Final project of Internship On
History of Muslim commercial bank:
My report will remain incomplete if I do not mention the efforts of those people who
helped me in completing this work.
First of all I will thank to my father Waheed Sheikh who got me opportunity to work
in such a prestigious organization, which is well known in the country. I also tribute
to my all teachers who able me to work with experienced persons and enable me to
work very efficiently throughout the period of Internship.
The administration department of HBL helped me in preparing my internship report,
Especially Administration officer Mr. Tanveer Ahmed. The program was organized in
such a way that sufficient time was given to each department according to its
importance. I am really thankful for his co-operation during the internship.
At last, I would like to thank all those persons who helped me in completing this
MCB is one of the leading banks of Pakistan with a deposit base of
about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in
1947, MCB soon earned the reputation of a solid and conservative financial
institution managed by expatriate executives. In 1974, MCB was nationalized
along with all other private sector banks. This led to deterioration in the
quality of the Bank‟s loan portfolio and service quality. Eventually, MCB was
privatized in 1991.During the last fifteen years, the Bank has concentrated on
growth through improving service quality, investment in technology and
people, utilizing its extensive branch network, developing a large and stable
deposit base and managing its non-performing loans via improved risk
1. Executive Summary
We are living in a time of extraordinary change. The ecological and
economic threat is looming large on the entire sphere of Pakistanis economy.
Pakistani firms must design and make better products and services and
should find better ways to market them. What was once regarded enough is
no longer competitive. What were once limitless resources are now to be used
more efficiently. Today an organization is on the leading edge, or it is on the
I have learned the lessons perhaps the hardest way, that is, through
my mistakes. I have tried my best to peep into the generic as well as real
cumulative problems faced by the pioneer of banking industry in Pakistan but
that degree of objective analysis proved to be of little use since this bank is
firmly entrenched in the claws of royal bureaucracy.
Several chapters have been inducted in the report but they seem to be
very conventional in nature giving supplementary justification to the fact that
MCB is the most conventional of the conventional bank.
In order to be able to cope with the changing environment it is necessary to
have some practical experience. As the students of Commerce we have to
pass through a series of various managerial techniques. During this practical
course we are provided with an opportunity to learn that how the theoretical
knowledge can be implemented in practical grounds.
I was selected to do my internship in MCB Ltd. Walton Road Branch Lahore. I
worked there for ten weeks & it gave me a greater practical knowledge about
the operations of a bank. In the following pages I have narrated my
experience, observations & all the working activities, which I observed during
my ten-week internship at MCB Ltd, Empress Road Branch Lahore.
Why are we making a project on MCB
We want to make the project on MCB because
MCB is one of the most renowned banks in Pakistan it is in fact the second
largest bank after HBL in Pakistan services provide by MCB are one of the
best in Pakistan
Best Domestic Bank Award 2000:
MCB was awarded as Euro money Award 2000 for the
"Best Domestic Bank in Pakistan"
Best Bank In Pakistan Award 2001:
MCB was awarded as Euro money Award 2001 for
the "Best Bank in Pakistan".
Best Bank In Pakistan Award 2003:
MCB again won the Euro money Award 2003 for the
"Best Bank in Pakistan"
Best Bank In Pakistan Award 2004:
MCB again won the Euro money Award 2004 for the
"Best Bank in Pakistan it is the fourth time in five.
Asia Money Awards:
The Best Domestic Commercial Bank Award 2004:
MCB has a distinction of winning the Asia Money
2004 award for being "The Best Domestic Commercial Bank in Pakistan".
The Best Domestic Commercial Bank Award 2005:
MCB Continues to shine as once again Asia Money
declares MCB as "The Best Domestic Commercial Bank in Pakistan" for the year
Board of directors:
Mian Mohammad Mansha Chairman
S.M.Muneer Vice Chairman
Tariq Rafi Chairman
Dr. Muhammad Yaqub Member
Mian Raza Mansha Member
Dato' Mohammad Hussein Member
Aftab Ahmad Khan Member
A Vision of the Future
The modern, urbane architecture and intelligent design of MCB Tower reflect MCB‟s
pioneering role in the banking arena, providing cutting edge, innovative banking solution-
leading with an edge of technology.
Setting Ever-Higher Standards
Towering at 116 meters, with 29 levels and 3 basements, MCB tower is the tallest
building in Pakistan. It is a sound representation of MCB‟s leadership position in the banking
sector, testified by four “best bank in Pakistan” Euro money Awards in five years
MCB tower is a manifestation of MCB‟s strong foundation with over 50 years of
banking excellence and represents our commitment to always stay a step ahead.
Understanding At all levels
From individual customers to corporate and commercial clients, MCB‟s flexible
solutions reach out to a diversified audience -reflected in all levels of MCB tower
OUR VISION & MISSION
Challenging and Changing the Way you Bank .
Our mission is to make current software of MCB more efficient, reliable and customer
friendly. Customers satisfaction is our mission and we are trying our utmost to make a better
software for MCB.
We are the trustees of public funds and serve with integrity & commitment. Ethical behavior
is of critical importance to us. We adopt full compliance with internal and external policies
and procedures, operating within the legal framework
We continuously seek to exceed our customer’s expectations, forging and maintaining long
We strive to be the market leaders in innovative products and services offering customized
financial solutions with flawless execution
The diversity of our people is our strength. We inspire and challenge each other – working
together to achieve synergy
Our people are our most valuable asset. We are committed to a result oriented culture. Our
goals are clear and merit is the only criterion for reward
As responsible citizens we contribute to the social welfare of the
community we live in
Main theme project
We are developing the latest account opening form software in VB which
we have all the data about the people using MCB accounts and the people that are
involve in the account opening catagory or sequence
The 2004 results depict the success of the bank‟s restructuring initiatives that
were aimed at streamlining of domestic operations and empowerment of the
field to facilitate decision-making, teamwork and communication. MCB now
feel better positioned to pursue its drive for diversification of revenue base to
preserve its margins and ensure optimum returns for its stakeholders. These
results have been possible due to the commitment and dedication of its staff.
MCB express its appreciation to the bank‟s valued customers and the
regulators for their confidence as MCB consolidate its position as the
“Best Emerging Market Bank from Pakistan” for the year 2005 „Global
Finance‟ USA, May 2005
HBL is one of the “Top 100 Banks of Asia” „Euro money‟ UK, March
Bank of the year 2001, 2003&2004 for Pakistan „The Banker‟ financial
times Group UK.
Best Foreign Exchange Bank in Pakistan „global Finance‟ USA, March
Amongst Top 1000 Banks in the world and Number 1 in Pakistan ‘the Banker’
Financial Times Group UK, July 2005
Divisions of MCB
In order to perform all the functions, the MCB Ltd. has made some divisions,
which perform some specific functions. Following are the divisions:
The main function of this division is to make the credit policies, and also to
do credit ceiling, which means the maximum amount of credit that can be
given to a certain client. This division also looks for the agricultural and small
loans. It also considers the cases of right off i.e. bad debts.
Corporate credit Division
The major function of this division is to handle the big loans and industrial
financing, I.B.R.D. It also does the evaluation of credit ceiling policy devised
by the credit division.
This division has to look after the administration of MCB Ltd. outside
Pakistan. It takes care of all the affairs about the advances given outside, the
management of the branches of the bank outside Pakistan, the posting of
employees outside Pakistan etc.
Recovery and Litigation Division
This division comes into operation when recovery of advances given
becomes difficult or impossible. It is the job of this division to decide whether
to go court against the client or not.
Audit and Inspection Division
The major function of this division is to carry out the inspection of rules
and policies. It also inspects the books of accounts, whether they are kept
rightly or not.
This division consists of two wings the personnel wing and establishment
The personnel wing concerns with employee welfare and administration. It
looks after things like rules relating to the administration of employees, the
medical bills etc. There
is also a disciplinary cell, which is for punishments if an employee does
something wrong. The establishment wing has a main function of controlling
the debt stock i.e. furniture, transport facility, stationary, sports portfolio,
security arrangements, and staff welfare.
Research Corporate Planning and Human Resource Development
Their main job is to do human resource management. For this purpose
there are staff colleges in Pakistan. There are four of them. They give training
to employees outside organization and also outside the country. In 1998 MCB
ltd. staff colleges have trained about 7992 employees out of which 321 were
executives 5553 officers and 1878 other staff. Outside MCB Ltd. they trained
128 executives, 113 officers and 2 other staff. They have their own staff and
also engage faculty from Punjab University and LUMS.
Engineering and Maintenance Division
The job of this division is maintenance of buildings, construction of
projects, project designing. The head of this division is an engineer who
has designation of executive
Swap aimed at providing cross currency interest rate hedge for one of its
prime clients. This is a watershed, being the first such transaction to have
been successfully launched in Pakistan and will serve as the foundation stone
for the promotion of derivative products.
MCB has undergone a paradigm shift by synchronizing the adoption of
technology with product development as they view it as a tool for optimizing
customer satisfaction. Round the clock payment of utility bills in important
cities is now in place and branches covering 85% of the bank‟s business will
be fully automated on a real time basis. While the “One-Link” ATM switch
sharing arrangement will serve to enhance the 24/7 banking facility available
to our customers, MCB is expanding its owned ATM base as well.
MCB is also inviting local and international software solution providers for the
supply, implementation and maintenance of the Core Banking Application
software for its domestic and overseas branch banking operations. In addition
to the Core Banking Application it is essential to understand the role of MCB
as a major collection agent for the Government of Pakistan with over 34
different types of receipts and disbursements done through 1189plus
branches of the bank. On an average the bank has approximately 1.5 million
transactions per day for approximately ten million customer accounts across
Pakistan. The Project includes computerization of Trade Finance, Retail,
General Ledger / Finance, Investment Banking, Corporate Banking, National
Investment Trust System, Litigation Monitoring, Credit and Risk Management
System and Card Services.
MCB continually strive to adopt the best corporate governance practices to
safeguard the interests of our depositors, customers and shareholders.
They have substantially intensified the scope as well as frequency of our
internal audit operation while employees are encouraged and rewarded for
compliance with the high ethical standards that are been set
Function of MCB as a representative of State Bank
Collection of cheques and bill of exchange for its customers.
Paying insurance premium, rent or other obligations of the customers.
Collecting interests due, dividend, pensions and other sums due to
Transferring of money from place to place.
Acting executors, trustees for the customers.
Providing safe custody and jewelry, documents or securities.
Issuing of travelers cheques and letter of credit to give credit facilities
Purchasing shares for the customers.
Accepting bills of exchange on behalf of customers.
Undertaking foreign exchange business.
Furnishing trade information and tendering advice to customers.
Formulating operation policy guidelines for the banks.
Laying down performance criteria for banks and taking steps for
ensuring their observance.
Evaluating the performance of the banks in the context of operational
guidelines issued to the banks.
Determining the areas of coordination of the banks.
Formulating schemes under section of the act.
Making recommendations to the federal government for the
appointment of the president and members of the executive board.
Analyzing and appraising financial statement including balance sheets
and profit and loss accounts of banks and appointment of auditors of
Conducting such surveys, inquiries and appraisals as may be
necessary for the purpose of this act.
Exercising and performing such powers and functions of the federal
government under the act and such other functions as the federal
government may assign to it.
Establishing a research department or conduct banking research and
in particular study overseas banking operation and problems of the
Establishing a central training institution for improving bank services.
Coordinating the planning of the operations of nationalized commercial
banks, and exercising general overall checks on the cost of their
Appointing lead banks and to apportion share of advance among the
banks in respect of consortium loans financed by the nationalized
commercial banks only, in accordance with resource availability of
Watching the progress of the implementation of the rulings made in State
Bank Annual Inspection Reports and the remedial and corrective measures
taken by the banks with a view of removing imbalances.
Branch Network Growth of MCB
Year Total Branches
2002 – 2006 more than
. Business Operation:
A. Organizational Structure (Organizational Chart)
The structure of MCB is shown in the organizational chart. As the chart shows
the top governing body of MCB Ltd. is the board of directors. The board of
directors elects a president who then heads the executive board of directors,
which comprises of provincial chiefs and division heads etc.
Board of Directors
The board of directors is the supreme governing body of MCB. It comprises of
a government representative, Pakistan Banking Council Nominee, Nominee of
corporate sector and three directors from MCB.
Executive Board of Directors
The Executive Board of Directors comprises of the four provincial chiefs, the
three directors from Board of Directors, and the division heads. These people
run the organization. They are answerable to the president and the president
is answerable to the Board of Directors.
Structure of a Provincial Office
A provincial chief heads a provincial head office. As the organizational chart
shows that under a provincial head office there are regional offices. In Punjab
there are about nine regional offices. Under each regional office there are two
or three zonal offices and under each office there are fifteen to twenty
SENIOR EXECUTIVE VICE PRESIDENT
EXECUTIVE VICE PRESIDENT
ASSISTANT VICE PRESIDENT
GRADE I OFFICER
GRADE II OFFICER
GRADE III OFFICER
Manager Credit Manager Credit
FEX* Manager JB* Manager Admin Compliance
[Sections] [Sections] [Sections]
FEX Inquiry Reconciliation Audit /Inspection
Export Deposits Dispatch To sign all Br. Returns
Import Bills Dead Stock Money Laundering
Remittance Clearing Security .etc
F/C A/C Utilities Staff Welfare
*FEX Foreign Exchange
*JB Journal Banking
B. (SWOT) Analysis
MCB one of the largest financial institutions of Pakistan with eight million
of customer base MCB holds 24.6% share of time and demand deposits in
the country. Local currency deposits comprise 67% of bank's total deposits
while foreign currency deposits account for the rest.
MCB has an extensive domestic branch network of 1400 (according to the
latest data) branches located all over Pakistan. The Bank also has a
presence in 19 international locations including the USA, United Kingdom,
Europe and the Far East.
MCB 's total assets stood at Pak Rs.370 billion on December 2000. This
included total earning assets of about Pak Rs.268 billion with gross loan
portfolio of Pak Rs.140 billion. The bank also has an investment portfolio
of Pak Rs.91 billion, which comprises treasury securities, corporate bonds,
shares and other securities.
MCB cash provision as percentage of non-performing loans equal to 60%
this coverage factor for the non performing loans is the highest amongst
the nationalized commercial bank.
MCB is working as right arm government of Pakistan as it is responsible
for all claims of government for recovery as well as payment. All depositor
of MCB are in relief that their money security is guaranteed by government
It acts as an agent of the Central Bank wherever the State Bank does not
have its own Branch.
MCB staff especially at lower considers their work as burden. They usually
waste time in other task a part in performing their duty. Using government
property for there own need. They are reluctant to accept change brought
by latest restructuring efforts.
The general out look and interior layout of branches are not as required
according to modern banking
MCB bearing up large burden in running those branches, which are not
producing any income but keep on adding expenditure.
MCB is relying on its traditional sources of income it has not taken benefit
from innovation in banking like introducing retail banking or consumer
banking and using any type of scheme to generate more deposits and
producing more advances.
MCB is far behind in offering modern banking facility like automated teller
machines then other commercial bank in Pakistan as only eighteen
branches in all over country have this facility.
MCB has only 55% on line branches. While from remaining branches data
gathering is time consuming, and not fool proof. Quantum of settlement
within different branches is pending because of this updating daily record
is becoming very difficult.
Customers have to follow long lengthy procedure for opening of account
as well applying for loans which discourages most of the people to invest
In MCB, most of the time merit not has importance in hiring of employees.
Such practices are black spot on the face of bank and resulted big losses
and fraudulent acts by MCB own employees.
Reorganizing efforts going on in the MCB has open many opportunities for
MCB to grow. MCB current management has boarder vision. They have taken
steps to improve customer services, streamline internal procedure and
creating a delectating climate for technology initiative.
To achieve above mention objective they have created operation group
Starting of the retail banking initial working.
Setting of target for of making at least 300 branches country wide on line.
Closing of all those branches, which are burden on MCB.
Management to offer specialized services to major corporate including
advisory and debt syndication introduces the concept of relationship
Comprehensive training programs has been develop to up grade the core
banking skills of the existing staff as well as integrate high quality hiring.
To improve the motivation of staff a merit-based culture is being promoted.
Through overhauling the manpower recruitment preservation and
performance appraisal system.
These actions taken by current management provide a great opportunity
for MCB for making it future prosper and can make MCB not less than any
modern commercialize bank in Pakistan.
Following are the major threats which national bank of Pakistan is facing:
Major threats MCB facing is from its competitor especially from
denationalized commercial bank. In which MCB is on the top of the list,
The Bank provides 24 hour banking convenience with the largest ATM
network in Pakistan covering 15 cities with over 100 ATM locations.
Retail banking and consumer banking resulting in the products such as
credit cards, housing finance and automobile finance lending to small
individual consumers, and purchases of automobiles, housing, and
consumer goods are generally made on a cash basis. These are causing
another threat, if not counter will result in significance loss of customers.
Recently banks and other financial institutions have introduced innovative
schemes to attract deposits, like gift cheque scheme by MCB. These
schemes offer prizes on short and long term fixed deposits, through lucky
Now banks are using technology which covers the distance no matter how
far away any one, through a satellite based, on-line real-time banking
system and by offering telephone banking, electronic funds transfer, E-
Banking and other modern facilities.
C. Marketing Strategy
The marketing strategy of MCB can be foreseen by segregating it according
to the 4 P‟s of marketing.
1 – Product
2 – Price
3 – Place
4 – Promotion
1 – Products and Services Provided by MCB
MCB Advance Salary
10 month salaries in advance (certain conditions apply).
Repayable in 5 years.
No processing charges; no collaterals, no guarantees, no insurance.
Mark-up charged at 11% per annum on reducing balance method.
MCB Cash n Gold
Facility of Rs.5000 against 10 Gms of gold.
Mark-up 11% per annum.
No maximum limit of cash.
Repayable after one year.
Roll over facility.
No penalty for early repayment.
MCB Kisan Dost
Loans available for the farmers for production, development purposes,
for purchase of tractors, for installation of tubewells, for purchase of
agricultural implements, micro loans, for godown construction, for
construction of fish pond, for livestock farming, for milk processing, for
cold storage, bio-gas plants etc.
Mark-up 11% per annum.
Loans available at the farmer’s doorsteps.
Agricultural experts to guide farmers.
Loans available against agricultural passbooks, gold ornaments and
If you are looking for a safe, speedy and reliable way to transfer money, you
can now purchase MCB‟s Demand Drafts at very reasonable rates. Any
person whether an account holder of the bank or not, can purchase a
Demand Draft from a bank branch.
If you are looking for a safe, speedy and reliable way to transfer money, you
can now purchase MCB‟s Demand Drafts at very reasonable rates. Any
person whether an account holder of the bank or not, can purchase a
Demand Draft from a bank branch.
Letters of Credit (L.C)
MCB is committed to offering its business customers the widest range of
options in the area of money transfer. If you are a commercial enterprise then
our Letter of Credit service is just what you are looking for. With competitive
rates, security, and ease of transaction, MCB Letters of Credit are the best
way to do your business transactions.
Pak Rupees Traveler’s Cheque are a
There is no restriction on the period of
Availability: At 700 branches of MCB all over the country
Encashment: At all 400 branches of MCB
Limitation: No limit on purchase
MCB Traveler’s Cheque are the safest way to
carry our money
MCB provides another reason to transfer your money using our facilities. Our pay
orders are a secure and easy way to move your money from one place to
another. And, as usual, our charges for this service are extremely competitive.
Move your money safely and quickly using MCB Mail Transfer service. And
we also offer the most competitive rates in the market.
To facilitate its customers in the area of Home Remittances MCB has taken a
number of measures to:
Increase home remittances through the banking system
Meet the SBP directives/instructions for timely and prompt delivery of
remittances to the beneficiaries
The existing system of home remittances has been revised/significantly
improved and well-trained field functionaries are posted to provide efficient
and reliable home remittance services to nonresident Pakistanis at 15
overseas branches of the Bank besides Pakistan International Bank (UK) Ltd.,
and Bank Al-Jazira, Saudi Arabia.
Zero Tariffs MCB is providing home remittance services without any
Strict monitoring of the system is done to ensure the highest possible
Special courier services are hired for expeditious delivery of home
remittances to the beneficiaries.
Short term Investments
MCB now offers excellent rates of profit on all its short-term investment
accounts. Whether you are looking to invest for 3 months or 1 year, MCB‟s
rates of profit are extremely attractive, along with the security and service only
MCB can provide
MCB has accelerated its activities in the stock market to improve its economic
base and restore investor confidence. The bank is now regarded as the most
active and dominant player in the development of the stock market.
MCB is involved in the following:
Investment into the capital market
Introduction of capital market accounts (under process)
MCB‟s involvement in capital markets is expected to increase its earnings,
which would result in better returns offered to account holders
MCB provides Agricultural Finance to solidify faith, commitment and pride of
farmers who produce some of the best agricultural products in the World.
Agricultural Finance Services:
“I Feed the World” program, a new product, is introduced by MCB with the
aim to help farmers maximize the per acre production with minimum of
required input. Select farms will be made role models for other farms and
farmers to follow, thus helping farmers across Pakistan to increase
The agricultural financing strategy of MCB is aimed at three main objectives:-
Providing reliable infrastructure for agricultural customers
Help farmers utilize funds efficiently to further develop and achieve
Provide farmers an integrated package of credit with supplies of
essential inputs, technical knowledge, and supervision of farming.
Agricultural Credit (Medium Term):
Production and development
Development loans for tea plantation
Working Capital and Short Term Loans
Medium term loans and Capital Expenditure Financing
Loan Structuring and Syndication
MCB‟s leadership in loan syndicating stems from ability to forge strong
relationships not only with borrowers but also with bank investors. Because
we understand our syndicate partners‟ asset criteria, we help borrowers meet
substantial financing needs by enabling them to reach the banks most
interested in lending to their particular industry, geographic location and
structure through syndicated debt offerings. Our syndication capabilities are
complemented by our own capital strength and by industry teams, who bring
specialized knowledge to the structure of a transaction.
Cash Management Services
With MCB‟s Cash Management Services (in process of being set up), the
customer‟s sales collection will be channeled through vast network of MCB
branched spread across the country. This will enable the customer to
manage their company‟s total financial position right from your desktop
computer. They will also be able to take advantage of our outstanding range
of payment, ejection, liquidity and investment services. In fact, with MCB,
you‟ll be provided everything, which takes to manage your cash flow more
MCB is at the forefront of international banking in Pakistan which is proven by
the fact that MCB has its branches in all of the major financial capitals of the
world. Additionally, we have recently set up the Financial Institution Wing,
which is placed under the Risk Management Group.
The role of the Financial Institution Wing is
To effectively manage MCB‟s exposure to foreign and domestic
Manage the monetary aspect of MCB‟s relationship with the
correspondents to support trade, treasury and other key business
areas, thereby contributing to the bank‟s profitability
Generation of incremental trade-finance business and revenues
1 Link ATM Network
MCB has joined 1 Link ATM Network, linking it to the endless ATM Banking
opportunities. “1Link is the ATM Network that works for you”. Today marks
the formation of a formidable banking technology network - 1 Link. Eleven
banking powers bring MCB to the largest nation wide ATM Network that
provides reliable 24-Hours access to cash. ATM Network supports
transactions of following banks: Bank Alfalah, Union Bank, Allied Bank
Limited, Askari Bank, Habib Bank, ABN Amro, Soneri Bank, Bank Al Habib,
UBL, PICIC commercial Bank at the following places:
2 – Price
In banking sector price is meant to be the interest rate bank is charging from
the customer. The interest rates charged by MCB is the cheapest as
compared to any other bank working in Pakistan. They are using the Market
Penetration Strategy in terms of pricing.
3 - Place
It has been a known fact country wide that MCB is the Nation‟s Bank. It has
the most enormous network of branches all over the country, which exceeds
over 1400, and they also give an image to the customer of delivering goods at
the doorstep. In this case they are using Market Push Strategy.
4 – Promotion
They are working right from the beginning of banking sector in Pakistan. So,
they don‟t need promotion strategies like the other banks working in Pakistan
but without letting people know about your product will cease survival. So,
they have been continuously promoting the bank through mediums of
electronic, print and Internet.
Moreover it‟s a bank of masses where everyone can open his/her account
and no credit limit is required as they have a motto of facilitating each and
everyone. This is the only reason fro which they have opened branches in
places where no other bank exists for example a district like Pind Dadan Khan
has a branch of MCB and a single branch of any bank existing in last village
of Pak-China border is of MCB.
D. Competitive strategy
Banking industry in Pakistan is progressing in leaps and bounds and with
these drastic increases in number is raising the bar of competition amongst
the banking sector. Last year the better half of the foreign direct investment
was in the banking sector. To stay in this incredible amount of pressure of
competition and delivering the goods on the deadlines to obtain customer
satisfaction and loyalty is the need of the hour and MCB
has always proved itself in distant times by providing the cheapest interest
rates on loans given to the corporate world, employees of government
institutions in terms of Advance Salaries and to farmers made the bank to
stand tall in the competition and contributed a lot to the competitive strategy of
the bank. They are mainly using the Market Penetration Strategy to attract
E. Business Process Analysis
The only problem bank is facing is the hierarchy at the top level as all the
major decisions regarding marketing plan, financial advices and human
resource policies of the bank are to be taken by the S.E.V.P (Senior Executive
Vice President Mr. Tariq Taj) which creates a bit of bottle neck situation in
case when the S.E.V.P is not present. However, they have appointed a lot of
V.P‟s (Vice President) and A.V.P‟s (Assistant Vice President) to manage daily
operations. Through the following diagram that bottleneck is shown.
Bottle neck diagram
Marketing decision are
made by top
slows over all
4. Learning as an internee
I joined MCB Empress Road branch. First day I reached the bank at start of
official working time &I reported to the manager who introduced me about
functioning of branch and its staff. MCB Empress Road Branch is a
commercial branch, so during ten weeks of my internship, I worked in
following departments of bank to seek maximum knowledge about banking
practice and also about management skills.
Management of Branch
Management of MCB that helped me to provide the required data, which
o Mr. M Manshah
o Mr. Bilal Rafi Butt
o Mr. Tanveer Ahmed
o Mr. Salman Butt
o Mr. Sheheryar Malik
o Mr. Danish Ahmed
o Mr. Emad Shah
General banking Information
First of all, I was asked to work in different sections of general banking. The in
charge of general banking having good command on banking operation. Here
I dealt with new customers who wanted to get information about the branch
and willing to deal with branch. This is very interesting department because
here I met people of different types and deal with them accordingly.
I worked in this department for 3 weeks. In this department I have two type of
How to cash the cheques.
How to deposit cheques/cash.
How to Cash the Cheques
I received the cheques from the customer who wants to withdraw amount and
gave him a token after writing the token number on the cheques. Before doing
this following things must be noted.
The double signature of the customer behind the cheques.
Check the date. If date on the cheques is 6 month later, then cheques
can be accepted. But a post-dated cheque cannot be accepted for
Amount in figures and word. In case of overwriting, alter signature is
After checking these particulars, I stamped the cheque with “pay cash,
posted, signature, verify, stamp”, And then I posted the cheque in ledger, If
the cheque is of amount more than 25000 then withholding tax will also be
deducted. The tax is Rs1/thousand on amount exceeding 25000. If the
cheque is more than amount of 100,000 then 2 officers will pass this cheque.
How to Deposit the Cash
If the customers want to deposit amount in form of cash, then he is required to
fill deposit slip in which the customer account #.and amount of cash is
mentioned. This slip is given to cashier with the pre mentioned amount.
This slip will be attached with the cheque. If the cheque is of same branch
then simple transfer entry will be passed, but if the cheque is drawn on other
banks or on other branches of MCB then cheque will be sent for clearing. The
stamp of transfer and signature verify is stamped on it.
In this department I have worked for 3 week. Here I learnt how the clearing is
made. All the clearing work is computerized. The clearing cheques and the
slips are to be entered separately in the ledgers. If more than one cheques
are attached with slip then first enter the data about first cheque, i.e. the
cheque number, name of the branch of the bank on which the cheque is
drawn, and then enter the other cheque.
When the clearing has been prepared then the next step is to stamp the
cheques & slips with “Clearing Stamp” and state bank stamp. Clearing stamp
is to be stamped in front of cheque & slip while state bank stamp is to be
stamped back of check and slip. Cheques & slips are to be stamped carefully
because sometimes clearing has been returned due to the reason of not
properly stamped. After this clearing is to be passed to the in charge officer
who signs on it, and clearing are handed over to the agent before 1 P.M
Reasons Returning Clearing Cheques
Cheque will be returned in the following situations
There is less balance in customer‟s account
Difference in amount in words and figures,
Cheque is post dated
Cheque is out of date
Payment stopped by the drawer
Methods for returning Clearing Cheques
First of all a debit voucher will be filled in which the amount of
clearing cheques will be written.
A memo will be attached to Cheque in which the reason of
returning the Cheque is mentioned. The stamp of transfer and
branch is stamped on it.
The bank will keep the debit voucher while memo with the
Cheque will be returned to clearing agent.
The data is also written in a ledge in which all amount and
reason of return is written.
Account Opening Department
Procedure for Opening Account
Here I learn the procedure of opening & closing account. The both accounts
(current account & profit and loss account) have the same opening procedure.
Now I briefly explain the procedure.
First I gave the account opening form to a new customer who is willing
to open an account in this bank.
After this, I briefly explain the requirements of account opening form
and told the customer about the necessary documents to be attached
with this form.
Besides these necessary attachments such as identity card
photocopy, photographs of account holder, bank also required the
proper introduction of new account holder by the existing account
holder, for the purpose of eliminating of his factitioness. The customer
is required to fill the application form with the following true
o His full name and address.
o Detail of account either single or joint
o NIC‟s photocopy
o Introducer‟s full name, address, his account number,
signatures, his NIC‟s photocopy.
After this, I marked an account number in account opening register; I
took the signature of new account holder on specimen signature card
and then entered his name against the account number.
Procedure of Closing Account
The customer can also close the account. The customer is required to submit
an application for closing the account. Then the account is closed out and the
account is closed out and his balance is paid to him. Chequebook is returned
back to bank and the officer cancels the remaining cheques in the
Bills Collection Department
I spent 3 days of my training in bills collection department. Here I collected the
utility bills of Gas, Electricity, Water & Telephones, Government challans, and
income tax forms slip. After collecting bills Scrolls are prepared against each
After this the next step is to transfer the amount of bills collected by MCB to
the government, e.g. the payment of electricity bills is transferred to WAPDA
branch, the amount of all water bills is transferred to WASA and the amount if
telephone bills is transferred to LDA branch. All the entries of Government
and income tax are entered in Government register. The time of submission of
Government is 5‟o clock. MCB charges Rs 2 for the bills of electricity and Sui-
MCB has maintained both computerized and manual work system. Debiting
does manual work, posting each and every transaction in computer does
crediting the accounts in ledgers and computerized work. During my
internship I spent 3 days in this department. This is very risky work, it requires
more expertise and there is no chance of any mistake.
In computerized work, MCB has set different numbers for different
transactions, e.g. for clearing cheques there is separate code number.
Similarly for transfer and simple cash cheques there are different codes. Each
cheque is posted in computer before it goes to the cashier for payment. When
cheques or other documents are posted in to the computer then cheque is
stamped with “computer posted” stamp.
After doing all the computerized work transfer scroll is checked, if transfer
scroll is balanced, it means work done is ok, otherwise there will be mistake.
At the end of the day, both computerized and manual work balance will be
checked if the balances tally, then this balance is called the closing
balance of this day, and the opening balance of the next day. If there is
any deficiency in amount then the responsibility will fall upon bank. In case
of excess balance, the excess balance will be transferred to salary
account of the bank staff
I spent more than 2 weeks in this department. It is a most important and
interesting department. Here I know how the amount is transferred and what
the procedure is. Remittance is the monitory transfer from one place to
another place, from one branch to other branch, and from one country to
another country to fulfill the requirements of the customers by the order of the
customer. The following are the main functions of this department.
1 Demand draft
2 Pay order
3 Telegraphic transfer
4 Mail transfer
It is a bill made either on demand or otherwise by one bank on another in
favor of third party or by one branch of the same bank or by the head office on
a branch or vice versa.
Issuance of Demand Draft
The amount both in words and figures is written and the applicant has to sign
on two places, which are helpful in case DD is to be cancelled. The applicant
then has to deposit the cash at the counter. The officer in charge at the
counter will affix the stamp cash received at the DD issued form. After the
cash has been received the DD will be issued to him. Each DD has its own
register along with name of the party in whose favor the DD was issued.
Cancellation of Demand Draft
For cancellations customer as to give an application to the bank that the DD is
no longer required and has to sign the proper verification of the signatures will
cancel the DD, and will pass the entry by debiting to main office and crediting
party account. The bank will then issue a debit device to the main office.
It is a local document. It is made for inter city. The procedure of pay order is
similar as to others. The person who wants to transfer his money inter city, is
required to make a pay order. If he is the account holder of bank then he is
required to make a pay order. If he is the account holder of bank then he is
required to pay Rs. 50 as the pay order charges. If the person is not the
account holder of that bank then he has to pay Rs. 100 as the charges of pay
Issuance of Chequebook
After opening the account bank send a letter of thanks to new account holder,
at his home address within 7 days of application form, for the confirmation of
address. On the other hand if the customer does not operate is account for a
long time, then his account will be treated as Dormant.
Procedure of Issuing Chequebook
After receiving the letter of thanks, the customer is required to fill slip with
his/her account number, chequebook leaves and the signature. The passing
officer verifies the signature of the account holder and chequebook is issued
to the account holder after keeping the record in chequebook register. This is
the procedure of issuing chequebook at first time.
The chequebook carries a requisition slip for the issuance of new
chequebook. The account holder duly signs the slip; bank verifies the
signature and chequebook is issued to the account holder. The Chequebook
no is also entered in slip. The account no, against which chequebook is
issued, the chequebook number, name of the account holder &date of
issuance is also recorded in chequebook register and the signature of account
holder will be taken on it.
Issuance of Chequebook to 3rd Person
in case if account holder sends a third person to get his chequebook then the
procedure is as follows,
1 The account holder gives an authority letter to the third party.
2 The account holder verifies the signature of the 3rd person on that
3 The bank officers get the signature of that third person to confirm
whether he is the same, that account holder has sent for the purpose of
4 After verification, bank issues the new chequebook and the bank keeps
Charges of Chequebook
MCB charges Rs 3 per leaf of Chequebook. In case if Chequebook is lost
then the new Chequebook without requisition slip will be issued. In such case
bank charges Rs. 100 in addition to Chequebook charges. There are three
types of Chequebook of 25, 50 and 100 leaves with charges of 75, 150 and
In the end I would just like to say that what ever time I have spent in
MCB WALTON Road Branch was the best time I had during my all jobs
I exactly don’t know the reason but I think the main reason behind it is
Mr. Abdullah Masood, my Banking Operation teacher. What ever that
teacher told me and my class fellows regarding banks in class, that’s
what I exactly found in MCB. To be honest, I think this is the only
subject that will be helpful to me throughout my life because this was
the total reality and is practice able
Account opening form sequance
First of all we have the branch name of MCB and branch code of MCB he
date of opening account and the account number and SBP code which we use in HR
department it is the secret catagry of the HR which they does not disclosed to any
Now we are showing u categories of opening account
Type of account
In which we have in the
Individual accounts have two types
Joint stock company (public / private)
Partnership (Registered / Unregistered)
Association / Club / Trust
Govt. Institution (Federal / Provincial)
Nature of Account & Currency
Basic Banking Account (BBA)
Smart Saving Account
The main thing which we are making in our project of computer
Name :( Mr. /Mrs. /Ms.) as per CNIC ---------------------------------------------------
Father's Husband's Name: ----------------------------------------------------------------
Date Of Birth: ---------------------------------------------------------------------------------
Marital Status: --------------------------------------------------------------------------------
CNIC No: ---------------------------------------------------------------------------------------
Passport No: ----------------------------------------------------------------------------------
Place & Date of Issue: ------------------------- Expiry: -------------------- NTN: ------
Tel Res: --------------------- Tel Office: ----------------------- Mobile: ------------------
Relationship of the project:
H/R DEPT Appoint Employed
Account Open Customer
We want to make the relation ship between the HR Dept which have all the
record the entire customer recorded automatically in our software by making
entity and attributes ……….