quality of service. Wee have fully automated transaction
processing system for back office support.
2.29 Branches Expansion Strategy
The management decided to broaden the geographical coverage. Therefore besides the
cities, the bank spread out the branches into small towns and the far-flung less developed
areas to full its social responsibility.
2.30 Role in the Field Of Sports
MCB is fully committed to the community service and sports and in this regard bank
participated and supported a number of events including national championship and
Asian boxing championship.
17
2.31 International Operations

MCB took a basic decision to make it present felt internationally and to cater to the needs
of importers and exporters as well as its share in foreign trade and international market.
2.32 Overseas Branches
MCB has expanded into a nation wide presence of Sri Lanka, 1 Colombo, 2 Pettah,
3Maradona, Bahrain, 1 Manama.
2.33 Islamic Banking Division
Islamic Banking Division was formed with effect from 1st January 2003, which in a short
span of time, has developed sufficient expertise, necessary infrastructure, information
technology, and manpower to run Islamic Banking Operation.
2.34 Controls and Management System
The control and management system of bank is necessary, since bank deals in money, all
services which deals in money or money transactions require induction of effective and
efficient internal control system to protect it in order to build high image of trust.
2.35 Structure of MCB.
MCB is a huge and complicated organization with its divisions, branches and
administrative offices spread all over the country. The structures, on different basis, are:
Geographical based
Executive based.
Functions based
18
Figure 2.2
Board of Director
Name
Designation
Mian Mohammad Mansha
Chairman
Mr. S. M. Muneer
Vice-Chairman
Mr. Tariq Rafi
Director
Mr. Mohammad Arshad
Director
Sheikh Mukhtar Ahmed
Director
Mr. Shahzad Saleem
Director
Mr. Raza Mansha
Director
Mian Umar Mansha
Director
Mr. Sakmad Amin
Director
Dr. Sheikh Aleem Mahmood
Director
Mr. Mushtaq Ahmed Malik
Director
Source: MCB 2008 Annual Report
19
Figure 2.3
MCB Organization Structure Chart
C h a ir m a n
B o a r d o f D ir e c to r s
C h ie f E x e c u tiv e
5 S E V P 's
1 0 E V P 's
5 V P 's
AV P
O G -1
O G 11
O G 111
C le r ic a l S ta f f
N o n -C le r ic a l S ta ff
(Source: self made)

2.36 Span of control
MCB is a huge organization with many branches in different areas of the country and
different divisions under the head office.
20
Figure 2.3
Organizational Branch Structure Chart
Manager
Operational
Manager
Dispatch
Deptt
Foreign
Exchange
Account
Deptt
Advances
/ Credit
Clearing
Deptt
(Source: self made)
21
Chapter 03
MCB Bank Mansehra Branch Mansehra
Services and Products
3.1 Departmental Review
The organization of MCB is a complete banking system. This banking system is
collection of interrelated departments that works together to achieve the objectives of the
organization. I can rightly say that MCB is a hierarchical system in that it includes other
sub departments and these are integrated to work together.
The MBCs existing system includes following departments.
Deposit Department
Accounts Department
Current Department
Remittance Department
Clearing Department
Cash Department
3.1.1 Deposit Department

There are only few organizations to which the funds are provided by their owners, but
more of the organizations depend on the outside sources for their funds need. Borrowing
funds from different sources has become an essential feature of todays business
enterprises. But in the case of a bank, borrowing funds from outside parties is all the
more vital because; the entire banking system is based on it. The main function of a bank
is to receive deposits and lend them to earn interest. Deposits, therefore, are considered to
be the life-blood of a bank.
22
3.1.1.1 Functions of Deposit Department

Provide guidance to the persons wishing to open an account by assistance of account
opening form and specimen signature (SS) card.
Major functions of deposit department in MCB include:
To maintain existing accounts.
To dispatch letters to customers if needed e.g. letter of thanks to introducer and

new account holder.
Posting of vouchers and cheques in computer and maintain records in form of

printouts.
Cancellation of cheques.
Issuance of cheque book.
Sorting is also done of accounts to check dormant and inoperative accounts and
also for recovery of incidental charges.
It also deals in deduction and refund cases of zakat.
Maintenance and handling of various deposit schemes e.g. PLS, saving and
current accounts.
Making stop payments of cheques and noting cautions regarding death,

insolvency, insanity of account holder.
Transfer and closing of accounts.
Keeping the records of death/credit balance confirmations and statement of

account.
Provide confidential inquiries to other banks, government departments and other

agencies.
23
3.1.1.2 Types of Deposit Accounts Offered By MCB

There are:
Current Deposits
Saving Deposits
Fixed Deposits
3.1.1.2.1 Current Deposits

These are payable to customers upon the demand and the bank is bound to honor the
cheque to the extent of the balance in the account. These deposits are treated as current
liabilities by the bank. No profit is given on these deposits and no service charges are
deducted by the bank. A higher percentage of cash reserves is kept against these deposits
by the bank.
3.1.1.2.2 Saving Deposits
The main objective of the savings deposits is to encourage thrift among people of small
means such as children, married and household women etc. initial deposit must be in
cash. Cheques may only be accepted as part of initial deposit in case of undoubted parties
& on the personal responsibilities of Managers. The depositor is issued with a cheque
book for withdrawal. Profit is paid at a flexible rate calculated monthly or semi-annually.
Usually, there is no restriction on the withdrawals and the amount of money withdrawn is
deleted for assessment of profit which discourages unnecessary withdrawals from the
deposits. This type of account is opened with Rs. 100. Withdrawals are allowed twice a
week. Minimum requirement for opening of Current & Saving Account is Rs. 100 each.
3.1.1.2.3 Fixed Deposit
These deposits can be withdrawn after a specific period of time such as 6 months, twoyears or longer. Return on deposits varies with the duration for which the account is kept
with the bank. Since these deposits remain for specified period of time, they are
comparatively freer to employ. A fixed deposit receipt is issued which is non-negotiable
but in case of transfer of the instrument, the transferee gets no right to issue the bank in
24
his own name. Sometimes, the banker may allow a premature withdrawal but the
customer may forgo the interest accrued on the deposits.
3.1.1.3 Rules for Opening an Account

To open an account the customer have to meet the general banking manager with an
introducer (the person who is going go introduce that person in the bank) and get an
application form used for account opening. Different color-coded application forms are
available for each type of account. Along with the form a card for specimen signature is
also supplied to customer. Manager has every right not to accept this contract if he is not
satisfied by the details provided by the customer. In case the contract is acceptable to
both, now it is ready to open the account formally.
3.1.1.3.1 Introduction of Account
Introducer signature is genuine.
Introducer is genuine to bank.
Introducer also knows the account holder whose account he has introduced.
Action must be performed by the respectable party and the bank must know them.
In this regard the banker must know them and satisfied with introducer.
3.1.1.3.2 Procedures and Persecutions Of PLS Account

This account was started in 1980s after the issuing of banking ordinance in 1980 by Zia
Government to develop Islamic banking in Pakistan. In this case customer would be
responsible for bearing profit as well as loss. The bank would be within its rights to
make investment of credit balances in the PLS saving accounts in any manner at its sole
discretion and to make use of the fund to the best of its judgment in the banking business
under the PLS system. For withdrawal of larger amount, 7 days notice in writing is
required to be given:
Minimum balance is Rs.500/=
25
Below minimum balance charges will be debited
Not more than eight withdrawals in a year allowed
More than Rs.15000/= are not allowed to draw
Seven day notice is required for withdrawal
Profit calculated on monthly basis
Profit paid on annually basis
Profit paid on lowest balance at the end
10% Withholding Tax on minimum balance
Zakat deducted on @ 2.5%
3.1.2 Cash Department

The main function of this system is Receipts & payments to the customers, on behalf of
their account, through Cheques or any other negotiable instruments. All those
transactions, which are held on the counter on cash basis lies under the cash department.
The cash system mainly deals with following areas:
Receipts
Payments
3.1.2.1 Receipts
The customer deposits in there accounts through a deposit slip. The deposit slip contains
the account number and the title of account. The amount in figure and words is also
written on both side of the slip. The customer deposits the amount to the cashier, which is
dully signed by the cashier and an officer, the amount is thus credited to the account
holder.
3.1.2.2 Payments
The amount of money is repaired to the cheque.
26
Cheque is a bill of exchange drawn on a specified banker and expressed to be payable

otherwise on demand.
3.1.2.3 Sufficiency of Funds
The drawer of a cheque having sufficient funds of the drawer in his hands properly
applicable to the payment of such cheques must pay the cheque when duly required to do,
and in default of such payment must compensate the drawer for any loss or damage
caused by such default.
Usually following objection are applied in case of insufficiency of funds:
Not sufficient
Exceed arrangement
Not provided for
Full covered not received
Refer to drawer
Account closed
Present again
3.1.3 Remittance Department

Funds transfer is one of the basic functions of the Banking sector. These transfers may be
in the form of domestic remittance or to/from foreign location. Banking channels are
most frequently used for remittances due to its large network, reliability, safety,
legitimacy and timely delivery to the right beneficiary. Banks use their large
communication and branch network for ensuring efficient delivery of funds in the
shortest possible time.
Within Locality
Outside Locality
27
3.1.3.1 With in Locality

When a branch situated in Mansehra is required to send drafts of any branch/branches
situated in the same city, the process is known as within locality. For example, the MCB
branch is known as local or with in locality for branches in Mansehra.
3.1.3.2 Outside Locality
Outside locality is an important type of inland remittance. Outside locality means the
transfer of money payable outside the city. For example MCB Mansehra Branch sends
any draft to a branch situated at Peshawar it is commonly done through:
1. Mail Transfer
(M.T)
2. Telegraphic Transfer (T.T)

3. Demand draft
(D.D)
4. Pay Order
(PO)
3.1.3.2.1 Mail Transfer (M.T)

It is remitting of funds from one branch to another branch of the same bank or within the
same city as well as from one city to another. In case of MT, there is no need to dispatch
anything to the payee. The bank makes special arrangement for the payment to the
beneficiary through mail/courier service, which is Mail Transfer.
The salient features and procedure are similar as that of DD and TT.
3.1.3.2.2 Telegraphic Transfer (T.T)
In a number of cases, funds are needed to be urgently remitted to the beneficiaries by the
remitters. This service is readily provided by the bank both to customers and noncustomers and funds are transferred to the destination through telegram/telefax to ensure
payment to the beneficiaries at the earliest. The message communicating the transfer of
funds is sent to the drawer branch in coded language which is supported by a confidential
number known as TEST NUMBER to establish its genuineness and authenticity. The
salient features and procedure of TT is similar to DD.
3.1.3.2.3 Demand draft (D.D)
28
The Demand Draft is a written order (Bill of Exchange) drawn by one branch at a bank
upon another branch of the same bank in another city to pay a certain sum of money to or
to the order of a specified person.
Salient Features:
DD is not issued payable to bearer
It is a negotiable instrument
Legal provisions regarding crossing, endorsement, collection and payment are similar
to those of cheques.
A DD may be issued to any person who is not a minor
DDs can also be issued to a firm, company or local bodies/authorities on their written
applications.
Open DD
Open DD is one, which is payable directly at the counter and there is no need of crediting
it to the account.
Crossed DD
It is one, which is paid through account. The amount of the DD is credited to the favoring
account. In MCB, different charges of DD in Pak Rupees are: up to 10,000 is 15%, from
10,000 to 100,000 is 11%, from 100,000 to 500,000 is 0.5%.
3.1.3.2.4 Pay Order (P.O)
For this kind of remittance the payer must have the account in the issuing bank. Pay order
are more liquid as compared to cheques because cheques may be dishonored while PO
cant be. It is written order issued by the bank drawn and payable on itself. It is used for
local transfer of money from one person to another person. It is also used by the public
for depositing money with Government or Semi Government department.
The party who requires a pay order will get a printed application from the bank. He will
fill it and deposits the amount and commission.
29
Bank Serial No.
No. of PO
Central No.
0.02% With holding tax
3.1.4 Accounts Department

Every transaction which takes place recorded in the computer so all transactions in
different departments are forwarded to account department. Since all vouchers from
different departments are forwarded to current department so this department tallies all
such transactions with current department after maintaining the ledger of each
department. Following are different functions performed by this department:
Preparation of Financial Statements for different time span
Maintain all accounts of different departments
Calculation of profit on different schemes
Calculation of markup on different advances
Preparation Different types of reports for State Bank
Daily position of cash & every accounts
Matching daily summaries of all departments with ledger
3.1.5 Foreign Exchange Department

This department works like general banking department with the difference that it deals
in foreign currencies like US ($) and Pound Sterling, Dutch Mark (DM), Euro and
Japanese Yen (Y).
This department deals with the following products/services:
Foreign Currency Accounts
Foreign Remittances
30
Foreign Bills for Collection
Selling of Government Certificates
Imports & Exports
3.1.5.1 Sight letter of credit

In this letter of credit bank pays amount as soon as it has received the documents. The
document may be bill of loading, insurance cover, list of goods, price and bills of
exchange.
3.1.5.2 USANCE letter of credit
In this there is an agreement between importer and exporter that the importer will pay
money in 30 days, 60 days, 90 days etc. The importer can demand an interest but bank
has nothing to do with it. It is the agreement between both the parties.
Foreign exchange department provides the following services to the customers.
Foreign Currency Accounts
Foreign Exchange Remittance Facility
Import & Export Advances to Importers & exporters
3.1.6 Electronic Technology Department

MCB has an Electronic Technology System. This system provides services to the
individual-to-individual Accounts Holders, information required by upper Management /
State Bank & Government Departments.
The Electronic Technology System provide following services:
Online Banking
Internet banking
Auto Teller Machine (ATM)
Phone Banking
31
Balance Transfer facility
3.1.7 Credit Department

MCB is the profit seeking institution. It attracts surplus balance from customers at lower
rate of interest and makes advances at higher rate of interest. MCB make advances
mainly in three sectors:
Agricultural Advances
Commercial Advances
Industrial Advances
These loans are given specially to traders, business, small industrial units, including
cottage industries, agriculturists, thus ensuring unquotable distribution of bank credit
among various sectors of the countrys economy.
The finance system deals with providing finances (loans) and ensuring the guarantees.
Three basic types of finances are:
Demand finance
Running finance
Cash finance
3.1.7.1 Types of Advances Offered By MCB

MCB Credit department deals with all the advances, which are made to the customers.
Advances are important for the banking business because it gives the bank interest on the
amount loaned. MCB is also very active in advancing loans to customers, thus helping
the economy of the country in its development. It provides the following finances:
3.1.7.1.1 Running Finance
These finances as evident by the name are given to the business to meet their daily needs.
The mark up is charged on daily balances. These types of advances are given to trade,
32
commerce and manufacturing for general purpose. Normally 0.60 paisa per thousand is
charged is charged on daily basis. It is drawn through Cheque.
33
3.1.7.1.2 Cash Finance

Cash finance is also called working capital. It is a short-term loan. Probably the most
popular form of providing funds to the clients in the banking sector is the Cash Finance
system or traditionally known as Cash Credit. In this, the bank lends money to borrowers
against tangible security. The total amount of loan, which is granted, is not paid in one
installment. The borrowers have to pay markup on the amount borrowed. Cash finance is
obtained either by
Hypothecation (When goods are not physically handed over to the bank as
security for loan advanced, but the bank has a lien over the goods)
Pledge (When goods are physically handed over to the bank as security for loan
advanced)
3.1.7.1.3 Demand Finance

This is a type of secured loan and demand loan never allowed without security. It is a
type of long term financing. MCB also gives loan under the head of demand finance to
individuals, industrial units commercial business etc.
3.2 Financial Products of MCB
The financial products are:
3.2.1 Personal Finance
Personal Finance is a parameter driven product for catering to the needs of the general
public belonging to different segments. One can avail unlimited opportunities through
Muslim Bank's Personal Finance. With unmatched finance features in terms of loan
amount, payback period and most affordable monthly installments, Muslim Bank's
Personal Finance makes sure that one gets the most out of his/her loan. Once a good
credit history is established, the door to opportunity opens much wider.
34
3.2.2 MCB 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.
3.2.3 Personal Loan
The more you praise and celebrate your life, the more there is in life to celebrate. MCB
Personal Loan shortens the distance between your dreams and your celebrations. It is
designed to be fast, flexible and affordable so that you can live free and Celebrate Life.
3.2.4 MCB Pyara Ghar
Owning your dream home has never been easier. MCB Pyara Ghar is the most sensible
option for purchasing, building, or renovating your new/existing home. It offers you a
range of financing options to help you realize your dreams. After all ", Apna Ghar Pyara
Ghar".
3.2.5 MCB Care 4U
Life in the fast lane can be really slow without a car. MCB Car 4 U makes it a breeze to
finance/lease your new/used car. So get up to speed, because "Kahin Na Kahin Tau Hai
1 Car 4 You".
3.2.6 Smart Card / Debit Card
MCB now brings you MCB SmartCard -a secure and convenient instrument of payment
with unmatched functionalities. It provides 24-hour direct access to your bank
account.The convenience and flexibility of MCB SmartCard 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 is the only bank to introduce a debit card that gives the option to choose from
domestic and international cards for local and global usage respectively. You can avail the
following functionalities on your MCB SmartCard.
35
3.2.7 MCB VISA

MCB Visa is not just another card in your wallet. It not only provides the conventional
credit card services in a manner that is superior in comparison, but goes an extra mile.
Introducing unique, innovative and state of the art services, MCB Visa is the most secure,
affordable and rewarding credit card... turning your shopping into a much more exciting
experience. MCB Visa is accepted at all ATMs across Pakistan as well as at 27 million
acceptance locations worldwide.
3.2.8 Traveler's cheques
MCB Bank has been at the forefront of providing its customers with new and innovative
products and financial instruments that are safe, secure and profitable. MCB Rupee
Traveler's Cheques were first introduced in 1993 as safe cash for traveling and travel
related purposes. The product has been extremely popular and is preferred over cash by
customers while traveling and in all walks of life.
3.2.9 Gift cheques
MCB Gift Cheques eliminates guesswork in trying to find out the perfect Gift for any
occasion birthdays, wedding, graduation and religious festivals.
Gift Cheque is beautifully packed in a Gold / Silver envelope with a personalized Gift
Card designed to suit all occasions. They are safer than cash, They are also available at
all TCS Express centers round the clock.
3.2.10 Products
Mala Maal Scheme
PLS Account
Saving 365 Account
Capital growth certificate scheme
Fund Management Scheme
Khanm Bachat Scheme
Khushali Bachat Account

36
Chapter 04
Financial Analysis of MCB Bank
This chapter is about the financial and general analysis of MCB based on the observation
during the eight week internship period and also from the discussion with the cooperative
staff of MCB
4.1 Financial Analysis
Financial analysis is the process of identifying the financial strengths and weaknesses of
the firm by properly establishing relationships between the items of balance sheet and
profit an loss account, Financial analysis can be undertaken by management of the firm,
or by parties outsides the firm via, owners, creditors, investors and others.
4.1.1 Balance Sheet Analysis Horizontal analysis
As on 31st December 2004-05-06-07-08
Table 4.1
Item
Increase (Decrease)
(2008-07)
Rupees (000)
Increase (Decrease)
(2007-06)
Amount
%age
Amount
% age
(52,664)
(0.13)%
72,17,907
22.23%
2,38,935
6.17
(27,69,498)
(42.10)
30,48,707
289.97
(2,0030,428)
(95.01)
(175,68,199)
(15.22)
496,02,945
78.13
435,49,044
19.88
207,21,443
10.45
12,37,704
7.69
69,69,967
76.98
19,31,390
10.79
7,55,426
6.20
Cash
Balance with other bank
Money at call and short notice
Investment
Advance
Operating fixed assets
Other assets
37
Table 4.1.1
Rupees (000)
Item
Increase (Decrease)
Increase (Decrease)
(2006-05)
(2005-04)
Amount
%age
Amount
% age
Cash
88,00427
37.18%
(1,67,704)
(0.70)%
51,10,972
348.62
(42,38,990)
(74.25)
Money at call and short notice
110,82,972
110.84
(9,66,469)
(8.81)
Investment
(59,95,171)
(8.62)
22,86,516
3.40
Advance
179,16,402
9.93
430,04,980
31.31
8,71,702
10.65
(6,89,944)
(11.21)
Other assets
(19,594)
(10.20)
1,82,633
2.28
The above Figure shows that
Cash is decreased in 2007 and 2008. It shows that the liquidity position of
bank is going to bad, so it is a negative sign for the bank.
Increase in money at call and short notice, this means that customers of
bank are very hesitant in making payments. Therefore this is negative sign
for bank.
In the field of investment there is decreasing trend with the passage of

time. It is common term of finance more investment more return
MCB is in position that it is earning more and more profit with passage of
time. Then bank can purchase more and more fixed assets, and it is bank is
doing. assets of the bank
38
More assets mean that bank has more capacity to pay of its liabilities.
There is increasing trend in field of fixed assets. It is due to purchase of
new assets.
Other assets have a decreasing trend which is not a positive sign; decrease
in assets decrease the worth of organization.
Balance sheet (Liabilities) Horizontal analysis
As on 31st December 2004-05-06-07-08
Table 4.2
Rupees (000)
Items
Increase (Decrease)
2008-07
Increase (Decrease)
2007-06
AMOUNT
AMOUNT
Deposits and other account
72,410
0.69%
33,89,379
47.80%
Borrowings
(16,42,991)
(42.48)
154,63,355
64.58
Bills payable
381,56,733
13.06
346,26,509
13.44
Other liabilities
(4,79,232)
(100)
(11,18,208)
(70)
Reserve fund & other reserves
(7,43,291)
(62.79)
11,83,586
UN-appropriated profit
95,36,477
81.39
5,44,969
4.87
(41,97,840)
(41.11)
50,21,453
96.79
Surplus on revaluation of
fixed assets
Table 4.2.1
Rupees (000)
39
Increase (Decrease)
Items
2006-05
Increase (Decrease)
2005-04
AMOUNT
AMOUNT
Deposits and other account
(14,46,995)
(16.95)
9,69,990
12.81
Borrowings
(34,34,026)
(12.54)
197,86,638
260.66
Bills payable
281,19,948
12.26
82,76,020
3.74
Other liabilities
(640)
(0.04)
(640)
(0.04)
20,85,601
31.95
29,79,158
36.36
(2,69,499)
(100)
(2,36,130)
(4.35)
69,446
1.29
Reserve fund & other reserves

UN-appropriated profit
Surplus on revaluation of
fixed assets
There is increasing trend in deposits and other accounts, which shows the
credibility of the bank.
Borrowing has decreasing in the year 2007 this is a positive sign for the
bank.
Bills payable decreased in 2008, but it is a minimal change.
Other liabilities have a increasing trend it is negative sign, because

increase in liabilities can week the liquidity position of bank.
Share capital is increased that shows the credibility of the bank.

Profit and loss accounts (income) Horizontal analysis
For the period ended December 2004-05-06-07-08
40
Table 4.3
Item
Rupees (000)
Increase (Decrease)
Increase (Decrease)
(2008-07)
(2007-06)
Amount
%age
Amount
% age
82,62,910
25.99%
60,08534
23.30%
2,44,053
9.26
3,23,375
13.99
Income from dealing in

foreign currencies
34,156
4.92
1,398
0.20
Dividend income
(1,80,988)
(28.62)
(1,79,501)
(22.11)
Other income
6,38,621
113.38
-7,292
(1.27)
Interest earned
Fee commission
41
Table 4.3.1
Item
Rupees (000)
Increase (Decrease)
Increase (Decrease)
(2006-05)
(2005-04)
Amount
%age
Amount
% age
Interest earned
80,21,829
45.17
86,72,369
95.47%
Fee commission
(1,37,715)
(5.62)
4,56,594
22.91
Income from dealing in

foreign currencies
1,60,555
30.21
38,717
7.85
Dividend income
3,31,457
69.00
1,01,436
26.77
Other income
(5,14,071)
(47.39)
5,08,569
88.29
Interest income decrease with great proposition, which is not favorable. It means
that interest received by the bank is decreasing with the passage of time. It is not
good for a banking company.
As we all know that banks provide many services for their customers and also act
as an agent of the customer. The banks receive fees and commission for their
services; it is a main source of bank to receive fee and commission from their
customers. In case bank is taking more fees as compared to previous years. This
would be a positive sign for the bank.
In foreign currency dealing and dividend there is huge increasing trend which
shows the investment of bank in good position.
Other income increases in 2008 this increase means positive situation.
42

Profit and loss accounts (expenses) Horizontal analysis
Table 4.4
Item
Rupees (000)
Increase (Decrease)
Increase (Decrease)
(2008-07)
(2007-06)
Amount
%age
Amount
% age
Interest expensed
3734103
47.51%
3333460
73.66%
Administrative expenses
2139997
39.33
(1042287)
(16.07)
13863
(370.37)
(15154)
(132.80)
Other charges
278211
43.28
473886
710.38
Tax
478872
7.87
(46801)
(99.57)
Bad debts written off directly
3734103
47.51
3333460
73.66
Other provision
Table 4.4.1
Rupees (000)
Item
Increase (Decrease)
Increase (Decrease)
(2006-05)
(2005-04)
Interest expensed
Amount
%age
Amount
% age
17,43,891
62.69%
7,23,828
35.17%
Other provision
23,102
0.35
(7,84,710)
(10.83)
Other charges
84,151
(115.68)
(2,22,333)
(148.62)
Tax
(1,12,133)
(62.69)
1,36,977
327.19
43
22,62,200
55.22
24,69,888
151.88
Return on deposit decreases which shows good sign and it is due to decrease in
return rate.
Administrative expenses, provision for diminution and provision against nonperforming loan shows a increasing trend that is not favorable.
Bad debts decreased with huge amount that is a positive sign.
Profit before taxation has increased with a significant proportion. Very good sign
for bank. Taxes increase, which is not bad because it is interrelated with profit, if
profit increased, tax also increase.
4.1.2 Balance sheet vertical analysis (assets)

As on 31st December 2004-05-06-07-08
Table 4.5
Item
Rupees (000)
2004
2005
2006
2007
2008
9.19%
7.92%
9.48%
9.61%
8.90%
2.20
0.493
1.92
0.93
0.92
notice
4.23
3.34
6.16
0.25
0.92
Investments
25.92
23.25
18.55
27.93
21.96
Advance
52.98
60.35
57.94
53.02
58.95
2.37
1.82
2.64
3.89
3.88
Other assets
3.08
2.73
0.05
4.33
4.45
Cash
Money at call and short
44
Total
100
100
100
100
100
Figure 4.1
Vertical Analysis of Assets
3%
2%
Cash
9%
2%
Balance with other

Bank
Money at call and
Short notice
Investments
4%
26%
Advance
54%
Operating fixed
Assets
Other assets

Vertical analysis (Liabilities)
As on 31st December 2004-05-06-07-08
Table 4.6
Rupees (000)
Item
2004
Bills Payable
3.09% 3.10% 2.35% 2.94% 2.73%
Borrowings
3.10
9.95
7.94
11.08
5.88
Deposits and other accounts
90.37
83.38
85.46
82.19
85.74
Sub-ordinate loan
0.65
0.58
0.53
0.13
Deferred tax liabilities-net
2.66
0.33
0.11
Other liabilities
0.11
2.97
3.70
3.29
5.51
Surplus on revaluation of assets net of tax
2.18
1.97
1.72
2.87
1.56
Liabilities against assets
2005
2006
2007
2008
45
Total
100
100
100
100
100
Figure 4.2
Vertical Analysis of Liabilities
Bills Payable
2%
0%
Borrowings
3%
3%
1%
3%
Deposits and other

Accounts
Sub-ordinate loan
Deferred tax Liabilities-net
88%
Other liabilities
Surplus on Revaluation of
Assets net of tax
46

Vertical analysis (income)
Table 4.6
Rupees (000)
Item
2004
2005
Interest earned
72.53%
Fee commission
2006
2007
2008
79.61% 85.46%
87.54%
88.39%
15.90
10.98
7.66
7.25
6.35
currencies
3.93
2.38
2.29
1.90
1.60
Dividend income
3.02
2.15
2.69
1.74
0.99
Other income
4.59
4.86
1.89
1.55
2.65
Total
100
100
100
100
100
Income from dealing in foreign
5%
Vertical Analysis of Income

Interest earned
3%
4%
Fee commission
16%
Income from dealing
in foreign currencies
Dividend income
72%
Other income
47

Vertical analysis (expenses)
Table 4.7
Rupees (000)
Item
2004
2005
2006
2007
2008
Interest expensed
18.50%
20.69%
25.94%
39.45%
43.47%
65.14
48.05
37.16
27.30
28.42
Other provision
1.34
-0.54
0.06
-0.01
0.038
Other charges
0.37
1.33
0.38
2.71
3.45
Tax
14.62
30.46
36.44
30.54
24.61
0.01
0.008
0.26
0.0009
Total
100
100
100
100
100
Figure 4.3
Vertical analysis of Expenses
0%
15%
0%
1%
Interest expensed
19%
Administrative
Expenses
Other provision
Other charges
Tax
65%
Bad debts written off

Directly
48
4.3 Ratio Analysis

Ratio analysis is an important and age-old technique of financial analysis. Ratios
are important and helpful in the reference that:
These simplify the comprehension of financial statement and tell the whole story
of changes in the financial conditions of the business.
These provide data for inter-firm comparison. The ratios highlight the factors
associated with successful and unsuccessful firms, also reveal strong and weak
firms.
These help in planning and forecasting these can assist management in its basic
functions of forecasting, planning, coordination and control.
These help in investment decision in case of investor and lending decision in case
of Bankers etc.
However, the ratios are only indicators, they cannot be taken as final regarding
good or bad financial position of the business other things have also to be seen.
4.3.1 Net Interest Margin Ratio

Table 4.8
Year
Rupee (000)
2008
2007
2006
239,32,935*100/
149,74,764*100/
400,49,505
317,91,754
177,56,232
71.05%
75.28%
84.33%
Net Interest*100/ Total 284,56,583*100/

interest income
49
Percentage
Figure 4.4
Net Interest Margin Ratio
90.00%
84.33%
85.00%
80.00%
75.28%
75.00%
71.05%
70.00%
65.00%
60.00%
2008
2007
2006
Year
Profit has decreased in the current year 2008 as compare to the previous year showing
profitability has got down which is not good sign for the bank.
4.3.2 Earning Asset Ratio
Table 4.8
Rupee (000)
Year
2008
2007
2006
Earning asset*100/
344,399,300*100/
335,369,748*100/
282,807,271*100/
445,285,758
412,900,841
342,108,243
77.34%
81.22%
82.66%
Total asset
50
Percentage
Figure 4.4
Earning Asset Ratio
84.00%
82.66%
81.22%
82.00%
80.00%
77.34%
78.00%
76.00%
74.00%
2008
2007
2006
Year
This shows that there is decrease in earning assets in 2008 there is enough difference
between 2008 and 2007, while in 2007 to 2006 there is very small change.
4.3.3 Operating cost to income ratio
Rupee (000)
Table 4.9
Year
2008
2007
2006
60,79,342*100/
65,60,711*100/
153,23,227
164,41,670
121,42,398
55.54%
36.97%
54.03%
Non interest cost*100/ 85,11,413*100/

Net income
51
Percentage
Figure 4.5
Operating cost to income ratio

55.54%
60.00%
54.03%
50.00%
36.97%
40.00%
30.00%
20.00%
10.00%
0.00%
2008
2007
2006
Year
The operating cost during 2006 were high and it was decreased in 2007 that decreased
from 54% to 36% but in 2008 the percentage of operating cost highly increased and again
reached to 55%
4.3.4 Equity to total asset Ratio
Rupee (000)
Table 4.10
Year
2008
2007
2006
Equity *100/Total
54,120,812*100/
47,338,167*100/
35,656,675*100/
445,285,758
412,900,841
34,210,82,243
12.15%
11.46%
1.04%
asset
52
Percentage
Figure 4.6
Equity to total asset ratio
14.00%
12.00%
12.15%
11.46%
10.00%
8.00%
6.00%
4.00%
1.04%
2.00%
0.00%
2008
2007
2006
Year
This ratio is more meaningful for shareholders who are interested to know the profit
earned by the bank because the dividend paid from available profit higher ratio means
factor of production fully utilized and good position. In 2006 it was less but there is jump
in 2007 and in 2008 it remains constant with a small increase.
4.3.5 Credit to deposit Ratio
Rupee (000)
Table 4.11
Year
2008
2007
2006
Advances*100/
2,625,08,830*
2,189,59,786*
1,982,39,155*
Deposit
100/ 3,302,45,080
100/
100/ 2,574,61,838
2,920,88,347
79.48%
74.96%
76.99%
53
Percentage
Figure 4.7
Credit to deposit Ratio
79.48%
80.00%
79.00%
78.00%
77.00%
76.00%
75.00%
74.00%
73.00%
72.00%
76.99%
74.96%
2008
2007
Year
2006
Credit deposits ratio means liquidity position of the bank. This ratio is very low means
that the bank has idle fund but even bank has not liquidity problems. This shows the
strategic policy of the bank and efficiency of the bank.
4.3.5 Loans loss coverage Ratio
Rupee (000)
Table 4.12
Year
Pre
2008
tax
income
+ -
provision for loans*

100/Debt written off
-
2007
2006
(130,18,487+
(225,26,311+
29,59,583)*100/
10,14,540)*100/
199
47,000
8029.1%
50,086.9%
54
Percentage
Figure 4.8
Loans loss coverage Ratio
50086.90
%
60000.00%
50000.00%
40000.00%
30000.00%
8029.10
%
20000.00%
10000.00%
0.00%
2007
Year
2006
The bank has made enough control over the losses on loans in 2008 as compared in 2007.
This is sign of good performance of the bank.
4.3.6 Return on earning asset ratio
Rupee (000)
Table 4.13
Year
2008
2007
2006
Net income*100/
153,23,227*100/
164,41,670*100/
121,42,398*100/
327,525,440
327,525,440
327,525,440
4.67%
5.01%
3.70%
Average earning asset
Percentage
Figure 4.9
Return on earning asset Ratio
6.00%
4.67%
5.01%
2008
2007
3.70%
4.00%
2.00%
0.00%
2006
Year
55
Interpretation
This ratio has an increasing trend. It means the assets of the business are fully utilized in
more and efficient way and also shows the favorable trend of the business, this ratio was
low in 2006, but it improved in 2007 but in year 2008 it was again decreased.
4.3.7 Return on deposits
Table 4.14
Rupee (000)
Year
Net Profit*100/ total
deposits
2008
2007
2006
152,65,562*100/
121,42,398*100/
153,23,227*100/
292,098,066
274,61,838
330,245,080
4.19%
4.71%
4.63%
Percentage
Figure 4.10
4.80%
4.60%
4.40%
4.20%
4.00%
3.80%
Return on deposits
4.71%
4.63%
2007
Year
2006
4.19%
2008
56
4.4 Swot Analysis

4.4.1 Strengths
One of the major strengths of MCB is that it has very stable deposit base.
MCB has a brand name and recognition.
MCB has captured majority of potential customers in Pakistan.
MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC etc.
Customer default rate is lower as compared to other banks.
MCB has the largest ATM network in the country.
Meeting the challenges of latest Technology by introducing Smart card remit

express, mobile banking etc.
It is the only bank to receive the Euro money Award for the Best Bank in
Pakistan of its Excellence for the fifth time in the last six years.
The policy makers of MCB are the trendsetters in the Banking industry of
Pakistan and have been providing the market with continuous innovation through
products like MCB Master Card, MCB Smart and Debit cards, Rupees Travelers
Check and services like ATM, Remit Express, MNET, Call Centers and etc.
MCB introduced its Online Support, which is specifically meant for existing
MCB Virtual Banking (Internet) customers, requiring help on various e-Banking
issues.
Variety of deposit and advance related products to meet the needs of different
types of customers.
Pioneer in introduction of MCB Master Card and RTC, which minimize the
degree of risk ness.
57
4.4.2 Weaknesses
Decision making process is very slow.
MCB RTC is useable only in Pakistan.
Some management positions needed are not professional.
Employees dissatisfaction due to ill treatment and improper reward system.
The pay scale of the employees is low as compared to its competitors.
They dont have branches in rural areas, which make it almost impossible to
participate in micro financing activities.
The lack of proper infrastructure in small branches is also a major weakness.
4.4.3 Opportunities
Leasing sector is growing in Pakistan for the last two to three years, which
provides opportunity to MCB to go ahead in this area as well.
Financing to small/medium cottage industries will definitely increase its advances

and profitability as well.
Islamic Trading Based Banking can enhance the business of the bank.
Job enrichment of the employees will result in higher customer satisfaction

because a satisfied employee means a satisfied customer.
Higher pay scale will result in lower turnover of highly skilled employees.
Govt. is taking very bold steps to promote Information Technology in

Pakistan. MCB has an opportunity to improve more in technology.
Stock exchange is very volatile and takes immediate effect. So, in the time of
crises, conservative investors return to saving deposits.
MCB is surrounded by many competitors. It has an opportunity to do

aggressive marketing to increase its business.
58
Another opportunity is to innovate their product line and keep on giving

services that satisfy customers in a better way.
Pakistan has a favorable market for Islamic Banking. People have become
more religion conscious, especially after the event of 9/11. They want to divert
more towards religion and religious activities, which make it feasible for
Islamic Banking to be promoted in the country.
The Bank will be implementing the full suite of the latest version of
SYMBOLS Version 8. SYMBOLS have proved it to satisfy every aspect of
technology and functionality as a true universal banking solution.
MCB has also an opportunity to expand its new technological advancement like;
Tele-bank and Internet banking efficiently.
To open overseas branches through out the world like National Bank and HBL or
merger with other foreign banks outside Pakistan.
4.4.4 Threats
Other private commercial bank with sound profitability is also a threat to MCB
e.g. UBL, Bank Al-Falah, HBL etc.
Privatization of other domestic banks has also increased their services.
For the last of many years, Pakistan is facing economic and political instability,
which is a big threat.
Foreign banks are flourishing in field of consumer financing.
People dont prefer banking culture. They mostly prefer cash transactions.
MCB has many competitors, which are continuously increasing its products and
marketing aggressively. It may cause its customers to shift to competitors.
Continuous turnover of the highly skilled employees to it competitors can be

detrimental in the long run as well as short run.
59
MCB is a conservative bank and it is a major threat for MCB in the current
risk-taking environment.
Foreign banks continue to dominate this business segment with CITI bank and
Standard Chartered leading, with more than hundred thousand card members
each.
The MCB Islamic Banking system has very few products yet those are
competitive. It needs to work on its product line in order to improve it.
60
61
Chapter 05
Conclusions & Recommendations
5.1 Conclusion:
During my internship training at MCB Mansehra Branch I have learned a lot. It was a
geed experience for me. In April 1991, the, MCB became the first Pakistans Privatized
bank. After privatization, the profitability and performance of the bank has increased.
Today MCB represents a bank that has grown with time.
5.1.1 Good Features:
The staff of foreign exchange department is highly professional. All the members of this
department are highly educated and trained they work in a proper way and follow all the
ruled and regulations, that is why this department of this branch is most professional and
highly profitable department of the whole MCB.
5.1.2 Drawbacks and Suggestions:
It has been observed that every system has some defects. Although the management is
always alert for modification where the defects are notified.
5.1.2.1 Drawbacks:
Duty Hours Are not Properly followed the working hours are from 9:00 A.M
to 5:00 P.M. this is because of extra burden of work on them and desire to
fulfill the goal of the branch
It has been observed that most of the staff member knowledge is limited. They
only know their routine duties. If any thing other than normal routine occurs,
they are confused.
5.1.2.2 Suggestions:
Before adopting or changing any rules or policies of the bank, efforts should
be made to first of all provide sufficient training to the staff. Providing proper
training to the staff member periodically
62
For avoiding duty timing problem, all the departments should have
appropriate staff members.
5.1.3 Facility of Computer Cell in All Big Cities:

Mostly all the big branches of MCB are computerized. Programs are installed by the head
office and programmers work like operators. They are strictly prohibited to see the
programs. In case of default, the analyst comes from head office and removes the fault. It
takes more time.
In order to over come this, it is necessary that computer cells should be established in all
big cities in Pakistan for providing the immediate service. These will also helpful in
decreasing the expenses of air tickets and TADA of analyst.
5.2 Recommendations:
Recommendations are considered to be the most important part of internship report,
without which no report is considered complete and meaningful.
The recommendations for improvement are:
Unproductive branches in remote areas should be closed down to reduce the

administrative costs.
The branches that are facing losses should be given special attention to improve
those branches.
Efforts should be made to increase the market share.
Aggressive and proactive management style should be followed to increase HR

efficiency.
Time deposits should be properly administered.
Stuck up portfolio of Finances should be effectively reduced.
Dormant/Non-Operating accounts should be closed to save account maintenance

costs.
63
Fund Investments should be made after careful analysis.
Bank should disburse its loans to diversified fields.
EURO Money Awards for MCB should be publicized and propagated to get more
positive opinion of the people.
Bank should expand its branch network abroad.
MCB Launched of NEW PRODUCTS to meet dynamic and ever changing

requirements of its customers.
64
Reference
Gup, B. E. and Kolari, J. W. (2005); Commercial Banking: The Management of Risk, (3rd
Ed), John Wiley & Sons, Inc., New Jersey.
Siddiqi, A. H. (2007); Practice and Law of Banking in Pakistan, (8th Ed), Royal Book
Company, Karachi.
Van Horne, J.C and J.M Wachowiez, 10 th Edition (1998), Fundamentals of Financial
Management. New York: Prentice Hall International, Inc
Annual Reports of MCB: 2005,2006,2007,2008
http://www.finance.gov.pk/survey/home [Accessed on OCT10, 2009]
http://www.wikipedia.org/wiki/history_of_banking [Accessed on OCT 12, 2009]
http://www.mcb.com.pk
http://www.mcb.com.pk
65
ANNEXURES
Annexure A: Financial Statements
66
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Internship Report on

MCB Main Branch, Mansehra

Submitted by: Muhammad Abid Jadoon

Supervised by: Miss. Faiza Sajjad

Department of Management Sciences

Submitted by: Muhammad Abid Jadoon

Supervised by: Miss. Faiza Sajjad

This internship report is submitted in partial fulfillment of the requirements

Department of Management Sciences

Department of Management Sciences

Dr. Muhammad Mushtaq Khan. _____ _______________ Signature ________________

Muslim Commercial Banks Certificate ...

My Honourable Faculty Members of CIIT, specially to

Muslim Commercial Bank.

Industrial Development Bank of Pakistan

State Bank of Pakistan

Agricultural Development Bank of Pakistan

Auto Teller Machine

Assets Product Division

Investment Product Division

Balance Transferred Facility

National Investment Trust

Profit & Loss Sharing

Human Resource Management

Electronic Technology Department

Management Information System

Foreign Demand Draft

To give a comprehensive review of MCB.

To analyze MCBs organizational, financial and other aspects.

To present some feasible solutions for the problems pertaining to MCB.

To apply the knowledge gained in practical field.

1.3 Merits of the Report

Interviews and discussion with staff members

Direct dealing with bank clients.

1.5.2 Secondary Sources

Annual reports of MCB

Brochures & Manuals.

Previous Internship Reports.

1.6 Limitations of the Report

and Nuremburg. In order to streamline Banking organizations and techniques,

To have highly motivated team.

Provide quality customer service.

Expand and penetrate the customer base.

Pay regular dividend and increase our share value.

2.7 Credit rating

To participate in the economic development of the region.

To pay special attention to the needs of the underdeveloped areas.

To act as a bridge between the foreign and local entrepreneurs.

To encourage industry based on locally fabricated machinery and raw material.

2.12 Functions of MCB

2.12.3 Working as an Agent

Acting as a trustee or executor

Execution of standing instructions

2.12.4 General Utility Services

Clearance of utility bills

Providing locker facility

Accepting Bills of Exchange

2.13 Number of Branches

N.W.F.P. & AJK

(Source: self made)

2.15 Computerization of MCB

Mobile phones with WAP or free SMS

Dr. Muhammad Mushtaq Khan. _ _ Signature ______