MCB Bank Limited

Internship Report

Table of Contents
Serial # Titles Page #
3

1 2 3 4 5 6 7 8 9 10 11 12

Executive Summary
4

Introduction
4-5

Principles of Performance
6-11

Products and services of MCB

11-12

Management team
12

Management Team at MCB Morgah branch

13

Organizational hierarchy
14-18

Internship Experiences
19

Knowledge gained at the organization

19

Conclusion
20

Recommendations
21

Bibliography

Executive Summary
MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan, with a network of over 1000 branches, over 350 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. MCB's operations continued to be streamlined with focus on rationalization of expenses, realignment 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. During my internship in MCB I worked in Remittances, Foreign Exchange and Customer Service Office department and I successfully completed all the task/duties that were assigned to me. During the course of internship I learned about different functions performed by Remittances, Deposit, Foreign Exchange and Customer Service Office department and bank as a whole. I also learned banks correspondence with their customers and within branches. I learned about documentation requirements and record keeping for different activities and processes, especially the documentation requirement for different kinds of financing facilities.

Chapter no. 1
Introduction:
MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid foundation of over 50 years in Pakistan, with a network of over 1000 branches, over 350 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. It is the largest private sector bank in Pakistan. MCB is also one of the leading banks of Pakistan with a deposit base of about RS.431 billion and total assets of around RS.550 billion. In 1974, MCB was nationalized along with all other private sector banks. This led to deterioration in the quality of the banks services like loan portfolio and other service. The Bank has a customer base of approximately 4 million and a nation wide 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.

Principles of Performance
Customer Focus: Over the years MCB has developed strong relationships with its customers by understanding their needs and treating them with respect, dignity and importance. The driving force behind its commitment and services is its focus on customers, ensuring that it not only meets, but exceeds their expectations. Quest for Quality: MCB strives to achieve excellence by ensuring that every moment of our time is spent in adding value, making sure that we do things right, first time, and every time. With this quest for quality, MCB has always taken initiatives in bringing banking into a new arena; from cash to the 4

convenience of plastic; from branch banking to internet banking and from face-to-face customer interaction to online accessibility. Employees Respect: MCB encourages diversity and treat each of our employees with fairness. MCB gives constructive feedback for their continuous development and seek suggestions from all employees for further improvement. The bank ensures that quality performance is acknowledged and rewarded and exercise utmost responsibility in decision-making with regards to our employees. Team Based Approach: MCB believes in achieving its Mission and Vision by working together as a combined group. MCB treats its employees as its internal customers and ensure that the requirements of internal customer focus are always met. Equipped with in-depth product knowledge, and recognizing the strengths in each individual, the bank strives for optimum-results from our co-workers and bringing out peak performances by working towards common goals and objectives in today's dynamic banking environment. Good Corporate Citizenship: MCB seeks to continuously improve the quality of life in our communities. The bank realizes that it has a responsibility to the society in which it operates and it seeks ways of playing a positive role for the betterment of the community at large for a progressive environment, better living and a brighter future

Products and Services of MCB

Personal Banking Deposit Accounts
Khushali Bachat Account: Khushali Bachat Account, a Rupee savings account is one of MCB Banks most popular products. Due to the low initial deposit, the account can be opened by people from all walks of life and still avail the facility of daily product profit calculation. Mahana Khushali Bachat: MCB Monthly Khushali Scheme provides you with a steady income every month. Just purchase a Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every month. Pak Rupee Savings Account: MCBs Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. Pak Rupee Current Account: MCBs Pak Rupee Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day plus you can avail finance facility up to 75% of the total deposit.

In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. Pak Rupee Term Deposit: MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. Saving 365: The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals. Foreign Currency Savings Account: MCBs Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment. You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanese Yen or Euro. Your foreign currency account is exempted from Zakat and withholding tax Foreign Currency Current Account: MCBs Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day. MCB Foreign Currency Term Deposit: MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits.

Dollar Khushali Account: The Dollar Khushali Account, a Dollar based account was introduced in 1993 at selected MCB Bank branches. Today, you can open a Dollar Khushali Account at over 200 branches in Pakistan.

Loan Products
MCB Business Sarmaya: MCB Business Sarmaya is the best Running Finance facility against your residential property which empowers you to manage your business dealings better. So act today and get MCB Business Sarmaya and thus improve your business, avail lucrative opportunities and expand your business, with absolute satisfaction of cash flows. MCB Car4u: Life is like a chess board. You plan your career options. You analyze your business moves. But when you really want to improve your life, you make a power move. MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. It is affordable, with lowest mark up, flexible conditions, easy processing and above all, no hidden costs. MCB Pyara Ghar: Some destinations require a long wait. Like waiting for a home of your own. But with MCB Pyara Ghar it is now easy to step into your home and start living a real life. MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase, Renovate or Construct your home the way you have always wanted. Having your own home was never so easy

Easy Personal Loan: MCB Easy Personal Loan provides you with the financial advantage to do things you've always wanted to but never had the sufficient funds for. Take that much-needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance a better education for your children.

MCB Master card Since the beginning of time, people have tried to find more convenient ways to pay, from gold to paper money and cheques. Today, money is moving away from distinct hard currencies and towards universal payment products that transcend national borders, time zones, and, with the Internet, even physical space. Plastic or "virtual" money, credit, debit, and electronic cash products, inevitably will replace cash and cheques as the money of the future. MCB Rupee Traveler's cheques 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 traveling and in all walks of life. MCB rupee travelers cheques- The safest way to carry cash.

Corporate Banking
Cash Management Services: MCBs network of over 900 branches in Pakistan enables it to collect and disburse payments efficiently with its cash management services. This also enables it to offer you a choice of paper based or electronic fund transfer solutions including collection amounts, cross branch on- line transactions etc.

Working Capital Loans: Based on the customers specific needs, the Corporate Bank offers a number of different working capital financing facilities including Running Finance, Cash Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailor- made solutions are developed keeping in view the unique requirements of your business.

Term Loans: MCB offers Short to Medium Term Finance to meet capital expenditure and short term working capital requirements of our customers. The loans are structured on the basis of underlying project characteristics and cash flows of the business.

Trade Finance Services: Under Corporate Banking MCB offers trade finance services that include an entire range of import and export activities including issuing Letters of Credit (L/Cs), purchasing export documents, providing guarantees and other support services.

Online Services
MCB ATM Services: With a solid foundation of over 50 years in Pakistan, with more than 750 automated branches, 269 online branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM switch, MCB is positioned at the forefront of the banking industry in Pakistan. This success has been possible because of a never-ending drive to achieve higher levels of excellence, constantly striving to raise the level of performance. MCB Mobile Banking: At the forefront of technological excellence, MCB proudly introduces MCB mobile banking. The convenience of accessing your account balance information and mini 10

statements whenever you want or wherever you may need them, with comfort and peace of mind. MCB Call Center: Keeping up with banking services can be tedious but not with MCB bank, where phone service is at your fingertips. Just dial our Call Centre from the comfort of your home or office or wherever you happen to be. It offers basic banking services for your convenience, eliminating the need for you to make unwanted trips to your branch. MCB Smart Card: MCB now brings you MCB Smart Card -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 Smart Card 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 Debit Card: Now MCB brings a secure, convenient and quick payment facility that enables you to do purchasing by using your existing MCB ATM / MCB Smart Card as a debit card.

Management Team:
Board of Directors: The board of directors has the authority in guiding Bank affairs and in making general policies. Some directors are the personnel of the MCB Bank and others are successful businessperson and executives of other major organization. Ten members are included in board of directors, see in a list. Mian Muhammad ManshaChairman and chief Executive 11

Mr. S. M. Muneer Directors: 1) Mr. Tariq Rafi 2) Mr. Shahzad Saleem 3) Mr. Sarmad Amin 4) Dr. Muhammad Yaqub 5) Dato' Mohammed Hussein 6) Mian Raza Mansha 7) Mr. Aftab Ahmad Khan 8) Mian Umer Mansha 9) Mr. Muhammad Ali Zeb 10) Dato' Seri Ismail Shahudin

Vice Chairman

Management Team at MCB Morgah branch:

1) Abdul Ghafoor (Branch Manager) 2) Abdul Baseer (Operational manager) 3) Hammad Javed (General Branch Officer) 4) Miss Beenish laghari (General Branch Officer) 5) Mohsin Raza (CSO) 6) Mr. Ahsan (Cashier) 7) Mr. Sabir (Assit. Cashier)

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Chapter no. 2
Organizational hierarchy:

President
Senior executive vice president Executive vice president Senior Vice president Vice president Assistant Vice President Grade 1 Grade 11 Grade 111 Assistant Clerical Staff
1) Cashier 2) Technical Staff

Non-Clerical Staff
1) Messenger 2) Dispatch Rider

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Chapter no. 3
Internship Activities:
Review of MCB Morgah Branch:
During my six weeks internship period I was given opportunity to know about the functions practices of the following departments in the branch: 1. Deposits Department 2. Remittances Department 3. Clearing Department 4. Forex Department Week 1-2: During the first two weeks of my internship, I was sent in the deposit department. Deposit is the functional unit of a Commercial bank. No bank can run its operations without deposits. All types of accounts of customers are managed and maintained in this section. All the money deposited and withdrawn is properly recorded in a specific account number which is allotted to every account holder. Deposit department handle the account opening department. In account opening Mr. Mohsin Raza guided me how to open the accounts. I learn how to open a new account, what are the requirements of the bank for opening the account. I learn how to deal with the customers. MCB bank opens the account of following persons after fulfillment of the requirements: Individuals Sole Proprietorship Partnership Private and public limited companies

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Types of deposits include: Week 3-4: In third and fourth week of my internship I learned about services and products that Bank offers to its customers for Funds Transfer (Remittance department). Currently Bank is offering following Products & Services for Fund Transfer: (Locally & Internationally). Payment Order Demand Draft (Local & Foreign Currency) Telegraphic Transfer (Local & Foreign Currency) Mail Transfer (Local Currency) Current account (initial deposit Rs. 1000, min. balance requirement Rs. PLS saving account (initial deposit Rs. 1000, min. balance requirement Rs. BBA (initial deposit Rs. 1000, min. balance requirement Rs. 0) 365 gold account (initial deposit Rs. 300,000, min. balance requirement Rs. KBA (initial deposit Rs. 1000, min. balance requirement Rs. 20,000) 10,000) 10,000)

300,000)

Payment Order is used for making payments within a city. Demand draft is used for making payments outside the city. TT and MT are now finished in MCB branches because now everything is centralized. I have learned basic operations of remittance department (PO, DD), and the difference between DD and PO. The remittance officer also has to pass the entry that is entered by the cashier. The cashier enters the amount of check and the check number. Then the remittance officer enters the password and passes the entry. It is actually based on the amount of the transaction. When the amount of check exceeds a specific amount of Rs. 200000 the remittance officer has to pass that. 15

And when the amount increases to Rs. 500000 the operation manager has to pass that entry. To open the customers account and to keep information of each of the customer separately so that when information is needed can be obtained easily. Out of the city DD is used, DD is made through Checque and Cash. Rs.50 is charged on cash slip and in case of check slip Rs.220 is charged. PO is made within a city. It is also in the form of Cash and Check. Rs.50 is charged on cash and Rs.220 is charged on check slip. If a regular customer wants to make DD or PO then in this case he/she has to fill up a form. This form is known as Fund Transfer Form; on making this DD/PO Rs.50 is charged for making this in case of account holder but for non account holder Rs.220 is charged. And at the last the authorized officer puts his/her signature on DD/PO form and three stamps are pasted on it; a. Transfer stamp b. Signature verified stamp c. Crossing check stamp ( in case if half payment is made through cash form, then a check is fill up for this and attached with the DD/PO form) And at the last the operational manager puts supervision on this and all the records are transferred into computer for bank records. Week 5: In the fifth week of my internship I was shifted to the Clearing section. The basic purpose of clearing department is receiving different schedule banks cheques. Schedule banks are those banks which are registered in state bank. Clearing department clear different banks cheques through NIFT. Minimum two stamps were attached with each cheque and its very compulsory.

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Clearing stamp Payee's account will be credited

Clearing is a system by which banks exchange checques and other negotiable instruments drawn within a specified area and securing the payment for their clients through clearing house (NIFT). Following information is entered in clearing register: a) b) c) d) e) Name of favoring party Name of bank on whom drawn Branch Cheque number Amount

Clearing is sent after entering in register. 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. On the same day, credit vouchers sent for clearing are entered on the sheets credit side. Cheques are sent to NIFT after taking them on calculator, their total amount along with total number of instruments. Week 6: In sixth week I spent in forex department and I also learned about issuance of cheque book. In Forex department l learned about the forex account. There are three types of Forex account: US Dollar Account Pound Account Euro Account

Karachi MCB Treasury department control Forex department and the branch itself. Treasury department of State Bank on a daily basis revise the Forex rate. 17

KIBOR (Karachi interbank offer rate) it makes future predictions about the rates and also decides profit. Minimum account maintenance in both US $, Pound and Euro is 500. It may be 500 $, 500 pounds and 500 Euro. In Foreign currency only DD is allowed because basic currency is in PKR. Foreign Currency chequebook is issued same as other chequebook and bankers report them in the treasury department of the State bank of Pakistan. And charges of chequebook are deducted as in foreign currency but it is also in PKR. After opening an account, a letter of thanks is sent to the customers from the Circle Office after 2 or 3 days. After receiving that letter a customer can obtain his/her check book from the bank. But while customer is coming to the bank for receiving his/her check book this letter of thanks should be with him. These are the following steps that are used for getting check book: The customer brings the letter of thanks and gives to the authorized person. The person fills the check book requisition slip for the customer and takes his signatures. Then the authorized person saves that slip in his record and fills another slip and forward to Karachi via NIFT and customer is asked to come after 5 days. After 5 days cheque book is given to customer after taking his signature in a separate register But in case if ; (a) Customer is new than after taking letter of thanks check books would be hand over to him/her. (b) But in other case if customer is not new he is a regular customer than at the end of each check book a requisition slip is attached. So whenever a new check book would be needed the customer will put his/her signature on it and submit it to the authorized officer.

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Chapter no. 4
What I have learned?
This internship bridge a gap between university study and the working world, I come to know about my strengths, interests and abilities to deal with clients and I have also learned how to manage different task in the short span of time. This internship will also help me to build up my confidence because in this I have also analyzed the working environment, which helps to settle me in future

allowing me to experience the roles, expectations and behaviors of the working world. work under pressure.

internship I have a direct interaction with the customers. employment.

Conclusion:
Working with MCB helped me to understand how operations of banking are carried out at the most basic level. I gained a lot of confidence and understanding of practical business environment. The management of MCB is continuing to make efforts to refine its products and operations to make them more compatible. During my internship I have learned many new things in spite of the knowledge gained at university and also came to conclusion that education alone is not enough, practical training in every field is crucial to become a successful manager. The bank has great image due to the trust but it needs to use it effectively to increase market share. As the business and economic conditions remain uncertain, MCB continues to develop the new products like it has been doing in past. Every concern has to strive and struggle a lot to be more profitable and to get more competitive edge.

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Recommendations:
Most of the bank employees are sticking to one seat only with the result that they

become master of one particular job and loose their grip on other banking operation. In my opinion all the employees should have regular job experience all out-look towards banking. The promotion policy should be adjusted. The period of internship should be divided into the number of department of the

MCB. The internee should be given timetable mentioning the number of days he has to work at different places in the bank. On the 1st 4 day in each department internee should be given a lecture by the officer of the department concerned about working of the department.

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