Executive Summary: Internship Report On Muslim Commercial Bank, Gondal Branch Attock

Internship Report on Muslim Commercial Bank, Gondal Branch Attock
EXECUTIVE SUMMARY
By the grace of almighty God, I have successfully completed my

6 weeks internship as per requirement of MBA course. I was appointed at
Muslim Commercial Bank Ltd Gondal Branch Distt. Attock.. I feel my self lucky
to have worked with such a cooperative, dedicated, result oriented team. They
all helped me in every possible way they can. I was happened to work with all
three departments i.e. Computer Department, Cash Department, & Accounts
Department.
In Computer Department I worked with the Computer
operator. I was assigned to the issuance of token and entering the token
number and cheque number of customers on the registers and was also
happened to watch and operate the computer software LINUX that how they
debit and credit the amount of account holders; there I was happened to meet
with the people of different business areas. In Cash Department I was
happened to work with cashier, who was basically responsible for the
withdrawal and deposit of cash from the customers and also entering the
amount deposited or withdrawn from the bank in the Bank’s transfer sheets
and at the end of the day the entering of the total cash that the bank has in
the Cash books. I also learned from the cashier how to check the fake
currency notes and that was an interesting work. In the Accounts department I
worked with the accountant for the preparation of Demand Drafts, Telegraphic
transfer, Issuance of Rupee Travelers Cheques, Preparation of Debit and
Credit vouchers, Demand Drafts of Different Oil companies Like Shell and
PSO, I was also introduced with the preparation of transfer sheets and utility
bills scroll sheets. There I also happened to work in place of accountant when
he was on the leave for two days and the Bank Manager was very satisfactory
with my work.
At the end I would conclude that the internship had helped me a
lot in different areas of banking and other concern areas of my study. I also
learned how to work in tough situations which would help me in a long way.
And it wouldn’t be possible without the assistance of the team with whom I
had spent 6 weeks.
Comsats Institute of Information Technology, Attock 1

Chapter # 1
Introduction to Report &

Organization

Background to Study
Internship training program during Master in Business administration
program is necessary for the partial fulfillment of the completion of Degree of
Master in Business Administration. It is offered in spring semester in Comsats
Institute of Information Technology, Attock. I am also a student of M.BA-IV
(Spring) that’s why it is necessary for me to complete an internship session of
about 6 weeks in some manufacturing or service industry relevant to my area
of interest and specialization.
Purpose of Study:
The purpose of this study is to explore the functions, operations and
services of Muslim Commercial Bank by taking Gondal branch Distt. Attock as
a model. The readers of this report will quickly understand the way MCB
Branch works and through this concise report they might get the full-fledged
idea of working of banking industry of Pakistan.
Scope of study:
This study will facilitate the students regarding the working of Banking
sector of Pakistan because most of the teachers during their lectures use the
examples of Banks like Muslim Commercial Bank, National Bank, UBL, Bank
Alfalah and many others, students should study this report so that they must
grasp the functioning of such Banks.
Methodology of study:
There are mainly two methods that are used for the collection of data.
Primary Data:
 Interviews from my immediate supervisor and management personnel
such as managers and different officers in the branch.
 Observation of functions of Branch operations on the spot.
 Observation of different processes of Branch on the spot.

Secondary Data:
 Copies of the reports of Bank operations such as computerized
statements which includes different type of records about the
customers and the bank.
 Internet is also very helpful for me to study more about banking sector
of Pakistan.
 Different type of booklets of the Bank.
 Registers of the Bank.

Chapter # 2
Introduction To Banking

BANK:
The word bank is said to have derived from the Italian word
‘Bancus’ or ‘Banque’. The History of banking is traced to as early year 2000
B.C. The priests in Greece used to keep money and valuable of the people in
the templates. These priests thus acted as financial agents. The origin of
banking is also treated to early goldsmith.
In order to regulate the banking organization a conference was

held in 1548 in Nuremberg. It was decided that a bank should be set up by the
state, which should streamline the banking organization and techniques. The
first central bank was found in Geneva in 1578. The Bank of England was
established in 1694.
DEFINITION OF BANK
1. Banking Companies Ordinance 1962

“Banker means a person transacting the business of accepting
for the purpose of lending or investment of deposits and withdraw able by
cheques, drafts or otherwise and includes any post office saving banks.”
2. Prof. Dr. Harts

“A banker is one of the ordinary course of his business receives
money which he repays by honoring cheques of persons from whom or on
whose accounts he received it”.
3. Prof. 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 lender. He
borrows from one party and lends to the other party”.
FUNCTIONS OF THE COMMERCIAL BANKS
 The banking business as we know it today is compared of three

separate and distinct principal functions.
 The acquiring of funds to invest and loan.

 The investing of such funds in loans and bonds.

 The searching of such funds, such as providing of checking saving
facilities and the collection of drafts notes and cheques.
 These functions while differing in detail of operations follow the same
principles established hundreds of years ago by moneylenders and
exchangers.
TYPES OF BANKS
Today the principal banking and financial available to serve

commercial are provided, and made available to them through following types
of banks.
 Commercial banks
 Trust companies
 Saving banks
 Saving and loans associations
 Finance companies
 Scheduled and non scheduled banks
 Industrial development bank
BANKING IN PAKISTAN
HISTORY OF BANKING IN PAKISTAN:
At the time of independence, commercial banking facilities were

provided fairly well here. There were 487 offices of schedule banks in the
territories now constituting Pakistan. An Expert committee was appointed. The
committee recommended that the reserves bank of India should continue their
function in Pakistan until 30th September. 1948, and Pakistan would take over
the management of public debt and exchange control from reserve bank of
India on April 1948 and that Indian notes would continue to be legal tender in
Pakistan until 30th September 1948. Moreover the banks including those
having their registered office in Pakistan transferred them to India in order to
bring a collapse of a new state. By 30th June 1948 the number of the offices of

scheduled banks in Pakistan declined from 487 to only 195.In order to make
necessary arrangement for the assumption of control and expert committee
was appointed to recommend necessary steps, including the required
legislation to establish a central bank for Pakistan. The governor-general of
Pakistan Quaid-i-Azam Muhammad Ali Jinnah inaugurated the State Bank of
Pakistan order was promulgated on May 12, 1948. The first Pakistani notes
were issued in October 1948 in the State Bank of Pakistan withdrew the
reserves Bank of India notes of the value of Rs. 125.02 crores with the help
the Pakistan notes.
COMMERCIAL BANKING IN PAKISTAN:
Commercial banking in Pakistan are companies “Which transact the

business according to provision of the banking companies ordinance 1962
section 5(b) which says “Banking” means the accepting for the purpose of
lending investment of deposits of money from the public repayable on
demand or otherwise and withdraw able by cheques drafts order or
otherwise”.
Commercial banks in Pakistan have been authorized to engage
in any one or more of the following forms of business in according with section
7 of the following forms of the banking companies’ act 1965.
 The borrowing raising or making up of money the lending or advancing

of money either upon or without security the drawing making, accepting
discounting, buying, selling, collecting and dealing in bills of exchange,
houndies, promissory notes, coupons, drafts, scripts, and other
instruments and securities whether transferable or negotiable or not:
the granting and issuing of letter of credits; traveler’s cheques and
circular notes; the buying selling of foreign exchange including foreign
Bank notes; the purchasing and selling of bonds the providing of safe
deposits vaults; the collecting and transmitting of money securities.
 Acting as agent for any government or local authorities or any other
person or persons; the carrying on of agency business of any
description including the clearing and forwarding of goods, giving of

receipt and discharges, and otherwise acting as an attorney on behalf

of customers, but excluding the business of a managing for public and
private loans negotiating and issuing the same.
 The effecting, insuring, guaranteeing, underwriting, participating in
managing and carrying out of any issue, public or private, government
or municipal or other loans or shares, stock or debenture of any
company, corporation or association and the lending of money for the
purpose of any such issue.
 Carrying on and transacting every kind of guarantee and indemnity
business.
 Managing, selling, and realizing any property or any right, title or
interesting in any such property which may from the security for any
such security.
 Undertaking and executing trust.
 Undertaking the administration of estates as executive trustee or
otherwise.
 Establishing and supporting or siding in the establishment a support of
association.
 Acquiring and holding general dealing.
 Any other forms of business, which the central government may, by
notification in the official gazette specify as a form of business in which
it is lawful for banking company to engage.
It means that the above-mentioned services of the present’s day can be

categorized as under:
 Agency services
 General utilities services.
 Collaborating of loans raised by the government or public bodies and
trading by corporation.
 Commercial banks constituted the most important source of
institutional credit in the economy of Pakistan.

Chapter # 3
Introduction to MCB

HISTORY OF MUSLIM COMMERCIAL BANK LIMITED:
Muslim commercial Bank (MCB) is not an overnight success. It

started corporate life in Calcutta on July 9, 1947. After the partition of the indo-
Pak sub continent the Bank moved to Dacca (the capital of former East
Pakistan) from where it commenced business in august 1948. In 1956 the
Bank transferred its registered office to Karachi where the head office is
presently located. Thus, the Bank inherits a 50-year legacy to trust in its
customer and the citizens of Pakistan.
NATIOINALIZATION:
In January 1974, the government of Pakistan nationalized MCB

following the banks (Nationalization) Act 1974, subsequently, in June 1974,
Premier Bank limited merged with MCB.
PRIVATIZATION:
A wave of economic reforms swept Pakistan in the late 1990’s

introducing the need for privatization of state owned banks and companies in
April 1991, MCB because Pakistan’s first privatized Bank, the government of
Pakistan transferred the management of the Bank to a national group – group
of leading industrialists of the country by selling 26% shares of the Bank. With
a view to broaden equity holding the government sold 25% of the paid up
capital to the general public.
In terms of agreement between the government of Pakistan and
the national group additional 24% shares have been purchased by the group
making their holding 50%. 25% was retained by the government.
Now it is fully privatized.
Vision Statement
Challenging and Changing the Way you Bank.

Mission Statement
MCB Bank’s team of committed professionals is dedicated to
maintaining long term customer relationships through outstanding service and
convenience.
CORE VALUES
Trust
We are the trustees of public funds and serve with integrity &
commitment. Ethical behavior is of critical importance to us. We adopt full
compliance with internal and external policies and procedures, operating
within the legal framework
Customer Focus
We continuously seek to exceed our customer’s expectations, forging
and maintaining long term relationships
Innovation
We strive to be the market leaders in innovative products and services
offering customized financial solutions with flawless execution
Teamwork
The diversity of our people is our strength. We inspire and challenge

each other – working together to achieve synergy
Achievement
Our people are our most valuable asset. We are committed to a result
oriented culture. Our goals are clear and merit is the only criterion for reward

Social Responsibility
As responsible citizens we contribute to the social welfare of the

community we live in
SWOT Analysis
Strengths
 MCB is in its over 50 years of operation. It has a network of over 1,200
branches all over the country with business establishments in
Bangladesh, Sri Lanka and Bahrain. The branch break-up province
wise is Punjab (57%), Sindh (21%), NWFP (19%) and Baluchistan
(3%) respectively.
 Being the senior bank in Pakistan it is highly recognized all over
Pakistan and it is very well known among its customers
 MCB has a huge amount of Branches all over Pakistan where other
banks still can not be able to provide their services and that is a huge
bonus point for the bank
 The bank has huge amount of assets
 The bank is involved in different investing activities where there is a
huge amount of output available for the bank that bank can use for its
growth
 MCB has a very senior and dedicated work force as well as young and
creative staff which is a very big asset for the bank.
 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.
 Eight 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.

 MCB looks with confidence at year 2001 and beyond, making strides
towards fulfillment of its mission, "to become the preferred provider of
quality financial services in the country with profitability and
responsibility and to be the best place to work".
Weaknesses
With the strengths the Bank has also some weaknesses which are as
under
 Though Muslim Commercial Bank installed computer yet the system
has not totally shifted on computer. Manual procedure is still there
hence computer facility is not fully availed. It should be fully availed and
system should be fully computerized.
 A lot of productive time is wasted by the staff in unproductive pursuits
and tea and lunch breaks are got voluntarily extended and the time
spent in corridors, courtyards, depends on the staff will. This tendency
of late must be eliminated which reflect adversely on the image of the
institution and has posed a serious problem.
 It should not be like that a person who may be a very good worker but
possessing lack of managerial capabilities should be posted as
manager. But as second place in command or some heavy working
department wished persons together with managerial qualities and
manners in the same fashion should be posted and placed as
manager.
 People have to wait for re-cashing their cheques for about 10 to 12
minutes, which is not good for the reputation of bank.
 It is human nature one goes behind reward and incentives while and try
to avoid from punishment. Likewise in commercial institution like bank
this system be introduced with full force means active smart, educated
skilled, self spoken and well versed staff personal, should be reward
and appreciates, while on the other hand lazy, lethargic, heard, rough
dealers and ill mannered must be warned penalized and punishes
Opportunities

The bank has a lot of opportunities which includes

 Since the Bank has an extensive networks of branches so if the bank
can be able to computerize all of its branches then it can be able to
capture the market more efficiently
 The bank has already a huge amount of customers by providing better
and better services to their existing customers, but word of mouth can
also be helpful in increasing the number of customers to have a
competitive advantage over its growing number of competitors.
 Since the Bank is earning a lot of profit per annum so by increasing the
employee’s salaries and providing incentives the Bank can produce
more loyal employees that can increase the productivity.
THREATS
 With opportunities the Bank has also some threats which includes
 Due to increasing number of foreign banks in Pakistan which offer a
very attractive package for their employees the very key employees of
the bank are more likely to resign which is a very major threat.
 Not all branches are computerized neither providing ATM services and
no online banking and the customers demand for these services is
increasing day by day so Bank should computerize all its branches.
 At some places, the Muslim Commercial Bank Limited is over-
employed. which is causing over expenditure

Chapter # 4
Products & Services

MUSLIM COMMERCIAL BANK-CREATING VALUE
The world has entered a new era. So has banking. The modern
customers want excellent services and newer cost effective products at his
fingertips. With a mission to meet customer’s expectations and a vision to be
preferred provider of financial services, MUSLIM COMMERCIAL BANK has
come a long way. And with the same enthusiasm keeps achieving goal after
goal, aim after aim.
Do you require a savings account with attractive returns or investment

products that give you monthly profits?
How about 24-hour cash access in major cities of Pakistan or safe payment
products for your high value transactions?
Or maybe you need a convenient payment instrument that has the highest
acceptance around the world.
MCB provides you a choice of products and accounts that suit your lifestyle
and your needs.
Our products are designed to cater to all your financial needs:

Convenient 24 hour banking services through the largest ATM network in
Pakistan and global acceptance via partnership with MasterCard International.
Buy MCB Pak Rupee Travelers Cheques the safest way to carry cash for
high value cash transactions.

PRODUCTS & SERVICES
The Corporate Bank offers a whole range of banking products/services

that can be broadly divided into the following categories:
Demand Draft
If you are looking for a safe, speedy and reliable way to transfer
money, you can now purchase MCB’s Demand Drafts at very reasonable
rates. Any person whether an account holder of the bank or not, can purchase
a Demand Draft from a bank branch.
MCB Rupees Travelers Cheques
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 Travelers
Cheques. Any body can purchase them. It is 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.
The bank charge Rs. 50 per traveler cheque, Govt. tax is 01%.
Working Capital Loans
Based on the customer’s specific needs, the Corporate Bank offers a

number of different working capital financing facilities including Running
Finance, Cash Finance, Export Refinance- Pre-shipment and Post- shipment
etc. Tailor- made solutions are developed keeping in view the unique
requirements of your business.

Term Loans
We offer Short to Medium Term Finance to meet capital expenditure

and short-term working capital requirements of your customers. The loans are
structured on the basis of underlying project characteristics and cash flows of
the business.
Trade Finance Services
The Corporate Bank offers trade finance services that include an entire
range of import and export activities including issuing Letters of Credit (L/Cs),
purchasing export documents, providing guarantees and other support
services.
Cash Management
Our network of about 1200 branches in Pakistan enables us to collect

and disburse Payments efficiently with our cash management services. This
also enables us to offer you a choice of paper based or electronic fund
transfer solutions including collection amounts cross branch online
transactions etc.
Investment Banking
Our Investment Banking Team has emerged as a leading player in

Pakistan’s investment banking arena. The Team handles advisory, corporate
finance and capital markets related transactions. Within these area, the team
has developed expertise in:
* Private Placements
* Debt/Equity Underwriting
* Term Finance Certificates
* Loan Syndication
* Arrangement of Non- Fund Facilities
* Mergers and Acquisitions
* Privatization

* Corporate Advisory
DEPOSIT DEPARTMENT
The function of deposit department is to collect deposits from

customer the following types of deposits are offered.
 Current deposit
 Saving Bank deposit
 Profit and loss saving account
 Fixed deposit
Now I will explain the above type of deposit offered is one by one.
Current deposit
In this type of deposit the client is allowed to deposit or withdraw

money as and when he likes. He may, thus, deposit or withdraw money
several times in a day if he likes. Usually this is allowed by Bank and no
service charges are deducted by the Bank on current deposit account.
Saving Bank deposit
This type of account is for those persons who want to make small
savings. This type of account is open with Rs. 1000/-. In this case deposits
can be made only up to a costing amount and withdrawals are allowed twice a
week. If the depositor wants to withdrawal more than Rs.25000 a notice is
required before the withdrawal.
Profit & loss sharing account
These types of accounts are one step towards the Islamic banking
system in the Pakistan. Under such types of accounts, the bank allows no
interest to the customer. Profit or loss is declared every year by the executive
board of the bank. PLS saving account having a running minimum credit
balance of Rs.1000/- would be eligible for sharing profit/loss of the bank. The
bank at the close of each half-year shall determine the rate of profit or loss on

PLS saving accounts. In its safe discretion and the banks decision shall b final
and binding on the PLS account holder.
Fixed deposit
In this type of account a certain mount is deposited for certain period

such as six months, two years or longer. A fix deposit receipts is issued in the
name of the depositor. The officer incharge and the bank manager sign the
receipt. The interest allowed on fixed varies with the period for which the
deposit is made.
FOREIGN EXCHANGE DEPARTMENT
The main function of the foreign exchange department is
 To open the letter of credit (to facilitate import and export)
 And this department also deals with foreign currency accounts.
Importance of letter of credit
The bulk of import trade now a day is mostly financed through letter of
credits. The method of making payment through letter of credit has greatly
facilitated commercial relations between the importer and exporter they can
safely rely on the credit of the bank rather than on the credit standing of the
importer. The importer too will pay for the goods, 0nly when they re shipped
and documents re received by the buyer’s bank.
Definition
“Letter of credit is written undertaking by bank given to the seller, at the

request and on the instruction of thee buyer to pay at sight or at a
determinable future date up to a stated amount within a prescribed time limit
and against stipulated document”.
Different parties involved in letter of credit:

 Buyer (applicant)
 Seller (beneficiary)
 Bank (issuing authority)
Procedure of opening letter of credit
The letter of credit is opened by filling an application with the bank and
following information’s should be provided to the bank.
 Name of beneficiary (seller)

 Complete address of beneficiary
 Type of letter of credit whether
 Revocable
 Irrevocable
 Mode and time of payment
 Description of goods
 Payment of freight (paid or not)
 Replacement or dispatch of goods
 Detail of documents such as bill of lading, shipment certificate,
clearance of goods certificate.
 Place of shipment
 Replacement of dispatch of goods
 Whether the trans-shipment is allowed or not. (Trans-shipment means
change of the ships).
 Whether the partial-shipment is allowed or not?
 The date of shipment
 The date and expiry of credit
 Whether the credit is transferable or not?
 How the credit is to be advised by mil, cable, telex etc.
Condition of letter of credit
An importer will have to fulfill the following conditions before submission of

credit application.

 It is essential that he should be an account holder of that bank, where

he will open letter of credit
 Registered importer with chief controller of imports and exports.
 Possession of import license.
Importable merchandise should not be restricted
SECURITIES
Banker’s lien:
Lien is the bankers right to withhold property until the claim on the
property is paid. The banker looks at their lien as a protection against loss on
loan or any other credit facility. In ordinary lien the borrower remains the
owner of the property, but the actual or constructive possession remains with
the creditors, though he has no right to sell it.
Guarantees:
When an application for an advance cannot offer any tangible security,
the banker may rely on personal guarantees to protect himself against loss on
advances or overdraft to the applicant.
Mortgage:
Mortgage is the transfer of an interest in specific immovable property
for the purpose of securing the payment of money advanced or to be
advanced by way of loan, and existing or future debt, or the performance of
an engagement, which may rise to a pecuniary liability. The transfer is called a
mortgagor, the transferee a mortgage.
ON-LINE SERVICES
ONLINE SUPPORT
Striving to serve you better
MCB is pleased to introduce its MCB Virtual Banking Online Support

which is specifically meant for existing MCB Virtual Banking (Internet)
customers, requiring help on various e-Banking issues.
This service is available from 9:30 am to 4:30 pm Monday to Thursday (with a
lunch break from 1:00 pm to 2:00 pm, Friday Lunch break will be from 1:00

pm to 3:00 pm). And on Saturdays, the service will be available from 9:30 am
to 1:00 pm.
MCB ATM Card

Welcome to a world of convenience with the MCB ATM 24- Hour Smart
Card. "It Works. Anytime in Pakistan and abroad."
With an ever growing number of ATMs operating across the nation, the MCB
ATM Network is the largest and most advanced of its kind in the country, and
is part of MCB's continuing efforts to provide you with convenience that suits
your requirements most. And now the MCB ATM has gone global. MCB's
affiliation with Master Card International brings about added facilities for the
MCB traveler abroad with the Cirrus and Maestro networks.
So go ahead! Use your MCB ATM 24- Hour Cash Card day or night, at home
or abroad.
CARD CATEGORIES
MCB ATM Regular Card
The MCB ATM Regular Card allows withdrawal of

up to Rs. 10,000 per day and a maximum of 3
withdrawals per day per card.
MCB ATM Gold Card
The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day
and a maximum of 6 withdrawals per day per card. The cardholder has to
make at least two transactions to withdraw the full amount of Rs. 25,000.
MOBILE BANKING
At the forefront of technological excellence, MCB proudly

introduces MCB MOBILE BANKING. The convenience of accessing
your account balance information and mini statements whenever

you want or wherever you may need them, with comfort and peace
of mind.
MCB Mobile Banking service is available to all MCB ATM
cardholders, 24 hours - 365 days.
BILL PAYMENTS
About MCB Bill Payments
MCB easy bill pay offers unmatched convenience to pay

your utility and mobile phone bills or re-charge your prepaid mobile
phone accounts anywhere, anytime with security and peace of
mind.
MCB is the only bank that offers you 3 convenient options of

making bill payments to PTCL, SSGC, KESC, Instaphone, Mobilink,
Paktel and Ufone. So, save your precious time by avoiding long
queues and pay your bills through MCB Easy Bill Pay.
MCB Smart Card or MCB ATM Card Holder can easily pay their
bills or re-charge their prepaid mobile phone account through the
following convenient options of MCB easy bill pay.
Bill Payments Features

allows you to :
 Pay your bills 24 hours a day 7 days a week.

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

MCB's Partners in
CALL CENTER
The state of the art MCB call center is the right choice to keep you in step
with your ever hectic schedule by providing you services relating to your
account and Smart card at any point in time.
Our well-abreast and friendly call center team is available 24 x 7, 365 days a
year to ensure that your daily financial obligations are taken care of
guaranteeing you a good night’s sleep.
SERVICES OFFERED
General Inquires
 ATM locations
 Account opening procedures
 MCB bank charges
 Product information
 MCB merchant locations
Financial Services
 Account Balance inquire

 Pay orders request
 Funds transfer request

 Debit card Transactions details

 Last five transactions details
 Demand drafts request
 Cheque book request
 24 Hour ATM card blocking
 Bill Payments (PTCL, SSGC, Mobilink, UFONE, Paktel)
Non Financial Services
 Balance Certificate request

 Bank Statements request
 Address Change request
 Virtual Banking activation
 24 Hour complaint registration
 Zakat Deduction certificate request
 Tax deduction certificate request
 Mobile Banking activation
 Debit card blocking

Chapter # 5
Corporate Information

CORPORATE INFORMATION
Mian Muhammad Mansha
Chairman
MR.S.M.MUNEER
Vice chairman
Tariq Rafi
Shahzad Saleem
Sarmad Amin
Mian Umer Mansha
Aftab Ahmad Khan
Atif Yaseen
Dr. Muhammad Yaqoob
MR. MOHAMMAD AFTAB MANZOOR

PRESIDENT &CHIEF EXECUTIVE
Raza Mansha
Advisor
Audit Committee
Dr. Muhammad Yaqub - Chairman
Tariq rafi - Member
Main umer mansha - Member
Aftab ahmad khan - Member
Registered office
Mcb building, F-6,G-6
Junnah aveue, Islamabad
Principal office
MCB Tower,
I.I. Chundrigar Raod, Karachi.

Different scale levels in Muslim commercial bank.
EXECUTIVE VICE PRESIDENT (EVP)

VICE PRESIDENT (VP)
REGIONAL HEADS/ZONAL CHIEF
ASSISTANT VICE PRESIDENT (AVP)
CHIEF MANAGER
MANAGER
Management Structure
Chairman
Chief Executive Officer
Manager
Adviser
Audit Committee
Chief Financial Officer

Secretary
Auditors
Legal Advisor

Chapter # 6
Islamic Banking

INTRODUCTION
MCB now provides its customers with the reliable Islamic Financial
Services and support they require to successfully achieve their business
objectives.
Islamic Banking Division was formed with effect from 1st January 2003, which
in a short span of time, has developed sufficient expertise, necessary
infrastructure, information technology, and manpower to run Islamic Banking
Operation and offer Islamic Banking Products.
ISLAMIC BANKING MANAGEMENT COMMITTEE
The bank has established an Islamic Banking Management Committee

comprising of the senior executives representing various important functions
of the bank, such as, Credit & Risk Management, Finance, Treasury,
Operations, Islamic Banking Division and Sharia Advisor.
The objective of this committee was to review the products offered by Islamic
Banking Branches, and to improve them not only to make them competitive
and practicable but also make them truly Sharia Compliant.
Sharia Advisor
Dr. Muhammad Zubair Usmani, working as Sharia Advisor in our bank

since July 2000 is a prominent scholar having Ph.D. degree in Islamic
Finance as well as Fazil Takhassus from Jamia Darul Uloom Karachi, (i.e.
specialist of Islamic Fiqh and Fatawa).
He has attended and addressed several international and local seminars /
conferences as guest speaker in Pakistan as well as abroad.
He has also worked as Research Scholar and member of various forms and
committees formed for promoting the cause of Islamic Banking in Pakistan
and abroad
Legal Advisor

M/s Mohsin Tayebaly & Co., Advocates & Legal Consultants, has
vetted all documentation. M/s Mohsin Tayebaly & Co. not only has expertise in
legal affairs but also has competent lawyers possessing knowledge of Sharia.
FUND BASED FACILITIES

MCB offers 2 broad Islamic fund based facilities:
 Ijarah
 Murabahah
Ijarah
MCB’s Islamic Ijarah, analogous to the English term 'leasing’, is based
on the ‘Ijarah wa Iqtina’ concept which means the sale of the asset to the
lessee (customer) after the Ijarah has matured. Under this scheme, MCB will
be the owner of the asset, and you (lessee) will be given the asset to use for a
certain period of time in return for monthly rental payments. MCB will give a
separate unilateral undertaking that it will offer to sell the asset to you (lessee)
at the maturity of the Ijarah agreement at a price that may be equal to the
security deposit amount, hence the term ‘Wa Iqtina’.
We currently offers 2 types Ijarah Products:
Car Ijarah
Equipment Ijarah
Murabahah
It is a contract between a buyer and a seller under which the later first
purchases the goods at the request of the former i.e., customer and then sells
it to same customer after adding profit.
Murabah Sale Price = Cost + Expenses incurred + Agreed Profit

Chapter # 7
Training in Branch

In terms of policy and instruction of Comsats Institute of Information

Technology, I have undergone for 6 weeks internship with Muslim Commercial
Bank Gondal Branch Distt. Attock.
I reported at the Branch on 23 July 2007. I was really astonished to see the
building of this Branch outward and inward at a first look and its location at a
prominent place on GT Road. A part from cleanliness and tidiness of the
Branch the atmosphere and dealing of the staff with their clients was a
surprising factor for me and it has given me a good understanding that how
the commercial institutions are extending services to the people.
On the very first day of my joining, the Manager of the Branch Mr. Sheikh
Tariq Pervez depicted brief introduction of
 Muslim Commercial Bank Limited

 The definition of the Bank
 The Departments of the Bank
 And different types of services being rendered by MCB to the people.
What is Bank?
Bank is an institution which accepts deposit from customers for the
purpose of investments and also keeps valuables of the customers.
Who is Banker?
Who deals with the financial matter & money directly.
INTRODUCTION OF THE BRANCH

Then I was introduced by the Manager with all the other staff of the
Branch who have also ensured me to extend every possible cooperation.
MANAGEMENT OF BRANCH:
OG-I 1
OG-II 1
OG-III 2
Cashier 2
Peon 3
During first three week of my internship I was provided opportunity to work to
work with the following departments:-
 Computer department
 Accounts Department
 Bills Department
I was told by the Branch Manager about different types of the accounts like,
 PLS (SB) Deposits
 Current Deposits (CD)
 Fixed Deposits
How they are opened and what requirements are necessary for opening of
these accounts. Beside, I was told about different Outward Bills Collection
(OBC) and Local Bills Collection (LBC) and the Books and Registers used for
it.
TYPES OF ACCOUNTS
Pak Rupee Currency Accounts:
MCB provides you with a selection of accounts to suit your needs.
Account Minimum Profit Rate% Year Limit

Balance
Pls Rs. 1 to 20000 0.10(semi-annually) No Limit
Current 10000 No No Limit
MCB Saving 365 Less than 0.10 1 year
300,000
MCB saving 365 Less than 0.10 1 year
Gold 500000
New FC a/c Savings $500 2.5 No Limit
Capital growth 10,000 1.50 5 Years
Certificates
Khushali Bachat 20000 0.10 No Limit
PLS term Deposit 10,000 Depend on Time 7Days-5 years
0.025 7 days
1.00 1 month
2.50 3 months
3.00 6 months
4.00 1 year
5.00 2 years
6.50 3 years
7.00 4 years
7.50 5 years
Mahana Khushali 50,000 1.00 Monthly
Scheme
In the next week I was engaged with the following departments:-

 Remittance Department
 Accounts Department
In these department I was practically remained involved and availed the

opportunity that how the Remittances are made through the bank from one
place to the other with out involving cash, and how quickly the money is
received into the accounts of the people through these remittances like
Demand Drafts (DD), Pay Orders, Telegraphic Transfer (TT), Mail Transfer
(MT), Home Mail Transfer (HMT), Foreign Mail Transfer (FMT).
It was also an interesting job that how withdrawals of cash are made by the
people through their Cheque, Demand Drafts (DD) and other Instruments.
How quickly these are processed and scrutinized for payments. How
specimen signatures of the clients are tallied and how the cash payment is
made by the cashier on the counter to the specific person by the system of
tokens. I was also given to understand the books and registers which are
used in the process. I personally and practically worked with the staff of the
Bank in all these Departments and my pickup, handling and approach were
not only appreciated by the entire staff of Muslim Commercial Bank Limited
Gondal Branch but also the Branch Manager as well. The most important
factor which I have noticed during the tenure of my internship was the stick
observing of the timings in the morning that is from 9:00 AM and then
continuing the working of the bank with full swing till 5:00 PM through out. I
bound my self in observing the timings of the bank and all the rules and
regulations as well like other bankers.

The most essential and surprising thing which I have noticed in the bank is
keeping of secrecy of the clients accounts strictly.
During the remaining three weeks of my tenure I remained busy in posting of

cheque, feeding of information about new accounts opened in the bank and
the processing of the loan proposals. The papers and the requirements to be
made for availing loans from the bank is most important factors which I have
not only helped the Manager for preparation of different Credit proposals but
also discussed the same while preparing Balance Sheets of the firms and the
Companies.
I think that the CREDIT is the most important and vast department of the bank
being the second one of the function of the bank as acceptance of the
deposits from the pubic and investment of the same in the shape of loan to
the public.
On completion of my internship period the Branch Manager and the entire

staff of the Bank appreciated my efforts and hard working in extending and
helping hand to the staff in quick disposal of their daily working in
achievement of their goals.
Consequently I was relieved on 31st August 2007. After completion of my

period and my performance report was submitted by the Branch Manager to
their Head Office Karachi with his recommendations.

Chapter # 8
Analysis

FINANCIAL HIGHLIGHTS


MARKETING ANALYSIS
EUROMONEY DECLARES MCB "Best Domestic Bank" in

Pakistan:
Euro money, one of the leading financial magazines in the world has
declared MCB as the "Best Domestic Bank" in
Pakistan in its July issue. The Euro money Awards
for excellence 2000, selects banks worldwide for
excellence in their fields.
MCB with a healthier balance sheet, an efficient

cost structure and a well-established brand name
is ready to address future challenges.
In this regard, the President has issued a circular
to all employees. Excerpts from the circular are,
" Euro money, one of the most influential financial
magazines in the world has included MCB for "Euro money Awards for
Excellence 2000". It has declared MCB as the "Best Domestic bank in
Pakistan."
ENVIRONMENT ANALYSIS
Major product lines and market segmentation:
MCB have offers many different product to its clients for their
conveniences such as.
 RTC’s (rupees traveler Cheques).

 MCB ATM Card.
 MCB ATM Gold Card.
 MCB Master Card.
 MCB MNet service.

MCB have a complete hold on the one segment of banking industry, which is
RTC”S (Rupees Travelers Cheques). There is little comparison of MCB RTC’s
with other National and International banks located on Pakistan.
Comparison Of RTC’s Market Share Of MCB With Other Banks:
MCB 67%
Habib Bank Limited 15%
United Bank Limited 5%
Allied Bank Limited 3%
National Bank Of Pakistan 7%
Other banks 3%
COMPETITOR ANALYSIS
Major Competitors and their Market shares:
MCB have many competitors in Government sector as well as some of

private banks located in private sector.
The comparisons of market share of MCB with its some major competitors are
given as under.
MCB 25%
Habib Bank Limited 20%
United Bank Limited 15%
Allied Bank Limited 10%
National Bank Of Pakistan 20%
Other banks 10%
Their Goals:
 Try to become equal or if not then try to minimize their Gap.

 To create a sound base and brought efficient system to achieve
modern banking through out Pakistan
 To create unit banking network in all the branches of their branch.
 The management of other fellow banks has their goal to inter the
multinational market next year.

 Fellow banks have their goal to achieve of increases deposit by 6

billion every year.
Their Strategies:
 Try to provide best customer service to their clients.

 Inform their clients about new attractive schemes and new facilities of
bank.
 Very important aspect of fellow banks to provide the main security to
the deposits of general public.
 Strategy of fellow banks to invest in the art of IT.
TECHNOLOGY ANALYSIS
Self Service Banking (Automated Teller Machine ATMs)
As the symbol of the arrival of the modern technology, one can see
ATM at several important points in big cities. Most of ATM introduced in
Pakistan is just cash dispending machines. However, latest type of ATM being
introduced can perform a variety of routine banking functions, such as cheque
and cash deposits and provision of bank statement etc. more and more banks
are trying to acquire ATM machines, despite the fact that due to low level of
literacy and awareness the utilization of ATM machines so far is rather limited.
MCB is basically pioneer of ATM machines and being the pioneer of
introducing the customer banking system, related to customer’s related
services. MCB is introducing its leadership in providing ATM services to its
valued customers through its nation wide network over 80 ATMs in 11 cities
and now much more are installed in more branches. Six foreign banks have
joined MCB M-net switch that is a reflection of internationally accepted
standards maintained by the bank in technology. M-net is now linked with the
CIRRUS and MAESTRO enabling its customers to use MCB ATM cards
anywhere in the world.

ATM NETWORK
MCB ATM REGULAR CARD
The MCB ATM Regular card

allows withdrawal up to Rs. 10,000 per
day and a maximum of 3 withdrawals
per day per card.
MCB ATM GOLD CARD

The MCB ATM Gold Card allows
withdrawal up to Rs. 25,000 per day and
a maximum of 6 withdrawals per day per
card. The cardholder has to make at
least two transactions to withdraw the
full amount of Rs. 25,000.

Chapter # 9
Suggestions and Recommendations

SUGGESTIONS FOR THE IMPROVEMENT OF BRANCH
Shortage Of Staff:
Almost in all branches of Muslim Commercial the problem of Shortage

Of Staff is very common. There are only few employees who are the be all
and end all of the whole branch resulting in burden of work. Basically the main
idea behind it is that whenever there is shortage of staff in any organization it
always result in lot of work and also boots up the destructiveness as well
because people working over there feel like that they can do whatever they
feel like so are least bothered about the rules and regulations as implemented
by the head office and mostly it results in corruption.
This problem result in more corruption because there are less number of
people to keep check and balance and more work load so when they got to do
lot of work they wont be creative and imaginative enough to take part in the
evolution of new products and wont be satisfied with their job as well.
Staff Is Not Adequately Trained:
Staff in almost all branches of Muslim Commercial bank is not

adequately trained with the contemporary era. Basically Muslim Commercial
Bank is from the very beginning, is pioneer of new products including ATMs,
Mobile Banking and Online banking as well but as they developed the new
systems and products in order to satisfy the customers want they didn’t get
their staff trained in relation with those innovations. Muslim commercial bank
having two staff colleges one in Lahore and One in Karachi but both make
you aware of the systems and procedures but are not training or can say
emphasizing on these innovated products. This problem seems to be quiet
minor but result in major destruction because it takes a lot of time to make
employees aware of these systems and when they don’t know about these
systems they wont be able to help their customer out and when they wont be
able to do so means they are no more going through their mission.

Online Banking
This problem is related to the previous problem as well because when

the staff is not adequately trained then how can they satisfy their customer’s
needs, which is the basic theme or mission of Muslim Commercial Bank.
When Muslim Commercial bank started their online banking, there were only
one or two banks (foreign Banks) doing this practice because of having a
larger network as compared to all other domestic banks Muslim Commercial
Bank started doing this practice but not successful in it because of the above
two problems.
Others
A lot of productive time is wasted by the staff in unproductive pursuits

and tea and launch breaks are got voluntarily extended and the time spent in
corridors, depends on the staff will. This tendency of late must be eliminated
which reflect adversely on the image of the institution and has posed a
serious problem.
No proper allocation of duties, suitable person for suitable job. Distribution of

work is not on equity basis, work has not been allocated properly some
workers have to work hard in late hours without any extra reward. So I
suggest that steps should be taken to allocate the work properly.
No periodic increase on salaries of employees.
Overall Suggestions For Improvement
From the quantum of the profit and its financial data it can easily
judged that after privatization Muslim Commercial Bank is performing well. Its
deposits are growing day-by-day and so is 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 economy.
Introduce Various Profitable Investment Schemes
A big portion of the home remittance is sent by Pakistan working capital

through Muslim Commercial Bank Limited. As we know a big portion of this
amount is wasted purchasing of luxuries. The people motivated to save
money by offering the deposit through various investment schemes. The rate
of profit should increase 1% or 2% than the other banks and it would be
profitable step for bank.
Training Staff
Staff turnover particularly of trained staff result in financial and other

losses. The amount spent by the bank on employment, induction and training
of an outgoing officer constitutes to beat till another officer should ready prove
his work. The exodus of bank officer in the past has worsened the situation.
Change The Nature Of Work
Most of the bank employees are sticking to one seat only with the
result that they become master of one particular job and loose their grip on
other banking operation. In my opinion all the employees should have regular
job experience all out-look towards banking. The promotion policy should be
adjusted.
Refresher Courses
Refresher courses for the staff are most important in any international
organization. All the employees should have these courses according to their
requirement. Foreign experts can also be called for this purpose.
Special Training In Abroad
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 employees should
be provided the opportunities to attend and participate in seminars and
lectures on banking.
Incentive To Employees
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.
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.
Computer System
Though Muslim Commercial Bank installed computer yet the system

has not totally shifted on computer. Manual procedure is still there hence
computer facility is not fully availed. It should be fully availed and system
should be fully computerized.
Others
The period of internship should be divided into the number of

department of the Muslim Commercial Bank Ltd. The internee should be given
timetable mentioning the number of days he has to work at different places in
the bank. On the 1st 4 day in each department internee should be given a
lecture by the officer of the department concerned about working of the
department.
A lot of productive time is wasted by the staff in unproductive pursuits and tea
and lunch breaks are got voluntarily extended and the time spent in corridors,
courtyards, depends on the staff will. This tendency of late must be eliminated
which reflect adversely on the image of the institution and has posed a
serious problem.

Distribution of work is not on equity basis, work has not been allocated
properly some workers have to work hard and have to work in late hours
without any extra reward. So I suggest that steps should be taken to allocate
the work properly.
Reward And Punishment
It is human nature one goes behind reward and incentives while and try
to avoid from punishment. Likewise in commercial institution like bank this
system be introduced with full force means active smart, educated skilled, self
spoken and well versed staff personal, should be reward and appreciates,
while on the other hand lazy, lethargic, heared, rough dealers and ill
mannered must be warned penalized and punished. But this all should be on
merit and considering the policy of honesty is the best policy and mot due to
some personal liking, disliking prejudice and patrimonial. It is therefore
suggest certain schemes and checks may be introduced in banks to increase
efficiency through reward and punishment system.
Survival Of The Fittest
It is not nearly a sentence or idiom right man for the right job according
to his qualification to his qualification, profession skills and experience with
the job specification must be considered while posting and placing the
employees.
It should not be like that a person who may be a very good worker but
possessing lack of managerial capabilities should be posted as manager. But
as second place in command or some heavy working department wished
persons together with managerial qualities and manners in the same fashion
should be posted and placed as manager.
Over Employed
At some places, the Muslim Commercial Bank Limited is over-

employed, which is causing in expenditure. I think that the best way out for

this problem is to open new branches in remote areas and encourages the
employees to work for creating the habit of saving in the people.
Customer Problems
People have to wait for re-cashing their cheques for about 10 to 12

minutes, which is not good for the reputation of bank. This delay is due to
manual work. Therefore I suggest that computers and other electronic
machine should be installed in the bank so that time could be saved.

REFERENCES
www.mcb.com.pk
www.google.com.pk

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Internship Report on Muslim Commercial Bank, Gondal Branch Attock

By the grace of almighty God, I have successfully completed my

Comsats Institute of Information Technology, Attock 1

Introduction to Report &

Comsats Institute of Information Technology, Attock 2

Comsats Institute of Information Technology, Attock 3

Comsats Institute of Information Technology, Attock 4

Comsats Institute of Information Technology, Attock 5

In order to regulate the banking organization a conference was

1. Banking Companies Ordinance 1962

2. Prof. Dr. Harts

3. Prof. G.W. Gilbert

FUNCTIONS OF THE COMMERCIAL BANKS

 The banking business as we know it today is compared of three

Comsats Institute of Information Technology, Attock 6

 The investing of such funds in loans and bonds.

Today the principal banking and financial available to serve

HISTORY OF BANKING IN PAKISTAN:

At the time of independence, commercial banking facilities were

Comsats Institute of Information Technology, Attock 7

COMMERCIAL BANKING IN PAKISTAN:

Commercial banking in Pakistan are companies “Which transact the

 The borrowing raising or making up of money the lending or advancing

Comsats Institute of Information Technology, Attock 8

receipt and discharges, and otherwise acting as an attorney on behalf

It means that the above-mentioned services of the present’s day can be

Comsats Institute of Information Technology, Attock 9

Comsats Institute of Information Technology, Attock 10

HISTORY OF MUSLIM COMMERCIAL BANK LIMITED:

Muslim commercial Bank (MCB) is not an overnight success. It

In January 1974, the government of Pakistan nationalized MCB

A wave of economic reforms swept Pakistan in the late 1990’s

Challenging and Changing the Way you Bank.

Comsats Institute of Information Technology, Attock 11

The diversity of our people is our strength. We inspire and challenge

Comsats Institute of Information Technology, Attock 12

As responsible citizens we contribute to the social welfare of the

Comsats Institute of Information Technology, Attock 13

Comsats Institute of Information Technology, Attock 14

The bank has a lot of opportunities which includes

Comsats Institute of Information Technology, Attock 15

Products & Services

Comsats Institute of Information Technology, Attock 16

MUSLIM COMMERCIAL BANK-CREATING VALUE

Do you require a savings account with attractive returns or investment

Our products are designed to cater to all your financial needs:

Comsats Institute of Information Technology, Attock 17

PRODUCTS & SERVICES

The Corporate Bank offers a whole range of banking products/services

MCB Rupees Travelers Cheques

MCB Rupee Travelers Cheques are as good as cash, infact better.

MCB rupee Travelers Cheques are accepted at major shops, travel

Working Capital Loans

Based on the customer’s specific needs, the Corporate Bank offers a

Comsats Institute of Information Technology, Attock 18

We offer Short to Medium Term Finance to meet capital expenditure

Trade Finance Services

Our network of about 1200 branches in Pakistan enables us to collect

Our Investment Banking Team has emerged as a leading player in

* Term Finance Certificates

* Arrangement of Non- Fund Facilities

* Mergers and Acquisitions