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Internship Report
INTERNSHIP REPORT ON
MCB Bank Limited
Adalat Garh Branch, Sialkot
U N IVE REIT? DF BU-J FIR"!
BY
Haseeb Razzaq
MBA (Finance)
08031020-076
Session: 2008-2010
DEPATMENT OF MANAGEMENT
SCIENCES
UNIVERSITY OF GUJRAT
April, 2010
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Internship Report
INTERNSHIP REPORT ON
MCB Bank Limited
Adalat Garh Branch, Sialkot
Acknowledgement
.................................................................... 9
CHAPTER # 1 INTRODUCTION
INTRODUCTION: ..................................................................
.............................................. 9
BACKGROUND OF THESTUDY . 9
PURPOSE.
SCOPE ...........................
LIMITATION OF THE STUDY: .
OBJECTIVES.
METHODOLOGY...
Primary Data:
Secondary Data:
ORGANIZATION:...... .. 11
SUMMARY ...................................................... .. 11
CHAPTER # 2 ROLE OF SECTOR AND ORGANIZATION . 13
INTRODUCTION: .................................. .. 13
li/[ission Statement: .. I8
VALUES: .. 19
FUNCTIONS: ......... .. 20
Principalfunction; 20
Deposits: ....... 20
FINANCING ......................................................................
.................................. 21
Auxiliaryfunction ..............................................................
........................................ 22
ORGANIZATION OFFICE IN WHICH YOU ARE WORKING .. 24
SUMMARY: ................................................................ . ..
25
CHAPTER # 3 HISTORY OF ORGANIZATION .. 26
INTRODUCTION: .......... 26
BRIEF HISTORY OF THE ORGANIZATIO 26
NA TIOINALIZA TION: .............. .. 26
PRIVA TIZATIONz. 27
Awards ofMCB: 27
Present
Status: ........................................................................
................................... 28
RELATIONSHIP OF HEADOFFICE TO THE
BRANCHOFFICES: ................................................ 30
MAIN DEPARTMENTS AND THEIR JOBS ............. . .
GENERAL
BANKING ........................................................................
........................ 30
REMITTANCE .....................................................................
................................ 30
MAIL
TRANSFER .......................................................................
.................... 31
TELEGRAPHIC TRANSFER ...................................
PAYMENT OF PAY-ORDER AND DEMAND DRAFT .................................. 32
CANCELLATION OF PAY-ORDER AND DEMAND FRAFT ....................... 32
VOUCHERS .......................................................................
...
INWARD
CLEARING .......................................................................
.............. 32
OUTWARD
CLEANING .......................................................................
.......... 33
ISSUANCE OF CHEQUE BOOKS . ..
ISSUANCE OF ATM
CARDS .........................................................................
33
CANCELLATION OF ATM
CARDS ............................................................... 34
SHORT NOTICE TERM DEPOSIT . .
CALL
DEPOSIT ........................................................................
...................... 34
FOREIGN
EXCHANGE .......................................................................
................ 34
LCS ESTABLISHMENT ..
PAYMENT OR
RETIREMENT .....................................................................
.. 35
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FOREIGN CURRENCY DEPOSITS ..
FOREIGN REMITTANCES .........
ADVANCES / CREDIT. .................
SWOT ANALYSIS:
STRENGTH: ......................................................................
........................................ 49
WEAKNESS: ......................................................................
........................................ 49
OPPORTUNITIES. 50
T HREA
TS: ............................................................................
..................................... 50
PEST ANALYSIS AND ENVIRONMENTAL
SCAN ..................................................... 50
POLITICAL AND LEGAL EN VIR ONMENT :. ...... ..
ECONOMIC
TRENDS .........................................................................
...................... 51
SOCIOCULTURAL
ENVIRONMENT ....................................................................
... 51
TECHNOLOGICAL FACTORS ........
RATIO ANALYSIS OF THE
MCB: ...........................................................................
............ 52
Interpretation: ................................................................
................................... 53
Interpretation: ............
CHAPTER # 6
RECOMMENDATION ........................................................... 56
SHORTAGE OF
STAFF: .........................................................................
............................. 56
OTHERS ............ . 57
OVERALL SUGGESTIONS FOR IMPROVEMENT ............ 57
Introduce Various Protable Investment Schemes .. .. 57
Introduction:
Chapter one is about introduction of report. As a part ofrequirement of
MBA degree six week internship is necessary for student. This chapter
includes background, purpose, scope, objectives and methodology of the
study. It also include introduction of organization.
Background of the study:
Internship training program dLring Master in Business administration
Program is necessary for the partial fulfillment of the completion of Degree of
Master in Business Administration. It is necessary for me to complete an
internship session of about 6 weeks in some manufacturing or service industry
relevant to my area of interest and specialization. So, I choose the Banking
field because I have the interest in this sector because my study background is
related with this sector.
Purpose
Internship is the capstone experience that provides me with hands-on,
real-world experience in a work setting. Ideally, internship will enable interns
to:
(a) integrate and use my knowledge and skills from the classroom,
(b) discover where further competence is needed,
(c) take steps to gain that competence under educational supervision, and
(d) become better acquainted with the types of work settings in which such
competence can be applied.
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Scope
This study will facilitate the students regarding the working of Banking sector
of Pakistan because most of the teachers during their lectures use the examples
of Banks like MCB, National Bank, UBL, Bank Alfalah and many others,
students should study this report so that they must grasp the functioning of
such Banks.
Limitation of the Study:
The study is done with the sole purpose of doing the best work but
there were certain limitation faced during the internship period. The most
important limitation from which the study suffers is the nonavailability of
information in a manner required for analysis and the secrecy of the bank.
Another important limitation of the study is time and space constraint.
Objectives
I worked as an internee in MCB Adalat Garh branch, Sialkot. The main
objectives to study in MCB were:
0 To get some experience in working with well reputed organization.
0 To gain knowledge about the professional environment of the bank.
0 To know about the technology utilized in the banks.
0 To deal and manage with the situation of stress.
Methodology
There are mainly two methods that are used for the collection of data.
Primary Data:
0 Observation of functions of Branch operations on the spot.
0 Observation of different processes of Branch on the spot.
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Secondary Data:
0 Internet is very helpful for me to study more about bankingsector
of Pakistan.
0 Different type of booklets of the Bank.
0 Annual reports
0 Journals
0 Newspapers
Organization:
MCB 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. Incorporated n
1947, MCB soon earned the reputation of a solid and conservative nancial
institution managed by expatriate executives. In 1974, MCB was nationalized
along with all other private sector banks.
The Bank has a customer base of approximately 4 million, a
nationwide distribution network of over 1,000 branches and over 450 ATMS in
the market.
During the last fteen 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.
Summary
This is the rst chapter of the report containing the detail introduction
of the report. Internship training program during Master in Business
administration Program is necessary for the partial fulfillment of the
completion of Degree of Master in Business Administration. Internship will
enable interns to integrate and use my knowledge and skills from the
classroom. This study will facilitate the students regarding the working of
banking sector of Pakistan.
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Internship Report
For achieving my purposes, objectives and for the preparation of the
internship report I required some kind of data, I used both methods of data
collection that are primary sources and secondary sources for that purpose
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Chapter # 2 Role of Sector and Organization
INTRODUCTION:
This chapter will summarize that whats the current situation of the
banking sector in Pakistan. What elaborate the importance of MCB in the
banking sector of Pakistan? This chapter will explore the role of MCB inthe
economic & social development of Pakistan. Moreover this will also tells you
about the functions thats the organization is performing and about the
internship ofce.
Overall respective sectors in Pakistan:
Banking is one of the most sensitive businesses all over the world.
Banks play very important role in the economy of a country and Pakistan is no
exemption. Banks are custodian to the assets of the general masses. The
banking sector plays a signicant role in a contemporary world of money and
economy. It inuences and facilitates many different but integrated economic
activities like resources mobilization, poverty elimination, production and
distribution of public nance.
HISTORY OF BANKING IN PAKISTAN:
At the time of independence, commercial banking facilities were
provided fairly well here. There were 487 offices of schedule banks in the
territories now constituting Pakistan. An Expert committee was appointed.
The committee recommended that the reserves bank of India should continue
their function in Pakistan until 30 September. 1948, and Pakistan would take
over the management of public debt and exchange control from reserve bank
of India on April 1948 and that Indian notes would continue to be legal tender
in Pakistan until 30 September 1948. Moreover the banks including those
having their registered office in Pakistan transferred them to India in order to
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Internship Report
bring a collapse ofa new state. By 30 June 1948 the number of the offices of
scheduled banks in Pakistan declined from 487 to only l95.In order to make
necessary arrangement for the assumption of control and expert committee
was appointed to recommend necessary steps, including the required
legislation to establish a central bank for Pakistan. The g)vernor-general of
Pakistan Quaidi-Azam Muhammad Ali Jinnah inaugurated the State Bank of
Pakistan order was promulgated on May 12, 1948. The rst Pakistani notes
were issued in October 1948 in the State Bank of Pakistan withdrew the
reserves Bank of India notes of the value of Rs. 125.02 crores with the help
the Pakistan notes.
On 1st January, 1947 all Pakistani banks were nationalized through
Nationalization Act 1974. Under this law all Pakistani Banks become a pubic
property. All small banks were merged in bigger banks to create five major
Pakistani banks. These banks were to control by Pakistani Banking Council.
There are still controversies about this act of Govt. as whether it contributed
in
success of failure of banks. However the major changes after Nationalization
were as follows:
9
0.9
Working of banks was extended to under-developed areas.
0
Market expansion for credit and deposits.
0
90
Decrease in service level of bank officers.
.9
" Decrease in profitability as well.
In 1990 the govt. decided to denationalize all the nationalized institutions.
Same was also suggested in banking sector. For this purpose, amendments
were made to Nationalization Act 1974 and two nationalized banks were
privatized. Along with this a permission to open banks in private sector was
also granted. The rules regarding establishment of new banks and for
incoming foreign banks were also relaxed. The two privatized banks are: MCB
taken up by a private group in April, 1991 & ABL taken up by its own
employees in September, 1991. After these changes a large number of private
and foreign banks started their operation in Pakistan
Now, Pakistan has a well-developed banking system, which consists of a
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.
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.
INNOVATION
We encourage and reward people who challenge the status quo and
think beyond the bOIndaries of the conventional. Our teams work
together for the smooth and efcient implementation of ideas and
initiatives.
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Functions:
Basically there are two basic categories on the basis of functioning of MCB
Bank, which are
0 Principal function
0 Auxiliary function
Principal function:
The principal functions are basically the core functions of the bank that is
their
lifeblood of bank, which are
0 Acceptance of deposits
0 Financing
Deposits:
There are basically two types of deposits and their nature vary due totime
factor, which are
0 Demand deposits
disbursement.
0 Running Finances:
It is always a short-term loan i.e., one-year. It can be withdrawn at any
time and deposited at any time. It is basically for running day today business
operations. This type of loan is provided to the person who has the strong
relation with the bank.
0 Cash Finances:
Cash finances are for a limited period of time i.e., one year. It is
advanced to people to complete the working process.
0 Fixed Asset Financing:
This type of account is provided to the business for the purchase of fixed
assets and the assets is considered as the security.
0 Overdraft
This type of loan is provided to the individual that has very healthy position
and they are allowed to draw up to the limit if there is no balance in the
account. The rate of interest is charged onthe daily basis.
Auxiliary function
These are the functions that have the secondary position in the bank point of
view. These functions are cause to attract the customer. Banks performs this
kind of functions as per demand on the extra charges.
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0 Collection of Cheques
MCB acts as an agent to its customers in the collection and payment of
cheques, bills and promissory notes. This is done on the behalf of the customer
and MCB charges the commission.
0 Locker:
MCB also provides locker facility to its valuable clients. where of
people can be kept their precious ornaments.
0 Collection of Dividends:
The bank provides a very useful service in the collection of dividends
or interest earned on stocks and shares held by his customers. The customer is
simply to inform the issuer of the securities that the interest on the
securities is
to be credited to his account in the bank.
0 Purchase and Sale of Securities:
MCB is authorized by the customer, purchase or sale securities on his
Internship Report
Summary:
Banking started in Pakistan after the bold and emergent decisionof
formulation of SBP on July 1, 1948. Thereafter this sector has witnessed
enormous growth. In 1974 banks were nationalized, in the hope that new era
of growth could be achieved through it. However the process is reverse since
1991, up till now MCB, ABL, and UBL have been privatized and HBL is in
the process of its privatization. Pakistan's banking sector has remained
remarkably strong and resilient durirg the world nancial crisis in 200809.
During the scal year of 20082009, total assets of all the scheduled banks
increased by Rs 574.7 billion. During the fiscal year of 200809, there was
also an increase of Rs 248 billion in the net advances of the scheduled banks.
The principal functions of MCB are acceptance of deposits & financing and
auxiliary functions of MCB are Collection of Cheques, Locker, Collection of
Dividends, Purchase and Sale of Securities & etc.
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Chapter # 3 History of Organization
Introduction:
Chapter three is about the introduction to the MCB Bank Limited. In
this chapter the overall working of MCB is described. This chapter contains
information about the brief history of the organization. When the bank was
established and who starts it.
Banks have a proper communication system through which the head
office communicate to the branch offices. The details of communication
system followed by head office are included in chapter three.
Brief History of the organization:
MCB Bank Limited formerly known as Muslim Commercial Bank
Limited was incorporated by the Adamjee Group on July 9, 1947 in Kolkata
in Bengal, under the Indian Companies Act, VII of 1913 as a limited company.
But due to changing scenario of the region, the certicate of incorporation was
issued on 17 August, 1948 with a delay of almost 1 year; the certificae was
issued at Chittagong. The rst Head office of the company was established at
Dacca and Mr. G.M. Adamjee was appointed its rst chairman. It was
incorporated with an authorized capital of Rs. 15 million. The Bank
transferred its registered/Head office from Dhaka to Karachi on August 23,
1956 through a special Resolution.
NATIOINALIZATI ON:
In January 1974, the government of Pakistan nationalized MCB
following the banks (Nationalization) Act 1974, subsequently, in June 1974,
Premier Bank limited merged with MCB.
MCB won Best Bank in Asia award in 2008. MCB also won the
"Best Bank in Pakistan" award in 2008, 2006, 2005, 2004, 2003, 2001, 2000.
In addition, MCB also has the distinction of winning the Asia Money award in
2009, 2008, 2006, 2005 & 2004 for being 'The Best Domestic Commercial
Bank in Pakistan".
Present Status:
In 2007, MCB reported a prot after tax of PKR16.4 billion (US$270
million) and generated a return on average equity of 38% and a net interest
margin of 8.08%. The Banks asset quality is strong with a gross NPL ratio of
Internship Report
As part of the transaction, Maybank and MCB are also expected to
enter into a business cooperation arrangement which will include, among
others, Islamic banking, retail banking, credit cards, asset management and
SME banking. Leveraging Maybanks leadership and experience in these
segments coupled with MCBs brand and broad distribution network,
Maybank and MCB believe that signicant revenue synergies can be attained.
Both Maybank and MCB are also expected to benet from increased business
ties and trade ows between Pakistan and Malaysia.
Relationship of head office to the branch offices:
In MCB decision, strategies, policies are made by the top level
management and these are implemented in each branch. Top level
management dont involve the lower management in decision making process.
MCB is the pioneer of computerization, as far as it has a very
developed and fastest network. So the head office and all of its brancles are
linked through a electronic network, that make possible easy and in time
transformation of the important information.
MAIN DEPARTMENTS AND THEIR JOBS
There are three main departments in any branch of MCB
:2: GENERAL BANKING
:2: FOREIGN EXCHANGE
:2: ADVANCES/CREDIT
GENERAL BANKING
General banking deals with following services:
REMITTANCE
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
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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 hasto take the
benet 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 inthe favor of beneciary.
These are noted in printed block letters and yearly serial numbers are
issued from computerized system.
DEMAND DRAFT
SAVING ACCOUNT
MCBs Foreign Currency Savings Account offers you
attractive returns on your foreign currency investment. Unlimited
transaction facility, prot 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.
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MCB RUPEE MAXIMIZER ACCOUNT
MCB Rupee Maximizer Account provides you an opportunity
to convert youre the 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 CurrencyAccount
balances into Pak Rupees and earn a prot at the rate of 12.6% per
annum.
Other features include prots 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.
KHUSHALI BACHAT ACCOUNT
Open a Khushali Bachat or Dollar Khushali Account, both
require low minimum income deposits plus you receive profit on daily
product basis. Get a saving with current account facilities through
saving 365 or double your investment through capital growth and
receive monthly prots through monthly Khushali.
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.
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Current staff
MCB Adalat Garh branch has the 8 staff member in which 2 security
guards are also included, which are as fellows:
Internship Report
Current staff of branch according to qualification and
experience:
Mostly the staff of the Bank has not the lot of experience but their
qualification is high because mostly employees are young. Lets see the brief
introduction of the Banks staff experience and their qualication:
Physical facilities
The branch where I have done my internship is MCB Adalat Garh
branch, here the physical facilities available to the customers are sufficient,
proper sitting arrangement is available, and gas heater in winter and air
conditioners for summer is also available. But the facilities for the employees
is not sufficient, employees have the combined table there is no separate
rooms for the employees
Critical analysis of the branch
Although the bank is performing their function very well but mostly
the staff of the bank is young. They have very less experience and low
banking knowledge.
The banking staff always worries about for increasing the deposit of
the bank rather than improving the customers services.
The Branch is not located in the business or industry area that why the
customers output is very low in the Branch
Every morning the Branch Manager gives the Branch report to the
Regional Manager on the telephone meeting which has no logic because
Branch Manager always worries for the deposit.
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Performances
In term ofcustomers satisfaction:
The customers are very satisfied with the performance of the bank. The
bank is provided latest banking services to the customers so that they can
easily access to their accounts. The bank is also providing the internet
facility
to theirs customers through this they can access to heir accounts on the net
and they can check their balance with out going to Bank. The Bank also
provides the door to door services to those customers who transactions are
daily occurs that why those customers are very satisfied with the Bank and this
thing also helps to the Banks for increasing their accounts holders.
In term of accounts and budgets:
The performance of the Banks is increasing day by day. The accounts
holders are very satisfied with the faclities which they provides.
Summary:
In this chapter basically organizational attitude towards its employees
and employees satisfaction and attachment is discussed. MCB performs
several functions and have many departments in order to retain andmaintain
their customers some of these departments are the collections department,
Advance department, Bill department, Clearing department etc. To motivate
the employees MCB provide many allowances and facilities to its employees
such as medical facility, huge amount of bonuses and also motivate the
Introduction
Chapter four is about policies of MCB. It include brief introduction of
policies of MCB.
Policies:
Internship Policy:
MCB is the bank that serves all type of customers and makes its
policies according to their needs and demands here the MCB hasthe
policy to serve the students that is six weeks internship.
MCB has no gender bias
For the selection of the employee MCB focus on merit rather
than gender. There is no any kind of discrimination on the basis of
male or female, a person having the slills and knowledge and is
perfect of that particular job can be selected as the employee.
Opening account policy
Prior to establishing a relationship with new customer MCB
obtains basic information i.e. business, source of income, expected
level of activity in the account and reasons for opening the account.
Training of employees
MCB has the program through which all the employees of the
bank get proper training and then work for the achieving the goals.
Revenue Recognition
MCB recognized its revenue on accrual basis. For example if
MCB invest in some different securities and entitled for the profit yet
not received, the prot is recorded as when it earned not when it
received.
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Investments Policy
MCB also invest its money other than the advances, whileinvesting in
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 tookinitiatives
to increase the usage of debit facility. To provide timely and updated
information, MCB has also provided a new look to its websitewhich is user
iendly and considerably easy to browse.
The Islamic Banking initiative has been very successful in attracting
new customer, both individuals and companies. Similarly, thoserelationships,
which were confined only to current account facility, have grown into stronger
business relationships. The branch network was expanded to Lahore and
Multan during the last year and recently been extended to 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 widerrange of customers for satisfying their
individual and business needs.
Some wide-ranging new strategic initiatives were also 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) inpartnership with
Standard Chartered Bank, handling trade transactions of select countries in the
Asia-Pacic region. It is projected to earn US$ 1 million in its rst year of
operations. To increase its international presence, the Bank will be opening its
representative office in Dubai and entering into major strategic alliances with
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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. MCB's operations continued to be streamlined with
focus on rationalization of expenses, realignment 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.
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 inwhich
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, theBank is focusing on
performance and introducinga 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 deliverychannels,
while SYMBOLS Enterprise Operations Center will serve as its core banking
transaction-processing engine. By implementingSYMBOLS, 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 7 retaining its market leadership as Pakistan's progressive
Bank.
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Summary:
This chapter discuss about policies of MCB. MCB has the policy to
serve the students that is six weeks internship. MCB focus on merit rather than
gender. To be competitive the Bank has further reinforced its position in the
Consumer banking area by streamlining and relaunching the consumer
financing products and introducing more convenience basedsolutions.
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Internship Report
Chapter # 5 Different Models
Introduction:
In this chapter have some models that analysis and explain the real
situation about the MCB. For gathering the real information about the
opportunities and the threats that are facing the MCB this chapter include four
models that are following
o SWOT Analysis
0 PEST Analysis
0 Ratios Analysis
SWOT ANALYSIS:
The overall evaluation of a companys strength, weakness,
opportunities, and threats is called SWOT analysis.
STRENGTH:
The main strength of the bank lies in its services. The other fact that
contributes is approaching to each segment of society. Another positive issue
that because the strength its innovation. Some others are as follows:
o Bank reputation
0 Technical management skills
0 Customer satisfaction
0 Promotion effectiveness
0 Team based approach.
0 Continuous improvement.
0 Quest for quality.
0 Employees respect and dignity.
0 Good corporate citizenship
WEAKNE S S:
Variance compared to
2008
2009 Amount %
Mark-up / return/ interest
Rs. M 51,616 11,572 29%
earned
Mark-up / return/ interest
" 15,841 4,281 37%
expensed
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Interpretation:
The past two years data shows that mostly financial ratios decrease
which Show negative Sign of company. The Bank should have to review its
policies to decrease expenses.
Interpretation:
The past two years data shows that dividend ratios decrease which Show
negative Sign of company. The Bank should have to review its policies to
decrease expenses.
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Chapter # 6 Recommendation
Shortage of Staff:
Almost in all branches of Muslim Commercial the problem of Shortage
of Staff is very common. There are only few employees who are the be alland
end all of the whole branch resulting in burden of work. Basically the main
idea behind it is that whenever there is shortage of staff in any OIganization
it
always result in lot of work and also boots up the destructiveness as well
because people working over there feel like that they can do whatever they
feel like so are least bothered about the rules and regulations as implemented
by the head ofce and mostly it results in corruption.
Staff Is Not Adequately Trained:
Staff in almost all branches ofMCB is not adequately trained with the
contemporary era. Basically MCB is om the very beginning, is pioneer of
new products including ATMS, Mobile Banking and Online banking as well
but as they developed the new systems and products in order to satisfy the
customers want they didnt get their staff trained in relation with those
innovations. MCB having two staff colleges one in Lahore and One in Kaachi
but both make you aware of the systems and procedures but are not training or
can say emphasizing on these innovated products.
Online Banking
This problem is related to the previous problem as well because when
the staff is not adequately trained tlen how can they satisfy their customers
needs, which is the basic theme or mission ofMCB.
When MCB started their online banking, there were only one or two
banks (foreign Banks) doing this practice because of having alarger network
as compared to all other domestic banks MCB started doing this practice but
not successful in it because of the abovetwo problems.
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Others
A lot of productive time is wasted by the staff in unproductive pursuits
and tea and launch breaks are got voluntarily extended and the tine spent in
corridors, depends on the staff will. This tendency of late must be eliminated
which reect adversely on the image of the institution and has posed aserious
problem.
No proper allocation of duties, suitable person for suitable job.
Distribution of work is not on equity basis, work has not been allocated
properly some workers have to work hard in late hours without any extra
reward. So I suggest that steps should be taken to allocate the work properly.
No periodic increase on salaries of employees.
Overall Suggestions For Improvement
From the quantum of the profit and its nancial data it can easily
judged that after privatization MCB is performing well. Its deposits are
growing day-byday and so is protability. The controlling body isresponsible
for the productive performance of the bank.
Following are my observation and suggestion to improve the efciencyfor the
development of the economy.
Introduce Various Profitable Investment Schemes
A big portion of the home remittance is sent by PakStan working
capital through MCB Limited. As we know a big portion of this amount is
wasted purchasing of luxuries. The people motivated to save money by
offering the deposit through various investment schemes. The rateof prot
should increase 1% or 2% than the other banks and it would be profitable step
for bank.
Training Staff:
corridors, courtyards, depends on the staff will. This tendency of late must be
eliminated which reect adversely on the image of the institution and has
posed a serious problem.
Distribution of work is not on equity basis, work has not been allocated
properly some workers have to work hard and have to work in late hours
without any extra reward. So I suggest that steps should be taken to allocate
the work properly.
Reward and Punishment
It is human nature one goes behind reward and incentives while and try
to avoid om punishment. Likewise in conmercial institution like bank this
system be introduced with full force means active smart, educated skilled, self
spoken and well versed staff personal, should be reward and appreciates,while
on the other hand lazy, lethargic, heared, rough dealers and 11 mannered must
be warned penalized and punished. But this all should be on merit and
considering the policy of honesty is the best policy and mot due tosome
personal liking, disliking prejudice and patrimonial. It is therefore suggest
certain schemes and checks may be introduced in banks to increaseefciency
through reward and punishment system.
Survival Of The Fittest
It is not nearly a sentence or idiom right man for the right job
according to his qualification to his qualication, profession skilh and
experience with the job specication must be considered while posting and
placing the employees.
It should not be like that a person who may be a very good worker but
possessing lack of managerial capabilities should be posted as manager. Butas
second place in command or some heavy working department wishedpersons
together with managerial qualities and manners in the same fashionshould be
posted and placed as manager.
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REFERENCES
0 http://www.oppapers.com/essavs/PakistansBankingSectorI ndustrv
Analysisl181995
o http://en.wikipedia.org/wiki/Economv of Pakistan
o http://www.sbp.0rg.pk/reports/annual/arvaS/annex index.htm
o http://en.wikibedia.org/wiki/Muslim Commercial Bank
0 http://www. blurtit.c0m/q 501915.htm|
o MCB Brochures Manuals
0 Annual Report
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