MCB Report (Bbit) .

MCB Internship Report
CH # 01
THE ORGANIZATION
Bank Brief History
Consensus on the origination of word Bank is not yet reached at. Some authors
opinion is that this word is derived from the words Bancus or Banque, which mean a
bench and they further relate banking business inception to Jews in Lombardy. Other
authorities state that the word Bank is derived from the German word Back which
means Joint Stock fund and later on due to German occupation of Italy, this word was
italianated into Bank. Authors quote Babylonians (few quotes Chinese) who developed
banking system as early as 2000. B.C1
A banker is described as a person transacting the business of accepting for the purpose of
lending or investment of deposits of money from the public, repayable on demand or
otherwise and withdraw-able by cheque, draft order and includes any post office savings
bank.
Banking In Pakistan
Banking started in Pakistan after the bold and emergent decision of formulation of SBP
on July 30, 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.
On 14th August 1947, 487 branches of different banks were operating in Pakistan. By
30th June, 1948, 292 branches winded up their business in Pakistan and the remaining
195 branches restricted their banking operations to a minimum level.
The only bank, which shifted its head office from Bombay to Karachi, was the Habib
Bank Limited. MCB with the assistance of Quaid-e-Azam Mohammad Ali Jinnah, started
operation in July 9, 1947 with an Authorized capital of Rs.3 crores. Indo-Pak
subcontinent, the Bank moved to Dhaka from where it commenced its business in August
1948. And in 1956 the bank shifted its head office to Karachi, where it is still working.
In 1948 Ms. Ispahanani and Mr. Abdul Hameed Adamjee purchased the bank. At that
time the bank showed a historical performance and profit.
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1.1 BRIEF HISTORY OF THE ORGANIZATION
The history of MCB can be divided into four main Phases:
Development Phase
Nationalization Phase
Privatization Phase
Present Position of MCB
1.1.1 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.
1.1.2 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.
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1.1.3 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. Banks (Nationalization) (Second Amendment)
Ordinance 1991 was also promulgated to pave the way for privatization of banks in Pakistan. In
the wake of above amendments, 26% shares valuing Rs. 149.8 millions 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.
1.1.4 Present Position Of MCB

MCB Bank For Life
MCB Bank truly adheres to its philosophy i.e. "Bank for Life. The Bank is committed to
bringing about positivity in all aspects of life for its shareholders, customers & employees. As
lifes platform offers various elements of emotions, aspirations, expectations, needs and desires,
MCB Bank endeavors to help achieve a higher form of living: a living that becomes more
worthwhile when it is filled with love and compassion.
MCB Bank - The Largest Employer

MCB Bank is one of the largest employers in Pakistan with a strength of about 18,000
employees. The institution promotes talent which helps in healthy growth and employee
satisfaction as well.
Education For All

MCB Bank recognizes the role of youth in the future of Pakistan. It has, therefore, partnered with
leading educational institutes across the country to develop the personality and character of
Pakistans future generation. In this regard, the Bank has signed an agreement with LUMS for
the purpose of providing soft loans to its students. Each year, the Bank allocates special funds
that are utilized as sponsorships for various education based activities. During 2015, the Bank
partnered and sponsored activities for Old Ravians Association, Lahore University of
Management Sciences (LUMS), National University of Science & Technology (NUST), Institute
of Chartered Accountants of Pakistan (ICAP) and Carnival Fund Raising Event by British
Overseas Parent Teacher Association.
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Sports
During 2015, the Bank made sponsorships for Multan Golf Club, PAF Golf Club Islamabad,
Academy of Cricketing Excellence DHA EME, PAF AIR Headquarters (Unit), Islamabad Blind
Cricket Cup 2015 and PAF Golf Club Islamabad.
In addition to the above sponsorships were also made for Karachi Childrens Art Festival,
Director FIA Sindh Sponsorship for Culture Program & ASF Passing out Parade 2015.
Energy Conservation
MCB Bank considers national obligations to be its top priority. With energy crisis as one of the
major national concerns, MCB Bank believes to lead by example. To conserve energy as a policy
and for efficient use of natural resources, MCB Bank has initiated installation of solar systems
for its ATMs during2015.
The management is geared towards mitigating the impact of high energy cost by promoting
practices that aim to use energy smartly and economically.
For Energy Saving Measures, the Bank has planned to change-over of normal lighting sources
i.e. bulbs/tubes to LED lights which are energy efficient.
Using technological advancement, a BMS operational system is installed at MCB Bank Principal
Office building to have centralized and better control over various energy sources. A recent
initiative, the first of its kind was introduced at the newly built MCB Centre in Lahore, where
waste heat is being utilized for cogeneration.
Occupational Health and Safety

MCB Bank has always tried its best to provide a congenial working environment to its
employees, which includes Health & Safety aspects of its personnel. Bank has developed a
comprehensive Health, Safety & Environment Policy which is periodically being reviewed &
updated by the management. The policy reiterates maximum safety standards to be met by all
businesses, support functions and branches encouraging employees to promote the safety of their
colleagues and customers.
Emergency Lights, Fire Proof Cabinets, Fire Detection System, Fire & Burglary Alarm System,
Portable Fire Extinguishers, Safety-Anti Shatter Films, First Aid Kits, Regular Evacuation Drills,
Emergency Exit Doors, Fire Sprinkler System and Medical Health Insurance are some of the
measures through which Bank assures safety and security of its patrons.
Developing a constructive health and safety culture within the Bank is everyones responsibility;
however, MCB Bank has always taken initiatives such as on-site health checkups, seminars on
health & safety aspects, practical drills imparting emergency preparedness, reinforcement
messages upon epidemics & pandemic etc. to ensure that its staff is updated with procedures for
safeguarding life & Banks assets.
Contribution to National Exchequer

MCB Bank has the 2nd highest market capitalization in the banking industry. In 2015 the Bank
paid PKR 15.9 Billion as income tax to Government Treasury and contributed approx. PKR 8.5
Billion to the national exchequer as withholding tax agent under different provisions of Income
Tax Ordinance 2001.
Rural Development Program

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Agriculture finance business of the bank has embraced new and progressive outlook with the
shifting of focus from recovery to expansion during the year 2015. As a result of new initiatives,
the portfolio size has almost doubled and provision of credit to the farming community for
production of crops and mechanized farming has significantly increased. This is being ensured
by maintaining a separate Agriculture Credit Division and a team of agriculture marketing
officers posted at branches located in areas rich in agri-potential. Agri- officers approach farmers
for providing awareness and achieving the objective of financial inclusion. The response from
the farming community in meeting their commitments has been encouraging.
MCB Bank fully supports all Government and State Bank of Pakistans initiatives for promotion
and steady flow of credit to the farmers. This lends support to the national cause of food security
for the people of Pakistan and to exploits the potential of agriculture sector. Efforts are made to
enhance outreach to the growers through innovative lending including value chains, processing
units and contract financing mechanisms. MCB Bank will continue to support agriculture sector
as a matter of its policy by remaining an active partner supporting progressive farmers by
providing credit for all types of farm and non-farm activities.
OBJECTIVES OF MCB
The main objectives of MCB are to earn Profit by investing the money of depositors, who cant
utilize that money for getting required return. So the bank invests that money in the shape of
advances and shares, the return or interest
Charged on those advances with the depositors. Beside above-mentioned objectives the Bank
serves the society by facilitating them in the shape of advances to industries, agriculturists etc. it
also provides employment to people; it help in developing economy of the country. It also
provides facilities in doing business with other countries.
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Business Volume
Details
Total Assets
2013
443,615,904
2014
509,223,727
2015
567,552,613
Deposits
330,181,624
367,604,711
431,371,937
Advances-net
262,135,470
253,249,407
254,551,589
Investments-net
96,631,874
167,134,465
213,060,882
Shareholders Equity
52,244,865
61,075,932
488,348,404
Profit before Taxation
21,867,566
23,154,945
26,253,075
Profit after Taxation
15,374,600
15,495,297
16,873,175
Earning per Share (Rs.)
22.25
20.38
22.20
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Vision & Mission

Vision Statement
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future.
Mission Statement
We are a team of committed professionals, providing innovative and efficient financial solutions
to create and nurture long-term relationships with our customers. In doing so, we ensure that our
shareholders can invest with confidence in us.
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1.2Products & Services

MCB bank of Pakistan deals in all the schemes and the services of a bank in a
current scenario there are many sets of financial infrastructure with which
the MCB bank is leading in providing the services to its customers.
Consumer banking
The consumer portfolio, comprising the debit card, credit cards, auto loans, personal loans and
mortgages will be established phase by phase. However, we are confident that our strengths,
together with our largest network of online branches, a superior technology platform, a big
customer base and the Consumer Personal Banking Group (CPBG), will take the Banks
profitability to new heights.
Commercial banking
The MCB is also doing the commercial banking and its leading in this department
MCB offers retail product to its consumers. The MCB main focus to introduce the various
financing and investing products to its valuable clients, and contributes the steady growth to the
financial industry. The commercial and the retail banking offers the verity of asset and liability
based.
Deposit Products
Saving 365 Gold
The higher you save, the higher you go. MCB Savings 365 offers you a wide range of
attractive profit rates
Saving Extra
Grow with MCB Savings Xtra by saving more and earning greater profit. MCB Savings
Xtra offers you a wide range of attractive profit rates.
Smart Dollar Account
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Discover a suitable solution that helps make more of your dollar savings. MCB Smart
Dollar Account is a sensible way to maintain or grow your US Dollar deposit across USD
Current, Savings, or Term Deposits.
Saving Account
If youre living large and dont wish to lock your funds for lengthy periods, yet still want
to reap the profits from your success, your can have the best of both worlds with an MCB
Privilege Savings Account
Current Account
Low minimum balance requirements.
Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.
Lockers and other affordable transactional facilities.
Network of over a thousand branches, and hundreds of online branches, at convenient

locations.
Current Life Account
Free comprehensive life insurance coverage.
No joining fees on Debit/ATM Card.
50% discount of Debit Card Annual Fee at the time of renewal.
Low monthly average balance requirement.
On maintaining your Privilege relationship, all demand drafts, pay orders,

books, and ATM card are entirely free of cost.
Foreign Currency Account
Available in US Dollar, UK Pound Sterling, or Euro.
Unlimited transactions at your branch.
Free foreign currency cash deposit and withdrawal facility.
Profit paid into your account every six months.
Foreign Remittances facility available.
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cheque

Mahnama Khushali Scheme
A 5-year fixed Deposit Scheme, targeted to persons with small savings who would desire a
regular monthly return on their investment.
MCB Khushali Bachat Account

Salient Features
8% rate of return per annum.
Returns calculated on daily.
Average balance and paid half yearly.
Introduced first time in Pakistan.
The facility of helping account holders pays utility bills (electricity, telephone and gas) through
their account. No queues. No delays.
Loans Products
Auto Loan
Life in the fast lane can be really slow without a car. MCB makes it a breeze to
finance/lease your new/used car.
Features And Benefits
Option for financing or leasing
Financing tenures from 1 to 7 years
Option for new as well as used cars
Option for local as well as imported cars
Financing up to Rs.20 lacs
Option for early payment
Option for replacement loan
Minimum documents required (2 photographs and CNIC copy)
Up to 15% down payment only
Priority delivery on different vehicles
Business Sarmaya
Good cash flow is the key to any successful business. MCB Business Sarmaya offers running
finance facility against your house/ flat, insuring a steady cash flow for your business.
Pyara Ghar
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MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase,
Renovate or Construct your home the way you have always wanted. Having your own home was
never so easy .
Easy Personal Loan

MCB Easy Personal Loan provides you with the financial advantage to do things you've always
wanted to but never had the sufficient funds for. Take that much-needed holiday. Buy a car.
Refurnish your house. Purchase a new TV. Finance a better education for your children.
Instant Finance
With MCB instant Finance get a loan instantly at any MCB branch against liquid collateral at
competitive pricing
MCB RUPEE TRAVELERS CHEQUE

It is a safe and secure way to make payments nationwide. MCB Rupee Travelers Cheque, being
the market leader, is the most widely accepted way to pay cash for travel-related purposes MCB
Rupee Traveler's Cheques were first introduced in 1993 as safe cash for traveling and travel
related purposes.
MCB Online Services

ATMs
MCB has one of the nation's largest ATM networks with over 1000 ATMs and still growing.
MCB ATMs give you 24-hours convenience of cash withdrawal, mini-statement, utility bill
payment, funds transfer services and much more. With MCB Mobile ATM not only do we
provide you with world class banking service but we also provide convenience. Our innovative
mobile ATMs ensure that you are given service close to you.
Call Center
The state of the art MCB call center is the right choice to keep you in step with your ever hectic
schedule by providing you services relating to your account and Smart card at any point in time.
Theres no easier way to bank than the new enhanced 24/7 MCB Call Center, which blends
innovation and convenience to provide Banking Services that go beyond expectations. With
MCB Call Centre you can maintain your VISA credit & ATM/Debit cards, check your account
balances, confirm last 5 transactions, pay utility & mobile phone bills, top-up your mobile, pay
MCB Visa Credit Card bill from your MCB account, transfer money within your own accounts
in MCB and register complaint.
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Mobile Banking
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. No need to visit a branch or an ATM anymore, login to
www.mcbmobile.com using your mobile phone and start transacting.
Bill Payments
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone
bills or re-charge your prepaid mobile phone accounts anywhere, anytime with security and
peace of mind. MCB is the only bank that offers you 3 convenient options of making bill
payments to PTCL, SSGC, SNGPL, KESC, Mobilink, Supernet, IESCO,HESCO, and Ufone. So,
save your precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay.
Online Banking
MCB has a fast growing network of over 1,100 online branches in the country providing
customers real time online transaction facilities.
MCB CARDS
Smart Card
MCB Smart Card is the key that enables access to convenient banking services. Smart Card
allows you to manage your account, withdraw cash, transfer funds, pay utility and mobile bills,
recharge prepaid connections, register for mobile and internet banking services and much more.
The convenience and flexibility of MCB SmartCard will help you live a smarter life. It not only
helps you manage your expenses, but also eliminates undue interest on your day to day credit
card transactions. Your balance is always within your reach and you spend accordingly. MCB
now brings MCB SmartCard -a secure and convenient instrument of payment with unmatched
functionalities. It provides 24-hour direct access to your bank account.
Debit Card
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Now MCB brings a secure, convenient and quick payment facility that enables you to do
purchasing by using your existing MCB ATM / MCB Smart Card as a DEBIT CARD.
Category
Silver
Gold
Gold Plus
Platinum
ATM Withdrawal limit

10000
25000
50000
200000
Charges
580
870
1160
3400
Visa Credit Card
MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing
on providing, superior service, travel privileges & shopping pleasure. It also offers
comprehensive insurance & installment plans, reward points and SMS alerts that give a different
feel to the world of Credit Cards. These unique features include i-revolve, which makes variable
mark-up rate available to customers allowing them to repay at affordable rates.
MCB Lite Card
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We have demonetized digital payments and made them absolutely free of bank charges so that
you and your inner circle enjoy the benefits of being on the Mobile Payments Grid without the
worry of paying a charge every time you make a payment or access your money. You only pay an
annual fee and there are zero bank charges when you make payments and conduct transactions
using your Mobile Wallet or VISA card.
MCB AGRICULTURE PRODUCTS

MCB has been providing finance to the agriculture sector since 1973. With the help of our vast
branch network, specialized staff posted in the branches, multiple and diversified product range,
we cater to the financing requirements of the farming community spread throughout the country
and facilitate in achieving increased productivity.
Shadabi Plan
Shadabi Plan caters the financing needs for production activities on the farm which mainly
include seed, pesticides and fertilizers along with provisions for miscellaneous expenses like
payment of electricity & diesel bills of tubewells, maintenance expenses for tractors and the like
items as per list of Eligible items.
Khushali Scheme
Under Khushali Scheme loans/finances are allowed for farm/ non-farm credits which include
fixed investments/working capital requirements. Amount of finances sanctioned depend upon the
credit requirement and collateral.
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Tractor Finance Scheme
To boost up the mechanized farming in the country, Tractor Finance Scheme is introduced to
offer specialized services to farmers. Under this scheme, there is no requirement of minimum
land holding because of multipurpose use of tractor for agriculture cum commercial. However,
the repayment capacity and potential use of tractor will be evaluated at the time of loan
processing
Aabiari Scheme
Under the Aabiari scheme, financing facilities for tube well, other wells, irrigation systems of all
types including sprinklers are covered. The purpose is to facilitate the farmers in overcoming the
shortage of water for cultivation/plantation since water is essential requirement for crops.
Dairy & Meat Plan

The plan is aimed at promoting the Dairy sector & meat production in the country. The farmers
are extended financing facilities to purchase dairy animals for milk and for the establishment of
animal fattening stations to increase meat production on commercial line, thus enabling the
farmer to create more income.
Murghbani Scheme
Murghbani Scheme covers extensively all requirements of the poultry industry with focus on
facilitating the farmers. We offer financing facilities of all types of activities in the value chain
starting from establishment of poultry farms infrastructure to all requirements in the process till
the final out put including marketing of the same by the farmers. Value addition process by the
farmers for poultry processing is also covered under the scheme.
Baghbani
The scheme aims at facilitating the farmers engaged in horticulture by extending credit facilities
covering the entire range of related activities. The proposals are assessed keeping in view the
market potential and repayment capacity based on the cash flows of the activity. The farmers are
extended all type of credit facilities required to produce fruits & vegetables of better quality. The
repayment of the loan is as per farmer convenience or linked to crop cycle and timings of cash
flows. Facilities like running finance, working capital requirements, infrastructure development,
machinery & equipment, irrigation etc are all covered under this scheme.Progressive farmers are
specially encouraged.
VIRTUAL BANKING
MCB provides the convenience of banking via internet, whether at home, office or on travel, log
on to www.mcb.com.pk and enjoy 24 hour access to all your accounts at MCB for great number
of services such as Funds Transfer, Utility Bill Payments, Mobile Top-ups and much more.
Detailed Account Summary of all listed accounts.
Mini-statements of each of the listed accounts showing recent transaction history for that
account(s).
Statement-by-Period of each of the listed accounts, based on the period specified.
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Immediate or Scheduled Transfer of Funds between your own accounts, as well as to
third-party accounts setup as beneficiaries, maintaining accounts with MCB.
Scheduling of One-Time as well as Recurring Funds Transfers.
Payment of utility bills for registered Utility Companies.
Immediate or Scheduled Bills Payment. Scheduling of One-Time as well as Recurring
bill payments. Option for Full or Partial payment based on the payment conditions
specified by a particular Utility Company.
Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary to the
corporate employees, who maintain accounts with MCB.
Bulk Funds Transfer for Corporate Customers.
Cheque Book Request for any of your listed accounts.
Payment/Transfer Alerts for reminding, in advance, prior to the processing of specified
payments and transfers.
Islamic Banking
With the help of Shariah specialists, lawyers and professional commercial bankers, MCB
Islamic Banking provides Riba Free and Shariah Compliant solutions to various customer
segments in a growing number of cities.
Deposit Schemes
For customers who are looking for a deposit opportunity where they can purse their
funds and reap halal returns on it, MCB offer the following products:
Al-Makhraj Saving Account
Al-Makhraj Ianat Account
Al-Makhraj Term Deposit
Fund Based Facilities

MCB offers 3 broad Islamic fund based facilities:
Ijarah
Murabahah
Diminishing Musharika Equipment
Ijarah Products
MCBs Islamic Ijarah, analogous to the English term 'leasing, is based on the Ijarah wa
Iqtina concept which means the sale of the asset to the lessee after the Ijarah has
matured. Under this scheme, MCB will be the owner of the asset, and the customer
(lessee) will be given the asset to use for a certain period of time in return for monthly
rental payments.
MCB will give a separate unilateral undertaking that it will offer to sell the asset to the
customer (lessee) at the maturity of the Ijarah agreement at a price that may be equal to
the security deposit amount, hence the term Wa Iqtina
Types of Ijarah
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Car Ijarah
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Equipment Ijarah
Murabahah
It is a contract between a buyer and a seller under which the later first purchases the
goods at the request of the former i.e., customer and then sells it to same customer after
adding profit.
Murabah Sale Price = Cost + Expenses incurred + Agreed Profit
Musharika Equipment
It is a contract through which the bank and its client participate in the joint ownership of
a property. The share of the Bank is further divided into a number of units and it is agreed
that the client will purchase the banks share periodically, thus increasing his own share
until all the units of the bank are purchased by him so as to make the client the sole
owner of the property.
Privilege Banking
A first from a local bank, MCB Privilege through its dedicated, world class Privilege
Centers offers a higher level of personalized services, more rewarding in-branch
experiences and a wide array of deposit and investment products that are tailored to meet
the financial expectations for affluent clientele. As members of MCB Privilege,
customers experience unparalleled advantages that put them ahead of others. MCBs
dedicated Privilege Centers a wait to welcome you in Karachi, Lahore, Islamabad and
Multan, with plans to expand to more locations.
OTHER SERVICES
MCB MNET
MNET is an electronic inter-bank connectivity platform for online transactions on ATM

and other remote banking channels. It offers other Value Added Services that include a
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portfolio of e-banking and payment system products as well as management and day-today operations of the same. Members include 10 local and foreign financial institutions
enjoying ATM sharing and Value Added Services.
MCB Salary Club

A payroll solution designed to make life easy; it simplifies all the monthly payroll related
banking needs of employers and opens the door to a world of special offers for
employees. Salary Club provides the convenience of having an extensive range of
financial services available to employees at their place of work.
MCB Lockers
MCB Lockers are the best protection for your valuables. Lockers of different capacities
are available nationwide.
MCB SMS Banking

Banking at your fingertips SMS anytime to get information regarding balance, mini
statements and credit card related information once your card is linked.
MCB Full Day Banking

Enjoy the convenience of extended banking hours from 9am to 5pm, including Saturdays
at MCB FULL Day Banking branches across the country.
1.3General Profile MCB

MCB Bank Limited, with 68 years of experience as one of the leading banks in Pakistan, was
incorporated on July 9 in 1947. MCB Bank was nationalized along with other private banks in
1974 as part of Government of Pakistan's economic reform movement and was later privatized to
Nishat Group lead consortium in 1991.The Bank has journeyed a remarkable tenure of more than
half a century of competitively edged and well positioned heights of success by deploying
quality banking, heads on technological developments, professionally leading management and
prudent and ethical work methodologies.
Since privatization, MCB Bank's growth has been phenomenal. Today, MCB Bank in one of the
largest foreign banks in Sri Lanka;the first bank in Pakistan to launch Global Depository
Receipts (GDR) in 2006;strategic foreign partnership with Maybank of Malaysia which holds
20% shares in MCB Bank through its wholly owned subsidiary Mayban International Trust
(Labuan) Berhad since 2008;international indirect regional presence in Dubai (UAE), Bahrain,
Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic network of 1,257branches
and 1,073ATMs across Pakistan with a customer base of about 6million (accounts).
MCB Bank is reputed as one of the soundest Financial Institution and as one of the leading
Banks in Pakistan with a deposit base of PKR. 708 billion and total assets of PKR 1,016 billion
(as of 31/12/2015Audited Accounts).
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The Bank is versed as one of the oldest and most responsible Banks in Pakistan and has played
pivotal role in representing the country on global platforms while being one of the few
institutions that are recognised and traded in the international market.
The Bank has also been acknowledged though prestigious recognition and awards by
Euromoney, World Finance, MMT, Asia Money, SAFA (SAARC), The Asset Triple A, Finance
Asia, NFEH, CFA, Pakistan Centre of Philanthropy and The Asian Banker in the past 15 years.
Management Profiles
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Imran Maqbool
President & CEO
Laqa Sarwar
Group Head Assets Rehabilitation
Mohammad Nauman Chughtai

Group Head Risk Management
Mohammad Ramzan
Group Head Treasury & FX (Foreign Exchange)
Muhtashim Ashai
Group Head Corporate Finance & International Banking
Salman Zafar Siddiqi
Chief Financial Officer
Farid Ahmad
Group Head Compliance & Controls
Kamran Zafar Muggo
Group Head Operations
Nadeem Afzal
Head Retail Banking South
Usman Hassan
Group Head Human Resource Management
Zargham Khan Durrani
Head Retail Banking North
Syed Mudassar Hussain Naqvi
Group Head Legal Affairs
1.4 Organizational Structure Of MCB
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As MCB is a banking company listed in stock exchange therefore it follows all the legalities
which are imposed by concerned statutes Mr. Muhammad Mansha is Chairman & Chief
Executive of the company with a team of 10 directors and 1 vice chairman to help in the
business control and strategy making for the company.
Operational Management of the bank is being handled by a team of 10 professionals. This team
is also headed by Mr. Muhammad Mansha. The different operational departments are Consumer
Banking & IT division, financial division & Inter branch division, Banking operations division,
HR & Legal division, financial control & Audit division, Credit management division,
Commercial Banking division, Corporate Banking division, Treasury management & FX Group
and lastly Special Assets Management (SAM) Group.
For effective handling of branches, it has been categorized into three segments with different
people handling each category. These categories
Corporate Banking
Commercial Banking
Consumer Banking
Corporate Banking
These are branches which have an exposure of over Rs. 100 million. Usually includes
multinational & public sector companies.
Commercial Banking
The branches which has a credit exposure of less than Rs. 100 million but having a credit
portfolio of more than Rs. 20 million (excluding staff loans)
Usually branches in large markets and commercial areas come under this category.
Consumer Banking
These are the branches which have exposure up to Rs. 20 million and these include all the
branches which are neither corporate nor commercial branches.
1.5 DIVISIONS OF MCB

2016
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respective functions under the guidance and instructions of their respective heads.
Human Resource Division

All matters related to staff as pension, provident fund medical allowances, recruitment policy and
other staff matters are dealt here.
General Service Division
This division has been created to look after and maintain banks properties. The function of this
division is explained as under:
Purchase or lease branches premises.
Purchase/sale of furniture, fittings, banks vehicles etc.
Proper maintenance of banks assets.
Looking after communication system.
Business Development & Marketing Division

This division is established for the promotion of the business of the bank and sets the deposit
targets and then makes the schemes to achieve those targets. The functions of this division are
categorized as under:
Publicity department.
Branches opening/closing shifting.
Shares floatation/government deposits.
Consideration on complaints.
Utility bills collections.
Hajj arrangements.
New and innovative policies.
Finance & Treasury Division

Finance and treasury division deals with following functions:
Inward and outward remittances are recorded. Surplus funds are utilized (to purchase the shares
of other companies). Balance sheet of the bank is prepared. Public sector advances are released.
The safe custody of the securities is maintained. Declaration of the rates of return on PLS
Account.
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Industrial Credit Division
Industrial credit division was established in 1983 with the object of providing loans for different
industrial projects and to assist in economic Development of the country and also to invest
money for the purpose of earning profit.
International Division
International division deals with the supervision of the foreign exchange function of branches. It
solves the problems of the branches regarding international trade.
Central Account Division

The central accounts division is categorized by the functions as under:
Payment section (purchases and procurement and fringes benefits to executives).

Reconciliation.
Stationery.
Zakat and Usher section.
Audits And Inspection Division

Inspection division is established so as to detect any fraud forgery in the branches and sudden
visits to branches to keep them alert and attentive during banking hours.This department is
working for the improvement of auditing system and continuously searching the best possible
means of inspection for effective auditing. MCB uses the both methods i.e. internal audit and
external Audit.
Electronic And Data Processing Division

The function of this division is to record the business of the bank with computer programming,
and taking all the transactions and dealings of the bank recorded for the particular period.
Legal Affairs Division

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This division deals in following matters:
Handling on property documents sent to them by various circles and head office i.e.
loan documents etc.
Follow up, recovery cases and cases of fraud against employee. The cases against
bank are dealt too.
Give opinion on various accounts i.e. partnership, deceased and pension accounts. It
gives opinions on all-important legal matters.
Islamic Banking Division

It is established with the aim of introducing the Islamic Banking at branches in different cities.
Training Division
The training division is established, so as to train the newly employed staff and the promoted
staff to keep them efficient on service. At Presented their two training centers providing facilities
to new employees in the country which are situated in Karachi and Lahore.
Credit Management Division

This division generally looks after the credit policy of bank .It also maintains and approves the
advances and loans. It sets the rate of interest over the loan for specific period. It usually receives
applications from intending borrowers and submits the same application to higher authority for
approval.
MCB HIERARCHY
2016
Page 24
2016
Page 25
Departments Of MCB
MCB is one of the largest private banks of Pakistan. It offers a well-organized structure of
specialized services distributed among its various departments. This departmental segregation
provides MCB with more proper and professional approach and efficient means of performing
each service. Departmentalization makes the services more proficient and specialized procedures
for every job are used.
At each branch level the duties are divided into seven departments. There is a chief manager at
the top level of each branch. He is responsible for the overall performance and working of his
branch. The authority is then divided into two heads at the next level. There is a credit manager
who handles the credit department operations of the branch. The other one is the operations
manager who is responsible for all the rest of the departments. Each branch is divided into the
following departments:
Cash department
Clearing and collection department
Remittance department
Foreign exchange department
Credit department
The functions of each department and their operations are explained as follows:
Cash Department
The main function of this department is Payment and receipt. It collects and pays money to the
customers, on behalf of their account, through cheques or any other negotiable instruments.
There are three main functions of the cash department:
Payment
Clearing
Receipts
Payment
The cash department issues payments on request. The checks are received by the
department and after their clearance cash is issued to the check-holder.
The payment deals with that customer who withdraws money through cheques or any
other negotiable instruments. The cashier keeps the record of all payments in the register
book. At the end the payment and receipt cashier checks the balance and count the cash.
They verify that both register cash and the cash in hand are balance.
2016
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Clearing
Another main aspect is the clearance of checks. It includes verification of proper date, amount,
endorsements, such as issue stamp, clearing stamp and back-side stamp, and signature. After
proper verification of checks the payments are issued. At the issuance of cash the cash is debited
in the clients account.
Receipts
It is responsible for taking cash deposits from its clients who want to store or invest their surplus
reserves. In the receipt section, the cashier receives money from the customers on behalf of any
individual or the company. Most of the receipt goes through the accounts of the MCB.The cash
receipts are done in two forms:
Collection of money from customers in their accounts

Collection of utility bills
Inland Remittances
This means transfer of funds from one branch to another within the country through
following banking instruments
Demand Drafts (DDs)
Telegraphic / Telex Transfers (TTs) / Fax Press
Mail Transfers (MTs)
Mail Transfer
Demand Draft (DD):
Demand draft is another way of transfer of money from one bank to another bank. Unlike
pay order, a form is required to be filled for the issuance of the demand draft in which
necessary particulars about the beneficiary and the sender are given. The sender deposits
the amount of DD plus commission and other charges on the bank counter, from where he
is given a receipt and in accordance with this receipt he is issues a demand draft.
Telegraphic Transfer (TT)

With the changing requirements of customers, MCB has introduced a faster mode of
transfer of money. Like DD the sender is required to apply through a form in which he
will give all the necessary details about the sender and the beneficiary. The sender
deposits the amount of DD plus commission and other charges on the bank counter, from
where he is given a receipt, the remittance officials send a telegram to the concerned
branch and they make payment to the customer.
1.6 SWOT Analysis

SWOT ANALYSIS OF MCB
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The acronym SWOT stands for a firm is internal Strengths a
n d Wea k n e s s e s a n d i t s e x t e r n a l O p p o r t u n i t i e s a n d T h r e a t s . T h e p u r p o s e o f
s u c h analysis is to build on companys strengths in order to exploit opportunities
and counter threats and to correct companys weaknesses. SWOT analysis is based on the
assumption that if managers carefully review such strengths, weaknesses,
opportunities, and threats, a useful strategy for ensuring organizational success will
become evident. Strengths and weaknesses typically relate to the internal environment of an
organization, whereas opportunities and threats are brought about by the
externale n v i r o n m e n t o f a n o r g a n i z a t i o n . I n t h e f o l l o w i n g s e c t i o n b o t h
i n t e r n a l a n d external analyses of MCB are outlined.
Strengths
The main strength of the bank lies in its services. The other fact that contributes is approaching
to each segment of society .another positive concern that becomes the strength of the bank is its
innovation some others are as follows
Bank Reputation
MCB has made a status of a compact economic institutions over 60 years it focus on growth
done enlightening services quality investment in technology and people developing its extensive
branch network and evolving a large and stable deposits based.
Technical Management Skills

Different department of the MCB bank are developed with technical management skills different
issues are technically managed to avoid any disturbance and to run the business smoothly.
Customer Satisfaction
MCB bank by the customer satisfaction. it enables the customer thorough providing them
appropriate services and guiding them in their investment choices. customer always reliable and
believe MCB.MCB bank believes in building and keeping close relationship built on supreme
care and devotion itself as an compliment to MCB credit.
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Page 28
Promotion Effectiveness
MCB has developed a very encouraging promotional principle which create great loyalty and
motivations in employees towards the bank.
Team Based Approach

MCB is team of loyal determined and faithful experts who keep quality of services done
outstanding performance and presentation. In MCB bank there established a team determination
and accord among employees projects are accomplished through members connectively working
as team.
Continuous Improvement
MCB bank held diverse training programs which enables the members or staff upgrade their
knowledge .MCB has taken initiative to introduced new schemes regarding its product and
services .in this way it continuously made improvement in its employees and services.
Quest For Quality

MCB bank always try to give its customers quality product and services to keep them permanent
client of bank.it always uses different channels to improve the quality.
Employee Respect And Dignity

Every employee in the organization is given due respect and owner irrespective of its status and
level .employee feel proud to be a part of the organization.
Large Network Of Branches

2016
Page 29

MCB is function by the great net work of 100 plus online branches nationwide MCB determined
constantly to develop and enhanced its branch network day by day to confirm satisfy and
approachability to its customer.
Weakness
Some of weaknesses are as follow:
Less Productivity From Staff
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Page 30

The bank management is unable to utilize optimum productivity from the staff. The matter of
fact is that staff is skilled and experienced but that are not utilized properly to gain optimal
productivity.
Overburdened Staff
Staff is overburdened with unproductivity tasks from the management .employee should be used
when and where required to get maximum output from them. Right man for right job should be
used.
Late Sitting Trend

The most prominent fault in the banks management is that late sitting is becoming the trend of
the bank. Although, overtime or late sitting in necessary for the sake of meeting deadlines .but
late sitting without purpose is of no use.in MCB late sitting is now trend. If they utilize their
proper time then they do not need sit late in the evening.
Lack Of Organization Devotion

Organization loyalty has deficiency between employees. Employees dont pay attention to their
tasks as they think their job as permanent.
Attitude of seniors towards to juniors

Attitude of seniors has to change toward to juniors .some time seniors attitude are not
professional. Some seniors get the advantage of their seniority and they treat the juniors harshly
if they do not perform according to their will.
Lack of leadership qualities
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For the proper performance towards the achievement of organization goals a strong working
environment is necessary and to create this environment senior should play the role of leader.
They should understand the problems of their subordinates and try to solve their problems and
build a strong relationship that results in the achievement of organization goals efficiently and
effectively.
In some areas in the MCB unfortunately there is lack of leadership qualities in the seniors which
produce embarrassment among the juniors
Opportunities:
MCB bank may improve its rupee traveller cheques (RTCs) sales by through for new market
positions.it can familiarize debt card system or may adapt the current ATM cards into a whole
debt card. House financing sector can be targeted to maximize the profit.
MCB bank enter into contract with other banks to use each other ,s ATMs which will result in an
increased accessibility to MCB customers and customers of other banks as well as all around the
world settlements money are strictly observed so as the money paid may not fall in hands of thus
termed extremists for that all predictable money filtering done HUNDIES have been still there is
an opportunity for MCB to spread its branch network to several countries highlighting mostly on
introducing electronic fund transfer services.
Different banking courses can be offered for improving of banking staff
Management Skills
Different management skills courses should be introduced to employees in order to make them
familiar management abilities.
Update Courses
2016
Page 32

Various refresher courses should be conducted for the staff to keep them abreast.
Foreign Training
Staff should be sent for some foreign courses in order to known them for global progress in their
respective fields.
IT Courses
For staff it is necessary to have knowledge in this it world various IT courses conducted for the
staff.
2016
Page 33
Threats
Competitions Are Increasing Day By Day
Due to the increase in the number of conventional commercial banks, there is an increase in
competition. Also there is a lot of aggressive marketing by the competitor banks .this is also a
threat for MCB bank.
Increasing Interest Rates

Due to increases in interest rate against loans customer and investors cannot get loan from
bank .customer will feel unhappy and they are enable to take much loans which will decreases
the business of bank.
Instability Of Government Policies

Government policies changing day by day and government stability is not there.
Entrance Of Foreign Banks In Local Market

Increasing number of foreign bank is entering day by day in local market .which is increasing
competitive market of banking sector.
2016
Page 34

Weak Economic Condition Of Pakistan
Weak economic condition of Pakistan is producing hindrance in the way to progress because
people are not in good financial position to do business themselves or to finance it from the
banks.
Unregistered Business Concern

Some institutions are not registered so they are not bound to adapt all the policies of STATE
BANK OF PAKISATAN. They can make their loaning and inters policies to attract customers .
CH# 02 Internship Activities

Information About My Branch
I did my internship in MCB Bank Limited Railway Road Branch, Shakargarh.And some
important information about my branch which I observed are as follows:
Management Of Branch
Branch Manager
Manager Operation
Supervisor
General Banking Officer
2016
Rashid Mehmood
Muhammad Usman
Muhammad Shakeel
Muhammad Asim
Page 35

Credit Officer
Cashier
Cash Officer
Zaheer-Ul-Hassan
Sumaira Sarwar
Imran Khan
Farzana Zahoor
Shahzad Akhtar
Other General Information

The following table shows information about MCB Shakargarh Branch as on: june 30 2016.
Description
Amount
Current Deposits
Saving Deposits
Term Deposits
Total Deposits
Number Of Accounts
Total Income
Total Expenses
Net Profit
182.063m
605.004m
15.150m
788.699m
23000
26.714m
19.784m
6.929m
2016
Page 36

Work done by Me
In the MCB Bank Ltd. I really enjoyed working with the staff of Shakargarh and having a wish
to be employee of MCB. 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
the Shakargarh Branch on the request of the manager of that branch Rashid Mehmood , because
I learnt a lot in that branch.
During my internship training in the MCB as I early mentioned that I have worked in different
departments & seats and learnt the followings.
2016
Opening New Accounts Basics

New Accounts Opening Process
Documents Related Accounts Their Purpose Filling And Stamping
Deposit Slips And Cheques Filling
Entries Related Cheque Books And ATMs Card Manual
Online Funds Transfer Application
Clearing Process Detail (In General)
Demad Daft Payorder Call Deposit Receipt (In General)
Latter Of Credit (In General)
Working Related To Branch Manager
Working Related To Operational Manager
Working Related To Marketing Department
Working Related To Credit Department
Overall Banking (In General)
Compliance Of Accounts
Page 37

Working In My Selected Branch
I have completed my internship in Railway Road Shakargarh Branch, in a
learning environment. It consist small staff but have fully competitive and facilitated with
equipments like computers, printers, scanners etc. It is the only banking branch which operates
inside the town. No other banks facilitate the people of that area expect MCB which build a
strong relationship with its customers now. People of that area are satisfied from the bank
services. It also provides online transfer of funds facility.
MCB Shakargarh offer nonstop banking facility to their customers. This branch remains open to
Saturday. Timing of the branch Mon to Fri is 9am to 5pm sat 10am to 1pm. This branch has 2
ATM machines chief cashier and operational manager properly check machines during 12am to
1pm cash is insert in them. People are mostly use MCB atms machines because of its 24 hours
availability and proper working.
Briefly Departments Introduction

Accounts department/customer service center
Open new accounts.

Cheque and deposit slips filling.
Atm cheque book and lite card application.
Circulas maintainess.
Dakh receive and dispatch.
General Banking
Clearing (local & intercity)

Foreign rammitance payments.
Draft pay order and call deposit receipt issuance.
Cheque books and ATMs issuance.
Marketing Department
Provide information to customers.
Customer motivation (New To Bank).
Increase sale through sale products and take deposits.
Cash Department
2016
Cash deposit and cash withdrawal.

Utility bills collection.
Fees challan submission.
Prize bonds.
Page 38
Credit Department
2016
Credit cards facility.

Auto loans.
Housing finance.
Taractor finance.
Zarri loans.
Running finance.
Cash finance.
Page 39
CH #03 Summary
Future prospects of the organization

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

MCB bank is a leading commercial bank of Pakistan. The year 2016 is expected to pose a more
challenging environmental than a 2015. MCB is fully geared to not only maintain its growth
pattern but would also increase its share in the industry through the introduction of a series of
electronic based products, introduction of Consumer Financing to increase volumes and risk
diversification.
MCB bank is in procedure of lunching more innovative product which will help in MCB bank
growing more. As the size of mcb is very large and it comes under the five largest banks there
are lot probabilities of growth for MCB du to its strength.
Now MCB bank open new branches
Expand there business more and more
Introduce more electronic based products
MCB focus on outstanding services
Conclusion
MCB bank is an organization is well managed with organizational structure and efficient
employees due to its growth it has bright future in banking organizations.MCB
Follow Mission Statement
2016
Page 40

I have concluded that mcb is fully devoted, motivated and aimed to do exactly what is mentioned in its
mission statement.
Face The Challenge

MCB has the capability to face the challenges of present self-motivated word. MCB is making progress
by leaps and bounds. Innovation in collaboration with creative ideas is taking it to new heights, enabling
it to touch climax.
Co Operative Staff
Model town branch of MCB have very co operative Skilled and highly talented staff. The staff is keen to
provide best services to the customers in most efficient and effective way.
Relationship With Customers

MCB aims to make long term relationships with customers, therefore building profitable relationship with
them.
Orientation Towards Employees

MCB considers its employees the most important asset of the whole Organization. So in order to retain
this asset as such, MCBs management fully encourages and motivates their employees. Special packages,
rewards, bonuses etc are awarded to deserve employees, and this also motivates the other employees.
Good communication with there customers
Provide complete information to there customer
MCB have well organized environment
MCB do not allow any relaxation to there employees in working hours.
2016
Page 41
Behavior of the manager as well as staff is very good.
Finally I concluded that MCBs journey towards success of heights is going onIf it keeps on moving as
so, soon it will touch maximum fame...Even Beyond the imagination.
Suggestions
There should be decentralization in the structure of MCB bank.
Human Resourse Department must exist at at least every zonal branch.
Management should make the market survery time to time, after regular intervals to have
latest and authentic information about market and other
influencing factors
Marketing campaign should be more strong so that people could fully get aware about
and its services.
MCB
For opening account in bank, to pay or get services from MCB, there must be online
confirmation of NIC from NADRA.
In every branch, there must be separate refresh room for female employees
MCB comprises of more than 1200 branches but only 1000 have facility of ATM machines. The
remaining branches should also be facilitated with ATM machinesas soon as possible.
MCB should make more investment in Islamic banking and open at least one Islamic Banking
branch in every city of country.
2016
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2016
Page 43

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MCB Internship Report

MCB Internship Report

1.1.1 Devlopment Phase

1.1.2 Nationalization Phase

MCB Internship Report

1.1.4 Present Position Of MCB

MCB Bank - The Largest Employer

Education For All

MCB Internship Report

Occupational Health and Safety

Contribution to National Exchequer

Rural Development Program

MCB Internship Report

MCB Internship Report

Profit before Taxation

Profit after Taxation

Earning per Share (Rs.)

MCB Internship Report

Vision & Mission

MCB Internship Report

1.2Products & Services

Smart Dollar Account

MCB Internship Report

Low minimum balance requirements.

Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.

Lockers and other affordable transactional facilities.

Network of over a thousand branches, and hundreds of online branches, at convenient

Current Life Account

Free comprehensive life insurance coverage.

No joining fees on Debit/ATM Card.

50% discount of Debit Card Annual Fee at the time of renewal.

Low monthly average balance requirement.

On maintaining your Privilege relationship, all demand drafts, pay orders,

Foreign Currency Account

Available in US Dollar, UK Pound Sterling, or Euro.

Unlimited transactions at your branch.

Free foreign currency cash deposit and withdrawal facility.

Profit paid into your account every six months.

Foreign Remittances facility available.

MCB Internship Report

MCB Khushali Bachat Account

Features And Benefits

Option for financing or leasing

Financing tenures from 1 to 7 years

Option for new as well as used cars

Option for local as well as imported cars

Financing up to Rs.20 lacs

Option for early payment

Option for replacement loan

Minimum documents required (2 photographs and CNIC copy)

Up to 15% down payment only

Priority delivery on different vehicles

MCB Internship Report

Easy Personal Loan

MCB RUPEE TRAVELERS CHEQUE

MCB Online Services

MCB Internship Report

MCB Internship Report

ATM Withdrawal limit

Visa Credit Card

MCB Lite Card

MCB Internship Report

MCB AGRICULTURE PRODUCTS