zunaira mcb report.pdf

INTERNSHIP REPORT ON

MUSLIM COMMERCIAL BANK

Internship Report submitted to the Faculty of Management & Administrative

Sciences in Partial Fulfillment of the Requirements for the Degree of

Bachelors of Business Administration.

BY

Zunaira Ilyas

09040920-024

BBA 7th Semester (2009-2013)

UNIVERSITY OF GUJRAT

Date of Submission: 22-01-2013

Name of Program Coordinator ___________________

Signature of Program Coordinator_________________

ACKNOWLEDGEMENT

All praises to Allah Almighty and our Holy Prophet Muhammad PBUH who

gave me the courage and patience for completion of this final report.

I wish to acknowledge my gratitude to my inspiring Teachers for their

endless their persistence, support and encouragement, and for providing

me a lifetime opportunity to work with Muslim Commercial Bank.

I am also very thankful to Muslim Commercial Bank Ltd. Jalal Pur Jattan

the Branch Manager. Mr. Sajjad who gave me opportunity to work with

experienced persons in their organization.

I am also thankful to my parents, family and friends that continually

offered encouraging support.

Table of Contents Page #

Executive Summary ---------------------------------------------------------------------------i

1. 1. Introduction -----------------------------------------------------------------------------1

1.1.1. Objectives -------------------------------------------------------------------------------1

1.1.2. Purpose ---------------------------------------------------------------------------------2

1.1.3. Scope ------------------------------------------------------------------------------------2

1.2. Overview of the Organization ------------------------------------------------------2

1.2.1. Vision & Mission-----------------------------------------------------------------------2

1.2.1.1. Vision Statement--------------------------------------------------------------------2

1.2.1.2. Mission Statement------------------------------------------------------------------2

1.2.1.3. Core Values--------------------------------------------------------------------------3

1.2.2. Brief History of the Organization---------------------------------------------------3

1.2.3. Nature of the Organization----------------------------------------------------------4

1.2.3.1. Business Segments----------------------------------------------------------------4

1.2.4. Business Volume, Reward Honors -----------------------------------------------6

1.2.4.1. Business Volume--------------------------------------------------------------------6

1.2.4.2. Rewards & Honor-------------------------------------------------------------------6

1.2.5. Product & Services--------------------------------------------------------------------8

1.2.5.1. Retail Banking------------------------------------------------------------------------8

1.2.5.2. Corporate Banking----------------------------------------------------------------11

1.2.5.3. Virtual Banking---------------------------------------------------------------------12

1.2.5.4. Islamic Banking--------------------------------------------------------------------13

1.2.5.5. Services------------------------------------------------------------------------------14

1.2.6. PEST Analysis------------------------------------------------------------------------16

1.2.7. Contribution of the Organization toward Economic Development. -----18

1.3. Organizational Structure-----------------------------------------------------------20

1.3.1. Organizational Hierarchy Chart---------------------------------------------------21

1.3.2. Numbers of Employees-------------------------------------------------------------22

1.3.3. Main Offices---------------------------------------------------------------------------23

1.3.4. Introduction of All Departments---------------------------------------------------24

1.3.4.1. Account Opening Department--------------------------------------------------24

1.3.4.2. Remittance Department----------------------------------------------------------24

1.3.4.3. Cash Department------------------------------------------------------------------25

1.3.4.4. Advance and Credit Department----------------------------------------------26

1.3.4.5. Technology Department---------------------------------------------------------26

1.3.4.6. Foreign Exchange Department------------------------------------------------27

1.3.5. Comments on Organizational Structure----------------------------------------28

1.4. Internee work---------------------------------------------------------------------------29

1.4.1. Branch information-------------------------------------------------------------------29

1.4.2. Detailed of supervisor---------------------------------------------------------------29

1.4.3. Weekly time table--------------------------------------------------------------------30

1.4.4. Detailed description of the department-----------------------------------------36

1.4.5. Tasks assigned to me---------------------------------------------------------------58

1.4.6. Summary of learning----------------------------------------------------------------63

2. Conclusion of the report-----------------------------------------------------------------67

2.1. Summary of key conclusion----------------------------------------------------------67

2.2. General observation about sector--------------------------------------------------67

2.3. SWOT analysis’s-----------------------------------------------------------------------68

3. Recommendations----------------------------------------------------------------------70

4. References---------------------------------------------------------------------------------72

5. Appendix----------------------------------------------------------------------------------

Executive Summary

Internship training program is important and necessary requirement for the

completion of our BBA degree that all students have to spend 6 weeks in any

organization to get practical disclosure and to get familiar with the ways to live

in the organizational environment which is completely different from the

educational environment. So I choose Muslim Commercial Bank, Jalal Pur

Jattan Branch. MCB was started in 1947, and quickly earned the reputation in

the banking industry. In this report I have explained the overview of MCB

bank; it’s about the successful story of the bank its different awards that MCB

bank achieves in previous year. In this report MCB organizational structure

was also highlighted. I have also mentioned the MCB Contribution of the

Organization toward Economic Development. MCB played very important role

in the development of the Pakistan economy. This report is about MCB

products, customer service lines and its management style.

During my internship program I have worked in different departments of the

bank i.e. account opening department, clearing department, remittance

department and cash department. I learned about the basic function of all

these departments. During my internship different responsibilities were

assigned to filling deposit slips, online fund transfer application, preparing

clearing, calculate the bills amount and making vouchers. I learned about

what documents are required for account opening.

MCB has been an initiate amongst the banks in Pakistan, as it introduced a

number of innovative banking products and services. Mechanization of

branches and online banking has improved the effectiveness of the bank. In

this report I have explain the skills and qualification which I gained during

internship. I also explained all working condition of the MCB bank. I have also

make PESTL and SWOT analysis of MCB bank. I have also recommended

some suggestion for the better performance of the bank.

Zunaira Ilyas FMAS 1 09040920-024

PART 1

1.1. INTRODUCTION:


completion of our BBA degree that all students have to spend 6-8 weeks in

any organization to get practical disclosure and to get familiar with the ways to

live in the organizational environment which is completely different from the

educational environment.

I am very grateful to Manager Mr. Sajjad Ahmed that gives me opportunity to

internship in this branch. This report is about MCB products, customer service

lines and its management style.

I actually love to join the banking field after my BBA degree that’s why I

choose MCB for my internship expand the knowledge. I worked in various

departments of MCB and expand knowledge what they do there. This

internship exposure professional work setting.

1.1.1. Objective:

I worked as an internee in MCB Jalal Pur Jattan, Gujrat. The key objectives to

study in MCB were

To discuss throughout the MCB limited of Pakistan.

To understand different departments of the bank.

Implement my bookish knowledge into practical way.

To obtain some knowledge in working with well reputed organization.

To know how to manage and deal with the situation of stress.

Analyzing savings and investment trends in banking field.

To study innovations in client service in banking.

Work in the different department in the bank and learn how every

department contributes to the bank as a whole.


1.1.2. Purpose:

The main purpose of my internship is to make appropriate internship report on

Muslim Commercial Bank Limited.

To examine the working of the organization and to gain practical

experience of my class room knowledge

To build up interpersonal communication skills.

To practically work in an organization

1.1.3. Scope:

Scope of my study is that I be able to know the way to perform activities in

MCB. My internship provides me a good opportunity to work in all the

departments of the bank. This study will assist the students about the working

of banking area of Pakistan because mostly teachers use examples related

banks like MCB, UBL, BOP during their lectures and various other student

must study this report so that they should grab this operation of such banks.

1.2. OVERVIEW OF THE ORGANIZATION:

1.2.1. Vision & Mission:

1.2.1.1. Vision Statement:

“To be the leading financial service provider, partnering with our customer for

more prosperous and secure future”

1.2.1.2. Mission Statement:

“We are a team of committed professionals, providing innovative and efficient

financial solutions to create and nurture long term relationships with our

customers. In doing so, we ensure that our shareholders can invest with

confidence in us”


1.2.1.3. Core Values:

MCB core values are

Innovation

Integrity

Excellence

Respect

Customer Centricity

1.2.2. Brief History of the Organization:

The history of MCB can be divided into three main Phases:

Development Phase

Nationalization Phase

Privatization Phase

Development Phase:

MCB Bank Limited formally Muslim Commercial Bank was incorporated by the

Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913

as a limited company. The objective of established was to provide banking

services to the business community of the South Asia. After the separation of

the Indo-Pak subcontinent, the bank moved to Dhaka from where it

commenced business in August 1948. The bank shifted its head office to

Karachi in 1956 through special resolutions.

Nationalization Phase:

The 1960 decade is stated as the golden era in Pakistan’s economic and

financial development. But the situation was totally changed in 1970s. The

MCB performance was badly affected by bureaucrat government. Due to the

changing circumstance of the country, the government decided to nationalize

all commercial banks. As a result the MCB was nationalized on 1st Jan 1974


under the bank Nationalization Act 1974.At that time MCB had Rs.1, 640

million deposits and 506 branches.

After nationalization the major changes were as follows:

Working of banks was extended to under developed areas.

Market extension for deposits and credit.

Privatization phase:

In 1990 the government decided to privatize all the nationalized institutes. For

this reason, amendments were made to Nationalization Act 1974 and two

nationalized banks were privatized. Government had been granted a

permission to open bank in private sector.

In 1990 privatization policy was announced. MCB was the first to be privatized

upon recommendations of World Bank and IMF. The purpose for this

selection was the improved profitability situation of the organization. On April

8th, 1991, the organization control was handed over to Nishat Group. At the

time of privatization the total number of branches were 1287 and deposits

amounting to as high as Rs. 35,029 million.

1.2.3. Nature of the Organization:

MCB Bank Limited is a banking company integrated in Pakistan and is

engaged in commercial banking and related services. MCB Bank has been

providing good quality services to its customer and citizen of Pakistan since

sixty five years.

1.2.3.1. Business Segments:

MCB Bank Limited is a Pakistan-based company. The Bank divided in four

business segments:

Corporate finance


Trading and sales

Retail and consumer banking

Commercial banking

Corporate Finance:

Corporate finance includes securitization, investment banking, underwriting,

syndications; initial public offerings (IPO) related activities and secondary

private placements.

Trading & Sales:

Trading & sales segment includes equity, fixed income, foreign exchange

commodities, lending’s to financial institutions and brokerage debt.

Retail & Consumer Banking:

Retail & consumer banking includes banking services, private lending and

deposits, retail lending and deposits, banking services and retail presented to

its retail customers and small and medium enterprises.

Commercial Banking:

Commercial banking segment includes export finance, project finance, trade

finance, lending, leasing, guarantees and bills of exchange relating to its

corporate customers.

MCB intend to be an organization that is based on Development by formation

of sustainable relations with customers. MCB shall work to create Value for

stakeholders and Meet the expectations by Market-based solutions and

products. MCB have assurance that tomorrow we will be Leaders in our

industry. MCB is an innovative, motivated and active institution responding to

the changing needs of the internal and external environment.


1.2.4. Business volume, reward honors & success stories

during the five years

1.2.4.1. Business volume:

Business volume in terms of investments, Advances, Deposit, Advances and

Reserves for the last five year as under:

Rupees in Million

2011 2010 2009 2008 2007

Net Asset 88,802 79,203 69,740 58,436 55,120

Advances 225,801 254,552 253,249 262,135 218,961

Deposits 491,189 431,372 367,605 330,182 292,098

Reserves 42,186 40,163 38,386 36,769 34,001

Investments 316,652 213,061 167,134 96,632 113,089

Shareholders’

Equity

78915 69,180 61,076 52,245 45,414

Earnings per

share

23.23 20.18 18.53 18.39 18.26

1.2.4.2. Rewards & Honor:

Euro Money Awards:

Euro money awarded as MCB:

Best Bank Award in Asia 2011

Best Bank Award in Pakistan 2008




Asia Money Awards:

Asia Money awarded as MCB:

Best Domestic Bank in Pakistan 2009




Others Awards:

Along with some other awards including

In 2011 MCB was awarded by Most Stable Bank Award of the

Year

In 2011 MCB was awarded by Most Bank Award of the Year

In 2011 MCB was awarded joint 2nd Runner up for BC 2010

In 2011 MCB got the BCR Award 2010-Banking Sector

MCB got the BCR Award 2009-Banking Sector in 2010

MCB also got Certificate of Merit Award in 2010

MCB was awarded by Leadership Achievement Award in 2010

MCB was awarded by Best Bank Led MMT Service in 2010

MCB Bank also received the “The Strongest Bank 2010” award by

The Asian Banker for being Pakistan’s best-performing financial

institution in 2010.

President and CEO MCB Bank, Atif Bajwa, has been awarded “The

Qatar Financial Centre Asian Banker Leadership Achievement

Award 2010”. These accolades are the proof of MCB’s constant

effort in providing the customers with greatest quality and care.

Honors:

MCB Mobile was chosen for the best “Mobile Money Service” at the

Mobile World Congress, 2010, held by the GSMA in Barcelona Spain.


In 2010 another nomination came by the way of “The Banker

Magazine”, for the publications “Innovation in Banking” Award.

1.2.5. Product & Services:

Products and services of MCB can be divided into five major heads.

1.2.5.1. Retail banking

1.2.5.2. Corporate banking

1.2.5.3. Virtual banking

1.2.5.4. Islamic banking

1.2.5.5. Services

1.2.5.1. Retail Banking:

Retail banking involves following major head

1.2.5.1.1. Deposits accounts

1.2.5.1.2. MCB traveler’s rupee cheques

1.2.5.1.3. Loan products

1.2.5.1.1. Deposits Accounts:

1.2.5.1.1.1. Pak Rupee Savings Account:

MCB’s Pak Rupee Savings Account offers its customer with attractive returns

on their Pak Rupee savings. MCB Savings Account offers you one of the most

appropriate ways to deal with your hard-earned money.ATM facility is also

given on this type of account.


1.2.5.1.1.2. Pak Rupee Current Account:

MCB’s Pak Rupee Current Account offers the ease of unlimited withdrawals

i.e. customer can access to funds at any time without any notice. There is no

restriction on the number of transactions a customer makes in a day. It also

facilitate to the customers to meet the every transactional need.

1.2.5.1.1.3. Smart Dollar Account:

MCB Smart Dollar Account is a sensible mode to sustain or grow your US

Dollar deposit across Term Deposits or Savings.

1.2.5.1.1.4. Business Accounts:

MCB Business Account provides the facility to special businessman’s build

their business through accrued saving from low-cost transactional fees.

1.2.5.1.1.5. Foreign Currency Account:

Enjoy the assurance of operating an international account, locally. MCB

Foreign Currency Account provides you the opportunity of earning greatest

returns on your Foreign Currency savings.

1.2.5.1.1.6. Saving 365 Gold:

MCB Saving 365 Gold Account provides you a wide variety of attractive profits

rates. Through this account customer can earn greatest profit and also

provides the facility of limitless withdrawals.

1.2.5.1.1.7. Mahana Khushali Bachat:

MCB Mahana Khushali Scheme provides you with a fixed income each

month. Just buy a Monthly Khushali Certificate and customer will enjoy a fixed

income of whole deposit every month.


1.2.5.1.2. MCB Rupee Travelers Cheque:

MCB Rupee Travelers cheques were first introduced in 1993.RTC is greatest

and safest alternate mode of carrying

cash. It is a secure and safe mode to

make payments nationally. It is used by

different businessman and travelers in

meeting their day to day cash.

1.2.5.1.3. Loan Products:

1.2.5.1.3.1. Personal loans:

“The more you praise and celebrate your life, the more there is in life to

celebrate”. MCB personal loan shortens the space between your dreams and

your celebration. It is flexible, fast and affordable.

1.2.5.1.3.2. MCB Pyara Ghar:

MCB gives the flexible and competitive home

financing facility with choices of home purchase,

renovation and construction. Renovate or Construct

your home according to customer needs.

1.2.5.1.3.3. Business Sarmaya:

Good cash flow is the means to any successful business. MCB Business

Sarmaya offers running finance against your flat/ housing property.

1.2.5.1.3.4. Car4U:

"Kahin Na Kahin Tau Hai…1 Car 4 You”. MCB Car 4 U makes it a breeze

to lease your new/used car. MCB Car4U not only gets a car of your own


choice but is also reasonable with competitive mark-up, flexible conditions,

easy processing.

1.2.5.1.3.5. Easy Personal Loan

MCB Easy Personal Loan provides greatest return to its customer by giving

easy access to personal loan. From this greatest return you can easily

purchase a new car or TV.

1.2.5.2. MCB Corporate Financing:

MCB Corporate Financing includes financing options, term loans, working

capital loans trade finance services and investment banking.

1.2.5.2.1. Term Loans:

MCB offers Short to Medium Term Finance to meet capital expenditure and

short term working capital requirements of our clients. The loans are planned

on the basis of basic project characteristics and cash flows of the business.

1.2.5.2.2. Trade Finance Services:

MCB corporate Banking provides trade finance services in which includes an

complete range of export and import activities including provides guarantees,

issuing letters of credit and purchasing exports documents.

1. 2.5.2.3. Working Capital Loans:

Corporate bank offers different working capital financing facilities to meet the

customer specific needs. In these financing facilities includes

Cash Finance

Running Finance

Export Finance


Pre-shipment

Post- shipment

1.2.5.2.4. Cash Management:

Cash Management provides a wide variety of value added services to large

corporations through its vast network of online branches. Our customized

products facilitate our customers to understand their sales proceeds rapidly

from all over the country, supported by real-time MIS.

1.2.5.3. Virtual Banking:

MCB Virtual Banking offers facility customer to

manage and control your bank account and

finances; when you want and where you want.

MCB’s Virtual Internet Banking facility is simple

and secure. MCB Virtual Internet Banking allows

customer to access banking services, 24 hours a day, 7 days a week and all

over the year. MCB Virtual Internet Banking offers different online services as

Detailed Account Summary of all listed accounts.

Bulk Funds Transfer for Corporate Customers.

Cheque Book Request for any of your listed accounts.

Mini-statements of every of the listed accounts showing current

transaction history for that account(s).

Bulk Salary Transfer for Corporate Customers, to assist them in paying

salary to the corporate employees, who sustain accounts with MCB.

Payment of utility bills for registered Utility Companies

Immediate or Scheduled Transfer of Funds between your own

accounts, as well as to third-party accounts.


1.2.5.4. Islamic Banking:

With the assist of Shariah specialists,

lawyers and professional commercial

bankers, MCB Islamic Banking provides

Riba Free and Shariah Compliant services

to different customer segments.

1.2.5.4.1. Deposit Schemes:

For customers who are looking for a deposit opportunity where they can follow

their funds and collect halal returns on it, MCB present the subsequent

products:

Al-Makhraj Term Deposit

Al-Makhraj Saving Account

Al-Makhraj Ianat Account

1.2.5.4.2. Fund Based Facilities:

MCB provides three broad Islamic fund based facilities:

1.2.5.4.2.2. Murabahah

1.2.5.4.2.3. Diminishing Musharika Equipment

1.2.5.4.2.1. Ijarah

1.2.5.4.2.1. Murabahah:

It is an agreement between a purchaser and a seller in which the later first

purchases the goods at the demand of the former i.e., customer and then

sells it to same customer after addition of profit.

1.2.5.4.2.2. Diminishing Musharika Equipment:

It is an agreement through which the bank and its customer contribute in the

joint ownership of a property.


1.2.5.4.2.3. Ijarah Products:

MCB’s Islamic Ijarah, similar to the English term 'leasing’, is based on the

‘Ijarah wa Iqtina’ concept which means the sale of the asset to the lessee

after the Ijarah has matured.

1.2.5.5. Services:

1.2.5.5.1. MCB Lockers:

MCB Lockers are the greatest protection for your valuables things. Lockers of

different capacities are accessible nationwide by MCB,

1. Small Lockers

2. Medium Lockers

3. Large Locker

1.2.5.5.2. MCB ATMs Services:

MCB has one of the nation's main ATM networks with over 450 ATMs and

still growing.MCB ATMs present you 24-hours convenience of cash

withdrawal, utility bill payment, , funds transfer services, mini-statement etc.

Our modern mobile ATMs make sure that you are given service close to you.


1.2.5.5.3. MCB Call Center:

The state of the art MCB call center is the accurate option to keep customers

in step with their ever hectic schedule by providing those services relating to

the account and the smart card at any point in time. MCB Call Centre you can

maintain your VISA credit & ATM/Debit cards, check your account balances,

confirm last 5 transactions, pay utility & mobile phone bills.

1.2.5.5.4. Mobile Banking:

Now MCB introduced MOBILE BANKING. MCB

Mobile is a rapid, easy and protected way to

recharge mobile phones, pay bills, transfer

money, and do much more. No need to visit a

branch or an ATM anymore, login to

www.mcbmobile.com using your mobile phone and start transacting.

1.2.5.5.5. MCB Smart Card:

MCB now brings MCB Smartcard. It is a safe and convenient tool of payment

24-hour direct access to bank account.

1.2.5.5.6. MCB Debit Card:

Now MCB brings a safe, fast and convenient payment facility that enables the

customers to do purchasing by using their existing MCB ATM / MCB Smart

Card as a DEBIT CARD.

1.2.5.5.7. Bill Payments:

MCB easy bill pay offers unmatched convenience to pay

your utility and mobile phone bills or re-charge your


prepaid mobile phone accounts anytime, anywhere with security and peace of

mind.

1.2.5.5.8. Online Banking:

MCB has a fast growing network of over 1,100 online branches in the country

providing customers real time online transaction facilities.

1.2.6. PEST Analysis:

PEST analyses inform How Political, Economical, Social and technological

factors influence MCB.

1.2.6.1. Political and Legal Environment:

Banks are strongly affected by the political and legal consideration. This

environment is comprised of administration law and regulatory agencies that

influence and bound different organizations and individuals. Most these law

generate new opportunities for business.

Employment practices are estimated to change.

Political interfering about policies is estimated to increase as current

government in race of power gain.

Government policies are changing day by day and government

constancy is also not there

Due to the lack of assurance on government saver is reluctant so

mobilization of funds is going to reduce.

1.2.6.2. Economic Environment:

A banking sector requires better consumer market along with higher

borrowing power. Economic trends in country are following:

Inflation is very high which will reduce purchasing power


Value of rupee is decreasing which is modifying the Pakistan economy.

There is an economic recession globally.

Operating costs are growing due to inflation.

Interest rate is rising so loan taking has decreased.

Due to inflation Staff cost are increasing as basic salary rate has

increased

1.2.6.3. Social Environment:

A society is formed by, norms, beliefs and values. Social factors frequently

appear at the cultural aspects and include health awareness, changes in

tastes and buying patterns and Population growth rate. So understanding

changes in this part can be very important.

Banking area is very imperative for the well being of the society. Social culture

of Pakistan affects the banking area as,

Lack of experts is in our country concerning management hence

modern activities are slow, conservative methods are adopted.

Insufficient Empowerment is also a natural problem in our organization

as every person want to get more power consequently there is less

decision making.

It’s very easy to shape the mind with an usual literacy rates of 37.6% in

any desired track.

Declining work ethics is also issue which is mostly due to lack of

training and poverty.

Now People are greatly conscious on brands in Pakistan.

Insufficient Accountability lack of good infrastructure and lack of good

governance helps creditor to trick and serious bad debts happen.


1.2.6.4. Technology Environment:

Technology advancements have a major impact on banker’s achievement.

Technology is crucial for competitive advantage. Growth rate of economy is

deeply affected by change rate of technology. People are very skilled and

MCB can begin new technology to enhance competencies. The advance

techniques involved in on line banking.

MCB has computerized it’s mostly branches but still a few are manual,

is needed to computerized if not clients will get bad image.

Now a day bank used computerized system which is very efficient. But

MCB will have to advance its computerized expertise as some fake

transactions occur by ATM

Shortage of electricity.

Employees of every organization require IT instruction. MCB will have

to follow it.

In brief PEST analysis affects the general banking companies and gives us

the information regarding the external macro circumstance.

1.2.7. Contribution of the Organization toward Economic

Development.

MCB is playing an important role in the economic development of Pakistan by

providing innovative and value added products to its different customers. MCB

offer the financial solution to corporate and retail segments.MCB recognized

separate business groups for satisfying the different customer segments.

Retail Banking:

MCB emphasis on trading and middle market sector mainly for trade related

business and building risk asset. MCB caters to their needs of financing local

and foreign trade, funds transfer and further seasonal requirements.


Shariah Compliant Products and Services:

MCB has also established an Islamic Banking unit to provide Shariah

compliant products and services. MCB established Islamic banking branches

in six cities. The plan for future is to further realize the capacity of Islamic

Financial Systems and to bring Shariah compliant network similar to current

retail network of conventional banking.

Employment Opportunities:

MCB offers jobs to a great number of people so contributing in rising the

employment opportunities in Pakistan.

Broadest Branch Network:

MCB has a huge branch network in Pakistan, it has approximately 1073

branches in Pakistan so performing their functions and collecting money from

all corner of the country so significantly contributing to the development of the

economy.

MCB Role in SME Development:

For meeting the requirement of the SMEs and other retail customer MCB

modernize its large number of branches and trained its staff. MCB has

established a separate SME Financing Division to provide modified financing

solutions to this very main segment of the Pakistan economy.


1.3. ORGANIZATIONAL STRUCTURE


1.3.1. Organizational Hierarchy Chart:

Presedent

Vice presedent

Exceutive vice presedent

Senior voice presedent

Vice presedent

Assistant vice presedent

Office grade1,2,3

Assiatants

Cashier


1.3.2. Numbers of Employees:

Number of permanent employees: 9987

Chairman: Mian Mohammad Mansha

Vice Chairman: S. M. Muneer

President Chief Executive & Officer: Mr. M.U.A. Usmani

Board of Directors:

Mian Mohammad Mansha

S. M. Muneer

Mr.M.U.A. Usmani (President / CEO)

Mr.Tariq Rafi

MR. Shahzad Saleem

Mr. Sarmad Amin

Dato’ Mohammed Hussein

Dato’ Seri Ismail Shahudin

Mian Raza Mansha

Mian Umer Mansha

Aftab Ahmad Khan

Manzar Mushtaq

Ahmad Alman Aslam

Audit Committee:

Tariq Rafi

Aftab Ahmad Khan

Ahmad Alman Aslam

Dato’ Seri Ismail Shahudin

Dato’ Mohammed Hussein

Chief Financial Officer:

Mr. Salman Zafar Siddiqi


Auditors:

A.F Ferguson & Co.

Chartered Accountants

Legal Advisors:

Khalid Anwer & Co.

Advocates & Legal Consultants

1.3.3. Main Offices:

Registered Office:

MCB Building, F-6/G-6, Jinnah Avenue, Islamabad.

Principal Office:

MCB House 15 Main Gulberg, Lahore.

UAN: (042) 111-000-111

PABX: (042) 36041998-9

Website: www.mcb.com.pk

Email: [email protected]

[email protected]

Shares Registrar:

M/s. THK Associates (Pvt.) Ltd., State Life Building No.3,

Dr. Ziauddin Ahmed Road, Karachi

Corporate Office:

MCB House, Jail Road, Lahore

mailto:[email protected]


1.3.4. Introduction of All Departments:

There are five main departments in all branches of Muslim commercial Bank.

1.3.4.1. Account Opening Department

1.3.4.2. Remittance Department

1.3.4.3. Cash Department

1.3.4.4. Advance and Credit Department

1.3.4.5. Foreign Exchange Department

1.3.4.6. Technology department

1.3.4.1. Account Opening Department:

Opening of account is the most significant department of the Bank as this is a

contract between the customer and bank. All future operation/transaction are

carried out as per this contract and any deviation may risk the bank’s interest.

The opening of a new account is the founding of customer banker

relationship. By opening an account at a bank, a person becomes a customer

of the bank. The customers can open following accounts:

Current Account

Saving account

Profit and loss sharing Account

Basic Bank Account

Fixed Deposit

1.3.4.2. Remittance Department:

The Remittance department deals with the transfer of money from one client

to another. The main function of the bank to provide the fund transfer facility

or remittance of funds. Remittances through banking channels save time,


less cost and remove the risks involved in physical transportation of money

from one place to another. MCB transfers money in the subsequent ways.

Pay Order

Demand Draft

Mail Transfer

Telegraphic Transfer

Pay Slip

Call Deposit Receipt

Traveler’s Cheque

1.3.4.3. Cash Department:

The cash department is the main department of the bank. In cash department

both deposits and withdrawals go side by side. This department deals with

cash deposits and payments. The basic goal or objective of the banks is to

earn profit, and cash department plays an important role in this matter. The

bank receives cash from the clients and invests it in business. Cash

department performs the following functions.

Receipt

Payments

Collection of utility Bills

Saving Cash

Sorting of notes

Opened cheques payments are paid after verifying accounts holder signature,

while crossed cheques are send to clearing department.

MCB reject a cheque of customer due to following reasons:

Amounts in words and figures differ

Drawer's signature differs

Cheque manipulated.


Payment stopped by drawer.

Payee's endorsement requirement.

Cheque post-dated.

Cheque of outdates

1.3.4.4. Advance and Credit Department:

Advance and Credit department approves the diverse type of loans for

different businesses and moreover for customer’s personal use like

1. Loans

2. OD (overdraft)

3. Cash credits

For approve the loans form departments it is compulsory to give something as

guarantee such as property and other types of asset. Collateral or guarantee

must be equal or more than the amount of loans which are specified by the

department. In case of giving loans every branch has a specific limit and if the

amount of loan is under the limit of the branch then it is easily approved by the

bank but if the amount is greater than the limit of the branch then loan will be

approved by the head office and in this situation branch collect all required

documents from customer and then sent them to the head office. If head

office allowed the loan then typically the period restrains a year. All this

process is recorded in the bank until the customer has not refunded the

amount of the loan.

1.3.4.5. Foreign Exchange Department:

The foreign exchange department of bank deals with all the foreign exchange

affairs like payment or retirement, foreign remittances, letter of credit dealing,

foreign currency accounts dealing and foreign Remittance dealing. In the

payment /retirement when transactions are completed then a conformation

documents sent to the main office. In Foreign remittance the money is


transferred to some other foreign country. For providing this facility bank

services charges are 50 rupees. MCB is committed to offering its business

customers the broadest range of options in the area of money transfer. If you

are a commercial enterprise then our Letter of Credit service is just what you

are looking for. With competitive rates, security, and ease of transaction, MCB

Letters of Credit are the greatest way to do your business transactions. MCB

provide the facility to the customer that they can open their accounts in foreign

currency in form of current account, deposit account & saving account. This

department deals with the foreign currency accounts which generally include

dollar account, pond account and euro account etc.

1.3.4.6. Technology Department:

The banking industry is affected by Technological advancements. The foreign

banks have a competitive edge above all local bank in their technologies'

development and automated

structure.MCB is ahead of all other

local banks in this ground and now it

is in a point to yet compete with

foreign banks. There are more than

1173 branches of MCB all over

Pakistan and out of these more than

300 branches are fully automated. All

the branches of big cities have good

automated system and other cities are also demanded for new technology in

the bank. Recently MCB has also introduced the concept of online banking.

There are now more than 250 branches connected through this structure 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 activate their account through all the online branches.


1.3.5. Comments on Organizational Structure:

The organizational structure of MCB is participative and development

Oriented.

Dynamic culture provides different growth opportunities across

Pakistan and in many other countries around the world.

MCB has formed a challenging environment that encourages

commitment and creativeness.

Fundamental objective of the management is to offer a place which is

much relaxed and feasible for bank employees

MCB fosters a work environment where employees can recognize their

potential whether locally or in the international arena. Thus, facilitate

the employees to attain their professional goals while keeping in synch

with the bank’s general objectives.


Part 2:

1.4. INTERNEE WORK:

1.4.1. BRANCH INFORMATION:

I have done my internship program in Muslim Commercial bank limited jalal

pur jattan branch Gujrat. it is located on main circular road of the city & was

started in 1975.it is single segment branch. In this branch different

departments are included like account opening department, clearing

department, and remittance department. The complete information about

branch.

Name of Branch: Muslim Commercial Bank jalal pur jattan

Branch Code: 0825

Branch Address: Circular Road .Jalal Pur Jattan

Period of My Internship:

I started my internship on 2nd August 2012 and completed on 12 September

2012.

1.4.2. DETAILED OF SUPERVISOR:

Position Name

Branch Manager Mr. Sajjad Ahmed

Operational Manager Mr. Basharat shafique

General Banking Officer Ms Nabila Dar

Customer Service Officer Ms. Zardashia chohan

Senior teller officer Mr. Muhammad Raiz

Junior Teller Officer Ms Sadaf Aslam


1.4.3. WEEKLY TIME TABLE:

1st Week

Department: General Banking

Supervisor: Ms. Zardashia Chohan

Signature:

Date Duties performed

02-08-2012 Learn about deposit slip

How to fill deposit slip?

03-08-2012 Learn about cheque.

Learn about voucher.

04-08-2012 Learn about online fund transfer

05-08-2012

06-08-2012 Learn about direct deposit form.

07-08-2012 Filled off time policy sheet

08-08-2012 Learn about cheque stop payment


2nd Week

Department: General banking (Account Opening)

Supervisor: Ms. Zardashia Chohan

Signature:


09-08-2012 Learned about account opening form.

10-08-2012 Learned about account opening and different types of

accounts.

Learned what documents required for different

accounts.

11-08-2012 Learned about different stamps that are used in account

opening form.

12-08-2012

13-08-2012 Open individual account.

Learned about the closing of account

14-08-2012 Stamped all account opening forms.

Making entries in opening register Issuance of cheque

book

15-08-2012 Practice in account opening department.


3rd Week

Department: Remittance Department

Supervisor: Ms. Nabila Dar

Signature:


16-08-2012 Learned about remittance.

Types of remittance.

learned about the PO and DD.

17-08-2012 Learned about telegraphic transfer.

learned the issuance process of DD.

18-08-2012 Learned about how to make PO?

Learn about traveler check

19-08-2012

20-08-2012 Eid holidays




4th Week

Department: Clearing Department

Supervisor: Ms. Nabila Dar

Signature:


23-08-2012 Learned about clearing and crossing concept.

Learned about how to make entries in clearing

register.

24-08-2012 Prepared inward and Outward clearing.

Maintain record of clearing in clearing register.

25-08-2012 Filled trunk call log register.

26-08-2012

27-08-2012 Received cheques for clearing and issued deposit

slips.

28-08-2012 Prepared intercity clearing and maintain record in

clearing register.

29-08-2012 Worked in clearing department.


5th Week

Department: General Banking (Locker and ATM facility)

Supervisor: Sir Basharat shafique

Signature:


30-08-2012 Learned about ATM services

Learned about locker & ATM facility.

31-08-2012 Maintain ATM cards record in ATM card register.

01-09-2012 Learned about how to operate locker?

Issued cheque books to customers.

02-09-2012

03-09-2012 Guide customer about card activation

Learn about closing of locker

04-09-2012 Complete knowledge about ATM facility

05-09-2012 Worked in remittance and account opening department


6th Week

Department: Cash Department and final practice in all departments

Supervisor: Miss Sadaf and Sir basharat shafique

Signature:


06-09-2012 Learned about different cash books.

Learned about the collecting of utility bills.

Learned about the process of the verification of cheques

for payment.

07-09-2012 Worked as clearing officer

08-09-2012 Worked as CSO officer

Attended phone calls and guide customer.

09-09-2012

10-09-2012 Learned about the receipt of cash

11-09-2012 Learned about the cash balancing at the day end.

12-09-2012 Worked in all departments


1.4.4. DETAILED DESCRIPTION OF THE DEPARTMENT:

I worked in various departments of bank in my internship duration. I learned

about the main activities of the all departments. During my internship different

responsibilities were assigned to filling deposit slips, online fund transfer

application, preparing clearing, calculate the bills amount and making

vouchers.

Account opening department

Clearing department

Remittance department

Cash department.

1.4.4.1. Summary of 1st Week:

In the first week I observed the main activities in bank. I treat all customer of

online fund transfer application and deposit slip. MCB branch is in rural area.

Many people are illiterate that’s why its employee’s responsibility to help them

and fill the cheque, deposit slip and online fund transfer application. During

my internship the responsibility to fill online fund transfer application and

deposit slip was given to me.

Deposit Slip:

When customers want to deposit money in the account then customer service

officer issued deposit slip for depositing the money in the account. Deposit

slip consists of following information.

Title of account

Account number

Notes denomination

Customer sign

Amount in words

Amount in figures


Name of branch

Code of branch

Stamp and signature of authorized

Date

Cash amount and cheque

Cash depositor goes to the cashier along with deposit slip and cheque

depositor slip goes to the servicer customer officer. Teller officer take the

deposit slip from the customer and check the amount, denomination of notes

and put the stamp of Cash Received on deposit slip. Then credited the

customer account in the system. Teller officer return the one copy of deposit

to the customer.

The Process of Online Fund Transaction:

The process of online fund transfer is easy. When customer request for online

transaction to the general baking officer. In application then customer have to

fill the given below information.

Branch information

Currency information

Sender name

Signature of the sender

Total deposit and date

Senders account number

Beneficiary branch number and address

The CNIC of the client is used when he/she does not have account in

this branch.

In the situation of account holder then cheque number is write in

application.


Online Fund Transfer Application Charges:

On every transaction the charges

The account holder charges

Commission Rs125/-

FED Rs25/-

For non account holder

Commission Rs150/-

FED Rs25/-

0.3% tax is charged in these if transaction amount is greater than Rs25000/-

MCB Cheque:

A cheque is orders a payment of cash from a bank account. Cheque contain

following things.

Branch name

Signature of account holder

Dated

Amount in words and figure.

To whom it can transfer

Different things are important in filling of cheque.

Cutting and overwriting are prohibited

On the cheque backside there must be issuer signature

The signature of customer must be verified from SSC


Off Time Policy Sheet:

Off time policy sheet is used to record the arrival and departure of staff in

bank.

Voucher:

Voucher is used to record the daily transaction of bank. Different voucher are

used like debit voucher, credit voucher for recording of transaction.

Two types of vouchers are used.

Debit voucher

Credit voucher

Cheque Stop Payment:

Cheque stop payment is used to stop the payment of cheque. When cheque

of account holder is stolen or lost etc. When any such case happens then

account holder comes to bank and request the bank to stop the payment.

cheque stop payment consist of following information

Branch information

Account Title

Account number

Date

Amount

Cheque Number

Reason

Request time

Favouring


Direct Deposit Form:

Direct deposit form is used for directly depositing the money into customer’s

account from the foreign country/ abroad.

Direct deposit form consist of following information

Branch Name

Branch code

Branch Address

I.B.A.N.

Beneficiary customer (Account holder Name)

SWIFT code:

1.4.4.2. Summary of 2nd Week:

Account Opening Department:

The opening and closing of account is main activity of account department.

Opening of account is creates the strong relationship between banker and

customer. Bank offered different accounts to the customer for satisfying their

needs.

Individual single/ joint

Limited companies

Firm’s proprietorship or partnership

Charitable institutions

Local bodies

Autonomous Corporation

Education Association institution

Muslim commercial bank commonly opens different types of account

Term account


Saving account

Current account

Required Documents for Salaried Account.

All documents are same just require one more document that is salary slip.

Documents those are necessary for minor account:

The person of less than 18 years is called minor account.The form filling

process of minor account is slight different from normal account.

B form copy.

CNIC copy of guardian

All information of guardian is write in the personal portion of account

opening form

In account title minor word is added Ali Raza minor

Verify the CNIC copy from NADRA verisy

Only guardian is withdraw money from account

Result card copy of minor is also required

When minor is reached at maturity age then minor account is

converted into normal account. Then at the time of conversion of

account different things required like CNIC of minor, then again fill KYC

form.

Required Document for Business Account.

If want to open business account then the part of business related. We fill for

the business account following documents is required.

Business stamp

Business Letter pad

Fill business account part of MCB account opening form

Fill KYC business information


To open of partnership account necessary requirements are

An application from all partners

Company letter head

All partners of CNIC photo copy

Signature specimen attested

Photo copy of registered certificate

After all these important documents then officer dispatch one

requisition slip and two SSC. After attaching documents then

officer verifies signature through signature verified stamp.

KYC and Verisys form is attached with CNIC copy.

At the end separate folder is maintained of customer for bank

recording.

For Employed Person:

Photo copy of CINC card

Copy of salary slip

Initial deposit of Rs1000/-

Employer letter

Photo copy of employer

For Non Employed Person

Photocopy of CNIC

Photo copy of utility bills

Initial deposit of Rs. 1000.

Process of Account Opening:

I learned about the process of account opening in my internship and what

documents are required to open the account. Through the account opening


build relationship between the customer and bank. Now I am going to explain

the steps of opening account.

Filling of Account Opening Form:

If customers want to open account then customer firstly fills the “Account

Opening Form”. It consist of following information like Account type, nature of

account, personal information, account opening of instruction, currency in

which customer want to open account KYC form, currency in which customer

want to open account, specimen signature card and cheque book requisition

.customer service officer attached CNIC copy of customer with form.

Difference in signature from CNIC:

If customers want to change his/her signature from CNIC then customer fills

signature application form. It is application of customer to change the

signature. It consists of account holder name, date, branch information and

CNIC signature and SSC signature. Then officer attach with form. It is not

compulsory.

NADRA Verisys:

Customer service officer verify a specific person’s CNIC from NADRA

Verisys for all types of account.

After Filling of Forms:

All data of customer is entered in to the system. Customer service officer

assigned to that account.

Take print of these sheets

Proof sheet

Letter of thanks


Proof Sheet:

Proof sheet is consist of following information for example date open, account

holder name, account number, currency, account type, account holder name,

ownership type, account number, CNIC number, Address etc. Customer

service officer take two print of proof sheet one copy is saved as bank record

and other is send to the customer.

Letter of Thanks:

Letter of thanks show the thanks form bank to their customer for account

opening. Customer service officer take two print of letter of thanks one copy is

saved as bank record and other is send to the customer. Letter of thanks

consist of account holder name, address, account number, cell number etc.

Stamping:

When account is opened following Stamps are used

On CNIC copies posted a stamp Original CNIC seen and duplicate

attested

Date stamp.

Name cleared from UN/OFF AC List on front side of account

opening form.

Terms and condition read and understand & duplicate AOF

received

On cheque book requisition form and SSC posted Signature

admitted stamp.

MCB around stamp

After enter data in the system then Posted stamp on front page of

MCB AOF.

After stamping the account opening form the latter of thanks and proof sheet

is dispatched with form. Maintain record in account opening register and Dak


dispatched register. Customer service office separate SSC and requisition of

cheque book. After that these documents are move forward to the operational

manager for approving.

Issuance of Cheque Books to Customers:

After reviewing the required documents operational manger issues the

cheques the customer. A cheque book consists of 10, 25, 50 or 100 leaves.

Requisition slip is used for the issuance of the new cheque book.. At the time

of issuance of cheque book officer write the account number and account

holder name. When customers come with letter of thanks, gives to authorized

person. Officer take signature on the cheque book issuing register and pasted

a verify stamp on his signature. Then issued cheque books to the customers.

Bank keep a separate register for maintain Cheque book record and cheque

books issued. Officer make debit voucher to deduct the cheque book charges

from the account of customer.

Closing of Account:

If customer wants to close the account then he/she has to present application

for the closing of account. After submitting of application officer close the

account and pay the balance of account to customer. It is compulsory for

customer to return cheque book to the bank. When he/she return the cheque

book then remaining cheques are canceled. Bank close account in case of

different reason like nil balance, expire CNIC, in active (no transaction from 2

years)

1.4.4.3. Summary of 3rd Week:

Remittance Department:

Remittances are funds transferred from one party to another as payment for

purchased goods or services. Remittance can be domestic remittance and


international remittance. MCB provide the services to the customer and earn

lot of earnings in shape of service charges.

Remittance Types:

Outward Remittance:

If any instrument is issued by our branch in favor of any other branch then it is

outward remittance.

Inward Remittance:

If any instrument is received from originating branch and is liable to pay to

issuing branch is known as inward remittance.

Modes of Payment:

Different way of are used for transferring money.

Pay order

Demand draft

Telegraphic transfer

Pay Order:

Pay order is only pay the branch where pay order is made. Pay order is issue

on the request of the customer. In case of deceased person pay order is

issued to their families for the payment of account balance. MCB also issued

pay order to pay its internal expenses. Pay order is credit voucher used for

payment. Cheques could be dishonored but the pay order cannot dishonor

due its more liquidity. Pay order is only deposit in to the account.


Demand Draft:

DD is like a cheque and issued only on the request of the customer. When

customer is not willing to bring currency with him. Customer come to bank and

request to branch for issuing DD. One branch issued DD and branch of other

bank or other branch of same bank is paid. Demand draft is deposit in to

account. Demand draft is not paid on cash counter. At the time of issuance

bank takes some commission. Demand draft is expired after six months from

the issuance.

Telegraphic Transfer:

Telegraphic transfer is mode of payment in which fund transfer from one place

to another place through cable, telephone. Telegraphic transfer is an inter

bank transaction. It is a direct transfer of fund. Telegraphic transfer is two

types.

Incoming TT

Outgoing TT

Pay Order Issuance Process:

Bank issued pay order that is written order and only deposit to the account.

There are following steps for the issuance of PO:

Firstly Customer fill fund transfer Application form, all necessary

information is filled Like type of remittance, currency of instrument,

beneficiary details, applicant information, applicant signature etc and

MCB deduct 100 charges from the account holder

Operational manger verified cheque through checking account

balance, customer signature.

Then cheque is convey to the general banking officer

General banking officer making entries in the system for the preparing

of pay order and then take printout. Also maintain record in register.


Before delivering PO to the customer branch manager signature on

PO.

Demand Draft Issuance Process:

Account holder must have balance in

account for issuing of DD. Bank deduct

some service charge on issuance of DD.

MCB Jalal pur jattan just issued DD on

cheque, not on cash. There are following

steps for the issuance of DD:

Firstly Customer fills fund transfer

Application form and attaches cross cheque with form, deduct 150

charges from the account holder.

Operational manager verified cheque .

Then cheque is passed to the general banking officer.

General banking officer making entries in to computer for taking print of

DD. Also making entries in clearing register.

DD is legal for six months

Before delivering DD to the customer branch manager signature on

DD.

An advice is prepared and inform

Cancellation of DD:

Account holder firstly write application for the cancellation of DD.DD cannot

cancelled if there is endorsement stamp on the backside of DD, bank charge

200Rs charges for cancellation.

Only issuing bank could cancelled the DD

Debit voucher must be made to deduct cancellation charges

GBO inform to the other bank about DD cancellation


GBO write the cancelled on DD

Fill deposit slip and credit the account

Rupee Traveler Cheque:

RTC is “Rupee Traveler Cheque”. RTC is safe facility of the bank to the

account holder. It have maximum denomination 10000 Rs.OM generally

issued RTC. Account holder must be present at the time of issuance.

Operational manager take signature of owner on RTC. The Rupee traveler

cheque does not present on cash counter

for payment. RTC only deposit to the

account. The major drawback of issuing

RTC is that it can also be deposited or

cashed by anyone other than holder so it

is less secure.

1.4.4.4 Summary of 4th Week:

Clearing Department:

Every bank provides different types of services to its customer. Clearing

department perform the function of clearing for local and intercity cheques

from other bank through NIFT. Customer can deposit cheques of other banks

like NBP, BOP etc and receive money in his account. MCB clear all cheques

from the other banks through clearing house.

Clearing:

Clearing means confirmed or verified of cheque, DD, PO…etc. it is one of the

most important functions of the bank. For performing this function SBP has

authorized a private institution named “NIFT”.


Clearing Types:

Inward Clearing

Outward Clearing

Inward Clearing:

The cheques of MCB are presented in other bank for clearing known as

inward clearing. When another banks sent cheques to Muslim commercial

bank is known as inward clearing for my branch. So the outcome of inward

clearing is outflow of funds or money from my branch. Every branch maintain

clearing account with their head office. Balance of clearing account is

decreased when we done inward clearing.

Outward Clearing:

When cheques of other banks like BOP, NBP etc are presented in MCB it

called Outward clearing. So the result of outward clearing is inflow of money

in our branch. When general banking officer done outward clearing then the

balance of clearing is increased because our branch receive funds from other

banks.

NIFT:

SBP has moved some portion of their work to private institution known as

NIFT. NIFT perform the function of clearing house. Commercial banks clear

their cheques through NIFT. The main task of NIFT to collect all instruments

of various banks for clearing. In instruments cheques , demand draft, pay

order is included. Banks or different branches of bank accept the instruments

that are drawn on them. After clearing NIFT prepare an advice of different

branches for providing clearing results. NIFT give an advice to different

branches.


Inward Clearing Process:

General banking officer generally prepared inward clearing in the morning.

When NIFT gives cheques to the bank the GBO checked all cheques that are

come from other banks for clearing.

1. Firstly GBO done the scrutiny of cheque like check the payee name and

drawer signature, amount must be same in both words and figures.

2. GBO also checked clearing and endorsement stamp on cheques of MCB.

3. If account holder have not enough money in account but he/she signed

cheque. MCB prepare a debit voucher to deduct the 300 charges form

account. Returned cheque with cheque return memo in which the reason is

mentioned. If good customer then officer call to customer and make clear

about the situation. Also maintain record in register.

4. All cheques are forwarded to the operational manager for the verification.

After the verification of cheques GBO make badges in system and debited the

customer’s account.

5. Then put the paid stamp and sign on cheques. GBO maintain all record in

inward clearing register

Inward clearing register following information is recorded.

Date

Account number

Account holder name.

Amount of transaction

Cheque number

Bank name. And also city name.

6. After all process bank inform NIFT all cheques are cleared.


Outward Clearing Process:

1. The first task of outward clearing is assembling cheques of other banks.

The time of NIFT to take outward clearing of the branch is 2:00 pm and inform

about clearing on 4:00pm.

2. Maintain outward clearing record in the register is second task of clearing.

Officer writes some necessary information.

Depositor name

Serial number

Date

Bank name

Cheque number

Cheque amount.

How to proceed?

3. After manual work different stamps are used.

MCB cross stamp is used on deposit slip and cheque. Crossing stamp

show the owner ship of bank on cheque.

Clearing stamp of next date.

Endorsement stamp on backside of the cheque.

4. Officer split deposit slips form cheques. Then take sum of all cheque

amount write the whole amount on bundle cover. Different heads of bundle

cover.

Information of branch.

Total Amount

Quantity of Instrument

Authorized officer signature.

5. Ad list is linking with bundle cover and cheques. On ad list write all number

of instrument and amount. Local clearing bundle cover of peach color is


used. In case of return of cheque shocking pink is used. No charges are

applied on local clearing and handover to NIFT.

Advice of NIFT:

NIFT prepared an advice for every branch and sent to bank for reporting

about clearing. Through Advice bank is able to about Clearing is favorable or

against the bank.

Intercity Clearing:

Intercity clearing is used for large cities of Pakistan i.e. Lahore, Peshawar,

Karachi or Islamabad etc. The record is maintained in intercity register

manually for proof and separate intercity stamp is also used for this type of

clearing. These cheques are posted to the main branch in a particular bad

that is provided through NIFT and cheques are cleared in three days. Muslim

Commercial Bank considered the intercity clearing that away from Gujranwala

region. In this type of clearing cheques are collected from other banks that are

away from Gujranwala region. Intercity clearing used the bundle cover of light

green color and cheques are returned in bundle cover of green color. After the

clearance of cheques, MCB deducted charges of 290 from the account of

customer and made a debit voucher for deducting these charges.

1.4.4.5. Summary of 5th Week

ATM Service:

ATM service provides flexibility and convenience to customers. If account

holder want to issued card then MCB offer ATM facility to its customer

Firstly customer fill MCB ATM “24-HOUR CASH CARD” application

form where the general information about the customer like account

holder name, account number, card type etc.


Officer checks all information and scan the ATM form and send to the

Head office.

Head office sends ATM cards to their customer on particular address.

Pin code is held by customer

Through this pin code customer can activate the card.

It is compulsory for the customer to use the new card in banking

hours.

The charges of locker are deducted from the account on the annual

basis.

Charges of ATM card:

Issuing charges of locker is Rs. 250/-

Annual fee is Rs 250/-

Locker Facility:

MCB provide its customer of locker facility. Customer avail the locker facility

for keeps their necessary documents, gold, silver and some other things.

MCB offers different size of locker like small, medium, and large. The locker

charges are deducted on annual basis and vary on size of locker. The locker

will be operate singly, jointly, either or survivor. Every locker has operate by

two keys one is master key and other is customer key.

Different necessary information about locker facility.

Only account holder can open locker in the bank.

Then customer will fill “Locker Application Form” consist of different

information like account holder name, locker type, account holder

number, address, deposit key etc.

Officer checked and signed on locker application form.

Locker may be opened by singly, jointly and either or survivor.

Officer takes customer ID copy and give to the customer.


Officer has to keep master key of locker. For operating locker

master key is required every time.

Bank deducts charges from the account on the annual basis.

Locker Operating Process:

When customer need to use the locker then officer ask locker number.

Officer take takes the signature of customer on locker attendance

register. Officer match with the SSC card signature.

2 keys are necessary to open locker firstly officer use master key. Then

customer opens the locker with its key (customer key).

Locker holder only operates the locker.

Customer can operate locker twice in a day.

Closing Process of Locker:

When customer want to close locker then write application of closing and give

to the operational manager. After receiving of application operational

manager take locker key and ID card copy from locker holder then return

security fee to customer. Operational manager presence is necessary during

time of empty locker.

1.4.4.6. Summary of 6th Week

Cash Department:

Cash department is major department of the bank. In this department officer

deal with receipts and payment of cash and collection of utility bills etc. In

cash department we maintain different books.

Cash balance book

Cash receiving book

Scroll book

Cash receiving book


Cash department performs the following functions

Receipt

Payments

Collection of utility Bills

Saving Cash

Sorting of notes

Receipt:

Teller officer received cash from customer through deposit slip. Teller officer

ensure filled information is correct and check the name of account holder,

date, account number, notes and coins denomination. Teller officer also make

sure deposit slip only signed by person who depositing cash in account. Teller

officer cautiously count all cash and pasted the stamp of Cash Received and

sign on it. At the end cashier credit the customer account with the depositing

amount. Maintain manual record of all receipts of the day in cash receiving

register.

Payments:

If any customers want to withdraw money from account then he/she fills the

cheque and presented at the cash counter for the payment of cash.

When cheque is presented at the cash counter then teller officer verify the

cheque through checking all the necessary information.

Cheque date

Cheque number

Amount in figure and words are same

Customer name and signature.

Its operational manager verified all cheque and verifies the different the

different things like customer balance is checked, verified the customer


signature and putting the signature verified stamp. After the all checking then

teller officer puts the Cash Paid stamp on it and pay cash to customer.

Collection of Utility Bills:

MCB has done the collection of utility bills on corporations’ behalf like WAPDA

PTCL and SGC. Teller officer put the stamp of “Cash Received” on bills and

also sign on it. After taking of bills from person a sheet is make on form for

the record of all utility bills is called bills scroll form. In scroll form complete

information of all utility bills collections and total number of bills, bills reference

number, bills amounts, bills date and mode of payment etc. we take two prints

of scroll form. Along with receipts of bills the original copy of utility bills send to

the specific companies. The remaining copy of bills scroll form is saved for

bank record. Bank takes commission on the collection of bills. I arrange the all

bills and calculate their amount and matched with the full amount of bills scroll

form. Companies have maintained account in bank. Teller officer credited

these accounts by whole amount. All information is recorded in scroll book.

Saving Cash:

Checking all the physically cash in the afternoon before put the cash into

safe. All cash and necessary documents i.e cash balance book kept in the

bank safe.

Sorting of Notes:

Notes will b sorted on the basis of torn, good, mutilated, soild etc. Cashier sort

the all notes. Defective and soiled notes must be kept separately and apart

from the goods notes.

Cash Balance Book:

It’s the responsibility of the teller to retain the balance of the cash book at the

last. The cash book consist of following information like date, notes


denomination, opening balance, received cash and paid cash information,

closing balance etc. Manger checks the cash balance book. After adding the

receipt and cash payments then officer find closing balance.

Closing balance = opening cash balance + receipts – payments of whole day

Opening balance of today will be the balance which we had closed yesterday.

At the ends of the day manager view balance of cash book and other books

of cash department.

1.4.5. TASKS ASSIGNED TO ME:

In my internship period at Muslim commercial bank jalal pur jattan, Different

task assigned to me are such as

Issuance of Deposit Slips to Customers:

Deposit slip is used when customers want to deposit amount in his account. I

issued deposit slips when the customers required. I take cheques from

customer and then issued deposit slips to them.

Opening of Account:

Customer service officer taught me various accounts of the bank. During my

internship program the task was assigned to me was to open the accounts. I

was also opened different accounts with the help of my supervisor.

Making Entries in Account Opening Register:

After opening the account I maintain record in Account Opening Register. I

record the following things.

Name of Account holder

Account number

Initial deposit

Occupation


Date

Then maintain record in “Dak Dispatched Register General”.

Serial number

Name of Account Holder

Account number

Date

Subject: letter of Thanks

Off Time Policy Sheet:

Customer service officer gave off time policy sheet for record the arrival and

departure of staff in bank.

Trunk Call Log Register:

Trunk call log register used to record the all bills of telephone of the bank on

the end of month. I also keep the record of all telephone calls.

Filled Online Fund Transfer Application:

During my internship period officer assign the task to me filled the online fund

transfer. Online fund transfer is used to transfer money one place to another. I

was filled online transfer form on the behalf of customer.

Worked as CSO:

During my internship period I working like CSO and perform different

activities. I was attending phone calls and provided general information to

customers about different accounts and guide customers how to fill the

deposit slip, how to open account, how to fill account opening form etc. I

called customer to inform to collect ATM cards from bank.


Maintain the Record in Daily Call Report Register:

It’s the responsibility of branch manager to increase the accounts and

deposits through different ways. Branch manager has identify five person on

every day. During my internship I was maintain the record in daily call report

register. In this register different information are written

Name of client

Client Address

Business nature

Visiting Date

Timing of visit

Estimated initial deposit

Preparing Vouchers:

I learned about different types of vouchers that are used for different

purposes. I made different voucher daily. I made debit voucher for deducting

the charges of cheque books, petty expenses and maintenances services etc.

Issued ATM Cards To Customers:

During my internship another responsibility is given to me to issued ATM

cards to new customers as well as existing customer. I also maintain all

record of ATM cards in “ATM card register”. In this register I record the

following information

Account holder name

Account number

Mobile number

ATM card number

Date

Serial number

Customer signature


Manager signature

Collection of Utility Bills:

MCB has done the collection of utility bills on companies’ behalf like WAPDA

PTCL, SGC. Teller officer put the stamp of “Cash Received” on bills and also

sign on it. After taking of bills from person a sheet is make on form for the

record of all utility bills is called bills scroll form. In scroll form complete

information of all utility bills collections and total number of bills, bills reference

number, bills amounts, bills date and mode of payment etc. we take two prints

of scroll form. Along with receipts of bills the original copy of utility bills send to

the specific companies. The remaining copy of bills scroll form is saved for

bank record. Bank takes commission on the collection of bills. I arrange the all

bills and calculate their amount and matched with the full amount of bills scroll

form. Companies have maintained account in bank. Teller officer credited

these accounts by whole amount.

Issuance of Cheque Books to Customers:

Cheque book is used for withdrawal from of the account. When customer take

first cheque book from bank then customer have to show essential documents

are required by bank. After I issued cheque books to the customers. At the

time of issuing I write the name of account holder and account on cheque

books. Along with letter of thanks when customers come with letter of thanks,

I get customer signature in cheque book issuing register. At then my I take

signature on the cheque book issuing register and my supervisor check it then

I give cheque books to customer..

Maintain Record of Cheque Books:

Firstly I maintain the all record of cheque books in “cheque book issuing

register”. I record following things


Serial number

Account number

Account title

Number of leaves

Date

At the time of cheque book issuance take signature of customer.

Account holder signature

Operational manger signature

Making Entries in Clearing Register:

The main task was assigned to me during my internship to prepare the

clearing and maintain clearing record in inward and outward clearing

registers. It is necessary to write the subsequent information in the register of

outward clearing.

Depositor name

Account number

Account title


Date

Cheque number

How to proceed?( NIFT)

Name of the bank on whom drawn

I also prepared the intercity clearing. I keep the record of intercity clearing in

intercity clearing register. I record following information

Name of the favoring party

Account number

Account title


Cheque number


How to proceed?( NIFT)

Name of the bank on whom drawn

Name of city

Maintain the Record in Return Cheque Register:

I returned few cheques on the base of different reason like amount in words

and figures differ, account close and cheque incomplete. I attach return memo

with cheque and record the entries in the return cheque register. I record

following information in the register.

Account number

Account title

Date of return cheque

Returned by bank

Amount

Cheque number

Date of cheque

Customer account number

Presented through (NIFT)

1.4.6. SUMMARY OF LEARNING:

1.4.6.2. What skills and qualification you think that you have gained from

the internship?


completion of our BBA degree. All students have done internship of six weeks

in bank or other organization for gaining the practical exposure. Working with

this familiar and well repute bank was a source of great learning for me.

Internship is not only giving me experience but also enhance my knowledge,

abilities and create clarity in my practical life.


Firstly I have observed in my practical field that no one bothers to teach me.

But with the passage of time when I have adopted the environment, I got

opportunity to learn more and more. The internship is very helpful for future

career. I want to perform my duties with great potentials. I fulfill the task with

great efforts within given time spam.

I learned different skills that will be beneficial for me in my life. There are the

skills

My confidence level was boost up.

My communication skills have been polished through dealing with

customers.

Develop my abilities how to deal with the customers

Build up my leadership skills

I learned how to know behave well in various conditions.

My confidence level has been raised.

It helped to make me punctual and taught me how to manage it.

It forced me think critically in complicated situations and take action

accordingly.

I learned how to treat uneducated people and guide them in their way.

Helped how to work in team.

Improved my decision making ability.

Learn how to manage work load.

Created flexibility in me while working with others.

Respect the all staff as well as customer and treat in good way

These six weeks of internship create confidence and improve manner

to work in practical environment.

After completing the internship I acquire good work habits

1.4.6.2. What kind of responsibilities you have undertaken during

internship period?

In my internship period I have worked in varicose departments i.e. remittance

and cash department etc. During my internship different responsibilities was


assigned to me whom I have fulfilled with great spirit and help of my

supervisor. These are the following responsibilities

I was filled deposit slips, Filled online fund transfer application and

voucher

I learned about how to open a account

Making Entries in Account Opening Register

Worked as CSO officer and deal with customer. Also attend phone

calls and guide customer. A duty was assigned to me to call the

customers to take their ATM cards and cheque books from the bank

I was also worked as clearing officer and Prepared clearing and

maintain record in clearing register.

During my internship my duty is to issue cheque books and ATM

cards to the account holder.

I enhanced my knowledge through working in all these

departments.

It’s my responsibility to filled Trunk call log register. In which record

of all telephone bills.

During my internship I was also maintain the record of Off time

policy sheet

I was also assigned by an interesting task is to collection of utility

bills.

I was also Maintain the record in daily call report register.

I was also received cheques and issued deposit slips to the

customers

I was calculated the amount of utility bills and matched amount with

scroll book balance.

According to my observation. For an organization to working in

organized manners, rules and regulation are necessary.


1.4.6.3. How do you think the internship will influence your future career

plans?

Internship is very important for our future career plans. It provides favorable

circumstances for experiments and also follows line of business that contest

the personal and learning concentration. Proper planning regarding our career

is extremely complex because a lot of difficulties exist for evaluating the

prospective opportunity of the business environment. It is very difficult for

students to select the appropriate position of their own job because they have

limited knowledge and experience about the working background of various

jobs and it is very complicated for accomplishing the best profession.

Internship opportunity gives a lot of things for our professional life that are

selecting the best suitable job according to their need and illustrates the

utmost potential for efficient working, and at last exploits the information and

skills proficiently. Internship has strong impact on internship. Internship is also

a first step to start professional career for everyone.

1.4.6.4. How do you think the internship activities that you carried out

are correlated with your classroom knowledge?

At the end of internship I think internship activities are connected to the class

room knowledge. In earlier semesters I studied different subjects like money

and banking, accounting which are very helpful to perform the activities of

bank. I have tried to implement those theories in to practical work which I

have learnt from university. I learn the basic concept of debit and credit in

accounting subject. It’s very helpful for me in internship. I learned about

different debit and credit vouchers used in banks during my internship. For

understanding the logic of credit and debit financial accounting provides base

and helps a lot in better understanding of these things. Money and Banking

which I have studied in fifth semester describes the whole banking operations

and the instruments used there. In this subject I studied the things in bank

then I find it easy to adopt the concept. This subject provided the theoretical


understanding of banks and its practical implementation I saw in banks. Due

to studying the topics like cheque, account opening, demand draft, pay order,

account opening process and what documents are necessary for account

opening etc in this subject I found it very easy to understand them in bank.

During lectures teachers give different banks example. At the end I can class

room knowledge is strongly relates with practical life.

2. CONCLUSION OF THE REPORT:

2.1. SUMMARY OF KEY CONCLUSION:

MCB Bank has been providing good quality services to its customer and

citizen of Pakistan since sixty five years. The performance of MCB is very well

and persistent its growth in all main sector. The success story of MCB is

based on management capability, constants efforts of MCB staff, excellent

team spirit and its director’s efforts. MCB introducing a number of innovative

banking products and services to their customers. During my internship I

observed some customers are not satisfied and have faced some problem like

cash shortage. Customers are waiting for cash but cash is not available.

Customers are moved to other banks due the like BOP, NBP etc. I was

observed that many employees are wanted to switch due to too much burden

of work on them.

So, I find out that MCB is very successful in the banking industry. The overall

performance of MCB is good but I think that if MCB follow the following

recommendations then MCB is become more favorite bank of the customers

and they prefer this bank for their deposits.

2.2. GENERAL OBSERVATION ABOUT SECTOR:

By doing internship in bank I got insight picture of the banking sector. By this

experience I have got to know that in last few years this sector has faced

many problems due to ups and down in economy of the country. But now this


sector has sustained its position and again contributing in the development of

country. Economy’s success and development heavily depends on the

business and this sector shares a major part of business in Pakistan. The

sector is contributing much in the progress of economy. This sector facilitates

every kind of person in the community whether it is a young person, an old

man of the society, an industry or government. The sector has provided them

with different kind of facilities. It has created so much ease for the people to

fulfill their daily or business needs. I also observed that this sector has much

importance for time. Every task is performed in allotted time. Every employee

has to be punctual in bank and. In short, time management is a key factor in

this sector.

I also observed that this sector is still facing some problems regarding its

operations but it can remove these hurdles by refining its strategies and

efficiently implementing them. I have given some recommendations for bank

so that it can remove the problems it is facing and can lead towards success.

This sector has much chances of progress and has a prosperous future

ahead.

2.3. SWOT ANALYSIS’S:

Strengths:

MCB bank has acquired skilled and high qualified staff.

MCB bank has maintained a good reputation in banking industry.

MCB bank has strict policy to meet the requirements of state bank of

Pakistan.

The main focus of MCB bank customer and customization.

MCB bank has innovative and attractive products to their customers.

Offer its customer safe and secure investment venture.

MCB bank provides modernized banking to its customers.

The bank invested in different activities where they earn great output

and use this output for further growth of bank.


Now in MCB offering mobile banking for their customer’s satisfaction.

MCB also offers mobile banking for the satisfaction of customers.

Now MCB bank has largest ATM network in Pakistan.

The customers prefer this bank due its reasonable service charges.

MCB bank builds strong customer relationship.

MCB is very efficient utilization of asset.

Weakness:

Employees are not satisfied with their job because too much burden on

it to fulfill the requirement of SBP and another reason is less pay.

Many people are not well aware of its products for example RTC due

to lack of advertisement.

ATM network problem

Employees want to switch because there is no promotion chances

The great number of customer is uneducated

In rural areas no mobile service.

Time is not properly managed. Office timing is 5:00pm but staff is busy

till 7:00 pm due to much burden.

Conflict between senior managers and junior staff.

In MCB majority of the employees are youngsters due to this reason

they search for the best opportunity and also avail it.

Opportunities:

Bank provides the leasing facility to their customer.

MCB provide the facility of personalize financing.

MCB can open new branches in foreign country or merge with other

foreign banks all over the world.

MCB has a very broad network of ATM so it has the opportunity to

provide more cash facility to customer.


MCB has recently offered nee products lines to customers, one is cash

card and other is mala maal in future.

Bank focus on import and export of the country.

MCB has flexible structure to meet the changing needs of customer,

this increase the chances of growth for bank.

MCB achieve greater profitability through strong internal control.

MCB provide the Islamic products to the customers.

Threats:

Deposit rates are increasing day by day.

Customer expectations are increasing day by day.

Foreign bank are offering attractive and specialized products

Number of Foreign banks is increasing in Pakistan.

Economic growth of Pakistan is decreasing.

Other domestic bank offer innovative or specialized services to the

customer.

Political instability in Pakistan is one of biggest threat for MCB.

3. RECOMMENDATIONS:

The performance of MCB is judged through its financial statements which

show the actual position of the bank. MCB deposits and profitability are rising.

Following are various recommendations for the better performance of bank.

MCB should provide different incentives and benefits to the employees

they do not quite the job.

MCB should more advertise its product then people are aware about

the new products.

All banking field should treat its all customer equally.

The recruitment of employees should be on merit basis.


MCB should focus on IT department. There are proper management of

computer software’s.

MCB should maintain proper management of time for its employees.

The bank should provide effective training to the new employees as

well as existing employees.

Working setting, equipment, furniture and employees dressing should

be matched with advance banking style.

Special reward should be given to the branch on the completion of

tasks assigned by the head office.

Bank should have extra staff for managing the burden of current

employees.


4. REFERENCES:

Annual Report 2011 “Muslim Commercial Bank”

Annual Report 2010 “Muslim Commercial Bank”

Muslim Commercial Bank

http://www.mcb.com.pk/

http://www.mcb.com.pk/psc/personal/default.asp

http://www.mcb.com.pk/virtual_banking/default.asp?vb=find

http://www.mcb.com.pk/psc/corporate/

Manuals:

MCB Jalal Pur Jattan Branch manual record keeping register.

http://www.mcb.com.pk/psc/personal/default.asp

http://www.mcb.com.pk/virtual_banking/default.asp?vb=find

http://www.mcb.com.pk/psc/corporate/


5. APPENDIX:


Abbreviations:

AOF: Account Opening Form

UN/OFF: United Nation / Office of Foreign Asset Control

SSC: Specimen Signature Card

FED: Federal Excise Duty

RTC: Rupee Travelers cheque

I.B.A.N: Inter Branch Account Number

GBO: General banking officer

CSO: Customer Service Officer

NIFT: National institutional Facilitation Technologies

SBP: State Bank of Pakistan

PO: Pay Order

DD: Demand Draft

SWIFT: Society for Worldwide Interbank Financial Telecommunication

zunaira mcb report.pdf

Documents

business volume

business administration

business segments

retail banking

corporate banking

virtual banking

islamic banking

final report