Cmplete Intrnship Report

7/31/2019 Cmplete Intrnship Report

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EXECUTIVE SUMMARY

This document provided details of my achievements in terms of practical

implementation and understanding of working environment in banks. During the

course of my internship at Muslim commercial Bank (JR) Branch Chiniot (0333), i

worked in the remittance deprtment, account opening and clearing department.

A bank is now a financial institution which offers savings and cheque

accounts, makes loans and provides other financial services, making profits

mainly from difference between interest paid on deposits and charged for loans,

plus fees for accepting bills and other services.

The major operations of MCB include: Accepting various types of

Deposits, phone Banking, ATM’s, Guarantees etc.The various departments at MCB operate independently. They generate

their revenues and after deducting the expenses the net income is transferred to

bank by these departments.

MCB offers a wide range of products from account opening to

specialized products under the main categories like; Personal Accounts, SME

Products and Personal Finance etc.

On the whole, MCB has given me an intern experience and an insight to

practical work environment and therefore, worthwhile learning experience. I

believe, there is nothing like getting hands-on experience because it can only

prepare you for what the workforce is looking for.

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INTRODUCTION

The word 'Bank' is said to have been derived from the words Bancus or

Banque or Bank. This history of banking is traced to as early as 2000 B.C. The

priests in Greece used to keep money and valuables of the people in temples.

These priests thus acted as financial agents. The origin of banking is also traced

to early goldsmiths. They used to keep strong safes for storing the money and

valuables of the people. The persons who had surplus money found it safe and

convenient of deposit their valuables with them. The first stage in the

development of modern banking, thus, was the accepting of deposits of cash

from those persons who had surplus money with them.

The goldsmiths used to issue receipts for the money deposited with them.

These receipts began to pass from hand to hand in settlement of transactions

because people had confidence in the integrity and solvency of goldsmiths.

When it was found that these receipts were fully accepted in payment of debts;

then the receipts were drawn in such a way that it entitled any holder to claim the

specified amount of money from goldsmiths. A depositor who is to make the

payments may now get the money in cash from goldsmiths or pay over the

receipt to the creditor. These receipts were the earlier bank notes. The second

stage in the development of banking thus was the issue of bank notes.

The goldsmiths soon discovered that all the people who had deposited

money with them do not come to withdraw their funds in cash. They found that

only a few persons presented the receipts for encashment during a given period

of time. They also found that most of the money deposited with them was lying

idle. At the same time; they found that they were being constantly requested for

loan on good security. They thought it profitable to lend at least some of the

money deposited with them to the needy persons. This proved quite a profitable

business for the_ goldsmiths. They instead of charging safe keeping charges

from the depositors began to give them interest on the money deposited with

them. This was the third stage in the development of banking.

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DEFINITION OF BANK

The term 'bank' is being used for a long time, yet it has no precise

definition. The basic reason is that the commercial banks perform not just one

but many types of functions. The term bank has been defined differently bydifferent authors. Some are as follows:

According to Crowther,

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

According to G.W. Gilbert,

"A banker is a dealer in capital or more properly a dealer

in money. He is an intermediate party between the

borrower and the lender. He borrows from one party and

lends to another."

According To Bamkinh Companies Ordinance

U/s3 (B) of Banking Companies Ordinance 1962 "Banker

means person transacting the business of accepting for

the purpose of lending or investment, of deposits of

money from the public, repayable on demand or

otherwise and withdraw able by cheque, draft, order or

otherwise and includes any Post Office Savings Bank."

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HISTORY OF BANKING IN PAKISTAN

The interesting point which I observed during the span of mine internship

was the historical background of Banking & Financial sector which is the one in

which great improvement and growth is observed since the formation of

Pakistan. For studying the growth of this sector we can divide it into three stages,

which are as follows

a) Pre-Nationalization Era

b) Nationalization Era

c) Post Nationalization Era

A) Pre Nationalization Era

There were only two Muslim banks in Indo Pak before partition, they were;

Habib Bank Ltd. (estd. in 1941 at Bombay) & Australia Bank Ltd. (estd. In 1944 at

Lahore). Hindus or Foreigners either owned all other banks, at that time. At the

time of partition there were 631 bank branches in area, which came under

Pakistani control. But due to blood shed and violence at large scale, mostly

branches were closed and the disparity can be assessed from the fact that onJuly 1948 there were 195 branches with deposits of Rs.88 crore (880 million)

only. Also a factor lagging in Pakistani industry was a central bank of its own, by

that time Reserve Bank of India was acting as central bank for both countries and

same currency notes were used in both territories. But Reserve Bank of India

was biased and Set down Pakistan on many occasions such as the issue of

funds transfer etc.

In this period drastic steps were taken in government sector for theimprovement of overall position. The private sector also responded to these

changes and some very positive changes were observed. Some of the steps

taken by the government in this regard were as under:

i. Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.

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ii. Setting up of National Bank of Pakistan in November, 1949 to control the

'jute' export in East Pakistan and to act as agent of SBP.

iii. Larger powers were given to SBP through SBP Act (1956) for controlling

purposes.

iv. Banking Companies Ordinance 1962 for protection and guidance to

banks.

v. Establishment of specialized banks, such as ADBP (1952);

a) HBFC (Nov, 1952);

b) P1CIC (Oct, 1957)

c) IDBP (Aug. 1961);

d) NDFC (Jan, 1973).

These were the steps, which built a strong banking sector in Pakistan.

This is also obvious from the facts that by 1973 there were almost 10 foreign

banks were working in Pakistan and all over deposit position was around

Rs.2300 crore (23,000 million). A bird eye view of 5 top banks was as given

below:

BANKING SECTOR IN PAKISTAN IN 1973

BANK NO.OF BRANCHES DEPOSITS

Habib Bank Ltd. 667 Rs. 6,160 (million)

National bank of Pakistan Ltd. 579 Rs. 5,660 (million)

United Bank Ltd 497 Rs. 5,670 (million)

MCB Bank Ltd. 506 Rs. 1,640 (million)

Allied Bank Ltd. 145 Rs. 570 (million)

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B) Nationalization Era:

On January 01, 1974 all Pakistani banks were nationalized through

Nationalization Act 1974. Under this law all Pakistani banks became a public

property. All small banks were merged in bigger banks to create 5 major

Pakistani banks Pakistani banks. These banks were to control by Pakistan

Banking Council. There are still controversies about this act of government as

whether it contributed in success of failure of banks. However the major changes

after nationalization were as follows:

• Working of banks was extended to under developed areas.

• Market expansion for credit and deposits.

• Bank were encouraged to extend cooperation to neglected areas

• Decrease in service level of bank officers.

• Decrease in profitability as well.

C) POST NATIONALIZATION ERA

In 1990 the government decided to denationalize all the nationalized

institutes. Some was also suggested in banking sector. For this purpose,

amendments were made to Nationalization Act 1974 and two nationalized banks

were privatized. Along with this a permission to open banks in private sector was

also granted. The rules regarding establishment of new banks and for incoming

foreign banks were also relaxed.

The-three privatized banks are;

a) MCB taken up by a private group in April, 1991

b) ABL taken up by its own employees in September 1991.

c) UBL taken up by UAE party in 2002.

After these changes a large number of private and foreign banks started

their operations in Pakistan and the present status can be seen from the

following figures:

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Scheduled Banks

Category No. of Banks

Nationalized Commercial Banks 3

Private / Privatized Commerce Banks 18

Public Sector Specialized Banks 4

Foreign Banks 19

Total Schedule Banks 44

In addition to above mentioned scheduled banks there are 11

Development Financial Institutes (DFI’s), 16 Investment Banks and 21 leasing

and Modarbah Companies.

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PAKISTAN BANKING SECTOR

• Nationalized Commercial Banks

• Privatized Banks

• Specialized banks

• Private banks

• Foreign banks

• Other financial Institutions

Nationalized Schedule Banks

• First Women Bank Ltd.

• National Bank of Pakistan

• Habib Bank Ltd.

De-Nationalized Schedule Banks

• Allied Bank of Pakistan Limited

• MCB Bank Limited

• United Bank Ltd.

Specialized Banks

• Zarai Taraqiti Bank of Pakistan (ADBP)

• Industrial Development Bank of Pakistan(IDBP)

• Punjab Provincial Cooperative Bank

• Federal bank for Cooperatives

Private Schedule Banks

• Askari Commercial Bank Ltd.

• Bank Alfalah Ltd.

• Bank Al-Habib Ltd.

• Bolan Bank Ltd.

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• Faysal Bank Ltd.

• Habib Credit & Exchange Bank

• Indus Bank Ltd.

• Metropolitan Bank Ltd.

• Platinum Bank Ltd.

• Prime Commercial Bank Ltd.

• Prudential Bank Ltd.

• Soneri Bank Ltd.

• The Bank of Khyber

• The Bank of Punjab

• Union Bank Ltd.

Foreign Banks

• ABN AMRO Bank N.V.

• Albaraka Islamic Bank BSC (EC)

• American Express Bank Ltd.

• ANZ Grindlays Bank Ltd.

• Bank of America (NT & SA)

• Bank of Tokyo Mitsubishi Ltd.

• Bank of Ceylon

• Banque Indosuez

• Citibank N.A.

• Credit Agricole A.G.

• Deutche Bank A.G.

• Doha Bank Ltd.

• Emirates bank International Ltd. P.J.S.C.

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• Habib Bank A.G. Zurich

• Hong Kong and Shangai Banking Crop. Ltd.

• International Finance Investment and Commerce Bank Ltd.

• Mashreq Bank PSC

• Oman International Bank SOAG

• Rupali Bank Ltd.

• Societe Generale, the French Int. Bank Ltd.

• Standard Chartered Bank

• Trust Bank Ltd.

Development Financial Institutions (DFIs)

• Investment Corp of Pakistan

• National Development Finance Corp.

• Pakistan Industrial Credit and Investment Corp.

• Pak Kuwait Investment Company

• Pak Libya Holding Company

• Regional Development Finance Corp.

• Saudi Pak Industrial & Agricultural Investment Corporation

• Small Business Finance Corporation

• House Building Finance Corporation

• National Investment Trust

Investment Banks

• Crescent Investment Bank

• First International Investment Bank

• Atlas BOT Investment Bank

• Security Investment Bank

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• Fidelity Investment Bank

• Prudential Investment bank

• Islamic Investment Bank

• Asset Investment Bank

• Al-Towfeek Investment Bank

• Al-Faysal Investment Bank

• City Corporation Investment Bank (Pak) Ltd.

• Franklin Investment Bank Ltd.

• Orix Investment Bank (Pak) Ltd.

• Trust Investment Bank Ltd.

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HISTORY OF THE MCB BANK LIMITED

Before separation of Indo Pak, the need for more Muslim banks was felt.

And Muslims having strong financial capacity were thinking to invest in this sector

as well. This was the idea which paved the way for setting up MCB Bank Ltdknown as MCB. This was the third Muslim bank in the subcontinent.

History

This bank was incorporated under companies’ act 1913 on 9th July, 1947

(just before partition) at Calcutta. But due to changing scenario of the region, the

certificate of incorporation was issued on 17th August, 1948 with a delay of almost

1 year; the certificate was issued at Chitagong. The first Head office of the

company was established at Dacca and Mr. G.M. Adamjee was appointed its first

chairman. It was incorporated with an authorized capital of Rs. 15 million.

After some time the registered office of the company was shifted to

Karachi on August 23rd, 1956 through a special resolution, now recently the

Head office of MCB has been transferred to Islamabad in July, 1999 and now

Head office is termed as Principle Office.

This institute was nationalized with other on January 1st, 1974. At that

time it had 506 branches and deposits amounting to Rs. 1,640 million. Although.

MCB has a reputation of a conservative bank but nationalization also left its

effects on this institute as well and by end of year 1991 in which it was privatized

the total number of branches were 1.287 and deposits amounting to as high as

Rs. 35,029 million.

Privatization

When privatization policy was announced in 1990, MCB was the first to beprivatized upon recommendations of World Bank and IMF. The reason for this

choice was the better profitability condition of the organization and less risky

credit portfolio which made'' it a good choice for investors. On April 8th, 1991, the

management control was handed over to National Group (the highest bidders).

Initially only 26% of shares were sold to private sector at Rs. 56 per share.

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After Privatization

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 has restructured its asset portfolio and rationalized the cost structure inorder to remain a low cost producer.

After privatization, the growth in every department of the bank has been

observed. Following are some key developments:

• Launching of different deposit schemes to increase saving level.

• Increased participation on foreign trade.

• Betterment of branches and staff service level.

• Introduction of Rupee Traveler Cheques & Photo Credit Card for the first

time in Pakistan.

MCB today, represents a bank that has grown with time, experience and

Pakistan. A major financial institution, in scope and size, it symbolizes a fully

growing tree evergreen, strong, and firmly rooted.

Foreign Trade

The bank conducted import business during the year amounting to RS.

54.0 billion as compare to RS. 56.4 Billion In 2009. The export business slightly

improves to RS. 36.9 Billion From RS. 35.1 Billion. In 2010. Home remittances

decline to RS. 16.7 Billion From 30.7 Billion the decline in home remittances

business was due to freezing of Foreign Currency Accounts, which has affected

the confidence of Pakistanis working overseas.

Year 2010 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 such systems

across vast cultural and economic backgrounds. With over 1400 automated

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branches, 1300 online branches, over 151 MCB ATMs 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 customer’s

benefits.

Social Sector

The bank activity participating in the Prime Minister self-employment

Scheme. The application received from various applicants is being processed on

merit and disposed off as quickly as possible.

The Business

MCB is in it’s over 50 years of operation. It has a network of over 1400

branches all over the country with business establishments in Sri Lanka and

Bahrain. The branch break-up province wise is Punjab (57%), Sindh (21%),

NWFP (19%) and Blochistan (3%) respectively.

MCB has an edge over other local banks, as it was the first privatized

bank. The State Bank of Pakistan has restricted the number of branches that can

be opened by foreign banks, an advantage that MCB capitalizes because of its

extensive branch network.

Fourteen 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 has restructured its asset portfolio and rationalized

the cost structure in order to remain a low cost producer.

MCB now focuses on three core businesses namely Corporate,

Commercial and Consumer Banking. Corporate clientele includes public sector

companies as well as large local and multi national concerns. MCB is also

catering to the growing middle class by

MCB looks with confidence at year 2007 and beyond, making strides

towards fulfillment of its mission, "to become the preferred provider of quality

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financial services in the country with profitability and responsibility and to be the

best place to work".

A major achievement of MCB is that the state bank of Pakistan has issued

a license to MCB to start Islamic banking. Now MCB is setting up a 1

st

Islamicbanking branch at 1st floor shaheen complex, Karachi. This complex starts

working from September 1, 2003.

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VISION STATEMENT

16

Challenging and

Changing

The Way You Bank.



MISSION STATEMENT

To become the preferred provider of quality

financial

services in our country with the profitability

and responsibility and to be best

place to work

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OUR CORE VALUES

Customer Focus

We treat each of our customer equality & as the most important person

while we interact with him/her. We must ensure that we do everything to meet

and exceed the customers expectations with perfect to times, accuracy & quality

services.

Employee Respect & Dignity

We treat each of our employees with fairness, which includes giving

constructive feedback for their development. We celebrate diversity and seek

suggestions from all employees for improvement. We ensure that responsibility &

fairness in all our decision-making.

Team Based Approach

We work towards achievement of our vision & mission as a combines

group. We encourage inter & intra-departmental communications. We treat our

colleagues as our internal customers & ensure that the requirements of internal

customer focus are always met.

Quest for Quality

We ensure that each moment of our time is spent on value adding activity.

We always seek ways for exceeding expectations of customers & colleagues.

We also ensure that we do things right, first time every time.

Good Corporate Citizenship

We ensure that we contribute our due share to the Govt. we realize that

we have a responsibility to the society in which we operate & we seek ways of

playing a positive role for the betterment of the community at large.

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BOARD OF DIRECTORS

19

Mian Mohammad Mansha

Chairman

S.M. MuneerVice Chairman

Muhammad Aftab ManzoorPresident & Chief Executive

Tariq Rafi

Director

Sheikh Mukhtar AhmedDirector

Muhammad Arshad

Director

Shahzad Saleem

Director

Mian Umer Mansha

Director

SArmed Ameen

Director



AUDIT COMMITTEE

Mian Mohammad Mansha Chairman

Shaikh Mukhtar Ahmed Member

Shahzad Saleem Member

CHIEF FINANCIAL OFFICER

Ali Amin

COMPANY SECRETARY

Tameez-ul-haque

AUDITOR

A. F. Ferguson & Co

Chartered accountants

M. Youasuf Adil Saleem & co

Chartered accountants

LEGAL ADVISOR

Chartered accountants mandiwalla & zafar

Advocates & legal consultants

SHARIAH ADVISOR

Dr. Muhammad Zubair Usmani

REGISTERED OFFICE

MCB building, F-6/G-6

Jinnah Avenue, Islamabad

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MANAGEMENT LEVEL

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)

ORGANIZATIONAL SETUP OF MCB

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PUNJAB

NWFP & AZADKASHMIR

SINDH

BALOCHISTAN

KARACHI

LAHORE

PESHAWAR

PROVINCIAL HEADQUARTERS

QUETTA

HEAD QUARTER

CIRCLE OFFICES

BRANCH OFFICES

KARACHI



ORGANIZATIONAL STRUCTURE OF MCB

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 10directors 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

Corporate Banking

These are branches which have an exposure of over Rs. 100 million.

Usually includes multinational & public sector companies.

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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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

40 branches 820 branches 540 branches

MARKETING MIX OF MCB BANK LIMITED

Marketing is the task of creating, promoting and delivering goods and

services to consumers and businesses. Organizations identify and profile distinct

group of buyers who might prefer or require varying products and marketing

mixes. The customer seeks for value and satisfaction. The organizations can

increase the value of the customer offering in several ways e.g. raising benefits,

reducing costs etc. marketing mix is a set of marketing tools that the firm uses to

pursue its marketing objectives in the target market. These marketing tools are

known as 4 p’s of marketing. These four marketing tools are viewed as 4c’s by

the consumers.

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To identify the customer needs and fulfilling hem is the basic objective of

an organization. Marketing is not just satisfying your customers, you have to

delight them and this can be done by acting upon this phrase.

“Under Promise and Over Deliver”

MCB Bank provides a winning combination of products and services to its

prime customers. It is one of the country’s leading commercial banks, which

ensures complete security, and reliability in all-financial transactions.

PRODUCT MIX & PRICES OF MCB BANK

1. MCB Rupee Traveler 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

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4 P’s 4 C’s

Product/ Service Customer Solution

Price Customer Cost

Place Convenience

Promotion Communication



A 5- year fixed Deposit Scheme, targeted to persons with small savings

who would desire a regular monthly return on their investment.

Salient Features

• Minimum amount of investment shall be Rs.0.010m and the maximum

amount of investment would be Rs. 1.000m.

• Khushali Certificates can be purchased by individuals (singly or jointly) or

by the Proprietorship/Partnership concerns or Companies, etc. in their

name

• The Khushali Certificate will be of five years maturity.

• 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.

• Zakat will be deducted wherever applicable on yearly basis whether you

will be receiving your profit or encashing your certificates.

• 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

Salient Features

• 8% rate of return per annum.

• Returns calculated on daily.

• Average balance and paid half yearly.

• Introduced first time in Pakistan.

• 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.

Salient Features

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• Owing foreign currency account under the Prime Currency Scheme allows

you to earn attractive rates of interest in foreign currency.

• You have a choice between opening this account in your personal name

and opening it under joint names.• Whether you are a resident or a non-resident Pakistan, MCB Prime

Currency Scheme invites all to operate a foreign currency account.

• Foreign nationals and foreign companies can also open a foreign currency

account under the Prime Currency Scheme.

• Your foreign currency account can be opened in four global currencies:

The United States Dollar, the Pound Sterling, the Japanese Yen and the

Euro.

• Travellers Cheques and Foreign Currency Notes can also be issued to

holders of persona! and Joint accounts.

• Rupee Loan facility will also available against this account.

• 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.

• 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.

• The Prime Currency Scheme is exempt from al! forms of taxes including

Income Tax, Wealth Tax and Zakat deductions.

• MCB Prime Currency Scheme is a world in itself.

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

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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 Bill CollectionWith the aim of extending this service to wider range of customers, the number of

MCB branches collecting Utility Bills more than 900.

13. MCB Mobile Banking

At the forefront of technological excellence, MCB proudly introduces MCB

MOBILE BANKING*. The convenience of accessing account balance information

and mini statements whenever want or wherever may need them, with comfort

and peace of mind.

MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours -

365 days.

MOBILE BANKING AT A GLANCE

MCB Mobile Banking gives easy and quick access to account(s) at a time

find convenient, including all holidays.

• With MCB Mobile Banking

· Check balance

· View the last 4 transactions of your MCB account(s).

• A FREE SERVICE

MCB Mobile Banking is a free service for MCB account holders who have

an ATM card of an SMS message if charged by the service provider.

• Banking at fingertips

Dial in anytime to get information regarding balance and mini statements.

1. MCB Islamic Banking Services

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Islamic banking services through exclusive units/branches offering a range

of liability and asset based Sharia compliant products like Musharika, Murabaha,

Ijara and Istasana.

2. MCB Car Cash

Car financing and leasing at competitive rates with flexible options Car

cash finances both semi-commercial and non-commercial vehicles for personal

and business use.

3. MCB Locker

The best protection for your valuables. Lockers of different capacities areavailable nationwide

4. MCB Master Card

THE FUTURE OF MONEY

Since the beginning of time, people have

tried to find more convenient ways to pay,

from gold to paper money and checks.

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 displace cash and checks as the money of the future.

MasterCard International has expanded globally in more locations in the world

than any other card. The card was introduced by MCB Bank Limited in 1995 and

now offers card members over 15 million outlets in 232 countries.

• Photo security- The first bank in Pakistan to introduce the enhanced

feature of photograph on the card limiting fraud in case of card loss.

• Welcomed at over 3, 000 outlets in Pakistan.

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• Provides up-to 45 days Free Credit.

• Joining and Annual Fees to suit you.

• 24 Hour Customer Services- Call 111-700-700 and you can get

information from our customer services representatives on new card

application or have your queries resolved anytime of the day.

• Cash Advance Facilities

Available in Pakistan and worldwide with a network of over 1,000

branches and a team of dedicated professionals, MCB is Pakistan’s largest

private sector commercial bank.

Our Consumer Banking provides customers with innovative saving

schemes, products and services. Our ATM network is the largest in Pakistan and

our Pak Rupee Travelers Cheques are market leaders. We were the first to

introduce the photo card with the introduction of the MasterCard.

Our Corporate Banking ensures assistance from a dedicated team of

professional financial advisors for underwriting, project finance or corporate

advisory services.

When it comes to banking practices, you can depend on us. We’ve been around

for over fifty years.

5. MCB Smart Card

MCB now brings you MCB SmartCard -a secure

and convenient instrument of payment with

unmatched functionalities. It provides 24-hour

direct access to your bank account

The convenience and flexibility of MCB SmartCard will help live a smarter life. It not only helps you manage your expenses, but also avoids undue interest

on your day to day credit card transactions.

Your balance is always within your reach and you spend accordingly.

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MCB is the only bank to introduce a debit card that gives the option to choose

from domestic and international card for local and global usage respectively

6. Remit Express

Fastest to Pakistan. Anywhere in Pakistan.

The fastest way of getting your money across to

Pakistan. Remit Express offers low cost remittance

from U.A.E. and Saudi Arabia. Your relatives, friends

or business associates receive drafts within 72

hours.MCB Remit Express has been specifically

designed to meet the needs of the expatriate Pakistani community residing in the

Gulf countries.

7. Easy Personal Loan

Helping You Do More

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.

Salient Features

• MCB will lend you any amount, from Rs 30,000 to Rs 490,000, depending

upon your net monthly income

• You can choose tenure of 1 to 3 years for the repayment of the loan

• Bank to Bank Balance transfer

• Credit Card balance transfer

• Loan Protector Shield- insurance coverage of balance loan amount in

case of death or permanent and total disability

• Availability of early repayment option

32



• Repayment Arrangements

• Repayment of principal and mark-up is monthly and can repaid using

either one of the following modes:

• Direct Salary Transfers

• Payroll Deduction

Eligibility Criteria

• Minimum net monthly income Rs 10,000

• 25 to 55 years of age

• Pakistani national

• At least 2 years of employment with current employer.

• Processing fee of 1% of the principal loan amount to be charged at the

time of loan disbursement.

8. MCB Pyara Ghar

MCB gives dream home at the lowest

and best possible mark-up rates. You can

choose either one of our two mark-up rate

options- fixed or variable.

Early repayment option tailor-made to allow making partial prepayments at dates

that suit.

Who Can Apply

Anyone who fulfills the following criteria is eligible to apply:

• Pakistani national residing in the city and area where the product is

launched.

• 25 years old or above when you apply and under 60 at the time of maturity

of the applied financing period.

33



• Salaried person, self-employed professional or a businessman with a

verifiable monthly income stream.

• Net take -Home income not less than Rs. 25,000 per month.

• Have 5 years or more of business or professional experience.

• Employed with the present employer for 2 years with a total employment

history of 5 years.

• Home Purchase Home Renovation Home Construction

• Tenure 3 years to 15 years 2 years to 5 years 3 years to 15 years

9. MCB Virtual

MCB Virtual provides the continence of

banking on internet. Whether at office or home

or traveling. Log on at www.mcb.com.pk and

enjoy 24 hours access of all your accounts for

the largest array of service.

10. MCB Business Sarmaya

MCB Business Sarmaya is a running finance

against your residential property. It offers running

finance up to 20 millions with low markup.

11. MCB Car 4 U

MCB car 4 u auto finance is a power move that

gets you not only a car of your own choice but

34



leads you best in life. It is affordable with competitive markup, flexible

conditioning and easy processing and above all no hidden cost.

35



PLACING STRATEGIES OF MCB BANK

The location of the bank plays a vital role in making its operations profitable. If

the bank is located in some business center then it will be very easy for it to

attract business people as its customers. Therefore MCB has most of its

branches at places where it can reach its targets customer easily. The branch

network of MCB is given as follows:

36

Punjab 723

Sindh 222

NWFP 211

Blochistan 24

Azad Kashmir 10

Domestic 110

Overseas 100

TOTAL 1400



PROMOTION STRATEGIES OF MCB BANK

MCB Bank is actively participating in promotion of its products and

services through advertisement and other promotional schemes.

Initially, the bank focused on the upper class customer’s only and offered

products for a limited class of people. But now the strategy has been changed

and the bank is now targeting the middle market also. The products offered are

of diverse nature to cater the needs of maximum number of people.

Customer Oriented Attitude

MCB Bank values its customers. Customers’ complaints are encouraged

because it gives an opportunity to know the needs of the customer and buildmore confidence in them.

Most of the promotional efforts are done through

Direct marketing

Public relations

MCB bank sometimes gets suggestions and recommendations from its

good customers.

Branch layout is being designed in such a way that more and more

customers are attracted. Some of the branches of MCB Bank have a very good

entrance and outlook but many still need to be improved.

FIELDS OF ACTIVITIES

The purpose of banks is to provide some services to the general public.

And for this purpose different banks provide different services to the people in

different forms. The MCB Bank is a commercial bank, in modern time commercial

banks play a very important role and their functions are manifold. The main

37



functions and services which MCB 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

• Collecting cheques and bill of exchange for the customers.

• Collecting interest due, dividend, pensions and other sum due to

customers.

• Transfer of money from place to place.

• Acting an executor, trustee or attorney for the customers. ‘Providing

safe custody and facilities to keep jewellery, documents or securities.

• Issuing of travelers cheques and letters of credit to give credit facilities

to travel.

•

Accepting bills of exchange on behalf of customers.

• Purchasing shares for the customers.

• Undertaking foreign exchange business.

• Furnishing trade information and tendering advice to customers.

For proper functioning of branches and the over all bank has been divided in

different departments. These departments handle different jobs so that division of

work is there for improvement of functions and also it is easy to control the

situation. The general division in a branch is as follows:

1. Cash department

2. Deposit department

3. Advances & credit department

4. Remittance department

38



5. Foreign exchange department

6. Technology department (new addition in order to cop with the growing

needs of day to day technology requirements)

Cash Department

The following books are maintained in the Cash Department:

• Receiving Cash Book

• Paying Cash Book

• Token Book

•

Scroll Book• Cash Balance Book

When cash is received in counter, it is entered in the Scroll Book and

Receiving Cashier Book. At the close of the day, these are balanced with each

other.

When the cheque or any negotiable instrument is presented at counter for

payment, it is entered in the token book and token is issued to the customer. The

token clerk and the Cashier make entries in the paying book and payment ismade to payee. At the close of day, the Token Book and Paying Cashier Book

are balanced.

The consolidated figure of receipt and payment of cash is entered in the

cash balance book and drawn closing balance of cash.

Opening Balance + Receipts - Payments = closing Balance.

This is very important department because cash is the most liquid asset

and mostly frauds are made in this department, therefore, extra care is taken in

this department and nobody is allowed to enter or leave the area freely. Mostly,

cash area is grilled and its door is under supervision of the head of that

department. All the books maintained in this department are checked by an

officer.

39



Deposit Department

Bank deals in money and they are merely mobilizing funds within the

economy. They borrow from one person and lend to another, the difference

between the rate of borrowing lending forms their spread or gross profit.Therefore we can rightly state that deposits are the blood of the bank which

causes the body of an institution to get to work. These deposits are liability of the

bank so from point of view of bank we can refer to them as liabilities.

The total deposits of MCB are growing since its inauguration but after

privatization there is a sharp incline in over all deposits of the bank. The increase

in deposits is also a cause of increase on total number of accounts; bank has

progressed in both aspects.

TYPES OF DEPOSITS

Deposits can be segregated on two bases, one is the duration in which

there funds are expected to be with the bank and second is the cost of getting

these funds. So divide deposits in two classes according to duration of deposits

i.e.

1) Time deposits / liabilities

2) Demand deposits / liabilities

And on the basis of the cost to acquire these funds, a deposit can be

classified as any one of following four, High Cost Medium Cost, Low Cost No

Cost.

Banks has different kinds of deposit schemes in order to induce deposits.

These schemes are a mixture of the above mentioned two types of deposits with

an addition of different services & requirements such as minimum balance'requirement, mode of transaction, basis for calculation of profit, deductions,

additional benefits, eligibility for different groups.

In the similar fashion, MCB has a large variety of deposit schemes and some of

them are as follows:

40



CURRENT ACCOUNT

In this type of accounts the client is allowed to deposit or withdraw money

as and when he likes. He may, thus, deposits or withdraws money several times

in a day if he likes. There is also no restriction of amount to be deposited or withdrawn. However, there is requirement of minimum balance maintenance of

Rs. 1000/-. Usually this type of account is opened by the businessmen. No profit

is paid by the bank and no service charges are deducted by the bank on current

deposits account. These types of deposits are also exempt from compulsory

deduction of Zakat.

PLS ACCOUNT

This type of account is for those persons who want to make small

savings'. This type of account is opened with a minimum deposit of Rs. 1000/-.

Under this scheme deposits can be made only up to a-costing amount and

withdrawals are allowed twice a week or 8 times a month. If a big amount is

required a seven days notice is required before the withdrawal. The profit is paid

on these accounts on the minimum balance during a month for the whole of that

month. Zakat & other withholding taxes are deducted as per rules of the

government.

KHUSHALI BACHAT ACCOUNT

This is an advance form of PLS saving a/c, in this type of account. The

minimum balance requirement for this type is Rs. 2500/-. There is also restriction

on the number of withdrawals as well, i.e. up to 4 times in a calendar month. For

maintaining this extra balance the customer gets the benefits of profit calculation

on daily product basis and also free service of standing instructions of paying

utility bills and HBFC installments. All other rules of saving account are

applicable.

41



PLS 365 GOLD

This is a special type of saving account in which customer maintains a

minimum balance of Rs. 300,000- and in turn he gets the benefits of daily profit

calculations and also there is no restriction on the maximum number of withdrawals as was there in the case of KBA. There is also another advantage of

this scheme that if balance on a particular day falls below the minimum balance

then only the product of that day is ignored whereas in KBA, if balance falls

below the minimum limit then all the products for that month are ignored on in

other words no profit is paid for that month.

Khaunm Bachat Scheme

This is a type of term deposit, in this type of deposit an account is

deposited and monthly payments of Rs. 1000/- are made by the account holder

in this account for a minimum of 10 years. After the expiry of term, he receives

his funds along with profit for the tenor. The distinctive feature of this product is

that profit is calculated on monthly basis and charged to account on end of each

half /ear. Then profit is also calculated on that amount of profit which is credited

to the customer's account. So we can say that in this type of account there is a

concept of accumulated profits on profit. This ends in getting a heavy return for the depositor at the end of tenor for his small savings. This product was actually

introduced to promote saving habits in the people. Zakat and withholding taxes

are deducted as per rules only at the time of maturity while making payment to

the customer.

Term Deposits Receipts

This is a type of term deposit in which a receipt is issued for varying tenors

ranging from 1 month to 5 years or more. These are in the form of receipts and

profit on these receipts is paid biannually. These receipts are encashable after

expiry of the period for which they were issued. Different profit rates are applied

to different type of TDRs.

42



Under this deposit scheme, a deposit is received from the depositor under

the condition that he will intimate the bank before a certain period in case of

withdrawals.

Functions of DEPOSIT department

This was a brief review of different types of deposit schemes. The Deposit

Department handles the account opening, profit payment and accounting of all

types of deposit schemes.

Account Opening

Account opening is an agreement in which customer offers his funds and

bank accepts these funds, therefore the nature of relation between a banker and

customer is of a contractual one and all the conditions applicable to this contract

act are also applicable.

Profit payment & calculation

Profit payment & calculation is done in accordance with the rules of each

type of deposit scheme-by the deposit department. The products for each deposit

scheme are calculated separately and added till the end of 6 month period. Then

the sum total of these products is multiplied with the respective profit rates which

are issued by the Head Office at the end of each half yearly closing. The profit

provisions for each type of deposits are also calculated on monthly basis by the

same department in order to calculate the net profit or loss position of the branch.

Accounting Entries

Accounting entries are also made in the respective books of account by

this department. However, in small and medium size branches, the accountant

performs the book keeping duties for all kinds of ledgers.

43



Clearing Department

Every banker acts both as a paying as well as a collecting banker, It is

however an important function of crossed cheques. A large part of this work is

carried out through the bankers clearing house.

A clearing house is a place where representative of all banks of the city

get together and settle the receipts and payment of cheques drawn on each

other. As the collecting banker runs certain risks in receipt of their ownership the

law has provided certain protections to the banks.

The Negotiable Instrument Act, 1881, lays down hat drawer or holder of a

cheque or draft may cross the instrument generally or specially. It further lies

down that a crossed cheque can only be paid to a banker, who collects it for a

customer in good faith and without negligence.

Types of Cheques

• Transfer cheques: are those cheques, which are collected and

paid by the same branch of bank.

• Transfer delivery cheques: are those cheques, which are

collected and paid by two different branches of the same bank

situated in the same city.

• Clearing cheques: are those cheques, which are drawn on the

branches of some other bank of the same city or of the same area,

which is covered by a particular clearing house.

• Collection cheques: are those cheques, which are drawn on the

branches of either the same bank or of another bank, but those

branches, are not in the same city or they are not the members of

clearing house.

44



Functions of Clearing Department

• To accept Transfer, Transfer delivery, clearing and collection cheques

from the customers of the branch and to arrange for their collection.

• To arrange the payment of cheques drawn on the branch and given for

collection to any other branch on MCB or any other members or sub

member of the local clearing house.

• To collect amount of cheques drawn on members, sub-member of local

clearing house, sent for collection by MCB Branches, not represented at

the local clearing house

• Receiving and scrutinizing the cheques and other deposit instruments,

and the pay-in-slip at the counter.

• Fixing the stamps.

• Scrutiny and receipt by the authorized officer.

• Returning the counter file to the depositor.

• Certificate and confirmation by the officer in charge of the department. ,

• Separating the cheque into transfer, transfer delivery, and clearing

cheques.

45



CLEARING PROCESS (FLOW CHART)

46

Cheque with slip given

Cheque along with slip checked, signed &

received by officer

The same day not honored cheques are returned

The day after tomorrow the banks are informed

Provisional entries for returned cheques aredebited a ain in both com uter da books

Party is informed about returned cheques

throu h hone or ersonal contact

Cheques are mailed through TCS in case of no

personal contact the same day

(If there is any availability)

Slip is asked & filled

Entries in daybooks are made

Entries checked & verified by another officer

after bankin hours b officer

Cheques collected at the day end by Main

ranch’s fficials

Cheques are sent to respective banks next day

after posting in computer by Main Branch



Advances Department

Advances are the most important source of earning for the banks. MCB is

also giving full attention towards this aspect and it is also obvious from the

growing portfolio of advances and from very low delinquency rate. The creditportfolio of this institution is in a very much better shape than other financial

institutions of Pakistan and the credit goes to the management and the staff who

are concerned about the quantity and quality as well.

• Loans

• Cash Credits

• Overdraft

Loans

Loans are monetary assistance by a financial institution to a business,

individual etc. The loans are granted by the bank in lump sum, so these types

called fixed or demand loans. Interest is charged on the whole amount of a fixed

loan.

The borrower withdraws whole the amount of loan. This type of loan is

normally granted against security of gold documents.

In case of demand loans against gold or documents, a demand promissory note

for the amount of loan is taken from the borrower loans are granted under;

• Loan Against Gold

• Loan Against Pledge Of Stocks

• Stock pledged must be readily saleable

•

Products should be readily saleable

• Advance should be within the borrows means

• Requirements of Loan

For granting loan to any party or individual, the bank checks following

particulars of the client:

47



Credibility

Feasibility Report

By Credibility, bank Judges the credibility of the client by his past bank

record, CBI report etc. it is very important in making decision about giving himloan.

Feasibility report is on the running or proposed business of the client.

The report enables the bank to judge the likely return of the business.

Cash Credit

Such cash account is opened in the name of the customer who borrows

from the bank. Customer is granted a loan up to a certain limit, sanctioned by the

head office, from which he can draw when he requires and interest is charged on

the amount actually utilized by the customer. In order to avoid the danger of idle

fund, the bank charges a certain rate of interest, even if the customer does not

withdraw any amount. The rate charged by the bank on cash credit in 46 paisa

per thousand on daily basis.

The credit is usually given against the securities of goods or merchandize

as follows:

Advance against Pledge of Stocks

When cash is granted against the pledge of stock or product, cash credit

form is taken, from the certain products or stock, but the actual pledge is created

when the stock or finished products are placed under the bank's lock or the

document of title is duly endorsed to the bank by the borrower.

Hypothecation of Stocks

The difference between pledge and hypothecation is that under a pledge

the borrower's goods are placed in the bank's possession under own lock,

whereas, under a hypothecation, they remain in the possession of the borrower

or guarantor and are merely charged to the bank under documents signed by

them. Even though the documents empower the bank to take possession of the

48



goods hypothecated, but it is possible that the borrower may actually resist any

attempt.

Mortgage of Property

Title deeds of immovable property are accepted by the bank only as

collateral security or alternatively as unauthorized security.

Remittance Department

Remittance department performs following functions:

• Mail Transfer (MT)

• Telegraphic Transfer (TT)

• Demand Drafts (DD)

Mail Transfer (MT)

When a customer requests the bank to transfer his money from one

branch of bank to another branch of the same bank or from one city to another

city to the same bank or any other bank. Customer fills the form given by bank. If

the customer has an account with that amount as mentioned in the application

form then concerned officer will undertake the following procedure to make the

mail transfer complete.

1. Branch Mail transfer form

2. Receiving Branch Register copy

3. Issuing branch register Copy

4. beneficiary advice

5. advice to customer

In case where the customer is not account holder of the bank then the

customer will have to deposit the amount which he wants to transfer under Mail.

Then the above said procedure will be done.

49



Telegraphic Transfer (TT)

This type of transfer is simple. After filling the application form the

concerning officer shall fill the telegraphic transfer form. Then it is sent to the

required bank which on receiving it immediately makes the payment to the

customer and afterwards the voucher are sent to that bank by ordinary mail.

Demand Draft (DD)

Demand draft is just like cheques and issued when the customer wants to

take cash with him personally. The idea behind is to avoid the risk and burden of

currency notes in huge quantity. Demand draft can easily be handled whatever

amount it has and the money can easily be taken from the bank when it is

presented. In fact, the bank persuades the customer to transfer money by drafts

and avoid the risk of frauds involves in MT and T.T. Draft is only issued when the

bank knows customer and bank has the confidence in him

In case of transfer of money by drafts, the customer has to fill an

application form. Then the concerned officer fills the following forms:

1. Customer’s advice

2. Customer’s debit form

3. Register copy

4. Cover Advice

Technology Department

Technological advancements are also affecting the banking industry. The

foreign banks have a competitive edge over all local banks in their technologies'

advancements and automated systems. Local banks have also realized the

gravity oil this situation and are striving to add computerized systems to their

branches

MCB is ahead of all other local banks in this field and now it is in a position

to even compete with foreign banks. There are more than 1045 branches of MCB

all over Pakistan and out of these more than 300 branches are fully

50



computerized Almost all .the branches of big cities are computerized; therefore,

the need for a technology department at each branch is growing. Now a day, a

computer division is working in each city to provide service to ad the branches of

that area.

MCB has also introduced the now concept of online banking. There are

now more than 250 branches linked through this system and they can transact

with each other directly using computer systems at their own branches. Now

customers do not have to wait long for their transactions and can operate their

account through all the online branches.

ATM Network

ATM stands for Automatic Teller Machine. This machine is used to

transact in one's account without intervention of humans. These machines are

basically used for taking cash, confirming balances and requesting statements /

cheque books.

MCB has the largest ATM network in the country at the moment with

almost one ATM at each online branch and also ATM terminals at International

Airports. This network covers more than the 27 cities of Pakistan including the

provincial capitals and large commercial cities of the country.

ATMs are operated through a card issued to the valued customers and by

application of Personal Identification Number (PIN number). A person can

withdraw from any machine across Pakistan with having an account in only one

branch of MCB. This was only possible with the help of online system. In this

system all the machines are linked to central banking host at IRM division

Karachi through either satellite or telephone controller. This system identifies the

card holder and his PIN Number.

Now MCB has also entered into a contract with Cirrus which is a

subsidiary of MasterCard. This contract will enable an ATM card holder to use

his account even when he is out of country at all the ATMs where Cirrus logo is

displayed.

51



Green Cards are ordinary cards with a maximum withdrawal facility of Rs.

15,000/- in a day. The annual fee for this card is Rs. 350/- only.

Gold Cards are special cars with maximum withdrawal limit of Rs. 25000/-

in a day. These cards are issued to the persons having more than Rs. 500000/-as their average balance. The annal fee for this card is Rs. 650/-only.

International Cards are issued in collaboration with Cirrus and are

useable all over the world with maximum withdrawal facility according to the

standards of Cirrus.

INFORMATION ABOUT MY BRANCH

I did my internship in MCB Bank Limited Jhang Road Chiniot

(0333) Branch. Some important information about my branch which I observed is

as follows:

MANAGEMENT OF THE BRANCH

Branch Manager Hamid Ali

Operational Manager Faisal Shahzad

Chief Cashier Mian Muhammad Ali

Billing Cashier Kamran Shah

Customer Services Officer Zainab

Remitance Officer Naseem Ahmad

Cash Sortor Tallat and Mubashir

Others Tee boy, washer man,& security

Gaurds.

52



Other General Information of the Branch

Deposits

The total deposits of this about to 322.734 million. In deposit there is

increasing trend.

Profit

Total remittance of this branch is 2157.319 million in 2009.there is also

incrasing trend in profit from 2008 to 2010 because of higher mark up rate

charged on the finances.

53

Deposits

0

5

10

15

20

25

2003 2004 2005

Years

A m o u n t i n M i l l i o

n



No. of vouchers

The vouchers which are transacted in this branch in 2010 are as follows:

Financing & Advances

Mainly, the short term financing such as cash finance, running finance,

Demand finance, ERF II, FAFB, FBP are being dealt here.

Number of accounts

Accounts in this branch of MCB are as follows:

54

CASH TRANFER

Month DEBIT CREDIT DEBIT CREDIT Total

January 2521 2303 2140 1967 8911

February 2209 2268 1835 1725 8037

March 2753 2508 2141 2395 9797

April 3079 2569 1982 2040 9670

May 3433 2726 1944 2018 10121

June 2813 2578 1962 1972 9325July 3555 2229 2021 2123 9928

August 3784 2123 1928 2030 9865

September 4134 2114 2078 2135 10461

October 4923 1980 2337 2350 11590

November 6427 1968 2871 2720 13986

December 2808 2312 2992 2925 14037



Current account

Total numbers of current accounts are 1236.

PLS account

Total numbers of profit and loss accounts are 3950.

Khushali bachat account:

These are about to 301 accounts

Basic Banking Account (Introduced by SBP for salaried person)

There are about to 19 accounts.

Foreign Currency Accounts:


MCB 365 Gold Account


55



WORK DONE BY ME

During my internship in the Bank Limited Jhang Road Chiniot

(0333) Branch, I really enjoyed to work with the staff of Branch, from 04/07/2011

to 04/09/2011 and have a wish to be employee of MCB. It was almost impossible

to work in all the departments within that limited time. But on my request, the staff

of the branch provided me the opportunity to work in the different departments for

the sake of practical knowledge. I am really very thankful to branch manager

M.Hamid that provides me a learning environment in the branch.

During my internship training in the MCB as I early mentioned that I have

worked in different departments & seats and learnt the followings.

ACCOUNT OPENING DEPARTMENT

Account opening and closing is the function of accounts departments.

Bank’s customers may be individuals (Single or Joint), firms

(partnership/proprietorship), Autonomous corporations, Limited Companies,

Charitable Institutions, Associations Educational Institutions or Local Bodies.

Basics to Open an Account

During the span of mine internship in MCB, I learned and observed a lot of

about the opening of an account. Basically I think that the opening of an account

is the establishment of a contractual relationship between the banker and the

customer. By opening an account at a bank a person becomes a ‘customer’ of a

bank. Further I am going to express the basic requirements and steps involved in

the opening of an account.

56



Introduction and Preliminary Investigation

Before opening an account MCB as like the other banks in Pakistan

ascertain whether or not the person who is going to open the account is a

desirable customer or not. Then MCB determine the prospective customer’sintegrity, respectability, occupation and the nature of business by the introductory

references given at the time of account opening. Negligence in this informal

preliminary investigation may result in serious consequences not only for the

banker concerned directly but also for other bankers and the general public who

may be affected indirectly.

In order to further strengthen and streamline this process, the Federal

Ombudsman of Pakistan, vide his ruling on complaint No. II/31/5186, hasdirected the banks to retain with the account opening form a Photostat copy each

of the National Identity Cards of the person desiring to open an account as well

as that of the introducer. As per these directions, the concerned Branch

Managers are required to obtain the original National Identity Cards along with

their Photostat copies and then return the original after attesting the authenticity

of the retained copy.

Preliminary investigation is necessary because of the following reasons:

Avoid Frauds: In this regard I learned that if a banker does not make the

necessary inquiries mentioned above he may enable dishonest persons to

possess cheque books for fraudulent purposes. If any such person happens to

be an undercharged bankrupt, the banker might be placed in an awkward

position for having allowed such a person to open and open a bank account.

Safeguard against unintended overdrafts: Sometimes due to a mistake

an account may be given an overdraft, For instance, the ledger keeper,

misreading the balance of an account honors a cheque for an amount larger than

the balance. Similarly a credit entry belonging to a customer may be made by

mistake in another customer’s account. In such situations the excess amount

withdrawn by the customer can only be realized if the customer is a respectable

person.

57



Inquiries about clients: Being a banker I think MCB has a business

obligation to respond to inquiries from other banks etc. about his customer’s

financial position. Though the banker gives only a general ideal about the

financial standing of his customer, it should nevertheless have the necessary

information available with him.

Specimen Signature

When an account is opened with MCB customer provides to the bank a

specimen of the form of signature which would appear on all his cheques to

express his authority for the payment of cheques drawn on his banker. This

specimen is taken generally on a card specially designed for this purpose, and

rule for the customers, full name, and account number are entered on it.

If the bank has reasons to doubt the genuineness of a signature, he should either

get it confirmed for his satisfaction or return the cheque with the remark

‘Signature differs’. If the signature of the customer is forged the banker cannot

escape his liability because he has actually acted on his customer’s mandate.

58



How to Open an Account (General)

Before opening an account in MCB I observed that the following points

must be considered in this regard.

• Another account holder of the bank should properly introduce the new

customer.

• The account holder should sign the account opening form in the presence

of bank officer and the signature is duly verified.

• A copy of identity Card is required by Bank.

•

Against submission of the Bank’s prescribed application form, dulyintroduced in the manner provided and on supplying such document, as

may be required and account may be opened. The Bank reserves to itself

the right to refuse to open and account without assigning any reason.

• Each account shall be allotted a distinct number that is to be quoted in all

correspondence with the bank relation to the account.

• Minimum amount for opening and continued maintenance of various types

of accounts is as follows:

Rs.

Saving 500

Current 500

Term Deposit 1000

The bank reserves the right to change the above mentioned minimum

balance requirement at any time without any notice.

Procedure to Open an Account

According to my practice in MCB, when a customer wants to open an

account, the bank officer gives him an application form. All information, which is

59



necessary to be known by the bank, are requirements of the application form.

Form also requires the essential documents to be attached by the customer.

Basically following information is required to open an account with MCB.

• Title of Account

• Full Name of Applicant

• Occupation

• Address

• Telephone No.

• Currency of account

• Nature of Business

• Introducer’s Name, Address & Signatures

• Special instruction regarding the account

• Initial Amount of the Deposit

• Signature of the applicant

Documents to be Attached

Further I learned that if you wanted to open an account with MCB then you

should attach the following documents with your application form which are

different for different categories.

Sole Proprietor’s Account

In order to open an account with MCB Sole Proprietors have to submit

their business registration certificate number.

Private / Joint Accounts

For individual or private or joint accounts National Identity Card is

required.

60



Joint Stock Company

Before an account of a Public Limited Company is opened MCB must ask

the person authorized to do so to submit the certified copies or the following

documents

• Certified true copy of the Memorandum and Articles of Association of the

company.

• Certified true copy of the resolution of the board of directors / managing

committee / governing body regarding conduct of the account.

• Certified list containing names and signatures of the directors / office

bearers.

• Certified true copy of the certificate of incorporation or registration.

• Certified true copy of the certificate of commencement of business (in

case of public limited companies).

• Balance Sheet

• I.D. Card copy of each director

• Original is also enclosed for inspection and return

• List of persons authorized to operate the account.

• Power of Attorney in favor of the person opening account.

Partnership Firm Account

Information which is required to be submitted to MCB by a partnership firm in this

case is as follows:

• Full Names

• Address

• Specimen of signatures of the partners

• Certified true copy of partnership deed

• Registration No. if the Partnership is registered

61



Societies / Clubs and Associations Account

MCB is authorized to open the accounts of the societies/clubs and associations,

These are non-trading organizations, formed for the promotion of culture,

science, education, recreational activities and charitable purposes etc. some of

these institution are registered under the Societies Registration Act, 1866, and

are issued a certificate of registration after they have been found fit for

registration.

Issuance of Cheque Book

When a customer opens an account with the bank, he is provided withcheque 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 number of cheque books at a time, may ask the bank to stock as number

of cheque books in their name and to point their name on these cheque books.

Bank debits the client’s account for excise duty of Rs.2.50/- per cheque

and keeps the cheque book ready for the customer, as on his advice.

The officer keeps and maintains the cheque book register Cheque bookinventory 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.

62



In case of loss of cheque book or requisition slip on cheque book the

customer has to fill the Form No. 216-B to obtain a new cheque book.

Utility Bills Collection

I worked in the utility bills collection department as the MCB collects utility

bills on behalf of WAPDA, Sui Gas Companies, and Pakistan Telecommunication

Corporation Limited by putting the stamp on the utility bills “Paid”, Date of

payment, Signature of the officer receiving the utility bills. After receiving utility

bills a list is made on the form which is called Bills scroll form. One copy of the

scroll is with the bank for evidence whereas the original copy with the receipt of

the bills is sent to the billing department of the respective corporation. The bank

charge commission on the bills.

63



Cash Management

The most important department of MCB which deals in money (receiving

deposits at lower rates and lend them out at higher rates of interest). This

department also called as Chest Department and manager of it is called CashManager or Chest Manager. In those branches where this department is not

separately existed, the branch manager performs the duties of the Chest

Manager.

The excess cash (More than its insured limit by the insurance company) of

the branches of the region is collected by the main branch. The main branch is

also bound to send its excess cash (more than its insured limit) to the State Bank

of Pakistan. No branch can have cash its safe more than its insurance at anytime at the time of closing cash, if it is so the manager will be responsible (not the

insurance company) whether or not he informed to the regional office (exception

to the limit which is insured for the day).

New Notes and Prize Bonds are also part and parcel of the Cash

Management. Keys of the Safe lockers are with the three authorized persons

each one of them is responsible for cash as at the time of closing the cash the

officers including Cash officer presented and lock the safe after counting andscrutinize the cash. The cash officer maintain its daily cash book with

specification of notes (Bonds are also recorded in the books in relation with cash)

and other vouchers, after being satisfied the manager authenticates the books

and vouchers regarding cash with stamp and signature. at the end I would like to

conclude that the cash management is being done in the MCB very effectively.

64



SWOT Analysis

65



The SWOT shows the Strength, Weaknesses, Opportunities, and Threats

of any organization. The SWOT analysis of MCB is as follows.

Strengths

MCB is first private bank of Pakistan which have created well quality

management,

Good innovation of products and services, and well marketing in the

financial market of banks.

MCB got a very well reputation in the banking sector of Pakistan.

MCB have stronger and durable products for the customer’s satisfaction.

The services and customer satisfaction is of great importance for the

MCB, so the bank cares for them.

The new changes which are introducing within banking sector, the MCB

adopts them quickly and efficiently.

MCB introduced a high qualified and educated staff to control the overall

activities of bank.

Weaknesses

The majority of peoples are not well awarded about the new products and

services of MCB.

The poor people hesitate to use the specialized system and environment

of bank.

The focus of MCB is on employee’s individual role in the bank, this creates

differences within employees thinking style.

A weakness of MCB is that, there exists mismanagement within a branch

working routine. The closing time of bank is 5pm, but the employee’s

works till 7pm or 8 pm for completing their work.

66



The management of MCB does not prefer to be a leader and prefer to be

a follower of others.

Slow acceptance and improvement of technological thing.

Opportunities

In the matter of credit division and remittances, the MCB have greater

opportunities in the market if the liberal policies are adopted by bank.

The well educated employees are of huge worth for the organization if

they perform their duty well. They can create changes in working style of

bank.

If the MCB adopt the information technology, the customer services can

be improved by doing so.

The accumulated deposit can be created by investing in big financial

organization like Agro based sector, leasing departments, personalizing

finance.

Threats

The effect of Government policies can create danger for the banking

sector.

The banking sector is well now days, but still they first get permission from

the stat bank regarding the daily life activities.

The competition in the banking sector has also created some threats. Any

bank who wants to prevail in the market must prove him by providing

services and giving advantages to the customers. Other wise, he will be

out of market.

Due to mismanagement, the customers got angered from the banking

services.

67



Introduction of credit marketing by the local and foreign banks badly effect

the environment of MCB.

The creation and adoption of information technology and promotion of the

computer by the local as well as foreign banks will affect the services and

business of the MCB.

Conclusion

According to the experience which I have gained during my internship and

some of my observation at the time of preparing this report is as follows:

I have done well during my internship; I have learned about the bank and

banking system. How the banks satisfies their customer and how the bank fulfill

the requirements of his customers.

According to my own observation, the MCB is really a great bank which provides

maximum facilities to the customers. But I have also observed that, some rigid

thinking peoples do not like the system of MCB. They think that, MCB is a lower

category bank. I just want to say that, this type of customer dishearten the

employee’s efficiency within bank and try to confuse other good customer. This

type of customers say secret thing on spot and before other customers who are

available in the bank at same time. So this act would lead to a lowering down the

goodwill of MCB.

Overall MCB is a well furnished organization. During my internship I have

gained not only good experience but also so many new things of daily life within

an organization.

The conclusion of MCB in the light of SWOT analysis is that, The MCB is almost

covering the whole Pakistan and becoming the popular and super bank of

Pakistan.

The strength of MCB is that, the bank is now implementing new technology, new

techniques, innovation, aggressiveness, creativity, and reengineering process to

fulfill all the necessary instruments for banking system.

68



The new investors and other powerful existing investor in the Pakistan also like

MCB. These are one of the great opportunities for MCB, because the huge

amount of cash which is deposited to MCB from investor’s would be very

beneficial for MCB. The bank can maintain his loans, funds, and other

investments through this cash.

The implementation of new technology and new communication system removes

the weaknesses of MCB to so much extent.

The threat for MCB is that, if there will be any uncertainty exist in the banking

system of MCB, the due to this error and inconveniences the big investor wants

to migrate from MCB to any other bank, then MCB must suffer a loss.

So for making himself extra strong, the MCB must note all the big and small

changes in the environment and if any changing in providing the services are

introduces by the other banks, the MCB must implement the same facility in his

branches. In this way, The MCB will not loss his goodwill and can achieve his

desired goals and can gain more and more goodwill and success in the banking

environment. MCB can also attain top position in the market and can hold

maximum shares and can become the leader in future.

69



70



71



BALANCE SHEET

72



PROFIT & LOSS ACCOUNT

73



CASH FLOW STATEMENT

74



FINANCIAL ANALYSIS

"Financial statement analysis is the process of identifying of financial

strengths and weaknesses of the firm by properly establishing relationship

between the items of the balance sheet and the profit &loss account," and it is

done through ratio analysis.

Ratio Analysis

Ratio means “one number expressed in term of another a ratio is

statistical yardstick by mean of which relationship between two or various figures

can be compared or measured. Here we are going to explain the ratio analysis

of MCB.

CATEGORIES OF FINANCIAL RATIOS

Financial ratios can be divided into the following six parts.

A. Liquidity ratios

B. Activity ratios

C. Leverage ratios

D. Profitability ratios

E. Investor ratios

F. Bank special ratios

A. Liquidity ratios

Current ratios

Quick ratios

Absolute Liquid ratio

B. Activity ratios

Inventory turnover ratio

Average collection period

75



Average payment period

Total assets turnover ratio

C. Leverage ratios

Proprietary ratio

Debt ratio

Debt to Equity ratio

Debt to Tangible net worth ratio

Debt to Funds ratio

External-Internal Equity ratio

D. Profitability ratio

Return on total assets

Return on-equity

Return on investment

Return on fixed assets

Average profit per branch

Net profit Margin

Interest income to total income

Interest expense to total expense

Return on advances

E. Investor Ratios

Earning per share

P/E ratio

Dividend per share

Dividend yield ratio

Dividend payout ratio

76



Break up value/Book value per share

M/B ratio

77



F. Bank special Ratios

Earning assets to total assets

Return on earning assets

Net margin to earning assets

Loan loss coverage ratio

Equity to total assets

Deposit time equity

Loan to deposit ratio

Profitability Ratios

Profitability ratios are used to assess a business's ability to

generate earnings as compared to its expenses and other relevant costs incurred

during a specific period of time. It include following ratios:

• Net Profit Margin

• Return on Assets• DuPont Return on Assets

• Operating Income Margin

• Return on Operating Assets

• Return on Total Equity

• Gross Profit Margin

We will now discuss it one by one.

Net Profit Margin

78



Profit margin is very useful when comparing companies in similar industries.

A higher profit margin indicates a more profitable company that has better control

over its costs compared to its competitors.

Formula

Net profit Margin = Net Profit / Net sales

Calculation

Year 2010 Year 2009 Year 2008

16873175000 / 54821296000

= 0.308

15495297000 / 51616007000

= 0.300

15374600000 /

40043824000

= 0.384

Working

Mark-up / return / interest earned……(sales)

………….

Mark-up / return / interest expensed ……………

Net mark-up / interest income…….…………….

Provision for diminution in the value of

investment-net

Provision against loans & advances –

54,821,296

17,987,767

36,833,529

444,476

3,100,594

52,047

3,597,117

51,616,007

15,837,322

35,778,685

1,484,218

5,796,527

41,576

7,322,321

40,043,82

11,560,74

28,483,08

2,683,99

1,335,12

-

4,019,12

79



net……………

Bad debts written off

directly…………………………

Net markup / interest income after

provision…………

Non –markup / interest income

Fee, commission & brokerage

income…………………

Dividend income……………………...

………………..

Income from dealing in foreign

currencies……………

Gain on sale of

securities………………………………

Unrealized loss on revaluation of investments

classified as held for trading………………………………………

Other incomes

…………………………………………

Total non-markup / interest

income……………………

Non- markup / interest expense

Administrative expense

………………………………

Other provision –

33,236,412

4,129,540

543,906

632,346

411,834

-

547,680

6,265,306

39,501,718

12,173,942

88,261

986,44013,248,643

26,253,075

8,027,433

-

1,352,467

9,379,900

16,873,175

15,779,127

21,792

28,456,364

3,455,948

459,741

341,402

773,768

-

612,026

5,642,885

34,099,249

10,111,330

142,824

690,15010,944,304

23,154,945

7,703,305

(2,232,226)

2,188,569

7,659,648

15,495,297

9,193,332

22,324

24,463,96

2,953,39

617,554

727,564

740,429

(103,198

855,697

5,791,44

30,255,40

7,546,87

23,135

817,8248,387,83

21,867,56

7,341,25

(864,824

16,533

6,492,96

15,374,60

5,130,75

21,319

80



net…………………………………..

Other

charges………………………………………….


expense…………………..

Profit before taxation

………………………………….

Taxation - Current

year……………………………..

- Prior years……………………………..

- Deferred ………………………………..

Profit after taxation……………………(Net Profit)

…

Un appropriated profit brought forward

……………….Transfer from surplus on revaluation of fixed

assets –net of tax

………………………………………………

15,800,919

32,674,094

9,215,656

24,710,953

5,152,06

20,526,66

81



Graphical representation

Net Profit Margin

0.308 0.3000.384

00.1

0.2

0.3

0.4

0.5


Interpretation

Net profit margin measures how much of each dollar earned by the

company is translated into profits. A low profit margin indicates a low margin of

safety: higher risk that a decline in sales will erase profits and result in a net loss.

Net profit margin provides clues to the company's pricing policies, cost structure

and production efficiency. Different strategies and product mix cause the net

profit margin to vary among different companies. Net profit margin is bit better in

year 2008 as compare to other two years.

Return on assets

82



Return on assets is a measure of how effectively the firm’s assets are

being used to generate profits ROA gives an idea as to how

efficient management is at using its assets to generate earnings. Calculated by

dividing a company's annual earnings by its total assets, ROA is displayed as a

percentage. Sometimes this is referred to as "return on investment".

Formula

Return on Assets = Net profit / Total Assets * 100

Calculation


16873175000 / 567552613000

= 0.030 * 100

= 3.00 %

15495297000 / 509223727000

= 0.030 *100

= 3.00 %

15374600000 /

443615904000

= 0.035 * 100

= 3.50 %

83



Working

ASSETS:

Cash & balances with treasury banks

……….

Balances with other

bank……………………

Lending to financial institutions

……………..

Investments -net …………………………….

Advances –net

………………………………..

Operating fixed assets

………………………...

Deferred tax

assets…………………………..

Other assets –net

……………………………..

Total Assets

…………………………………..

45,407,183

1,478,569

4,401,781

213,060,882

254,551,589

20,947,540

-

27,705,069

567,552,613

38,774,871

6,009,993

3,000,000

167,134,465

253,249,407

18,014,896

-

23,040,095

509,223,727

39,631,1

4,043,10

4,100,07

96,631,8

262,135,4

17,263,7

-

19,810,4

443,615,9

Calculation for net profit is the same as calculated before.

84




Return on Assets

3% 3%

3.50%

3%

3%

3%

3%

3%

4%


Interpretation

The purpose of this ratio is to calculate the return that the business is

providing on total assets. This is important from owner’s point of view that whatthe business is earning on its assets, how their funds are being utilized. This ratio

also provides an indicator of overall effectiveness of management in generating

profit with the available assets the higher the percentage the better for the

organization. If we analyze the above situation we can find that in 2008 the ratio

is pretty good but it drops in year 2009 and good thing is that it doesn’t drop

further are remain constant at 3% in year 2010 also.

DuPont Return on Assets

Return on assets (ROA) is a percentage of the after-tax income as

compared to the total assets of the company. Management at Du Pont came up

85



with Return on Assets (Du Pont), an approach that determines the impact of

asset turnover and profit margin on profits. This interactive tutorial explains the

concept by walking you through the calculations, including where to find the

numbers on the financial statements.

Formula

DuPont Return on Assets = (Net Income / Sales) X (Sales / Total Assets)

Calculation


16873175000/ 54821296000

*

54821296000 / 567552613000

= 0.030

15495297000 / 51616007000

*

51616007000 /509223727000

= 0.030

15374600000 /

40043824000

*

40043824000 /

443615904000

= 0.035

Working

The values of net income, sales and total assets are the same as calculated

above.

86




DuPont Return on Assets

0.030 0.030

0.035

0.026

0.028

0.030

0.032

0.034

0.036


Interpretation

DuPont Return on Assets actually shows the relation of the net income,

sales and total asset during the period. According to the result of the analysis it is

clearly indicated that this ratio is same in year 2010 & 2009 but its high in 2008.

Operating Income Margin

A ratio used to measure a company's pricing strategy and operating

efficiency.

Formula

Operating income margin = operating income / net sale

87



Calculation


36833529000 / 54821296000

= 0.672

35778685000 / 51616007000

= 0.693

28483084000 /

40043824000

= 0.711

Working

OPERATING INCOME 2010

(Rs. ‘000’)

2009

(Rs. ‘000’)

2008

(Rs. ‘000

Mark-up / return / interest earned……

Mark-up / return / interest expensed ……………Net mark-up / interest income (Operating

income) Or Gross Profit

54,821,296

17,987,76736,833,529

51,616,007

15,837,32235,778,685

40,043,82

11,560,7428,483,08

Calculation of sale is same as calculated above

88




Operating Income Margin

0.672

0.693

0.711

0.64 0.66 0.68 0.7 0.72

Year 2010

Year 2009

Year 2008

Interpretation

This ratio measures the percentage of profit earned on sale after

deducting operating expenses from the Gross Profit. This ratio indicates that how

efficiently the expenses are being controlled by management. The higher the

margin the lower would be the operating expenses and better would be

management ability to control expense. As we look at the graph the figures are

little disappointed as for as organization is concern as you can clearly see in year

2008 company is in a better position to manage the expanses but unfortunately it

drops year by year which is not a good sign because it shows company has no or

less control on there expanses.

Return on operating assets

The return on operating assets measure only includes in the

denominator those assets actively used to create revenue. This focuses

89



management attention on the amount of assets actually required to run the

business, so that it has a theoretical targeted asset level to achieve.

Formula

Return on operating assets = Net Profit / Operating Assets

Calculation


16,873,175,000 /

325308093000

= 0.052

15495297000 / 313039174000

= 0.049

15374600000 /

323130454000

= 0.048

Working

2010 2009 2008

Cash & balances with treasury banks = 45,407,183 38,774,871

39,631,172

Lending to financial institutions = 4,401,781 3,000,000

4,100,079

Advances –net = 254,551,589 253,249,407

262,135,470

Operating fixed assets = 20,947,540 18,014,896

17,263,733

Operating assets = 325308093000 313039174000

323130454000

90



The value of net profit is the same as calculated before


Return on operating assets

0.052

0.0490.048

0.046

0.048

0.05

0.052

0.054


Interpretation

This ratio gives the operating efficiency of management. This ratio

indicated how Operating assets are utilized. In other words how much assets are

used in operating activities. High Return on Operating Asset ratio shows the

efficient use of operating assets. The ratio is high in 2010 as compare to 2009

and 2008

Return on total equity

Return on equity (ROE) measures the rate of return on the ownership

interest (shareholders' equity) of the common stock owners. It measures a firm's

efficiency at generating profits from every unit of shareholders' equity (also

known as net assets or assets minus liabilities). ROE shows how well a company

uses investment funds to generate earnings growth.

91



Formula

Return on Equity = Net Income/Shareholder's Equity *100


16873175000 / 69180011000

= 0.244 * 100

= 24.4 %

15495297000 / 61075932000

= 0.254 *100

= 25.4 %

15374600000 /

52244865000

= 0.294 *100

= 29.4 %

Working

Amounts of net income and share holders equity are the same as calculated

above.


24.40% 25.40%29.40%

0.00%

10.00%

20.00%

30.00%


Return on total equity

92



Interpretation

Return on Equity (ROE) is an indicator of company's profitability by

measuring how much profit the company generates with the money invested by

common stock owners. It is also known as Return on Net worth this ratio

doesn’t seem to be fluctuate too much just a little drop in percentage in

year 2009 & 2010 as compare to year 2008 .

Gross Profit Margin:

Gross profit margin is a measure of the gross profit earned on sales. The

gross profit margin considers the firm’s cost of goods sold, but does not include

other costs. It also used to assess a firm's financial health by revealing

the proportion of money left over from revenues after accounting for the cost of

goods sold. Gross profit margin serves as the source for paying additional

expenses and future savings.

Formula

Gross Profit Margin = Gross Profit / Net Sales

Calculation


36833529000 / 54821296000

= 0.672

35778685000 / 51616007000

= 0.693

28483084000 /

40043824000

= 0.711

93



Working

Values of gross profit and sales are the same as calculated before.


0.672

0.693

0.711

0.64

0.66

0.68

0.7

0.72


Gross Profit Margin

Interpretation

Gross profit margin is an indicator of how efficient a company is and how well

it controls its costs. The higher the margin is, the more effective the company is

in converting revenue into actual profit. By analyzing this graph we can easily say

that the organization is performing good in year 2008 but unfortunately the gross

profit margin come down year by year.

Activity Ratios

Indicates quality of receivables and how successful the firm is in its

collections.

94



Total asset turn over

The total asset turnover represents the amount of revenue generated by a

company as a result of its assets on hand. This equation is a basic formula for

measuring how efficiently a company is operating. The sales represent all the

revenue generated by the company and is disclosed on a company's income

statement. The total assets represent the assets listed on the company's

balance sheet.

Formula

Total Assets Turnover = Total Net Sales / Total Assets

Calculation


54821296000 / 567552613000

= 0.097

51616007000 / 509223727000

= 0.101

40043824000 /

443615904000

= 0.090

Working

The values of sale and assets are the same as calculated above.

95



Graphicalrepresentation

Total asset turn over

0.097

0.101

0.090

0.08 0.085 0.09 0.095 0.1 0.105

Year 2010

Year 2009

Year 2008

Interpretation

Total asset turnover measures the activity of the assets and the ability of

the firm to generate sales through the use of sales there is a decreasing trend

from year 2008 but in 2009 it increases not only increases but at the hightest

place as compare to 2010 & 2008 and again falls in 2010.

The lower the total asset turnover ratio, as compared to historical data for the

firm and industry data, the more sluggish the firm's sales. This may indicate a

problem with one or more of the asset categories composing total assets -

inventory, receivables, or fixed assets. The small business owner should analyze

the various asset classes to determine where the problem lies.

There could be a problem with inventory. The firm could be holding obsolete

inventory and not selling inventory fast enough. With regard to accounts

receivable, the firm's collection period could be too long and credit accounts may

be on the books too long.

Fixed Assets turnover

Fixed assets turnover ratio is also known as sales to fixed assets ratio.

This ratio measures the efficiency and profit earning capacity of the concern.

96



Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio

means under-utilization of fixed assets.

Formula

Fixed Assets Turnover = Net Sales / Total Fixed Asset

Calculation


54821296000 / 48652609000

= 1.127

51616007000 / 41054991000

= 1.257

40043824000 /

37074209000

= 1.080

Working

Total fixed assets = Total assets – Current Assets

The value of total assets & current assets are calculated above we just

subtract the current assets from total assets in order to determine the value of

fixed assets. And also the value of sale is the same as calculated above.

97




1.127

1.257

1.08

0.9 1 1.1 1.2 1.3

Year 2010

Year 2009

Year 2008

Fixed Assets turnover

Interpretation

The formula is useful in analyzing growth companies to see if they are

growing sales in proportion to their asset bases. The fixed assets turnover ratio

really has little meaning except when it is put in the context of industrial

averages, and consideration is made whether new capital expenditures recentlyundertaken were such that they could skew the ratio. For example, the turnover

ratio will be lower just after a significant amount of fixed asset is acquired to

upgrade or expand the plant facilities. In the middle mean to say in the year 2009

the turnover is higher as compare to other two years.

Market Ratios

Dividend per share

The amount of dividend that a stockholder will receive for each share of

stock held. It can be calculated by taking the total amount of dividends paid and

98



dividing it by the total shares outstanding.

Formula

Dividend per share = Dividend / No of Shares

Calculation


6,461,839,000 / 760214979

= 8.5

5,183,327,000 / 760214979

= 6.82

5,654,493,000 / 760214

= 7.44

Working

No of shares are taken from Pattern of share holding (As of December 31,

2010). And the amounts of these dividends are taken from statement of changes

of equity. A scanned copy of changes of equity is also attached for further

assistance.

Dividends YEAR 2010 YEAR 2009 YEARInterim Cash Dividend –

March

Interim Cash Dividend –

June

Interim Cash Dividend –

Sep

1,900,549,000

2,280,645,000

2,280,645,000

6,461,839,000

1,727,781,000

1,727,773,000

1,727,773,000

5,183,327,000

1,884,8

1,884,8

1,884,8

5,654,4

99




Dividend Per Share

8.50

6.82 7.44

0.00

2.00

4.00

6.00

8.00

10.00


Interpretation

Graph tells that the dividend per share is little bit fluctuate from year to

year in 2010 it is high it Is about 8.5 which drops to 6.82 in year 2009 and again

increase to 7.44 in 2008.

Earning Per Share

Total earnings divided by the number of shares outstanding. Earning per share ratio indicates the proportion of net profit; a company is getting per share.

Share holders are always interested to know the proportionate rate; a company is

getting per share. As price is numerator and earning in denominator, therefore

lower value means better return.

100



Formula

Earning Per share =Profit Available to shareholders / No of shares outstanding

Calculation


32674094000 / 760214979

= 42.98

24710953000 / 760214979

= 32.51

20526669000 / 760214

= 27.00

Working

No of shares are taken from Pattern of share holding (As of December 31, 2010)

Mark-up / return / interest earned………………

Mark-up / return / interest expensed ……………

Net mark-up / interest income…….…………….

Provision for diminution in the value of

investment-net

Provision against loans & advances –

net……………

Bad debts written off

directly…………………………

Year 2010

54,821,296

17,987,767

36,833,529

444,476

3,100,594

52,047

3,597,117

33,236,412

Year 2009

51,616,007

15,837,322

35,778,685

1,484,218

5,796,527

41,576

7,322,321

28,456,364

Year 200

40,043,82

11,560,74

28,483,08

2,683,99

1,335,12

-

4,019,12

24,463,96

101



Net markup / interest income after

provision…………

Non –markup / interest income

Fee, commission & brokerage

income…………………

Dividend income……………………...

………………..

Income from dealing in foreign

currencies……………

Gain on sale of

securities………………………………

Unrealized loss on revaluation of investments

classified as held for

trading………………………………………

Other incomes

…………………………………………

Total non-markup / interestincome……………………

Non- markup / interest expense

Administrative expense

………………………………

Other provision –

net…………………………………..

Other

charges………………………………………….


4,129,540

543,906

632,346

411,834

-

547,680

6,265,306

39,501,718

12,173,942

88,261

986,440

13,248,643

26,253,075

8,027,433

-

1,352,467

9,379,900

16,873,175

15,779,127

21,792

15,800,919

32,674,094

3,455,948

459,741

341,402

773,768

-

612,026

5,642,885

34,099,249

10,111,330

142,824

690,150

10,944,304

23,154,945

7,703,305

(2,232,226)

2,188,569

7,659,648

15,495,297

9,193,332

22,324

9,215,656

24,710,953

2,953,39

617,554

727,564

740,429

(103,198

855,697

5,791,44

30,255,40

7,546,87

23,135

817,824

8,387,83

21,867,56

7,341,25

(864,824

16,533

6,492,96

15,374,60

5,130,75

21,319

5,152,06

20,526,66

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expense…………………..

Profit before taxation

………………………………….

Taxation - Current

year……………………………..

- Prior years……………………………..

- Deferred ………………………………..

Profit after

taxation……………………………………..

Un appropriated profit brought forward

……………….

Transfer from surplus on revaluation of fixed

assets –net of tax

………………………………………………

Profit available for appropriation…………………


103



42.98

32.51

27

0.00

20.00

40.00

60.00


Earning Per Share

Interpretation

The earnings per share calculation is the company's net earnings for the

period divided by the average number of shares outstanding during the period.

Corporate earnings are released quarterly and totaled for the fiscal year. The net

earnings are the total revenues for the period minus all of the expenses incurred

during the reporting period. A corporation will report the number of shares

outstanding in the earnings report. The numbers required to calculate the

earnings per share will be found in the income statement portion of a company's

earnings report. This ratio shows the increasing trend in 2008, 2009 and 2010.

Because net profit increase but outstanding share are constant in all of these

three years.

Price / Earning Ratio

This ratio is calculated for those shares which have market value. This

ratio compares earning per share with market value of that share. The formula for

calculating this ratio is as follows:

104



Formula

Price Earning Ratio = Current market Share price/ Earning per Share

OR

Price/Earning Ratio = market Price / Earning Ratio

Calculation


207.32 / 42.98

= 4.82

207.32 / 32.51

= 6.38

207.32 / 27.00

= 7.68

Current Ratio

It shows the relationship between current assets and current liabilities. And

also it indicates the short term financial position or liquidity of a firm.

Formula

Current ratio = current assets / current liabilities

Working

105



YEAR 2010

Current assets

Cash & balances with treasury banks = 45,407,183,000

Balances with other bank = 1,478,569,000

Lending to financial institutions = 4,401,781,000

Investments -net = 213,060,882,000

Advances –net = 254,551,589,000

Total current assets = 518,900,004,000

Current liability

Bills payable = 10,265,537,000

Borrowings = 25,684,593,000

Deposits & other accounts = 431,371,937,000

Total current liabilities = 467,322,067,000

YEAR 2009

Current assets



106





Advances –net = 253,249,407,000


Current liability


Borrowings = 44,662,088,000



YEAR 2008

Current assets





Advances –net = 262,135,470,000


Current liability


Borrowings = 22,663,840,000

107





Year 2008

406541695000 / 363396932000

= 1.119 : 1

Year 2009

468168736000 / 420467889000

=1.113 : 1

Year 2010

518900004000 /467322067000

= 1.110 : 1

ACID TEST RATIO

Formula

Acid test ratio OR Quick ratio = Current assets – Advances / Current Liability

Calculation


108



518900004000

-254551589000 /

467322067000

= 264348415000 /

467322067000

= 0.566

468168736000 –

253249407000 /

420467889000

= 214919329000 /

420467889000

= 0.511

406541695000

262135470000/

363396932000

=144406225000

363396932000

= 0.397

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LEVERAGE/SOLVENCY ANALYSIS

Solvency analysis of a firm indicates the amount of the other people’s

money being used to generate profit. In general, these analyses are more

concerned with long term debts, because these commit the firm to a stream of

payments over the long run. Solvency analysis includes:

Proprietary ratio

Debt ratio

Debt to Equity ratio

Debt to Tangible net worth ratio

Debt to Funds ratio

External-Internal Equity ratio

Proprietary Ratio

Total Equity

Proprietary Ratio=

Total Assets

Year 2010 (Rs. In Million) 2009 (Rs. In Million) 2008 (Rs. In Million)

Total Equity 79,204 69740 58436

Total Assets 5,67,553 509224 443616

Ratio 0.14 0.13 0.13

Debt Ratio/ Solvency Ratio

Total Debts

Debt Ratio =

Total Assets

110




Total Debts 488348 439484 385180

Total Assets 5,67,553 509224 443616

Ratio 0.86 0.85 0.86

Debt to Equity Ratio

Total Debts

Debt to Equity =

Equity


Total Debts 488348 439484 385180

Equity 79,204 69740 58436

Ratio 6.16 6.30 6.59

Debt to Tangible Net worth

Total Debts

Debt to Equity =

Equity


Total Debts 488348 439484 385180

Equity 79,204 69740 58436

Ratio 6.16 6.30 6.59

111



Debt to Funds Ratio

Long Term Debt

=

Long Term Funds


Long Term Debts 255452 253249 262135

Long Term Funds 431372 367605 330182

Ratio 0.59 0.68 0.79

External Internal Equity Ratio

External Equity=

Internal Equity

Year 2010 (In Million) 2009 (Rs. In Million) 2008 (In Million)

External Equity 488348 439484 385180

Internal Equity 79,204 69740 58436

Ratio 6.16 6.30 6.59

INTERPRETATION

The overall leverage position is showing better trend as compare to

previous year. The contribution of equity in total assets is increasing, while the

debt contribution is decreasing which is better for business. Equity ratio is

increased which shows the better condition of the bank. Solvency Ratio is in

good condition. So we can say that overall Solvency condition of the MCB is

better with the comparison to the previous year.

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TREND ANALYSIS

113



In trend analysis we done two types of analysis, these are

1. Horizontal Analysis

It is conducted by setting consecutive balance sheet, income statement or

statement of cash flow side-by-side and reviewing changes in individual

categories on a year-to-year or multiyear basis.

A comparison of statements over several years reveals direction, speed

and extent of a trend(s). The horizontal financial statements analysis is done by

restating amount of each item or group of items as a percentage.

2. Vertical Analysis

Like horizontal analysis this can also done for balance sheet and income

statement. Here we assign 100% value to any key item of balance sheet or

income statement and then see portion of other items in this percentage.

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115



116



117

Particulars 2008 2009 2010

ASSETS

Cash 100% 133% 132%

Balance with other banks 100% 264% 68%

Lending to financial institutions 100% 32% 30%

Investments_ net 100% 75% 78%

Advances – net 100% 174% 228%

Operating fixed assets 100% 209% 214%

Other assets_net 100% 69% 72%

Deferred tax assets_net 100% 0% 191967%

100% 110% 127%

LIABILITIES

Deposits and other accounts 100% 121% 126%

Borrowings from financial inst. 100% 35% 125%

Bills payable 100% 121% 136%

Other liabilities 100% 72% 95%

Deferred tax liabilities 100% 15% 0%

Sub ordinated loans 100% 99.9% 99.8%

Liabilities against assets 100% 0% 0%

100% 109% 123%

NET ASSETS 100% 124% 199%

REPRESENTED BY

Share capital 100% 126% 160%

Reserve 100% 187% 443%

Unappropriated profit 100% 26% 34%

100% 146% 283%

Surplus on revaluation of assets 100% 99% 101%



The horizontal analysis of the balance sheet of the bank over all give the

positive trend .The result of the balance sheet depict that there is a constant

increasing trend in cash, total assets, total liability and equity. There is

extraordinary high trend in 2010 in all factors of balance sheet as compare to

2007.

The trend of cash is increasing to upward with 32%. The trend of Total

asset is also increasing to upward with 27%, and the trend of total liabilities is

also increasing with 23% to upward. Equity is increased by 99%.

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119



120



PROFIT & LOSS A/C


Mark-up/return/interest earned 100% 59% 115%

Mark-up/return/interest expensed 100% 34% 46%

Net mark-up/interest income 100% 75% 161%

Provision against non-performing loans and advances 100% 442575% 1242153%

Provision for diminution in the value of investments 100% -172876% -98982%

Bad debts written off directly 100% 1.2% 0.16%

Provision for potential lease losses 100% 234% 0%

100% 39% 159%Net mark-up/interest income after provisions 100% 79% 161%

NON MARK-UP/INTEREST INCOME

Fee commission and brokerage income 100% 220% 270%

Dividend income 100% 127% 161%

Income from dealing in foreign currencies 100% 193% 106%

Other income 100% 116% 217%

Gain on Investments 100% 209% 226%

Gain / Loss on trading in government securities 100% -11440% -851%

Total non-mark-up/interest income 100% 163% 209%

100% 92% 172%

NON MARK-UP/INTEREST EXPENSES

Administrative expenses 100% 96% 87%

(Reversal) / Other provisions 100% 149593% -72740%

Other charges 100% 3189% 13468%

Total non-mark-up/interest expenses 100% 92% 81%

Compensation on delayed tax refund 100% 513852% 340596%

PROFIT BEFORE TAXATION 100% 130% 420%

Taxation – current year 100% 102% 301%

Prior years 100% 0% -149763%

Deferred 100% -42% 216%

PROFIT AFTER TAXATION 100% 140% 513%

121



Unappropriated profit brought forward 100% 69% 58%

Transferred from surplus on revaluation of fixed

Assets

100% 42% 137%

Profit available for appropriation 100% 116% 402%

APPROPRIATIONS

Transfer to

Statutory reserve 100% 146% 256%

General reserve 100% 800000% 5500000%

Capital reserve 100% 0% 0%

Reserve for issue of bonus shares 100% 84% 213%

Interim cash dividend Rs 1.75 per share 100% 51% 97%

Interim cash dividend Rs 1.50 per share 100% 50577% 639799%

100% 156% 541%

Unappropriated profit carried forward 100% 26% 34%

122



123



According to horizontal analysis of profit and loss account there is

increasing trend. In 2010 there is increase in all factors such as interest income

interest income interest income after provision and profit before and after tax

because the trust of people on banks is increasing day by day. The increase in

profit in 2010 is almost 5 times as compare to 2007

124



125



126


ASSETS 100% 100% 100%

Cash 9% 9% 8%

Balance with other banks 0.5% 2.2% 2.8%

Lending to financial institutions 3.8% 4% 3.3%

Investments_ net 47% 26% 23%

Advances – net 36% 53% 60%

Operating fixed assets 1.3% 2% 27%

Other assets_net 2.4% 3.8% 0.4%

Deferred tax assets_net 0% 0% 0%

100% 100% 100%

LIABILITIES 100% 100% 100%

Deposits and other accounts 81% 90% 83%

Borrowings from financial inst. 12.5% 3% 10%Bills payable 3.2% 3% 3%

Other liabilities 2.4% 2.6% 3.4%

Deferred tax liabilities 0.3% 0.8% 0%

Sub ordinated loans 0.6% 0.6% 0.6%

Liabilities against assets 0% 0% 0%

100% 100% 100%

NET ASSETS 100% 100% 100%

REPRESENTED BY

Share capital 28% 23% 18%

Reserve 29% 39% 58%

Unappropriated profit 3% 1% 1%

70% 63% 77%

Surplus on revaluation of assets 30% 37% 23%

100% 100% 100%

Assets

Investments

Cash and balances

with treasury banks

Operatig fixed

assets

Deferred tax assets

Other assets

Balances with other

banks

Lendings to financial

institutions

Advances



127

Share capital

Reserves

Bills payable

UnappropriatedprofitOther liabilities

Deferred tax

liabilitiesLiabilities against

assets subject to

finance lease

Sub-ordinated loans

Deposits and other

accounts

Borrowings from

financial institutions



INTERPRETATION

In balance sheet of bank the most important item is earning assets. There

are four earning assets. Bank has strong earning assets like advances

investments and lending to financial institutions has major percentage in of

assets of bank. In liability and equity analysis the Borrowings from financial

institutions and deposits have major portion and reserve and share capital has

major portion in equity

SUGGESTIONS & RECOMMENDATIONS

From the Quantum of the profit and its financial data it can be easily

judged that after privatization, MCB is performing well. Its deposits are growing

day by day and so its profitability. The controlling body is responsible for the

productive performance of the Bank.

Following are my observation and suggestion to improve the efficiency for the

development of the bank.

• There is a criticism on the banking management that the salaries of the

employees are decreasing in every succeeding year. And I think this will

shake the confidence and working habit of the employees.

• There is another recommendation about the bank that there is no proper

timing of the bank and there is made an unnecessary delay in the banking

transactions, which might not be a good sign for the bank from future

prosperity point of view.

• Staff turnover particularly of trained staff result in financial and other

losses. The amount spent by the bank on employment, induction and

training of outgoing officers constitutes to beat till another officer should

ready prove this work. The exodus of bank officer in the past has

worsened the situation.

• 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

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job experience all out-look towards banking. The promotion policy should

be adjusted.

• Refresher Courses for the staff are most important in any international

organization. Alt the employees should have these courses according to

their requirement. Foreign experts can also be called for this purpose.

• Every year some of the employees should be sent for training to other

countries and employees from other branches should be brought here.

Some more reading material should be provided. The purpose should be

to Educate the employees with the advance studies in their field. The

employee should be provided the opportunities to attend and participate in

seminars and lectures on banking.

• Bank should give some more incentive to its employees in order to

remove the conflict between lower and higher officers and should try to

improve the working condition of the bank.

• As such system should be designed that every employee who has some

problems with his officers can communicate it to the higher management

and some steps must be taken to improve that.

• Recruitments should be strictly on merit basis and induction should be

after proper and extensive training.

• Old and lazy staff should be replaced by young, qualified and energetic

staff.

• Foreign branches should be opened in order to capture the international

market and to earn international repute for the bank.

• Working environment, equipment, furniture and staff dressing should be

according to the modern banking style.

• Proper attention should be paid to upgrade customer services.

• Bank should adopt the global organizational banking structure to meet the

international standards of banking sector.

129



Annexes and Some Extra Information

Here I want to describe briefly all the necessary documents which are

used within bank. There are so many types of slips and other documents for

fulfilling different types of activities regarding account opening, depositing cash,

withdrawal of cash, and other cheque related documents.

First of all, I want to discuss the Deposit Slip

Deposit Slip

The deposit slip is used when any customers want to deposit his cash at

bank. In this slip, the name of account holder is shown as “Title name” is written,

and account numbers is also written. The Date and name of branch is also

mentioned in this slip. The total amount of rupees which is being deposit is

shown both in words and in figures. At the end the signature of the customer are

taken as proof.

If the customers want to transfer his cash by cheque, this slip would be

attached with cheque and the cheque number is also mentioned in this slip. If

that cheque is of any other bank like UBL, NBP, ABL then the name of the bank

would also be mentioned in this slip. In this way, this slip is filled either by the

customer or from the bank’s employees or either form the internee for providing

services to customers. This splip is shown below

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131



Online Slip

Online slip is used when any customer wants to transfer his money from

one place to another. The bank provides this facility of transfer cash. By this

facility, the customer can send the money to their loved one or relatives who are

in need. This is also used for the business purpose in the matters of give and

take cash for sale or purchase of any commodity.

In this slip, the name of account holder, number of account is used. In this

slip, the Beneficiary account name, account number and place or branch code is

also used where the cash is being transferred. The bank take some charges for

the sake of providing this facility to the customers.

Both sides of this online slip is being attached by me. But only the first

side is useful for filling purpose. Second side just shows the terms and conditions

for online.

132



133



134



Cheque Book Requisition Slip

The cheque book requisition slip is used when a new customer opens his

account and applies for to get his cheque book. The banks send him a “Letter of

Thanks”. When customer received this letter and shows this letter to the banks

employees, the bank issues his cheque book.

In this, the title of account, account number and date of issuance are

shown. The account holder signs this slip at three times. When cheque book is

hand over to the account holder, the opening cheqe and last cheque numbers

are also mentioned on this slip.

After this process, the account holder will sign at cheque book register as

a proof of receiving the cheque book. In this slip, the numbers of cheque are also

mentioned because there are three types of cheque books regarding amount of

cheques. First contains 25 cheques, second contain 50 cheques and third

contain 100 cheques.

The bank charges Rs.6 for each leaf in this way cheque book containing

25 cheques is worth Rs.150, Rs.300 for 50 and Rs.600 for 100 leaves cheque

book. These charges are either deducted by account or took in cash.

It also contains two sides process. I have attached both sides of Requisition slip as shown below.

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136



137



Cheque Return Memo

The cheque return memo is used when any cheque which is provided by

the customer can not be cashed or transferred due to any certain reason. In

some certain conditions, the customer gives cheque to any other person for the

sake of payment in business use. When the person reaches to the bank and

shows the cheque before bank employees, it is found that, there is no any

balance in this account. So in these types of typical situation if the person leaves

the cheque at the bank, the bank must return the same cheque to the owner.

When cheque return memo is attached with cheque, there are so many reasons

which are mentioned on cheque return memo. The banker must fill the account

holder name, number of account, and he must mention the reason of rejection of

cheque.

The cheque return memo is also used in the clearing matters. When two

different banks matches their balances and notice the whole transaction between

them, if there will be any missing cheque is available which is not transferred, this

would be attached to the cheque return memo and return to the owner of the

cheque.

There are total 30 reasons for retuning the cheque and bank must mention

the most related situation for cheque returning. This slip is show below.

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139



CONCLUSIONS

It is evident from this report and the financial statements of MCB that it is

making progress by leaps and bounds. The profits of MCB have grown

considerably during the last few years and this trend is expected to continue nto

the future. Therefore, we conclude that MCB has a very prosperous present and

future, which assures the shareholders of wealth maximization. Side by side of it i

think that if bank would be able to cover and control on the above mentioned

recommendations then it would be in such a situation that will really lead it

towards the road of prosperity, development and integrity. And with the above

mentioned sentences i think there is too fault of the customers and in order to

make the proper working of the bank the customers should also cooperate with

the bank which will be really a good, ambitious and diligent condition for the

bank. And then bank will be really in such a situation and position to compete its

competitors in the country as well as on international level.

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BIBLIOGRAPHY

• http://www.mcb.com.pk/default.asp

• MCB Annual Report 2010

• MCB Economic Bulletin

• Financial Management by C.Van Horne

• Financial Management by Gitman

• Sir Faisal Manager Operations

• Sir Hafiz Muhammad Amjad (M.Com)

• Sir Waseem (M.com Finance)

• Sir Khalid Mehmood (M A English)

Cmplete Intrnship Report

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