INTERNSHIP REPORT ON

UBL

BY
ANUM WAHEED
ROLL NO:091631004
SESSION: 2016-2020
MANAGEMENT SCIENCES
GOVERNMENT POSTGRADUATE COLLEGE FOR WOMEN

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 INTERNSHIP REPORT
ON
UBL
ANUM WAHEED
ROLL NO: 091631004

DEPARTMENT OF MANAGEMENT SCIENCES

LAHORE COLLEGE FOR WOMEN UNIVERSITY, LAHORE

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3
 DECLARATION:

All praise to Almighty Allah, the most merciful and compassionate who give me skills and abilities
to complete this report successfully. I am grateful to my parents and teachers who have always
been a source of encouragement for me throughout my life and from my start to the end of this
report. I am thankful to all staff members of UBL Paki Thati Branch Lahore

I express my greatest gratitude to my kind hearted Supervisor Ms. Sobia, she was the person who
made me able to write this report. Her enthusiasm shows the way forward to me to achieve this
success and who keep me in high spirit through her appreciation. She helped me a lot each time I
went up to her.

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 DEDICATION:

I am grateful to Almighty Allah, the most gracious, and the most merciful for enabling me to
accomplish this task successfully. I feel much obliged to my parents, whose prayers and good
wishes have enabled me to reach at this stage. I am thankful to my teachers for the help, advice
and guidance during my studies. I would also like to thank the United Bank Limited, Branch
Manager Mr. Muhammad Aslam Gondal, Operation Manager Mr. Afzal Customer Relationship
Manager & CRO as well as the other staff of UBL Ltd, for their cooperation and help. I am also
thankful to all other people who contributed their time & efforts in this regards.

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 CONTENTS OF REPORT

Chapter 1

INTRODUCTION

 History and background------------------------------------------------------------------------ 14

 Business Philosophy----------------------------------------------------------------------------- 15
 Vision And Mission Statement----------------------------------------------------------------- 17
 Market Standing---------------------------------------------------------------------------------- 19

Chapter 2

MANAGEMENT SYSTEM

 Organizational chart--------------------------------------------------------------------------- 21
 Management hierarchy------------------------------------------------------------------------30
 Policy formation process---------------------------------------------------------------------- 31
 Managerial policies----------------------------------------------------------------------------- 34
 Credit rating------------------------------------------------------------------------------------- 35

CHAPTER 355

MARKETING MIX

 Product----------------------------------------------------------------------------------------- 37
 Price--------------------------------------------------------------------------------------------- 45
 Place--------------------------------------------------------------------------------------------- 46
 Promotion ------------------------------------------------------------------------------------- 47

CHAPTER 4

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FIANCIAL STATEMENT ANALYSIS

 Horizontal / trending analysis----------------------------------------------------------------- 56

 Vertical analysis--------------------------------------------------------------------------------- 61
 Financial ratio analysis------------------------------------------------------------------------ 67

CHAPTER 5

SWOT ANALYSIS

 Strength---------------------------------------------------------------------------------------- 74
 Weakness-------------------------------------------------------------------------------------- 76
 Opportunities---------------------------------------------------------------------------------- 78
 Threats------------------------------------------------------------------------------------------ 79

CHAPTER 6

TRAINING PROGRAM

 Divisional or departmental detail------------------------------------------------------------ 83

 Activities or items------------------------------------------------------------------------------ 90

CHAPTER 7

Problem and recommendations--------------------------------------------------------------------- 114

CHAPTER 8

List of Annexure--------------------------------------------------------------------------------------- 116

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 PREFACE:

This report is specially meant for the students of B.COM (Honor). It is concerned to a brief study
of the operations function, tasks and services of Muslim Commercial Bank of Pakistan. Banking
plays a very important role in the commerce and financial development of a country. Now a day’s
banks are using different modern technologies, which influence the managerial activities that why
I decided to do my internship training in the bank.

In preparation of this Report I have tried my best to provide all possible information about the
operations, functions and tasks of UBL in brief and Comprehensive form. It also includes a brief
department worked during internship. I have also tried my best to use simple and easy words.

EXECUTIVE SUMMARY
United bank limited is one of the largest bank privatized by the Government of Pakistan .It has
over 1300 branches across Pakistan and overseas. The bank is growing in the previous years as its
total assets are over 1.5 trillion in Pakistan rupees . I worked for six weeks in the pakki_Thati
branch and this report includes my learning and experience in the branch . Topics covered in this
report are; history of the bank, its values, organizational structure, department and their working,
products and services of the bank. In the end of report critical analysis of the bank, its SWOT and
then the conclusion is given. Recommendations are also made in the end of report.

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 Chapter No.1
INTRODUCTION OF UBL

Bank always play a central and very important role for the economic life of any country, that's
why bank are considered as the lifeblood of modern economy. Today, no one can deny the
important role of banking sector in the economy. They facilitates and expedite commerce &
trade and provide a variety of services that one can't imagine without banks. I have chosen the
United Bank Limited Fetehjang branch for my job report because it has all department a bank
could have. A bank is a financial institutions that concepts deposits from the public and create
credit.Leading activities can be performed either directly or indirectly through capital markets.
Due to their importance in the financial stability of the country, banks are highly educated in
most countries.Most nations have institutionalized a system known as fractional reserve
banking under which bank hold liquid assets equal to only a portion of their current liabilities.
United Bank was established in 1959.
First branch was establish at Karachi.
Union bank was merged as United bank.
Now it has more than 1300 branches(pak).
UBL has 15 overseas branches in( United States of America, Qatar, UAE Bahrain, and republic
of yemen.
UBL has good track record of fifty six years.
UBL has assets of over Rs.300 billion.
UBL as the large number of corporate customer all over Pakistan.
UBL as the wide banking system outside pakistan.
Its also as representatives offices in beijing china, Tehran, Iran and Almaty kazakhstan.
Its own subsideries in the UK( United National Bank Limited and in zurich, Switzerland.

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 HISTORY AND BACKGROUND OF UBL
United bank limited as a great history of excellence in.banking industry over a period of five seven
years. UBL began its journey of November 7th 1959 by inaugurating its first branch at 1.1.
Chandigarh; which was of course the start of new culture of service, of innovation and of financial
brilliance!

By the end of June 1960, shortly after 06 months of opening its doors to the public, UBL had
branches in:

karachi

Lahore

lyallpur

Dacca

Chittagong and Narayanganj

In 1963, UBL turned into the first bank of Pakistan who had a branch overseason William street
in London, United Kingdom . The first saving plans for school going children was launched in
early 1960s . UBL has also had the credit of establishing Pakistan's first staff college of employees
in1964, through the enthusiasm and motivation of its staff and the faith of its customers, which
continued to grow at a spectacular Pace. The tribute of introducing computer banking to Pakistan
(1967) is also belongs to UBL and in 1971, UBL yet again paved the way by introducing three
(03) online branches in Karachi. United Bank Limited also launched supervised credit & small
loan programs for small to medium size firms as well as agriculture & had made for itself, a strong
international presence for we had branches in four (04) continents. Throughout UBL history, it
has kept the tradition of innovation alive. In 1970, UBL launched Pakistans first credit card, the
UNICARD while in 1971, it introduced the Pak Rupees traveler cheques. Staying true to its roots,
UBL is the 1st bank to have Islamic banking division and also the first bank who introduced e-
banking facilities at Hajj. In the 1990`s the Govt. of Pakistan decided to revolutionize the banking
by creating a blueprint to privatize United Bank Limited.

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 Business Philosophy

A community institution that emphasizes service and values, Benchmark Bank knows its
customers by name and treats their business with a great deal of respect. We strive to exceed your
expectations by providing the best customer service in the business through tenure, friendly
bankers.

Personal relationships, quick decisions and convenience have been our hallmark for over half a
century.

The major philosophy of the company that can be deduced from the mission statement is the focus
on improving profitability by providing high quality financial services to its customers.

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 Managerial philosophy

Management philosophy is a kind of idea that is used to articulate a person’s judgment on best
management exercise. Philosophy is the study of the original nature of facts reality and survival
which is categorized under the academic authority.

UBL relies on strong, lasting relationship with its customers and on its reputation for stability and
security for its continued process. Its philosophy has been to adopt steady course. It has pursued
small, less risky loans to consumers and business, and shied away from risky loans. UBL extends
its philosophy to its technology strategy but not perusing technology for technology’s sake.
However, UBL learns from the mistakes of others especially in ‘’ consumer banking’’. We let
others get in first, take the hit, and find out the flows. Said, UBL officials- and has installed
efficient and effective system for processing and delivering information. The board of directors
has the authority in guiding Bank affairs and in making general policies. Some directors are the
personnel of the UBL Bank and others are successful business person and executives of other
major organization. Eight members are included in board of directors.

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 VISION & MISSION

VISION STATEMENT

To be a world class bank. Where You Come First. To be a world class bank dedicated to
excellence, and to surpass the highest expectations of our customers and all other stakeholders.

MISSION STATEMENT

To develop & deliver the most innovative products, manage customer experience, deliver quality
service that contributes to Brand strength, establishes a competitive advantage and enhances
profitability, thus providing value to the stakeholders of the bank.

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Significance of Mission& Vision Statement

Both the vision and mission statements play an important role on the organization. Below is a
look at these roles:

1. The vision& mission statements define the purpose of the organization and instill a sense of
belonging and identity to the employees. This motivates them to work harder in order to achieve
success.

2. The mission statement acts as a ‘’North Star’’, where it provides the direction that is to be
followed by the organization while the vision statement provides the goal (or the destination) to
be reached by following this direction.

3. The vision& mission statements help to properly align the resources of an organization towards
achieving a successful future.

4. The mission statement provides the organization with a clear and effective guide for making
decisions, while the vision statement ensures that all the decision made are properly aligned with
what the organization hopes to achieve?

5. The vision& mission statements provide a focal point that helps to align everyone with the
organization, thus ensuring that everyone is working towards a single purpose. This helps to
increase efficiency and productivity in the organization.

MARKET STANDING
Market standing is about the total shares, total sales of the product and about profit in present days

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 CHAPTER NO.2

MANAGEMENT SYSTEM:

As UBL is a banking company listed in stock exchange therefore it flows at the

legalities which are compose by concerned statue Mr. MUHMMAD ANWAR
PERWAS is chairman & chief executive of the company with the team of the
directors and vice chairman in the business control and strategy making for the
company.

Branch Manager (BM) MUHAMMAD ASLAM GONDAL

Operational manager SAJJAD ALI

Credit manager MUHAMMAD AFZAL

GBO/ Remittance RAGHIB TARIQUE

Chief teller MUHAMMAD ATHAR

TSO MUHAMMAD RAHEEL

CUSTOMER SERVICE TELLER MAM ASIA

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 ORGANIZATIONAL CHART

An organizational chart is a diagram that outlines the internal structure of a company. An

organizational chart is the most visual depiction of how an organization is structured. It outlines
the roles, responsibilities and relationships between individuals within an organization.

Branch Manager
The Branch Manager of the bank Muhammad Aslam Gondal which is responsible for
all the functions of a branch, such as hiring employees, overseeing the approval of loans and lines
of credit marketing building a rapport with the community to attract business and assisting with
customer relations.

Operational Manager

Operational Manager of the Bank is s Sajjad Ali Operational Manager plays a leading role in
managing both row materials and personnel. Oversight of inventory, purchasing and supplies is
central to the job. Human resources takes include determining needs, hiring employees, overseeing
assignment of employees and planning staff development.

Account Opening

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 Account opening of the bank is Muhammad Afzal. It inform customers of
procedures and requirements for opening different types of accounts and applying for services.
Compile information, enter account information into the computer and create necessary forms and/
or documents to open the account.

Clearing

The clearing of the bank is on the hand of sir Afzal. Clearing is the procedure by which an
organization acts as an intermediary, and assumes the role of a buyer and seller in a transaction, to
reconcile orders between transacting parties. Clearing is necessary for the matching of all buy and
sell orders in the markets.

Remittance

Remittance of the bank is Sir Afzal. The role of remittance is important towards the economic
regeneration of the country by helping drive the economic engine through cash circulation and
large transfers that are used for goods importation, investment and reconstruction, on the hand,
and through small amounts of remittance.

Cash Supervisor

Cash supervisor of the bank is Miss Ayesha . Duties may include management functions,
such as purchasing, budgeting, accounting, and personnel work, in addition to supervisory duties.

Teller

Teller of the bank is Sir Hashir . Provides account services to customers by receiving deposits
and loan payments; checking checks; issuing savings withdrawals; recording night and mail
deposits; selling cashier’s checks, traveler’s checks, and series bonds; answering questions in
person or an telephone; referring to other bank services.

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 ORGANIZATIONAL STRUCTURE

Head Office

Provisional Head Quarters

Zonal Office

Hub Branches

Branches
2.1. Main Offices:

2.1.1 HEAD OFFICE:

The Bank’s registered office and principal office is situated at State Life Building No.1.I.I
Chudrigar Road Karachi.

2.1.2. BRANCHES:
Domestic Branches 1079
Overseas Branches 17

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2.1.3. DOMESTIC NETWORK:
________________________________________________________________________
Domestic Network Branches
________________________________________________________________________
Azad Kashmir 71
Baluchistan 41
N.W.F.P 163
Punjab 584
Sindh 220
Total 1079

2.1.4. PROVISIONAL HEADQUARTERS:

________________________________________________________________________
Province Region (City)
________________________________________________________________________
Baluchistan Quetta
N.W.F.P Peshawar
Punjab Lahore
Sindh Karachi

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2.1.5. OVERSEAS NETWORK:
________________________________________________________________________
HUB Name Branches
_________________________________________________________________________
United Arab Emirates 9
Bahrain 3
Yemen 2
Qatar 1
United States of America 1
Export Processing Zone, Karachi 1
_________________________________________________________________________________

Total Branches 17
_________________________________________________________________________________

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 Corporate profile

Board of Directors:
CHAIRMAN
H.H Sheikh Nahayan Mabarak Al Nahayan
DEPUTY CHAIRMAN
Mr .Muhammad Anwar Pervez, OBE, HPK
PRESIDENT & CEO
Atif R. Bokhari
DIRECTOR
Zameer M. Choudrey
DIRECTOR
Omar Z. AI Askari
DIRECTOR
Muhammad Tehsin Khan Iqbal
DIRECTOR
Ahmad Waqar
DIRECTOR
Javwd Sadiq Malik
DIVISION OF UBL`S OFFICE

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Legal Advisor
M/s. Khalid Anwar & Co.

Advocates & Legal Consultants

Audit Committee
Tariq Rafi (Non-Executive Director) Chairman

Aftab Ahmad Khan (Non-Executive Director)

Dato’ Seri Ismail Shahudin (Non-Executive Director)

Ahmad Alman Aslam (Non-Executive Director)

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 MANAGEMENT HIERARCHY

BRANCH
MANAGER

OPERATION ADVANCE ACCOUNTS

MANAGER FINANCING

REMITTANCE CLEARING CASH

BILL RECEIVING

Branch Manager Muhammad Aslam Gondal

Operation Manager Sir Sajjad
Advance Finance Mam Ayesha
Account and Remittance Sir Afzal
Clearing Sir Afzal
Cash Sir Hashir
Bill Receiving Sir Hashir

POLICY FORMATION PROCESS

Policies:

RISK MANAGEMENT

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 The bank is primarily subject to interest rate, credit and currency risks. The bank has
designated and implemented a frame work of controls to identify, monitor and manage those risks
are as follow

UBL’s Competitive Strategies

To be competitive the Bank has further reinforced its position in the consumer
banking area by streamlining and re-launching the consumer financing products and introducing
more convenience based solutions. With the re-launch of auto finance and house finance products,
the Bank pushed the products with full thrust. The Bank has also launched a running finance
facility against mortgage of property.

Technology continued to play an important role in improving and expanding product

offerings. The Bank introduced more IT based products to cater to the changing lifestyles and
needs of the customers.

UBL Virtual-Internet Banking was launched with wide ranging banking solutions
the customers ranging from individual to corporate customers and it has become the most preferred
Internet banking solution in the country solution in the country.

UBL also had the privilege of being the first Bank in Pakistan to launch the
comprehensive bill payment facility through it alternate delivery channels which include Internet
Banking, ATM’s and UBL Call Centre, currently with six payment partners. Similarly, the Bank
also took incentives

Investments policy

UBL also invest its money other than the advances, while investing in the securities
UBLs the following policy to invest in

a) Held for trading

b) Held to maturity

In the light SBP regulations quoted securities are shown at market values and any changes arising
are taken to profit and loss account only upon actual realization.
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Internship policy:

UBL is the bank of the employee that serves all type of customers and makes its policies
according to their needs and demands here the UBL has the policy to serve the students that is six
weeks internship.

UBL has no gender bias

For the selection of the employee UBL focus on merit rather than gender. There is no any
kind of discrimination on the basis of male or female, a person having the skills 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 UBL 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

UBL has the program through which all the employees of the bank get proper training
and then work for the achieving the goals.

Revenue Recognition

recognized its revenue on accrual basis. For example if UBL invest in some different securities
and entitled for the profit yet not received, the profit is recorded as when it earned not when it
received.

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 MANAGERIAL POLICIES

Managers handle their staff at branch level. The duties assigned to them are to keep the monthly
deposits up to the mark opening of new accounts has to keep their stable or increasing. They are
responsible for assigning leaves to their staff on yearly basis or even handle emergency insurance.
UBL has rule of working 9 to 5 daily. Their staff has alternated off on Saturdays. The manager has

26
to develop a leave program so as this routine does not disturbs any customer. They have to handle
the problems of disappointed or angry customer and convenience the best service UBL provides.

The receive specific targets which they have to achieve with in the given time which results in
bonuses distributed among the staff and manager releases by the HO.

Human Resource Policies

Recruitment and selection

 HR will be circulating the format to access and project the hiring needs.
 Prescribed formats will be circulated to the business functions.
 HR Relationship Manager will discuss the present and future organizational needs
businesses in line with overall business plans.
 HR Relationship Manager will provide the business the overall employment cost analysis
with overall structure of the particular group.
 Business will submit their Headcount supported by their business plans.
 Subsequent to their submission, Headcount will be reviewed by the financial control group
and President.
 It is responsibility of HR to pre-screen and short-list the applicant arranged interviews with
concern Department/Division. The recommendation of the Manager who interviews the
Candidate.

CREDIT RATING
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A credit rating is an evaluation of the credit risk of a prospective debtor (an individual,
business, company or a government), predicting their ability to pay back the debt, and an implicit
forecast of the likelihood of the debtor defaulting. The credit rating represents an evaluation of a
credit rating agency of the qualitative and quantitative information for the prospective debtor,
including information provided by the prospective debtor and other non-public information
obtained by the credit rating agency's analysts.

A credit reporting (or credit score) – in distinction to a credit rating – is a numeric evaluation of
an individual's credit worthiness, which is done by a credit bureau or consumer credit reporting
agency.

Contents

 1 Sovereign credit ratings

 2 Short- and long-term ratings
 3 Corporate credit ratings
 4 See also
 5 References
 6 External links

Sovereign credit ratings

A sovereign credit rating is the credit rating of a sovereign entity, such as a national government.
The sovereign credit rating indicates the risk level of the investing environment of a country and
is used by investors when looking to invest in particular jurisdictions, and also takes into account
political risk.

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 The "country risk rankings" table shows the ten least-risky countries for investment as of
January 2018. Ratings are further broken down into components including political risk,
economic risk. Euromoney's bi-annual country risk index monitors the political and economic
stability of 185 sovereign countries. Results focus foremost on economics, specifically
sovereign default risk or payment default risk for exporters (also known as a trade credit risk).

A. M. Best defines "country risk" as the risk that country-specific factors could adversely
affect an insurer's ability to meet its financial obligations.

Short- and long-term ratings

A rating expresses the likelihood that the rated party will go into default within a given time
horizon. In general, a time horizon of one year or under is considered short term, and anything
above that is considered long term. In the past institutional investors preferred to consider long-
term ratings. Nowadays, short-term ratings are commonly used.

Corporate credit ratings

Main article: Bond credit rating

Credit ratings can address a corporation's financial instruments i.e. debt security such as a bond, but also
the corporations itself. Ratings are assigned by credit rating agencies, the largest of which are Standard &
Poor's, Moody's and Fitch Ratings. They use letter designations such as A, B, C. Higher grades are intended
to represent a lower probability of default.

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 CHAPTER NO.3

MARKETIG MIX

UBL bank is using different kind of marketing Strategies to expand their business. UBL
bank is using marketing mix strategic for promotion. It is a set of marketing tools which is
used to find out the marketing objectives in the target market.
These tools are classified into five factors named as

Product
Price
Place
Promotion
Publicity

Products of UBL

1. UBL Rupee Traveler Cheques

UBL Rupee Travelers Cheque is as good as cash, in-fact better. Better because with Rupee
Travelers Cheque you have the power to purchase and a feeling of security that should u lose
them, you will get a refund.

UBL Rupee Travelers Cheques are accepted at major shops, travel agents, hotels business
establishment and UBL branches all over Pakistan. You don’t have to be an UBL account holder
to buy the Rupee Traveler Cheques. Anybody can purchase them. It’s a safe and convenient way
to conduct everyday business. At a time when thefts and robberies are on the increase, you are
better off carrying Traveler Cheques rather than money.

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 2. 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.

3. UBL 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.

4. Capital Growth Certificate Scheme

For long term depositor under which the amount deposited almost doubles at the end of 5 years.
For the scheme, the minimum amount of deposits is Rs.10000 while there is no maximum limit.
In case of premature encashment of the certificates, the depositor will profit at the same rates as
that of PL Saving Account.

5. Fund Management Scheme

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The scheme is offered to corporate and customers and is aimed at providing better rate of return
up to 15% per annum. One of the objectives of the scheme is to develop secondary market for
Government Securities.

6. Fax Press

This product was first of its kind introduced by using modem technology of the Fax Machine. It
facilitates speedy transfer of from one city to another, within an organization.

7. Utility Bill Collection

With the aim of extending this service to wider range of customers, the number of UBL branches
collecting Utility Bills more than 900.

8. UBL Mobile Banking

At the forefront of technological excellence, UBL proudly introduces UBL MOBILE BANKING.
The convenience of accessing balance information and mini statements whenever want or
wherever may need them, with comfort and peace of mind.

UBL MOBILE BANKING service is available to all UBL ATM cardholders, 24 hours- 365 days.

MOBILE BANKING AT A GLANCE

UBL Mobile Banking gives easy and quick access(s) at a time find convenient, Including all
holidays

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  With UBL Mobile Banking

Check balance

View the last 4 transactions of your UBL account(s).

 Banking at fingertips

Dial in anytime to get information regarding balance and mini statements.

9. UBL Islamic Banking Services

Islamic banking services through exclusive units/branches offering range of liability and asset
based Sharia complaint products like Musharika, Murabaha, Ijara and Istasana.

10. UBL Car Cash

Car financing and leasing at competitive rates with flexible options Car cash finances both semi-
commercial and non-commercials vehicles for personal and business use.

11.UBL Locker

Best protection for valuable things. Lockers of different capacities are available in the branches
nut only for valued customers.

12. UBL Master Card

The future of money:

33
Since the beginning of time, people have tried to find more convenient ways to pay, from gold to
paper money and checks. Today, money is moving away from distinct hard currencies and towards
universal payment products that transcend national borders, time zones, and with the Internet, even
physical space.

 Currency Advance Facilities

Available in Pakistan and worldwide with a network of over1000 branches and a team of
dedicated professionals, UBL in Pakistan’s largest private sector commercial bank. Our Consumer
Banking provides customers with innovative saving schemes, products and services. Our ATM
network is the largest in Pakistan and our Pak Rupee Travelers Cheques are market leaders. We
were the first to introduce the photo card with the introduction of the MasterCard.

Our Corporate Banking ensures assistance from a dedicated team of professional financial advisors
for underwriting, project finance or corporate advisory services.

When it comes to banking practices, you can depend on us. We’ve been around for over fifty years.

13. UBL Smart Card

UBL now brings you UBL Smart Card, A secure and convenient instruments of payment with
unmatched functionalities. It provides 24- hour direct access to your bank account.

The convenient and flexibility of UBL Smart Card will help live a smarter life. It not only helps
you manage your expenses, but also avoids undue interest on your day to day credit card
transactions. Your balance is always within your reach and you spend accordingly.

UBL is the only bank to introduce a debit card that gives the option to choose from domestic and
international card for local and global usage respectively.

14. Remit Express

Fastest to Pakistan Anywhere in Pakistan

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Fastest way of getting your money across Pakistan, Remit Express offers low cost remittance from
U.A.E and Saudi Arabia. Your relatives, friends or business associates receive drafts within 72
hours. MCB Remit Express has been specifically designed to meet the need of the expatriate
Pakistani community residing in the Gulf countries.

15. UBL Pyara Ghar

UBL gives dreams home at the lowest and best possible mark-up rates. You can choose either one
of our two mark-up rate options, Fixed or variable.

Early repayment option tailor-made to allow making partial prepayments at dates that suit.

16. UBL Virtual

UBL Virtual provides the continence of banking on internet. Whether we are at home, in office or
doing travel Log on at www.ubl.com.pk and enjoy 24 hours access of all your accounts for the
largest array of service.

17. UBL Business Sarmaya

UBL Business Sarmaya is a running finance against your residential property. It offers running
finance up to 20 million with low markup.

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 18. UBL Car 4 U

UBL car 4 u auto finance move that gets you not only a car of your own choice but leads you best
in life. It is affordable with competitive markup, flexible conditioning and easy processing and
above no hidden cost.

Newly Lunched Product

Now-a-days, UBL is offering a new product called as ‘’ SARMAYA MEHFOOZ FUND’. This
fund is valid up-till 17th April 2010. 9.5% profit ratio has been allocated for this fund this is a one
year and 1 month investment (13 month). And no tax would be deducted on this investment. For-
example if a person deposited 1000000 than he will get Rs.95000 profit + his principle amount
after completing 13 months.

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 PRICE OF UBL BANK

It is a critical marketing tool. It present that what customer have to pay against services received.
It is the only element that creates revenue for UBL bank. Sometime pricing strategy is also used
to set the price. In the start prices were low but after creating the image UBL bank has raised their
charges. There come some objectives in selling the price some of objectives are maximization
profit, obtaining market share, rate of return on investment etc.

The prices of the following products are given below:

Products Interest Rate

UBL Khushali Bachat Account 8% rate of return per annum

Saving Account 8.25%

Fund Management Scheme 15% per annum

Sarmaya Mehfooz Fund 9.5%

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 Place of MCB Bank

Place is used in since of distribution channel and distribution mean that where the seller makes his
products available to the buyers. UBL bank is using to important channels of distribution.

 Bank Branches

Bank Branches

Bank branches are the most important channel of distribution for the bank. Through these
branches UBL is easily serving potential customers. The largest portion of business is being
generated from these branches. The bank has also started Saturday banking in all big cities with
ATN network.

The location of the bank plays a vital role in making its operations profitable. If the bank is located
in some business center then it will be very easy for it to attract people as its customers. Therefore
UBL has most of its branches at places where it can reach its targets customer easily. The branch
network of UBL is given as follows:

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 Punjab 584

Sindh 220

NWFP 163

Azad Kashmir 71

Balochistan 41

Domestic 1079

Overseas 17

Total 1079

PROMOTION OF MCB BANK

UBL bank used this tool for different activities. By using different ways UBL is targeting the
customers to use their product or services and product.

 Market penetration

By using this strategy UBL bank is increasing the sale with existing product in the existing
market by means of increased and more effective positioning and targeting, delivery and promotional
activities.

Some bank strategies are:

 Selling pressent services to new customers

 Selling more services to present customers

39
 Market development

UBL is using this strategy to increase sale in new markets with existing products and
services.

 Product development

This strategy is used to introduce the new product the new product or services in the
existing market.

 Diversification

It is also growth strategy and it is most difficult growth strategy for bank. In this
strategy the bank focuses on to grow new services and new markets.

40
 CHAPTER NO.4

FINANCIAL STATEMENT ANALYSIS

Financial analysis of the MCB BANK from 2014 to 2017

 Vertical Analysis
 Horizontal Analysis

41
  Ratio Analysis

Financial Statement Analysis is the process of analyzing a company’s financial statements

for decision-making purposes and to understand the overall health of an organization. Financial
statements record financial data, which must be evaluated through financial statement analysis to
become more useful to investors, shareholders, managers, and other interested parties. Financial
analysis involves the use of various financial statements. These statements do several things. First
the balance sheet and the second is income statement. The balance sheet summarizes the assets,
liabilities, and owner’s equity of a business at a point in time, while the income statement
summarizes revenues and expenses of a firm over a particular period of time.

Balance Sheet
Statement of financial position for 5 years:
As At December31, 2013-14-15-16-17

Particulars 2017 2016 2015 2014 2013

Rs.000 Rs.000 Rs.000 Rs.000 Rs.000

ASSETS
Cash balances 109,462,902 75,732,785 61,265,859 46,753,868 59,946,218
with treasury
banks
Balanced with 7,348,882 7,201,459 10,058,662 3,063,774 1,594,660
other banks
Lending to 5,273,524 2,809,752 2,867,744 1,418,181 1,224,638
financial
institution
Investment -net 660,070,246 556,770,384 566,564,304 516,898,299 453,808,345
Advances-net 500,965,801 364,470,288 316,771,355 304,000,563 248,521,792
Operating fixed 42,565,448 35,225,805 31,536,887 31,583,646 29,005,931
assets
Deferred tax
assets-net
Other assets-net 4774,3647 34,480,303 31,915,210 37,888,155 27,176,720

42
Total assets 1,373,430,450 1,076,690,236 1,020,980,021 941,606,486 821,278,304
Liabilities
Bills payable 22,994,877 13,291,328 11,975,237 16,627,700 10,138,726
Borrowings 140,462,138 77,438,993 118,615,031 59,776,578 38,660,405
Deposits & other 1,001,146,162 795,689,546 706,239,715 6881,270,091 632,309,094
A/C
Sub-ordinated 3,892,578 -
loan
Liabilities
against assets - - -
subject to
finance lease
Deferred for 5,661,073 12,889,649 12,482,287 10,735,841 4,500,293
liabilities
Other liabilities 42,730,541 31,420,650 29,491,131 29,927,070 20,206,991
Total liabilities 1,216,887,369 930,730,156 878,803,401 805,337,280 705,815,509
Net assets 156,543,081 145,960,070 142,176,620 136,269,206 115,462,795
Equity
Share Capital 11,850,600 11,130,307 11,130,307 11,130,307 10,118,461

Reserves 71,027,912 53,512,633 51,491,384 49,200,045 47,008,936

Un-appropriate 55,221,069 55,509,013 52,631,368 49,765,031 43,038,094
profit
Total equity 138,099,581 120,151,953 115,253,059 110,095,383 100,165,491
attributable to
the equity
holders to the
bank
Non-controlling 580,656, 509,331 512,076 511,960 489,671
interest
Total 138,680,237 120,661,284 115,785,135 110,607,343 100,655,162
Surplus on 17,862,844 25,298,786 26,411,485 25,661,863 14,807,633
revaluation of
assets
Contingencies&
commitments 156,543,081 145,960,070 142.176,620 136,269,206 115,462,795

43
Balance sheet:

The accounting balance sheet is one of the major financial statements used by accountants and
business owners. (The order major financial statements are the income statement, statement of
cash flows, and statement of stockholders’ equity) The balance sheet is also referred to as the
statement of financial position.

The balance sheet presents a company’s financial position at the end of a specified date. Some
describe the balance sheet as a “snapshot” of the company’s financial position at a point (a moment
or an instant) in time. For example, the amounts reported on balance sheet dated December 31,
2017 reflect that instant when all the transitions through December 31 have been recorded.

Because the balance sheet informs that reader of a company’s financial position as of one moment
in time, it allows someone-like a creditor-to see what a company owns as well as what it owes to
other parties as of the date indicated in the heading. This is valuable information to the banker who
wants to determine whether or not a company qualifies for additional credit or loans. Others who
would be interested in the balance sheet include current investor, potential investor, company
management, suppliers, some customers, competitors, government agencies, and labor unions.

44
 INCOME STATEMENT:
MCB BANK
FOR THE YEAR

2017 2016 2015 2014 2013

Rs.000 Rs.000 Rs.000 Rs.000 Rs.000

Mark- 76,189,800 69,014,090 80,840,506 77,411,189 65,186,388

up/return/interest
earned

Mark- 32,6499,614 24,167,340 31,171,853 33,770,144 27,219,433

up/return/interest
expensed
Net mark-up/interest 43,540,186 44,846,750 49,668,653 46,641,045 37,966,955
income
Provision against non- (2,894,502) 1,204,892 (285,965) (1,093,745) (2,828,783)
performing loans and
advances-net
Provision for diminution 3,570,201 (647,356) 831,369 (847,151) (6,834)
in the value of
investments-net
Bad Debs written of - 20 67 `18 14
directly
675,713 557,554 545,471 (1,940,876) (2,835,617)

Non mark-up/interest 42,864,473 44,289,196 49,123,182 45,581,921 40,802,572

income after provision

Non mark-up/interest
income:

Fee, commission and 10,038,881 8,244,999 8,463,171 7,775,318 7,204,266

brokerage income
Dividend income 714,207 729,708 861,381 39,918 137,512
Income from dealing in 1.344,380 895,422 771,686 1,443,458 920,008
foreign currencies

45
Gain on sale and 4,666,486 5,498,958 4,343,994 1,715,235 2,165,381
redemption of securities-
net
Unrealized loss on (272) 5,614 577 27,324 21,787
revaluation of
investments classified as
held for trading
Other income 658,437 540,644 2,088,120 1,570,088 450,879
Total non- mark- 18,340,378 16,308,745 16,528,929 13,261,131 11,476,528
up/interest income
Non mark-up/interest
expenses:
Administrative expenses 29,692,513 23,628,212 22,566,685 21,014,641 19,099,222
Other provision 562,828 271,151 155,240 76,935 (52,285)
768,922 924,495 937,153 979,225 928,954

Total Non-mark- 31.024,263 24,823,858 23,659,078 22.070,801 19,975,891

up/interest expenses
Share of profit of 433,1199 946,774 795,607 581,771 628,861
associates
Extra-ordinary/unusual
item - - - - -
Profit before taxation 30,613,707 36,720,857 42,788,640 37,354,022 32,932,070

Taxation –current years 3,725,143 12,503,868 14,569,863 12,003,454 15,220,551

-prior years (2,166,582) 1,682,063 1,894,674 (1,074) (2137)

6,880,293 177,995 1,209,820 529,658 (4,318,658)

-Deferred

Share of tax of 127,089 182,786 79,171 47,538 82,173

associates
8,565,943 14,546,712 17,753,528 12,579,576 10,981,929

Profit after taxation 22,047,764 22,174,145 25,035,112 24,774,446 21,950,141

46
Income Statement:

An income statement or profit& loss account is one of the financial statements of a company and
shows the company’s revenues and expenses during a particular period. It indicates how the
revenues are transformed into the net income. Financial statements used for reporting a company’s
performance over a specific accounting period, with the other key statement of cash flow.

47
 FINANCIAL ANALYSIS:

It is often useful to express balance sheet and income statement items as percentages. For this
common size analysis and index analysis are extremely helpful in comparing firms whose data
differ significantly in size because every item on the financial statements gets placed on a relative,
or standardized, basis. These two analyses are as follows:

 Horizontal Analysis
 Vertical Analysis
 Ratio Analysis.

HORIZONTAL ANALYSIS:

Horizontal common size analysis is also called “Year to Year “analysis in which we compare each
amount with a base amount for a selected base year. An analysis of percentage financial statements
where all balance sheet or income statement figures for a base year equal 100.0 (percent) and
subsequent financial items are expressed as percentages of their values in Base year. This analysis
is also called Index Analysis.

VERTICAL COMMON SIZE ANALYSIS:

It is the analysis of financial statements, where all balance sheet items are divided by total assets
and all income statement items are divided by net sales or revenues.

RATIO ANALYSIS

A ratio analysis is a quantitative analysis of information contained in a company's financial

statements. Ratio analysis is used to evaluate various aspects of a company's operating and
financial performance such as its efficiency, liquidity, profitability and solvenc

48
 Balance Sheet (HORIZONTAL ANALYSIS):
MCB BANK
BALANCE SHEET
FOR THE YEAR ENDED

Assets 2017 2016 2015 2014

Amount Amount Amount Amount
Cash and 44% 23% 31% (22%)
balances with
treasury and
other banks
Balances with 2% (28%) 3% 92%
other banks
Lending to 87% 2% 1% 15%
financial
institutions
Investments – 18% (1%) 9% 13%
net
Advances - net 37% 15% 4% 22%

Operating Fixed 20% 11% (14%) 8%

assets
Deferred Tax
Assets – net - - - -

Other Assets 38% 8% (15%) 39%

Total Assets 14% 8% 5% 27%

49
LIABILITES 2017 2016 2015 2014
Amount Amount Amount Amount
Bills payable 73% 10% 62% 64%
Borrowings 81% (34%) 98% 54%
Deposits and 25% 12% 2% 8%
other accounts
Sub-ordinated - - - -
loans
Liabilities - - - -
against Assets
subject to
Finance Lease
Deferred tax (56%) 3% 16% 1%
liabilities
Other liabilities 35% 1% (1%) 48%
Total Liabilities 1% 5% 9% 14%

Net Assets

REPRESENTED BY:
EQUITY 2017 2016 2015 2014
Amount Amount Amount Amount
Share Capital 64% 0% 0% 9%

Reserves 32% 3% 4% 40%

Un-appropriated (5%) 5% 5% 15%

profit

Total equity 14% 4% 4% 9%

attributable to the
equity holders to
the bank
Non-controlling 14% (5%) 2% 4%
interest
Total 14% 4% 4% 9%

Surplus on 7% 2% 4% 18%
revaluation of
asset

50
INTERPRETATION:

Assets base of the bank has increased considerably over the past 5 years and crossed many
milestones i.e. PKR 1 trillion; highest increasing the asset base is observed in 2017 where asset
increased by 14%, mainly contributed by advances in terms of volume. This increase is also
includes assets transfer under merge of NIB into MCB Bank Limited. During the past 5 years,
highest increase in investments base was reported in 2013. Highest growth in advancement is
observed in 2017 primarily due to portfolio transferred on account of merge of NIB Bank into
UBL Bank Limited. Liabilities decreased in 2017 by 1%. In 2016 the liabilities is 5%. In 2015
the liabilities of the bank is 9%. In 2014 the liabilities of the bank is 14%. In 2013 the liabilities of
the bank is increased by 14%. Over the past 5 years the liabilities of bank is decreased by 1%. The
equity of the bank is increased in 2017 by 14 %. Equity of the bank has also posted healthy
increased into 14%average growth in past 5 years. The surplus revaluation of assets is decreased
by 7%/. In 2013 the surplus of the bank is good and increased by 18%. In 2017 the surplus is
decreased.

INCOME STATEMENT
(HORIZONTAL ANALYSIS)
INCOME STATEMENT
UBL BANK
FOR THE YEAR ENDED

2017 2016 2015 2014

51
Mark- 10% (14%) 4% 18%
up/return/interest
earned
Mark- 35% (22%) 7% 24%
up/return/interest
expense
Net mark- (2%) (9%) 13% 14%
up/interest income
Provision against 1% 3% (73%) 61%
non-manufacturing
advances and loans
Provision for 5% (22%) (1%) 12%
diminution in the
value of investment
Bad debts written off (22%) (73%) 2% 90%
Net mark-up/interest 3% (9%) 7% 11%
income after
provision
Non mark-
up/interest income:
Fees, commission& 21% (2%) 8% 97%
brokerage income
Dividend income 45% 30% 18% 2%
Income from dealing 50% 16% (46%) 56%
in foreign currencies
Gain on sale & (15%) 26% 1% (20%)
redemption of
securities.
Unrealized gain on (95%) 9% 97% 25%
revaluation of
investments
Other income 19% (74%) 32% 2%
Total non-mark- 12% (1%) 24% 15%
up/interest income
1% (7%) (99%) 12%

Non mark-up
/interest expenses:
Administrative 25% 4% 7% 10%
expenses
Other provision 1% 74% 1% 47%
Other charges (16%) (1%) (4%) 65%
Total non- mark-up/ 24% 4% 7% 10%
interest expenses

52
 Share of profit of (54%) 19% 36% (7%)
associates
Extraordinary/unusual - - - -
items
Profit before (16%) (14%) 14% 13%
taxation
Taxation -current (70%) (14%) 21% (21%)
years
-prior years 28% (11%) 17% (49%)
Deferred 37% (85%) 1% (87%)
Share of tax of (30%) 1% 66% (42%)
associates
(41%) (18%) 41% 14%

Profit after taxation (5%) (11%) 1% (12%)

INTERPRETATION:
On to profit& loss side, gross mark-up earned has posted decrease of 10% over a span of 5 years.
Corresponding to the shift in assets mix, contribution from income an investment has increased
over the 5 years. The increase in mark-up expense on deposit is on account of regulatory revisions
enacted by Central Bank and volumetric increase in deposit base. Non mark-up income block has
shown decreased in 2017 and the decrease in past 5 years is -2%, whereas non mark-up expense
has grown by an average of 35% which is justifiable on account of growing operational
infrastructure and inflationary patterns. The non-mark-up interest income after provision is
increased in 2017 is in creased by 12% rather than in 2016 decreased by 1%. Non-mark-up interest
expense is increased by 24%. Profit before tax in current year is decrease by -16%. At the last
profit after taxation is decreased by -5%. So the profit of bank is not enough.

Balance Sheet

VERTICAL ANALYSIS

BALANCE SHEET

53
 UBL BANK
FOR THE YEAR ENDED

2017 2016 2015 2014 2013

ASSETS Amount Amount Amount Amount Amount
Cash and
balances with 7% 7% 6% 4% 7%
treasury and
other banks
Balances with
other banks 1% 66% 98% 32% 19%

Lending to
financial 38% 26% 27% 15% 14%
institutions

Investments –
net 4% 52% 5% 54% 55%
Advances –
net 36% 3% 31% 32% 30%
Operating
Fixed assets 3% 3% 3% 3% 3%
Deferred Tax
Assets – net - - - - -

Other Assets 3% 3% 3% 4% 3%

Total Assets 100% 100% 100% 100% 100%

Deposits and 82% 86% 81% 86% 90%

other accounts

Sub-ordinated - - - - -
loans

54
Liabilities against - - - - -
Assets subject to
Finance Lease

Other liabilities 3% 3% 3% 3% 2%

Total Liabilities 100% 100% 100% 100% 100%

REPRESENTED BY:

EQUITY 2017 2016 2015 2014 2013

Share Capital 8% 9% 9% 10% 10%

Reserves 51% 44% 44% 44% 46%

Un- 40% 46% 45% 44% 42%

appropriated
profit
Total equity 99% 99% 99% 99% 99%
attributable to
the equity
holders to the
bank
41% 42% 44% 46% 48%
Non-
controlling
interest
Total 100% 100% 100% 100% 100%

Surplus or 12% 20% 22% 23% 14%

revaluation of
assets

55
INTERPRETATION:

Vertical analysis depicts higher concentration levels of investments and advances in the asset base
of the Bank. The advances base of the Bank has posted moderate loss over the last few years due
to the lack of credit opportunities and intense competition. The concentration level of advances in
the total assets stands improved from 30% in 2013 to 36%

INCOME STATEMENT
VERTICAL ANALYSIS
INCOME STATEMENT

UBL BANK

56
 2017 2016 2015 2014 2013

Rs.000 Rs.000 Rs.000 Rs.000 Rs.000

Mark- 100% 100% 100% 100% 100%
up/return/interest
earned

Mark- 42% 35% 39% 44% 41%

up/return/interest
expensed
Mark-up/ interest 58% 65% 62% 57% 59%
income
Provision against 4% 1% 35% 1% 5%
loans and
advances
Provision for 5% 93% 1% 1% 1%
diminution in the
value of
investments
Bad debts written 1% 3% 8% 3% -
off directly
Non mark-up
/interest income
Fees , commission 55% 51% 52% 59% 63%
and brokerage
income
Dividend income 9% 7% 6% 6% 7%

Income from 8% 6% 5% 11% 9%

dealing in foreign
currencies
Gain on sale and 26% 34% 27% 13% 19%
redemption of
securities-net

57
Unrealized gain on 1% 3% 4% 20% 18%
revaluation of
investments
Other income 35% 3% 4% 20% 18%

Total non-mark- 100% 100% 100% 100% 100%

up/interest
income

Non mark-up
interest expenses:
Administrative 96% 96% 96% 96% 96%
expenses
Other Provision 1% 1% 65% 34% 26%

Other charges 3% 4% 4% 5% 5%
Total non- mark- 100% 100% 100% 100% 100%
up/interest
expenses

Share of profit of 1% 5% 4% 3% 3%
associates

Extraordinary / - - - - -
unusual items

58
Profit before 138% 165% 170% 150% 150%
taxation

Taxation- 17% 57% 59% 49% 70%

Current year

Prior year 10% 8% 8% 5% 10%

Deferred 32% 80% 5% 3% 20%

Share of tax of 57% 82% 31% 19% 37%

associates
39% 66% 70% 50% 50%

Profit after 100% 100% 100% 100% 100%

taxation

INTERPRETATION:

On the profit& loss side, gross mark-up interest earned is base year 100% over a span of 5 years.
The decrease in mark-up expense on deposit is an account of regulatory revisions enacted by the
Central Bank and volumetric decrease in deposit base. Non mark-up income block has shown
enormous growth in recent years and the growth in past 5 years is 59%, which is justifiable on
account of growing operational infrastructure and inflationary patterns. Profit before taxation is
decreased in 2017 by 138%. The profit after tax is also the base year in vertical analysis.

59
 RATIO ANALYSIS

RATIO ANALYSIS

A ratio analysis is a quantitative analysis of information contained in a company's financial

statements. Ratio analysis is used to evaluate various aspects of a company's operating and
financial performance.

Current Ratio:

Current ratio shows firm’s ability to cover its short term liabilities. It is the ratio of current assets
to current liabilities. Higher the ratio greater will be the ability of organization to pay current
liabilities.

Formula: Current Ratio= Current Assets / Current Liabilities

Year 2017 2016 2015 2014 2013

Current 1,373,430,450 107,669,023 1,020,980,021 941,606,,486 821,278,304
Assets
Current 1,216,887,369 930,730,156 878,803,401 805.337,280 705,815,509
Liabilities
Ratio 1.12% 1.15% 1.16% 1.16% 1.16%

60
 Years
1.18

1.16

1.14
Years
1.12

1.1
2017 2016 2015 2014 2013

INTERPRETATION:

Current ratio measures the business ability to pay its short term liabilities. Short term creditors
have interest in current ratio. MCB Current for 2017 is 1.12.It means current assets are slightly
more than current liabilities. It is not a good ratio. In 2016 it was 1.15%. In 2015 ratio was 1.16%.
In 2014 1.16% and 2013 ratio was 1.16%. As compared to previous year the ratio of 2017 is
decreased. In 2015, 2014 and 2013 are same.
Proprietary Ratio:
Formula:
=Total equity/ Total assets

Years 2017 2016 2015 2014 2013

Rs.000 Rs.000 Rs.000 Rs.000 Rs.000
Total equity 138,680,237 120,661,284 115,765,135 110,607,343 100,655,162
Total assets 1,373,430,450 1,076,690,236 1,020,980,021 941,606,486 821,278,304
Ratio 0.10% 0.11% 0.11% 0.11% 0.12%

61
 years
0.13
0.12
0.11
years
0.1
0.09
2017 2016 2015 2014 2013

INTERPRETATION:
MCB proprietary ratio of 2017 is 0.12%. In 2016 it was 0.11%. In 2015 ratio was 0.11%. In 2014
0.11% and 2013 ratio was 0.12%. As compared to previous year the ratio of 2017 is decreased
from 0.10%.

Debt Ratio:
Formula:
Debt Ratio = Total debts/ total assets*100

Year 2017 2016 2015 2014 2013

Total 1,216,887,369 930,730,156 878,803,401 805,337,280 705,815,509
debts.
Total 1,373,430,450 1,076,690,236 1,020,980,021 941,606,486 821,278,304
Assets.

Ratio. 88% 86% 86% 85% 85%

62
 years
89
88
87
86
years
85
84
83
2017 2016 2015 2014 2013

INTERPRETATION:

Debt ratio indicates firm’s long term debt paying ability .It indicates percentage of assets financed
by the creditors. This ratio indicates that at the end of the year 2017 the debt ratio for MCB is 88%
showing the percentage that how many of the assets have been financed through the long term
debts and liabilities. Increased debt ratio cause increased in company’s ability to pay debt
adequately.

Profitability Analysis:
1. Return on total assets
Formula:
= Net profit after tax/ Total assets*100
Year 2017 2016 2015 2014 2013
Net-profit 220,447,764 22,174,145 25,035,112 24,774,446 21,950,141
after tax.

Total assets 1,373,40,450 1,076,690,236 1,020,980,021 941,606,486 821,278,304

Ratio 1.60% 2.05% 2.45% 2.63% 2.67%

63
 years
3

years
1

0
2017 2016 2015 2014 2013

INTERPRETATION:

It is another computation that determines the return on total assets ability. This ratio compares the
net profit after tax with total assets. MCB return on total assets is decreased in 2017 as compared
to 2016. It’s not the good ratio.

2. Ratio on equity:

Formula:
=Net profit after tax/ Equity*100

Year 2017 2016 2015 2014 2013

Net profit after tax 22,04,764 22,174,145 25,035,112 24,774,446 21,950,141

Equity 138,680,237 120,661,284 115,765,135 110,607,343 100,665,162

Ratio 15.8% 18.3% 21.6% 22.3% 21.8%

64
 years
25
20
15
10 years
5
0
2017 2016 2015 2014 2013

INTERPRETATION:

It determines that ratio on equity ability. It compares the net profit after tax with equity. The ratio
on equity id decreased in 2017 as compared to 2016. The ratio of 2017 is 15.8 and 2016 is 18.3. It
compares net profit after tax with equity. It is not the good ratio.

 Return on investment:
Formula:
= Net Profit after tax / Investment * 100

Year 2017 2016 2015 2014 2013

Net profit after tax 220,047,764 22,174,145 25,035,112 24,774,446 21,950,141

Investments 660,071,246 556,770,384 566,564,304 516,898,299 453,808,345

Ratio 33.3% 3.93% 4.41% 4.79% 4.83%

65
 years
40

30

20
years
10

0
2017 2016 2015 2014 2013

INTERPRETATION:

It determines the ratio on return on investments. It compares the net profit after tax with
investments. It decrease in the ratio of return on investments on 2017 is 3.33 and 2016 is 3.93. The
decrease in the ratio is not good. The decrease in the ratio of return on investment is that the
company is in loss. The ratio is not good.

66
CHAPTER NO.5

67
 SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic planning
process. The SWOT Analysis provides information that is helpful in matching the firm’s
resources and capabilities to the competitive environment in which it operates.

There are following two types of analysis.

 Internal Analysis

Strenghts

Weekness

Strenghts

The main strenght of the bank lies in its services. The other fact that contributes is approaching to
each segment of society.

 Bank reputation

MCB has made a status of a compact economic institution over 60 years it focus on growth done
enlightening services quality investment in technology and people developing its extensive branch
network and evolvoing a large and stable deposits based.

 Customer Satisfaction

MCB bank by the customer satisfaction. It enables the customer through providing those
appropriate services and guiding them in their investment choices. Customer always

68
 relaible and believe MCB. MCB ban believes in building and keeping close relationship
built on care and devotion itself.

 Promotion Effectiveness

MCB has developed a very encouraging promotioal principle which creates great loyalty and
motivations in employees towards the bank.

 Continuous improvement

MCB bank held diverse a veryencouraging training programs which enable the members or staff
upgrade their knowlegde. MCB has taken initiative to introduced new schemes regarding its
product and services in this way it continuously made improvement in its emplyees and services.

 Large network of branches

MCB is function by the great network of 100 plus online branches nationwide MCB determined
constantly to develop and enhanced its branches network day by day to confirm satisfy and
approachability to its customer.

 Team based approach

MCB is a team of loyal determined anf faithful experts who keep quality of services done
outstanding performance and presertation. In MCB bank there established a team determination
and accord among employees projects are accomplished through members connectively working
as team.

69
 Weakness

In according to high ranking in others commercial Banks MCB has also some weak point as well
as good point. Some weakness is given below:

 Less productivity from Staff

The bank management is unable to utilize optimum productivity from the staff. The matter of fact
is that staff is skilled and experienced but there are not utilized properly to gain optimal
productivity.

 Overburdened Staff

Staff is overburdened with unproductivity tasks rom the management employee should be used
when and where required to get maximum output from them. Right man for right job should be
used.

 Lack of Organization Devotion

Organization loyalty has deficiency between employees. Employees don’t pay attention to their
tasks as they think their job as permanent.

70
  Attitude of seniors towards to juniors

Attitude of seniors has to change towards 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

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.

Opportunities

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  Management Skills

Different management skills courses should be introduced to employees in order to make them
familiar management abilities.

 Foreign training

Staff should be sent for some foreign courses in order to know them for global progress in their
respective fields.

 Diversification

They may enter in new business or any other consumer-durable product in order to promote their
name, by introducing loan for the students, small businesses, and handcraft industry.

 Some more opportunities

Information Technology

Credit cards can give more earning

Establishing more foreign Branches

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They should introduce Student Finance Facility

They should also introduce mobile ATM

Threats

 Competitions are increased 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 there is also a
threat for MCB bank.

 Increasing Interest Rates

Due to increase 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 decrease the business of
bank.

 Instability of Government Policies

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Government policies changing day by day and government stability is not there.

 Poor Economic Condition of Pakistan

Week 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.

Pest Analysis

Pest analysis affects the overall banking companies and provides the information about the external
macro condition of the bank. Following is the pest analysis on the MCB bank Limited

Policies Factors

 Banks are strongly affected by the political consideration.

 Political instability in Pakistan can lead to changes in laws and policies which can be in
favor or against the banking sector.

Political instability can effect employment level in the economy.

 Investments could be decreased due to lack of confidence on government which also has a
great impact on the financial statements.

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Economic Factors

 Economy of Pakistan is facing issues about illiteracy, which results in the stoppage of
business growth.

 Inflation will also affect the saving rates of the bank.

 Operating costs are increasing due to inflation.

 Interest rate is increasing so loan taking has decreased that affects the bank.

 Bank could be in a situation of facing the budget deficit due to the instability in the
economy due to inflation.

Social Factors

 A society is shaped by beliefs, norms and values. People living in the society having stable
norms and values could affect the bank positively.

 Investment remains low due to the reason of cultural damage to savings of the bank.

 Declining work ethics could also affect the bank which is mainly due to poverty and lack
of training of the banks employees.

 Inadequate responsibilities, lack of good governance and lack of good infrastructure helps
creditor to cheat and heavy bad debts takes place for the bank.

 Inadequate empowerment is also a common problem in society, as every person wants to

get more power, which results in improper allocations of authority and decision making.

Technological Factors

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 People are highly skilled and MCB bank can introduce new technology to increase
competencies.

 Forces of technological advancement have played the most dramatic role in shaping the
lives of people..

 MCB bank has computerized branches but still some are manual. This can also affect
adversely as other banks are mostly computerized and customers will get bad impression.

CHAPTER NO.6

DIVISIONAL OR DEPARTMENTAL DETAIL

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77
 Competitors

In the list of MCB competitors will be as follows:

 Bank Al Habib Ltd

 Bank Al Falah Ltd

 Askari Bank Ltd

 Faysal Bank Ltd

 Soneri Bank Ltd

 Bolan Bank Ltd

 Indus Bank

 Allied Bank Ltd

 Union Bank Ltd

Brief Introduction of All Department

Muslim Commercial Bank is serving by the following these departments:

 Accounts opening department

 Clearing department

 Remittance

 Cash department

 Loan department

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 Accounts Opening Department

When customer come in bank for opening bank account he or she must have his NIC card its copy
and if he or she is want to open account with the name of business so he or she must have to submit
the business letter head and also business legal documents like article of association and
memorandum of association.

MCB providing different kinds of accounts opening services to its customers like:

Current account

Saving account

Profit& loss account

Fix deposit account

Basic business account

Khushali bachat account

Clearing department

This department deals with cheques which received by customer but they are drawn on their banks
it is just like TCS or courier service which takes cheque of one branch from customer and deliver
the cheque of that branch to it. It is a system of exchanging cheques. Clearing house functions is
offsetting the cross obligation in the form of cheque.

Clearing department deals in

Inward clearing

Outward clearing

Local clearing

Remittance department

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Remittance department deals with local currency without actually carrying the local currency the
local currency MCB bank by providing the service to the customers earn a lot of income in form
of service charges.

MCB using the following instruments:

Demand draft

Mail transfer

Pay order

Issuance call deposit& receipts

Credit note

Deposit slip

Fund transfer slip

Cash department

Cash department deals with deposits and with- drawl as well, this department is working under the
accounts department.

Cash received (received deposit slips)

Cash payments

Payments of utility bills

Book keeping record

Dealing with the payment of remittance

Use of UVL (Ultra Violate Light)

Filling of ATM machine

Cash department maintains ledgers of accounts. At the end of record report sent to the head office.

Loan department

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MCB providing loan services to its customers

Personal loans

Business loans

Agricultural loan

Personal loan and Agricultural loan are granted by selected branches only

Business loan:

Business loan granted loan of two types:

Fund base:

Fund base loan are further involve in Running Finance and Demand Finance.

Running Finance issued for the short period of time and Demand Finance issue for a long period
of time.

Non fund base: this type of loan granted on the base of Bank guaranties, in which no cash involve,
agreement or deal on the base of undertaking, if beneficiary fail to pay on due date so letter of
credit convert to Demand Finance.

A. Human Resource Department

Human resource functions are performed by the HR Division, Regional Office Gujrat. I spend
spent two weeks in HR department to know the HR functions and roles. I go through the selection
process of employees used in different departments of the bank.

MCB Bank Limited hires staff in two ways one is from batch program (Fresh Induction) and other
is hiring experienced staff from other banks and also hires staff contractual staff both in batches
and experienced staff.

The fresh graduates are hired through MCB Batch Program. MCB needs staff in different
department departments. The hiring program starts from advertisement in different newspapers
and MCB on websites and different HR recruitment portals. After the received of thousands of
applications from fresh Graduates and Masters, the HR Departments are sorted out merit wise and
test is conducted. After completion of test interview are held in respective staff colleges. Currently

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MCB Bank Limited has three staff colleges, Lahore, Islamabad and Karachi. After passing out the
interview the candidates and gone through comprehensive pre-indention training program. This
training program is purely on all Banking departments in the class room and on the field. After
completion of trainings, the employees are posted at different departments.

In the second one hiring staff process is experience staff. The Regional Heads and General
Managers assess the need of employee or need for replacement through the field managers. They
calls for interviews, select the rights candidates for the right department and second the request to
HR Department for their hiring.

The need assessment is observed at Head Office level taking feed-back from field managers.
Branch Managers also involved in the Human Resources functions, he manage all the staff of the
branch according to the need and jobs responsibilities.

B. Operational Department

Operations department include all operations activities of the branch. The Branch Operations
Manager managed all activities of the branch. The operation department divides in three sub
departments.

1. Accounts and Deposit Department

The main objective of Accounts department is to keep the records of all financial transactions of
bank in accurate, timely and transparent manner it is also responsible in managing existing
accounts and also developing new relations. The basic objective of Accounts Department is to
keep record of financial transaction of bank in an accurate, transparent and time-bound manner.
With the adoption of new technology and centralized banking system the working of accounts
department in responsible of managing the existing relationship also cater new relationships to the
bank. They are now more involve in the supply of money. The accept deposit from general public
for the advancing loans.

Mission & vision of Accounts and Deposit Department:

The accounts and deposit department is responsible for the deposit mobilization and account
opening. This department is also responsible for issuance of ATM Card. Mobile banking and also

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introduction of new products newly started by bank. Department is also responsible for the
maintenance of existing account.

Duties to be performed:

The main duties performed by the officers of Account Department and various accounting units
are as follows:

 The record get recorded initial entries of all financial transactions in the initial books of
record and to ensure their proper maintenance.

 To reconcile inter-divisional/ departmental monthly/ quarterly/ Accounts and adjustment

of differences.

 To control the budgets and maintain the Accounts books of records for budgetary control.

ACTIVITIES OF INTERN

Introduction of branch

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I have done my six weeks internship from MCB bank limited (0186). The Mall Branch under the
branch manager Naeem ul Ghani. This is a online branch of MCB and this branch is doing good
business. The question comes in how? Reasons behind this are firstly, when the branch manager
joins this branch he brings some account with him. Secondly, this branch is on exact location on
the main road and different are around it. Thirdly, the staff of this branch is much cooperated they
work like a time that’s why the working of management is very smooth and efficient. Finally, this
branch have very good contact and the relation with the shops business entities and the other sound
parties as well to increase the deposit of the branch and maintain the efficiency of the work and
enhance the organization. The branch manager Naeem ul Ghani introduces me with the staff
members and guided me about different functions being operated within the organization.

Name of Branch MCB The Mall Branch

Branch Code 0186

Region Lahore

MCB Bank, Dayal Singh Mansion

(shahrah-e-Quaid-e-Azam Service
Rd S, Mazang, Lahore,
Address
Punjab54000)

Name of Branch Manager Mr. Naeem-ul-Ghani

Name of Branch
Operation Manager Mr. Asim Nazeer

Starting and the ending dates of my internship

Starting and the ending dates of my internship program in the MCB Bank limited

Starting Date: 20 July 2018

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Ending Date: 30 August 2018

Names of the department where I have worked during my internship duration

1. Accounts opening department

2. Remittance Department

3. Clearing department

4. Foreign trade department

5. Loan Department

First week

Accounts opening department

I have done one week in account opening department. It is the most important department of any
branch of any bank because all working of the bank is based on the account. It is the first step
between the customer and the banks I opened new accounts of new customers and some for old
customers because they operate more than one account. There are different types of accounts in
MCB Bank limited which are offered to its customers. Different accounts has different accounts
has different benefits, different charges different minimum balance requirement and different
purposes.

Types of Accounts

There are three types of accounts:

1. Current account

2. Saving account 9

3. Term deposit account

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Types of Current Account

 Simple current account

 Smart business account
 Business current account
 Asaan current account

Types of Saving Account

 PLS saving account

 Gold saving account
 Sahara saving account
 Asaan saving account

For individual Account

 Account opening form

 Attested photocopy of computerize National Identity Card (NIC) or passport of
individual.
 In case of salaried person, attested copy of his or her service card or any other acceptable
evidence of service, including, but not limited to a certificate from employer.
 If the person has his or her own business then the letter pad copy is needed.
 In case of illiterate person, two receipt passport of the new account holder besides taking
his right and thumb impression on the specimen signature card.

For joint stock companies Account

 Certified copies of Resolution of board of directors for opening of account specifying the
person or person’s authorized to operate the company account.
 Memorandum and Article of Association.
 Certificate of incorporation.
 Certificate of commencement of business.
 Attested photo of Computerized National Identity Card of all Directors.

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  List of Directors in from-29 issued for the Register joint stock companies.

For partnership Account

 Attested photocopy of computerized National Identity Card (NIC)

 Attested copy of ‘’partnership deed’’ or ‘’letter of partnership’’.
 Attested copy of Registration Certificate with Registrar of the firm. In case of partnership
is unregistered, this fact should be clearly mentioned on the Customer Relationship form.
 Authority Letter in original, in favor of the person or other person who is authorized by the
partners.
 Account Opening Form is filled and necessary documents are attached with this Form and
are sent to main Branch. After verification the main branch send mail of verification then
the new is activated.
I also learn about the KYC (know your customers) form in which the information about
all customers are present, and I learn to fill the opening account forms.

Closing of Accounts

For the closing of accounts, there is a closing form which is essential to fill.

Second week

Remittance Department

I have worked two weeks in Remittance Department. We deal with different functions and
different instrument’s and in this department.

Those instruments and functions are:

 Banker’s Cheque (previously Order & Demand Draft)

 Online transfer or internal transfer
 Call deposit Receipt (CDR)
 Telegraphic Transfer
 Deposit Slip

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  MCB Rupee Travelers Cheques

1. Banker’s Cheque

Features

 In banker’s cheque, there is a confirm payment.

 It is the safest way to transfer the amount.
 Banker’s check also known as Demand Deposit and pay order.
 Can be used for countrywide money transfer/ domestic payments.
 No minimum amount for Banker’s cheque.
 It is mostly credited in the beneficiary’s account.
 If Banker’s Cheque is deposited in beneficiary account of MCB in any branch across the
country, it will be dealt as transfer entry and money will be transferred instantly. In case of
cross bank deposit, normal clearing process will be observed.

Eligibility

An account with MCB is not necessary, non-account holders can also avail this facility. Banker’s
Cheque is not issued to minors.

Enhance Procedure

As the Banker’s Cheque is a crossed instrument, hence the Banker’s Cheque will not be purchased
against Cash and no cash payment will be made against a Banker’s Cheque to the beneficiary. It
is to be credited to account only. In the deposit slip Banker’s Cheque no. is require to be given
which is like PAB-1234567.

Types of cheques:

There are different types of cheques, some are given below:

Pays Account Only

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Account payable only in which needs to be paid to avoid default. This cheque is only issue to that
person which name is written.

Open cheque

An open cheque is a cheque that is not crossed on the left corner and payable at the counter of the
drawee bank on presentation of the cheque.

Transfer Cheque

Transfer Cheque is used to transfer cash from one place to another. The cheque are one method of
ensuring better cash management for companies, which collect cash at multiple location.

Simple cheque

Simple cheque in which amount can be easily transfer at any account.

2. Demand Draft (Discontinued)

Demand draft is like an instrument and is issued on the demand of the customer. DD has
abominated the extra burden of the currency. It is payable on the demand when the customer want
it. It is issued by the one branch of the band is payable by another branch of the same bank.

Information required for DD

Beneficiary Details

 Beneficiary Name
 Bank or Branch Name and address
 Purpose of remittance

3. Pay Order (discontinued)

PO is the kind of instruments and it is the property of customer. It is used for the payment of
admission fee, tender or for payments of dealing. In case of PO issue bank and paying will bw the
same but branches may be different in that city. It flows with in the city.

4. Online Transfer

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The amount can be transfer from one account to another account either the account is of that branch
or any branch of MCB in any city.

Information required for online

Beneficiary detail

 Beneficiary Name
 Bank or Branch Name and address
 Purpose of remittance

Applicant Detail

 Name or Title off account

 Account number
 CNIC or Passport No. (for Non Account Holder)
 Signature of Applicant

5. Telegraphic Transfer/ Mail Transfer

Mail and Telegraphic Transfer is another method f sending money from one place to another
pace by using the letter (mail). The mail transfer (MT) is possible only when the sender (remitter)
and the receiver (remittee) both are having bank accounts in the same bank, but at different
branches.

6. Internet Transfer

Data transfer is the process of using computing techniques and technologies to transmit or
transfer electronic or analog data from one computer node to another.

7. Call Deposit Receipt (CDR)

It is highly liquefied instrument which can be cashed at any time on the demand of customer it is
used for tender purpose. CDR shows that the specific mentioned account is present in between
customer and other party which deal is being done. In this case issuing and paying branch is same.

 CDR is also like Banker Cheque.

 The only difference in CDR in which we cannot pay any charges.

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  CDR is free of cost.
 Banker is the cheque which give form the bank and the amount written in banker cheque
is confirmed paid.

8. Deposit Slip

There are two copies of deposit slip one is for bank use and other for customers use. We fill deposit
slip in case of cash of cash deposit in account holder account and when any cheques come in the
branch.

9. MCB Rupee Travelers Cheques

Product Features

 Recognized as the most reliable substitute to cash.

Eligibility:

 An account which MCB is not necessary, a non-account holder can also avail the facility.
 A minor applicant cannot send funds through T.T until he/ she gets the form signed by a
major.

10. Standing Instructions

Standing instruction in which the customers gives the instruction to the customers to do
transaction every month so its bank responsibility to do transactions in customer account. The
customer ordered the bank and bank responsibility to do its work according to the order.

11. Online Remittance/ Home Remittance

 In online remittance check the amount of customer to see his/ her CNIC or Visa Card.
 If CNIC is not available so the amount will not accommodate.
 For online/ home remittance the essential things is:
 Visa
 Driving License

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  It is also made as Aftab Currency, Quick Pay, RIA, Tele Money, X Press Money,
EXREMIT, May Bank, IME, Money gram, Small World, ENJAZ.

12. Lockers

 Locker is for personal used.

 It is used to put important documents and jewelry.
 The charges paid every year on lockers.
 The locker is not given to the prize bond holders.
 If we cannot pay charges in two years so the bank case on the customer.
 Lockers is available in three sizes ad each amount is different.
 Medium 6500
 Large 10000
 Small 4500

13. Post Rated Cheque

Post rated cheque is payable at after any specific date. It is written by the drawer (payer) for a
date in the future.

14. Cheque Clear

The cheque is always clear after the specific date.

15. Vouchers

Everything is passes in vouching process. All cheques, deposit slip are also passes in vouching
process.

Schedule of Charges

Schedule of charges is a book issued to the bank every year in which the amount of all things will
be changed.

Third week

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Clearing Department

I have to worked 3th week inn clearing department. I learned the functions and work which are
performed by this department. This is the important department of any bank.

General banking officer (GBO) Mr. Ali Hassan taught me about clearing. He told me that it is
a process in which the banker settle their mutual account by claiming the arising account of various
instruments presented by one bank drawn on the other bank either the bank is I the same city or
out of city. Suppose an NBP account-holder gives a crosscheck for MCB. Similarly, MCB
accountholders give check to people having accounts in other banks does this.

Clearing Checks

X y MCB DEPOSITED
MCB Account Account-holder
holder

In clearing we deal with the cheques of other banks or other branches of MCB. The clearing is
done with the help of NIFT (National Institution Facilitation Technologies). It is the institute which
the state bank has hired for the collection of clearing cheques of each branch and it plays middle

93
man role between each branch with State Bank of Pakistan. He told me that clearing are of two
types;

 Outward clearing
 Inward clearing

Outward Clearing

Outward clearing is that settle of claims of our branch of MCB bank but drawn on other branches
of MCB or on other banks. These cheques are deposited by our customer in our MCB branches
and then our MCB bank branches present it in outward clearing.

GBO told me that there are three types of outward clearing.

 Normal clearing
 Sameday clearing
 Intercity clearing

Before starting clearing GBO gave me the first task to record the detail of cheques in the cheque
collection (CC) ledger, the detail includes pay account number, cheque number, cheque amount,
bank name of which the cheque is. And I wrote the all amount of all cheques on Add list and add
it. Two copies were made one original and second carbon copy. I attached add list and all the bank
copy of deposit slip which were filled from customer in the CC ledger. GBO appreciates me that
your calculation is good. The same task is done either it is Normal. Same day, or intercity clearing.

There are following detail are required in Clearing Register.

1. Serial No.

2. Account no. of the depositor

3. Depositor name

4. Drawer

5. Drawee

6. Cheque No.

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7. Amount of the cheque

Normal Clearing

Normal clearing is made at afternoon which would be present on next day. Two stamps are
stamped on front of clearing date stamp and one on back manager stamp that payee account will
be credited with signature. It deals with in city. Time limit of this type of clearing is two days:
Return on paid charges are Rs.300 which are deducted from the depositor account is case of retire
of cheque.

Same day clearing

Same day is made initial working hours and are presented on the same day. Two stamps are
stamped on front of the cheque and one on back of the cheque. On front side, one stamp of same
day clearing and second stamp of clearing date on which cheque has to present. On back side,
manager stamp that payee account will be credited, and manager signature also. Its charges are
Rs.350 only charges that are deducted from the account of holder account.

Intercity clearing

Where there is State Bank of Pakistan that the clearing is done by NIFT and if not then another
institute is worked so CC (cheque collection) is made. Three stamps are stamped two on front side
and one on back side. On front side one stamp of intercity clearing and other is clearing date on
which it has to present. On back side manager stamp that payee account will be credited and
manager signature also.

In case of normal clearing, detail information is recorded the detail in ledger. A clearing schedule
slip is arranged with the branch code stamp, total amount and number of instruments and add list
is also attached with clearing schedule slip then a plastic seal number is required which is written
on the seal. After matching the detail of clearing Register with clearing schedule slip all
instruments, add list, outline page are putted in an envelope and packed in NIFT bag and that NIFT
bag is closed with that plastic seal. This is to ensure additional safety. When the seal is opened
then the bank will not receive that bag, if the seal number on the bag and on the bundle cover does

95
not match in this case it is suggestion that some sort of changes has been made the strict action are
taken by NIFT and the Bank consequently

The procedure is same for some day clearing and intercity clearing.

Inward clearing

In inward clearing other banks or other branches of MCB also settle their account by claiming
the instruments which are drawn by the other banks sent instrument to our branch which are drawn
on us.

There are few things which are included in inward clearing.

 These cheques should be cross cheques or there should be cross stamp on face side of the
cheque.
 Clearing stamp on the front side of the instruments.
 The clearing stamp dated should be of next working day.
 Manager stamp that payees account is credited on the bank of the instruments and signature
on the stamp.
 The signature is to be verified before entering into computer and then the cheque is posted
and drafted.

Receiving and Issuing Check Book Requisition

I taught how to receive requisition of cheque books from customer and what are the requirements
of the bank had to place stamp of signature verified stamp and received stamp on slip.

Issuing cheque books:

 I started my work on issuing cheque books and record all the entries of issuance in register.
 I had to fill out the stock register against the issuing cheque book and all enter the date,
name of account holder, account number, starting and ending of number of cheque book
and the signature of account holder can be taken.

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  After that’s my duty was to put issued cheque book requisition slip in cheque book issued
fie.

Cheque book requisition slips

I filled many cheque book requisition slips for new check books requests. In slips, I had to write
down the date, account number, name of account holder and number of leaves of cheque book.

Fourth Week

Foreign Trade Department

In my forth of internship, I got experienced working in foreign department where I see practically
how LC opened in Pakistan. And what are the requirements of it. What types of LC is opened by
MCB? And understand the role of bank with customer and foreign bank.

 General information about E-form and I-form for import and export.
 Learn about the types of LC
 Fax documents to Foreign Treasury
 Full advance payment forms and IBCA (inter bank credit invoice)
 Learn about Documents, which required opening LC.

Checklist for the Credit Proposal / Renewal of LC

 Credit Proposal
 Memorandum
 Basic Information Record
 PR Checklist
 Application of Finance

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  Yield Statement
 Call Report
 Audited Accounts
 Quarterly Accounts
 Stock Report
 Stock Inspection Report
 Valuation Report
 Bankers Report
 Watch-List Report
 Legal Opinion
 Detail or Deposit Account of Customer

Types of LC

There are two types of LC:

 Sight
 D.A (Dearness Allowance)

Sight

Sight is a process in which the amount will be paid at a time.

D.A (Dearness Allowance)

D.A (Dearness Allowance) is the process in which the amount will be paid under 30 to 60 days.

Fifth Week

Credit Department

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This is an important department as bank’s funds are used. I helped my credit officer in his work.
In this I have arranged files, sorted them on basis of financial product, making entries in the
computer and many more. Bank gives loan on time, bank charge high mark up for new customers
but less-marks up for loyal customers.

Before giving loan or accepting their application bank analysis client’s financial condition as it
plays an important role, if a client is financially strong and have income greater than expense, there
is a high chance of recovery.

Sixth Week

In my last week internship, I can remain do worked in credit department. Credit/ Loan are depends
on duration and nature.

Types of loans

 Personal meet loan

 Car loan
 House loan
 Business loan

All are done by the duration and term and conditions and requirements.

Trade = Import + Export

Business Loan

Business loan is used to Running Finance. The essential things for the business loan:

1. Current Account Holder

 NTN No.

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 Tax Payer (Filler)
 Accounts – Balance Sheet
Profit & Loss Account

2. Shopkeeper, Factory, Industry

 Stock/ Security
 Property

Car Loan

Car loan is the loan to purchase car in advance.

House Loan

House loan is the loan to purchase house or property to live.

Personal meet loan

Personal meet is the loan used for their personal use on daily basis needs.

This was the worked that I had learned from MCB bank limited. I have used great effort to learn
about banking sector hoped that this effort will provide me opportunities. It is a great edge for me
in the job market. It gives a lot of confidence that to deal with the customers. It will create positive
impact on my future.

New Things Learned

I worked as an internee in MCB to gain and experience the knowledge and working of banking
sector. There are the major objectives of my internship:

 Punctuality
 Social Skills
 Sense of responsibility

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 Additional things that I realized during tenor of an internship:
 Business Environment
 I learnt how to work and move around in the business environment.
 Obey and opens communication with your boss.

It’s been the responsibility of an employee to always obey your boss every time whether you are
in angry mood or in jolly mood and same as to your boss. To avoid any kind of misunderstanding
with your boss, communicate with him/ her freely.

During my internship I analyzed that:

‘’ People don’t leave the organization they leave their bosses’’

So be friendly with your staff and boss and communicate freely to avoid organizational switching.

New Problem Encountered

I spend a very good time there but there were some problems which I faced during my stay there.
Some of them are following:

 Afraid to ask questions

 Too much work
 Supervisor forgets that I am working as an ‘’ Internee’’
 Adoption of new life style
 Dealing with politics among employee
 Manual record keeping
 Hesitation to deal with customers
 Work was not challenging
 Routine tasks

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 CHAPTER NO.7

Conclusion

After I completed my internship, I started writing the internship report. Firstly, writing the
introduction of myself and title of the MCB Bank. Then write the declaration of the bank. Then I
dedicate the report. Then write the contents of the report. Then I write the preface of the report.
Then write the executive summary of the report. Then I briefly describe the introduction of the
MCB Bank. Then I briefly describe the history of the MCB Bank. Then I write the business
philosophy, in which describe about the business strategy and also describe the managerial
philosophy. Then describe about the vision& mission statement of the MCB Bank. Also describe
about the significance and importance of vision& mission statement. Then describe about the
marketing strategy, in which describe about the corporate, commercial and consumer banking.t
Then describe about management system of the MCB Bank, in which describe the names of Branch
Manager, Operational Manager, Credit Manager, GBO/Remittance, Chief Teller, TSO and
Customer Service Teller. Then describe about the organizational chart in which describe in chart
about the Branch Manager, Operational Manager, Account Opening, Clearing, Remittance, Cash
Supervisor and teller, Its duties, roles and responsibilities. Then write about the organizational
structure of MCB Bank, in which describe about the branches of MCB Bank. In organizational
structure briefly describe about the corporate, commercial and consumer banking. Then describe
about the corporate profile, in which write the names of board of directors, chief financial officers,
company secretary, Auditors, Legal Advisor and audit committee. Then describe the management
hierarchy. Then write the policy formation process, in which describe about the policies of MCB
Banks. Then write managerial policies, in which describe about human resources policies,
recruitment and selection. Then write the credit rating of MCB Bank, in which describe the
contents of credit rating, the sovereign credit ratings, short& long term ratings, corporate credit
ratings. Then describe the marketing mix of the MCB Bank, in which describe the products, price,
place and promotion and publicity of Bank. Then describe the financial statement analysis, in
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which find out the horizontal, vertical and ration analysis of last 5 years. Then describes the SWOT
Analysis of MCB Bank, in which describe the strength, weakness, opportunities and threat of the
Bank. Then write the division& departmental detail, in which briefly describe the each department
of the bank. Then write the activities of intern, in which in which describe about the things that I
learned from bank during my sic weeks internship. I describe the knowledge that I gain in MC
Bank. Then write the recommendation and reference of MCB Bank.

Recommendation

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Recommendations are considered to be the most important part report, so report is considered
complete and meaningful without it. This part of the report is based on the previous sections i.e.
review and analysis. Moreover, for bringing suggestions, discussions have been conducted with
the staff of MCB officers, who not only provide the basis for recommendations but also pointed
out some areas, where the change for the growth is utmost important. Realizing the importance of
this section, efforts have been made to give feasible recommendations, which are categorized
under the following headings:

 There should be a complete training program for the employees. MCB should introduce
more training programs for their employees. It will help less educated and less experienced
staff to grow and be valuable part of the bank.
 Bank should adopt advance technology, update and advance machinery in bank.
 The bank should finance its loans in those projects, which are meeting the required
standard.
 The bank should bring forward the new talents as fresh knowledge and education is
considered very important to increase the efficiency and production.
 There is needed to make the outlook situations of branches in that manner that can complete
the order modern banks in the banking market.
 Keeping in view the hard work by the staff members at all levels of management, staff
should be given bonus and increment every year.
 The environment of the offices should be comfortably so that the client and staff must feel
comfort during business in bank.
 There are some employees untrained which decreases the efficiency of the bank. The entire
employee should well train.
 Promotion should be given to competent persons or merit basis.
 Special attention should be given to the behavior of the employees towards the customers,
as customer is the most important person of any bank.
 The recruitment policy should be fair and transparent.
 There is misdistribution of work some people are overburdened with the work. So I suggest
that there should be fair distribution of work in all departments.

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  Participative management concept should be adopted, where ideas from the employees
should also be taken, not only for developing products but also on service, efficiency,
employee moral etc. in order to improve them.
 Salaries of the officers must be compatible to other private banks so the MCB can attract
professionals, intelligent persons.
 Special awards should be given to the hardworking employees who performed extra-
ordinary in the bank.
 The bank should come up with new and innovative products. It would be advisable to male
these products while keeping in mind the gap between what people want and what their
banks are providing them.
 The bank should come up with such products or services in which the customers would not
have to come to the bank at any stage i.e. Telephone Banking etc.
 There should be an association of employees to convey the voice of the employees to the
administration.

List of Annexure
Glossary
MCB Muslim Commercial Bank
ATM Automatic Teller Machine
FED Federal Excise Duty

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WHT with Holding Tax
TDR Team Deposit Receipts
CDR Call Deposit Receipt
PBA Personal Banking Advisor
BBA Basic Banking Account
PLS profit & loss Account
TD Term Deposit
AOF Account Opening Form
AMO Account Maintenance Officer
KYC Know Your Customers
SSC Specimen Signature Card
GBO General Banking Officers
ICO Internal Control Officer
CSO Customer Service Officer
DD Demand Draft
PO Pay Order
FTA Fund Transfer Application
CPD Central Processing Division
NIFT National Institute of facilitation Technology
TDR Term Deposit Receipt
RTC Rupee Travel cheque
IBC Inward Bills for Collection
OBC Outward Bills for Collection
MO Main Office
HOD Head Office

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 References

 Introduction: http://MCB.com.pk/MCB/about_MCB.asp

 Vision/ Mission: http://MCB.com.pk/MCB/mission_vision.asp

 Corporate information: http://MCB.com.pk/MCB/corporate _information.as

 Financial Statement: Google.com.pk

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 Annual Report of MCB Bank

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