Internship Report On MCB

INTERNSHIP REPORT
ON MCB BANK LIMITED

SUBMITTED BY
HAFIZA GHAZAL MUNIR

MBA (BANKING & FINANCE)
HAILEY
COLLE
GE OF
First of all I would like to thank ALMIGHTY

ALLAH who has helped me at every stage in completing
this project.
I am thankful to the management of MCB Bank
Rewaz Garden, Lahore for providing me the opportunity to
have an excellent learning experience during my internship.
A
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This Project is dedicated to our Parents, our Teachers and Our

Friends, whom endless Prayers, Motivations, Support,
Encouragement and Guidance in our life and work enable
us to reach up here and achieve our task on time and
efficiently.
D
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TABLE OF CONTENTS
BRIEF HISTORY OF BANKING IN PAKISTAN.........................................................................3
Hailey College of Banking & FinancePage 1
OVERVIEW OF MCB BANK........................................................................................................7

MCB BANK TODAY......................................................................................................................9
VISION & MISSION....................................................................................................................11
CORE VALUES............................................................................................................................12
STRATEGIC OBJECTIVES.........................................................................................................12
AWARDS.......................................................................................................................................13
CORPORATE INFORMATION...................................................................................................15
GROUP COMPANIES..................................................................................................................17
CREDIT RATING.........................................................................................................................18
DIVISION OF MCB BANK.........................................................................................................19
PRODUCTS & SERVICES...........................................................................................................20
CORPORATE BANKING.............................................................................................................46
TRANSACTION BANKING........................................................................................................47
PRIVILEGE BANKING...............................................................................................................47
MCB ISLAMIC BANKING..........................................................................................................48
INTERNSHIP REPORT................................................................................................................49
OVERVIEW OF BRANCH...........................................................................................................50
STAFF STRENGTH......................................................................................................................50
DEPARTMENTS...........................................................................................................................50
MY LEARNING EXPERIENCE:.................................................................................................60
ACCOUNT MAINTAINANCE DEPT.65
CLEARING DEPARTMENT........................................................................................................61
SWOT ANALYSIS........................................................................................................................64
RECOMMENDATIONS...............................................................................................................66
CONCLUSION..............................................................................................................................67
REFERENCES..............................................................................................................................68
BRIEF HISTORY OF BANKING IN PAKISTAN
History of Banking in Pakistan starts from the partition of Indo-Pakistan sub-continent in

August, 1947. At that time, the areas consisting Pakistan had 631 offices of 45 scheduled banks
out of which 487 were located in West Pakistan and 114 in East Pakistan which was also served
by 500 offices of small and non-scheduled banks. There were 19 branches of foreign banks in
Pakistan
but
they
had
very
limited
role
to
play.
Just after the partition, the Indian bankers started immigrating and shifting the head
offices of their banks and capital to India. It caused a great set back to the banking field in
Pakistan, and resulted in decline in the number of offices in schedule bank from 631 to 195 by
30th June, 1948. The West Pakistan the number fell from 487 to 81 in East Pakistan from 144 to
69 by 30th June, 1951. Among these Habib Bank Ltd., with 25 offices and Australia Bank Ltd.
with 19 offices were institutions run by Muslims who shifted their head offices to Pakistan.
The difficulties of establishing a central bank just after independence compelled Pakistan
to enter into an agreement with the Reserve Bank of India by which the bank was to perform the
function of a central bank. The Reserve Bank of India started following wrong policies against
the interest of Pakistan. The situation became so bad that after the consultation of two
governments the Reserve Bank of India was asked to finish the agreement from 30th June
instead of from 30th September, 1948. So the Government of Pakistan decided to establish the
State Bank of Pakistan as its central bank from 1st July, 1948. In the same year first Pakistani
notes in the denomination of Rs.5, 10, and 100 were issued and Indian currency was withdrawn
from circulation. Furthermore banking companies control act 1949 was promulgated which
empowered the State Bank of Pakistan to control the operation of other banks. To boost the
economic development the State Bank of Pakistan encourage the commercial banks and gave
them schemes to advance in the agricultural and industrial fields. In addition to this specialize
financial. Institutions were set up to meet the acute shortage of funds in these fields.
The State Bank of Pakistan's policy encouraged expansion in established banks,
establishment of new banks, and weeding out of unsound banks just to faster the growth of
banking system in the country. This policy not only established the banking system by 1965 but
increased its functional efficiency, scope of operations and soundness to a great extent and the
following banking structure emerged:
1. STATE BANK OF PAKISTAN (CENTRAL BANK)
2. COMMERCIAL BANKS.
3. SAVING BANKS
4. CO-OPERAT1VE BANKS
5. EXCHANGE LANES
6. SPECIALIZED FINANCIAL INSTITUTIONS
There are two types of the COMMERCIAL BANKS
1. SCHEDULED
2. NON-SCHEDULED BANKS
According to the State Bank of Pakistan Act, 1956 a bank having a paid up capital and a
reserve of rupees five lacs and fulfilling certain other requirements can be scheduled with the
State Bank of Pakistan. With the opening of the State Bank of Pakistan and the keen interest
which it took in the establishment of the sound banking system in Pakistan despite the separation
of the East Pakistan, commercial banking made a tremendous progress which can be judged from
the following figures. Offices of the following 14 banks (scheduled) increased from 195 to 1948
to 3600 with 71 branches outside Pakistan in 1972, deposits from 88 Crores in 1948 to 1900
crores in 1972 and advances from 20 crores in 1948 to 1250 crores in 1972.
1. National Bank of Pakistan

2. Habib Bank Ltd.
3. Habib Bank (Overseas) Ltd.
4. United Bank Ltd.
5. Muslim Commercial Bank Ltd.
6. Commerce Bank Ltd.
7. Australasia Bank Ltd.
8. Standard Bank Ltd.
9. Bank of Bahawalpur Ltd.
10. Premier Bank Ltd.
11. Pak Bank Ltd.
12. Sarhad Bank Ltd.
13. Lahore Commercial Bank Ltd.
14. Punjab Provincial Co-operative Bank Ltd.
On January 1, 1974 the Government of Pakistan nationalize all the Pakistani scheduled
banks including State Bank of Pakistan, industrial Bank of Pakistan, Agricultural Development
Bank of Pakistan through the bunk- nationalization act, 1974 to achieve the desired objectives.
The weaker commercial banks were merged with stronger ones and in all five major banking
companies were formed.
1. NATIONAL BANK OF PAKISTAN

2. HABIB BANK LIMITED
3. UNITED BANK LIMITED
4. MUSLIM COMMERCIAL BANK LIMITED
5. ALLIED BANK OF PAKISTAN
The Federal Government also set up a Pakistan Banking Council on March 21, 1974 to
look after the organizational and operational matters including evaluation and progress of the
nationalized commercial banks. The State Bank was to provide the overall policy guidelines to
commercial banks.
OVERVIEW
OF mcb
bank
HISTORY:
The history of
into four
Nationalization Phase
Privatization Phase
Present position of MCB Bank
MCB can be divided

main Phases:
Development Phase
DEVLOPMENT PHASE:
MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the
Indian Companies Act, VII of 1913 as a limited company. The bank was established with a view
to provide banking facilities to the business community of the South Asia. After the partition of
the Indo-Pak subcontinent, the bank moved to Dhaka (then the capital of former East Pakistan)
from where it commenced business in August 1948. In 1956, the bank transferred its registered
office to Karachi, Where the head office is presently located. Thus, the bank inherits a 64 years
legacy of trust of its customers and the citizens of Pakistan. MCB Bank is not an overnight
success story. It started with a share capital of Rs 30 million which is divided into 3 million
ordinary shares of RS 10 each.
NATIONALIZATION PHASE:
The 1960s decade is stated as the golden era in Pakistans economic and financial
development. The banking sector also registered noticeable growth during that period and lent a
strong helping hand to the government to achieve rapid economic growth of the country. But in
early 1970s this scenario changed altogether. The separation of East Pakistan (now Bangladesh)
and induction of the government led by Zulfiqar Ali Bhutto were the most significant events of
early 70s having far reaching effects on the banking system.
In the wake of rapidly changing conditions of the country, the government decided to
nationalize all the commercial banks so that the nation as a whole can benefit from a better use of
resources. Consequently, the Muslim Commercial Bank was nationalized under the Banks
(Nationalization) Act, 1974 promulgated on January 1, 1974. In the banking sector, the then
government decided to retain only five major banks by merging all the smaller banks with the
large ones. As a result of this policy, the Premier Bank was merged into Muslim Commercial
Bank in 1974.
PRIVITIZATION PHASE
This was the first bank to be privatized in 1991 and the bank was purchased by a
consortium of Pakistani corporate groups led by Nishat Group. The banks after nationalization
came under political and bureaucratic control and deviated from normal banking practices. Some
of their senior executives were tempted to nurture a culture of obliging big businessmen, feudal
and political influential. They sacrificed their personal integrity and interest of banking sector for
gaining promotion and accumulating personal wealth. That is how banking sector started losing
its upright and professional institutional image from mid-80s and its downward slide started
which touched new low during 1990s. The then PML government also became conscious of the
falling standard of the banking sector and decided to privatize all the commercial banks.
In the wake of above amendments, 26% shares valuing Rs. 149.8 million of the Muslim
Commercial Bank, held by the State Bank of Pakistan were sold and the Banks management
was transferred to the purchasers of these 26% shares. Mian Mohammad Mansha is the
Chairman of the MCB and has played instrumental role in its success.
Mcb bank today
MCB Bank Limited ('the Bank') is a banking company incorporated in Pakistan and is
engaged in commercial banking and related services. The Bank's ordinary shares are listed on
all the stock exchanges in Pakistan whereas its Global Depositary Receipts (GDRs) are
traded on the International Order Book (IOB) system of the London Stock Exchange. The
Bank's Registered Office and Principal Office are situated at MCB -15 Main Gulberg,
Lahore. The Bank operates 1,208 branches including 27 Islamic banking branches
(December 31, 2013: 1,208 branches including 27 Islamic banking branches) within Pakistan
and 9 (December 31, 2013: 9) branches outside the country (including the Karachi Export
Processing Zone Branch).
For effective handling of branches it has been categorized into three segments. These
categories are:
1. CORPORATE BANKING:
These are the branches, which have an exposure of over Rs. 100 million. Corporate
clientele includes public sector companies as well as large local and multinational concerns.
MCB is also catering to the growing middle class by providing new asset and liability
products. Main products of MCB regarding Corporate Banking are:
Cash Management
Working Capital Loans
Term Loans
Trade Finance Services
Investment Banking
2. COMMERCIAL BANKING:
These are the branches, which have a credit exposure of 20 million to Rs 100 million
excluding staff loans. Usually branches in large markets and commercial areas come under
this category. Products offered under commercial banking are:
Deposit Accounts
Loan Products
Master Card
Rupee Travelers Cheque (RTC)
Remit Express
3. CONSUMER BANKING:
These are the branches, which have an exposure up to Rs. 20 million and these include all the
branches, which are neither corporate nor commercial.
VISION & MISSION
V
I
S
I
O
N
Vision Statement:
To be the leading financial services provider, partnering with our
customers for a more prosperous and secure future
Mission Statement:
M
I
S
S
I
O
N
We are a team of committed professionals, providing

innovative and efficient financial solutions to create
and
nurture
long-term
relationships
with
our
customers. In doing so, we ensure that our

shareholders can invest with confidence in us
Core Values
C
O
R
E
V
A
L
U
E
S
Integrity
Innovation
Excellence
Customer Centricity
Respect
Strategic objectives
O
B
J
E
C
T
I
V
E
Delivering remarkable returns to stakeholders, sustainable performance,

exceeding market and shareholder expectations.
Providing value added services through operational expansion, geography
and upgraded systems.
Building a corporate culture of equality, trust and team spirit as we
remain dedicated to be a socially responsible organization.
AWARDS
Year 2013
The Asset Triple A
The Asset Triple A
ICAP and ICMAP
LK Domain Registry Sri Lanka
Lanka Clear Pvt. Limited
Best Domestic Bank - Pakistan

Best Islamic Deal
1st - BCR Award 2012 - Banking Sector
Best Website Award
T+1 Cheque Clearing Award
Year 2012
The Asset Triple A
Euromoney
NFEH
Coverage
ICAP and ICMAP
Sector
World Finance
Pakistan Centre for Philanthropy
Best Domestic Bank - Pakistan

Best Bank in Pakistan
CSR Business Excellence Award Best Media
2nd Best Corporate Report Award 2011- Banking
Best Commercial Bank - Pakistan
PCP Corporate Philanthropy Award
Year 2011
CFA Association Pakistan
CFA Association Pakistan
Euromoney
ICAP / ICMAP
SAFA
Most Stable Bank of the Year

Best Bank of the Year
Joint 2nd Runner-up for BCR 2010
Year 2010
The Asian Banker
The Asian Banker
MMT
ICAP / ICMAP
SAFA
Strongest Bank in Pakistan

Leadership Achievement Award
Best Bank Led MMT Service
Certificate of Merit Award for BCR 2009
Year 2009
Asiamoney
The Asset
Best Domestic Bank in Pakistan

Year 2008
Euromoney
Euromoney
Asiamoney
Best Bank in Asia

Year 2006
Euromoney
Year 2005
Euromoney
Asia Money

Best Domestic Commercial Bank in Pakistan
Year 2004
Euromoney
Asia Money

Best Domestic Commercial Bank in Pakistan
Year 2003
Euromoney
Year 2001
Euromoney
Year 2000
Euromoney
Corporate information
Board of directors
(As of February 24, 2014)
1
Mian Mohammad Mansha
Chairman
S. M. Muneer
Vice Chairman
Tariq Rafi
Director
Shahzad Saleem
Director
Sarmad Amin
Director
Mian Raza Mansha
Director
Aftab Ahmad Khan
Director
Mian Umer Mansha
Director
Dato' Seri Ismail Shahudin
Director
10
Ahmad Alman Aslam
Director
11
Muhammad Ali Zeb
Director
12
Mohd Suhail Amar Suresh Bin Abdullah
Director
13
Imran Maqbool
President & CEO
3.4.2 Management committee

1
2
Imran Maqbool
Ali Munir
3
4
5
6
7
8
Agha Saeed Khan

Salman Zafar Siddiqi
Ali Mubashir Kazmi
Muhtashim Ashai
Mohammad Ramzan
Usman Hassan
9
10
Raheel Ijaz
Laqa Sarwar
11
Syed Rashid Rahman
12
Kamran Rasool
Group Head - CSR & Security
13
Mohammed Nauman Chughtai
Group Head - Risk Management
14
Syed Mudassar Hussain Naqvi
Group Head - Legal Affairs
15
Shahid Malik
Group Head - CCM & Special Projects
16
Imtiaz Mahmood
Head - Information Technology
17
Zergham Khan Durrani
Head - Retail Banking North
18
Nadeem Afzal
Head - Retail Banking South
Chief Financial Officer

Group Head Audit & RAR
President & CEO

Group Head - Strategic Planning &
Investment
Group Head - Operations
Chief Financial Officer
Group Head - International Investments
Group Head - Wholesale Banking
Group Head - Treasury & FX
Group Head - Human
Resource Management
Group Head - Compliance & Controls
Group Head - Special Assets
Management
Group Head - Islamic Banking
Salman Zafar Siddiqi

Kamran Zaffar Muggo
Group Companies
Associated Companies
1. Adamjee Insurance Company Ltd.
2. First Women Bank Ltd.
3. Euronet Pakistan (Pvt.) Ltd.
Subsidiary Companies
1. MCB Financial Services Ltd.
2. MNET Services (Pvt.) Ltd.
3. MCB Trade Services Ltd. - Hong Kong
4. Arif Habib Investments Ltd.
5. "MCB Leasing" Closed Joint Stock Company - Azerbaijan
Credit rating
LONG TERM
SHORT TERM
AAA
A1+
Division of mcb bank
RISK MANAGEMENT
TREASURY
WHOLESALE BANKING
RETAIL BANKING
HUMAN RESOURCE MANEGEMENT
OPERATIONS
STRATEGIC PLANNING & INVESTMENT
INFORMATION TECHNOLOGY
COMPLIENCE & CONTROL
ISLAMIC BANKING
LEGAL AFFAIRS
SPECIAL ASSET MANAGEMENT
Products & services

4.1 mcb Retail banking
In retail banking MCB Bank offers a variety of products & services. These are further divided
into two categories which are:
1. Personal
2. Business
Personal
Products
1.
2.
3.
4.
5.
6.
7.
8.
Deposit Accounts
Home remittance
Consumer Loans
Cards
MCB Lite
Banacassurance
Investment Services
Rupee Traveler Cheque
Services
1. Self Service Channel
2. MCB Loyalty & discount
3. Lockers
1. Deposit accounts:
MCB offers a wide range of local and foreign currency deposit products.
1. CURRENT DEPOSIT
2. SAVING DEPOSIT
3. TERM DEPOSIT
1. CURRENT DEPOSIT
MCB offers a broad range of Current Deposit products, in PKR & foreign currencies,
having different features and benefits. Following are the current deposits products that MCB
offers.
a)
b)
c)
d)
e)
Current Account
Business Account
Basic Banking Account
Current life Account
Fun Club-Banking for kids
f) Foreign Currency Current Account
g) Call Deposit Receipt
a) Current Account
Benefits
A Non-profit bearing account with absolutely

no transactional restrictions.
Account Activation Deposit
PKR 1,000
Min Balance Requirement
PKR 10,000
Permissible Currency
PKR
Transaction Limit
Unlimited withdrawals and deposits
ATM/Debit Card
Yes
Virtual Banking, MCB Mobile and Call Available
Center
Zakat
No Zakat is deducted on Current Accounts as
per the Zakat & Usher Ordinance, 1980
Taxes as per applicable Government Laws
Advance Tax 0.3% on all Cash withdrawals
which are >25K in a single day (Under section
231AA of Income Tax Ordinance 2001)
Eligibility
Individuals,
Firms
(Sole
Proprietor,
Partnership), Companies (Public and Private
Limited), Trust/ Clubs/ Societies and
Associations
b) Business Account:
Benefit

Transaction Limit
ATM/Debit Card
Virtual Banking, MCB Mobile and Call Center
Zakat:
Special Features
Eligibility
A Non-profit bearing account for Businessmen

who can maintain high deposits and get waivers
on POs, DDs, Cancelations, recurring cheque
books, multiple bank statements and more
PKR 1000
PKR 50,000
PKR
Unlimited withdrawals and deposits.
Yes (free Joining)
Available
No Zakat is deducted on Current Accounts as per
the Zakat & Usher Ordinance, 1980
Free PO, DD, Cancellations, recurring cheque
books, multiple bank statements as per the SOBC
Individuals, Firms (Sole Proprietor, Partnership),
Companies (Public and Private Limited), Trust/
Clubs/ Societies and Associations
c) Basic Banking Account:

Benefit

Transaction Limit
Charges
ATM/Debit Card
Zakat
Eligibility
Limitations
A Non-profit bearing account for small

depositors who cannot maintain a minimum
balance in their accounts and who wish to carry
out the basic banking needs.
PKR 1000
PKR 0
PKR
2 Free over the counter deposits (per month) & 2
Free over the counter withdrawals (per month)
as per the SOBC
Yes
Available
Individuals only
In case where balance in BBA remains ZERO
for a continuous 06 month period, the account
will be closed.
d) Current Life Account

Benefit

Transaction Limit
Charges
ATM/Debit Card
Zakat
Life Insurance Cover

Condition:
Eligibility
A Non-profit bearing account with the benefit of

Free Life Insurance Cover. More the balance
maintained, higher the cover
PKR 1000
PKR 25,000
PKR
as per the SOBC
Yes
Available
Double the amount of last three months average
balance
Death of the customer is Natural or Accidental
At the time of death the customer's age is
between 18-60 years.
Given Balance does not fall below PKR 25000
on any day in the last 3 months.
The maximum cover will be 1 Million PKR
In case of non completion of 3 months, the
number of days completed will be considered
and the average of days completed will be taken
Individuals only
e) Fun club-Banking for Kids

MCB Fun Club Banking for Kids is a product designed for the
minors. This product offers two types of accounts; Savings &
Current. The main features of this product include: customized
and branded cheque book and debit card that are issued in the name of the minor & guardian
both. The debit card is loaded with various deals and discount offered at several outlets across
Pakistan. In addition to this, Fun Club also offers two augmented features; WWF-Tag a Plant,
where the minor gets to tag a tree in his name and Adamjee life Education Plan, that acts as an
insurance cover for the minors education.
f) Foreign Currency Current Account

Benefit

Transaction Limit
Charges
ATM/Debit Card
Virtual Banking, MCB Mobile and Call
Center
Zakat:
Taxes as per applicable Government

Laws
Eligibility
A Non-profit bearing Foreign Currency

account with absolutely no
transactional restrictions
USD 500
USD 500
USD / GBP / EUR/ JPY
as per the SOBC
No
Not Available
No Zakat is deducted on Current
Accounts as per the Zakat & Usher
Ordinance, 1980
Advance Tax 0.3% on all Cash
withdrawals which are >25K in a single
day (Under section 231AA of Income
Tax Ordinance 2001)
Individuals, Firms (Sole Proprietor,
Partnership), Companies (Private
Limited), Trust/ Clubs/ Societies and
Associations
g) Call Deposit Receipt

Benefit
Profit
Charges
Zakat
Eligibility
Security deposit Issued in favor of Government,

Semi-Government, Institutions, Corporations,
and Semi-Autonomous Bodies etc. It is also
issued in favor of Individuals
Call Deposit does not earn any income or profit.
PKR
as per the SOBC
Not applicable
Companies (Private Limited), Trust/ Clubs/
Societies and Associations
2. saving deposit
MCB Bank offers a wide array of local and foreign currency savings products that suit
short term growth and transactional needs. These savings accounts offer attractive profit rates to
diverse customer strata; have a tiered profit payment and different profit payment frequencies.
The customers have an attractive Savings Accounts menu to choose from, like Savings 365 Gold
Account for high-end depositors desiring higher returns, along with other attractive rate options
for high, medium and low end savers and the generic Profit & Loss.
a)
b)
c)
d)
e)
f)
g)
h)
i)
PLS) Savings Account

Smart Savings Account
365 Savings Gold Account
Khushali Bachat Account
Savings Xtra Account
Savings Maximizer Account
Salary Club Gold Account
365 Savings Account
Smart Saving Foreign Currency Account
j)
New Foreign Currency Savings Account
a) PLS) Saving Account

Benefit
Profit
Profit Calculation
Profit Payout
Transaction Limit
ATM/Debit Card
Zakat
Withholding Tax
Eligibility
A plain Savings account for everyone with no

transactional restrictions
PKR 1000
PKR 10,000
expected rate of return
Minimum Monthly Balance (calculation based
on 365 days a year)
Semi - Annually
PKR
Yes
Available
Zakat is deducted as per the Zakat & Usher
Ordinance, 1980
Withholding Tax is deducted on Profit as per the
Governments policy.
b) Smart Saving Account

Benefit

Profit
Profit Calculation
Profit Payout
Transaction Limit
Charges
ATM/Debit Card
Zakat
Withholding Tax
Eligibility
A Savings Account offering high profit rates to

depositors maintaining between 200k - 300k.
This is a non checking account (No cheque book)
but Smart Card is available
PKR 1000
PKR 10,000
Profit Upto 7% (as per the expected rate of
return)
Minimum Monthly Balance (calculation based
on 365 days a year)
Quarterly
PKR
only via ATM (no Cheque Book)
as per the SOBC
Yes
Available
Ordinance, 1980
Governments policy.
Individuals only
c) 365 Saving Gold Account

Benefit

Profit
Profit Calculation
Profit Payout
Transaction Limit
Charges
ATM/Debit Card
Zakat
A Daily Product for high net worth customers

with monthly returns and higher profit on higher
deposits as well
PKR 1000
PKR 500,000
Profit Upto 8.25% (as per the expected rate of
return)
Daily Ending Balance (calculation based on 365
days a year)
Monthly
PKR
as per the SOBC
Yes
Available
Withholding Tax
Eligibility
Ordinance, 1980
Governments policy.
d) Khushhali Bachat Account

Benefit

Profit
Profit Calculation
Profit Payout
Transaction Limit
Charges
ATM/Debit Card
Zakat
Withholding Tax
Eligibility
A Daily Product for small Investors with

semiannual returns and no restriction on
transactions.
PKR 1000
PKR 20,000
5% (as per the expected rate of return)
days a year)
Semi - Annually
PKR
as per the SOBC
Yes
Available
Ordinance, 1980
Governments policy.
Individuals only
e) Saving Xtra Account

Benefit

Profit
Profit Calculation
Profit Payout
Transaction Limit
Charges
ATM/Debit Card
Zakat
Withholding Tax
Eligibility
A product offering high rate of return: higher the

deposit, higher the returns with 3 free cash
withdrawals over the counter per month.
PKR 1,000
PKR 100,000
Profit Upto 8.5% (as per the expected rate of
return)
Minimum Monthly Balance (calculation based on
365 days a year)
Monthly
PKR
3 over the counter withdrawals per month
as per the SOBC
Yes. Gold (free Joining)
Available
Ordinance, 1980
Governments policy.
f) Saving Maximizer Account

Benefit
Profit
Profit Calculation
Profit Payout
Charges
Cheque book
ATM/Debit Card
Zakat
Withholding Tax
Higher returns, Greater access

PKR 1,000
PKR 1000,000
Announced profit rate according to the defined
slabs I-e less than IM, 1M to 3M, above 3M
365 days a year)
Monthly
PKR
as per the SOBC
10 leaf account payee only ONLY
Yes with higher withdrawal limit of 50,000
Available
Ordinance, 1980
Governments policy.
Eligibility
g) Salary Club Gold Account

Benefit

Profit
Profit Calculation
Profit Payout
Transaction Limit
Charges
Facilities
Zakat
Withholding Tax
Eligibility
A Payroll Account offering no minimum

balance requirement and a host of free
services such as POs, DDs and more
PKR 10
PKR 0
5% p.a. (as per expected rate of
return)
Minimum Monthly Balance (calculation
based on 365 days a year)
Quarterly
PKR
As per SOBC
Discounts and Waivers on Cheque book
(new and recurring), Demand Drafts
and Pay Orders, Smart Card, Online
Transactions (within and intercity). Free
SMS alert on Salary Credit.
Zakat is deducted as per the Zakat &
Usher Ordinance, 1980
Withholding Tax is deducted on Profit
as per the Governments policy.
Individual employees who maintain
their salary account with MCB and their
respective employers have signed up
for the payroll account for their
organization with minimum 50 salary
accounts along with average salary of
PKR 15K per employee
Before signing on any new company,
branches are required to consult and
take approval from Salary Club Product
Team.
Mandatory Requirements
Company to sign Legal Agreement

(available from Salary Club Product
Team)
Customer's address will always be the
customer's office address (companys
office address)
h) 365 Saving Account

Benefit

Profit
Profit Calculation
Profit Payout
Transaction Limit
Charges
ATM/Debit Card
Zakat
Withholding Tax
Eligibility
A Daily Product for Medium net worth

customers with monthly returns and higher
profit.
PKR 1000
PKR 300,000
5% (as per the expected rate of return)
days a year)
Semi-Annually
PKR
as per the SOBC
Yes
Available
Ordinance, 1980
Governments policy.
i) Smart Saving foreign Account

Benefit
Profit
Profit Calculation
Profit Payout
Transaction Limit
Charges
ATM/Debit Card
A Foreign Currency Account with ease of

banking in Pakistan
USD 500
USD 500
expected rate of return (Min. Bal. required USD
10,000/- to qualify for Profit)
360 days a year)
Semi - Annually
USD
Unlimited withdrawals and deposits. NO Smart
Card
as per the SOBC
No
Not Available
Zakat
Withholding Tax
Eligibility
Not Applicable
Governments policy.
j) New Foreign Currency Saving Account

Benefit
Profit
Profit Calculation
Profit Payout
Transaction Limit
Charges
ATM/Debit Card
Special Features
Zakat
Withholding Tax
Eligibility
A Foreign Currency Account with ease of

banking in Pakistan
FCY 500
FCY 500 To avoid min. balance charges
expected rate of return (Min. Bal. required FCY
10,000/- to qualify for Profit)
Minimum Monthly Balance
For USD: calculation based on 360 days a year
For GBP/ EUR/ JPY: calculation based on 365
days a year
Semi - Annually
USD / GBP / EUR/ JPY
as per the SOBC
No
Not Available
Waiver and discounts on Lockers, Bank
Statements and Loans
Not Applicable
Governments policy.
3. Term deposit
MCB Term Deposits offers 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 pay-out options and the added
facility of being able to avail credit facility against their deposits.
a) Flexi Deposit Account
b) Mahana Profit Account
c) Special Foreign Currency Term Deposit
a) Flexi Deposit Account

Min Deposit Requirement
Profit
Profit Calculation
Tenors Available
Profit Payment Options
Charges
Zakat
Withholding Tax
Eligibility
PKR 500,000
Based on 365 days a year
PKR
1 month, 2 months, 3 months, 6 months, 9
months, 1 year, 2 years, 3 years and 5 years
Quarterly, Semi Annually, Annually and
Maturity.
as per the SOBC
Ordinance, 1980
Governments policy.
(Existing Account Holders) Individuals, Firms
and Companies. It is a mandatory requirement
for booking a Term Deposit to have a checking
account (Current/Savings) in the Bank.
b) Mahana Profit Account

Profit
Profit Calculation
Tenors Available
Profit Payment
Charges
Zakat
PKR 500,000
PKR
2 months, 3 months, 6 months, 9 months, 1 year,
2 years, 3 years and 5 years
Monthly
as per the SOBC
Withholding Tax
Eligibility
Ordinance, 1980
Governments policy.
c) Special Foreign Currency Term Deposit

Tenor Options
Profit
Profit Calculation
Profit Pay Out Criteria
Profit Payment Options
Charges
Privileges
Zakat
Withholding Tax
Eligibility
3 Months, 6 Months & 1 year Fixed Deposits

USD 10,000
Minimum retention period is 01 month. Cash
payment of Interest amount is not allowed
On Maturity for 3 & 6 months and Semi
Annually for 1year booking
USD
as per the SOBC
Free of charge Locker and bank statement
50% Discount on Processing charges of Personal
Loan and Car Loan
Not Applicable
Governments policy.
HOME REMITTANCE
MCB Home Remittances offers unmatched services for overseas Pakistanis to send
money home FAST and FREE at no cost across Pakistan through MCBs large network of over
1200 branches. Money can be sent FREE & INSTANT through our international send agents like
MoneyGram, Xpress Money and many others.
a) Burqraftaar Cash
MCB Burqraftaar Cash enables the NonResident-Pakistanis, to send money to their
loved ones in Pakistan quickly, easily and
conveniently.
Fast, dependable and hassle-free funds
transfer
Instant cash payment of up to Rs. 500,000/- over the counter can be made to the
beneficiary at any MCB branch
Convenience of over 1200 online branches nationwide
No bank account required
SMS alert for beneficiary (subject to provision of valid mobile number
b) Burqraftaar Transfer
MCB Home Remittances introduces a fast and easy way to send and receive money
absolutely free.
Instant credit to MCB Account holders & Non MCB account holders*.
Fast, prompt and hassle free funds transfer, Straight to account!
Free of charge.
SMS alert for beneficiary (subject to provision of valid mobile number)
For Non MCB Account holders, funds are transferred online or via bank draft to any
other bank
c) Motherland Account
The Motherland account allows Non-Resident Pakistani's to open accounts in their home
country while residing abroad. It is designed to allow transferring of funds to family & loved
ones back home with the convenience of your own personal account.
Overseas Pakistanis can open PKR accounts whilst abroad.

Free first cheque book + VISA debit card.
Ten Free PO/DD and Online Transfers per annum.
Account access via Internet Banking, Mobile Banking and Call Centre
Consumer loans
MCB offers following consumer loans:
a)
b)
c)
d)
e)
Car4u
Student Personal Loans
Personal Loan
Home Loan
Cash 4 Cash
a) Car4u
MCB Car4U not only gets a car of your own choice
but is also affordable with competitive mark-up, flexible
conditions, easy processing and above all, no hidden
costs.
b) Student Personal Loans

This product has been developed to offer financial assistance to students enrolled in
Higher Education Programs. Currently, MCB has formed a partnership with Lahore
University of Management Sciences (LUMS) and is offering Student Personal Loans to all
MBA and Executive MBA students of the University.
c) Personal Loan
MCB Personal Loans is a Fast, Affordable and Easy
option
to
meet your immediate financing needs.
MCB Personal loan is FLEXIBLE because the repayment

tenure can be anywhere between 1-5 years
MCB Personal loan is AFFORDABLE because it have attractive & competitive interest
rates
One can avail a loan of up to PKR 2 million with MCB Personal loan
No securities or collateral required
Quick Documentation
d) Home Loan
MCB Home Loan opens doors to numerous
sensible financing options to help in purchase, build
or
renovate new / existing home.
f) Cash4Cash
Financing secured against cash/near cash collateral allowed to individuals for meeting their
personal, family, and household needs.
Financing From PKR 0.050M PKR 20.000M
Cards
1. Credit Card
2. Debit & Prepaid Card
1. Credit Card
a) Classic Gold Credit Card
MCB Classic/Gold Credit Card is not just another card. It not only provides the
conventional credit card services in a manner that is superior
in comparison, but goes an extra mile. Introducing unique,
innovative and state of the art services, MCB Visa is the
most secure, affordable and rewarding credit card turning
shopping
into
much
more
exciting
experience.
MCB card is accepted at all Automated Teller Machine (ATM)s across Pakistan as well as
several
million
locations
worldwide.
b) Platinum Credit Card

MCB Visa Platinum Credit Card is the most reliable, competitive and gratifying Credit
Card offering a tempting mix of luxurious shopping, dining and travelling opportunities, which
will
undoubtedly
be
treat
for
you
and
your
family.
It is accepted at nearly 29 million locations in more than 150 countries around the globe
and over 30,000 establishments in Pakistan.
2. Debit & Prepaid Card

a) MCB Visa Prepaid Card
MCB Visa Prepaid card can be used to withdraw cash, shop and make online payments
locally and internationally.
Instant issuance.
24/7 cash accessibility through Automated Teller Machine (ATM) (Automated Teller
Machine).
Accepted at several million outlets.
Online shopping with Visa acceptance
b) MCB Visa Debit Card

The MCB Visa Debit card offers
innovative promotional schemes designed to
reward our customers every time they use the
card to pay for shopping, dining, fuel, travel etc.
Features such as increased withdrawal limits,
SMS alerts, door step delivery, instant
Automated Teller Machine (ATM) PIN
generation via call center, e-statements and
variable spending limits add to the convenience
it offers. Customers receive guaranteed PKR 250 Cash Back* when they use the card to make a
payment for the 1st time
Limits & Fee Structures

Daily Transaction Limits:
Automated Teller Machine (ATM)
Withdrawal
Shopping
MCB Mobile
Promotional Schemes:
Cash Back on 1st Retail Purchase
MCB Mobile
Annual/Issuance fee (2)
Replacement Charges (2)
Gold
Plus
Gold
Silver
50,000
25,000
10,000
150,000
100,000
100,000
100,000
25,000
100,000
PKR 250
Free
1,000
1,000
PKR 250
300
750
750
No
300
500
500
Total Cost of 1st Year (3)
750
c) MCB Visa Debit Platinum Card
500
500
MCB Lite
The worlds 1st
socially
connected
mobile wallet
that lets transfer money from bank account
over
to
mobile wallet. Thats not all it is also enabled by a visa powered card that helps to withdraw
money from an ATM or use it on a POS machine locally or Internationally, more so you may
invite family and friends onto the MCB Lite grid and conveniently transfer money from one
wallet to another, creating a financial connect in your inner circles while having full control over
your funds.
MCB Bancassurance
MCB Bancassurance has a financial plan that fits all
necessary
needs by fulfilling the dreams and keeping Har Pal

Combining the best of banking and financial solutions,
Mehfooz.
MCB
Bancassurance provides a one-stop shop solution by

guaranteeing convenience and security with a wide range of products available for all financial
needs.
MCB Investment Services

MCB offers a diversified range of
investment products, from the basic and classic
options to the more evolved and structure ones.
With the
ability to provide a range of products to suit the
needs,
MCB gives an opportunity to meet both short and long term investment needs.
1. Cash Fund
2. Income Fund
3. Islamic Fund
4. Asset Allocation Fund
5. Equity Funds
Rupee Traveler Cheque

MCB Bank has been at the forefront of providing its
customers with new and innovative products and financial
instruments that are safe, secure and profitable.
MCB Rupee Traveler's Cheques were first introduced
in 1993 as safe cash for traveling and travel related purposes.
The product has been extremely popular and is preferred over
cash by customers while travelling and in all walks of life.
Services
1. Self Service Channels
a) MCB INTERNET BANKING
MCB
Internet
Banking
Service
is
convenient way to access account(s) 24/7. It is

secure, free of cost and lets you do your banking
whenever and wherever it suits you. This service
allows you to transfer funds, pay utility/mobile bills,
set up standing order instruction, download account statement and much more.
b) MCB MOBILE
At the forefront of technological excellence, MCB
proudly introduces MCB MOBILE BANKING.
MCB Mobile is a quick easy and secure way to
recharge mobile phones, transfer money, pay bills
and do much more
c) ATM Services
MCB has one of the nations largest ATM
networks with 750+ ATMs covering 182 cities
across
the country and continues to grow at fast pace.
MCB
ATMs give 24-hour access to cash withdrawal,
mini-
statement, utility bill payments, mobile top-
ups,
funds transfer services and much more as an added convenience.
3.MCB loyalty & Discount

MCB VISA Cards (Debit, Credit, Prepaid, and Lite) open up an array of incredible
discount opportunities for the Customers. Whether its shopping, dining or lodging that you want
to indulge in simply use your MCB Cards and avail remarkable offers and privileges! MCB
offers discounts on their entire debit, credit and prepaid portfolio.
4.Lockers
Ensuring security to valuables, MCB offers deposit lockers
that can be operated in privacy and comfort of your own
MCB branch.
Available at selected branches in cities / towns all

over the country.
Lockers available in Small, Medium and Large sizes
Fixed sum assured as per size of locker
Locker can be operated in single or joint capacity
Mcb Agri products

MCB is committed to the farming community to support their national objectives of selfsufficiency and food security to the people of Pakistan. Dedicated and specialized staff,
supervised by the Agri Credit Division, is posted in lending branches to cater for strong business
relationships and facilitation. The banks extensive branch network in all the provinces and
diversified product range extends reach of agri credit facilities to encompass both crop and noncrop sectors.
Mcb Trade products

Trade Products provides a wide range of standard as well as tailor-made products and
solutions to trade customers from all walks of life. Despite having inventory of standard market
products in refined shape, specific new-to-market products include: Quick-LC, which is an
internal design of desktop application allowing customers to type-in and print out LC application
form. The XFlex solution facilitates external export business for customers in cases where
transportation of documents is not available at the counters of MCBs discounting/financing
branch on the date of extending financing. MCB-TRIMS facilitates the financing of inland
trade through the involvement of MCB at both ends thereby allowing an exporter to get
receivables discounted, i.e. the exporter receives payment in a given time (in 48 hours) after
performing obligations.
Econ-LC product program allows drafts/bills of exchange to be waived as a
requirement under LCs available by negotiation; as a consequence, there is reduction in overall
transaction cost. Avalization (Export) has been designed to facilitate the financing of export by
allowing an Exporter (Seller) to discount its receivables under credit granted to a counter party,
i.e. Importer (Buyer), without taking payment risk on the Importer (Buyer) under a contract (non
LC transactions). Under this China LC Confirmation programme branches of MCBs partner
bank located in Hong Kong and China add Confirmation to MCB LCs on Free of Cost basis
thus increasing acceptability of MCBs Import LCs and facilitate import customers.
MCb lending products

MCB offers an array of lending products catering to your business needs in affordable &
convenient ways, under international & local regulatory framework. We provide funded & nonfunded finance facilities to take care of short-term & long-term business needs of all segments
including Small and Medium Enterprises (SMEs), middle-markets & agriculture sector.
Funded Facilities
Working Capital Financing
Export Re-Financing (under State Bank of Pakistan Scheme)
Agriculture Financing
Term Loans
Non-Funded Facilities
Letters of Credit
Standby Letter of Credit
Guarantees
Corporate banking
MCBs specialized corporate finance teams offer credit solutions tailored to meet
working capital and term loan requirements for corporates. MCB is committed to understand
financing needs of customers and to deliver cost effective and practical solutions to the banking
needs in the shortest time possible.
MCB provide a wide array of business financing solutions including but not limited to the
following:
Working Capital Finance

Based on customer requirements, MCB offer tailored working capital facilities in
addition to traditional financing solutions for pre/post shipment export, import and receivables
financing. Their customized trade finance products are structured given your specific
requirements which may be used to improve liquidity, cost efficiency, transfer risk or to meet
other
requirements
of
either
party
depending
on
risk
evaluation.
Term Loans
MCB offers medium & long term loan facilities to finance capital expenditure related to
the core business. These include but are not limited to term loans to meet your BMR financing
requirements
and
project
finance.
Bank Guarantees/Letters of Credit

MCB Bank offers LG/SBLC facilities on behalf of our valued corporate clients. Due to
exceptional ratings, MCBs guarantees are accepted and used in business/trade transactions
without limitation.
TRANSACTION BANKING
MCB Provides a wide range of solutions designed to meet the needs of their corporate
and institutional business partners. MCB understand how important it is for their customers to
access the funds and utilize the MIS to enhance the business needs. It is around these
fundamental concepts that MCB has customized their product solutions.
Structured Cash Management Solutions
Collections
Online Fund Transfer (OFT)
Tejarat Card
Processing Agent for Utility Companies
Payments
PayDirect
Online Payments / Payroll
Vendor Payments
Dividend Warrant Management
Privilege banking
MCB Privilege through its dedicated, world-class Privilege Centers offers a higher level
of personalized services, more rewarding in-branch experience and a wide array of deposit and
investment products that are tailored to meet the financial expectations of custom. As members
of MCB Privilege, customers experience unparalleled advantages that put them ahead of others.
mcb Islamic banking

MCB-Islamic
compliant
solutions
Banking
to
its
Group
(IBG) provides Shariah-
valued
customers to fullfill their deposits as

well as financing needs. Customers
needs on deposit side are being satisfied
keeping in view of their business, short term and long term investment requirements; whereas on
financing side, the Working Capital, Capital Expenditures, Trade.
Business and Consumer requirements are being satisfied through available sharia
compliant financing products. In addition to existing IB products, IBG believe in facilitating its
customer by offering new products both on assets and liability side. IBG has introduced a new
asset based product for satisfying exporters pre-shipment financing needs by offering Istisna
Pre-shipment Export Finance. And for its valued depositors, a special term deposit scheme with
attractive profit rates for senior citizens and widows under the name of Aasoodgi was also
introduced. MCB-Islamic Banking is offering its product through its 27 dedicated Islamic
Banking branches in 14 cities across the country. In order to facilitate its customer and to
increase outreach of Islamic banking deposit products, an initiative was taken by introducing
Islamic banking windows in conventional branches. This initiative was taken up with 50+ IB
windows, which is expected to further enhance in future.
Part 2
Internship report
At Mcb rewaz garden branch
1227
Overview of branch
MCB REWAZ GARDEN (1227) branch is a 3 segment branch of MCB Bank where the
functions of lending, pooling and foreign currency operations are done through a very smooth
system. It is an A category branch. There are different departments working in this branch.
The system of the branch is centralized and controlled by the Circle Office Neela gumbad. It is
hoped that soon this branch will be made decentralized so that the working can be made more
efficient and fast.
1. Staff strength
There are seven employees working in this branch. Their names and designation are as
followed:
1.
2.
3.
4.
5.
6.
7.
8.
Employee Name
Muhammad Asif Saleem
Mr. Farrukh Ayub
Muhammad Iqbal
Muhammad Asif
Sania Dayan
Muhammad Ather
Farida Sultana
Designation
Branch Manager
Branch Operation Manager
General Banking Officer
Credit Manager
General Banking Officer
Chief Teller
Teller
2. Departments
Following are the main departments of MCB Rewaz garden branch:
1 Account Opening Department
2 Clearing Department
3 Remittance Department
4 Cash Department
5 Advances Department
6 Foreign Exchange Department
7 Operations
Account opening Department

This department performs various functions among them the first and most important
function is A/C opening. The bank reserves the right to open any account, which in its opinion is
suitable as a customer. The process of opening an account is very simple and anybody that would
like to open his account could do it easily without any difficulty.
Types of Accounts:
Current account
Saving account
Term deposits account
Procedure for Account Opening:

1. Customer comes into the branch and requests for opening an account.
2. Customer Services Officer (CSO): delivers the Account Opening Application along with the
terms and Conditions (AT&C) and relevant documents to the customer.(in this branch this work
is done by GBO Saina Dayan).
3. Customer: receives the Account Opening Form (AOF) from CSO and submits duly completed
AOF and relevant documents to the CSO.
4. CSO: checks that all the fields in the Account Opening Form have been duly filled, and the
relevant account documentation required from the customer depending on the type of account are
completed and attached.
Account Opening Form (AOF)
Specimen Signature Card (SSC)
Account Terms & Conditions acknowledgement
Attested copy of CNIC and obtain Nadra verisys online
Copy of employment or student Card & other verification documents as required on caseto-case basis.
Obtain customers signatures on the AOF and SS Card (in person). Moreover one
signature card will be used to capture per signature of the client (In case of Joint Account
Holders use additional signature card). Subsequently takes the form to the Operations
Manager for Verification and authorization.
Then the form is passed on to the Branch Manager for signature
Manager Completes and sign off Know Your Customer (KYC)/ Client Profile Form.
Returns the same to the CSO for further processing.
CSO completes all necessary documentation.
As this branch is centralized so they do not open accounts themselves. The CSO scan all
the documents and send it to the circle office by mail. This process is called electronically
account opening forms (EAOF).
If all the particulars are right the CPU (central Processing unit) opens the account within
one or two working days. An electronic account number is provided.
After opening of account the CSO informs the account holder to deposit in his account so
that they can apply for cheque book and ATM.
Issuance of Cheque Book

After opening an A/C with the bank, the A/C holder once again makes a request in the
name of bank alongwith the letter of thanks which he received from the circle office for the
issuance of a cheque book. The A/C holder mentions title of A/C, A/C number, sign it properly
and deposit at least Rs 1000 in his account.
Current And Saving Accounts Are Opened As:

Partnership Account
1
Application for Opening Account
Specimen Signature Card (SF-6).
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

Copies of the following documents duly certified by the authorized officer of the:
1
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

Certified copies of:
1
Certificate of Registration issued by the Registrar of Cooperative Societies/ Registration

Authority.
Bye-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 Bye-Laws/ Memorandum and Articles of Association.
Attested copies of CNIC of the authorized officials/ persons.
Agents Accounts
1
Certified copy of Power of Attorney
Attested photocopy of Computerized National Identity Card (CNIC) of the agent.
Trust Accounts
1
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: (Age below: 18)

A Minor is a person who has not attained the age of 18 years, if the Court appoints
guardian of his/her person or property, then the period of his minority extends to the age of 21.
1
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 (As per Form B) &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 / Photo/ Disable Persons Accounts

1
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)
Clearing department
Clearing means collection of cheques receive from our customers but drawn on other
banks. Receiving the instruments deposited by customers posting the amount of instruments in
credit of customers account if cheque returns from the concerned bank, the customer account is
debited. Crossing stamp is put on the instrument and slip given to customer on receipt of the
instrument. Clearing stamp and payee account credited are put on the back of the instrument
and the voucher. NIFT has provided the facility of clearing the cheques of different banks.
Cheques lodged in clearing constitute two types of clearing:
Outward Clearing
Inward Clearing
Outward Clearing
When cheques, and other negotiable instruments drawn upon other banks like NBP, HBL
BOP of the same city (as Lahore) are presented in MCB Bank to deposit them in the respective
payees accounts, these instruments are lodged in outward clearing (o/w clg) of MCB bank.
Procedure of Outward Clearing:
Following points should be properly checked:
The name of the branch appears on its face where it is drawn
It should not stale or post - dated or without date.
Amount in words and figures does not differ.
Signature of the drawer appears on the face of the instrument.
There should be no material alteration, if so, it should be properly authenticated.
If order instrument suitably indorsed and the last endorsees account being credited.
Endorsement is in accordance with the crossing if any.
The amount of the instrument is same as mentioned on the paying-in-slip and stump.
The title of the account on the paying-in-slip is that of payee or endorsee (with the exception of
bearer cheque).
Steps of outward clearing:

In the branch GBO is the head of clearing department. He receives deposit slips and
instrument for clearing.
Check all necessary particulars of deposit slip and Scrutinizes Instruments
Affix banks Clearing Stamp and sign-off deposit slip and return customer copy (B) to the
Depositor.
stamp the instrument and deposit slip along with the signature
Detach Deposit Slips from the instruments.
Enter details on manual register. Details include; a/c #, title of the beneficiary, bank
drawn on, branch, cheque # and amount.
Makes a summary of the received instruments along with the bundle cover.
Deliver the instruments to NIFT rider in the evening for realization of funds.
NIFT receives instruments from the branch along with the covering.
Process them for onward delivery to the concerned banks for clearance of funds next day
Cheques Return:
Reasons for cheque return:
Over writing
Signature differs
Balance Insufficient
Amounts in words and figure differs
Dormant Account
No stamp of clearing or if it is not clear
No stamp of crossing or if it is not clear
etc
Inward clearing
In MCB rewaz garden branch handling of inward clearing is being performed from
centralized Processing Units (CPU). Branch receives instruments from CPU after processing and balances
the entries.
REMITTANCE DEPARTMENT
Transfer of money or equivalent to money from one branch to another branch of the same
bank is called remittance. Now it has become easier and safer method both for the client and
banker to transfer their money from one branch to another within the city and outside the city
through the instruments.
Originating Branch:
It is the branch, which issues advice of remittance to other branch.
Responding Branch:
It is the branch which receives instrument for remittance.
Types of Remittance
Remittance is classified into following four types.
Inward Remittance
Outward Remittance
Inland Remittance
Foreign Remittance
Inward Remittance:
The way a branch receives the instrument directly from the customer or from the
originating branch, and is responsible to pay the instrument is called inward remittance.
Outward Remittance:
The way in which a branch issues or sales the instrument to the responding branch is
called outward remittance.
Inland Remittance:
Transfer of money from one branch to another branch of the same bank within the same
country is called inland remittance. In this case both originating branch and responding branch
will be situated in the same country.
Foreign Remittance:
Transfer of money from one country to another country is called foreign remittance. In
such case originating or responding branch will be out of the country, and mostly conversion of
foreign currency is involved.
ADVANCES DEPARTMENT
Advancing of Loan:
When a customer borrows from a bank a fixed amount repayable either in periodic
installments of in lump sum at a fixed future times it is called advancing/lending by the bank.
Customer has to pay mark-up on the entire amount.
The advances department has to prepare credit line proposal to ensure that the security for
the advance is perfect and to provide all information required on the credit worthiness of the
client.
Advances Are Given To Customer On The Following Basis:
Experience, capacity and credit worthiness of the borrower.
Financial condition of his business
Details about the customer dealing with other associated companies
Account turnover position
Average balance maintain
Classification of Advances:
In MCB advances are classifies in following types:
Demand Finance
Running Finance
Cash Finance
Demand Finance:
The duration or repayment of this advance is longer than cash and running finance. These
advances are made in lump sum and there is permission to repay the amount in periodic
installments or in a lump sum. Big loans are sanctioned under this finance against reasonable,
Mark-up is charged on KIBOR Rates or at a fixed rate as approved by the sanctioning authority.
Running Finance & Cash Finance:

The maximum time period of repayment the advances is one year. Its according to the
will of the customer to repay it whenever, within this period. Customer can operate the running
finance facility as a current account to meet their urgent and unexposed requirements.
Facilities:
MCB has provided two types of facilities in case of advances.
Funded Facility
Non-Funded Facility
Funded Facility:
Funded facilities are those in which banks funds are involved. These are granted to the
customers according to their requirement only against securities. There are following types of
advances, which are given to customer on fund basis.
Industrial loans
Commercial loans
Agricultural loans
These loans are given specially to traders, business, and small industrial units, including
cottage industries, agriculturists, thus ensuring unquotable distribution of bank credit among
various sectors of the countrys economy.
Non-Funded Facility:
When and applicant for an advance cannot offer any tangible security the banker may
rely on personal guarantees, letters of credit to protect himself against loss on advance or loan.
My learning experience
In the MCB Bank Ltd, I really enjoyed working with the staff of Rewaz garden Branch,
Lahore. It was almost impossible to work in all the departments within that limited time. But on
my request, the staff of the branch provided me the opportunity to work in the different
departments for the sake of practical knowledge. I feel highly indebted to work in this Branch
because I learnt a lot there.
During my internship training in the MCB, I worked in different departments and seats
and learnt the followings:
Filling of cheques & deposit slips

The first work which I have given was of filing of cheques and deposit slips. There are
some clients of banks who do not know how to fill a deposit slip & cheque so the staff helps
them in doing so. I also filled many of them and learned that there are certain things which are
important to write correctly and necessarily. For cheques the name of payee, amount in words
and figures, date, signature of drawer should be clearly and correctly mentioned.
ACCOUNT MAINTENANCE DEPT:

The second major department in consumer banking is related to the maintenance of
different types of accounts.
This department consists of the following main tasks:
Account opening procedures

Issuance of cheque books
Deposit and withdrawal of cash
Monthly provision of profit
Posting of deposits and withdrawals in computer
Daily balancing of accounts in computer with other summary sheet
Printing of daily transactions
etc
All these procedures, except a few, are daily repeated. I have done some of these works
with my own hands and watched carefully the remaining procedures.
The second major work which I have done was of account opening I fulfill all the
formalities for account opening e.g taking CNIC, signature verification, ss card, other necessary
documents like CNIC of next of kin, proof of source of income, etc.
PROCEDURE OF OPENING OF AN ACCOUNT:

In order to open an account, first of all, the customer has to fill a form prescribed by the
bank. Following are the General formalities for opening of A/C
CNICs of A/C Holder(s)

Proper Introduction
Filling of A/C Opening Form
CNIC of next of kin
proof of source of income
Admitting the signatures of customers on SF-6
Partnership Deed (In case of Partnership)
Memorandum & Articles of Association (For Company)
Know Your Customer Forms
issuance of cheque book

I also made application for cheque book on the request of customer. The customers who do not
have any cheque book before of the branch they requisition for cheque book. The cheque book
received in 5 working days. On the arrival of cheque books I made entries of them in the manual
register and note the a/c number, title and series of cheque book. Mainly there are two types of
cheque book, 1) for current a/c, 2) for saving a/c. The difference is only of the leafs of cheque
book. I also assign a unique number to the cheque book in the register. Then all these information
also feed in the system. When the customer comes to receive the cheque book, his sign are taken
on the requisition and in the register also. A letter of thanks also taken from the customer which
is provided by the bank on opening of account with the bank. It is to confirm that he is the
original client. After that cheque book issued to the customer after stamping and officer
signature. For second time or further request there is no need of letter of thanks.
Clearing department
In Clearing Department, the cheques of other branches of MCB as well as of other banks,
which are presented for deposit by the customers of that particular branch, are sent for clearing
through NIFT to the corresponding Branches and Banks. I have also worked in the clearing
department. My work was to enter the particulars of cheques received for clearing in manual
register. The particular was payees name; a/c number, drawer bank, city name, cheque number
and amount of cheque.I also enter the particulars of cheques which return are not cleared. I
observe that the cheque which are returned uncleared are due to these reasons: Insufficient
balance, amount in words and figures differs, alteration in the particular of instrument, wrong or
not signed, not properly stump etc.
Types of Cheques Received

During my internship training in the MCB Bank, I observed and found Cheques are received for
the following purposes.
For Cash payments
For transfer(from one account to another account)
For Clearing
Cheques for Clearance

There are two stamps put on each cheque, sent for clearing:
Crossing Stamp
Clearing stamp
Payees a/c credited stamp
Other works done by me

Receive dak
I also receive dak of the bank and made entries in register. There are different types of
dak receipts e.g cheques, Banker cheque, invoices, bills, circulars, notification from circle office,
etc.
atm visa debit card

At MCB I made some VDC application form for the customers. I made calls to customer
to convince them to apply for VDC. In this practice I learned how to handle different situation
and how to talk to different type of people. In a VDC form the necessary information is needed is
name a/c #, phone #, CNIC #, address. The ATM is received to the customer on his address
within one week if it is not delivered on his address then it is delivered to branch. The branch
informs the customer. He comes verify his identity and receives the card.
Stamping on instruments
Making of cdr and banker cheque
atm balancing
Making of credit vouchers
Filling of kyc forms
swot analysis
Strengths
1
2
3
4
5
6
7
8
9
10
11
12
13
Provision Of Services in Diversified Sectors(Corporate, Retail, Islamic, Privilege)

Increase in Market Price of Share
Increase in Net
High Credit Rating(A1+ in short term & AAA in long term)
Large ATM Network
Technological advancements (Mobile Banking, Virtual Banking ,ATMs)
Wide Countrywide branches network
International Expansion
Strong Asset Base
Steady increase in Customer Deposits
Steady increase in Customer base
High Brand Recognition
Low cost Funding
Weaknesses
1 Manual Book-Keeping
2 Less attractive rate of return.
3 High burden on Employees
4 Difficult targets
5 Old Branch Structure
6 Centralized Structure
7 Poor management
8 Unfair recruitments and promotions
9 Inadequate work allocation
10 Improper ATM Network
11 Lack of promotional activities
12 Improper Branch Network
13 a lot of paper work
Opportunities
1
2
3
4
5
6
7
More Overseas Operations.

Employee Training Programs within and Outside Pakistan
Branches in Rural Areas.
Efficient ways of Recruitment and promotions
Launch more effective and modern banking online system.
Growing Market
High growth Potential Islamic Banking
8 New Products and Schemes

9 Increase in Branch Network
10 Improvement in segmenting in customer needs and developing focused customer
propositions,
11 Mass Media Publicity
Threats
1 Higher rates of return on NSS as a part of tight monetary policy
2 Increase in Non-Mark-up Expenses due to inflation and adverse condition of stock
markets
3 Poor Economic conditions of country
4 Technological forces
5 Rapid increase in new entrants
6 Foreign banks providing better facilities
7 Competitors banks attracting experienced employees
8 Instable Political Conditions
9 Switching of customers to competitors
10 Terrorist activities
Recommendations
The following suggestions can be recommended to overcome flaws in MCB and to
improve the efficiency for the development of the bank.
Employees Training Programs must be introduced on continuous basis so that the

employees will have understanding with the latest developments especially with the
customers.
Bank should introduce incentive plans for employees on regular basis so that if
employees will work whole-heartedly for the welfare of their organization.
Incentives should be given on the basis of qualification, hard work, and experience etc.
Fresh graduates must be recruited because the combination of fresh and experienced can
produce better results and will improve the efficiency of management.
Such system should be designed that every employee who has some problems with his
officers can communicate it to the higher management. This will help in resolving the
conflicts.
Recruitments should be strictly on merit basis and induction should be after proper and
extensive training.
Working environment, equipment, furniture and staff dressing should be according to

modern banking style.
Proper attention should be paid to upgrade customer services.
Conclusion
With Cooperation of all branch members, I have been able to learn and experience many
new things related to the banking sector and the banks workings. I am able to handle the public
with respect to many different workings on many different instances and also in account opening
for customers and can handle many other tasks as well.
Finally I concluded that MCB is a good organization for a person for his long term career
workings. Overall working and environment of the bank is very comfortable and the staff is very
helpful and respectful of each other and it still maintains a professional environment.
Management of the bank is very strong.
Employees of MCB Rewaz Garden branch work more than their working hours and all
the workings take place in a very friendly atmosphere that does not induce pressure on the person
working there. It also shows their loyalty and commitment to the organization. This branch of
MCB relatively small and has climbed its way up very quickly and all that only because of the
employees efforts and consideration for each other.
References
https://www.mcb.com.pk/
http://www.abdallahshah.com/MuslimCommercialBank.html
http://newart2013.blogspot.com/2012/10/history-and-development-of-banking-in.html
http://prr.hec.gov.pk/chapters/2264-2.pdf
mcb annual report 2013
mcb quarter report 2014
mcb free float
Staff of mcb rewaz garden branch

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INTERNSHIP REPORT

ON MCB BANK LIMITED

HAFIZA GHAZAL MUNIR

First of all I would like to thank ALMIGHTY

This Project is dedicated to our Parents, our Teachers and Our

OVERVIEW OF MCB BANK........................................................................................................7

BRIEF HISTORY OF BANKING IN PAKISTAN

Hailey College of Banking & FinancePage 2

History of Banking in Pakistan starts from the partition of Indo-Pakistan sub-continent in

Hailey College of Banking & FinancePage 3

1. National Bank of Pakistan

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1. NATIONAL BANK OF PAKISTAN

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MCB can be divided

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Mcb bank today

Working Capital Loans

Trade Finance Services

Hailey College of Banking & FinancePage 9

Rupee Travelers Cheque (RTC)

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VISION & MISSION

We are a team of committed professionals, providing

customers. In doing so, we ensure that our

Hailey College of Banking & FinancePage 11

Delivering remarkable returns to stakeholders, sustainable performance,

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Best Domestic Bank - Pakistan

Best Domestic Bank - Pakistan

Most Stable Bank of the Year

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Strongest Bank in Pakistan

Best Domestic Bank in Pakistan

Best Bank in Asia

Best Bank in Pakistan

Best Bank in Pakistan

Best Bank in Pakistan

Best Bank in Pakistan

Best Bank in Pakistan

Best Domestic Bank in Pakistan

Hailey College of Banking & FinancePage 14

Mian Mohammad Mansha

Mian Raza Mansha

Aftab Ahmad Khan

Mian Umer Mansha

Dato' Seri Ismail Shahudin

Ahmad Alman Aslam

Muhammad Ali Zeb

Mohd Suhail Amar Suresh Bin Abdullah

President & CEO

Hailey College of Banking & FinancePage 15

Hailey College of Banking & FinancePage 16

3.4.2 Management committee

Agha Saeed Khan

Syed Rashid Rahman

Group Head - CSR & Security

Mohammed Nauman Chughtai

Group Head - Risk Management

Syed Mudassar Hussain Naqvi

Group Head - Legal Affairs

Group Head - CCM & Special Projects