CHAPTER –1

INTRODUCTION OF STUDY

1.1 BACKGROUND OF STUDY

T he economic growth of a country, among many other factors, depends

mainly on the strength of the financial institutions operating in a country.
The banking sector is one of the examples of financial institutions which can play
a very vital role in development of the overall economy of a country. In Pakistan
Banking sector has always shown remarkable results in the past and is carrying the
same trend. MCB is one of the leading banks in Pakistan and had played a key role
in the development of the country.
The opportunity has been provided to understand the banking operations during
eight weeks of internship in MCB Jamrud road branch Peshawar (1539). This is an
essential academic requirement of degree completion for the students of BBA in
the institute of management studies to undergo internship programmed of eight
weeks in any organization followed by comprehensive report writing.

In this report, different aspects of the MCB banking in general and MCB Jamrud
road branch Peshawar (1539) in particular have been covered.

1.2 PURPOSE OF STUDY

The main reason for conducting this study is that it is a mandatory requirement for
the award of bachelor’s degree in Business Administration at Institute of
Management Studies, Peshawar. The purpose of the study is to give a
comprehensive review of the MCB and to analyze its financial aspects. Besides
that, its purpose includes:

 To work in an organization for gaining practical experience.

 To develop interpersonal communication skill.

 To compare the theoretical knowledge with the actual practical work.

 To study operations of the banks, and to analyze the strength and

weaknesses of the organization and recommend solutions to the problems
uncovered in the process of conducting this study.

1.3 SCOPE OF WORK

The focus of this study is on the overall operations of MCB but specifically, the
scope of the study is confined to the MCB Jamrud Road Branch Peshawar (1539).
As the functions of a financial institution are much wider in scope so it was very
difficult to understand all these functions deeply in a given time span. Therefore,
the main focus is given to few aspects of every department.

1.4 LIMITATIONS OF STUDY

It is to admit that the study attempts only those aspects, which are closely relevant
to the purpose of the study. Facts and figures, which otherwise might be equally
important, but not having a direct bearing on the conclusions arrived at this study,
have been ignored.
The most important limitation from which the study suffers is the non-availability
of information in a manner required for analysis and the secrecy of the Bank.
Another important limitation of the study is time constraint. Two months period is
too less to study the operations of the Bank thoroughly.

1.5 RESEARCH METHODOLOGY

The methodology which I adopted to collect data for writing this report is
based on the both primary as well as secondary sources. The tools used for data
collection and analyses are given below:
 1.5.1 Primary sources:

 Personal observation

 Briefing with manager

 Interviews and discussion with staff

1.5.2 Secondary sources

 Annual reports

 Manuals, Brochures, News papers, Magazines and Journals.

 Websites

 Internship reports on MCB

 Different type of booklets of the Bank.

1.5.3 Analyses Tools:

Different financial techniques e.g. Ratio analyses, Trend analyses etc. were used to
analyze the financial data of the bank.

1.6 SCHEME OF STUDY

The report has been divided into five sections; the scheme of the report is as
follows:
Section 1: INTRODUCTION OF THE STUDY

 First chapter contains background, purpose, scope, limitation, methodology

and scheme of study.

Section 2: REVIEW

It contains four chapters.

 Second chapter is an introduction to MCB. It includes history of the bank

and establishment of MCB Jamrud road branch Peshawar (1539)
 Third chapter explains the organization structure of MCB in general and
that of MCB Jamrud road branch Peshawar (1539) in particular.

 Fourth chapter discusses the departments and activities of MCB Jamrud

road Peshawar branch (1539).

 Fifth chapter focuses on the product and services of MCB offered by every
branch and provide the reasons for some of the products and services that are not
offered by MCB Jamrud road branch Peshawar (1539).

Section 3: ANALYSIS

It contains three chapters:

 Sixth chapter provides financial analysis for MCB Jamrud road branch
Peshawar (1539) to evaluate the performance of the branch during past years.

 Seventh Chapter provides Horizontal/ Trend analyses and Ratio analysis for
MCB Pakistan to evaluate the overall financial position of MCB Pakistan.

 Eighth chapter provides SWOT Analysis for MCB bank.

Section 4: FINDINGS AND RECCOMMENDATIONS

 Ninth chapter summarizes the findings and recommendations based on the

analysis in section 3 and personal experience as an internee in Jamrud road branch
(1539).

Section 5: ACTION PLAN

 Tenth chapter deals with action plan to implement some of

recommendations, identified in the previous section.