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Dedication

I dedicate my work to my family and my teachers. Without their help and encouragement it would never have been possible for me to accomplish this task within the specified time limit.

University of the Punjab, Gujranwala Campus

PREFACE

Doing internship is a pre-requisite of BBA (Honors) and for that I got the opportunity to join the MCB Qila Didar Singh branch for a period of 6 weeks. It was a great experience as I got practical knowledge of how work is done in real life and how the theories we study in BBA are applied in practical field. It is always fun to learn new and creative things and it was full of learning and time passed very quickly. The Material of this report has the glimpse of MCBs operations and departments I searched for some basic data from internet and some is asked from the colleagues whom I thank from the bottom of my heart. In the end I would like to thank all the people who gave me opportunity to learn practically and were involved helping me in the accomplishment of this task.

Zeshan Saeed

University of the Punjab, Gujranwala Campus

Acknowledgement

Every praise is due to ALLAH alone and his prophet (peace be upon him) who is forever a torch of guidance and knowledge for humanity as a whole. I thank Allah, who is the holder of my breaths, without his order nothing is possible. I am highly thankful to my respectable teachers and friends and family members who were my supporters throughout my educational career, further I thank all the employees of the branch MCB bank Limited, where I have done my internship. I have set light, an ever-burning flame of gratitude and deep sense of obligation to my honorable teachers of Department of Business Management for their valuable guidance, constructive criticism and inspiring attitude during my studies. I appreciate and thanks to all the member of the faculty. Besides, this internship program makes me realize the value of working together as a team and as a new experience in working environment, which challenges us every minute. Not forget, great appreciation go to the rest of MCBs staff that helped me to write internship report on MCB from time to time during the project. The whole program really brought us together to appreciate the true value of friendship and respect of each other. Last words are lacking to express my feelings and indebtedness to my affectionate Family and Friends for their love, appreciations, which always stand by me mentally and spiritually during all years of my study.

University of the Punjab, Gujranwala Campus

Executive Summary
MCB bank limited with more than 60 years of experience as one of the leading bank in Pakistan, was incorporated on July 9 1947. The bank has journeyed remarkable tenure of more than half a century of competitively edged and well positioned heights of success by deploying quality banking, heads on technological department, professionally leading management and prudent and ethical work methodologies MCB was nationalized along with other private banks in 1974 as part of government of Pakistans economics reform movement and was later privatized to nishat group lead consortium in 1991. The bank has also been acknowledged though prestigious recognition and award by euro money, MMT, Asia money, SAFA (SAARC), the asset and the Asian bank. My duration of internship at MCB was started from 2 July and ended on 10th august 2012. It was an honor to learn precious skills from highly motivated and professional individuals from different departments of the company. The six weeks time was even not enough to know everything about such large organization but managers w cooperated with me in such a way that it was so easy to understand what this organization is all about. During the internship I found many qualities, skills in myself because I was not aware before. It gave me recognition of whole new world of professional business life. It helped me to know about people, their attitude, level of motivation, professional abilities, skills, values, cultural diversification etc. During my internship at the MCB, I worked in remittances, advances, cash, deposits, customer service department office and successfully completed all tasks and duties were allocated to me. Therefore in the internship report on MCB is presenting true facts of this MCB bank branch and overall of this organization. MCB bank limited is group of companies, has a vast human resource management system as it is a big organization having operative in several countries. MCB bank limited has its human resource development programs to compete in the rapidly changing business environment in order to accelerate. So it has to train and look after the professionals in almost every field like production managers, human resource managers, finance managers, operation managers, marketing managers, research and development managers and the lower level employees and labor.

University of the Punjab, Gujranwala Campus

The employees are well trained and are compensated by MCB bank limited to a larger extent. The bank has very good system of hiring new employees. Keep good standards of employee selection. Selection process is structured and of high quality. Sources of recruitment is internal as well as external, incentives are being given to employees on good performance, good promotional system etc. The human resource department has employment forecasting system that enables it to fulfill the needs of human resource of such a large organization. I explained some marketing strategies adopted in MCB. And marketing skills training programs held in MCB. Current financial records of MCB also are in this report. I conducted SWOT analysis of the MCB bank limited and my findings are explained here under. Strengths are safe and secure investment venture, innovation and new technology adapter employee satisfaction, well equipped and fully secured environment, modernized banking (online + internet) and complete supervision at every level. Weaknesses are weaker organizational culture, HR policies (appraisal, compensation, career planning) , networking problems regarding ATM services in rural areas. Opportunities are information technology ( MIS), establishing more Foreign branches, local setup should be expanded, internet banking, some more innovation products and services should be introduced. Threats are downsizing is potential threat for MCB employees and they are losing their confidence towards bank performance, fierce competition, changing environment of banking, economical political condition are a great threat, entrance of international banks. Then there is PEST analysis of MCB, which can be helpful for setting future strategies for bank. Future outlook of bank is also mentioned in this report. Conclusion and recommendations are important part of this report. Bibliography regarding data collection and references where from information has been obtained is available.

University of the Punjab, Gujranwala Campus

List of Acronyms

MCB SBP EBIT DD TT MT EPS RTC SEVP AVP SVP VP GM BM BOM HO SAARC

Muslim Commercial Bank State Bank of Pakistan Earnings before Interest and Taxes Demand Draft Telephonic Transfer Mail Transfer Earning Per Share Rupee Traveler Cheque Senior Executive Vice President Assistant Vice President Senior Vice President Vice President General Manager Branch Manager Branch Operational Manager Head Office South Asian Alliance for Regional Cooperation

University of the Punjab, Gujranwala Campus

Bank
There is no single definition of bank. Different experts have different opinion about the term bank. Mostly experts said that bank words are originated from two words Baucus or Banqui which means bench.

According to Kent: A bank is an organization whose principle operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing it to others for expenditure

According to Crowther Bank is a dealer in debts---his own and of other people.

Brief Introduction of Banking Sector


Banking in its modern form and structure started in Britain when many of the Lombardy merchants came to England in the fourteenth century and settled in the parts of the city of London, now called Lombard Street. The early banker Jews in Lombardy transacted their business at benches in the market place. When a banker failed, his banco was destroyed by the people. This practice gave rise to the word bankrupt. Over the period of time they discovered that large sum of the money were left in their custody for long periods; which suggested the use of cash to advance loans to other person for a fixed period of time and considerably high rate of interest. Thus began the issue and deposit banking of the modern times. Some of the enterprising goldsmiths issued cheque books for the attraction of their customers; and thus another step in the evolution of banking had taken place.

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History of 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 nonMuslims 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 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 favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the Governor General of Pakistan Quaid-E-Azam Muhammal Ali Jinah 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 banks Saving banks Co-operative banks Specialized 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

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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, specialized 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.

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Introduction of the Organization


Muslim Commercial Bank is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. In 1974, MCB was nationalized along with all other private sector banks. This led to deterioration in the quality of the Banks loan portfolio and service quality. MCB was privatized in 1991. During the last twenty one years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its non-performing loans via improved risk management processes. MCB besides being money financial organization have rendered invaluable services in the economics and social developments of our country. MCB today, represents a bank that has grown with time, experience and Pakistan. A major financial institution, in scope and size, it symbolizes a fully-grown tree. Evergreen, Strong, and firmly rooted. To accede to international capital markets, the bank launched Global Depositary Reciepts (GDRs) in 2006. It was the first Pakistani Bank that got its GDRs listed on the London Stock Exchange. In 2008, the Bank entered into a strategic partnership with Maybank, Malaysia, which owns 20% stake in it through Mayban International Trust (Labuan) Berhad. Since 2008, has international indirect regional presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million approximately.

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Subsidiaries
MCB Financial Service Limited Holding: 99.999%

Profile: Float, administer and manage modarba funds, modarbas and also acts as trustees of various mutual funds. MNET Services (Private) Limited

Holding:

99.95%

Profile: One of the largest service providers for Electronic Transactions to various financial institutions/banks including included related service in Information Technology, software and data processing. MCB Trade Services Limited Holding: Profile: 100% Provides Agency services.

Arif Habib Investments Limited Holding: 51.33%

Profile: Asset management, investment advisory, portfolio management, equity research and underwriting. MCB Leasing Closed Joint Stock Company, Azerbaijan Holding: 95.00%

Profile: It leases various types of industrial equipment, public transports, real estate and retail auto leases. With reference to significant holding, the following entities are associates of the Bank; First Women Bank Limited Holding: 26.78%

Adamjee Insurance Company Limited

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Holding:

29.13%

Euronet Pakistan (Private) Limited Holding: 30%

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History of the Organization


MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947. MCB is not an overnight success story rather good track of services are responsible for the leaps and bounds progress. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka from where it commenced business in August 1948. In 1956, the Bank transferred its registered office to Karachi, where the Head Office is presently located. Thus, the bank inherits a 64 years legacy of trust in its customers and the citizens of Pakistan. MCB believes in organic and opportunistic growth, branding value through effective communication, business diversity through commendable and innovative product and service Portfolio, creating equal serving of technological and human capital to rural and urban demographic platforms and rationalization of ethical behavior and culture to enhance customer base and enable employee retention. MCB Bank Limited has a solid foundation of over 60 years in Pakistan, with a network of over 900 branches, over 750 of which are Automated Branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch, which as a combination is considered to be the core competence of MCB. MCB has become the only bank to receive the Euro money award for the fourth time in the last five years. MCB won the "Best Bank in Pakistan" in 2005, 2004, 2003, 2001, and in 2000 the "Best Domestic Bank in Pakistan" awards. In addition, MCB also has the distinction of winning the Asia Money 2005 & 2004 awards for being "The Best Domestic Commercial Bank in Pakistan". Twenty one years after privatization, MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer. MCB is also catering to the growing middle class by providing new asset and liability products. MCB looks with confidence at year 2005 and beyond, making strides towards fulfillment of its mission, "to become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work".

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Awards
2009 Asiamoney: 2009 The Asset: Best Domestic Bank in Pakistan Best Domestic Bank in Pakistan

2008 Euromoney: Best Bank in Asia 2008 Euromoney: Best Bank in Pakistan 2008 Asiamoney: Best Domestic Bank in Pakistan 2006 Asiamoney: Best Domestic Bank in Pakistan

2006 Euromoney: Best Bank in Pakistan 2005 Asiamoney: Best Domestic Bank in Pakistan

2005 Euromoney: Best Bank in Pakistan 2004 Euromoney: Best Bank in Pakistan 2004 Asiamoney: Best Domestic Bank in Pakistan

2003 Euromoney: Best Bank in Pakistan 2001 Euromoney: Best Bank in Pakistan 2000 Euromoney: Best Bank in Pakistan

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Calendar of Major Events

Incorporation..1947 Nationalization...1974 Investment in first women bank... 1989 Privatization...1991 Incorporation of MCB financial services limited..1992 Investment in Adamjee insurance company limited.2004 Incorporation of asset management company limited...2005 Change of name from Muslim Commercial Bank limited2005 Strategic acquisition by Maybank.2008

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Competitors
National Bank of Pakistan Bank al Falah United Bank Allied Bank of Pakistan Habib Bank LTD Faysal Bank Indus Bank Soneri Bank Bank of Punjab Askari Bank etc.

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MCB Today
Since privatization, MCBs growth has been phenomenal. Today, MCB in one of the largest foreign banks in Sri Lanka, the first bank in Pakistan to launch Global Depository Receipts (GDRs) in 2006, has strategic foreign partnership with Maybank of Malaysia which holds20% shares in MCB through its wholly owned subsidiary Mayban International Trust (Labuan) Berhad. Since 2008, MCB has international indirect regional presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million approximately. MCB is reputed as one of the soundest financial institution and as one of the leading banks in Pakistan with a deposit base of PKR. 462 billion approximately and total assets of PKR 605 billion approximately. The bank is versed as one of the oldest and most responsible banks in Pakistan and has played pivotal role in representing the country on global platforms while being one of the few institutions that are recognized and traded in the international market. The bank has also been acknowledged though prestigious recognition and awards by Euro money, MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker.

Prominent Features of MCB


SBP allowed exporters obtain foreign currency loans against firm contracts L/Cs and MCB made arrangements for clients to use the facility at EPZ branch, Karachi and off-Shore Banking Unit, Bahrain for the purpose. It also offered services to clients for procuring foreign currency loans from abroad. The other significant development is the launching of the MCB Imdad-e-Bahami Scheme for Housing Improvement in addition to commercial lending; MCB has accepted the responsibility to offer social lending. The scheme, launched with the co-operation of the Swiss institution aims at providing easy credit to low income group is urban areas to improve their living condition.

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Honorable awards won by MCB Bank Limited during 2011


CFA Association of Pakistan award for Best Bank of the Year and The Most Stable Bank of the Year Best Bank in Pakistan by Euro money Best corporate report award under the Bank category for the second consecutive year by ICAP & ICMAP Joint 2nd runner-up for best presented accounts 2010 in the banking sector by South Asian Federation of Accountants

2011 was a year of improving quality


Compliance and risk mitigation remained our top agenda Improvements in information technology and branch infrastructure remained our priority Further centralization and check and balances round the year to improve efficiency Branch and ATM network enhanced to outreach our customers Growth in Islamic Banking was achieved through launch of 11 more products From MCB to MCB-Bank for Life as an initiative for corporate branding and image building Enrichment of corporate and social responsibilities

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Compliance Status of MCB


Name & Address MCB Bank Limited MCB 15 Main Gulberg, Lahore

Legal Form

Public Limited Company. Listed on Karachi, Lahore & Islamabad Stock Exchanges in Pakistan.

Name of External Auditors

M/s A.F. Ferguson & Company.(Chartered Accountants).

Name of Regulatory State Bank of Pakistan (Central Bank). Body

Main Banking

Commercial, Consumer, Corporate, Correspondent and Islamic Banking.

Categories of shareholders - as of December 31, 2012 Pattern of Share Holdings Description Shareholding Percentage

Directors, CEO and their spouse and minor children

98927007

10.7529

Associated Companies, Undertakings & Related Parties

197,310,846

21.2882

NIT & ICP

486,497

0.0529

Banks, DFI & NBFI

3,175,647

0.3452

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Insurance Companies

1,153,092

6.6494

Modarabas & Mutual Funds

1,153,092

1.0692

Public Sector COS. & CORP.

27,079,155

2.9436

General Public (Local)

135,480,447

15.1185

General Public (Foreign)

2,541,784

0.382

Foreign Companies

333,904,991

36.2484

Others

59,043,576

6.4187

Company Total

919,860,123

100.00

Chairman President & CEO

Mian Mohammad Mansha Mr. M.U.A. Usmani President

Banking License No.

BCD (1) 17-66 dated 8th December 1966.

Company Registration No.

0000115

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National Tax No.

0700267-0

Compliance Status

Compliant with KYC and AML regulations prescribed by State Bank of Pakistan.

Compliance Document required USA PATRIOT ACT Recertification from Correspondent Banks USA PATRIOT ACT Certification MCB AML KYC Questionnaire

Compliance Documents for Correspondent Banks

Wolfsburg AML_Questionnaire CCD KYC AML PROCEDURES HANDBOOK AML KYC Questionnaire Filled in by MCB for our correspondents

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Highlights
Assets of the Bank increased by 15% to Rs. 653 billion with Rs. 103 billion increase in Investments and investment to deposit ratio improved from 49.39 % in 2010 to 64.47% in 2011 Deposits increased to Rs. 491 billion with 16% increase in saving, 11% in current and 14% in fixed deposits. CASA maintained at 81% with Rs. 399 billion CASA base. Gross advances came down to Rs. 248 billion as compared to Rs. 274 billion in 2010 and advances to deposit ratio (ADR) down from 63.55% in 2010 to 50.52% in 2011 mainly due to conversion of circular debt and commodity financing into investments. Shareholders Equity increased to Rs. 79 billion. Profit after tax increased by 15% to Rs. 19.4 billion while profit before tax increased by 20% to Rs. 31.5 billion. Markup income increased by 24% to Rs. 68.1 billion bringing net markup income to Rs. 44.5 billion with a net increase of 21%. Rs. 8.1 billion recorded for non-markup income went up by Rs. 1.8 billion owing to 19% increase in fee and commission, 84% increase in dividend income and 79% increase in capital gains. Controlled growth in administrative expenses in 2011 with a gross increase of 15% (excluding pension fund reversal). Yield on earning assets and cost of deposits increased by 126 bps and 39 bps respectively over 2010. Income from dealing in foreign currencies increased by 46% due to higher transaction volumes and opportunistic leveraging of higher market volatility. Growth in NPLs by 8.64% in 2011 (2010: 5.62%, 2009: 27.2%). Coverage ratio improved from 77% in 2010 to 82% in 2011. Capital adequacy ratio down from 22.01% in 2010 to 21.79% in 2011 due to increase in risk weighted assets by Rs. 46 billion. Return on assets improved from 3.13% in 2010 to 3.18% in 2011. Earnings per share increased to Rs.23.23 in 2011 as compared to Rs. 20.18 in 2010.

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Vision

To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.

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Mission

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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Strategic Objectives
Delivering remarkable returns to stakeholders, sustainable performance, exceeding market and shareholder expectations. Providing value added services through operational expansion, geography and upgraded system. Building a corporate culture of equality, trust and team spirit as we remain dedicated to be a socially responsible organization.

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Core Values

Integrity
We are the trustees of public funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.

Innovation
We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.

Excellence
We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward.

Customer Centricity
Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solutions.

Respect
We respect our customers values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed.

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Products and Services


MCB Online Banking MCB has a fast growing network of over 1,100 online branches, 190 MCB ATMs in 34 cities nationwide and a network of 16 banks on the MNET ATM switch, providing customers real time online transaction facilities. MCB MNET MCBs revolutionary MNET switch enables customers to access their MCB account from any member bank ATM machine. MCB Cash Management Cash Management provides a wide range of value added services to large corporations through its vast network of online branches. Our structured and customized products enable our customers to realize their sales proceeds swiftly from all over the country, supported by real-time MIS. MCB Channel Financing MCB Channel Financing provides working capital facilities to dealers and vendors of selected companies under a structured product program. This product enables our customer's dealers to leverage themselves and increase their business capacity with their respective business partners. MCB Local Rupee Drawing Arrangement Transaction Banking Department at MCB, provides Local Rupee Drawing Arrangement, a product for small banks and financial institutions to use our vast branch network platform to make payments in areas where their own branch network does not exist, thus extending their reach countrywide.

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MCB Home Remittance MCB Home Remittance provides a seamless inflow of foreign remittances credited in the beneficiarys account within minutes. Cash payments can also be made at our designated branches on behalf of Xpress money, Samba (Speed cash Now) and Money gram, along with cash payments from other correspondents all over the world. MCB Corporate Financing MCB Corporate Financing provides access to diversified financing options, including working capital loans, term loans, trade finance services and investment banking. MCB Project & Structured Finance Involves financing complex projects, usually in an SPV structure, where the loan is tightly structured around the cash flows, risks are allocated amongst various stakeholders, and there is limited or no recourse to the sponsors. MCB Syndicated Loans and Debt Capital Markets It involves arrangement, underwriting and placement services for significant financing requirements by large corporate and institutional clients to other financial institutions or through the debt capital markets. MCB Quasi Equity/Hybrid Instruments It structures and places a category of debt that has some characteristics of equity such as being unsecured, subordinated or with a potential equity upside. MCB Equity Capital Raising Equity Services relate to raising capital for our clients by offering common or preferred equity to public or private investors, through initial public offers, offers for sale, rights issues and private equity placements. MCB Advisory Services Financial and Capital Raising Advisory provides our clients with financial advisory services, commercial structuring support and access to capital resources to help companies successfully finance their business/project.

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MCB Islamic Banking With the help of Shariah specialists, lawyers and professional commercial bankers, MCB Islamic Banking provides Riba Free and Shariah Compliant solutions to various customer segments in a growing number of cities. MCB Agaric Products MCB has been providing finance to the agriculture sector since 1973. With the help of our vast branch network, specialized staff posted in the branches, multiple and diversified product range, we cater to the financing requirements of the farming community spread throughout the country and facilitate in achieving increased productivity. MCB Privilege A first from a local bank, MCB Privilege through its dedicated, world class Privilege Centers offers a higher level of personalized services, more rewarding in-branch experiences and a wide array of deposit and investment products that are tailored to meet the financial expectations of our affluent clientele. As members of MCB Privilege, customers experience advantages that put them ahead of others. MCBs dedicated Privilege Centers await to welcome you in Karachi, Lahore, Islamabad and Multan, with plans to expand to more locations. Terms Deposit MCB Term Deposits offer attractive short to mid-term investment options with flexibility, convenience and security. With various tenor options available customers can choose one that suits their needs. This is combined with different profit payout options and the added facility of being able to avail credit facility against their deposits. MCB Salary Club A payroll solution designed to make life easy; it simplifies all the monthly payroll related banking needs of employers and opens the door to a world of special offers for employees.

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Salary Club provides the convenience of having an extensive range of financial services available to employees at their place of work. MCB Investment Services Make the most of your wealth with investment opportunities that match your unique financial aspirations. MCB Investment Services offer distribution of mutual funds managed by the leading fund managers of Pakistan. We can suggest the products most suited for your needs, or work with you to create a personalized solution completely focused on your expectations of the capital markets MCB Visa Credit Card MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing on providing, superior service, travel privileges & shopping pleasure. It also offers comprehensive insurance & installment plans, reward points and SMS alerts that give a different feel to the world of Credit Cards. These unique features include i-revolve, which makes variable mark-up rate available to customers allowing them to repay at affordable rates. MCB Car4U MCB Car4U not only gets you a car of your own choice but is also affordable with competitive mark-up, flexible conditions, easy processing and above all, no hidden costs. MCB Instant Finance With MCB instant Finance get a loan instantly at any MCB branch against liquid collateral at competitive pricing. MCB Smart Card MCB Smart Card is the key that enables access to convenient banking services. Smart Card allows you to manage your account, withdraw cash, transfer funds, pay utility and mobile bills, recharge prepaid connections, and register for mobile and internet banking services and much more. MCB Rupee Travelers Cheque

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It is a safe and secure way to make payments nationwide. MCB Rupee Travelers Cheque, being the market leader, is the most widely accepted way to pay cash for travel-related purposes. MCB ATMs MCB has one of the nation's largest ATM networks with over 450 ATMs and still growing. MCB ATMs give you 24-hours convenience of cash withdrawal, mini statement, utility bill payment, funds transfer services and much more. MCB Mobile ATM With MCB Mobile ATM not only do we provide you with world class banking service but we also provide convenience. Our innovative mobile ATMs ensure that you are given service close to you. MCB Lockers MCB Lockers are the best protection for your valuables. Lockers of different capacities are available nationwide. MCB SMS Banking Banking at your fingertips: SMS anytime to get information regarding balance, mini statements and credit card related information once your card is linked. MCB Full Day Banking Enjoy the convenience of extended banking hours from 9am to 5pm, including Saturdays at MCB FULL Day Banking branches across the country. MCB Bancassurance Combining the best of banking and insurance solutions, MCB Bancassurance has created a one-stop shop for all your financial and insurance needs. Whether you want to save for your childs education or marriage, for the security of dignity after retirement or gaining maximum return on savings, MCB Bancassurance has a plan just for you. MCB Call Center Theres no easier way to bank than the new enhanced 24/7 MCB Call Center, which blends innovation and convenience to provide Banking Services that go beyond expectations. With MCB Call Centre you can maintain your VISA credit &

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ATM/Debit cards, check your account balances, confirm last 5 transactions, pay utility & mobile phone bills, top-up your mobile, pay MCB Visa Credit Card bill from your MCB account, transfer money within your own accounts in MCB and register complaints. MCB Mobile MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer money, pay bills and do much more. No need to visit a branch or an ATM anymore, login to www.mcbmobile.com using your mobile phone and start transacting. MCB Virtual Banking MCB provides the convenience of banking via internet, whether at home, office or on travel, log on to www.mcb.com.pk and enjoy 24 hour access to all your accounts at MCB for a great number of services such as Funds Transfer, Utility Bill Payments, Mobile Top-ups and much more. Khushali Bachat Account Khushali Bachat Account, a Rupee savings account is one of MCB Banks most popular products. Due to the low initial deposit, the account can be opened by people from all walks of life and still avail the facility of daily product profit calculation. Mahana Khushali Bachat MCB Monthly Khushali Scheme provides you with a steady income every month. Just purchase a Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every month. Pak Rupee Term Deposit MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. Saving 365 The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals.

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MCBs Partners in Bill Payment Pay your bills 24 hours a day, a day, 7 days, and a week. Make total payments of up to Rs. 20,000 per day. Carry out up to 10 transactions per day per card. Make either full or partial payments. Full payment is required for PTCL only. Recharge your pre-paid account for Mobilink, Ufone and Telenor as per their fixed slabs. Pay as a registered or non-registered user. Registration will help you avoid the time delay in entering details each time you carry out a transaction. Pay with MCB ATM Pay through MCB Virtual Pay through MCB Call Centre Investment Banking Our investment banking team has emerged as a leading player in Pakistans investment banking arena. The team handles advisory, corporate finance and capital markets related transactions, within these areas the team has developed expertise in: Private Placements Debt/Equity Underwriting Team Finance Certificates Loan Syndication Arrangement of Non-Fund Facilities Mergers and Acquisitions Privatization Corporate Advisor

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Types of Accounts

Current Account MCB Bank offers a variety of current accounts to cater to the everyday transactional needs of various customers. These accounts ensure ease and freedom to bank from any of the 1,100 branches across the country. The different accounts include: the basic account that has no minimum balance; Business Account offering free online transactions, Demand Drafts, Pay Orders and lots more to meet the day to day business requirements; Current Life Account which offers the security of life insurance free of cost; and for all the others the conventional Current Account. Savings Account It offers a wide array of savings products that suit short term growth & transactional needs. Our savings accounts offer attractive profit rates as well as flexibility to transact. Savings Xtra is targeted for customers having Rs. 5 million + deposit, 365 Gold offers profit rate on daily balance while PLS savings has a lower minimum balance requirement. In addition, a unique product: Smart Savings is an account run solely via a debit cart, offering a very competitive rate to small savers. Foreign Currency Savings Account MCBs Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment. You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanese Yen or Euro Your foreign currency account is exempted from Zakat and withholding tax MCB Foreign Currency Term Deposit MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits.

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Basic Banking Account In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30, issued on 29th November 2005, the Basic Banking Account has been launched with effect from 27th February 2006. This product has been introduced to facilitate the low income group as well as the existing account holders who wish to convert their regular savings or current account into Basic Banking Account. The Basic Banking Account is a current account and can be opened with a minimum initial deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit transactions (each cash or through clearing) and 2 withdrawals (cash or clearing) each month. All customer-initiated transactions over and above this limit will be charged a transaction fee. However unlimited free charge cash withdrawals are allowed through MCBs own ATMs. Pak Rupee Savings Account MCBs Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. Pak Rupee Current Account MCBs Pak Rupee Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day plus you can avail finance facility up to 75% of the total deposit. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines.

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Foreign Currency Current Accounts


Saving Account MCBs Foreign Currency Savings Account offers you attractive returns on your foreign currency investment. Unlimited transaction facility, profit credited to your account on a half yearly basis. You can avail a credit facility up to 75% of the total deposits value. A foreign currency account can be opened at any of our foreign exchange dealing branches. MCB Rupee Maximizer Account MCB Rupee Maximizer Account provides you an opportunity to convert your recent changes in the economic scenario MCB launched the Rupee Maximizer Account exclusively for its Foreign Currency Account Holders. MCB Foreign Currency Account holders now have an opportunity to convert their Foreign Currency Account balances into Pak Rupees and earn a profit at the rate of 12.6% per annum. Other features include profits calculated on a daily product basis, no restrictions on the number of the withdrawals, no minimum deposit required. Special benefits include one free ATM card and locker facility free of cost. MCB Rupee Maximizer Account is being advertised in leading daily newspaper as well as local papers. Foreign Currency Account into Pak Rupee and earn profit at the rate of 12.6% per annum. Current Account MCBs Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day. MCB Enhanced Saving Account Keeping in view the small savers, looking for higher returns on their savings, MCB introduces the Enhanced Saving Account (ESA). This account can be operated via all the channels available at the MCB such as Cheques, Virtual Banking, Mobile Banking, MCB Smart Card and ATMs/Point of sales all across Pakistan. MCB ESA, governed under PLS rules, can be opened with a minimum initial deposit of Rs. 5000 and the profit shall be calculated on an average basis maintained by the customer during that month. Following shall be the slabs used for profit calculation:

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If average balance is greater than Rs. 20,000 standard PLS rates will apply. If average balance less than Rs. 20,000 (or equal to 20,000) with up to 4 withdrawal transactions per month (excluding ATMs, PSO, and VB) 4.0% p.a. If average balance is less than Rs.20,000 (or equal to 20,000) with over 4 withdrawal transactions per month (excluding ATMs, PSO, and VB) then standard PLS rates will apply. The rates mentioned above are expected and shall be revised at least every six months. Average account balances can exceed Rs. 20,000 during a month. However, in that case, they shall be paid profit as per the standard PLS rates, as mentioned in slabs above. Profit shall be calculated on average basis and shall be credited to the account after each calendar quarter.

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Account Opening Procedure

Account opening is the first step towards relationship building between a customer and the Bank. Of all the functions being performed in a branch, the opening of account is highlighted as the most important. Therefore, Branch/Operations Managers are required to involve themselves in opening of new accounts and meet with the prospective customers in order to make reasonable efforts to determine the true identity of the prospective customer. Documents Required for Different Accounts The details of Account Opening Application, Specimen Signature Cards and other documents to be obtained for different types of accounts Types of Accounts are as follows: Individual Accounts Application for Opening Account Specimen Signature Card Attested photocopy of Computerized National Identity Card (CNIC) or Passport. It is a mandatory requirement to verify the CNIC of the customer before opening the accounts, from NADRA Online system- VERISYS In case of a salaried person, attested copy of his/her service card or any other acceptable evidence of service, including but not limited to a certificate from the employer. In case of illiterate person, a passport size photograph of the new account holder besides taking left & right thumb impressions on the Account Opening Form & Specimen Signature Card In case, CNIC does not contain a photograph, Bank may allow the said customer to open the account, subject to provision of the following documents: A copy of the photograph duly attested by gazette officer/Nazim. A copy of CNIC without photograph duly attested by the same person who has attested the photograph as per above. A confirmation in writing to the effect that they have no other document bearing their photograph. Moreover, the particulars/CNIC of such persons must be confirmed from NADRA in writing or through its Verisys system.

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Categories of Accounts
Partnership Account Application for Opening Account Specimen Signature Card Attested photocopies of Computerized National Identity Card (CNIC) of all partners. Attested copy of Partnership Deed or Letter of Partnership , in lieu of the partnership deed, if not available) duly signed by all partners of the firm. Attested copy of Registration Certificate with Registrar of Firms. In case the partnership is unregistered, this fact should be clearly mentioned on the Account Opening Form. Authority letter in original, in favor of the person authorized to operate on the account of the firm. Joint Stock Companies Resolution of Board of Directors for opening of account specifying the person(s) authorized to operate the company account Memorandum and Articles of Association. Certificate of Incorporation. Certificate of Commencement of Business. Attested photocopies of Computerized National Identity Card (CNIC) of all the directors. Clubs, Societies and Associations Certificate of Registration issued by the Registrar of Cooperative Societies/ Registration Authority. By-Laws/ Memorandum and Articles of Association of the Society containing official seal of the Registration Authority. Permission of the registration authority for opening of Account in the name of Association as required under section 37 (d) of Co-operative Societies Act, 1925. List of members of the Managing Committee duly certified by the Registrar of Societies. Resolution duly passed by the members of Managing Committee in their meeting regarding opening and operation of account in the name of said Society. It must be ensured that the mandate for operation of Account given in the Resolution is not in violation of the provision of By-Laws/ Memorandum and Articles of Association. Attested copies of CNIC of the authorized officials/ persons.

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Agents Accounts Certified copy of Power of Attorney Attested photocopy of Computerized National Identity Card (CNIC) of the agent. Trust Accounts Attested copy of Certificate of Registration Resolution duly passed by the Trustees regarding opening and operation of Account in the Bank in the name of said Trust Deed. Attested copies of CNIC of all the trustees. Certified copies of Letter of Administration/ Instrument of Trust. Minor Accounts An account in the name of minor is allowed to open by his guardian, preferably jointly in the name of guardian / Minor or Minors, payable to either or survivor opener of the Account. Title of Account is on the Minors Name & word Minor be added to the Title of Account. In the Account Opening Application, the particulars of the Guardian will be filled out in the column of Personal Information. Attested copy of Computerized National Identity Card (CNIC) of the Guardian. Attested photocopy of Form-B of Minor. Illiterate/ Disable Persons Accounts Attested photocopy of Computerized National Identity Cards (CNIC). Two Attested Photographs. (One photograph shall be pasted on the Account Opening Form and other will be pasted on Specimen Signature Card. Left thumb impression (Right thumb impression in case of female) on the account opening application & Specimen Signature Card (SSC).

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General Policies Regarding Account Opening


Initial Deposit Initial Deposit must be in Cash. Cheques may only be accepted as part of initial deposit in case of undoubted parties and on the personal responsibility of Managers. In all such cases, the cheque when tendered if uncrossed should be crossed by the customer before being lodged for clearing / collection. Cheque Book should only be issued after the proceeds of crossed cheque are realized. Exemption of Service Charges Accounts maintained by Employees of Government /Semi Government institutions for Salary, Pension & Benevolent Fund purpose including widows/children of deceased employees eligible for family pension / benevolent fund grant etc. in any manner whatsoever. All Collection Accounts i.e. Non-Checking accounts from where the balances / funds as per standing instructions, are transferred to customers main collection account whether daily or on periodic basis. Students Mustahqeen of Zakat Zakat accounts maintained for collection and disbursement of Zakat funds MCB Employees and their spouses All Basic Banking Accounts Acount Opening Document Retention Account Opening Application- SF1AA along with the relevant documents should be kept in Fire Proof Cabinets under Dual control of Operations Manager and Designated Authorized Officer in the branch.

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Know Your Customer Policy


Know Your Customer (KYC) is the vital tool used against Money Laundering. The Bank has a statutory obligation to know its customers and to understand the nature of the business that is being conducted with the Bank. Knowing your customer means: Evidence of identity and addresses, independently confirming the evidence at the start of a business relationship with the Bank. Information regarding the nature of business that the customer expects to conduct with the Bank, identify the source of income and expected pattern of transactions (Debit/Credit) Branch Manager or Designated Authorized Officer is responsible for filling out the Client Profile Form in order to gather maximum information about the prospective customer. Before entering into the relationship, Client Profile Form is required to be filled-out along with the Account Opening Application. Know Your Customer or Customer Due Diligence is an on-going process through which Branch Manager or Designated Authorized Officer can ensure that only legitimate transactions are routed through the customers account. It helps the branches to avoid opening of fictitious accounts. Branch Operations Managers are required to retrieve following reports on daily basis and review their debit or credit transactions or turnover: High Value Transactions Over the Counter Transactions Income/ Salary / Turnover Exception Over the Counter Cash

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MCB Department hierarchy

President

Senior executive president

Executive vice president

Senior vice president

Vice president

Assistant vice president

Departments of MCB

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Account Opening Department


Account opening documentation is primary contractual relationship between the bank and customers. There are many types of account like saving account, current account, fix term deposit, Basic Banking account, call deposits, profit & loss account, partnership account, joint account, business account etc. Mostly person wants to open a savings account or fix term deposits or any other. He has to perform some important formalities. People save their amounts in banks to get some profits for their future and to save the money for their future use. Banks earn profits and interests from these accounts. Minimum amount required for the opening an account is 1000 to 5000 depending on account nature and some legal documents are necessary for opening an account. Any recent bill copy CNICs copy Fathers CNICs copy Employee certificate

An application which explains the purpose of opening account and the source from where cash will be deposited Depending on the account nature they required some more documents. And the zakat and taxes apply to accounts. After opening an account the cheque books or ATMs issued to the customers so that they can make their transactions easily or whenever required. ATM provides many facilities to their customers.

Credit Department
This is also a very important department in the bank that plays very vital role and it is the main factor for running a banking business. Because banks give loans from the peoples savings to other persons and they pay some interest on that loan amount that becomes banks income. Simply when a local customer comes to the bank he has the direct dealings with the credit manager. Bank offered different type of loans depending on the customers security. Customer has to give some security to the bank for the sake of money. Then banks reserve the papers of customers security and give him a loan for any specific period. Credit manager

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take the all necessary information from the customer and give him loan with the approval on some simple terms and conditions. And in circle office there is also credit analyst who keeps the records and information of all the customers who get loan from banks in files and update their profiles weekly or monthly. There is also an officer who deals with the people who come from different branches with their applications of loans and with those people who are not paying their installments on time and try to convince them to follow the banks policy regarding loans.

Remittance Department
The remittance department deals with the transfer of money from one place to another. This department deals with the local and international currency transfer and also E-remittance through Western Union. MCB provides this facility to its customers. The main function of remittance department is the transfer of funds and the transfer may demand draft, pay orders, mail transfer etc depends on the customers demand. There are many types of remittance Inward remittance Outward remittance Inland remittance Foreign remittance

MCB uses following instrument for transferring of money: Demand Drafts (DD) Pay Order (PO) Telegraphic Transfer (TT) Mail Transfer (MT)

Cash Department
Cash department is usually to collect and deliver cash. When a customer comes to the bank and wants to issue or deposit amount comes to the cash counter to give or receives amount. So it is the cash officers duty to deposit or withdraw the amount after verification of signature or account number of the customer. Cash officer checks the balance and then pay the amount to the customer. The banker make journal and ledger to enter notify the customer account all the entry is done in the system, and take print of those entry to keep record, and check all the entry are recording right head of account. So all the cash dealings occurred in the banks are

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over to cash officer and the cash officer is responsible for all the deposits or withdrawals.

Clearing Department
Clearing department work with provision used for settlements of proceeds of cheque among different through the medium of a clearing house. Cheques are categorized in two kinds same day cheque and normal cheque. Cheque amount more than 5 lacs is same day clearing cheque. And for the same day clearing few charges are charged. All the cheques which drawn from the local branches of other banks are collected through clearing system. There are two types of clearing: Inward clearing Outward clearing Every banker acts both as a paying as well as a collecting banker, it is however an important function of crossed cheque. A large part of this work is carried out through the bankers clearing house. A clearing house is a place where representative of all banks of the city get together and settle the receipts and payments of cheques drawn on each other. As the collecting banker runs certain risks in receipt of their ownership the law has provided certain protections to the banks. The Negotiable Instrument Act, 1881, lays down hat drawer or holder of a Cheques or draft may cross the instrument generally or specially. It further lies down that crossed Cheques can only be paid to a banker, who collects it for a customer in good faith and without negligence. The procedures for check transfer and clearance are as follows: Transfer of Cheques It deals within the inter-bank transfer of cheques. Suppose a person X gives a cheque of MCB to another person Y who also has an account in MCB, the clearing department will handle it. The clearing department simply debits one account and credits the other one.

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Transfer cheques Gives cheque MCB Bank X account Dr Y account -- Cr

Clearing of Cheques It also deals with the cheques of other banks. Suppose an NBP account-holder gives a cross cheque for MCB. Similarly, MCB account-holders give cheque to people having accounts in other banks; these all banks need to clear their overall balances with each other. The clearing department does this.

Clearing checques MCB NBP

Account-holder Account-holder Cross cheque NBP Bank X Y

MCB Deposited

The clearing department makes different envelops for different cheques of each bank. It then sends these envelops to the clearing house. In the clearing house, representatives of different banks take the balances of all the cheques and the balances are cleared. Now National Institution of Facilitation Technology (NIFT) takes the job of clearing house. It not only separates balances for each bank but also for each branch. The clearing department of MCB separates cheques of each bank in different envelops and sends it to NIFT. After NIFT sends the cheques to other banks, they send an OK report to NIFT which sends that report back to MCB. This ensures that all cheques are safely deposited in the respective banks.

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Bills Collection The bills collection is the key department in each branch. The objective of this department is to receive the cheques of different bank of different area. Often the cheque is drawn to the clients of another bank or account holder of the MCB and similarly the customer of another bank draw cheque to MCB account. In both cases the cheque is cleared, endorsement conformed, or takes the disbursed Guarantee. And then deposit to the corresponding department or banks or whatever the case may be. Shortly the bills are divided in the following two main categories. Local bills collection (LBC) Country bills collection (CC)

Technology Department
Technological advancements are also affecting the banking industry. The foreign banks have a competitive edge over all local banks in their technologies' advancements and automated systems. Local banks have also realized the gravity oil this situation and are striving to add computerized systems to their branches. MCB is ahead of all other local banks in this field and now it is in a position to even compete with foreign banks. There are more than 1127 branches of MCB all over Pakistan and out of these more than 1100 b ranches are fully computerized. Almost all .the branches of MCB are computerized; therefore, the need for a technology department at each branch is growing. Now a day, a computer division is working in each city to provide service to add the branches of that area. MCB has also introduced the now concept of online banking. There are now more than 1100 branches linked through this system and they can transact with each other directly using computer systems at their own branches. Now customers do not have to wait long for their transactions and can operate their account through all the online branches.

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ATM Network ATM stands for Automatic Teller Machine. This machine is used to transact in one's account without intervention of humans. These machines are basically used for taking cash, confirming balances and requesting statements / cheque books. MCB has one of the nations largest ATM Network with 500 ATMs covering 110 cities across the country and still growing. MCB ATMs give you a 24hours convenience of cash withdrawal, mini-statement, utility bill payments, mobile top-ups, funds transfer services and much more. ATMs are operated through a card issued to the valued customers and by application of Personal identification Number (PIN number). A person can withdraw from any machine across Pakistan with having an account in only one branch of MCB. This was only possible with the help of online system. In this system all the machines are linked to central banking host at IRM division Karachi through either satellite or telephone controller. This system identifies the card holder and his PIN number. MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer money, pay bills and do much more. Visit the nearest MCB ATM or call 111-000-622 to register and log on to www.mcbmobile.com using your mobile phone to start transacting. Now MCB has also entered into a contract with Cirrus which is a subsidiary of MasterCard. This contract will enable an ATM card holder to use his account even when he is out of country at all the ATMs where Cirrus logo is displayed. Green Cards are cards with a maximum withdrawal facility of Rs. 10,000/- in a day. The annual fee for this card is Rs. 300/- only. Gold Cards are special cards with maximum withdrawal limit of Rs. 25000/- in a day. These cards are issued to the persons having more than Rs. 500000/- as their average balance. International Cards are issued in collaboration with Cirrus and are useable all over the world with maximum withdrawal facility according to the standards of Cirrus. MNET is an electronic inter-bank connectivity platform for online transactions on ATM and other remote banking channels. It offers other value added services that include a portfolio of e- banking and payment system products as well as management and day-to-day operations of the same. Members include 10 local and foreign financial institutions enjoying ATM sharing and value added services.

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MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing on providing, superior services, travel privileges & shopping pleasure. It also offers comprehensive insurance & installment plans, reward points and SMS alerts that give a different feel to the world of credit cards. These unique features include i-revolve, which makes variable mark-up rate available to customers allowing them to repay at affordable rates.

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Main Departments of MCB


There are three main departments in any branch of MCB General Banking Foreign Exchange Advances/Credit

General Banking
General banking deals with following services: Remittances It is transfer of funds. Funds can be transferred in shape of pay orders, demand draft, mail telegram and telegraph transfer. Payments of fees of different organizations, fulfillment of tenders, and collection of funds are the main functions of remittance. Maximum part of general banking depends on this department. Issuance of different kinds of remittance: Pay Order Pay order is the property of person/company that has to take the benefit of the amount being pay ordered by the concerned person. Pay orders are made for the payment of fees, tender or issued for the payments of dealings. These are required for the proof of payments made between the bank and the customer in the favor of beneficiary. These are noted in printed block letters and yearly serial numbers are issued from computerized system. Demand Draft Demand drafts are made for the beneficiary for payments, funds etc, these are made for outstation branches of the concerned banks. An advice is also made for the confirmation of the draft send. These are also approved and safe way of sending amount to the beneficiary. These are also noted by computerized system and a serial number is issued from the computer system.

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Mail Transfer Mail Transfer is made with in the city for transfer of amount. An advice is also made for the confirmation of the draft send. These are also approved and safe way of sending amount to the beneficiary. These are also noted by computerized system and a serial number is issued from the computer system. Telegraphic Transfer Telegraph Transfer is telegram message for transferring the amount from one branch to other branch. A message advice and a confirmation advice both are made with TT numbers that are issued for TEST. TEST depends on two steps: First TEST is on Day, Date and Code Number of branch. Second TEST is on Currency, whether Pak rupees or foreign currency, amount and TT number issued from manual registers and confirmed from computerized system. Payment of Pay-Order and Demand Draft Pay-Order and Demand Draft both could be paid in shape of physical payment of cash and in case transfer of amounts; the amount could be transferred in the beneficiary account. In case of physical payment authorized signature of beneficiary are taken for the proof of amount being paid to him and in case of transferring of amount authorized signature of the beneficiary are checked and verified for reducing risks. Cancellation of Pay- Order and Demand Draft Any type of Pay-Order / Demand Draft is cancelled by the permission and instructions made by the beneficiary. The customer could only cancel the payorder/demand draft as the verified signatures of beneficiary are present on the advice. Vouchers Vouchers are made for records and they should be completed in all respects, the amount, date, its head, particulars, amount in words, authorized signatures and contra advice or voucher should be present. Vouchers are advice either debit or credit slips. They are contra of each other. If any voucher of debit is passed its contra credit voucher should also be passed for the balancing of accounts, their respective sheets.

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Inward Clearing It depends on those checks that are cleared inter branch and with in the city. As the concerned branch receive any type of clearing check first of all physical checking is taken place. For clearing procedure there should be two days margin. These cheques have their vouchers and the amount of the cheque and voucher should be identical. Than these cheques are stamped and noted on receiving sheet as well as feed in to the computerized system. Outward Clearing It depends on those cheques that are cleared out side the city. For outward clearing cheques are send because the home branch has there accounts but checks are of other banks. Contras of these cheques are vouchers that are recordrd in the home branch. Token Token is the process of different steps of checking of the cheque: 1. Physically Checking First of all the cheque is physically checked. 2. Date It should not be advanced of the latest date; date should be limited to only past six months. 3. Amount Amount in which words and figures should be written in clear writing. Any kind of over writing and cutting should be prevented. Otherwise it would not be passed and returned to the customer. 4. Payees/Bearer Cheques If the cheques are payees accounts head or they have marked bearer then these cheques are not labeled token. 5. Verification of Signatures Signatures are checked as well as verified. In case of other representative of the account holder brings the cheque then two signatures of that person are taken.

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6. Stamps After physical checking of the cheques they are stamped. Issuance of Cheque Books Any account holder that has opened the account he/she could credit his/her account and for this purpose there should be a cheque book, so he/she could be able to credit the needed amount whatever he/she wishes. For the issuance of the cheque book a person is advised to fill a requisite slip with his/her full names and the account number with two verified signatures. These signatures are checked and then another requisite slip prepared by the bank staff send to the NIFT, and it issues the printed cheque books after completion of the procedure in two or three days. Account holder can take it by singing on the issuance register or if the absence of the account holder another person could also take the cheque book only if he/she has authorized signature of the account holder. When the cheque books are issued they are feed in the computer system from the requisite slip so when the cheques are given for the credit/transfer of amount they could checked. In this way neither the cheques could be repeated nor could the invalid cheques be claimed. Issuance of ATM Cards Head office issues ATM (Auto Teller Machine) cards with their PIN (Personal Identification Number) codes and when the customer claims for their ATM card they are checked from the list that is also issued from the head office, and the claim is checked from the list and if the name is found than the cards are issued by taking a signature and their PIN codes are given to them by taking signatures on their ATM card forms. The ATM card has been activated by the number provided at or with the specific card. Cancellation of ATM Cards The Cancellation of ATM Cards becomes necessary in the following conditions: If folded or damaged Stolen PIN code missed or forgotten Card captured by the machine and expired If requested by the customer

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The cancellation or inactivity of the card is being processed by the request or instructions provided from the customer. Sale of RTC The selling of the RTC has been described in step wise as follow: In this step the bank initially seeks the information whether the person is going to purchase the RTCs on cash or on account basis. If the transaction is based on account then initially the cheque has been cleared and if the amount is sufficient then RTC has been issued after deducting after the amount from the account. If the amount of RTC is more than Rs. 25000 then tax has levied by 0.3% in case of absence of the tax deduction form. After this the bank handed over a form for RTC sale dully filled by the concerned person and after this RTC number has been noted on the form as well as their amount and quantity. After this we note down the sold RTC in the concerned register. MCB Pak rupee travelers cheques the fastest way to carry cash for high value cash transact. Launched in July 1993, MCB RTCs have been preferred choice of the rupee travelers cheques target market. We now have RTCs with maximum security features, we have incorporated tele-verification with the product where customers can call and check whether the RTC is valid. At the same time, our RTC team anywhere in Pakistan ensures superior quality service. Short Notice Term Deposit There are short times either for seven days or for thirty days and the profit is calculated by the given percentage from the head office at the payment time. If the customer fails to complete the duration of seven days or thirty days then no profit is given. If any amount is outstanding, only in case of automatic continuity, then the profit is calculated for the whole period by the rate given from the head office multiplying from the numbers of days divided by the 365 for the one-day profit. Amount, Rate, Number of Days / 365 Days Profit is calculated for the six months only for outstanding SND. Zakat is also deducted but if Zakat deduction form is submitted to the bank, no Zakat will be deducted then, 10% withholding tax is also deducted from the profit to calculate net profit.

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Call Deposit It is highly liquid instrument, it can be cashed at any time when needed. This instrument bears no profit on it. It is mostly used for the purpose of tenders.

Foreign Exchange
LCs Establishment Any company can provide its documents containing e-form, bill of lading, short shipment notice in case of short shipment, packaging list etc. the information provided from the documents is recorded in the LC establishment portion or section in the computer. Payment of Retirement When the transactions have been completed then approved documents from the concerned bank are sent to the home bank for the payment or retirement of the LC. These transactions have recorded in the payment or retirement section of the computer. Foreign Currency Deposits The Foreign Currency Deposit relates with the foreign currency accounts, cash deposit or credit and foreign remittances. Foreign Remittances In this we received the messages through SWIFT for foreign remittances, which we record in their respective accounts, if these are relates with Pak rupees than it was transferred in Pak rupees with the latest rate and if this relates to the foreign currency than it is dealt with accordingly. The amount has been credited to the respective account and the head office has been debited against it. After crediting the amount to the respective account. All the subsequent entries have been made in the registers and also in the computer record as the system now have been upgraded on computers. As we are reporting daily to the head office, so an annexure has been maintained and faxed to the head office.

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Advances/ Credit
This department deals with the approval of different kinds of loans to different business entities. The loans, which are being approved by the department, are kept with some securities such as bonds, properties and any other type of asset, which is equally valuable or more than this as a guarantee. Every branch has its own limit, if the amount of loans is within the limit of the branch then it is being approved by the branch but if the amount of loan is exceeding the limit then it has to make it approved by the head office. In this case the branch stored all the required papers and sent them to the head office for necessary action. If the head office approved the loan then mostly the period contains a year. And if the party requires more loan than after a year the loan has been re-approved required that they should have the limit. In case if the head office do not approve the loans then the return letter came back with the reasons of not approval of loan and if the reasons have been made approved by the concerned party then it could be sent again for approval. This whole process is recorded in the back remain with the bank until the party has not refunded all the amount of loan and bank has the authority to liquidate those assets for preventing it from loss. Required Information An assessment of his business abilities. Accurate & up-to-date financial statements. Market reports about the borrower. Party dealing with other banks. Nature and structure of borrower business. Names of proprietors, partners or Directors Detail of companies associated with borrower business. Financial condition of borrower business.

Preparation of Credit Proposal At first, a formal application for credit approval is obtained from the party along with complete group position. The parties credibility report is also obtained from the banks from which the party has been doing the business. The party creditability report is also taken from the head office of Trade information Division. For obtaining credit, party has to submit the last two years Balance Sheet and Profit & Loss Statement duly attested but authorized auditors. If the party also involve in export or import business then the bank also consider the data of three years about imports and exports.

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The Current and Debt equity ratio is also calculated by the bank. Then recommendations are made the type of data required to prepare the credit proposal is to be gathered from different departments. Some data is obtained from the foreign exchange department. Some data is obtained from current account department and some data is available in Advance Department. The purpose for which the financing is required should be explained very clearly. The securities offered by the party to the bank are also evaluated. In case of pledging of the property in shape of land or building, the complete evaluation of the property should also be attached. After all the requirements and necessary documents for applying for advances is fulfilled by the party then, the case is sent to the Chief Manager for approval. If the manager find any discrepancies, he may write on these documents. If the credit limit is in his range, he may approve the party for credit. If the amount is exceeding the Chief Manager send the case is forward to the Circle Office for approval and here the same procedure is repeated and if the credit amount is in the range of GM, he can approve and if the credit amount is very large from Circle Office, the case is then sent to Head Office and if it is a real big then is to be decided by Board of Director. MCB provides two types of advances: Secured Advances Unsecured Advances In secured advances, the bank takes any security against the loans while in case of unsecured advance, no security is taken by the bank. MCB divided the advances in to two major categories: Fund base advances Non fund base advances In the fund base advances, the funds of MCB is involved and in Non Fund based only guarantee is given by the bank. Fund Base Advance MCB have following Fund base facilities of advance in its corporate branches. These are as follows: Demand Finance (DF) Cash Finance (CF) Running Finance (RF) 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.

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Cash Finance In this, the borrower gives a specific reason for the need of cash. MCB gives the facility of cash credit to business. The amount is passed through voucher and credit to the party account. Normally 0.60 paisa per thousand is charged on daily basis to customer. 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. This type of advances are given to trade, commerce and manufacturing for general purpose. Normally 0.60 paisa per thousand is charged is charged on daily basis. It is drawn through cheque. Letter of Credit A letter of credit is a written instrument issued by a bank authorizing the seller to draw in accordance with certain terms and stipulating legal forms, that all such bills will be honored.
How a letter of credit is opened?

Application for a letter of credit Line of credit Opening of the letter of credit Handling of the documents Payment by the importer to the bank. Liability of the issuing bank

Application for a letter of credit

An importer prepares an application on the prescribed form available from the bank. The information which are supplied in the application are based on the contract of sale and include only the importer feature of contract such as the value of the merchandise, port of shipment, port of unloading, expiry date of the papers and brief description of the goods. If the bank is satisfied with the applications, it will signed and acceptance agreement with the importer.
Line of credit

Before issuing a letter of credit, bank takes all necessary precautions for securing its credit. The bank first examines the customers credit standing, the type of goods to be imported, the market demand for the goods, the collateral offered to cover the credit. Then it establishes the amount i.e. the line of credit.

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Opening of letter of credit

The letter of credit can be opened by mail or by cable. When it is opened by mail, the issuing bank sends letter of credit and to carbon copies to the importer. The importer then dispatches the letter of credit to the exporter in foreign country by mail. One carbon copy is kept for the record. The second carbon copy after signing is sent to the bank by the importer. If an importer directs the bank to open letter of credit by cable, the importers bank sends a cable to the corresponding bank in the foreign country with a request to notify the exporter.
Handling of the documents

When the exporter receives a letter of credit, he presents the required documents and the draft to the bank in his own country after shipping of documents. If the bank is satisfied with the documents in the importing country and pays the exporter at official rate in the currency of his own country.
Payment by importer to the bank

When a bank approves the application of a customer for opening letter of credit, it does not lend money to the importer. The bank only lends the importer to use the credit standing of the bank to the exporter in the foreign country. The bank makes a contract with the importer that when the draft if send by the negotiating bank for payment the importer will make the payment to the bank not later then the day only the bank is to honor the obligation. In case of a sight letter of credit the payment to the corresponding bank is to be made on the day the draft and documents are received. When the time of letter of credit is used the importer is to arrange the payment not later than the day on which the draft is to mature.
Opening of Letter Of Credit in MCB

Before opening of L/C certain requirements are necessary that are as follows: The applicant must has import registration number He must has account in that bank He must pledges his security against the L/C amount Personal Loan MCB personal loan shortens the distance between your dreams and your celebrations. It is fast, flexible and affordable, speedy loan approval. No guarantor / security / collateral required. Borrow up to Rs. 1,000,000. 1 to 5 year tenures, partial and full adjustments allowed anytime during the tenure, optional insurance, equal monthly installments, lower interest rates, higher loan limits, loan amount

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renewed any time after nine months. You as an individual can gain and benefit the through MCB consumer banking. In MCB you get friendly, efficient and attentive personalized banking services, a unique banking relationship experienced by each MCB client. .

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Organizational Chart

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CORPORATE PROFILE

Board of Directors Mian Muhammad Mansha ( Chairman) Non-Executive Director

Mr. S. M. Muneer (Vice Chairman) Mr. Tariq Rafi Mr. Shahzad Saleem Mr. Sarmad Amin Mr. Mian Raza Mansha Mr. Mian Umer Mansha Mr. Aftab Ahmad Khan Mr. Manzar Mushtaq Mr. Ahmad Alman Aslam Dato' Seri Ismail Shahudin Mr. Abdul Farid Bin Alias Mr. M.U.A. Usmani (President/ CEO) Mr. Abdus S.Sami

Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Executive Director Company Secretary

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Management Mr. Ali Munir Mr. Agha Saeed Khan Mr. Raheel Ejaz Mr. Imran Maqbool Mr. Laqa Sarwar Mr. Muhtashim Ashai Mr. Muhammad Nauman Chughtai Mr. Salman Zafar Siddiqi Mr. Ahmed Kareem Strategic Planning and Investment Operations Compliance Commercial Branch Banking Group Special Assets Management Wholesale & Investment Banking Credit Risk Review Financial Control Group Human Resources

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Mr. Mohammad Ramzan

Treasury & FX

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Senior Management
Mr. Ali Kazmi Mr. Kamran Rasool Mr. Imtiaz Mahmood Mr. Syed Rashid Rahman Consumer Banking

Security & Corporate Social Responsibility Information Technology Islamic Banking

Committees
Audit Committee Mr. Tariq Rafi Mr. Aftab Ahmad Khan Mr. Ahmad Alman Aslam Dato' Seri Ismail Shahudin Chairman Member Member Member

Human Resources Committee Mian Mohammad Mansha Chairman Mr. Mian Raza Mansha Mr. Ahmad Alman Aslam President / CEO Member Member Member

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Risk Management & Portfolio Review Committee Mian Umer Mansha Mr. Sarmad Amin Mr. Manzar Mushtaq President / CEO Committee on Physical Planning, IT Systems & Contigency Arrangements Mr. Sarmad Amin Mr. S. M. Muneer Mr. Tariq Rafi Mr. Mian Umar Mansha President / CEO Business Strategy & Development Committee Mian Mohammad Mansha Mr. S. M. Muneer Mr. Mian Raza Mansha Mr. Mian Umer Mansha Mr. Ahmad Alman Aslam Mr. Abdul Farid Bin Alias President / CEO Chairman Member Member Member Member Member Member Chairman Member Member Member Member Chairman Member Member Member

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SBP Report Compliance Monitoring Committee Mr. S.M. Muneer Mr. Sarmad Amin Mr. Ahmad Alman Aslam President / CEO IT Committee Mian Raza Mansha Mr. Tariq Rafi Mr. Aftab Ahmad Khan President / CEO Write Off & Waiver Committee Mian Muhammad Mansha Mr. Tariq Rafi Mr. Aftab Ahmad Khan Chief Financial Officer Mr.Salman Zafar Siddiqi Company Secretary Mr. Abdus S. Sami Audit & RAR Group Mr.Kamran Zafar Muggo Chairman Member Member Chairman Member Member Member Chairman Member Member Member

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Adresses
Principal Office MCB House, 15 Main Gulberg, Lahore

Registered Office MCB Building, F-6/G-6, Jinnah Avenue, Islamabad Registrars and Share Registration Office M/s. THK Associates (Pvt.) Limited State Life Building No.3, Dr. Ziauddin Ahmed Road, Karachi UAN: (042) 111-000-111 PABX: (042) 36041998-9 Website: www.mcb.com.pk Email: info@mcb.com.pk , investors.relations@mcb.com.pk

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Profile of the Board of Directors


Mian Mohammad Mansha Chairman Mr. Mansha has served as the Chairman of MCB since its privatization in 1991. In 2004, he was presented with Pakistan's highest civil award the Sitara-e-Imtiaz, for his contributions to industrial development. He is a member of the International Advisory Board at Babson College in the USA. He is also on the Board of Engineering Management Foundation (FASAT), Board of Investment (Govt. of Pakistan), Civil Aviation Authority (Govt. Nominee), Shalamar Medical & Dental College and also serves as the Honorary Director of Punjab Board of Investment & Trade (PBIT). In addition, he is the Chairman on the Board of Punjab Coal Mining Company. Mr. S.M. Muneer Vice Chairman With experience in sectors ranging from tanneries, textiles and leather garments, Mr. Muneer is a consummate industrialist. He has been awarded with The Best Export Performance trophy by the Federation of Pakistan Chamber of Commerce & Industry (FPCCI), the Gold Medallion Award from the International Export Association, UK and Best Businessman of the Year Award from FPCCI. In addition, he has received the Sitara-e-Isaar and the Sitara-e-Imtiaz in 2006 and 2007 respectively. His contributions and achievements go beyond the economic sphere into the education sector as well. He was awarded an Honorary PhD degree by the Governor of Sindh and is also a member of the Board of Directors of CBM and Greenwich College, Karachi.

Mr. Atif Bajwa

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President Mr. Bajwa has 28 years of diverse national and international experience in corporate and consumer banking. He began his career at Citibank Pakistan as a corporate banker in 1982 and went on to become a senior member of the Corporate Banking & Finance Unit for the Gulf Markets. From 1993 - 2001, he was part of ABN AMRO Bank where, among other significant roles, he served as Country Head, Pakistan and later Consumer Banking Head, Asia Pacific. Mr. Bajwa re-joined Citibank in 2001 as Regional Head for Central and Eastern Europe covering corporate and consumer banking and then in 2005, moved to Dubai with Mashreqbank to lead their Retail and Small Business Group. In June 2007, he joined MCB Bank and has brought along with him the vision and leadership to lead the bank to new horizons. Mr. Tariq Rafi Mr. Rafi is a recipient of the coveted civil award Sitara-eImtiaz and the Best Businessman of the Decade. At MCB, he is the Chairman of the Audit Committee, Member of the Risk Management & Portfolio Review Committee, Member of the Committee on Physical Planning, IT System & Contingency Arrangements. Mr. Shahzad Saleem Mr. Shahzad Saleem is an active member of the Risk Management & Portfolio Review Committee at MCB. Along with that he is serving as the Chief Executive of Nishat Chunian Ltd and Chairman of Nishat Chunian Power Ltd.

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Mr. Sarmad Amin Mr. Amin has 30 years of business experience in the fields of Construction, Electrical Manufacturing and Textiles. He serves as a Director for various companies. At MCB, he is the Chairman of the Committee on Physical Planning, IT Systems & Contingency Arrangements and a member of the Risk Management & Portfolio Review Committee. Dr. Muhammad Yaqub Former Governor of SBP (1993-1999), Dr. Yaqub has held various offices for the Government of Pakistan and the IMF. Appointed to the MCB Board in April 2006 he is a member of the Audit Committee, the Business Strategy & Development Committee and the Human Resource Committee. Dato Mohammed Hussein Dato' Mohammed Hussein, joined the MCB Board as an Independent Non-Executive Director in August 2008. He is currently a member of the Audit Committee and the Business Strategy & Development Committee. His years of experience in the financial sector include 31 years with the Maybank Group where he held various senior management positions including Deputy President and Chief Financial Officer until he retired in 2008. Presently he also sits on the board of a number of companies listed on the Stock Exchange in Malaysia and Singapore, several government-linked institutions in Malaysia and the Exim Bank of Malaysia. Mian Raza Mansha Mr. Raza Mansha is a member of the Committee for Business Strategy & Development, Human Resource, Risk Management & Portfolio Review, Physical Planning, IT Systems & Contingency Arrangements at MCB. In addition, he is a board member for various other businesses.

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Mr. Aftab Ahmad Khan Mr. Aftab Ahmad Khan is the Group Director, Finance and Accounts at Nishat Group of Companies, which involves financial planning, strategic decision making and investment appraisals for the group. He is also a fellow Chartered Accountant of the Institute of Chartered Accountants of Pakistan. Mr. Aftab Ahmad Khan has over 47 years of diversified professional experience in various sectors. Presently he serves on the board of Commercial Banking, Textile, Paper, Energy, Hotel and Tourism sectors. He has also served on the Punjab Industrial Development Board and in Public sector organizations such as Ghee, Sugar and Rice mills. At MCB he is a member of the Audit Committee. Mr. Abdul Farid Bin Alias Mr. Farid is the Head of International at Maybank, Malaysia. He has held senior positions at a number of Malaysian and global financial institutions primarily in the area of Investment Banking. From April 2009 to May 2009 he served as a member of the Committee on Physical Planning, IT System & Contingency Arrangements at MCB. Mian Umer Mansha Mr. Umer Mansha was elected as a Director to the MCB Board in November 1997 and served till September 2007. He was re-elected as a Director at MCB in the 61st AGM held on March 27, 2009. Presently he is the Chairman of the Risk Management & Portfolio Review Committee and is member of the Business Strategy & Development Committee at MCB. In addition, he is a Director on the Board of Adamjee Insurance Company and Pakistan Business Council. Mr. Muhammad Ali Zeb Mr. Muhammad Ali Zeb is currently the CEO of Adamjee Insurance and has more than 15 years of professional experience in Finance, Insurance & Manufacturing sectors. He was elected as a Director at MCB in the 61st AGM held in March 2009. At MCB, he is a member of the Audit Committee.

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Management Styles
Managers have to perform many roles in an organization and how they handle various situations will depend on their style of management. A management style is an overall method of leadership used by a manager. There are two sharply contrasting styles that will be broken down into smaller subsets later:

Autocratic Permissive

Each style has its own characteristics: Autocratic: Leader makes all decisions unilaterally. Permissive: Leader permits subordinates to take part in decision making and also gives them a considerable degree of autonomy in completing routine work activities. Combining these categories with democratic (subordinates are allowed to participate in decision making) and directive (subordinates are told exactly how to do their jobs) styles give us four distinct ways to manage: Directive Democrat: Makes decisions with participation of all people. Supervisor closely supervises subordinates. Directive Autocrat: Makes decisions unilaterally. Supervisor closely supervises subordinates. Permissive Democrat: Makes decisions participation of all people. It gives subordinates latitude in carrying out their work. Permissive Autocrat: Makes decisions unilaterally. It gives subordinates latitude in carrying out their work. Managers must also adjust their styles according to the situation that they are presented with. Below are four quadrants of situational leadership that depend on the amount of support and guidance needed: Telling: Works best when employees are neither willing nor able to do the job (high need of support and high need of guidance).

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Delegating: Works best when the employees are willing to do the job and know how to go about it (low need of support and low need of guidance). Participating: Works best when employees have the ability to do the job, but need a high amount of support (low need of guidance but high need of support). Selling: Works best when employees are willing to do the job, but dont know how to do it (low need of support but high need of guidance). The different styles depend on the situation and the relationship behavior (amount of support required) and task behavior (amount of guidance required).

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Financial Analysis

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BUSINESS VOLUME
Business volume in terms of Deposit, Advances and Revenue investments for the last five year as under:

REVENUE
Particulars Mark-up / return / interest earned Fee, commission and brokerage Income Dividend Income from dealing in foreign Currencies Gain on sale of securities Other income Total Revenue 2011 2010 2009 2008 -------------------------Rupees in 000----------------------68,356,191 68,146,588 54,821,296 51,616,007 40,043,824 2012

5,934,472

5,117,196

4,129,540

3,331,856

2,993,394

1,197,615 822,856

1,003,272 921,262

543,906 632,346

459,741 341,402

617,554 727,564

824,539 373,849 77,509,629

735,639 334,822 76,258,779

411,834 547,680 61,086,602

773,768 736,118 57,258,892

740,429 855,697 45,938,462

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DEPOSITS
Particulars 1. Customers Fixed deposits 80,649,846 Saving 268,923,547 deposits Current 183,107,714 Accounts NonRemunerative Margin 3,520,404 Accounts Total 536,201,511 Customers Deposits 2. Financial Institutions Remunerative 6,090,878 deposits Non2,695,702 remunerative deposits Total 8,786,580 Financial Institutions Deposits Total 544,988,091 Deposits 91,501,846 225,920,953 161,680,596 80,073,848 196,015,213 144,545,488 62,651,531 173,797,078 123,898,324 61,680,332 150,927,938 105,310,862 2012 2011 2010 2009 2008 -------------------------Rupees in 000-----------------------

3,511,830 482,615,225

3,482,526 424,117,075

2,910,655 363,257,588

3,137,434 321,056,566

6,319,827 2,253,658

4,128,090 3,126,772

2,258,295 2,088,061

5,197,969 3,926,526

8,573,485

7,254,862

4,346,356

9,124,495

491,188,710

431,371,937

367,603,944

330,181,061

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1.3.3 ADVANCES
Particulars Total Advances 2011 2010 2009 2008 -------------------------Rupees in 000----------------------239,788,511 227,573,618 254,551,589 253,249,407 262,135,470 2012

1.3.4 INVESTMENTS
Particulars Investments 2011 2010 2009 2008 -------------------------Rupees in 000----------------------405,601,313 316,651,613 213,060,882 167,134,465 96,631,874 2012

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Raito Analysis

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Specialized Analysis of MCB


Items Involved Earning Assets Total Assets Net Margin Net Profit Deposits Capital Pretax Income Provision for NPL Net Charges Off Loans

Years Concerned
Current Year: 2012 Base Year: 2011

Name of Ratio Earning assets to total assets ratio Return on earning assets Net margin to earning assets

2012 84.13%

2011 83.80%

Result Favorable

3.24%

3.55%

Unfavorable

6.34%

8.13%

Unfavorable

Deposit time capital Loan loss coverage ratio

5.36

5.53

Favorable

67.62

11.94

Favorable

Loan to deposits ratio

.44

.47

Unfavorable

Reasons for Changes Increase in earning assets by 17.7% Increase in earning assets by 17.7% Decrease in net margin by 8.24% Increase in earning assets by 17.7% Increase in capital by 14.58% Increase in pretax income by 1.81% Decrease in bad debts by 99% Increase in deposits by 10.96%

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Critical Analysis
Activity The effectiveness of management towards utilization of resources is favorable in current year as compared to base year as the indicator calculated has shown favorable results. The positive activity of the Muslim Commercial Bank is majorly because of increase in earning assets which is about 17.7%. Profitability

The analysis of the ability of the business to generate return for the owner indicates that it is unfavorable in current year in comparison with base year as all the indicators calculated analyze the firms performance relating to the owner is decreasing. The major reason of this decrease in profitability is associated with increase in earning assets which is 17.7% and decrease in net margin which is 8.24%.
Debt to Equity Ratio The debt to equity ratio of MCB indicates a favorable impact. As the deposits of a bank show the worth of the bank so the increasing ratio indicates the increasing worth of the bank. At the same time decreasing ratio is also favorable because it shows the solvency of the bank. So in this case the ratio is decreasing showing the solvency of the bank. The decrease in the ratio is majorly associated with increase in capital by 14.58%. Loan loss coverage ratio

This ratio indicates the companys ability to cover the loan losses. The result of the ratio indicates that the companys ability to cover the loan losses is favorable in current year. The increase in ratio is associated with increase in pretax income by 1.81% and a major decrease in bad debts by 99%.
Loan to Deposits

The liquidity ratio of the company indicates that the liquidity of MCB is unfavorable in current year as compared to the base year. The decrease in liquidity is majorly associated with increase in deposits which is 10.96%. The increase in loans (4.98%) is less than the increase in Deposits, thats why the resultant impact is negative.

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Market Analysis In market analysis we check the strength of the company in the market. It can be checked internally and externally. Items Involved Net Profit No. Of Shares Outstanding Market Price Book Value Years Concerned Current Year: 2012 Base Year: 2011

Market Analysis Name of Ratio EPS 2012 22.76 2011 23.23 Result Unfavorable Reasons for Change Increase in no. of shares by about 10% Decrease in EPS by 2.02% Increase in market value by 55.8% Increase in market value by 55.8% Increase in market value by 55.8% Decrease in EPS by 2.02%

P/E Ratio

9.21

5.79

Favorable

Market to Book Value Dividend Yield Dividend Payout Ratio

1.89

1.26

Favorable

6.25%

8.92%

Unfavorable

61.50%

55.97%

favorable

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Critical Analysis The analysis of the company with respect to the strength of the company in the market indicates that the companys overall performance is better and has better market potential in the comparative years concerned as the majority of the indicators relating to the market potential are favorable in current year as compared to base year. The reason for the favorable market strength of the company is increase in market price of the share by about 55.8%. The investor is much more satisfied as for as its return is concerned because of high dividend in current year. As for as internal potential of the company is concerned, it is favorable in current year as the dividend payout ratio is favorable in current year. The increase in dividend payout ratio is majorly associated with the decrease in earnings per share by 2.02% and increase in cash dividend. The increase in the market value boosts the investment for the company as it indicates the external potential of the company. Moreover the gap between market value and book value in current year is more than the base year which indicates that in current year more speculation factors involved. In a nut shell, the entire analysis concludes that the company is good both externally and internally which shows that it can attract and retain the investors. However room for the improvement is there.

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Solvency Ratio Solvency ratio is one of the various ratios used to measure the ability of a company to meet its long term debts Items Involved Assets Cash & balance with treasury bank Balance with other banks Lending to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets Debts Bills payable Borrowings Deposits & other accounts Subordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities Equity

Share capital Reserves Unappropriated profit Surplus on revaluation of fixed assets

Years Concerned Current Year: 2012 Base year: 2011

Capital structure of the bank

Name of Ratio Debt Ratio Equity Ratio

2012 .867 .132

2011 .864 .136

Results Unfavorable Unfavorable

Reasons for Change Increase in Total Debts by 17.67% Increase in total assets by 17.24%

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Critical Analysis The capital structure of the company indicates that the company is a debt oriented company as the debt ratio is far more than the equity ratio which is good because banks deposits show the worth of the bank. Furthermore the debt ratio of the company is increasing which is majorly because of increase in total debts by about 17.67% which indicates that the companys deposits are increasing. It means that the company is utilizing more debt in current year.

Earning Assets to Total Assets Ratio

2012 91.6%

2011 91.87%

2010 91.44%

2009 91.95%

2008 91.65%

Critical Analysis

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Return on Earning Assets

2012 2.99%

2011 3.19%

2010 3.23%

2009 3.75%

2008 3.32%

Critical Analysis

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Net Margin to Earning Assets

2012 5.80%

2011 7.41%

2010 7.05%

2009 7.60%

2008 6.97%

Critical Analysis

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Deposit Time Capital

2012 59.24

2011 58.74

2010 56.73

2009 53.18

2008 52.54

Critical Analysis

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Loan Loss Coverage Ratio

2012 18.5

2011 11.88

2010 9.39

2009 4.99

2008 16.86

1.3.1

Critical Analysis

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Human Resource Management

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Structure of the HR Department


HR Structure

President

Group Head HRM

Div Head HRM

Head compensation

Head Financial Services

Head HR Operations

HR dac, Recruitment & training

Head Organizational Development

Compensation Manager

Manager Staff Services

HR Associate Training

Relationship Management

Manpower Budgeting & Planning

Senior HR Associate

Senior HR Associate

HR Relationship

Manager
Assistant Compensation Associate Staff Services

Senior Relationship Manager

HR Relationship Manager

HR Associate disciplinary action

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Human Resources Committee

Mian Mohammad Mansha Chairman Mr. Mian Raza Mansha Mr. Ahmad Alman Aslam President / CEO Member Member Member

Terms of Reference The main tasks of the human resource committee are ensuring review of existing policies and revision in these policies as deemed necessary. Proper classification and reclassification of employee, pay scales, job description and methods of periodical reviews, description and methods of reviews, development of in-house expertise, approval and revision of organizational setup of latest criterions for recruitment, training and performance appraisals and effective management of information systems to monitor implementation of policies as approved by the board. Raza Mansha is a member of business strategy & development, human resource, risk management portfolio review, physical planning, IT system & contingency arrangement committees. Mr. Shahzad Saleem is the chairman of NISHAT CHUNAIN power limited & Director of MCB. Muhammad Ather is head of requirement & training and Fawad Ahmed Khan is HR manager.

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Human Resource Department


The Human Resource Department (HRD) supports the importance of the individual while thinking strategically. HR conveniences the establishment of an atmosphere in which people has the incomes to continuously grow in motivated for carry on improvement for the remunerations of all stakeholders. Situated as strategic business unit within the commercial structure of the MCB, the HRD has as its prime responsibility to give to the organizations efficiency by attracting its people and line up the strategies, actions and systems to the policy of the business. It is through this that HRD adds value to the institution. The Human Resource Department conveniences and partner with its customers and MCB staff in applying the planned strategy through. Capability grounded HR systems Policy and Actions Evolving abilities Appearance organization Clear and exposed statement Remuneration and appreciation Employee happiness Variety Agreement

Human Resource outlet is to assurance the important services, progresses and policies are in place to succeed employee to accomplish at their finest, be safe and satisfied with their work and be properly developed. Human Resource is also vital to settle that employees energy in an atmosphere which is in unity with the department s values and best training. Human Resources area office is liable for the administration of the human resource role for the department of human services. This entails the responsibility for human resources systems, policy and training through the branch. The branch is planned to importance on planned human resource work, the supervision of departmental managers and human resources staff in areas and divisions. Human resources have a number of areas of focus including: Employee relation Employee security Management facilities Arrangement and concert

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Organizational capability Organizational growth and maintenance The human resource branch managers apply a number of organization-wide schemes throughout the department in the above areas, in association with human resource staff in area and programs.

Functions of HR Department
Human Resource Planning Human resource planning is the term used to describe how companies certify that their staff is the right staff to do the jobs. Sub topics include planning for staff recruitment, planning for candidate search, training and skills analysis and much more. Human resource forecasting and human resource audit are the two most important components of this type of planning. Human resource forecasting refers to predicting an organizations future demand for number, type and quality of various categories of employees. HR planning is done by the organization basically to ensure the following points: It has the right people in place It has the right mix of skills Employees display the right attitude and behaviors Employees are developed in the right way

In MCB method to forecasting HR needs are: Methods to forecast HR needs HR department in MCB uses following approaches to forecast its human resource requirement Firstly they used zero based forecasting techniques uses current level as starting point for determining future staffing needs. Secondly they adopt bottom up approach each level of organization, starting with lowest, forecasts its requirement to provide aggregate of employee needs. Mathematical model: assist in forecasting. Relationship between sales demand and number of employees needed is positive one.

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Employees Recruitment & Selection


Sources of candidates Internal sources External sources Employment selection process Recruiting refers to the process of attracting potential job applicants from the available labor force. Every organization must be able to attract a sufficient number of the job candidates who have the abilities and aptitudes needed to help the organization to achieve its objectives.

Sources of candidates
While hiring, the organization has an internal as well as external pool of employees. The current employees are the internal source for recruitment. Whenever a position is vacant, the organization can post the vacancy internally and search for a suitable candidate. This is also convenient for the organization as it reduces the search time, cost and also serves as motivator for the employees. External sources includes all the people within or sometimes, outsides the country who meet the requirements of the job when the organization publish the job advertisements in newspapers and on websites, they are searching for the candidates through external sources that is outside the organization.

Internal sources
Some internal sources of requirement are given below Transfers In MCB the employees are transferred from one department to another according to their efficiency and experience. Promotion The employees are promoters from one department to another with more benefits and greater responsibility based on efficiency and experience. Upgrading and demotion Others are upgrading and demotion of present employees according to their performance.

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Retired and retrenched employees Retired and retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load work. Recruitment such people save time and costs of the organization as the people are already aware of the organizational culture and the policies and procedures. Deceased and disabled employees The dependent relatives of deceased and disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.

External Sources
Online advertising We advertise on our own website. Print advertising We advertise in the lawyer, legal week and other legal publications. Referrals/ recommendations One of our main sources of candidates is referrals and recommendations from other candidates who have placed.

Employment Exchanges
Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employees in identifying suitable candidate.

Employment Selection Process


Excellent employee selection starts with the main elements of the job description and the success factors. With the job parameters, responsibilities and skills/ knowledge and abilities laid out, the interview assessment becomes much more straight forward. The next step is to define which elements are most important and rank weight them accordingly 3-4 from each section sensible and do this before interviewing the candidates.

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Training and Development


The objective of training activities is to keep MCB employees well-informed of latest professionals knowledge and skills in all areas of banking, as well as to reinforce a passion for the highest quality of customer service at all levels. Training and development is essential to carry out the work and run the organization smoothly. Training and assessment can be as simple as asking an employee what theyd like to be able to do better to as complex as developing as individualized training plan for every employee. Learn how to select appropriate training need assessment approaches and tools. Training needs assessment is tool that helps you to create superior workforce. Training programs so are conducted continuously whenever training need is assessed and trainers in this case are the immediate supervisors.

Employee Development
Human resources management, training and development is the field concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. It has been known by several names, including employee development, human resource development, learning and development. Employee development is the process which includes an ongoing and joint effort of the employee and the organization and in which work is done to upgrade employees knowledge, skills and abilities. MCB shows concerns for employee development programs because it makes positive contributions to organizational performance. A more highly skilled workforce cab accomplish more and a supervisors group can accomplish more as employees gain in experience and knowledge.

Employee Compensation & Benefits


In an addition to competitive base salaries and incentives opportunities, MCB also offers comprehensive and competitive benefits to both full time and part time employees. Compensation is one of the top issues which employee look at when they want to join organization.

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Performance Management
Setting Performance Standards & Expectations Performance management is one of the most important part of supervisors job whether working with long term employee or a problem employee. All staff members need ongoing feedback about organization expectations and their performance. Standards of performance provided the basis against which the individual can be efficiently appraised. There are six conditions to consider when setting standards of performance: Standards of performance are based on the job and not on the person doing the job Performance is achievable Performance is understood by the employee performing the job Performance is agreed upon by both the employee and supervisor Performance is as specific and measureable as possible Performance should be time oriented

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How Organizational Performance get affected

External Environment
Administrative Political Social/Cultural Economic Stakeholder Technological Ecological

Organizational Motivation History Mission Culture Incentives/ Rewards

Organizational Capacity
Strategic Leadership Structure Human Resource Financial Management Infrastructure Program Management Process Management Interorganizational linkages

Organizational Performance Effectiveness Efficiency Relevance Financial Viability

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Organizational Career Management

The career management process begins with setting goals / objectives. A relatively specific goals / objective must be formulated. This task may be quiet difficult when the individual lacks knowledge of career opportunities and / or is not fully aware of their talents and abilities.

Job changes with the organization: Promotion In MCB, an increase in rank which may also be accompanied by a raise in pay, benefits and responsibility, most people view promotions positively, as they indicate that the individual being promoted is successful, valuable and useful in workplace. People actively work towards promotion and its benefits. Transfer In MCB, the change of an employee from one position to another position with the same salary range maximum is termed a transfer. Demotion A demotion is a reduction in an employees rank or job title with in the organizational hierarchy of company, public service department or other body. Serrations There are four types of serration Layoff Termination Resignation Retirement

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Layoff When a company eliminated jobs regardless of how good the employees performance is. 1: A risk reduction, made by investment bankers that minimize the potential down side associated with a commitment to purchase and sell a stock issue unsubscribed by stock holders holding rights. 2: When company faces financially difficulties. This is method whereby an investment banking firm, who has committed to buying up all unsubscribed shares during a right offering entering into the contract and selling the shares in other words, they are hedging against any losses due time. Termination Termination of employees is the end of an employees duration with an organization. Depending on the case, the decision may be made by the employee, the employer or mutually agreed upon by both. Resignation A resignation is a personal decision to exit a position, though outside pressure exists in many cases. A resignation is the formal act of giving up or quitting ones office or position. Retirement Retirement is the point where a person stops employment completely, a person may also semi-retire by reducing work hours.

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Labor Management Relations


In MCB, labor management relations are based on mutual trust between labor and management. Establishment of a relationship of mutual consent, mutual trust and respect between labor and management, personnel management is conducted in accordance with four basic principles: 1. Creating a workplace environment where employee can work with their trust in the company. 2. Creating a mechanism for promoting constant and voluntary initiatives in continuous improvement. 3. Fully committed and through human resource development. 4. Promoting teamwork aimed at pursuit of individual roles and optimization of entire team Recruitment The step to step recruitment process followed by MCB is: Job analysis is very important, as job analysis information is used in selecting and recruiting, compensation, performance appraisal, training and in resolving other issues which MCB faces to identify vacancy. Prepare job description and person specification Advertising the vacancy and sourcing focuses on activities to attract both passive and active candidates. Managing the Responses Short listing Arrange Interviews Conducting interviews and decision making and common strategies include peer interviews, panel interviews and the use of behaviorally-based interview techniques. Reporting includes surveying applicants and hiring managers collecting and analyzing applicant flow data, reporting performance and processing metrics.

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Marketing Strategies in MCB

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Segmentation Strategy
Marketing consist of buyers, and buyers differs in one or more ways. Customers are different in their need, wants, resources, locations, buying, attitude and buying practices. MCB is also using segmentation strategy by dividing the whole market into segments and search the right customer for their right product. Banks do segment demographically and geographically. In demographical segmentation, banks differentiate customers by their age, gender, education and in geographical segmentation, customers are separate by their area. Through segmentation banks divide large heterogeneous markets into smaller segments that can be reached more effectively with products and services. MCB segments its customers. For example, if the customer is near to retire, MCB offers the MCB Retire Easy Plan for the persons who are retiring from their jobs.

Target Marketing Strategy


Target marketing means after segmentation of the area, now you have to target your customers. You have to find out the right customer for the right product. Develop measures for segment attractiveness, select target market. MCB targets all types of customers in the country. Suppose MCB has branch in the market area where all shop are around the bank so MCBs target is all shopkeeper and for their better business allow them to open an current account ,single account, joint account ,business account. MCB allows the customer to open account which is suitable for him/her.

Product Planning, Development & Management


Product planning and development means develop a product according to your customers needs, wants and demands and give features what the customer wants. Every product is made by the head office of the MCB. Promotional activities update the features and benefits about the product and this is settled by marketing department of the MCB. First bank typically generate many ideas in order to find out a few good ones. Major sources of idea include customer wants and demands. When the idea generation is done then bank do idea screening.

Product Management
As you can understand by the name, product management means manage the product. Bank has to manage its products whether they are entertaining the customer or not. If not, then MCB should update their features to entertain the

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customers. MCB provides better products to its customers, maintains the products and also includes new features to the product if needed.

Positioning
Positioning is a process of fit the picture of your products, brands and organization image in the customers mind. MCB has strong image in its customers mind by its strong products, wide range of network in the Pakistan and across the country. MCB also do advertise through newspapers, broachers, television, billboards, hoarding and personal dealings. Positioning is how you want to show yourself in front of customers. MCB do advertise and try to positioning to the customers mind and also aware the customers about the product.

Pricing Strategy
Price is the amount of money which is charged for a product or service or the sum of the value the consumers exchange for the benefits of having or using the product or service. Price has been the major factor affecting the buyer/consumer choice. This is also another method to help banks overall performance. Before setting price the employee must look the relationship between price and demand. Pricing strategy is the most important strategy because price can generate revenue of the product and price tells the worth of the product. It is so difficult process to estimate the mind of the customer that he will adapt this product with the offering pricing or not. MCB charges different price with the different product and services .Suppose you are availing the benefit of ATM card so you have to pay 500 per year and if you are having any locker of small size, then you are paying 1500 to 1800 to the banks as service charges.

Distribution Strategy
Distribution means movement of goods and services from producer to consumer. So MCB has opened many branches all over the Pakistan to entertain its customers and customers may have easy access to products and services of bank. Management selects the area where should open a branch. Distributing is one of the marketing mix strategies.MCB has many branches in the country and also overseas.

Competitive Strategy
To be competitive, MCB has further reinforced its position in the consumer banking arena by streamlining and re-launching the consumer financing products and introducing more convenience based solutions. With the re-launch of auto finance and house finance products, the bank pushed the products with full thrust.

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The bank has also launched a running finance facility against mortgage of property. Technology continued to play an important role in improving and expanding product offerings. The bank introduced more IT based products to cater to the changing lifestyles and needs of the customers. MCB Virtual-Internet banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the Pakistan. MCB also has the privilege of being the first bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet banking, ATMs and MCB Call Centre, currently with six payment partners. Similarly, the Bank also took initiatives to increase the usage of debit facility. To provide timely and updated information, MCB has also provided a new look to its website which is user friendly and considerably easy to browse. The Islamic banking initiative has been very successful in attracting new customer, both individuals and companies. Similarly, those relationships which were confined only to current account facility, have grown into stronger business relationships. The branch network has been expanded to Lahore, Multan, Hyderabad and Faisalabad. The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs. Some wide-ranging new strategic initiatives have also been taken up which will be important for the bank in years to come. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of selected countries in the AsiaPacific region. It is projected to earn US$ 1 million in its first year of operations. To increase its international presence, the bank has opened its representative office in Dubai and entering into major strategic alliances with banks in the UAE especially for marketing our consumer banking products to non-resident Pakistanis. Furthermore, feasibility is also being carried out for entering other international markets. MCBs operations are continued to be streamlined with focus on rationalization of expenses, re-alignment of back-end processing to increase productivity, enhancement of customer service standards, process efficiency and controls. The bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency, expertise and reduce delivery cost.

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Management of Human Resources has been one of our core focus areas. MCB is committed towards attracting, retaining and motivating outstanding people. Challenge for MCB is to provide an environment in which employees can better realize their potential. The bank introduced reward for performance where high potential officers were identified and rewarded accordingly. In view of the competitive environment, the bank is focusing on performance and introducing a more robust performance management system. MCB is also strongly committed to training its staff at all levels. The bank will also be implementing the full suite of the latest version of SYMBOLS Version 8. MCB bank will run SYMBOLS E-Finance modules to deliver personalized services to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will serve as its core banking transaction-processing engine. By implementing SYMBOLS, MCB bank aims to raise the level of its customer service and its time to market in new product offerings for its three core banking businesses in Corporate, Commercial and Consumer banking retaining its market leadership as Pakistans progressive bank.

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Training Services of Marketing offered by MCB


MCB Communications offers professional service firms a variety of programs, including: Flexible Programs We work with each client to design a program that reflects the firm's business development priorities and marketing budget. A firm may start with individual skills training for one or two professionals then decide to move forward with a more comprehensive firm-wide marketing program. Whether we are working with the firm, specific practice groups, or individual professionals, our objective is to develop realistic strategies. We are always mindful of a client's unique culture and work to create a marketing environment that fits. Measuring Success After hiring MCB, how will your firm measure the return on of its investment? Success at business development does not happen overnight. So your firm has to become a more serious and effective competitor. To be a serious and effective competitor, your firm must identify potential opportunities for business development and the right target audiences. Your firm must develop a strategic marketing program and stay focused on your goals. Your firm must take steps to differentiate itself from the competition. Your firm must communicate its message effectively to clients and prospects. The marketplace will continue to evolve. And your clients' expectations will continue to change. Working with MCB, you will remain an active and focused participant in this process. The Virtual Marketing Department Not every professional firm requires an in-house marketing staff. But any serious commitment to marketing requires an organized and on-going effort at business development. MCB becomes your "virtual" marketing department. We work with you to develop your firm's marketing priorities as well as strategies for specific practice groups. We coordinate marketing meetings, help to develop and implement marketing activities, client communication programs, and other ongoing initiatives as appropriate.

Skills Training for Professionals Some of your best professionals may be uncomfortable with marketing. They may not have taken advantage of their skills or the contacts they do have to reach their full business development potential. We work with these professionals on an

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individual basis so they begin to think differently about clients and business development. We help them to create an individual business development plan and support their efforts at implementing the plan. Analysis of Existing Marketing Programs Is your existing marketing program producing the results you want? Does your firm even have a marketing plan or strategy? Are your practice groups competing effectively? Are your marketing resources being used wisely? MCB brings an objective and experienced perspective to analyze your current approach to marketing. We provide recommendations for change and work closely with your organization to develop a new strategic approach. Client Satisfaction Programs Client satisfaction is the key to repeat business, client retention, and increased referrals. We provide small group workshops and lectures so that all your professionals - senior partners or managers as well as junior associates understand the importance of client satisfaction and how to manage client expectations. We work with you to design and implement client satisfaction programs to distinguish your firm from the competition. We conduct client satisfaction interviews of key clients to gather information critical to maintaining and enhancing these important relationships. Client Communication Programs How well your firm communicates with both existing and prospective clients is critical to your marketing success. We assist firms in developing an effective client communication program. There are numerous elements to an effective program, including keeping your clients informed about developments that may have an impact on their business or personal goals. It is also important for individual professionals as well as the firm to build a portfolio of marketing materials which may include published by-lined articles.

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SWOT Analysis of MCB

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Strengths
MCB is the first Pakistani privatized bank and because of its quality management, marketing, innovation in products and services is performing well in financial market. MCB has established a good reputation in the banking market. Strict adherence with the banking procedures requirements, SBPs prudential regulation requirements and its SROs and international banking requirement as well as to its own set policies. MCB has strong and positive image in customers mind because of its attractive products. Better focus on customer services and customization. Flexibility with the changing environment. Induction of the highly qualified professionals to change overall set up. MCB has very stable deposit base. MCB is largest private bank in Pakistan with around 1000 branches, which cover almost every part of Pakistan. The bank enjoys competitive advantage over other banks in Pakistan. The bank enjoys competitive profitability in the industry. MCB has captured majority of potential customers in Pakistan. MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC etc. MCB is Successive and Market oriented. MCB investing huge sums on HR development and training. 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. Laying foundation on sound basis; recently for this, they met with the ORACLE representative of South Asia, to purchase ORACLE software for their banking system and transform its environment in such a way so as to come in line with those of other international banks. Establishment of TFC: Centralized import and export center of MCB in one special circle taking this extensive burden from branches, whereas no other bank has done this so far.

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Maintaining an Excessive Earning Acceleration, this is expected to result in substantial value enhancement for investors. EUROMONEY Awards of Best Bank in Pakistan for best bank in Pakistan, plus the accolade of best domestic band in Pakistan. Extensive Management Restructuring to translate into bottom line improvement for going forward. This includes induction of professionals in strategic business areas, shedding surplus staff and shutting down loss making low potential branches. From 1996 onwards some 350 Branches were closed down & releasing staff of approx 4600 with golden handshake. Larger Market Share: MCB accounts for 10.4% of total assets, 10.0% of deposits and 11% of loans in the banking system. So it has a clear edge over smaller banks. Striving for income: New Team after massive restructuring is looking to strive for greater operating income. Since 1996 bank has been able to gain some net positive Profit After Tax amount consistently and will be aiming to do so in near future. Perhaps the only large bank in Pakistan to have a formal electronic banking research cell that is exploring the technical requirements and market size Potential of Internet Banking. Promotion Effectiveness: MCB has developed a very encouraging promotional principle which create great loyalty and motivation in employees towards the bank. Team based Approach: MCB is team of loyal and faithful experts who keep quality of services done, outstanding performance and presentation. Projects are accomplished through members connectivity working as team. Continuous Improvement: MCB bank held diverse training programs which enable the members or staff upgrade their knowledge. MCB has taken

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initiative to introduced new schemes regarding its product and services. In this way, it continuously made improvement in its employees and services. Employee Respect and Dignity: Every employee in the organization is given due respect and honor irrespective of its status and level. Employees feel proud to be a part of the MCB. Quest for Quality: MCB bank always try to give its customers quality product and services to keep them permanent client of the bank. It always uses different channels to improve the quality.

Weaknesses
The majority of people are not well aware about the products of MCB. Therefore it should advertise extensively especially RTC and Master Cards. A behavior has been noted that bank tries to feel at ease with good looking, rich and educated people and the poor looking customers feel some bit strange in the environment of the bank. The bank employees should try to accommodate behaviorally all type of customers. In MCB there is lack of specialized skills because of job rotation policy of human resource department. The bank should concentrate upon increasing its abilities on individual service basis. Mismanagement of time is another big mistake in MCB branches, the bank official time of closing is 5:30pm but due mismanaging of time allocation and work the staff is normally on their seats till 7:00 or 8:00 clock. Process of development is bit slow due to its conservative approach. Never prefer to be a leader and prefer to be a follower of others. Slow improvement and acceptance of technological changes. More emphasis on deposit accumulation and less on their mobilization. Decision making process is very slow. It is not having greater no. of branches abroad. Though ATM network is the largest in Pakistan, still some potential areas dont have the ATM. MCB RTC is useable only in Pakistan. Some management positrons needed are not professional. Although most of the branches are computerized now, still some important branches dont have computers. Low motivational level; non-aggressive marketing. Employees dissatisfaction due to ill treatment and improper reward system.

Favoritism and Nepotism in recruitment.

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Interest rate is inadequate. Extensive Management Restructuring though beneficial has some negative
impacts on the existing performance of work. Such large scale restructuring results in too much load on single person plus the fear of being fired from the job at any moment. It is extremely condemnable that sometime a circular is kept clandestine and not disclose to the staff by the branch managers which is in line with their needs due to some inexplicit ulterior motives. Lack of Job Rotation: Job rotation has not been given due consideration and employees get bored due to monotony. No Conspicuous rise in Staff Salary. Management apart from lack of other employees benefit funds, nothing is done to enhance the staff salary to be used as basic motivational factors in an effort to cut down the administrative cost by the management.

Opportunities Greater potential and opportunities for Credit Division if Liberal Policies
being adopted.

MCB can grab more market share for its RTCs, remittances and forex
department through effective promotional and liberal policies.

Inclusion of highly qualified professional can change the whole scenario


and position of the bank if they have given the due liberty in performing their duties. Adoption of information technology will improve the customer services.

More mobilization of accumulated deposit is possible through innovative


financing to Agro Based Sector. 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. MCB is providing Consumer Finances at comparatively lower rates which paves a way to grab more customers Financing to small/medium cottage industries will definitely increase its advances and profitability as well.

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Islamic Trading Based Banking can enhance the business of the bank. Targeting of Hundi / Hawalla through networking and IT potential of MCB. Profitability is expected to strengthen despite decline in interest rate. The drop in interest rates is expected to spur the private sector credit growth in an effort to kick-start the dormant economy serving as impetus for productivity activity in economy; which is likely to compensate for lower interest margins that result from less than proportionate drop in deposit rates. Banking sector fundamentals improving; on the back of economic stabilization, improved monetary and foreign exchange reserves

management by the central bank and drive against loan defaulters. MCB with its large branch network and huge diversified clientele is placed to benefit from lower NPLs, a new dynamic and cost conscious management, and greater credit demand on the back of governments conscious initiative towards a deflationary monetary policy. MCB to show growth in value creation. More Focus on consumer banking activities. Strong earnings momentum expected in future, through focus on loan book growth, efficient utilization of idle cash and declining NPL. Deposit expected to grow in future: The Governments decision to lower interest rates has challenged the banking sector, including MCB, on the deposit mobilization front. At the same, however, MCBs large branch network coupled with its excellent market standing compared with other banks offering similar returns on deposits is expected to retain even bolster its deposit base in future at the expense of less efficient public Sector competitors.

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Threats
Change in government policies has affected the banking business. Still banks have to wait to get permission of state bank. The freezing of foreign currency accounts is a vital example of letting people not to trust on banks. The Competition has become severe by the entrants of so many banks, So to exist one will have to prove himself in its services through excellent management and will have to satisfy its shareholders. Otherwise he will be out the market. Employees unions have been allowed if not managed properly can affect performance. The decrease purchasing power of consumer in the current economic situation of the country affecting the business activity speed too much and the result is the low investment from the investors in new projects can create problem for the bank because it is working a lot in trade. Introduction of credit marketing by local and foreign banks is badly affecting the mobilization of the MCBs deposits due to the non presence of such department in it. Other private commercial bank with sound profitability is also a threat to MCB e.g. UBL, Al falah, HBL etc. For the last of many years, Pakistan is facing economic and political instability which is a big threat. Afghan war and Iraq war has a deep effect on the economy of Pakistan, which may affect MCB. Foreign banks are flourishing in field of consumer financing. People dont prefer banking culture. They mostly prefer cash transactions. MCB since 1996 is performing well in all most every department at national level particularly. However if there is some competition that MCB may expect to face come from the four nationalized commercial banks, which compete with the MCB in terms of deposit mobilization at retail level. Other banks working on the same phenomena seeking for proficient and efficient staff is expected to enamor qualified and experienced employees

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of organization by offering some brilliant incentives in the form of high salary and other benevolent funds and this thing may also attract existing efficient staff of MCB. To some extent they seem to be effective in their efforts.

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PEST Analysis of MCB

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Political
Employment practices are expected to change. Unions, Associations are being allowed to work effectively which can affect the performance of the company both positively or negatively. Political interference regarding policies is expected to increase as current government is in race of power gain. Due to lack of confidence on government investor is reluctant so mobilization of funds is going to decrease.

Economical
Inflation is very high which will decrease the demand as purchasing power is decreasing. Staff cost is increasing as basic wage rate has increased and inflation has compelled to will compel to increase salaries. Operating costs are increasing due to inflation. Interest rate is increasing so loan taking has decreased. Value of rupee is decreasing which is pressurizing the economy.

Social and Cultural


Lack of experts is in our country regarding management hence innovative activities are slow and conventional methods are adopted. Cultural strain to savings is the reason due to which investment remains low. Declining work ethics is also our problem which is mainly due to poverty and lack of training. Inadequate Accountability, lack of good governance and lack of good infrastructure helps creditor to cheat and heavy bad debts occur. Same situation is hoped to prevail. Inadequate Empowerment is also a usual problem in our organization as every person want to get more power hence there is less delegation of authority and decision making.

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Technological
MCB has computerized its most of the branches but still some are manual there is need to computerized otherwise customers will get bad image. Now a days computerized system is used by banks which is very effective. But MCB will have to improve its computerized technology as some fake transactions occur by ATM. Shortage of electricity is a big problem,

Employees of each organization need IT training and organization has this


trend. MCB will have to follow it.

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Internship Program
I worked as an internee in MCB Qila Didar Singh Branch. Branch code is 1474. Duration of my internship was from July 2, 2012 to August 10, 2012. During my internship in the MCB limited, I really enjoyed to work with the staff of MCB. It was almost impossible to work in all the departments within that limited time. But on my request the staff of branch provided me the opportunity to work in the different departments within that limited time for the sake of practical knowledge and for providing me the great environment to work in different departments. During the Internship, I worked in various operations as general banking including cash operation, clearing remittances, ATM, account opening procedure and advances. Although my specialization subject is HRM. But there was no Human Resource department in the branch in which I did internship. The recruitment procedure is done in Head Office or Circle Office.

Personal Objectives of doing internship in MCB


To get some experience in working with well reputed organization. To gain knowledge about the professional environment of the bank. To know about the technology utilized in the banks. To deal and mange with the situation of stress. To know about the documentation process of employee of the bank Purpose of internship Internship is the capstone experience that provides me with hands on, real world experience in a work setting. Integrate and use my knowledge and skills from the classroom. Discover where further competence is needed. Take steps to gain that competence under educational supervision. Become better acquainted with the types of work setting in which such competence can be applied.

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Qila Didar Singh Branch Hierarchy

General Manager

Ammad Anwar (B.M)

Mohsin Raza (B.O.M)

Asghar Cheema (credit mgr)

Mr.Naeem (Agri Mktg Officer)

Miss.Noreen (C.S.O)

Mr. Awais (supervisor)

Mr.Riaz (Remmitance officer)

Mr.Mubashr (Chief Teller)

Fakhar Abbas (Teller)

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Tasks performed during internship


Providing all kinds of information to customers The basic and foremost purpose of customer services officer is to provide information to any existing or potential new customer regarding account opening process, types of account offered in MCB, credit information or information concerning various products and services offered by MCB. There is no separate customer interaction department but there is a customer service officer whose name is Miss Noreen Akhtar. So I sit with her to provide information to customers. Flooring A greeter or working as a phone operator is also one of the fundamental duties of a customer services officer. As a greeter, the customer services officer perform the following duties and functions:

To receive calls from customers and forward them to the required personal To make calls to people required by the bank employees To make calls to the customers whose check books and ATM have been arrived To receive courier and make record of mail in DAK receive register. To send mails to the customers after filling out the envelops To make record of calls made Being a greeter is very tough job, as a greeter has to deal with different types of customers. They may have angry, rude behavior and it is the great responsibility that the customer should not enter in the bank without any directional guidance from the greeter. One has to remain alert at all times while serving as a greeter. Filling Deposit Slips for Customers The formal employees and internees often fill the deposit slips. Formal employees at each level right from the cash officer to operation manager fill the deposit slips. Often literate customers who have some know how about the banking slips or who are the regular customers fills their slips by their own self. The work done by customer relation officer and general banking officer are as follow: Attend phone calls Scanning of signature specimen (SS card) and its attachment Handling of return cheque

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Daily clearing Update KYC Filling deposit slips Attend customer inquiries Received ATM forms Issued ATM cards Made charges vouchers for TT/DD/PO Worked on the seat of ACCT opening/cheque collection/opened accounts Issued cheque books Received check book requisitions

Other Learnings
I learned whole process of account opening of individuals practically. I remained involved very much in practical activities of account opening. Miss Noreen, whose duty was account opening would remain very busy as number of customers coming for account opening and getting information was high. So I assisted her. I havent issued any cheque book personally, but the procedure is very simple for issuance. I observed the process. I filled many applications form for remittances. I prepared remittance slips and learned to apply tests on TT and MT. I processed the Inward cheques for collection and clearance, and have also prepared vouchers. Every transaction which takes place recorded in the computer so all transactions in different departments are forwarded to account department. I was not allowed to use software but I observed all the functions. Mr. Asghar Cheema was credit officer who explained me the procedure of advances. Mostly work is done through computer. I observed how the application is processed. I think it sufficient to know the procedure. In cash department I observed the process of deposits, filled deposit slips, and learned how the cash registers are maintained.

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Detailed Description of Work


TIME PERIOD DEPARTMENTS Week 1 and 2 Customer services DUTIES PERFORMED Doing flooring and greet customers Make entry in DAK registered Fill ATM transaction dispute form for the customers Handling phone calls Taking messages over the phone Fill statement application form for the customers Do daily branch assessment and maintain a file for it Do daily telephonic audit of employees and maintain a record for it Filling of the house of the daily checklist and house keeping Write customers complains at the portal and make sure that these complains are resolved within turnaround time Made daily deposit report at the end of each day and send to the are head Made daily sales team progress report and send to the are head at the end of each day Learn about over the phone customer services

Week 3

Operations

Prepare fuel assignment of branch by following two patterns Learn how to make entry in cheque stop payment register and observe the process Observe the process of making entry in ATM fact sheet Learning bank operation guideline Observing processing duties performed Learn how to complete account opening form Checking new account form and

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make entry in account opening register Make entry in TDR register Learn how to fill know your customer form Do the correction of account snd opening forms Learn the concept of inward and outward clearing Learn the concept of within city or intercity clearing as well as CC Learn how to make entry in clearing register and return clearing register Learn how to make entry in cheque book register and ATM register Learn how to issue cheque book and ATM Observe the cheque transfer process Observe the foreign remittance process Learn how to fill deposit slip Learning the cash limits Learning cheque cashing details Withdrawals and deposit limits Opening and closing cash count Deposit gold customers money Help in separating solid currency at the end of the day

Week 4

Remittances/ Forex

Week 5

Cash department

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Week 6

Sales calls

Sales calls with personal banking advisor Learning different techniques regarding sales Observing the new account forms To Make calls to the customers regarding C-Z 50 form (zakat ) To make calls to the customers regarding dormant account Observing personal clients handling Learn about different products offered by the MCB

Benefits of doing Internship


During my internship I dealt with many customers and employees, this was a great experience to learn How to deal with customers How to work under pressure i.e. in rush hours. How to manage an office. My communication skills were improved. I observed some signs of mismanagement which I think can be removed if branch manager take more responsibility. I observed the practical application of many accounting concepts.

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Future Outlook of MCB


The effectiveness of the economic reforms was the main concern in 2011 as the country is highly volatile with respect to the systematic risks. The pace of the growth of loan infection is likely to reduce in the coming quarters. The maintenance of the discount rates is the key factor to curtail the inflationary pressure on the cost of credit. Infrastructural developments, control on war on terror, power shortage mitigation, encouraging the private sector, trim in the political instability and the sustainability of the tax reforms in order to meet the international debt are the likely factors of focus in the upcoming year. We are hopeful, given the increasing foreign reserves and reviving investor confidence, the economic conditions will be comfortably better than previous years. From the Banks perspective, the focus will be provision of value added services via operational expansion and technological improvements. Effectiveness of the Banks risk management systems, capitalization on low cost liability franchise, disciplined expense growth, expansion of our capital base and strengthened compliance culture are primary factors in depicting continued strong financial soundness. Effective leadership with a clear vision is the key element of long term sustainability leading to highest levels of employee satisfaction and our aim is to build cohesive teams and strong ethical standards. We will strive to enhance our domestic as well as global image to take the Bank from strong to stronger. Corporate Awards and Recognition The Annual Report of the Bank for the year 2009 won: Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan Certificate of Merit Award in the Banking Sector subject to Prudential Supervision category by the South Asia Federation of Accountants (SAFA), an APEC body of the SAARC region. MCB is also listed as one of the top 25 listed companies acknowledged by the Karachi Stock Exchange.

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Recommendations and Suggestions


From the quantum of the profit and its financial data, it can easily judged that after privatization Muslim Commercial Bank is performing very well. Its deposits are growing day-by-day and so its profitability. The controlling body is responsible for the productive performance of the bank. Following are my observations and suggestion to improve the efficiency for the development of the bank. Increase in Profits People can be motivated to save money by offering the deposit through various investment schemes. The rate of profit should increase 1% or 2 % it would be profitable step for bank. Increase Salaries MCB is making good profits but giving less pay to their employees as compared to their competitors. So their salaries should be increased. Change the Nature of Work Most of the bank employees are sticking to one seat only with the result that they become master of one particular job and loose their grip on other banking operation. In my opinion all the employees should have regular job experience all out-look towards banking. Their promotion policy should be adjusted accordingly. Training Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. Some more reading material should be provided the purpose should be to educate the employees with the advance studies in their field. The employee should be provided the opportunities to attend and participate in seminars and lectures on banking. Incentive to Employees Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. Such system should be designed that every employee who has some problems with his officers can communicate to the higher management and some steps must be taken to improve that.

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Performance and Reward Smart, educated, skilled, well spoken and well versed staff personals should be rewarded and appreciated, while on the other hand lazy, lethargic, heard, roughdealers and ill mannered must be warned and penalized but this all should be on merit and considering the policy of honesty is the best policy and not due to some personal liking, disliking prejudice and patrimonial. It is therefore suggested certain schemes and checks may be introduced in banks to increase efficiency through reward and punishment system. Promotion and Advertising Bank must let potential customers know that all attractions for banking exist. This is done by advertising on television and obtaining press coverage, in conjunction with direct mail, window displays, leaflet in branches and in appropriate other locations (such as hotels, shops, etc.) and including leaflets in statement of accounts sent to existing customers in the hope that they will tell potential customers about the services provided by our bank. More Focus on Salary Accounts Logic leads to promotional campaign through employers who are customers of the banks and their employees are paid in cash. Such business accounts should be encouraged to open the accounts of their employees with the banks. It might be worth offering free banking for a specific period to new accounts or simply publicizing the services available by means of posters at the employers premises. Internship Facilities The period of internship should be divided in to the number of department of the Muslim Commercial Bank Ltd. The internee should be given timetable mentioning the number of days he/she has to work at different places in the bank. On the first 4 days in each department internee should be given a lecture the officer of the department concerned about working of the department.

Some other Recommendations for MCB


MCB should try to in range the current ratio for getting short term financial strength. MCB should measure the liquidity risk through its designed framework time to time to reduce the liquidity risk position of the bank MCB should control its Administrative expenses it has been rose as compare to previous years

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The strength of the bank is enough strong, but there is need to increase to deposit to compete the market. In the light of above suggestion, MCB should increase its branch network to get maximum deposit and increase its sales. MCB should encourage the employee through offering them effective performance appraisal system MCB should hire a skilled person highly professional staff for bank efficiency

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Conclusion
As I have studied and analyzed MCB Bank Ltd I found out that this a good bank as its working, management is concerned. First of all the reason of this is that there is no directive style in the management of MCB and which shows that there is decentralization in the Bank and every branch manager can take decision according to the situation. MCB is providing their customers with wide range of services including online banking, virtual banking and some of their new products in the pipeline; include ATM network etc shows that MCB Bank is taking good care of their customers. MCB Bank made heavy investments, towards enhancing its capabilities in the area of automation and technology. MCB is well positioned to meet client needs, with improved competitive advantage. During my stay at Bank, MCB I have observed that some people are over burdened and some people used to sit idle for most of their working hours. There should be work load analysis for all employees and work load should be distributed respectively keeping in view the capacities and capabilities of employees. The bank should improve its online transaction system and intranet. As system failure is encountered often. New marketing strategies should be developed to attract customers. A research cell should continuously try to gather information about the present action of its competitors and their expected future actions. So in this way more effective strategies can be formulated. The performance reward linkages should be made strong as it said, A happy employee deliver more than he receive from organization. MCB Bank limited should become specific about its competitors, so that it can understand who its competitor is in the first degree and who is in the second degree. Then the first-degree competitors should be watched closely. MCB should continuously conduct its financial analysis and compare it with that of other banks. In this way consciousness about the banks financial matters will tend to improve. More training and development programs should be launched in order to clear the concepts of employees about new products and banking techniques. And from the financial records when I conduct comparative analysis with other banks I found that it is somewhat better than others and from the analysis of previous year I concluded that it is improving and in 2011. Profits are more than the previous year. So I can say that MCB Bank is performing very well.

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Bibliography
Websites: Introduction and Products of MCB. MCB Bank Limited. Retrieved from http://www.oppapers.com/ essays/Pakistans -Banking-Sector-Industry on 4/8/2012 at 11:30 am History of MCB. MCB Bank Limited. Retrieved from http://www.mcb.com.pk/mcb/about_mcb.asp on 5/8/2012 at 10:00 am Vision and Mission Statement of MCB. MCB Bank Limited. Retrieved from http://www.mcb.com.pk/mcb/mission-vision.asp on 5/8/2012 at 2:00pm Human Resource management system Wikipedia Retrieved from http://en.wikipedia.org/wiki/Human_resource_management_system on 7/8/2012 at
1:00am.

Financial Data and Reports of MCB. MCB Bank Limited. Retrieved from http://www.mcb.com.pk/irifn_data_rep.asp Other data retrieved from these websites Analysis/181995 http://en.wikipedia.org/ wiki/Economy_of_Pakistan

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References & Sources


Books: Marc Effron, Robert Gandossy, & Marshall Goldsmith (2003). Human Resource in the 21st Century. New York: John Wiley & Sons. (2011)Virtual University MGT 501 Human resources management Siddiqui A.H. (1983 P.nos. 16-22) Practice & Law of banking in Pakistan. Meenai S.A (1984) Money & Banking. Prof. Dr. Khawaja Amjad Saeed (Financial Institution in Pakistan) Koontz. (Management. 8" edition page:8)

Donnelley, Gibson, Ivanceivich (Fundamentals of Management)

Extra sources: MCB Annual Report 2011 Information of HR department Management Colleagues Branch Manager Operational Manager CSO Officer Different Hand Books MCB Broachers/ Manuals MCB Accounts Opening Form MCB Specimen Signature Card MCB Cheque book Requisition

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MCB Fund Transfer Application MCB Cheque Return Memo MCB Visa Debit Card-Application form MCB Debit Vouchers MCB Credit Vouchers MCB Deposit Slip MCB Cheque Stop Payment MCB ATM Transaction Dispute Form

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Glossary
A
ATM Advice Automatic Teller Machine. A banks written acknowledgement of a Transaction.

B
Bill of lading A document issued to an exporter by a common career transporting merchandise. It serves of a receipt, a contract, and a document of title. BTA Basic Tijarat Account

C
Commercial Banks An authorized institution which performs four functions. It accepts deposits, makes loan, arranges payment of bills and provide a number of customer services.

D
DD Dividend Demand Draft Part of companys profit paid to shareholders

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E
Equity Earning per share Total assets minus total liabilities The part of companys profit allocates to each outstanding share of common stock

L
Letter of Authority A written document to allow bank to deposit or withdrawn from an account

M
Mark up The charge you pay if you borrow money or you get if you invest it. Mortgage Mortgage is charge on immovable Property to secure the finance MT Mail Transfer

P
PO Pledge Pay Order Pledge is the bailment of goods for security. In pledge goods are in possession of bank. Profitability Ratio The ratio used to measure the ability of a company to generate profit.

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T
TT Telegraphic transfer

W
Working Capital Stock plus debtor minus short term creditors

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