Internship Report

Table of Content

EXECUTIVE SUMMARY……………………………………………………................3

INTRODUCTION ……………………………………………………………………… 3

OVERVIEW OF THE ORGANIZATION…………………………..………………... 4

VISION, MISSION STATEMENT………………………………..………………… 4

FINANCIAL ANALAYSIS…………………………………………..……………….. 9

BALANCE SHEET………………………………………..…….…..……………… ..12

SWOT ANALYSIS……………………..…………………….…..………………….. 13

PEST ANALYSIS…………………………………………….……………………… 15

SUGGESTIONS& RECMMENDATIONS…………………………………………. 17

REFERENCES & RESOURCES………………………………………………….. 18

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“ACKNOWLEDGEMENT”

All praises to almighty Allah and our holy prophet Muhammad PBUH who gave me the courage and
patience for completion of this final report.

I wish to acknowledge my gratitude to my inspiring Teachers for their endless their persistence,
support and encouragement, and for providing me a lifetime opportunity to work with MCB Bank
Limited

I am also very thankful to MCB Bank Limited. Grain Market Branch, Sahiwal and the Branch Manager
Mr. Shamim Naqvi who gave me opportunity to work with experienced persons in their organization.

I am also thankful to my parents, family and friends that continually offered encouraging support.

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EXECUTIVE SUMMARY:

MCB is one of the leading banks of Pakistan incorporated in 1947 MCB Bank has made significant
contributions in building and strengthening both corporate and retail banking sector in Pakistan.

This report is an upshot of my eight weeks internship in Muslim Commercial Bank of Pakistan.MCB
of Pakistan possesses an imperative and historical importance in the banking sector of Pakistan. It
always remains the center of hustles in business activities. It always endows with great covenant of
rally round in terms of funds and services at all epochs of its dynamism.

The main purpose of internship is to learn, by working in practical environment and to apply the
knowledge acquired, during the studies, in a real world scenario in order to tackle the problems. In
this report the detailed analysis of the organization has been done and all the financial, technical,
managerial and strategic aspects have been evaluated to analyze the current position of the
organization. Along with it, the background analysis, the prevailing competition analysis, the business
process analysis, and the internal environment and external environment of the organization have
been discussed and the recommendations & suggestions for the improvement have been made
wherever required. During my eight weeks internship program, I mainly worked with the following
departments: GENERAL BANKING, CREDIT and FOREX, These departments have been discussed
in detail and all the policies and procedures have been described thoroughly.

This report will provide a complete and clear image about Muslim Commercial Bank

INTRODUCTION:

BANK:

Bank is a financial institute which takes money from those persons who have excess money & lend to
those person who have less money or those who have not resources to fulfill their basic needs.

Internship is a necessary course which must offer to the students of business. Internship helps to
students to learn their practical field so when they enter in market after their completion of study they
have the experience of market so they adjust in market very well.

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DEFINITION OF BANK

The term 'bank' is being used for a long time, yet it has no precise definition. The basic reason that
the commercial banks perform not just one but many types of functions. The term bank has been
defined differently by different authors. Some are as follows:

According to Crowther,

"Bank is a dealer in debts—his own and of other people."

According to G.W. Gilbert,

"A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party
between the borrower and the lender. He borrows from one party and lends to another."

According To Banking Companies Ordinance 1962,

U/S 3 (B) of Banking Companies Ordinance 1962 "Banker means person transacting the business of
accepting for the purpose of lending or investment, of deposits of money from the public, repayable
on demand or otherwise and withdraw able by cheque, draft, order or otherwise and includes any
Post Office Savings Bank."

OVERVIEW OF THE ORGANIZATION:

MCB bank LTD is a profitable financial institution in Pakistan. It is a very famous & oldest commercial
bank in Pakistan having a biggest network within the country and outside the country.

Vision Statement:

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

Mission Statement:
We are a team of committed professionals, providing innovative and efficient financial solutions to
create and nurture long-term relationships with our customers. In doing so, we ensure that our
shareholders can invest with confidence in us.

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Awards of MCB Bank Limited

Year 2018

Asset Triple A Islamic Finance Awards Best Islamic Loan Advisor, Pakistan
Asset Triple A Infrastructure Awards Project Finance House of the Year, Pakistan
Asset Triple A Infrastructure Awards Renewable Energy Deal of the year-Solar, Pakistan to
MCB Bank limited, MCB Bahrain, MCB Dubai
Asset Triple A Infrastructure Awards Oil and Gas Deal of the Year, Pakistan
Asset Triple A Infrastructure Awards Telecom Deal of the Year, Pakistan
Asia money Best Bank Awards Best Domestic Bank
Finance Asia Country Awards for Achievement Best Bank in Pakistan
ICAP and ICMAP Best Corporate Report Award 2017 - Winner

Year 2017

Euromoney Awards Best Investment Bank in Pakistan 2017

ICAP and ICMAP 1st - BCR Award 2016 - Banking Sector
Assets AAA Islamic Finance Awards Best Project Finance House in Pakistan
Assets AAA Infrastructure Awards Project Finance House of the year in Pakistan
Assets AAA Infrastructure Awards Renewable Energy deal of the year
Assets AAA Infrastructure Awards Transport deal of the year
Asia money Silk Road Finance Awards Best Regional Bank in South Asia for Belt & Road
Initiative (BRI)
Asia money Silk Road Finance Awards Best Bank in South Asia for Belt & Road Initiative
(BRI)
Asian Banker Awards Strongest Bank in Pakistan
Finance Asia Achievement Awards Best Pakistan Deal, IPO of Pakistan Stock Exchange
Assets AA Country Awards Best Equity Pakistan IPO of Pakistan Stock Exchange
CFA 14th Excellence Awards Runner Up - Corporate Finance House of the year
SAFA Awards Certificate of Merit Best Presented Annual Accounts 2016-Banking Sector
SAFA Awards Certificate of Merit SAARC Anniversary Awards for Corporate Governance

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Year 2016

Euro money Awards Best Bank in Pakistan 2016

1st Pakistan Banking Awards Best Bank for Corporate Finance & Capital Market
Development
Finance Asia Country Awards Best Bank in Pakistan 2016
ICAP and ICMAP 1st - BCR Award 2015 - Banking Sector
Asia money Awards Best of the Best Domestic Bank
First Global Awards Most Innovative Investment Bank for Islamic Finance
Assets AAA Country Awards Best Micro Finance Deal for National Rural Support Program

Year 2015

CFA 12th Excellence Awards Most Stable Bank of the year 2014
Finance Asia Country Awards Best Bank in Pakistan 2015
ICAP and ICMAP 1st - BCR Award 2014 - Banking Sector
SAFA Awards Winner of Best Presented Annual Accounts 2014 - Banking Sector

Year 2014

The Asset Triple A Best Bank - Pakistan

The Asset Triple A Best Domestic Bank - Pakistan
CFA 11th Excellence Awards Best Bank of the year 2013 – Large Bank
CFA 11th Excellence Awards Most Stable Bank of the year 2013
Asia money Awards Best of the Best Domestic Bank
The Asian Banker (USA) Strongest Bank in Pakistan 2014
ICAP and ICMAP 1st - BCR Award 2013 - Banking Sector
SAFA1st Runner up - BCR 2013 in Banking Sector Category

Year 2013

The Asset Triple A Best Domestic Bank - Pakistan

The Asset Triple A Best Islamic Deal
ICAP and ICMAP 1st - BCR Award 2012 - Banking Sector

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LK Domain Registry Sri Lanka Best Website Award

Lanka Clear Pvt. Limited T+1 Cheque Clearing Award

Year 2012

The Asset Triple A Best Domestic Bank - Pakistan

Euro money Best Bank in Pakistan
NFEH CSR Business Excellence Award “Best Media Coverage”
ICAP and ICMAP 2nd Best Corporate Report Award 2011- Banking Sector
World Finance Best Commercial Bank - Pakistan
Pakistan Centre for Philanthropy PCP Corporate Philanthropy Award

Year 2011

CFA Association Pakistan Most Stable Bank of the Year

CFA Association Pakistan Best Bank of the Year
Euro money Best Bank in Pakistan
ICAP / ICMAP 1st - BCR Award 2010 - Banking Sector
SAFA Joint 2nd Runner-up for BCR 2010

Year 2010

The Asian Banker Strongest Bank in Pakistan

The Asian Banker Leadership Achievement Award
MMT Best Bank Led MMT Service
ICAP / ICMAP 1st - BCR Award 2009 - Banking Sector
SAFA Certificate of Merit Award for BCR 2009

Year 2009

Asia money Best Domestic Bank in Pakistan

The Asset Best Domestic Bank in Pakistan

Year 2008

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Euro money Best Bank in Asia

Euro money Best Bank in Pakistan
Asia money Best Domestic Bank in Pakistan

Year 2006

Euro money Best Bank in Pakistan

Year 2005

Euro money Best Bank in Pakistan

Asia Money Best Domestic Commercial Bank in Pakistan

Year 2004

Euro money Best Bank in Pakistan

Asia Money Best Domestic Commercial Bank in Pakistan

Year 2003

Euro money Best Bank in Pakistan

Year 2001

Euro money Best Bank in Pakistan

Year 2000

Euro money Best Domestic Bank in Pakistan

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FINANCIAL ANALYSIS OF MCB

“RATIO ANALYSIS”

Ratio analysis is an important and old technique of financial analysis. Ratios are important and helpful
in the reference that:

These simplify the comprehension of financial statement and tell the whole story of changes in the
financial conditions of the business.

These provide data for inter firm comparison. The ratios highlight the factors associated with
successful and unsuccessful firms, also reveal strong and weak firms.

These help in planning and forecasting these can assist management in its basic functions of
forecasting, planning, coordination and control.

These help in investment decision in case of investor and lending decision in case of Bankers
etc.

However, the ratios are only indicators, they cannot be taken as final regarding good or bad
financial position of the business other things have also to be seen.

Great care is needed while calculating meaningful ratios and in interpreting them.]Although there are
several ratios, which an analyst can employ yet the type of ratios he would, use entirely
depends on the purpose for which the analysis is done i.e., a creditor would keep him
abreast about the ability of a concern to cover up its current obligations and so would care about
current and liquid ratios, Turnover of receivables, coverage of interest by the level of earnings etc.

ADVANTAGES OF RATIO ANALYSIS:

It help to give comprehensive financial statements in evaluating aspects of any undertaking in respect
of financial health, operations efficiency and profitability. It gives a chance of inter firm comparison to
measure efficiency and helps management to resort to some remedial measures. It provides a good
help in decision making for investors and the financial institutions.

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LIQUIDITY RATIOS:

The liquidity of a firm is measured by its ability to satisfy its short-term obligations as they come due.
Liquidity refers to the solvency of the firm’s overall financial position i.e. the ease with which it pays its
bills. Due to low or declining liquidity firm moves towards financial distress and bankruptcy.

CURRENT RATIO:

The current ratio, one of the most commonly cited financial ratios, measure the

firm’s ability to meet its short term obligations.:

RESULT:

From the above ratios it is clear that the firm’s investment in current assets has increased. In 2011it is
in better position to pay its obligations as they come due. But in three years we can see that the
firm has the ability to pay its current liabilities efficiently. The standard for this ratio is 2:1 it is
calculated by the current assets by total of the current liabilities.

This ratio is below the standard. The management should take steps to improve the short term
financial position of the firm.

DEBT RATIO:

The debt position of a firm indicates the amount of other people’s money being used to generate
profits. In general, the financial analyst is most concerned with long term debts, because these
commit the firm to a stream of payment s over the long run.

The debt ratio measures the proportion of total assets financed by the firm’s creditors. The higher
this ratio the greater the amount of other people money being used to generate profit.

VERTICAL ANALYSIS:

In vertical analysis each item of a financial statement is presented as a % age of the total of items or
some other suitable items.

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HORIZONTAL ANALYSIS:

In vertical analysis each item in financial statement of the last year is considered as a base of the
same items.

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SWOT Analysis

There are two part of SWOT Analysis

1. Internal Analysis

2. External Analysis

Internal Analysis

Strengths:

The strengths of MCB Bank are the following:

1. MCB is the first Pakistani privatized bank because of its quality management, marketing,
innovation in product and services is performing well in financial market.

2. It has created a good reputation in the banking sector.

3. It has 1200+ branches on different places in Pakistan.

4. It has one of the nation’s largest ATM network with more than 500 ATMs covering 110 cities
across the country and it is still growing.

5. It provides MCB mobile ATM for convenient world class banking services. Internship

Weaknesses:

1. Mismanagement of time is the biggest mistake in MCB branches that the official time of bank
closing is 5:30pm but the staff is normally on their seats till 7:00pm to 9:00pm.

2. Due to the lack of advertisement majority of the people are not well aware about the products of
MCB.

3. There is lack of specialized skill because of rotation policy of human resource management.

4. Most of the staff and employees are dissatisfied due to low salaries as compared to same position
in other banks.

5. It is also seen that the staff complain about over loaded of work. It is the reason that turnover ratio
of MCB is increasing.

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6. MCB has numbers of employees of the period when the MCB was nationalized bank they cannot
perform their duty as like employees in other banks. They always show rude attitude that is not much
motivating for new customer.

7. There is lack of skills and training of employees.MCB have to gave attention to improve the skills
and abilities of the employees according to modern banking requirements. Internship Report on MCB
bank

External Analysis

Opportunities:

1. MCB bank can capture big portion of the market by expanding their branches and ATM network to
other countries.

2. MCB has to launch some new product or services like tale bank and internet banking etc.

3. Media is powerful tool of communication.MCB have to use it for advertisement of new product and
severs provided by MCB bank. By adverting MCB can create more new customers.

4. MCB bank has to start some kind of Social services or for culture benefit. By doing this it can
motivate its customer that you are contributing in this services by parching and using MCB services.
s5. Now the concept of Islamic banking is increasing in Pakistan. There is opportunities that by
creating Islamic branches all over the country and fallow Islamic structure in those branches. It should
also create Islamic product for customers.

Threats:

1. In Pakistan the banking sector is growing rapidly and it has attracts the business men to enter in
banking sector. Some foreign banks have started their business in Pakistan. Now MCB bank has to
compete with great effort by giving superior services.

2. From few years Pakistan is facing a lot of problems like energy crisis, rising prices of product.
Govt. of Pakistan is borrowing money from State Bank of Pakistan and from commercial banks also
and due to lack of money to give to depositor many banks can cause to bankrupt.

3. Foreign banks are increasing in Pakistan 4. Foreign banks are providing attractive and new
services to MCB customer. Internship Report on MCB

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“PEST ANALYSES”

PEST analyses tell How Political, Economic, Social and technological factors affect MCB. These are
the external factors which affects the whole organization.

POLITICO-LEGAL FACTORS:

Stable government

Stable policies in favor of business

Improved relation with outside world

Law and order.

UNSTABLE GOVERNMENT:

Due to this reason foreigners hesitate to invest their savings in banks, as a result of economy of our
country is going downward and banks suffer.

ADVERSE LAW AND ORDER SITUATION:

The situation of law and order is adverse. The policies are not very handy and beneficial for the
country. The Govt. passes such rules which are not in the favour of bank e.g. The Govt. of Pakistan
has passed a rule that if anyone withdraws more than Rs.25000 then he will be charged 0.30% on
withdrawal.

ECONOMIC FACTORS:

Pakistan's economy is going weaker and weaker. 9/11 has a great influence on the economic crisis of
all over the world. With economic factors the bank influenced very much that are as under:

Impact of WTO force to cost reduction methodology.

Low interest rate

Inflation

Low GDP growth

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SOCIAL FACTORS:

Social environment includes family, friends, a person's role and status. An individual’s life directly by
society and the person acts according to his or her society. Cultural environment includes norms,
values, religion, conception and perception.

If we see the religion point of view then interest is not allowed that's why most of the people hesitate
to invest their savings in banks and yet they are not aware of ISLAMIC BANKING.

Traditional business men do not like the business with bank. They pay their creditors through cash
not through cheque. They do not want to get the bank facilities.

TECHNOLOGICAL FACTORS:

Today is the era of technology. In the every aspect of life technology plays an important role.

 Due to rapid change in technology every bank has to change its technology
to compete other ones.

 Increasing issue of securities due to technology resulted increase in

cybercrime. Cybercrime means manipulation. One person can easily
transfer amount from any other's account to his account.

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“SUGGESTIONS & RECOMMENDATIONS”

Following are some suggestions for MCB Bank Limited.

ADVERTISING:

Bank must let potential customers know that all attractions for banking exist. This is done by
advertising on television and obtaining press coverage, in conjunction with direct mail, window
displays, leaflet in branches and in appropriate other locations (such as hotels, shops, etc.) and
including leaflets in statement of accounts sent to existing customers in the hope that they will tell
potential customers about the services provided by our bank.

INCREASED ATM’S LOCATIONS:

Some personal sector customers prefer not to come to branch. They increasingly want to deal with
the bank in other ways, such as home banking or use of Automated Teller Machines (ATMs), which
need to be at every branch or some important shopping plazas and airports etc.

INCREASED SERVICES:

One way to retain the customers is to offer a wide range of services such as tax advice, free life
insurance equivalent to amount deposited, shares portfolio management, fund management facility,
etc., complimentary to the core services. Banks must have a slightly different mix of services and
mean of providing these such that customers can choose the mix that suits them best.

MANAGEMENT OF TIME:

There should be a good management of time for the sake of employees i.e. offering them free break
hours instead of making them work in this time as well.

GROWTH SCOPE FOR EMPLOYEES:

MCB should provide greater facilities to its employees, and give them bonuses for their hard work and
Promotions as well. There is a criticism on the banking management that the salaries of the
employees are decreasing in every succeeding year. And I think this will shake the confidence and
working habit of the employees

BANKING PROFESSIONALS:

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The bank should hire banking professionals having experience in their respective fields that will boost
the performance of the company as currently MBAs are produced for this field so they should be hired
for enhancing the performance of company.

ATTRACT CUSTOMERS:

The banking company should offer such policies which would attract customers which are denied by
other banking in the market.

JOB ROTATION AND PROMOTIONS:

Most of the bank employees, are sticking to one seat only with the result that they become master of
one particular job and lose their grip on other banking operation. In my opinion all the employees
should have regular job experience all out-look towards banking. The promotion policy should be
adjusted

COMMUNICATION SYSTEM FOR EMPLOYEES:

As such system should be designed that every employee who has some problems with his officers
can communicate it to the higher management and some steps must be taken to improve that.

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“REFERENCES & RESOURCES”

To make this internship report data is taken from the following resources:

ONLINE RESOURCES:

Muslim Commercial Bank, Ltd http://www.mcb.com

Muslim Commercial Bank Pakistan http://www.mcb.com/pakistan

State Bank of Pakistan http://www.sbp.org.pk

Statistical Bureau of Pakistan http://www.fbs.gov.pk

Interview with key persons at MCB, Bank Limited Grain Market Branch Sahiwal.

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