The Banking Sector

A little earlier before the creation of country, the role of Muslims of the areas which were later
included in Pakistan was of no significance due to their restricted participation in the banking
sector. There was only a small bank namely Australasia Bank having a few branches in Lahore
In 1942, the Australasia bank was housed in a garrage of a trader of Lahore who used to trade at a
small scale with Australia during that period. However the only Bank was run by the Muslims of
the sub-continent was Habib Bank which was established in 1941. At that time Quaid-e-Azam
Mohammad Ali Jinnah expressed his desire that another Muslim bank also be established in
Calcutta which came into reality when Adamjee with the assistance of Isphanis established
Muslim Commercial Bank a few months before the creation of Pakistan in Calcutta. When
Pakistan came in to being The Habib Bank shifted its Headquarters from India to Karachi. A few
of Habib Bank's branches were already in operation in Pakistan. The Muslim Commercial Bank
also moved its headquarters from Calcutta to Dhaka and later on to Karachi. At the time of
independence, another small bank namely Bank of Bahawalpur also started business from
Bahawalpur from December 1947.
By SHUJAT ALI BAIG

Banking is one of the most sensitive businesses all over the world. Banks play
very important role in the economy of a country and Pakistan is no exemption. Banks are
custodian to the assets of the general masses. The banking sector plays a significant role
in a contemporary world of money and economy. It influences and facilitates many
different but integrated economic activities like resources mobilization, poverty
elimination, production and distribution of public finance. It is purchase of car or
building of a home banks are always there to serve you better. It is play ground or any
educational or healthy societal activity the money of banks nurture them. It is an
industrial project or agricultural development of the country the sponsor-ship of banks is
very much involved. Banks play very positive and important role in the overall economic
development of the country.

Profiled in our top 10 feature last year, MCB (formerly Muslim Commercial Bank) is one
of the leading banks in Pakistan and continues to grow strongly. Like many of its peers, it
has a convoluted history – formed at partition in 1947, nationalised in 1974 and
privatised in 1991 – but has emerged as one of the most professional outfits in the region,
acting as something of an ambassador for the country when it launched a successful
global depository receipt issue in 2006. equity – 32.5%

FINANCIAL PLANNING
Financial planning is the process of meeting your life goals through the proper management of you finances.

• Financial planning intro Develop a plan that meets your personal goals.
• Saving Manage your finances and start saving for your future goals.
• Investing Let the market work for you and grow your assets.
• Retirement Start planning today to ensure a comfortable
retirement.
• Insurance Take steps to manage your financial risks.
• Estate planning Provide security and stability for those you leave behind.
• Net worth & Personal budget Determine your net worth and get a handle on your finances.

COMPETITORS

PRIVATE BANKS

1. MCB BANK LIMITED

2. JS BANK LIMITED
3. ALLIED BANK LIMITED =
4. KASB BANK LIMITED
5. ARIF HABIB BANK LIMITED
6. THE ROYAL BANK OF SCOTLANDLIMITED
7. ASKARI BANK LIMITED
8. MYBANK LIMITED
9. ATLAS BANK LIMITED
10. NIB BANK LIMITED
11. BANK ALFALAH LIMITED
12. SAUDI PAK COMMERCIAL BANK LIMITED
13. BANK AL HABIB LIMITED
14. SONERI BANK LIMITED
15. CRESCENT COMMERCIAL BANK LIMITED=
16. STANDARD CHARTERED BANK (PAKISTAN) LIMITED
17. FAYSAL BANK LIMITED
18. UNITED BANK LIMITED
19. HABIB BANK LIMITED

PUBLIC SECTOR BANKS

1. FIRST WOMEN BANK LIMITED =

2. THE BANK OF KHYBER
3. NATIONAL BANK OF PAKISTAN
4. THE BANK OF PUNJAB
 ISLAMIC BANKS

1. BANKISLAMI PAKISTAN LIMITED

2. EMIRATES GLOBAL ISLAMIC BANK=
3. DAWOOD ISLAMIC BANK LIMITED
4. MEEZAN BANK LIMITED
5. DUBAI ISLAMIC BANK PAKISTAN LIMITED=

FOREIGN BANKS

1. ALBARAKA ISLAMIC BANK B.S.C. (E.C.), =

2. THE BANK OF TOKYO-MITSUBISHI UFJ LIMITED - PAKISTAN
OPERATIONS=
3. CITIBANK N.A. - PAKISTAN OPERATIONS =
4. HSBC BANK MIDDLE EAST LIMITED – PAKISTAN
5. DEUTSCHE BANK AG - PAKISTAN OPERATIONS=
6. BARCLAYS BANK PLC =
7. OMAN INTERNATIONAL BANK S.A.O.G – PAKISTAN OPERATIONS=

DEVELOPMENT FINANCIAL INSTITUTIONS

1. HOUSE BUILDING FINANCE CORPORATION

2. PAKISTAN KUWAIT INVESTMENT COMPANY LIMITED
3. PAK BRUNEI INVESTMENT COMPANY LIMITED
4. PAK OMAN INVESTMENT COMPANY LIMITED
5. PAK IRAN JOINT INVESTMENT COMPANY
6. SAUDI PAK INDUSTRIAL & AGRICULTURAL INVESTMENT
COMPANY LIMITED
7. PAK LIBYA HOLDING COMPANY LIMITED
8. CHINA INVESTMENT COMPANY LIMITED

SPECIALIZED BANKS

1. INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN

2. THE PUNJAB PROVINCIAL COOPERATIVE BANK LTD
3. SME BANK LIMITED
4. ZARAI TARAQIATI BANK LIMITED

MICRO FINANCE BANKS / INSTITUTIONS

1. KHUSHHALI BANK LIMITED

 2. ROZGAR MICROFINANCE BANK LIMITED
3. NETWORK MICROFINANCE BANK LIMITED
4. TAMEER MICRO FINANCE BANK LIMITED
5. PAK OMAN MICROFINANCE BANK LIMITED
6. THE FIRST MICRO FINANCE BANK LIMITED

Introduction of top four COMPETITORS of

MCB(high market shareowner)

HBL was the first commercial bank to be established in

Pakistan in 1947. it values are the fundamental principles that define our culture and are
brought to life in our attitudes and behaviour.

Today, HBL has more than 1,425 branches all over Pakistan and presence in 26
countries across five continents. With a revamped customer oriented
philosophy, we are pursuing new avenues of leadership through innovation, as
we gear up to face the challenges of the new millennium.

National Bank of Pakistan

maintains its position as Pakistan's premier bank determined to set higher standards of
achievements. It is the major business partner for the Government of Pakistan with special
emphasis on fostering Pakistan's economic growth through aggressive and balanced
lending policies, technologically oriented products and services offered through its large
network of branches locally, internationally and representative offices.

United Bank

An
other major Pakistani bank. It enjoyed 14% growth in assets to PRs498 billion (US$7.9 billion) and
13% growth in advances to PRs288.7 billion between December 2006 and September 2007, although
full-year headline profit numbers are likely to end up looking weak after the bank changed its method
of calculating provisions in order to come in line with new State Bank of Pakistan requirements. This
will have a full year impact of PRs3.95 billion to the total portfolio, split between the last two quarters
of the year; United is the first bank in Pakistan to take the charges into its accounts. United Bank,
Pakistan – 24.8%
 ALLIED BANK OF PAKISTAN
Allied Bank Limited was the first bank to be established in Pakistan. It
started out in Lahore by the name Australasia Bank before independence
in 1942; was renamed Allied Bank of Pakistan Limited in 1974 and then
Allied Bank Limited in 2005.

In August 2004, because of capital reconstruction, the Bank’s ownership

was transferred to a consortium comprising Ibrahim Leasing Limited and
Ibrahim Group.
Today, with its existence of over 60 years, the Bank has built itself a
foundation with a strong equity, assets and deposit base. It offers
universal banking services, while placing major emphasis on retail
banking. The Bank also has the largest network of over 700 online
branches in Pakistan and offers various technology-based products and
services to its diverse clientele.

HIGH MARKET SHARE OWNER IN BANKING

INDUSTRY

“YOUR TRUST AND OUR COMMITMENT ALWAYS AN AWARD WINNING

COMBINATION”

MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion
and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the
reputation of a solid and conservative financial institution managed by expatriate
executives. In 1974, MCB was nationalized along with all other private sector banks.
This led to deterioration in the quality of the Bank’s loan portfolio and service quality.
Eventually, MCB was privatized in 1991.
During the last fifteen years, the Bank has concentrated on growth through improving
service quality, investment in technology and people, utilizing its extensive branch
network, developing a large and stable deposit base and managing its non-performing
loans via improved risk management processes.
Vision Statement
Challenging and Changing the Way you Bank.

Mission Statement
MCB Bank’s team of committed professionals is dedicated to
maintaining long term customer relationships through outstanding
service and convenience.

AWARDS & ACCOLADES

Euromoney Awards
Best Bank Award 2008

Best Bank Award 2006

Best Bank Award 2005

Best Bank Award 2004

Best Bank Award 2003

Best Bank Award 2001

Best Domestic Bank Award 2000

Asia Money Award

Best Domestic Commercial Bank Award 2005

Best Domestic Commercial Bank Award 2004

MCB TOWER

A Vision of the Future

The modern, urbane architecture and
intelligent design of MCB Tower reflect
MCB’s pioneering role in the banking arena,
providing cutting edge, innovative banking
solution- leading with an edge of technology.

REASONS FOR
BEING A MARKET
LEADER:
PRODUCT AND SERVICES THAT GIVE MCB A COMPETITIVE
ADVANTAGE:
1.MCB VISA
MCB Visa is not just another card in your wallet. It not only provides the conventional
credit card services in a manner that is superior in comparison, but goes an extra mile.
Makes MCB Visa the most affordable credit Card in your wallet.
MCB VISA offers you a wide range of products that will cater to your diversified taste
perfectly
Intelligent Reward Monitoring and Redemption System.
Buy now and pay off latter in easy and affordable monthly installments!
Saving you from the hassel of making multiple payments on your various credit cards
You need cash and want to pay back in installments. Just Dail for iit!
Life is too precious to be spoitt by unforeseen events and misphas.
How About a credit card that acts like hard cash
Now Experience peace of mind of having a credit card free from fraud or misuse!

2:SMART CARD
MCB now brings you MCB SmartCard -a secure and convenient instrument of payment
with unmatched functionalities. It provides 24-hour direct access to your bank account.
The convenience and flexibility of MCB SmartCard will help you live a smarter life. It
not only helps you manage your expenses, but also eliminates undue interest on your day
to day credit card transactions. Your balance is always within your reach and you spend
accordingly.
MCB is the only bank to introduce a debit card that gives the option to choose from
domestic and international cards for local and global usage respectively. You can avail the
following functionalities on your MCB SmartCard.

3TRAVELER'S CHEQUES
MCB Bank has been at the forefront of providing it’s customers with new and innovative
products and financial instruments that are safe, secure and profitable.
MCB Rupee Traveler's Cheques were first
introduced in 1993 as safe cash for traveling and
travel related purposes. The product has been
extremely popular and is preferred over cash by
customers while travelling and in all walks of life.
MCB Rupee Traveler's Cheques- The safest way to
Carry Cash

4 Customer Care:
MCB give great priority to every customer whether industrial or local person. Due to this
priority the have gained the status of being a market leader. Following measures are taken
in order to gain customer trust and loyalty:

4.aMCB VIRTUAL BANKING

MCB Virtual Internet Banking offers you the convenience to manage and control your
banking and finances – when you want to, where you want to. MCB’s Virtual Internet
Banking facility is
- Simple
- Secure
- Free of cost.
With MCB Virtual Internet Banking you can access any of the banking services, 24 hours
a day, 7 days a week and throughout the year

4.b. MOBILE BANKING

At the forefront of technological excellence, MCB proudly introduces MCB MOBILE
BANKING. The convenience of accessing your account balance information and mini
statements whenever you want or wherever you may need them, with comfort and peace
of mind.
MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365
days.

5. MCB ATM SERVICES

Welcome to a world of convenience with the MCB ATM 24- Hour Smart Card. "It
Works. Anytime in Pakistan and abroad."

With an ever growing number of ATMs operating across the nation, the MCB ATM
Network is the largest and most advanced of its kind in the country, and is part of MCB's
continuing efforts to provide you with convenience that suits your requirements most.
And now the MCB ATM has gone global. MCB's affiliation with Master Card
International brings about added facilities for the MCB traveler abroad with the Cirrus
and Maestro networks.

So go ahead! Use your MCB ATM 24- Hour Cash Card day or night, at home or abroad

6 MCB Business Sarmaya

MCB Business Sarmaya' offers running finance facility against your house/flat,insuring a
steady cash flow for your business.So now you can breath easy,becaurse Business
Set....tau Life Set.
7
MCB ‘Pyara Ghar’ is the most sensible option for purchasing, building, or renovating
your new/existing home. It offers you a range of financing options to help you realize
your dreams. After all ", Apna Ghar Pyara Ghar

8 MCB Car 4 U
MCB Car 4 U makes it a breeze to finance/lease your new/used car
Kahin na Kahin tau Hai 1 Car 4 You

9 personal loan
The more you praise and celebrate your life, the more there is in life to celebrate. MCB
Personal Loan shortens the distance between your dreams and your celebrations. It is
designed to be fast, flexible and affordable so that you can live free and Celebrate Life!.

9. Islamic banking:
Another reason for being a market leader is that they
have started an extensive process of providing separate
wide range of product and services of an Islamic Bank
i.e. named MCB Islamic banking Islamic Banking
Division was formed with effect from 1st January 2003,
which in a short span of time, has developed sufficient expertise, necessary
infrastructure, information technology, and manpower to run Islamic Banking
Operation and offer Islamic Banking Products.
DEPOSIT SCHEMES

Al-Makhraj Saving Account

| IANAT Account
| Al-Makhraj Term Deposit R

FUND BASED FACILITIES

MCB offers 2 broad Islamic fund based facilities:

 Ijarah
 Murabahah

UPCOMMING PRODUCTS
 Diminishing Musharika
Equipment Ijarah Housing
Running Finance Musharika
Guarantee
Istisna cum Murabaha
Isisna Post shipment
Istisna Pre shipment
Musawama for DA L/cs

ISLAMIC BANKING PRODUCTS

1. Mudaraba
2. Sharika al-aqd
3. Murabaha
4. Ijarah
5. Ijarah Muntahia Bittamleek
6. Salam
7. Parrallel Salam
8. Istisn’a Contract
9. Parrallel Istisna’a

Mutual fund from MCB

* MCB DYNAMIC CASH FUND

MCB Dynamic Cash Fund (MCB DCF) is an open-end money market fund managed by
MCB AMC. The objective of the fund is to provide attractive returns to short term investors with
a very low appetite for risk while talking into account capital security and quality
considerations.

GROWTH & INCOME UNITS

With MCB Dynamic Cash Fund investors can choose between Growth and Income Units.
Growth Units are suitable for investors who seek capital appreciation with no immediate
liquidity needs.
Income Units are suitable for investors who desire regular income while also preserving capital.
Individuals have an option to redeem profit earned on a monthly, quarterly, half yearly or
yearly basis. income is distributed based on the performance (NAV Growth) of MCB DCF. If there
is no increase in NAV, nothing shall be distributed.

* MCB DYNAMIC STOCK FUND

MCB Dynamic Stock Fund (MCB DSF) is an open-end stock market fund managed by
MCB AMC. The objective of the fund is to provide long term capital appreciation to investors.
From time to time, MCB DSF may invest in short term fixed income

PAKISTAN,S STOCK MARKET PERFORMANCE

With the increasing level of economic growth in Pakistan, the stock market has provided
relatively better returns in longer term as compared to other forms of investment. MCB DSF is
suitable for investors with an investment horizon of 3-5 years

* MCB DYNAMIC ALLOCATION FUND

MCB Dynamic Allocation Fund (MCB DAF) is an open-end asset allocation fund
managed by MCB AMC which allows 0-100% exposures into debt or equity as per market
conditions and discretion of the fund manager. The aim of the fund is to provide investors
with a high absolute return

in the end I may conclude with this that MCB is the best bank in asia for the
reason for effectively and innovatively managing and supervising each and
every product, service and division . they have been able to provide special
product for specific sector that is agriculture, they provided different mutual
funds and a special asset management company and so on there service and
product are nearly countless with efficient and effective management that
enabled it to be number one bank right now in Pakistan.