Executive Summary

The aim of this project was to prepare a stock valuation report for a company and to analyze whether it would be favorable for investors to buy its shares considering the current economic situation in the worlds in general and in Pakistan in particular. The following research has been done on Muslim Commercial Bank Ltd. This report includes a thorough analysis of the banking industry which is currently characterized as being one of the highest growing and best performing sectors of Pakistan. In order to determine whether it would be profitable for investors to buy the stock of MCB, we conducted, in depth Fundamental and Technical analysis. The fundamental analysis includes the trends in various financials of the company such as sales, profits etc. Furthermore this analysis includes a detail ratio analysis which further provides insight into the performance of the bank. Also the intrinsic value of MCB was calculated in order to determine whether its price was over or under stated in the market. The technical analysis includes studying the price trend of MCB over the past few years and with the help of moving averages and Bollinger bands the decision to buy or sell MCB stock was made. After conducting the fundamental and technical analysis, it was concluded that it would be favorable for investors to buy the stock of MCB. The reasons supporting this decision include increasing trends in Profit Margins and Earnings per Share (EPS) of the company. Furthermore MCBs dividend payout ratio has been on the rise giving another signal to potential investors to buy its share. The intrinsic value calculation also shows that MCBs price is undervalued in the market and is most likely to rise. Last but not the least the technical analysis charts also gives a buy signal to investors.

MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan, with a network of over 900 branches, over 750 of which are Automated Branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch.. MCB has been awarded as a Euromoney Award 2008 for the "Best Bank in Asia" The Chairman of MCB is Mian Mohammad Mansha and the President / CEO is Mr. Atif Aslam Bajwa. 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. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 60 million. 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. MCB has become the only bank to receive the Euromoney Award for the fourth time in the last five years. MCB won the Best Domestic Bank Of Pakistan in 2005,2004,2003,2001,2001 and Also in 2008. In addition MCB also has the distinction of winning the Asia money 2005 & 2004 awards for being the The best domestic commercial bank in Pakistan . Ten years after privatization MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth. The bank was restricted its asset portfolio and nationalized the cost structure in order to remain a low cost producer. In this report various aspects of the bank including its products, services ,financial services, consumer banking, corporate banking and profitability have been studied.

I have learnt a lot in KOT KHAN MUHAMMAD BRANCH about Opening of Accounts, Clearing and Transferring of Cheques, Issuing the Cheques Books, Demand Drafts other Documents etc. The exposure has given me a lot of knowledge especially about consumer banking operations in branch. Bank was previously working on MIBs software I went the branch of Muslim Commercial Bank for my internship training . It is a part of our MBAs training at well established organization. Bank is well suitable for it. This branch is opened in 2008. This branch is situated at Satiana road Faisalabad. Major customers of this branch are businessman, employees of diffirent pulic and privete organizations, salaried and non salaried persons.

INTRODUCTION KOT KHAN MUHAMMAD BRANCH FAISALABAD

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I went the branch of Muslim Commercial Bank for my internship training . It is a part of our MBAs training at well established organization. Bank is well suitable for it. This branch is opened in 2008. This branch is situated at Satiana road Faisalabad. Major customers of this branch are businessman, employees of diffirent pulic and privete organizations, salaried and non salaried person

Majority of accounts are PLS, current and BBA account, enhance saving account and saving extra account. Total worth of accounts opened in this branch = 50000000 This branch has diffirent accounts: 300 BBA Account whose worth = 18138000 269 PLS Account whose worth = 16263740 238 Current account whose worth = 14389480

BENEFITS OF ACCOUNTS:
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1. BBA ACCOUNT Open a Basic Banking Account with as little as Rs.1000/- only. No monthly account maintenance charges. Two free deposits per month (including cash and clearing).* Two free withdrawals per month (including cash and clearing).* Unlimited free withdrawal transactions through MCB 's ATMs. Unlimited transactions through Virtual Banking. Use your MCB Smart Card to shop at thousands of merchant outlets across Pakistan

2. L o w m i n i m u m b a l a n c e

CURRENT ACCOUNT

r e q u i r e m e n t s . Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide. Use your MCB SmartCard to shop at thousands of merchants across Pakistan. Lockers and other affordable transactional facilities.

3.

SAVINGS ACCOUNT

Low monthly average balance requirements.

P r o f i t p a i d i n 6

t o y o u r a c c o u n t e v e r y s i x m o n t h s . Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide. Use your MCB SmartCard to shop at thousands of merchants across Pakistan. Locker facility at economical rates.

SERVICES OFFERED BY KOT KHAN MUHAMMAD BRANCH

Following are some products of KOT KHAN MUHAMMAD BRANCH that are

introduced by Musing Commercial Bank after privatization. 1) MCB RUPEE TRAVELLER CHEQUE: MCB Rupee Travelers Cheques are as good as cash, infact better. Better because with Rupee Travelers Cheques you have the power to purchase and a feeling of security that should you lose them, you will get a refund. MCB Rupee Travelers Cheques are accepted at major shops, travel agents, hotels, business establishments and MCB branches all over Pakistan. You don't have to be an MCB 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 Travelers Cheques rather than money. 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. SALIENT FEATURE: a) Minimum amount of investment shall be Rs.0.010m and the maximum amount of investment would be Rs. 1.000m. b) Khushali Certificates can be purchased by individuals (singly or jointly) or by the Proprietorship/Partnership concerns or Companies, etc. in their name c) The Khushali Certificate will be of five years maturity. d) The interim rate of profit offered will be minimum 1% per month. If the profit declared by the bank is higher, additional profit will be paid. e) Zakat will be deducted wherever applicable on yearly basis whether you will be receiving your profit or encashing your certificates. f) As per Government Directions, tax on the profit / return is to be deducted by MCB

branches at the time of payment. 3) MCB KHUSHALI BACHAT ACCOUNT: FEATURES: a) 8% rate of return per annum. b) Returns calculated on daily. c) Average balance and paid half yearly. d) Introduced first time in Pakistan. e) The facility of helping account holders pays utility bills (electricity, telephone and gas) through their account. No queues. No delays.

4) PRIME CURRENCY ACCOUNT SCHEME: Launched to attract deposits in foreign currencies. US Dollars, Pound Sterling, Euro and Japanese Yen. FEATURES: a) Owing foreign currency account under the Prime Currency Scheme allows you to earn attractive rates of interest in foreign currency. b) You have a choice between opening this account in your personal name and opening it under joint names. c) Whether you are a resident or a non-resident Pakistan, MCB Prime Currency Scheme invites all to operate a foreign currency account. d) Foreign nationals and foreign companies can also open a foreign currency account under the Prime Currency Scheme. e) Your foreign currency account can be opened in four global currencies: The United States Dollar, the Pound Sterling, the Japanese Yen and the Euro. f) Travellers Cheques and Foreign Currency Notes can also be issued to holders of persona! and Joint accounts.

g) Remittance from abroad, Travellers Cheques, Foreign Currency Notes and Foreign Exchange generated by encashing F.E.B.Cs may be deposited in these accounts. h) Rupee Loan facility will also available against this account. i) You can draw any amount of foreign exchange from your foreign currency account and transfer or remit the amount freely to any part of the world without any restrictions. j) The restrictions imposed by the State of Pakistan for the opening of foreign currency accounts in case of passport; Work-permit and resident Visa have been withdrawn. Your account will be restriction free. k) The Prime Currency Scheme is exempt from al! forms of taxes including Income Tax, Wealth Tax and Zakat deductions. l) MCB Prime Currency Scheme is a world in itself. MCB - committed to working for your convenience - offers the foreign currency account facility at more seventy of its branches all over Pakistan. 5) HAJJ MUBARAK SCHEME A saving scheme, of 2/3 years duration, for the convenience of persons, with a limited income, who desire to perform Hajj was introduced. Under the 2 years scheme, a monthly deposit of Rs.1800 is required, whereas under the 3 years scheme, the required monthly deposit is only Rs.1200. 6) CAPITAL GROWTH CERTIFICATE SCHEME: For long term depositors 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 certificate, the depositor will profit at the same rates as that of PL Saving Account. 7) FUND MANAGEMENT SCHEME This scheme is offered to corporate and customers and is aimed at providing better rate of

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return up to 15% per annum. One of the objectives of the scheme is to develop secondary market for Government Securities. 8) CONSULTANCY SERVICES: In the process of privatization of public sector units, prospective buyers need professional assistance and MCB, with its expertise, offers to them specialized service for valuation of the market value of the industrial unit, preparing bid documents and arranging finance for the purchase of the unit.

9) SELF SUPPORTING SCHEME: For the benefits of genuine worker/borrowers who are poor and needy and for small entrepreneur the bank as evolved a self supporting scheme: maximum amount of loan Rs.25000 and minimum Rs.5000 per individual. Loan will be totally free of mark-up. 10) FAX PRESS This product was first of its kind introduced by using modem technology of The Fax Machine. It facilitates speedy transfer of funds within Pakistan. The service guarantees transfer of from one city to another, within an hour.

11) NIGHT BANKING SERVICE:

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For the convenience of the account holder, service has, especially, been introduced at busy commercial centers. Traders and other clients can now make deposit, with case, at such centers up to 8.00PM. 12) UTILITY BILLS COLLECTION With the aim of extending this service to wider range of customers, the number of MCB branches collecting Utility Bills more than 900. 1. MCB Mobile 2. Islamic Banking Services

13. MCB MOBILE Banking at your fingertips. Dial in anytime to get information regarding balance and mini statements. MCB Mobile is a brand new way to check your account balance, view your ministatement and do the following:

Recharge Prepaid Mobile Connections Pay Postpaid Mobile Bills Pay Utility Bills Transfer funds instantly (to any MCB account) Pay MCB Credit Card Bills Make Donations and lots more

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Services
Balance inquiry You can retrieve your account balance for your linked account. Mini-Statement You can view the last six transactions on your linked bank account at any time of the day or night, making it easier for you to manage your money. Fund Transfers You can send money to anyone with an MCB Bank account. (Beneficiary does NOT have to be a registered MCB Mobile user). You can do this by providing the complete 16-digit MCB account number or the 13 digit ATM card number of the beneficiary. Purchase Top-ups for Prepaid Connections You can now conveniently purchase prepaid airtime and top-up the credit in your or someone elses mobile phone for all of following mobile connections:

Mobilink

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UFone Zong Warid Zem Telenor

Pay your Postpaid Mobile bills You can forget about the hassle of paying your post-paid mobile bills through customer service centers. Pay your post paid bills through MCB Mobile conveniently at anytime for any of the following mobile companies:

Mobilink UFone Zong

You will need to pay the bills of the following mobile companies through electronic prepaid voucher/scratch card:

Warid Telenor

Pay your Utility Bills MCB Mobile allows you to make payments for a host of utility companies, schools and

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clubs among other recurring payment services. Currently supported companies are:

KESC - Karachi Electricity Supply Company HESCO - Hyderabad Electricity Supply Company SSGC - Sui Southern Gas Company SNGPL - Sui Northern Gas Pipeline PTCL - Pakistan Telecom Communications Limited IESCO - Islamabad Electric Supply Company

Make your MCB Visa Credit Card Payments You can now make your MCB Visa Credit Card payments easily through this service. You have the option of paying a minimum payment, more than minimum or the full amount. Maintain Favorites Registered MCB Mobile users can manage their favorite payees i.e. add or remove utility companies or individual account holders to whom payments and fund transfers are made frequently. Report a Lost ATM card Registered MCB Mobile users can report their card as lost using the service. The ATM card will automatically be de-activated for a period of 24 hours. Make Donations You can make donations to your favorite charities through this service in a matter of seconds. Donations to the Prime Ministers Fund of Internally Displaced Persons are being accepted. More charities will be added in the near future. 14. PYARA GHAR Flexible and competitive home financing facility with options of home purchase,

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construction and renovation. 15. ISLAMIC BANKING SERVICES Islamic banking services through exclusive units/branches offering a range of liability and asset based Sharia compliant products like Musharika, Murabaha, Ijara and Istasana. 16. MCB CAR CASH Car financing and leasing at competitive rates with flexible options Carcash finances both semi-commercial and non-commercial vehicles for personal and business use.

17. MCB LOCKERS The best protection for your valuables. Lockers of different capacities are available nationwide.

18. SYMBOLS In the year 2004 bank introduced new latest software SYMBOL. Now most of the branches located in Karachi, Lahore and Islamabad regions are working on SYMBOL software. MCB is the leading entity of the country that has always been at the forefront of economical, technological, financial growth and stability.

19. SAVING EXTRA

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Grow with MCB Xtra by saving more and earning greater profit.MCB Savings Xtra Account offers you a wide range of attractive profit rates.

20. BANCASURANCE To keep ur loved one secures

PRODUCTS: FLEXILIFE LIFE PARTNER EDU CARE DREAM WEDDING CAPITAL SURE RETIRE EASY INCOME MAX STEP UP

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ABOUT MCB
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. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 60 million. 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.

Introduction:
MCB Ltd formerly known as Muslim Commercial Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited company. The bank was established with a view to provide banking facilities to the business community of the sub-continent. The bank was nationalized in 1974 during

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the government of Zulfikar Ali Bhutto. This was the first bank to privatized in 1991 and the bank was purchased by a consortium of distinguished Pakistani corporate groups led by Nishat Group. As of June 2008, the Nishat Group owns a majority stake in the bank. The president of the bank is Mr. Atif Bajwa (previously with Citibank). Founded in 1948, Nishat Group is one of the leading and most diversified business groups in Pakistan. The group has strong presence in the most important business sectors of the country such as banking, textile, cement and insurance. Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played instrumental role in its success. In recognition of Mr. Manshas contribution, the Government of Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the country. MCB is Pakistans fourth largest bank by assets having an asset base of US$6.7 billion, and the largest by market capitalization having a market capitalization of US$4.1 billion. The Bank has a customer base of approximately 4 million and a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 160 million. The Muslim Commercial Bank Limited (MCB) has been declared the best bank in Pakistan by the prestigious Euro-money Awards for excellence 2003. President MCB Muhammad Aftab Manzoor received the award at a grand ceremony for global awards on Saturday at the Natural History Museum London, Neil Osborn Managing Director Euro-money Institutional Investors PLC presented the award. Leadership in Technology, initiatives in new products and growth in balance sheet have led to sustained overall improvement in operations with a positive impact on financial strength, customers franchise and brand equity. MCB operates the largest network of 170 ATMs and offers the widest range of transactions to its ATM, Debit cardholders. The convenience of using ATM, Debit card is

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available on the growing network of Point of Sale (POS) machines at retail outlets. Mobile Phone Banking is another unique free service being offered by the bank. The new core banking solutions is also under implementation, which would help in cost effective products delivery to customers including e-banking. Besides, recently introduced products in Customer Financing, Islamic Banking and Cash Management are focused on meeting the needs of the diversified customer base of MCB.

Established over fifty years ago MCB. It is the largest private commercial bank in the country with a network of around 1000 branches of which 750 are automated and 250 online. MCB Bank Limited is Pakistans fourth largest bank by assets having an asset base of US$ 6.7 billion (approximately Rs. 300 billion), and the largest by market capitalization of US$4.1 billion. MCB Bank has a customer base of approximately 4 million which in turn gives the bank a deposit base of nearly Rs. 250 billion. MCB has a nationwide distribution network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs in 41 cities nationwide with a network of over 12 banks on the MNET ATM switch. MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clients includes public sector, companies as well as large local and multinational concerns. The Banks Rupees Travelers Cheques have been market leaders for the past seven years. In 2005, the management of the bank changed its name from Muslim Commercial Bank Limited to MCB Bank Limited (MCB).

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HISTORY OF MUSLIM COMMERCIAL BANK

Muslim Commercial Bank Limited unfolds 52 years growth. MCB is not an overseas success story. The bank started corporate life in Calcutta on July 9,1947.After the partition of the Indo-Pak subcontinent ,the bank moved from Dhaka from where it commenced business in 1948.In 1956, the bank transferred it Registered office to Karachi where the Head Office is presently located. Thus the bank inherits a 52 years legacy of trust on its customers and the citizens of Pakistan. In 2007, MCB reported a profit after tax of PKR16.4 billion (US$270 million) and generated a return on average equity of 38% and a net interest margin of 8.08%. The Banks asset quality is strong with a gross NPL ratio of 4.7% and provision coverage of 100%. 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.

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In 2005, the management of the bank changed its name from Muslim Commercial Bank Limited to MCB Bank Limited (MCB). The reason was to explore international markets as they were facing resistance specially from Western Countries to avail license. In 2008 the head office of MCB was shifted to Lahore in a newly constructed building, namely MCB House, located at Sharea Ghous-ul-Azam (formerly known as Jail Road) from Karachi. The MCB Tower in Karachi serves as the MCB's headquarters, and is also the tallest building in Pakistan. MCB, advised by Merrill Lynch, became the fourth Pakistani company (the other three being Hubco, PTCL and Chakwal Cement - they all have been delisted) to list on the London Stock Exchange when it raised US$150 million global depositary receipts. In May 2008 Malaysian bank, Maybank and MCB sponsors Nishat Group signed an agreement, whereby Maybank will acquire up to 20% of the ordinary shares in MCB from Nishat Group. The acquisition is in-line with Maybanks strategy, as Malaysias financial services leader in the region, to build its presence in key growth markets across the region. It also paves the way for MCB, one of Pakistans premier financial services groups, to engage Maybank as its exclusive foreign commercial bank strategic partner. Maybank initially acquired from Nishat Group 94,241,527 ordinary shares in MCB, representing a 15% stake in the Bank, for a cash price of PKR470 per share. The total consideration paid was approximately US$686 million. The purchase price represented a 11.4% premium to MCBs closing share price of PKR 422 on May 2, 2008, and a premium of 12.9% to the average closing share price for MCB over the 30 trading days immediately preceding the date of this announcement. Based on MCBs December 31, 2007 audited book value, the purchase price represents an implied price to book value multiple of 5.13x, a price to 2007 earnings multiple of 18.0x and a price to 2008 earnings multiple of 15.2x. In July 2008 Maybank exercised its right to increase its stake to 20%.

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The stake in MCB allows Maybank the right to appoint two Directors to represent its interest on the Board of MCB. One of these Directors was to be appointed immediately and the second Director will be appointed upon completion of the term of the existing Board, scheduled to be on March 27, 2009.

As part of the transaction, Maybank and MCB are also expected to enter into a business cooperation arrangement which will include, among others, Islamic banking, retail banking, credit cards, asset management and SME banking. Leveraging Maybanks leadership and experience in these segments coupled with MCBs brand and broad distribution network, Maybank and MCB believe that significant revenue synergies can be attained. Both Maybank and MCB are also expected to benefit from increased business ties and trade flows between Pakistan and Malaysia.

NATIOLIZATION:
In January 1974, the government of Pakistan nationalized MCB following the banks act 1947; Premier bank limited merged with MCB.

Privatization:

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A wave of economic reforms swept Pakistan in the late 1990,introducing the need for privatization of state owned bank companies. In April 1991 MCB became Pakistans first privatized bank. The government of Pakistan transferred the management of the bank to National group, a group of leading industrialists of the country by selling 26% shares of the bank. In term of agreement between the government of Pakistan and the National group ,the group, making their holding 50% has purchased additional 24 % shares.

Muslim commercial bank today:

MCB today a represents a bank that has grown with time, experience and Pakistan. A major financial institution, in scope and in size, it symbolizes a fully growing tree evergreen, strongly and firmly rooted.

Foreign exchange:
The bank conducted import business during the year amounting to RS 54.0 billion as compare to RS 56.4 billion in 2000.The export business slightly improves to RS 36.9 billions from 35.1 billion in 2000. Home remittances decline to 16.7 billion from 30.7 billion the decline in home remittances business was due to freezing of Foreign currency accounts, which has effected the confidence of Pakistanis working overseas.

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Year 2002 compliance

MCB s strength lies in providing a technological base at the gross root level of the society with a challenge to educate and assimilate some systems across vast cultural and economic backgrounds. With over 768 branches, 243 online branches, over 151 Atm s in 27 cities nationwide and a network of over 16 banks on the MNET ATM switch, MCB continuously innovates new products and services that harness technology for the customers benefit.

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Its a general hierarchy of bank which is showing about the main authorities of MCB who are controlling its management in PAKISTAN. Banks management is divided into different groups, regions and areas. Co-chairman is providing supervision to group heads in the hierarchy, there are regional, hub and area managers who are managing and guiding the working of diffirent branches of Bank.

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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.

CORE VALUES
Trust Customer focus Innovation Team Work Achievement Social Responsibility.

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Business volume: Snapshot

Head quarters: Founded Network Karachi, Pakistan 1947 125 cities, 1040 branches 700 ATMs,9179 employees, Largest bank in Pakistan, Representing 8% of total banking sector Asset and deposit market shares

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ORGANIZATIONAL STRUCTURE
As MCB is a banking company listed in stock exchange therefore it follows all the legalities which are imposed by concerned statutes Mr. Muhammad Mansha is chairman & chief executive of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company. Operational Management of the bank is being handled by a team of 10 professionals. This team is also headed by Mr. Muhammad Mansha. The different operational departments are Consumer Banking & IT div; Financial & Inter branch div; Banking operations div; HR & Legal div; financial control & Audit div; Credit management div; Commercial Banking div; Corporate Banking div; Treasury management & FX Group and lastly Special Assets Management (SAM) Group. For effective handling of branches, it has been categorized into three segments with different people handling each category. These categories are: a) Corporate Banking b) Commercial Banking c) Consumer Banking

A) CORPORATE BANKING:
These are branches which have an exposure of over Rs. 100 million. Usually includes multinational & public sector companies.

B) COMMERCIAL BANKING;
The branches which has a credit exposure of less than Rs. 100 million but having a credit portfolio of more than Rs. 20 million (excluding staff loans) Usually branches in large markets and commercial areas come under this category.

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C) CONSUMER BANKING
These are the branches which have exposure up to Rs. 20 million and these include all the branches which are neither corporate nor commercial branches. Recently the organizational structure was re-designed as follows: Province wise branches

Corporate Consumer Commercial 20 branches 637 branches 383 branches

NUMBER OF BRANCHES IN DIFFERENT LOCALITIES

Punjab 632 Sindh 232 NWFP 123 Blochistan 34 Azad Kashmir 19 Domestic 1040 Overseas 4 EPZ 1 Total 1045 Sri Lanka 3 Bahrain 1 Furthermore, the bank has some proposals under consideration to open more brances in some European countries and as well as in japan & china

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MEDIOCRE LEVEL MANAGEMENT

The organization chart within a department and in different offices is as follows: Divisional Heads .. Head Office Regional Head (EVP) .. Regional Office Zonal Head (VP) .. Zonal Office Branch Manager .. Branch (VP, AVP, GRADE 1, 2, 3)

FIELDS OF ACTIVITIES OF MCB

The purpose of banks is to provide some services to the general public. And for this 31

purpose different banks provide different services to the people in different forms. The Muslim Commercial Bank (MCB) is a commercial bank, in modern time commercial banks play a very important role and their functions are manifold. The main functions and services which Muslim Commercial Bank Limited provides to different peoples are as follows. 1) Open Different accounts for different peoples 2) Accepting various types of deposits 3) Accepting various types of deposits 4) Granting loans & advances 5) Undertaking of agency services and also general utility functions, few of those are as under: a) Collecting cheques and bill of exchange for the customers. b) Collecting interest due, dividend, pensions and other sum due to customers. c) Transfer of money from place to place. d) Acting an executor, trustee or attorney for the customers. Providing safe custody and facilities to keep jewellery, documents or securities. e) Issuing of travelers cheques and letters of credit to give credit facilities to travel. f) Accepting bills of exchange on behalf of customers. g) Purchasing shares for the customers. h) Undertaking foreign exchange business. i) Furnishing trade information and tendering advice to customers

Board of directors

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The board of directors has the authority in guiding bank affairs and in making general policies. Some directors are the personnel of MCB and others are successful business person and executives of their major organization. Ten members are included in the board of directors. 1.Mian Muhammad Mansha 2. Mr S.M. Muneer Chairman and chief executive Vice chairman

Directors Nine directors are 1. Mr Tariq Rafique 2. Sheikh Mukhtar Ahmad 3. Mr Muhammad Arshad 4. Mr Shahzad Saleem 5. Mr Raza Mansha 6. Mr Sarmad Amin 7. Mian Umar Mansha 8. Mr Mushtaq Ahmad Malik 9. Mr Muhammad Aftab Manzoor

Auditors
A.F Ferguson and Co.
Charted accountants

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M Yousaf Adil Saleem and Co.

Charted accountants

Legal advisors
Mandviwalla & Zafar
Advocate and legal consultants

Pricipal office
Adamjee house 2nd floor, !.1 Chandigarh Road,Karachi

Competitors
Nationalization of banks in the seventies was a major upset to the domestic banking industry of the country, which changed the whole complexion of the banking industry.

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With irrational decision at the top the commercial banks were made subservient to the political leadership and the bureaucracy. Specialized banking institutions were already working in the public sector. The new accountability paradigm change the business ethics in the banking industry, and with this change started the disaster. Nationalization of banking industry was accompanied by violent changes in the external value of rupee. The commercial banks thus lost their asset management equibilirum, initiative and growth momentum. They ceased to be a business concern and became big bureaucracies. This was accompanied by indiscreet loaning under political pressure. They suffered from 3 terminal diseases. Non performing loans Higher intermediation cost Loss of initiative and entrepreneurship

The rise to labor unions and officers association made life tough and working conditions ugly to honest, dedicated and industrious workers in the realms of domestic banking industry.

1.Public Sector Commercial Banks:

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National bank of Pakistan First Women Bank Limited The Bank Of Khyber The Bank Of Punjab

NBP FWB KB BOP

The government of Pakistan permitted small private sector banks to operate, which indulge in doubtful policies to promote the business. The public sector bank which constituted the backbone thus continued to suffer because of their approach, size and carried over liabilities. Mehran bank is the prime example of that kind of tax banking in the country wsich ultimately merged into NBP i.e last resort of domestic banking sector.

2.Local Private Banks:

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My Bank Limited Bank al Falah Bank Al Habib Askari bank Fysal Bank Metropolitan Bank Saudi Pak Bank PICIC Bank Soneri Bank Allied Bank Atlas Bank

In the mean while western bank started entering into business. They with the support of ruling elite, concentrated on big business, leaving the routine business to the local banks. This reduced the profitability of the local banks.

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3.Forign Banks:

1. ABN Amro 2. Al Baraka 3. American Express 4. The Bank of Tokyo Mitsubishi 5. CITI Bank 6. Doha Bank 7. Habib Bank A.G Zurich 8. Oman Bank 9. Standard Charted Bank 10. Rupali Bank.

4.Specialized banks:

1. Zari Taraquati Bank

2. Industrial development of Pakistan

3. Punjab Provincial Corporative Bank.

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MCB s Competitive Strategies

To be competitive the Bank has further reinforced its position in the Consumer Banking arena 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.

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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. MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country. MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet Banking, ATMs and MCB Call Centre, currently with six payment partners. Similarly, the Bank also took initiatives to increase the usage of debit facility. To provide timely and updated information, MCB has also provided a new look to its website which is user friendly and considerably easy to browse. The Islamic Banking initiative has been very successful in attracting new customer, both individuals and companies. Similarly, those relationships, which were confined only to current account facility, have grown into stronger business relationships. The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad. The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs. Some wide-ranging new strategic initiatives were also taken up which will be important for the Bank in years to come. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of select countries in the Asia-Pacific region. It is projected to earn US$ 1 million in its first year of operations. To increase its international presence, the Bank will be opening its representative office in Dubai and entering into major strategic alliances with banks in the UAE/ especially for marketing our consumer banking products to nonresident Pakistanis. Furthermore, feasibility is also being carried out for entering other international markets.

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MCB's operations continued to be streamlined with focus on rationalization of expenses, re-alignment of back-end processing to increase productivity, enhancement of customer service standards, process efficiency and controls. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency, expertise and reduce delivery cost. Management of Human Resources has been one of our core focus areas. MCB is committed towards attracting, retaining and motivating outstanding people. Challenge for MCB is to provide an environment in which employees can better realize their potential. The Bank introduced 'reward for performance' where high potential officers were identified and rewarded accordingly. In view of the competitive environment, the Bank is focusing on performance and introducing a more robust performance management system. MCB is also strongly committed to training its staff at all levels.

The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8. MCB Bank will run SYMBOLS eFinance modules to deliver personalized services to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will serve as its core banking transaction-processing engine. By implementing SYMBOLS, MCB Bank aims to raise the level of its customer service and its time to market in new product offerings for its three core banking businesses in Corporate, Commercial and Consumer Banking - retaining its market leadership as Pakistan's progressive Bank.

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PRODUCTS OFFERED BY MCB

1.MCB ATM SERVICES

MCB ATM Card 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

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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

Card Categories
MCB ATM Regular Card
The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per day and a maximum of 3 withdrawals per day per card.

MCB ATM Gold Card

The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a maximum of 6 withdrawals per day per card. The cardholder has to make at least two transactions to withdraw the full amount of Rs. 25,000. At the forefront of technological excellence, MCB proudly introduces MCB SMS 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 SMS Banking service is available to all MCB ATM cardholders, 24 hours - 365 days. Just call our Help Line on 111-000-MCB(622) or any MCB online branch for assistance.

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SMS Banking at a Glance

MCB SMS Banking gives you easy and quick access to your account(s) at a time you find convenient, including all holidays.

Banking at your Fingertips

With MCB SMS Banking you can: Check your balance View the last 4 transactions of your MCB account(s).

A Free Service
MCB SMS Banking is a free service for MCB account holders who have an ATM card. All you pay for is the cost of an SMS message if charged by the service provider

2.CALL CENTER
Our well-abreast and friendly call center team is available 24 x 7, 365 days a year to ensure that your daily financial obligations are taken care of guaranteeing you a good nights sleep.

.BILL PAYMENTS
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About MCB Bill Payments

MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone bills or re-charge your prepaid mobile phone accounts anywhere, anytime with security and peace of mind. MCB is the only bank that offers you 3 convenient options of making bill payments to PTCL, SSGC, SNGPL, KESC, Mobil ink, Super net, IESCO, HESCO, and Ufone. So, save your precious time by avoiding long queues and pay your bills through MCB Easy Bill Pay.

Bill Payments Features

Pay your bills 24 hours a day 7 days a week. Make total payments of up to Rs. 20,000 per day. Carry out up to 10 transactions per day per card. Make either full or partial payments. Full payment is required for PTCL only. Recharge your pre-paid account for Ufone, Mobil ink and Zong as per their fixed slabs. Pay as a registered or non-registered user. Registration will help you avoid the time delay in entering details each time you carry out a transaction.

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

Intelligent User Security System

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Now experience peace of mind of having a credit card free from fraud or misuse! The i-secure feature that all MCB Visa Credit Cards come activated with, offers you added convenience and absolute safety and security so the next time you shop it is without the fear of credit card scam or misuse.

An embedded chip makes MCB Visa technologically advanced and efficient, plus gives it the capability of storing large amounts of intelligent encrypted data. You are protected against fraudulent transactions on your card making it a highly secure and effective mode of payment. Your card uses cutting edge encryption methods to operate, thus preventing all forms of physical fraud related to your card such as skimming and counterfeiting.

How can you avail it? This feature is automatically activated in every MCB Visa card.

MCB VISA

Tired of looking at traditional reward booklets that offer no real value? Not excited about reward programs that first make you wait for it forever and then make you follow a

46

cumbersome process of getting these rewards? MCB Visa brings to you i-party, an intelligent reward monitoring and redemption system that not only lets you accumulate party points every Tired of looking at traditional reward booklets that offer no real value? Earn MCB Party Points: Know about your MCB Party Points: Worth of your MCB Party Points: Pay using MCB Party Points: Enjoy Fabulous Discounts & Surprise Gifts:

Earn MCB Party Points:

You earn 1 party point for every Rs. 50 you spent on your MCB Visa. When you spend with your principal or supplementary cards, you accumulate these directly on your card.

Know about your MCB Party Points:

Using the Chip in your MCB Visa, you can find out about accumulated Party points, by: Doing a Balance Enquiry at all MCB merchant outlets. Calling the MCB Call Centre at 111-000-MCB (622). Looking at your monthly credit card statement. Looking on the charge slip you get after the transaction at MCB merchant outlets.

Worth of your MCB Party Points:

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These party points are just like cash. You can use them to pay for your shopping. Each party point is worth Rs 0.40. So if you have 10,000 party points, their monetary value is (Rs 10,000 x 0.40) Rs 4000.

Pay using MCB Party Points:

You can purchase whatever you want from selected merchant outlets and settle the amount by redeeming your MCB Party points. You have the option of making full or partial payment using these points at any MCB Party outlet without any difficulty. The simple process to pay using your MCB party points is as follows:

i-plan: Intelligent Installment Plan System

Buy now and pay off later in easy and affordable monthly installments!
With the i-plan on your MCB Visa Credit Card you can: Convert any retail transaction of PKR 3000 or more in easy equal monthly payments at lower markup rate. Convert any retail transaction of PKR 3000 or more in easy equal monthly payments at lower markup rate.

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Select payment tenures of 3, 6, 12, 18, 24, 30 or 36 months.

How can you avail it?

Contact our 24 hour Call Center at 111-000-MCB (622) to convert that transaction onto iplan. Only valid for retail transactions.

How to order your selected product(s)?

1(a) Contact our 24 Hour MCB Call Center at 111-000-MCB (622) to place an order for the product(s) of your choice. or 1(b) Fill out the Order Form and Drop it any MCB Drop Box Location.

2 Book your Product through i-plan and take advantage of 0% markup options for 3 6 & 12* months. You can also choose from a tenure ranging from 12 to 36 months and pay the nominal markup rate of 17.93% upto 21.28%.(* Where applicable)

MCB VISA

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You need cash and want to pay back in installments. Just dial for it!
Using i-dial on your MCB Visa Credit Card you now have an instant personal loan within your reach. With i-dial feature: Have a pay order delivered within 3 days to your billing address. Pay back in easy, equal monthly installments of 3,6,12,18,24,30 or 36 months.

MCB VISA
Life is too precious to be spoilt by unforeseen events and mishaps.
MCB Visa with i-insure gives you the most flexible and comprehensive options to cover your family and yourself against those contingencies. And that too by just paying a very nominal monthly premium for your chosen insurance plan.

Travel Inconvenience (Complimentary):

Covers you against trouble of waiting for those unending hours while traveling when your flight gets delayed or you lose baggage.

Wallet Protection: Coverage against financial loss due to:

Fraudulent Credit Card Transactions Theft or robbery incurred by transactions done fraudulently on your card. A cover of up to PKR 40,000 is provided under this option. Loss of Identification Documents 50

Government of Pakistan Identification Papers like Passport, CNIC, Driving License, etc. Cash Coverage In case of robbery or theft from your home, the amount robbed / stolen will be reimbursed up to a maximum of PKR 10,000.

Accidental Travel Insurance (Common Carrier)

Covers your family in case of your unforeseen accidental death while traveling in a common carrier (commercial airline, railway, water borne or passenger bus).

Life Insurance:
Covers your family in case of an unfortunate event resulting in your death or disability.

Education Insurance:
Your children's education cost will be taken care of in case of an unfortunate event resulting in your accidental death or disability.

Personal Accidental Death and Disability:

Covers your family in case of unforeseen event of your accidental death or disability.

Credit Security:
In case of an injury, illness or death, the outstanding balance on your MCB Visa is insured for payment and costs a nominal percentage (as per the schedule of charges) of your outstanding balance You can also avail Wallet Protection as a separate insurance. To sign up for the package of your choice jus

MCB VISA

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How about a credit card that acts like hard cash? MCB Visa is just that card! It comes activated with the i-cash feature enabling you to withdraw up to 75% of your credit limit!

All you need to have is your MCB Visa credit card and your unique Personal Identification Number (PIN). Insert your card into any ATM across Pakistan or any of the ATM worldwide where the Visa card is accepted and just follow the simple instructions. Its that easy!

MCB VISA

Backed with our promise of jaga jaga....har jaga

MCB introduces i-alert, keeping you informed anywhere and everywhere through your cell phone.

You, as a basic card member will receive SMS Alerts when Any transaction is done using MCB Visa.

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Payment is made for your MCB Visa. Mini statement is generated(once a month). New Promotional offers are introduced on MCB Visa & much much more..

WORKING METHOD OF MCB PROCEDURE TO HONOUR A CHEQUE

During my internship training in the Muslim Commercial Bank Limited, I observed and found Cheques are received for the following purposes. i) For Cash payments ii) For transfer(from one account to another account) iii) For Clearing I) FOR CASH PAYMENTS

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Cheques which are presented on Bank counter must be checked in the following way: 1) Date. 2) Signature of Drawer. 3) Signature of Payee. 4) Whether Bearer has cancelled. 5) Whether Payee account duly is there. If condition 4&5 exist then check the signatures of Drawer. 6) Match the figure and wordily amount of cheque. When all above matters are satisfied then come to the Token register and check: 1) Token number. 2) Cheque number. 3) Amount of cheque. 4) Particulars.

Two stamps are put on cheque. a) Cash Payment (on the face of cheque). b) Stamp for Token (on the back of cheque). On stamp which is put for token their details are as follows: Token number. Time of giving token to client. Signature of token giver. Note: Payment is also made when cheques of same branch account is presented for transfer to other account in same ranch along with cheque for payment.

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II) CHEQUE FOR TRANSFER: When cheques are presented to be sent for collection and drawn on bank situated within the city then there are three stamps to be put on face as well as on back of cheque. a) Crossing Stamp (face). b) Transfer Stamp (face). c) Bank Manager Stamp (back). Only in MCB branches. CHEQUES FOR CLEARING: There are two stamps put on each cheque, sent for clearing: a) Crossing Stamp. b) Manager Stamp. CHEQUES IN COLLECTION: When cheques received in clearing are intra city then these are controlled under CC. First of all, these cheques are recorded in day book then allotted number and then serial number. Then a performa is prepared in which Bank on whom was drawn, cheque number, amount, beneficiary name are recorded. After completing that performa cheque is posted along with performa. CLEARING Following information is entered in clearing register.

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a) Name of favoring party. b) Name of bank on whom drawn. c) Branch. d) Cheque number. e) Amount. Clearing is sent after entering in register. In clearing register future date and day is putted. Cheques and vouchers are then separated and Cheques are sent for clearing. Clearing credit vouchers are entered on clearing sheet. Such credits are balanced by giving debits to cheques received in clearing from other branches. At the beginning of the day clearing return sheet is received. Vouchers are made if

1. Clearing received is more than clearing delivered then Credit voucher. 2. Clearing delivered is more than clearing received then Credit voucher On the same day, credit vouchers sent for clearing are entered on the sheet's credit side. Cheques are sent to NIFT after taking them on calculator, their total amount along with total number of instruments. A summary is prepared and sealed after noting the number of seal in summary.

Telephonic Transfer
DD- Demand Draft PO- Payment Order For TT, the account of beneficiary must be there in branch. DD is also prepared and beneficiary can get payment. First of all, Performa is filled by purchasing party along with cheque or cash payment.

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When cheque is received it is first posted in computer section in order to check the balance of account. After posting the bank officer calculate tax if National Tax number is not there Commission and postage charges are also calculated. These are paid in cash or otherwise by cheque.

ISSUANCE OF CHEQUE BOOK

During my period of internship in MCB i observed that when a account is opened then a cheque is issued to customer for drawing his money at per rules. Following procedure is adopting for the issuance of cheque. When a customer opens an account with the bank, he is provided with cheque book for withdrawals from account. However, the first cheque book is given to the customer only when all the required documents are checked. A cheque book contains ten, twenty five, fifty or hundred leaves. The cheque book also carries a requisition slip for the issuance of the new cheque book. This slip is duly filled and singed by the customer. The signature of the customer is verified by the bank and new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the book of the bank. Along with the signature, person should also write his full name & address. Usually only one cheque book is issued at a time, however big concerns who need a

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number of cheque books at a time, may ask the bank to stock as number of cheque books in their name book and ready to point for the their name customer, on as these on cheque his books. advice. Bank debits the clients account for excise duty of Rs.2.50/- per cheque and keeps the cheque The officer keeps and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. The account number for which the cheque book is issued and the number of leaves are also recorded in this register when the cheque book issued an entry is passed in the cheque book issue register.

RUPEE TRAVELLER CHEQUES: RTCS

When RTCs are to be issued payment is received in cash or by cheque, tax @0.03% is charged id National Tax number is nor available. RTCs are issued in consecutive number of face value of Specimen signatures of buyer are taken and clearing slip is in four pages. One is sent to Head office, one to RTC division, one for bank record and one for client. If client wants immediate payment of RTCs then he will bring RTCs with two signatures, one copy of deal and ID card copy. Payment is made. RTCs can be endorsed to other party. Once receiving party will pay the RTCs along with credit vouchers in their relevant account with Bank. Payment will be credited to account of paying party

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Directors report: About Economy of MCB:

The world economy faced many stresses in 2008.The crash of housing market in USA adversely effected the liquidity, solvency and profitability of the banking system and the decline in consumer spending fueled a recession that was already in the making due to several other developments in the economy. The weak regulatory framework and sub prime crisis lead to potential melt down of the banking system which could not only be adverted through a massive injection of public sector resources by the major industrialized countries. The declining asset values, rising unemployment and shaky business confidence reinforced in the world wide recession which still continues in

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abated in spite of the introduction of stimulus programs by the US and many other developed countries. Pakistan was already experiencing economic and financial problems even before the emergence of the world financial crisis and the economic recession .Excessive money creation by bulging budget deficits financed through credit creation and excessive consumer lending in the private sector coupled with rising world oil and food prices and electricity storages in the country had led to sharp rise in inflation in Pakistan which in turn placed pressure on the balance of payments leading to a sharp depletion of foreign exchange reserves and depreciation of foreign exchange.

Banks performance review:

During the year 2008,the bank continued to make strong progress in spite of all the difficult market conditions. Revenues grew strongly and considerable advancement has been achieved in expanding our asset base. A number of strategic actions have been taken to ensure that we are well positioned for the future and are able to excel in the years to come. The bank reviewed its governance structures and has further strengthened the roles of the board, management and staff to ensure strict compliance to good governance. In 2008,MCB was given the award as the best bank in Asia by Euro money. This was a significant mile stone for the bank and re affirms the efforts and vision of the management position MCB at par with the best international banks.

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Another key development for MCB in 2008 was the acquisition of 20 % shareholding in MCB by Malayan banking Bernard the largest financial institution in Malaysia. This partnership will further improve and enhance our business processes and will strengthen our footings on domestic and international frontiers.

COMMERCIAL BRANCH BANKING GROUP

With its large network of branches continued to drive MCB growth in 2008. They enhanced their sales model through the introduction of a direct sales force team and personal bankers in many branches while continuing to strengthen their customer service quality. The year witnessed a successful restructuring of the agriculture division and this lead to considerable portfolio growth . Going forward the group will continue to provide support to the bank in achieving revenue growth and profitability while focusing on retaining strength of credit portfolio.

WHOLESALE BANKING GROUP

Has posted strong growth in volumes and revenues in 2008,supported by the increase in corporate advances by Rs 47 billion (45 %). Trade products division was setup in 2008to increase banks share of local and international trade and will assist in identifying and developing new businesses, supporting existing relationship, offer structured trade finance solutions and launching new products. Cash management will focus on getting a larger share of home remittances and efficient collection.

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CONSUMER BANKING GROUP

It took the lead in broadening our product and customer suit in 2008 as evidenced by the launch of Banc assurance and privilege banking business and further strengthening of our alternate distribution channels. Given the high interest environment, growth was carefully managed on consumer assets and credit quality.

ISLAMIC BANKING GROUP

It has strengthened its outreach through new branches and the development of specialized liability teams. The group remains committed to broaden its reach in new sectors and will offer new products to serve the needs of the customers.

INFORMATION TECHNOLOGY GROUP

It continued to focus on enhancing stability of our current infrastructure .Standardization of equipment was introduced to boost productivity and promote savings. 62

Credit card alerts on mobiles, utility bills payment through virtual banking were new applications that were introduced as well as rollout of symbols to 663 branches by the end of 2008.

HUMAN RESOURCE GROUP

This group has remained active in its endeavors to attract new employees and developing existing personal recognizing its people as the true competitive advantage steps have been taken to promote the employee engagement and satisfaction.

OPERATIONS MANAGER
These continued to focus on centralization of processes and business continuity. Internal control division was strengthened and lead the bank wise efforts for compliance to the COSO based internal control frame work. BOD continued to take steps to improve governance in the bank. The reform and revision in policies initiated in 2007 on the basis of guidelines provided by the State Bank Of Pakistan were carried further and consolidated. The co ordination between the staff management and board was further enhanced to improve effectiveness of bank operations. The board expects to continue to improve governance, strengthen financial controls, enhance transperancy, promote professionalism increase customer service promote work efficiency and expand bank business.

MCB OFFERS ISLAMIC BANKING

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INTRODUCTION
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.

Mission Statement
To play a dynamic role in promotion of Islamic Banking and win customers trust by providing sharia compliant financial services.

Vision Statement
To become a leader among Islamic Banks of the country in the coming years capturing major share of the domestic Islamic financial market.

Islamic Banking Management Committee

The bank has established an Islamic Banking Management Committee comprising of the senior executives representing various important functions of the bank, such as, Credit & Risk Management, Finance, Treasury, Operations, Islamic Banking Division and Sharia Advisor. The objective of this committee is to review the products offered by Islamic Banking Branches, and to improve them not only to make them competitive and practicable but also make them truly Sharia Compliant. Dr. Muhammad Zubair Usmani, working as Sharia Advisor in our bank since July 2000 is a prominent scholar having Ph.D. degree in Islamic Finance as well as Fazil Takhassus from Jamia Darul Uloom Karachi, (i.e. specialist of Islamic Fiqh and Fatawa). He has attended and addressed several international and local seminars / conferences as guest speaker in Pakistan as well as abroad.

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He has also worked as Research Scholar and member of various forums and committees formed for promoting the cause of Islamic Banking in Pakistan and abroad.All products are approved by our Sharia Advisor Dr. Muhammad Zubair Usmani and these are further approved and vetted by Dar ul Ifta, Jamia Dar ul Uloom Korangi Karachi. Majority of the products are signed by Maulana Muhammad Taqi Usman

MCB OFFERS 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. MCBs 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

What do we Offer
MCB Virtual Internet Banking offers a wide range of online services which makes your banking accessible anytime and from anywhere

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Detailed Account Summary of all listed accounts. Statement-by-Period of each of the listed accounts, based on the period specified. Immediate or Scheduled Transfer of Funds between your own accounts, as well as to third-party accounts setup as beneficiaries, maintaining accounts with MCB. Scheduling of One-Time as well as Recurring Funds Transfers. Payment of utility bills for registered Utility Companies. Immediate or Scheduled Bills Payment. Scheduling of One-Time as well as Recurring bill payments. Option for Full or Partial payment based on the payment conditions specified by a particular Utility Company. Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary to the corporate employees, who maintain accounts with MCB. Cheque Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to the processing of specified payments and transfers. Personal Alerts for reminding of pre-specified events and occasions

How can you start:

Click on the register link on the MCBVirtual Banking page & complete the application form, suggest your MCBVirtual Internet Banking User ID choices and click submit.

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Visit any MCB ATM, select the option Service Requests and on the next screen select Internet Banking Reg. Wait a while for the Registration to complete and the appropriate message will be displayed. Check your registered email address for the registration confirmation containing your Virtual Internet Banking Password and Customer number. With your Customer Number handy, call the MCB Call Centre on (021) 111-000-622 to obtain your User ID. After verification User ID will be disclosed to you, enabling you to start using the MCB Virtual Internet Banking service.

For users living abroad

MCB Virtual Banking Registration is a three step process. 1. Fill out the registration form at our website. 2. Send in the duly signed AUTHORITY LETTER at the address given below:

After we receive your authority letter we will process your application and send you an email containing your password and customer number.

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BASIC FUNTIONS OF MCB GENERAL BANKING

The general banking departments performs various functions among them the first and the most important function is account opening. The banks reserves the rights to open any account ,which in its opinion is suitable as a customer. The process of account opening is very simple and any body like to open the account without any difficulty.

1.Deposit Department

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2. Remittances 3.Credit Marketing 4.Credit Administration Department 5.Trade Finance 6.Advanced Department 7. Clearing Department 8. RTC Department

1.Deposit Department
There are three types of accounts: 1. Current account
These are non interest bearing account that have a minimum account opening requirement of Rs 10000.No zakat is deducted on the account balance. Furthermore all current account holders receive a debit card and there are no restriction on the number of withdraws or deposit made to and from the account.

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2. Saving account
The account can be opened with the minimum balance requirement of Rs. 5000 and profit is credited on a half yearly basis. There are no restrictions on he number of deposits and withdrawal made to and from the account and all account holders receive a debit card as well. Saving account cannot be opened by a business corporation , however can be jointly opened by individuals.

3. BBA (Basic Bachat Account)

Bba was introduced by banks on an order by the State Bank Of Pakistan and is current in nature . There is no minimum balance requirements for BBA, however initial deposit must be RS. 1000. Maximum 2 withdraws and deposits are allowed by cheque, while there is no restriction on ATM withdrawal.

Procedure for opening an account

The customer that likes to open an account is required to meet the manager or second officer, who will give you the APPLICATION FORM specially used for account opening . Separate color-coded Application form is available for each type of account. So that a particular colored form is given to the customer to fill in for opening a related account. Along with the form, a card for specimen signature is also supplied to the customer. Manager has very right to reject this contact if he is not satisfied by the details provided by the customers. But in the case the contract is applicable to both, the next step is official account opening. This begins with the ACCOUNT OPENING REGISTER which can be thought as a customers master file. The manager records the necessary details into this register details into this register and allot on A/C number form A/C opening register. This register is maintained for each type if account and the a/c nos are

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allotted serially. After opening a saving and current account every applicants data is entered into the computer to maintain a safe record and application form is properly filled so that it can available when necessary. Checking officer is responsible to Tele the manual application form with the computerized A/C opening file. For fixed deposit only that application form is needed that this is prepared manually, because most of the procedure of deposit is done manually.

As I had already mentioned about Signature Card . This card contains three signatures of an applicant. Bankers uses this card at the time when he receives the cheque; he compares customers signatures with the signature on the cheque for avoiding fraud.

Current & Saving accounts are opened for: Individual

Only one person can operate this account. An individual who can fulfill the requirements of bank can open this account. We can call it a personal and individual account.

Joint

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In the case of joint a/c applicant mentions that how much person will operate the A/c. Instruction are given for joint a/c such that the account shall be operated by the partners.

2.REMITTENCES
The need of remittance is commonly felt in todays business. A major function of any bank is to transfer of funds from one place to another There are 2 main types of instruments that are used to transfer money, which are as follows:

1. Pay order:
These are used to transfer money with city.

2. Demand draft:
These are used to transfer money outside the city.

3. Credit Marketing department

Credit means belief or trust. The quality of being credible or trustworthy. Another words we can define credit as trust in ones integrity in money matters and ones ability to meet payment when due. Credit marketing department deals with extending loans to customers before sanction advance SBP. Has prescribed regulations are called Prudential regulations. Every

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bank has to follow the regulations. If any bank violates the regulations it should be liable for penalties.

i) CREDIT FACILITIES
There are 2 types of credit facilities:

Funded facilities: These are the facilities in which there is direct involvement of cash funds. Following are the funded facilities: a) Current finance b) Term finance c) Finance against foreign bills d) Finance against packing and credit e) Finance against imported merchandise f) Finance against trust receipt g) Local bills discounted Non funded facilities. The facilities where there is no direct involvement of bank funds. There are 2 types of unfunded credit line facility.

a) Line of Credit b) Letter of Guarantee.

4.Credit Administration Department

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Taking cognizance of the sustained progression of the bank business and the inherent risk factors attached to the expansion, the management felt a need for setting up of independent CAD in its branches so as to minimize the losses occurring from given credit

5.Foriegn Exchange Department/Trade Finance:

Trade finance involve import and export activities. This department provides protection to the rights of importer and exporter. The function of this department is to serve as a bridge between the importer and the exporter in order to settle a transaction. When trade is taking place between the representatives of two countries the exporter involves his bank in the transactions, as he wants to feel secure regarding timely payment of his goods in the required currency on the other hand the company involves his bank in order to get a sense of security regarding timely supply of the required product , in the required manner Trade finance department handles two activities a) Import b) Export

6. Advances Department:
MCB provides the facility to the people who need advance money to meet their requirements .For getting the advance the following steps are there

a. Initial Information:
Following information is required to be submitted to bank

Nature and structure of borrower business

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Names of proprietors, partners or directors Detail of all firms or companies associated with borrower Financial condition of borrowers business An assessments of his business abilities Accurate and up to date financial statement of two years for comparison A report from credit standing bureau of state bank of Pakistan.

b. Preparation of credit proposals

At first a formal application for credit approval is obtained from the party along with complete group position. The partys credibility report is also taken from the head office of Trade Information Division. For obtaining credit, party has to submit the last two years balance sheet and profit and loss account duly attested by authorized auditors. If party is also involved in export or import business than the bank also considers the data of 3 years about import and export. After all the necessary documents for applying for advance is fulfilled by the party than the case is sent to the manager for approval. If the credit limit is in his range than he can decide over it otherwise the case is forwarded to seniors. If there is any discrepancy than the party is informed of it.

c. Sanction advice.
When the documents required are completed and there is no ambiguity than the party is advised that their credit or loan is approved and will be available to you soon. There is a separate form of every annual approval or in case of a new facility. The form contains following information a) Nature and amount of limit

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b) Purpose c) Security/collateral d) Margin(%) e) Mark up charges f) Validity.

7.Clearing department Cheques:

There are 2 types of cheques

1.Open cheques
Open cheques has the following properties

The word bears is not crossed Crossed stamp is not there Cheque is not of limited companies Self or name should be written on cheque.

2.crossed cheque
When the cheques does not fulfill the requirement of open cheque then it is known as crossed cheque.

a) Transfer delivery:

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When the cheque has following properties than it is proceeded as transfer delivery. o Cheque is crossed o Cheque is of the same bank o Cheque is from local branch

b) Clearing:
In clearing the checques which are: o Crossed o Limited company o Different bank in the same city

. cheque collection.

c) cheque collection:
When cheque is from another city than it is grouped as

8.RTC department
This department deals in RTC .it stands for Rupees Traveler Cheques .MCB RTC has the largest share in the total RTC market. Over 1.5 million satisfied customers have made MCB RTCs. These are printed in UK and carry a thread watermark(a feature that prevent Counterfeiting)

Important features:
o As good as cash 77

o Denominations o Easily enchased o Easily refundable o Exclusive security features o Valid until used

Financial analysis Of MCB

MCB Bank Ltd. Financial Analysis Review Summary MCB Bank Limited (MCB) is principally engaged in commercial banking and related services. The bank along with its subsidiaries is engaged in providing a wide range of banking products and services to retail clients, and small and medium enterprises in Pakistan, Asia Pacific and the Middle East. It offers various deposit products, including fixed deposits, savings deposits, term deposits, current accounts, margin accounts and foreign currency accounts. MCB also offers personal loans, auto loans, working capital loans, and term loans. Global Market Directs Financial Analysis Review is an essential source for data,

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analysis and insight into MCB Bank Ltd. . It examines the company business structure and operations, products and services. The report provides information regarding key data, details on key executives and the major locations and subsidiaries of the company. It also provides key financial ratios for the company. Scope The report includes key company information such as business description, products and services, and key suppliers and competitors. It provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters. Ratios include profitability, margins and returns, liquidity and leverage, financial position and efficiency ratios. Reasons to buy A quick one-stop-shop to understand the company. Get an in depth understanding of companys recent and historical financial performance. Get the latest metrics on companys performance. Support sales activities by understanding your customers businesses better Qualify prospective partners and suppliers. Understand and respond to your competitors business structure, strategy and prospects. MCB Bank Limited (MCB) is a banking company based in Pakistan. It is engaged in commercial banking and related services. The bank along with its subsidiaries is engaged in providing commercial banking and related services to retail clients, and small and medium enterprises in Pakistan, Asia Pacific and the Middle East. It offers various deposit products, including fixed deposits, savings deposits, term deposits, current accounts, margin accounts and foreign currency accounts. As of December 31, 2007, it operated 1,020 branches, including eight Islamic banking branches in Pakistan and six branches outside Pakistan.

Global Markets Directs MCB Bank Ltd. - Financial and Strategic Analysis Review is an in-depth business, strategic and financial analysis of MCB Bank Ltd.. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed strategic analysis of the company. This highlights its strengths and weaknesses and the opportunities and threats it faces going forward.

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Scope

Provides key company information for business intelligence needs. The companys strengths and weaknesses and areas of development or decline are analyzed. Financial, strategic and operational factors are considered. The opportunities open to the company are considered and its growth potential assessed. Competitive or technological threats are highlighted. 80

The report contains critical company information business structure and operations, the company history, major products and services, key competitors, key employees and executive biographies, different locations and important subsidiaries.

The report provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters. Financial ratios include profitability, margins and returns, liquidity and leverage, financial position and efficiency ratios.

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