MCB Internship Report

INTERNSHIP REPORT
ON
MUSLIM COMMERCIAL BANK
Instructed by:
Mr. Naveed Ahmed
Lecturer
Comsats Institute of Information Technology
Presented by:
Muhammad Hussain
MBA-A
Roll No.!
"emester #
Muslim Commercial Bank
DEDICATION
I dedicate $hole of my education along $ith my life to my %eloved &arents and
res&ected teachers' $ho $ere al$ays (ind to me.
May )od Bless Them *Aamin+.
Muhammad Hussain
2
TABLE OF CONTENTS
1. Preface
2. Introduction Of Bank
3. Types of Bank
,. Executive Summary of MB
!. !istory of MB
. "ision # Mission Statement of MB
-. ommercia$ Bank
%. Branc&es # 'TMs 1(
(. Product # Services21
1). *epartment in MB2+
11. Mana,ement !ierarc&y2%
12. Investment Bankin,
13. -no. /our ustomer
10. 1emittance *epartment
.!. /inancial "tatements
.. "01T analysis
.-. 0or( 2erformed By Me
.3. /indings
.4. Recommandations
3
PREFACE
Ban(ing sector o$es a &ivotal im&ortance in the economy of any country through
its variant functions. This %asic motivator that stressed me to 5oin any %an( for
Internshi& Training. Moreover' the e6&erience and &ractice learned during this
tenure also &rove very hel&ful and facilitating in the forthcoming &rofessional life.
This re&ort is the result of t$o months Internshi& $ill' Muslim Commercial %an('
7ot /areed' "ahi$al. The motive %ehind selecting this %an( is that it is one of the
To& .8 Asia' Ban(9s. The fact remains that Muslim Commercial %an(' &osses an
e6cel:cut and historical im&ortance %eing the most senior and leading in terms
fluids and services to 2a(istan at all ages of life.
I had $ith the strong %elief that this re&ort $ill guide and facilitate the readers to
understand the functioning of %an(ing system and more im&ortantly have good
(no$ledge a%out Muslim Commercial %an(. My utmost efforts to ela%orate this
re&ort $it' material read' listened and o%served. ;et' I feel that this &eriod $as
not long enough to learn and understand the com&le6 and $ides&read
functioning of %an(ing sector.
I am really than(ful to the entire staff mem%ers of the aforesaid %ranch for the
friendly and coo&erative %ehavior during my internshi&.
Muh!!d Huss"n
MBA#A
R$%% N$&'(
4
ell-develo&ed %an(ing setu& &lays very significant role in the economic
develo&ment of a country. Ban(ing sector is &recondition for the
develo&ment of any country. The %an(ing sector hel&s in &ro&er
utili<ation of resources of the country %y financing the less develo&ed sector. It
also hel&s to (ee& cumulative demand in &ro&er %alance $ith the su&&ly of those
resources' $hich are res&onsive to monetary demand.
$
DEFINITION OF BANK .
A bank is an institution, which deals in money.
I BROADL) SPEAKIN*
=Ban(s dra$ sur&lus money from the &eo&le $ho are not using it at that time' and
lend to those $ho are in a &osition to use it for &roductive &ur&oses.>
+ IN OTHER ,ORDS
=Ban( also acce&ts the de&osits from &u%lic re&aya%le on demand or other$ise
and $ithdra$al %y che?ues. @rafts order and include any &ost office saving
%an(.>
BANK .
5
The $ord %an( is said to have %een derived from the Italian $ords =Bancus> or
=Ban?ue>. The History of %an(ing is transacted to %e as early as A88 B.C.
PEGE! "EF#$##%$&
no one any%ody. Cor&orate or other$ise can %e a %an(er $ho does notB
I 1&en current account
A 2ay che?ues dra$n on him
# Collect che?ues for his customers.
HARTS DEFINITION&
=A han(er is one $ho is in the ordinary course of his %usiness' honors che?ues
dra$n u&on his %y &ersons from and for $hom he receives money on current
account.>
ACCORDIN* TO THE BANKIN* COMPANIES ORDINANC- ./'+:
SECTION (0B1:
=Ban(er means a &erson transacting the %usiness of acce&ting' for the &ur&ose
of lending or investment' of de&osits from the &u%lic' and $ithdra$al %y che?ues'
drafts' order of other$ise' and inclined any &ost office saving %an(s.>
#MP%RA$CE %F 'A$(#$G.
Ban(s &lay very im&ortant role in the economic life of a nation. The gro$th of the
economy is de&endent u&on the soundness of its %an(ing system. Although
%an(s so not create ne$ $ealth %ut %orro$' e6change and consume. These
ma(e generation of $ealth. In this $ay. They %ecome most effective &artners in
the develo&ment of that country. To encourage the ha%it of saving and to mo%ili<e
these savings is its %asic &ur&ose. Ban(s de&osit sur&lus from the &u%lic and
then advances the sur&luses in the form of loans to the industrialists'
agriculturists' %usinessmen and unem&loyed &eo&le under different schemes so
that they setu& their o$n %usiness. Thus %an(s hel& in ca&ital formation
if there are no %an(s' and then there $ould %e concentration of $ealth in fe$
hands great &ortion of $ealth of a country $ould %e idle. In the fe$er develo&ing
countries rate of saving is very lo$ and due to this rate of investment and rate of
gro$th is very lo$. 0e can ta(e han( 5ust li(e a heart in the economic structure
6
and ca&ital &rovided %y it is li(e %lood in it. As long as the %lood is in circulation'
the organs $ill remain sound and healthy. If the %lood is not &rovided to any
organ then the organ $ould %ecome useless. "o if the finance is not &rovided to
agriculture sector or to industrial sector' it $ills he destroyed.
Loan facility &rovided %y %an( $or(s as an incentive to the &roducer to increase
&roduction. Ban(s &rovide transfer of &ayment facility' $hich is chea&er' ?uic(er
and safe. Many difficulties in the international &ayment have %een overcome and
volume of transactions has %een increased. These facilities are very much
hel&ful for the develo&ment of trade and commerce.
E)%*+#%$ %F 'A$(#$G #$ #$"% PA( !+',C%$#$E$&
The Indian society $as ?uite familiar $ith the %an(ing' right for the %eginning.
There is also sufficient evidence to sho$ that during !.h century &eo&le $ere
accustomed to use .-lounds as a credit investment. Loans $ere given to the
&eo&le against &ersonal and other "ecurities such as ornaments' goods and
other immova%le &ro&erties.
-PE! %F 'A$(&
/ollo$ing is the list of various ty&es of %an(sB
Central Ban(
Commercial Ban(
C6change Ban(
Industrial Ban(
Agriculture Ban(
#. C%MMERC#A* 'A$(&
The %an(s in any country s&eeded over $ith an o%5ective to get the e6cessive
money /orm the &u%lic in the form of de&osits and &roviding finance to the
investors. These Ban(s are in the ground for &rofit earning motive and in
com&etition $ith each other. These %an(s are &roviding the %asic services to the
customers in the form of de&osits' Advances' remittances and others.
Comme.cial 'ankin/ !cena.io #n Pakistan&
At the time of Inde&endence in .4,-.ther $ere #3 scheduled %an(s $ith .4!
7
offices in 2a(istan. But %y @ecem%er #l>' .4-# there $ere ., scheduled
2a(istani Commercial Ban(s $ith #A## Branches in 2a(istan and -, Branches in
the /oreign Countries Nationali<ation of %an(s $as done on .st Danuary .4-,
under the Nationali<ation Ac . 4,- due to certain o%5ectives. But it had negative
effects on the efficiency of the %an(ing sector. After$ards' a 2rivati<ation
Commission $as set u&on Danuary AAnd' .44.. The Commission transferred
many %an(s to the &rivate sector' i.e.' Muslim commercial Ban( and Allied Ban(
Limited. The )ovt. a&&roved and &ermitted the esta%lishment of . 8 ne$ &rivate
%an(s in August .44.
Functions o0 comme.cial 'anks&
I %orro$ing of money from customers in sha&e of term de&osits *2L" "aving
Current @e&osits and Notice @e&osits+.
A Lending of money to %orro$ers in sha&e of finances' short-term finances' and
long-term finances under various names such as @emand /inance' "mall
/inance' Cash /inance.
# Agency services.
, Remittance of money.
! /oreign e6change %usiness' foreign currency de&osits. LC"' Im&orts and
e6&orts etc.
R%*E %F C%MMERC#A* 'A$(! #$ HE EC%$%M#C "E)E*%PME$ %F A
C%+$R-&
Ban(s &lay an im&ortant role in the economic develo&ment of a country. If the
%an(ing system is unorgani<ed and inefficient' it creates mar(et ad5ustments and
im&ediments in the &rocess of develo&ment. In 2a(istan' the %an(ing system is
organi<ed in $ell manner. The "tate Ban( of 2a(istan since Duly .st. .43,
stands at the a&e6 and is res&onsi%le of the o&eration of the %an(ing system.
The other %ands' $hich form the %an(ing structure in 2a(istan' are &laying role in
hEthe economic develo&ment of the country.
The role of the commercial %an( in the gro$th and develo&ment of the economy
on sound and steady footings is discussed %riefly as follo$sB
Mobili1ation o0 Resou.ces&
The commercial %an(s are the most efficient organi<ation of the economy in the
mo%ili<ation the resources and ma(ing a &rofita%le &ool of these resources.
Ta(ing the Money from the savers and lending it to the investors is the most
&rominent 5o% of the han(
8
Financin/ "e2elo3ment P.o4ects&
The %an(s and other financial institutions advance loans for the develo&ment
&ro5ects that enhance the &ace of overall develo&ment of the country. These
advances are made in %oth &u%lic and &rivate sectors for the &ur&ose of
achieving a good and strong economic field to catty on the other activities of
trade and %usiness.
C.eatin/ Climate Fo. Ca3ital Fo.mation&
Ca&ital formation is done %y the act of acce&ting &eo&leFs money and &utting into
2rofita%le ventures. This money so accumulated' ma(e &ossi%le the availa%ility of
the needed ca&ital %y the investors. The investors on the other hand are a%le to
get the needed funds that shortfall their re?uirements.
Planned "e2elo3ment&
0ith the hel& of $ell-organi<ed %an(ing sector the government is a%le to ma(e
good Im&lementation of its economic &lanning and can e6ecute develo&mental
activities for the $elfare of the society.
P.omotion o0 !a2in/ Habit&

There are &ersons $ho have money %ut cannot &ut them in &rofita%le use. The
%an(s attract these &ersons %y offering a variety of accounts. They &rovide them
not only the safety of the funds %ut also higher returns on them. The %an(s' in
this $ay' &romote the ha%it of saving among the &eo&le.
E00ecti2e #m3lementation o0 Moneta.y Policy&
0ith the hel& of a good %an(ing system in the country the government and the
central Ban(s regulate the monetary su&&ly and demand of the money. A good
system hel&s in the im&lementation of the &olicies that are formulated %y the
9
government. l through these %an(s using different techni?ues of credit control
ma(es credit e6&ansion and contraction.
$a..owin/ Re/ional "is3a.ity&
The %an(s hel& in %ridging the country. The sur&lus fund of on Region is sent to
the centers of deficit. The less develo&ed areas ac?uire funds' &ut them into
&roductive channel and increase &roduction. The %an(s hel& in a %alanced
gro$th the economy.
E5ecuti2e !umma.y
C%RP%RAE PR%F#*E
Mian Mohammad Mansha Chairman

".M.Muneer Gice Chairman

Tari? Rafi
"hah<ad "aleem
"armad Amin
Afta% Ahmad 7han
Atif ;aseen
@r. Muhammad ;a?u%
Mian Ra<a Mansha

Atif Ba5$a 2resident : CC1

'oa.d Committees &

Audit Committee
10

@r. Muhammad ;a?u% Chairman

Tari? Rafi Mem%er

Mian Ra<a Mansha Mem%er

Atif ;aseen Mem%er

HR Committee
Mian Muhammad Mansha Chairman

@r. Muhammad ;a?u% Mem%er


Atif Ba5$a Mem%er

Risk Mana/ement Committee
Mr. Tari? Rafi Chairman

".M. Muneer Mem%er


Afta% Ahmed 7han Mem%er

Committee on Physical Plannin/, # !ystem and Contin/ency
A..an/ements
"armad Amin Chairman

Atif ;aseen Mem%er

Afta% Ahmad 7han Mem%er

Atif Ba5$a Mem%er

'usiness !t.ate/y 6 "e2elo3ment Committee
Mian Mohammad Mansha Chairman
11

".M. Muneer Mem%er

Tari? Rafi Mem%er


Atif Ba5$a Mem%er

C.edit Committee
"hah<ad "aleem Chairman

"armad Amin Mem%er

Tari? Rafi Mem%er


Chie0 Financial %00ice.

Tahir Hassan Hureshi

Com3any !ec.eta.y

A%dus "."ami

Audito.s

72M) Taseer Hadi I Co Chartered Accountants

Ria< Ahmed I Co. Chartered Accountants

*e/al Ad2iso.s

Mandvi$alla I Jafar Advocates I Legal Consultants

12
Histo.y o0 Muslim Comme.cial 'ank
The Muslim Commercial Ban( Limited $as incor&orated on 4
th
Duly .4,- in
Calcutta in Bengal. After &artition' the Registered 1ffice of the %an( $as shifted
to @ha(a $here it commenced %usiness from August .4,3. The Ban( transferred
its registered:Head office from @ha(a to 7arachi in .4!. In .444' its registered :
Head office $as transferred to Islama%ad and 7arachi office $as named as
&rinci&al office. The government transferred a AK management sta(e to a grou&
of leading industrialists' collectively named National )rou& of $hich Mian
Mohammad Mansha is the Ma5or sta(eholder. In .44A a further A,K $as sold to
the National )rou&. The current shareholding structure is !8K National )rou&'
A!K government and A!K floated on %ourses.
NATIONALI2ATION OF MCB NATIONALI2ATION OF MCB
13
Muslim Commercial Ban( Limited $as nationali<ed %y the )overnment of
2a(istan in Danuary .4-, under the Ban(s Nationali<ation Act' .4-,. "u%se?uent
to nationali<ation the o&erations of &remium Ban( Limited $ere merged $ith the
Muslim Commercial Ban( Limited in Dune .4-,.
PRI3ATI2ATION OF MCB PRI3ATI2ATION OF MCB
The &revious )overnment declared the &rivati<ation &olicy as one of its main
o%5ectives and in accordance $ith its &olicy' the )overnment offered Muslim
Commercial Ban( Limited for &rivati<ation. The Ban( $as the first 2u%lic sector
%an(' $hich $as &rivati<ed on A
nd
A&ril .44.. The )overnment of 2a(istan
transferred management of the %an( to 2rivate Industrialists and Cntre&reneurs'
LNational )rou&L %y selling AK shares of the Ban( at Rs.! &er share.
P.esent !tatus
1ver the years Muslim Commercial %an( fostered strong %onds $ith its
customers. MCB understands themM their needs. They feel comforta%le $ith
MCBM its their %an(M it res&onds to themM listens to themM &artners $ith themM
gro$s $ith them. That is $hy it is one of the leading commercial %an(s of the
country' &roviding a $ide range of modem %an(ing services. At &resent' the
%an(ing net$or( consists of over .888 %ranches along $ith N controlling offices
(no$n as Area Head offices and Regional Head offices. These controlling offices
are res&onsi%le for the smooth o&eration of the %an( on National I international
levels. The entire financial and o&erational o%5ectives are achieved $ith the
Human Resources strength over .A888 em&loyees. The %an( is (no$n as the
ma5or credit &rovider' %est &lace of $or(ing and &aymaster in the financial
*money mar(et+ of the country. 1ver the &ast fe$ years' MCBOs &rofits have %een
hit %y the need to increase &rovisions coverage and restructuring costs
associated $ith the do$nsi<ing of the $or(force and %ranch net$or(' $hilst there
is some need to %oost &rovisions' these charges *necessary to %ring the %an(
14
%ac( into sha&e+ are largely over. It has also slo$ly received &ermission from the
"B2 to shut do$n a num%er of un&rofita%le %ranches.
In .444 CPR1 M1NC; recogni<ed MCB as the %est domestic %an( in 2a(istan.
The %an(ing sector has %een $orst hit %y the e6ternal account crisis that
Cngulfed the country follo$ing the nuclear tests. @ue to the nature of %an(s as a
Medium for de%t transactions the countryOs technical default and su%se?uent
rating do$ngrade im&acted them the most. Those core concerns are still not fully
alleviated in the vie$ of the investors. The closest that investors have come to
&ositive e6&ectations regarding e6ternal account sustaina%ility and a &ossi%le re-
rating $as %ac( in the fourth ?uarter of the year .444' and this led to MCB
clim%ing to 2a(istani ru&ees ! &er share. Resum&tion of the IM/ funding and a
&ossi%le rescheduling of %ilateral de%t $ill &ositively im&act the %an(ing sector
and es&ecially MCB.
"tate Ban( of 2a(istan continued the &rocess of Ban(ing Reforms' $hich
included strengthen of 2rudential Regulations and focus on recovery of defaulted
loans. In .444 return on )overnment "avings "cheme and Treasury Bills $as
reduced' $hich led to a lo$ering of lending rates' resulting in erosion of margins
for %an(s %ut it is li(ely to give a %oost to economic activity.
MCB Ru&ee travelers Che?ues continued to maintain their leadershi& &osition in
the industry and sales registered a ,!K gro$th over last year. MCB successfully
introduced the Rs..88' 888 denomination che?ue country$ide and introduced
RTC dialu& tele-verification facility from Lahore city as $ell.
Mainly there are three ty&es of Ban(ing in MCB. These areB
15
CORPORATE AND IN3ESTMENT BANKIN* CORPORATE AND IN3ESTMENT BANKIN*
Cor&orate Ban(ing )rou& of MCB is focusing on to& tier local cor&orate grou&s
and multinationals in a structured and focused manner %uilding relationshi&s
leading to increased mar(et share.
Branches having Advances of Rs..88' 888'888 &er &arty relationshi& and
monitoring such advances are called as Cor&orate Branches. These %ranches
include cor&orate clients and their re?uirements are loo(ed after. There are a%out
A8 cor&orate %ranches of MCB in 2a(istan.
%+R )#!#%$ 6 M#!!#%$ %+R )#!#%$ 6 M#!!#%$

)ision !tatement )ision !tatement

T$ be the %ed"n4 5"nnc"% ser6"ces 7r$6"der- 7rtner"n4 8"th $ur cust$!ers T$ be the %ed"n4 5"nnc"% ser6"ces 7r$6"der- 7rtner"n4 8"th $ur cust$!ers
5$r !$re 7r$s7er$us nd secure 5uture 5$r !$re 7r$s7er$us nd secure 5uture. .

Mission !tatement Mission !tatement

,e re te! $5 c$!!"tted 7r$5ess"$n%s- 7r$6"d"n4 "nn$6t"6e nd ,e re te! $5 c$!!"tted 7r$5ess"$n%s- 7r$6"d"n4 "nn$6t"6e nd
e55"c"ent 5"nnc"% s$%ut"$ns t$ crete nd nurture %$n4#ter! re%t"$nsh"7s e55"c"ent 5"nnc"% s$%ut"$ns t$ crete nd nurture %$n4#ter! re%t"$nsh"7s
8"th $ur cust$!ers& In d$"n4 s$- 8e ensure tht $ur shreh$%ders cn 8"th $ur cust$!ers& In d$"n4 s$- 8e ensure tht $ur shreh$%ders cn
"n6est "n us 8"th c$n5"dence& "n6est "n us 8"th c$n5"dence&
16
C%MMERC#A* 'A$(#$G C%MMERC#A* 'A$(#$G
The Commercial Ban(ing )rou& of MCB continues to service the trading
Community and middle mar(et' $ith sustained focus on develo&ing ne$
customer relationshi&s and increasing the asset &ortfolio.
C%$!+MER 'A$(#$G C%$!+MER 'A$(#$G
The Consumer Ban(ing )rou& focuses on the lo$er end of the mar(et and micro
credit. Individual customer needs are %eing serviced through the introduction of
diverse lifestyle consumer loans and introduction of ne$ &roducts and
&artnershi&s $ith service &roviders. Customers $ill continue to use the e6tensive
%ranch net$or(' $hich in turn $ill generate de&osits to feed the asset
develo&ment and li?uidity re?uirements of the Ban( through its diversified and
sta%le de&osit %ase.
AM ECH$%*%G- AM ECH$%*%G-
17
At MCB' technology has a direct relationshi& $ith the needs of the customers' it
is a mean of creating value and convenience for the customer. 1ver the last fe$
years MCB has invested heavily into strengthening its technology %ac(%one.
Today it is leading the $ay in %an(ing technology and setting ne$ standards for
the %an(ing industry' &enetrating into the local mar(et' listening to the needs of
the &eo&le. MCBFs strength lies in &roviding technological %ase at a grass root
levels of the society $ith a challenge to educate and assimilate such systems
across vast cultural and economic %ac(grounds. 0ith over -3 automated
%ranches' A,# online %ranches' over .!. MCBFs ATMs in A- cities nation$ide
and a net$or( of over . %an(s on the MNet ATM s$itch' MCB continuously
innovates ne$ &roducts and services that harness technology for the customerFs
%enefits.
Additionally in order to enhance the utility of the ATM services they successfully
lin(ed their ATM net$or( to the MasterCard' Cirrus and Maestro' effectively
%ecoming &art of the largest ATM net$or( in the $orld. MasterCard and
Cirrus:Maestro users can no$ access their ATMOs net$or(. Together $ith the
a%ove MCB made a strategic decision to esta%lish an ATM s$itch and o&en their
ATM net$or( to other %an(s. The ATM s$itch has %een named MNCT. It has
follo$ing %an(s in MNCT s$itchB
"tandard Chartered
Citi Ban(
MCB ATM SER3ICES
MCB ATM Crd
0elcome to a $orld of convenience $ith the MCB ATM A,- Hour "mart Card. LIt
0or(s. Anytime in 2a(istan and a%road.L
0ith an ever gro$ing num%er of ATMs o&erating across the nation' the MCB ATM
18
Net$or( is the largest and most advanced of its (ind in the country' and is &art of
MCBOs continuing efforts to &rovide you $ith convenience that suits your
re?uirements most. And no$ the MCB ATM has gone glo%al. MCBOs affiliation
$ith Master Card International %rings a%out added facilities for the MCB traveler
a%road $ith the Cirrus and Maestro net$or(s.
"o go aheadQ Pse your MCB ATM A,- Hour Cash Card day or night' at home or
a%road.
MCB ATM Re4u%r Crd
The MCB ATM Regular Card allo$s $ithdra$al of u& to Rs. .8'888 &er day and a
ma6imum of # $ithdra$als &er day &er card.
'RA$CHE! 6 AMs

Mnet
MNCT ena%les all the mem%er %an(s to share their electronic net$or(s. 0hich
means customers of mem%er %an(s can use MNCT as $ell as .-Lin( ATMs
Nation$ide. MNCT mem%er %an(s ATM machines acce&t cards issued %y MCB
Ban( Ltd' Citi%an(' "tandard Chartered' H"BC' "audi 2a( Ban( Limited' Ha%i%
Metro&olitan Ban(' D" Ban(' @eutsche Ban(' "MC Ban(' Arif Ha%i% Ru&ali Ban(
and /irst 0omen Ban(. MNCT customers can use over 88'888 ATMs $orld$ide
that carry the logo and sho& at over ! million outlets that carry the logo.
M-Net s$itch has currently .A ATMs in !8 cities. 0e &lan to have the net$or(
gro$ in faster &ace in future as MCB itself $ill %e adding more ATMs %y the end
of the year. The ATM de&loyment has %een &lanned in such a manner that a
customer $ill %e only a fe$ minutes a$ay from an ATM in ma5or cities. This
cou&led $ith geogra&hic coverage &rovides the largest convenient s&read in the
country' %ecause of $hich $e are very strongly concentrating on @iverse
Coverage I Convenience.
M-Net "$itch ATMs are &resent in all the ma5or cities of the country. They are
availa%le in the hilliest and northern areas of the country such as Murree'
19
A%%otta%ad and "$at etc thus &roviding convenience of accessing A, hours cash
to the customers across the country.
M-Net s$itch also has its "ervice Centers in the main cities of the country
&roviding su&&ort to mem%er %an(s customers. M-Net "$itch ATMs are also
&resent in all # main Air&orts of 2a(istan i.e.' Dinnah Terminal *7arachi+' Allama
I?%al International Air&ort *Lahore+ I Islama%ad International Air&ort.

MEM'ER 'A$(! 6 thei. AM *ocations

In 2a(istan' the ATM facilities can %e availed at any of the follo$ing locationsB

MCB Ban( Ltd. "tandard Chartered

CITIBAN7 "audi 2a( Ban( limited

H"BC Ha%i% Metro&olitin Ban(

Arif Ha%i% Ru&ali Ban( @eutsche Ban(

/irst 0omen Ban( "MC Ban(
C%RP%RAE #MAGE '+#*"#$G C%RP%RAE #MAGE '+#*"#$G
In vie$ of )oals esta%lished through mission and vision statement' the first ste&
ta(en $as to change the cor&orate image of the Ban(' $hich inclined follo$ing
as&ectsB
In .44. Ban( changed its logo from
to current logo $hich isB
0hich signifies the gro$th and &ros&erityR The change of logo $as &art of effort
to change image of the Ban( as a &rogressive %an( in the minds of &eo&le of
country.
20
A com&rehensive electronic media cam&aign $as launched $ith a logo 9*$$d
Bn:"n4 4ett"n4 e6en better9 stressing on the im&rovement.
An on going &rocess of /ace Lifting and renovation of MCB %ranches $as started
$hich is still going on. The &ur&ose of it $as to ensure the overall outloo( of the
%an( changes and em&loyees get a %etter environment to $or( and customers of
the %an( feel more comforta%le.
$E7 PR%"+C! A$" !ER)#CE! !#$CE PR#)##8A#%$ $E7 PR%"+C! A$" !ER)#CE! !#$CE PR#)##8A#%$
In order to achieve long-term goals of e6&ansion and &enetration in the mar(et.
Ban( introduced various ne$ &roducts for its customers' $hich cater to the needs
of various segments of the society. In order to do so' a constant &rocess of
mar(et research' evaluation and develo&ment of Ne$ &roducts $as started
$hich resulted in introduction of various ne$ &roducts $hich $ere earlier not
introduced %y any other Ban( in the country. Introduction of these &roducts $as
indeed a ma5or source of &enetration for the %an( and turned out to %e a
differential factor as com&ared to other %an(sB
Pr"!e Currency Acc$unts - /or foreign currency de&osits' *since .44.+
Mhn Khush%" Sche!e # A monthly income &lan through de&osit of a fi6ed
sum in the account' *since .44.+
H;; Mubr": Sche!e - /or intending 2ilgrims' *since .44.+
21
C7"t% *r$8th Cert"5"ctes - It dou%les the de&osit of de&ositor in ! years. It
offers high rate of return and $as introduced for fetching long-term de&osit'
*since .44.+
PLS <'( S6"n4s Acc$unts& - Introduced high earning &roduct $ith feature of
calculation of &rofit on daily &roduct %asis. No restriction on de&osit $ithdra$als
and Minimum de&osit of Rs.#88'888:- *since .44A+
Fund Mn4e!ent Sche!e - To generate funds to develo& secondary mar(et
for )overnment "ecurities *from .44. to .44A+
MCB Khush%" Bcht Acc$unts - "avings accounts $ith added value to
customers due to &rofit a&&lication of daily &roduct %asis.
MCB D$%%r Khush%" Acc$unts - /or foreign currency de&osits' *launched in
.44#+
FA=PRESS # A fast inter-city Remittance "ervice' *since .44.+
MCB Ru7ee Tr6e%ers Che>ues - The most &o&ular &roduct of MCB' introduced
Ru&ee Traveler che?ue for the very first time in the country and it immediately
fetched high share of the mar(et and MCB share is still gro$ing - *launched in
.44#+
C$nsu%tncy Ser6"ces /or intending %uyers of "tate-o$ned enter&rises %eing
&rivati<ed' *since .44.+
Se%5#F"nnc"n4 Sche!e - Mar(-u& free finance from !888 to A!888. *since
.44.+
N"4ht Bn:"n4 Ser6"ces 0s"nce .//.1
Ut"%"ty B"%%s C$%%ect"$n Centers # "e&arate utility Bills collection centers $ere
esta%lished for collection of utility %ills *since .44,+
MCB MsterCrd # *since .44,+
E=PORTMOR - /inancing facility for e6&orter *since .44,+
REMITE=PRESS - A fast remittance service %et$een 2a(istan and Middle Cast.
*"ince .44,+
Pers$n% Bn:"n4 Ser6"ces# In order to &romote Consumer Ban(ing system in
the country a &ro&er &ersonal Ban(ing service $as started for High Net $orth
clients of Ban( in selected %ranches *since .44!+
22
MCB Cust$d"n Ser6"ces # Launched for local and international ca&ital mar(et
clients.
On%"ne# The largest net$or( of %ranches in the country and gro$ing. 2roviding
customers $ith A,6- real time online facilities.
MCB C%% Center# Call no$ for ans$ers to your ?ueries-%an(ing services' ATM
services' mo%ile %an(ing services' RTC services' tele%an(ing services and MCB
&roduct information. The state of the art MCB call center is the right choice to
(ee& you in ste& $ith your ever hectic schedule %y &roviding you services
relating to your account and "mart card at any &oint in time.
1ur $ell-a%reast and friendly call center team is availa%le A, 6 -' #! days a
year to ensure that your daily financial o%ligations are ta(en care of
guaranteeing you a good nightFs slee&.
Csh P%us#Cash management services for cor&orate customers hel& customers
su%stantially reduce their receiva%le collection time frame' im&rove cash flo$ and
%usiness management.
Is%!"c bn:"n4 ser6"ces through e6clusive units: %ranches offering a range of
lia%ility and asset %ased sharia com&liant &roducts li(e mushari(a' mura%aha'
i5ara and istasana.
MC' Mobile bankin/,
Ban(ing at your figure ti&s. @ial in anytime to get information regarding %alance
and mini statements.
At the forefront of technological e6cellence' MCB &roudly introduces MCB
M1BILC BAN7IN). The convenience of accessing your account %alance
information and mini statements $henever you $ant or $herever you may need
them' $ith comfort and &eace of mind.
MCB Mo%ile Ban(ing service is availa%le to all MCB ATM cardholders' A, hours -
#! days.
23
Dust call our Hel& Line on ...-888-MCB*AA+ or any MCB online %ranch for
assistance.
M$b"%e Bn:"n4 t *%nce
MCB Mo%ile Ban(ing gives you easy and ?uic( access to your account*s+ at a
time you find convenient' including all holidays.

Bn:"n4 t y$ur F"n4ert"7s
0ith MCB Mo%ile Ban(ing you canB
Chec( your %alance
Gie$ the last , transactions of your MCB account*s+.

A Free Ser6"ce
MCB Mo%ile Ban(ing is a free service for MCB account holders $ho have an
ATM card. All you &ay for is the cost of an "M" message if charged %y the
service &rovider.
MCB %$c:ers# The %est &rotection for your valua%les. Loc(ers of different
ca&acities are availa%le nation$ide.
Pyr 4hr# /le6i%le and com&etitive home financing facility $ith o&tions of
home &urchase' construction and renovation.
MCB cr csh# Car financing and leasing at com&etitive rates $ith fle6i%le
o&tions.
Lr4est ATM Net8$r:# of .88 ATMs connected to $orld$ide ATM net$or( of
a%out #!8'888 ATMs along $ith Cirrus and Maestro facility ena%ling MCB ATM
card to %e used All over the $orld I any$here in the country.
CUSTOMER SATISFACTION CUSTOMER SATISFACTION
24
/or any organi<ation to succeed' it is e6tremely vital to ensure Customer
"atisfaction. Ban(s %eing in service sector' it is highly im&ortant that high service
standards %e maintained and real value to their money is &rovided to its
customers. In order to do so MCB too( three revolutionary ste&sB
2rovision of com&aratively %atter service to its customers as com&ared to other
%an(s through value added features of lo$ cost' ?uic( dis&osal of $or( and
friendly environment. Moderni<ation' Com&uteri<ation of most of the %ranches
ena%led Ban( stay a%reast $ith the technology and &rovision of %etter service at
the root level to its customers.
Ban( also started an ongoing &rocess of Branch face lifting creating a %etter
congenial environment for its customers. In order to %e more customersO
conscious' MCB started a very effective and timely action system on Customer
Com&laints
De7rt!ents "n MCB De7rt!ents "n MCB
Brief functions and res&onsi%ilities of de&artments at MCB are as follo$s.
25
Hu!n Res$urces nd %e4% 4r$u7:
Recruitment.
Training.
Transfer I &osting.
2romotions.
@is&utes.
"taff loans.
Bn:s $7ert"$ns 4r$u7:
2olicy.
2remises.
Ca&ital I o&erating e6&enses &rocessing.
Return I consolidation.
Reconciliation.
2roduct sales.
Relationshi& co-ordination.
"ervice standards.
Customer com&laints.
F"nnc"% Inst"tut"$n ? $6erses 4r$u7:
Inter-%an( e6&osure.
/ore6 licensing.
26
F"nnc"% c$ntr$% ? Aud"t 4r$u7:
Audit I internal control.
Budgeting I &lanning.
Monitoring of e6&enses.
/inancial re&orts.
Cred"t ? r"s: !n4e!ent 4r$u7:
Credit &ro&osal evaluation I analysis.
2ro5ect financing.
Monitoring of credit &ortfolio of %an(.
.
C$r7$rte bn:"n4 4r$u7:
2lacement of all multi-national I &u%lic sector com&anies.
C$nsu!er bn:"n4 4r$u7:
2enetration in high net-$orth customers.
Carning increase.
Customer retention.
C$!!erc"% bn:"n4 4r$u7:
Conduction of normal retail o&erations.
27
Tresury ? F= 4r$u7:
/unds management.
Investment management.
Assets !n4e!ent 4r$u7@ Frud c$ntr$% 4r$u7:
Classified &ortfolio loo(s after.
"&ecial assets management.
Restructuring : Rescheduling.
1ut of court settlements
In5$r!t"$n techn$%$4y 4r$u7:
ATM : CIRRP" facilities.
I.T. related franchise management.
"0I/T system.
1n-line %ranches net$or( loo( after.
Hard$are : soft$are su&&ort.
28
MCBFs Management Hierarchy MCBFs Management Hierarchy
29
President
(M. Aftab Manzoor)
Human Resource Group
Inorma!ion "ec#nolo$% Group
&sse!s Mana$emen!'(rau)
Con!rol Group
"reasur% * (+ Group
Consumer Bankin$ Group
Cre)i! * Risk Mana$emen!
Group
(inancial Con!rol * &u)i!
Group
(inancial Ins!i!u!ion Group
Bank ,pera!ion Group
-e$al Group
Commercial Bankin$./ou!#
Commercial Bankin$.0or!#
Corpora!e Bankin$ Group
Corpora!e
South
Corpora!e
North
Raheel Ijaz
(GM)
Corpora!e
Central
Bashir Khan
(AVP-Admn.)
Hamid Yasin
(AVP-Credit)
Mall Branc#
R12
(CM)
Blue &rea
Branc# I/B
Nadeem Elahi
(CM)
G.8'4 Branc#
I/B
(CM)
Cre)i!
Hameed
Durrani
(AVP)
(orei$n
34c#an$e
Abdul Majeed
(OG-2)
,pera!ions
Raja Khaliq
(AVP)
Business of MCB Business of MCB
MCB is in itFs over !8 years of o&eration. It has net$or( of over .'.88 %ranches
all over the country $ith %usiness esta%lishments in Bangladesh' "ri Lan(a and
Bahrain. The %ranch %rea(-u& &rovince $ise is 2un5a% *!-K+' "indh *A.K+'
N0/2 *.4K+ and Baluchistan *#K+ res&ectively.
MCB has an edge over other local %an(s' as it $as the first &rivati<ed %an(. The
"tate Ban( of 2a(istan has restricted the num%er of The Consumer Ban(ing of
MCB &rovides customers $ith innovative saving schemes' &roducts and
services. The ATM net$or( of MCB is the largest in 2a(istan and the 2a( Ru&ee
Travelers Che?ues are mar(et leaders. MCB $as the first to introduce the 2hoto
Card $ith the launch of the MCB MasterCard.
The Cor&orate Ban(ing of MCB ensures assistance from a dedicated team of
&rofessional financial advisors for under$riting' &ro5ect finance or cor&orate
advisory services.
0hen it comes to %an(ing &ractices' the consumer can de&end on MCB'
%ecause itOd %een around for over fifty years.
The "tate Ban( of 2a(istan has restricted the num%er of %ranches that can %e
o&ened %y foreign %an(s' an advantage that MCB ca&itali<es %ecause of its
e6tensive %ranch net$or(.
Cight years after &rivati<ation' MCB is no$ in a consolidation stage designed to
loc( in the gains made in recent years and &re&are the ground$or( for future
gro$th. The %an( has restructured its asset &ortfolio and rationali<ed the cost
structure in order to remain a lo$ cost &roducer.
30
MCB no$ focuses on three core %usinesses namely Cor&orate' Commercial and
Consumer Ban(ing. Cor&orate clientele includes &u%lic sector com&anies as $ell
as large local and multi national concerns. MCB is also catering to the gro$ing
middle class %y &roviding ne$ asset and lia%ility &roducts. The Ban( &rovides A,
hour %an(ing convenience $ith the largest ATM net$or( in 2a(istan covering 4
cities $ith around .88 ATM locations. The Ban(Os Ru&ee Traveler Che?ues have
%een mar(et leaders for the &ast si6 years.
MCB loo(s $ith confidence at year A88A and %eyond' ma(ing strides to$ards
fulfillment of its mission' Lto %ecome the &referred &rovider of ?uality financial
services in the country $ith &rofita%ility and res&onsi%ility and to %e the %est
&lace to $or(L.
C$r7$rte Bn:"n4 C$r7$rte Bn:"n4
MCBOs Cor&orate Ban(ing Team consists of dedicated &rofessionals $ith the
re?uisite e6&ertise to ta(e care of the %an(ing needs. The Cor&orate Ban( $ith
A8 %ranches has its &resence in all ma5or cities of 2a(istan. The Area 1ffices are
located in 7arachi' Lahore and Islama%ad.
Cor&orate 2latforms have %een esta%lished in the three &rinci&al cities $here
teams of dedicated Relationshi& Managers have %een &osted. These
Relationshi& Managers have %een entrusted $ith the com&lete res&onsi%ility for
managing the ris( of their allocated &ortfolios' acting as allusion %et$een the
customer and the %an(' and &roviding you $ith the entire range of
&roducts:services offered %y the %an(.
The &roducts:services of the Cor&orate Ban( are %roadly divided into the
follo$ing categoriesB
7o.kin/ Ca3ital *oans&
31
The $or(ing ca&ital loan includes Running /inance' Cash /inance' C6&ort
Refinance' 2re-shi&ment and 2ost-shi&ment etc.
e.m *oans&
1ffer "hort to Medium Term /inance to meet ca&ital e6&enditure of the customer
%usiness needs.
.ade Finance !e.2ices&
Trade finances services that include an entire range of im&ort and e6&ort
activities including issuing Letters of Credit *L:Cs+' &urchasing e6&ort documents'
&roviding guarantees and other su&&ort services.
Cash Mana/ement&
The net$or( of a%out ..88 %ranches in 2a(istan ena%les the %an(ers to collect
and dis%urse &ayments efficiently $ith the MCB cash management services. This
also ena%les. the %an(ers to offer the customerFs choice of &a&er %ased or
electronic fund transfer solutions including collection amounts' rose %ranch on-
line transactions etc.
32
In6est!ent In6est!ent Bn:"n4 Bn:"n4
The Investment Ban(ing Team of MCB has emerged as a leading &layer in
2a(istanOs investment %an(ing arena. The Team handles advisory' cor&orate
finance and ca&ital mar(ets related transactions. 0ithin these areas' the
investment %an(ing team of the MCB has develo&ed e6&ertise in the follo$ing
areas of the investmentB
P.i2ate Placements
"ebt9E:uity +nde.w.itin/
e.m Finance Ce.ti0icates
*oan !yndication
A..an/ement o0 $on, Fund Facilities
Me./e.s and Ac:uisitions
F"nnc"% F"nnc"% H"4h%"4hts H"4h%"4hts
The results for the year A88. are reflective of sustaining all-around efforts over
the fe$ years' to maintain &rofita%le gro$th along $ith &rudent and &roactive ris(
management and e6&ansion of &roduct range of customers.
2re-&rofit for the year A88. $as Rs.A..8 %illion as against Rs...#A %illion in A888-
a healthy increase of !4K.
)ro$th in &rofita%ility is &rimarily due to fund-%ased activities through efficient
assets and lia%ility management. /ee %ased income $as lo$er des&ite increase
in volumes due to com&etitive &ricing and discontinuation of charges on 2L"
accounts.
Administrative e6&enses gre$ %y #K generally attri%uted to a%sor% effect of
inflation and enhancement in )ovt. levies. 2ragmatic efforts are' ho$ever' under
33
$ay to manage costs in relation to revenues to further im&rove the
revenue:e6&ense ratio. Higher level of &rovisions $as in the line $ith the Ban(Fs
&olicy to u&front recogni<e &ro%lem lending. In A88.' the Ban( managed to
recover Rs.A..4 %illion as against Rs...4- %illion in A888.
The %alance sheet footings have increased to Rs..3- %illion from Rs..-! %illion
&rimarily %ased on de&osit gro$th. @e&osits have registered a su%stantial
increase of .,K and stand at Rs..!,.! %illion in A88. as against Rs..# %illion in
A888. @es&ite of lo$ 2L" de&osit rates' %ranch net$or( has sho$n a
commenda%le &erformance %y increasing and managing the de&osit mi6. This
has %een &ossi%le %y im&rovement in customer services and targeted sales of
&roducts li(e ATM cards.
Net advances as at @ecem%er #.' A88. stood at Rs.-. %illion' a reduction of
Rs.4.3 %illion. @emand for credit from manufacturing and e6&ort clients fell
considera%ly' &ost "e&tem%er ..'A88.' $hich led to a reduction in advances as
on the %alance sheet date from a higher level during the year.
*eade.shi3 in Ru3ee .a2ele.s Che:ues& "ales have gro$n %y AK in the
year A88. and continue to reflect meteoric gro$th. 0ith the e6tension of the
generic %rand' increase in the range of denomination %ac(ed %y a &o$erful
verification system and over 488 %ranches involved in this %usiness.
*eade.shi3 in AM;s& 0ith around .88 ATMs and .-8 online %ranches' MCB is
again an undou%ted Indus leader $ith connectivity e6tended to . cities of
2a(istan. In the year A88A further ATM $ill %e de&loyed and connectivity
increased to other cities. MCB ATMs not only serve A,-hour cash convenience
%ut also im&rove on the counter services and turn around time at cash counters.
The MCB ATM Master Card $ith Maestro and Cirrus net$or(s has %ecome a
glo%al service furthering the convenience to our customers. Traveling customers
34
can access their account from a large num%er of internationally de&loyed ATMs
and &oint of "ale *21"+ units.
The MCB ATM "$itch - MNCT is no$ o&erational. IT )R1P2 of MCB has %een
a%le to create the largest net$or( for secure electronic financial transactions in
2a(istan. Local %ranches of si6 international %an(s are connecting to this
net$or(. This $ill ena%le &artici&ating %an(s to use each othersO ATMs resulting
in an increased convenience to MCB customers and customers of other %an(s.
The IT )rou& is currently e6&anding the net$or( ca&a%ility to &rovide the
customers access to %an(ing through
multi&le electronic channels.
Ame.ican E53.ess 'ank ente.s into an AM sha.in/ alliance with Muslim
Comme.cial 'ank&
Muslim Commercial Ban( Limited and American C6&ress Ban( Ltd. signed a
Memorandum 1f Pnderstanding creating a mutually %eneficial alliance' $hich $ill
ena%le customers of American C6&ress Ban( to use ATM facilities offered %y
Muslim Commercial Ban(. Mr. Taufi? A. Hussain' Country Manager' American
C6&ress Ban( Ltd.' 2a(istan in a sim&le ceremony in 7arachi' signed the M1P.
MCB has setu& an ATM "$itch called MNCT and American C6&ress Ban( is the
fourth foreign %an( to sign the sharing M1P.
"&ea(ing at the ceremony - ACB Country Manager said' LCustomer service
?uality is the cornerstone of ACBOs &hiloso&hy and this initiative $ill significantly
enhance our customer service ca&a%ility for our consumer %an(ing clientsL. He
added LAfter having considered various routes to ac?uire this ca&a%ility ACB
selected MCB as an ideal &artner (ee&ing in vie$ the large net$or( ca&a%ility
and long standing relationshi& $ith MCBL.
MCB $ith a net$or( of over .888 %ranches in the largest &rivate sector %an( of
the country. The Ban( is a mar(et leader in A, hour %an(ing convenience $ith
35
the largest nation$ide ATM net$or( covering .. ma5or cities in all &rovinces of
the country.
C## bank and Muslim Comme.cial 'ank si/n AM sha.in/ a/.eement&
Muslim Commercial Ban( and CITI Ban( signed an ATM sharing agreement
today. By the middle of this year' %oth Ban(sF customers $ill %e a%le to use the
services of either Ban(Os ATMs. "een at the signing ceremony are Mr. Haroon
Basheer "hei(h' Head of Consumer Ban(ing and Information Technology - MCB
and Mr. Nadeem Hussain' )eneral Manager )lo%al Manager )lo%al Consumer
Ban(ing N CITI Ban( 2a(istan $ith their res&ective team mem%ers.
!tanda.d Cha.te.ed G.indlays and Muslim Comme.cial 'ank to launch co,
b.anded c.edit ca.d&
Rated as 2a(istanOs %est %an(s *OdomesticO and foreignO res&ectively+ %y Curo
money maga<ine Muslim Commercial Ban( *MCB+ and "tandard Chartered
)rindlays signed a Memorandum of Pnderstanding to launch the first-ever 5oint
servicing co-%randed credit card in 2a(istan. Pnder the arrangement the
&artnering %an(s $ill have shared as $ell as distri%uted res&onsi%ilities to service
the customers in line $ith their res&ective strengthOs.
The 2artnershi& $ill derive its strength %y com%ining the large diversified
customer %ase of MCB and the trac( record of "tandard Chartered )rindlays in
managing a successful credit card %usiness in 2a(istan. MCB' the largest 2rivate
Ban( in 2a(istan' has over four million accounts domiciled in ..88 %ranches
across the country.
"tandard Chartered )rindlays' the largest foreign %an( in 2a(istan' has over
ninety thousand satisfied card mem%ers and is a leading international &layer in
the cards %usiness. 0ith this ne$ initiative the customers &roduct of the t$o
leading %an(s in 2a(istan. This agreement further strengthens the relationshi&
%et$een these t$o %an(sM earlier this year "tandard Chartered )rindlays signed
an agreement to 5oin MCBOs s$itch:ATM net$or(' the largest in the country.
36
FA-!A* 'A$( *#M#E" to sell Muslim Comme.cial 'ank;s Ru3ee t.a2ele.;s
che:ues&
Muslim Commercial Ban( Limited and /aysal Ban( Limited signed an agreement
for the "ale and &urchase of MCB Ru&ee Travelers Che?ues at all .. /aysal
Ban( %ranches in 2a(istan.
37
Main categories of Account o&ening formB
Ty&e of Account
There is a category of =Ty&e of Account =' the customer can chec( any o&tion to
o&en a certain account.
/ollo$ing are certain (inds of accountsB
Current
2L"-"aving
MCB "aving-#!
7hushali Bachat
2L" Term @e&osit
Ne$ /oreign Currency Account *Current:"aving+
Currency
There is a category of =Currency> in the formB
In this section there are four (inds of currencies are given in $hich MCB o&ens
account. They areB
2a(istani Ru&ee
P" dollar
Nture $5 Acc$unt
There is a category of =nature of account> i.e.
Individual
2artnershi&
"ole &ro&rietor
Doint stoc( com&any
Intr$duct"$n
Before o&ening an account a %an(er should ascertain $eather or not the &erson
desirous of o&ening the account is a desira%le customer. There is Reference
section in the form in $hich the &erson $ho $ants to o&en an account must
&rovide a reference of a &erson $ho has already an account $ith MCB. /or
current account only reference of current account holder is acce&ted $hereas for
saving account reference of any $hether current or saving is allo$ed. 2reliminary
investigation is necessary %ecause of the follo$ing reasonsB
38
To avoid frauds
"afe guard against unintended overdrafts
To avoid negligence
To re&lay in?uiries against clients
To com&ly $ith 2rudential Regulations:La$s
There is a s&ecimen signature card $ith the %an( on $hich the signature of
account holder is to %e ta(en $hile o&ening of his account. And then he is issued
$ith a che?ue %oo(.
It is advised that one must (ee& his che?ue %oo( under &ro&er care %ut there are
cases that &eo&le sometimes lost their che?ue %oo(s. In that case there is an
a&&lication form in the name of manager is availa%le and the customer $ho
$ants to get a ne$ che?ue %oo( fills that form and gives it to the manager then
he is &rovided $ith a ne$ che?ue %oo(. In other case a re?uisition sli& is &resent
in the che?ue %oo( and $henever the customer $ants a ne$ che?ue %oo( he
sim&ly fills that re?uisition sli& and &resents it to manager and gets a ne$ che?ue
%oo(.
Kn$8 y$ur Cust$!er Kn$8 y$ur Cust$!er
In vie$ of recent heightened glo%al efforts to &revent the &ossi%le use of the
%an(ing sector for money laundering' terrorist financing' transfer of illegal:ill-
gotten monies and as a conduit for $hite collar crime etc' the im&ortance of
=7no$ your Customer> has increased. The o%5ective of (no$ing a customer is to
have a fair idea a%out the identity' financial resources and general information
a%out the customer at the time $hen the relationshi& is esta%lished. A %an(er
must have follo$ing information a%out the customerB
<
39
Custome.;s $ame&
Cnter com&lete name as mentioned in original Identity Card:other %usiness
documents.
$atu.e o0 'usiness9P.o0ession&
If the customer is of salaried class then %an(er $ill enter his em&loyerFs name. If
the customer is a %usinessman' trader' sole &ro&rietor' then the %an(er $ill enter
the %usiness name. Also enter the customerFs title:&osition and address of the
em&loyer:%usiness. Addresses $ith 2.1. Bo6 are not acce&ta%le. "imilarly
remar(s li(e =2rivate "ervice>' =Business> are not acce&ta%le' rather s&ecify $hat
ty&e of com&any:%usiness the customer is associated $ith.
In case of individual his attested 2hotoco&y of national identity card or &ass&ort
is re?uired' in case of salaried &erson' attested &hotoco&y of his sarvice card. In
case of &artnershi& attested &hotoco&y of identity cards of all &artners is re?uired
and attested &hoto co&y of =2artner shi& @eed> along $ith a co&y of Registration
certificate $ith registrar of firms. In case of Com&any' Memorandom and Article
of association' certificate of incor&oration' certificate of commencement of
%usiness and attested &hotoco&y of identity cards of all the directors is re?uired.
Add.ess&
Cnter the com&lete residential:%usiness address. 0ithin the %rac(ets you may
also &rovide &rominent address identification mar(s for ease of &hysically
locating the address.
Contact $umbe.&
Cnter home' official' mo%ile' fa6 num%ers and e-mail address *if availa%le+.
40
!3ecial #nst.uctions&
Clear-cut o&erational instructions must %e o%tained from the customers. If the
customer has not given any s&ecial instructions in s&ecified column' the column
must %e cancelled %y dra$ing a line' as this column must not %e left %lan( under
any circumstances.
The %an(ers considered the follo$ing &oints $hile o&ening the accountsB
Re!"ttnces De7rt!ent Re!"ttnces De7rt!ent
The ne6t de&artment I $or(ed in is Remittances de&artment. The incharge of this
de&artment' Mr. 7halid told me that there are four (inds of remittances they deal
inB
Telegra&hic Transfer
Mail transfer
@emand @raft
2ay order
Another tas( of this de&artment $as to issue the traveler che?ue and to give the
ATM card num%ers.
Here is a little detail of all of these $or(sB
Telegra&hic TransferB
It is a facility &rovided %y the %an( through $hich a customer can send or transfer
any amount immediately. The &rocedure for the customer is sim&le. And more
im&ortantly the &erson $ho $ants to transfer the funds may not have the account
in the %an( even then he can avail this facility. The &rocedure is li(e this' a
customer $al(s in and fills an a&&lication form named as =A22LICATI1N /1R
RCMITTANCC> in $hich he mentions the %an( to $hich he $ants to transfer the
funds also the name of the &ayee' his account num%er' also he has to mention
41
his o$n address etc. then there are charges for this s&ecial facility &rovided %y
the %an( and the %an( receives these from the &erson $ho is sending the funds.
/urther there are t$o (inds of telegra&hic transfersB
1rdinary TT
TT
The ordinary TT reaches to its destination after t$o days of its dis&atchment
$hereas sim&le TT reaches to its &ayee immediately %ecause the &ayee %ranch
is informed immediately through tele&hone and fa6.
/or ordinary TT only t$o vouchers are &re&aredB
Commission Goucher
2ostage Goucher
0hereas for TT three vouchers are &re&aredB
Commission
2ostage
Te%e7h$ne chr4es
In the a&&lication form of TT there are t$o o&tions availa%le for the &erson $ho is
sending the funds i.e $hether the &ayees account is credited for the same
amount or &ayee is sim&ly to receive the &ayment in hand.
D$cu!ents Pre7red:
The documents that are &re&ared for the TT areB
TT register
Remittances
Confirmation of ca%le sent
And after$ards $hole of these information are recorded in a %ig register named
asB
Branch out$ard remittance register
And after this &rocedure the res&ective %ranch is informed through tele&hone.
42
Recommendations
This $hole &rocedure is ?uite lengthy and hectic. "o the only recommendation
that could %e given is' it must %e com&uteri<ed
Another tas( of the accounts de&artment is to give the customers the ATM card
num%er. The &rocedure is li(e this that $hen a customer a&&lies for the ATM
card' he is given a certain time to collect the card. 1n due date the customers
gets his card from manager and for safety &ur&ose the ATM num%er remains $ith
the account de&artment and the customer gets his num%er from there.
Tr6e%er che>ue
In account de&tt there are t$o &eo&le $or(ing. 1neFs 5o% is to issue the traveler
che?ue and the other is su&&ose to ma(e the &ayment of TC. This $or( is
se&arated for the &ur&ose of safety and to &revent the frauds.
0hen RTC is issued it is $ritten in Traveler che?ue register and $hen it is &aid it
is &osted in MBI". Traveler che?ue register is used to maintain the stoc( of
RTCFs.
0hen RTC is issued H1 RTC de&tt. Is credited and $hen RTC is &urchased it is
de%ited.
1ne of the &erson has the com&lete register of staffFs salary he maintains a staff
salary register.
The remittance facilities of the MCB are according to the need of the customer.
;our %eneficiary $ill receive the amount even if he:she does not have an MCB
account. The Remit C6&ress facilities the MCB can %e avail in the follo$ing
Ban(:Com&aniesB
43
"emand "emand d.a0t d.a0t
@emand @raft can %e e6&lained as the instrument $hich is &aya%le on demand
as its name im&lies the same' the value of $hich has already %een received. This
instrument is issued %y one %ranch and &aya%le at other %ranch of same %an( or
other %an(Fs %ranch e.g. @@ issued %y MCB &aya%le %y ACBL.
P.ocedu.e o0 issuance&
The customer $ants to ma(e the @@ fills in the same form or a&&lication i.e of
remittances in $hich he mentions the @@' the %eneficiaryFs name' the &lace' the
mode of &ayment i.e' $hther he $ants the &ayee to receive the cash' che?ue or
de%it his account' signature and his name and address
Chec( the a&&lication form.
Commission is charged as &er %an( &olicy. Also e6cise duty I $ithholding ta6 are
recovered as &er a&&lica%le rates.
Cntry is then made in @@ issued register. In the @@ issued register' se&arate folio
is allotted for each dra$ee %ranch and a serial control num%er is a&&lied.
The entries made is @@ &aya%le account is credited and cash is de%ited and
$hen the &ayee receives the cash against @@' @@ &aya%le account is de%ited
and cash is credited.
P.ocedu.e o0 Cancellation o0 ".".
1n receiving the a&&lication for cancellation in $riting along $ith original @@ the
signature of the a&&licant is verified This signature should tally $ith the signature
on @@ a&&lication form. Then cancellation is mar(ed in @@ issued register and
the dra$ee %ranch is Informed a%out cancellation.
#ssuance o0 "u3licate "" #n case o0 *ost9!to3 Payment&
44
A&&lication is received and signature is verified' then the dra$ee %ranch is
informed a%out the loss of @@ and further they are advised to tell the %ranch the
status of @@ i.e $hether it has %een &aid or not. Then a du&licate of @@ is issued
$ith L@u&licate in lieu of original @@ NoSSSS dtedSSSS re7$rted %$st9 $ritten
on its face. The du&licate @@ $ill have the same control num%er.
PA- %R"ER!& PA- %R"ER!&
2ay order is a (ind of instrument issued and &aid in the same %ranch. It is
normally issued for &ayment in the same city.
2rocedure of Issuance of 2ay orderB
The customer fills the remittances a&&lication form and mar( chec( on &ay order.
1n receiving a&&lication he is issued $ith a &ay order after receiving charges. All
&ay orders are crossed i.e =2ayees a:c only>
P.ocedu.e o0 Cancellation o0 Pay o.de.&
1n receiving a&&lication for cancellation of &ay order along $ith the &ay order' it
is cancelled and cancellation charges are recovered.
"u3licate Pay %.de.&
If the &ayment of &ay order has not yet %een made a du&licate co&y of it can %e
made on receiving a&&lication from the customer. The du&licate charges are
recovered from customer.
45
Clearing @e&artment Clearing @e&artment
CLEARIN*: CLEARIN*:
Clearing im&lies a system %y $hich %an(s e6change che?ues and other
negotia%le instruments dra$n on each other $ithin a s&ecified area and there%y
secure &ayment for their clients through the clearing house at s&ecified time in an
efficient $ay.
C%er"n4 H$use:
In &ast "tate %an( $as indulged in clearing function i.e for the settlement of
mutual o%ligations of different commercial %an(s. As all %an(s have their
accounts and (ee& a certain &ercentage of the cash de&osits as a reserve $ith
Central Ban(' it %ecome easy to set u& their mutual o%ligations %y off-setting their
accounts.
The claim of %an(s against each other is settled %y sim&le transfers from and to
their accounts. These methods of settling accounts though the central %an('
a&art from %eing convenient is economical as regards the use of cash since
account are ad5usted through accounts' there is usually no need for cash.
At &resent this function of state %an( is &erformed %y NI/T. And no$ clearing
house is a &lace $here NI/TFs re&resentatives of all scheduled %an(s sit together
and interchange their claims against each other $ith the hel& of controlling staff
of "tate Ban( of 2a(istan and $here there is no %ranch of "tate Ban( of 2a(istan
the designated %ranch of National Ban( of 2a(istan acts as controlling mem%er
instead of "tate Ban( of 2a(istan.
46
Reasons o0 Cancellation o0 Membe.shi3&
0hen a %an( is no longer a scheduled %an(.
0hen any %an( fails to meet its lia%ilities.
0hen It is &rohi%ited to receive fresh de&osits %y "tate Ban( of 2a(istan or
Central )overnment.
Ad6nt4es $5 C%er"n4:
T As clearing does not involve any cash etc and all the transaction ta(es
&lace through %oo( entries' the num%er of transactions can %e unlimited.
T No cash is needed' as such the ris(s of ro%%ery' em%e<<lements and
&ilferage are totally eliminated.
T As ma5or &ayments are made through clearing' the %an(s came manage
cash &ayments at the counters $ith a minimum amount of cash in vaults.
T A lot of time' cost and la%or are saved. "ince it &rovides an e6tra service
to the customers of %an(s $ithout any service charges or costs' more and
more &eo&le are inclined and attracted to$ards %an(ing.
47
Rules 6 Re/ulations o0 Clea.in/ House&
TimingB - Monday through "aturday
.st Clearing .8.88 A.M.
And Clearing A.#8 2.M.
Che?ues and other negotia%le instruments are sent through NI/TFs
re&resentative for e6change.
All the che?ues and negotia%le instruments must %e &ro&erly stam&ed and
suita%ly discharged
Cach and every Che?ue must %e accom&anied %y an o%5ection memo
$hen returned un&aid duly initialed.
Cach %an( is re?uired to maintain sufficient funds in the &rinci&al account
$ith "B2 to meet the &ayment o%ligations.
The "tate Ban( of 2a(istan de%its the account of each mem%er of the
clearinghouse $ith the &ro&ortionate $or(ing e6&enses incurred on the
o&eration of clearing house. These e6&enses are very nominal.
Funct"$n"n4 $5 C%er"n4 H$use:
All the scheduled %an(s $hich are the mem%er of clearing house' must maintain
accounts $ith "B2' %y de%it and credit to $hich the clearing settlements are
made. If on a &articular day' a %an( delivers Che?ue and other negotia%le
instruments $orth more than the total amount of Che?ue received %y it that
%an(s account $ith "tate Ban( of 2a(istan $ill %e credited $ith the differential
amount. If on the other hand the total amount of Che?ue and other negotia%le
instruments dra$n on a certain %an( %y other %an(s is more than the total
48
amount receiva%le %y it from other %an(s' then this %an(Os account $ill %e de%ited
on that day.
The Che?ue delivered to the other %an(s through NI/TFs re&resentatives for
clearing are called out$ard clearingM $hereas Che?ue received from the
re&resentatives of other %an(s for &ayment are called in$ard clearing.
H$8 sett%e!ent "s d$ne "n NIFTA
2resume that MCB got the Che?ue' $hich are dra$n on PNI1N BAN7' PBL and
ACBL for amounts Rs.!8'888:-' Rs.#8'888:-' Rs..!'888:- res&ectively' its total
%eing Rs.4!'888:-. It means that this amount is to %e credited to MCB A:c $ith
".B.2. 1n the other hand the Che?ues dra$n on MCB are from PNI1N BAN7'
PBL I ACBL of Rs..!'888:- Rs.-!'888:- and Rs.#8'888:- res&ectively' its total
%eing Rs..'A8'888:-. It means that this amount is to %e de%ited from MCB A:c.
The difference %et$een Rs. 4!.888:- credit and Rs..A8.888:- de%it is Rs.
A!'888:- de%it' $hich means the house' is against MCB for Rs. A!'888:-.
If $e se&arately sho$ it then'
MCB has to receive Rs.!8'888:- from PNI1N BAN7 and to &ay Rs..!'888:- to
PNI1N BAN7 so difference is Rs.#!'888:- credit.
MCB has to receive Rs.#8'888:- from PBL and to &ay Rs.-!'888:- to PBL so
difference is Rs.,!'888:- de%it.
MCB has to receive from ACBL Rs..!'888:- and to &ay Rs.#8'888:- to MCB so
difference is Rs..!'888:- de%it.
*RAND TOTAL: U #!'888' - ,!'888' -.!'888 V -A!'888
i.e. Rs.A!'888:- de%it.
49
Hence MCB A:c $ith "tate Ban( of 2a(istan $ill %e de%ited $ith Rs.A!'888:- and
the contra $ill %e other %an(s accounts res&ectively. This is called as L@e%it and
Credit RuleL.
The amounts and num%er of instruments received are entered in the House Boo(
from the main schedules of the res&ective %an(s.
The "tate Ban( of 2a(istan maintains t$o ma5or %oo(s for clearing house
&ur&ose B-
HOUSE RE*ISTER&
This %oo( contains the information a%out the amounts and num%er of che?ues
received and delivered %y each %an( is noted do$n. Its columns are 5ust li(e our
clearing house-&age.
HOUSE BALANCE BOOK:
This %oo( contains the amount and num%er of che?ues received and delivered
%y each %an( as $ell as the amounts $hich are to %e received and &aid to
res&ective %an(s through their accounts %y "tate Ban( of 2a(istan is $ritten
do$n. This %oo( has the follo$ing columnsB-
In"t"%
T$ Py
A!$un
t
N$& $5 Che>ues
Rece"6ed@De%"6ere
d
N!
e $5
Bn:
Rece"6e
d
A!$unt
T$
Rece"6e
d
A!$unt
In"t"%s
Both sides of this %oo( are %alanced. Gouchers are &re&ared from the sli&s
received from the res&ective %an(s and the amounts are com&ared $ith this
%alance %oo(.
"ummary of Clearing House 0or(ingB
50
The $or(ing of clearing house may %e summari<ed as underB-
The instruments are delivered to the res&ective %an(s.
The instruments dra$n on our Ban( are received from other %an(s.
The amount and num%er of instruments received are entered in the House
Boo( from the main schedules of res&ective %an(s.
The amount of instruments delivered' received and the difference is
$ritten on a /igure sli& &rovided in the clearinghouse and the sli& is
returned to the su&ervisor.
The instruments are arranged %ranch-$ise.
"chedules are detached and (e&t safely.
OUT,ARD CLEARIN* AT THE BRANCH:
The follo$ing &oints are to %e ta(en into consideration $hite an instrument is
acce&ted at the counter to %e &resented in 1ut$ard ClearingB
The name of the %ranch a&&ears on its face $here it is dra$n on.
It should not %e stale or &ost dated or $ithout date.
Amount in $ords and figures does not differ.
"ignature of the dra$er a&&ears on the face of instrument.
Instrument is not mutilated.
There should %e no material alteration if so' it should %e &ro&erly
authenticated.
If order instrument' suita%ly endorsed and the last endorseeOs account
%eing credited.
Cndorsement is in accordance $ith the crossings if any.
The amount of the instrument is same as mentioned on the &aying-in-sli&
and counterfoil.
The title of account on the &aying-in-sli& is that of &ayee or endorsee *$ith
the e6ce&tion of %earer che?ue+.
51
If an instrument is in order then our %an(Os s&ecial crossing stam& is affi6ed
across the face of the instrument. Clearing stam& is affi6ed on the face of the
instruments' &aying-in-sli& and counterfoil *The stam& is affi6ed in such a manner
that half a&&ears on &aying-in-sli& and half on counterfoil+. The instrument is
suita%ly discharged' $here a %earer che?ue does not re?uire any discharge and
also an instrument in favor of a %an( need not %e discharged. The instrument
along $ith &aying-in-sli& is retained $hile the counterfoil is given to the customer
duly signed. Then the follo$ing ste&s are to %e ta(enB-
The &articulars of the instruments and the &ay-in-sli&s or credit vouchers
are entered in the 1ut$ard Clearing Register.
"erial num%er is given to each voucher.
The register is %alanced' the credit vouchers are se&arated from the
instruments and are released to res&ective de&artments against
ac(no$ledgement in the register.
The instruments are arranged %an(-$ise.
The schedules are &re&ared in tri&licate' t$o co&ies of $hich are attached
$ith the relevant instruments and the third is (e&t as office co&y.
The house &age is &re&ared from schedules in tri&licate.
The 1fficer Incharge $ith %ranch stam& signs the schedules and house
&ages.
The grand total of the house &age is ta(en and agreed $ith that of the
out$ard clearing register.
The instruments along $ith du&licate schedules and house-&age are sent
to the Main 1ffice.
Ho$ever the amount is (e&t in float till final status of various instruments is
(no$n from res&ective &aying %an(s in second dealing.
52
The entry of the instruments returned un&aid is made in Che?ues Returned
Register. If the instrument is not to %e &resented again in clearing then a covering
memo is &re&ared. The covering memo along $ith returned instrument and
o%5ection memo is sent to the customer $ho de&osited the same in his account.
IN,ARD CLEARIN* OF THE BRANCH:
The &articulars of the instruments are com&ared $ith the list.
The instruments are detached and sorted out de&artment-$ise.
The entry is made in the In$ard Clearing Register *"erial Num%er'
instrument num%er' Account num%er and amount of instrument is $ritten+.
The instruments are sent to the res&ective de&artments against
ac(no$ledgement in the In$ard Clearing Register.
The instruments are scrutini<ed in each res&ect %efore honoring the same.
OUT,ARD CHEBUES RETURNED UNPAID:
These are the che?ues returned un&aid %y us &resented to us in In$ard Clearing
due to some o%5ections.
IN,ARD CHEBUES RETURNED UNPAID:
These are the che?ues returned un&aid to us' $hich $ere lodged %y us in
1ut$ard Clearing.
RETURN OF CHEBUES AFTER CLEARIN* HOUSE:
"u&&ose all che?ues received in the in$ard clearing are &assed and later on it is
found that a che?ue should have %een returned. In such cases' $e contact the
collecting %ranch and re?uest them not to ma(e &ayment against the &roceeds of
the che?ue $hich $as not returned un&aid %y us in due time. The che?ue $ith
53
o%5ection memo along $ith a covering letter is sent to the collecting %ranch'
ma(ing re?uest to issue a &ayment order in our favor.
To %alance the cash-cum-day %oo( $e may de%it "us&ense A:c "undry @e%tors
$ith the a&&roval of the manager. 0hen the &ayment order is received' it is
lodged in clearing and the "us&ense A:c -"undry @e%tor is ad5usted accordingly.
SPECIAL CLEARIN*:
In addition to the normal clearing function at Clearing House it is mutually agreed
to hold an e6tra clearing at the Clearing House on a &articular day and time'
$hich is (no$n' as L"&ecial ClearingL. It is arranged due to rush of $or( arising
out of say' more holidays declared %y the Central )overnment at a time' %ut
normally s&ecial clearing is held on last $or(ing day of our half yearly and yearly
closing' i.e. #8th Dune and #.st @ecem%er every year.
'ills Collection&
The %ills collection is the (ey de&artment in each and main %ranch. The o%5ective
of this de&artment is to receive the che?ue of different %an( of different area.
1ften the che?ue is dra$n to the customer of another %an( or account holder of
the MCB and similarly the customer of another %an( dra$ che?ue to MCB
account. In %oth cases the che?ue is cleared' endorsement conformed' or ta(es
the dis%ursed guarantee. And then de&osit to the corres&onding de&artment or
%an(s or $hatever the case may %e.
F"nnc"% Stte!ents
54
S,OT ANAL)SIS
55
!RE$GH!
MCB is "uccessive and Mar(et oriented.
MCB investing huge sums on HR develo&ment and training.
Customer default rate is lo$er as com&ared to other %an(s.
MCB has the largest ATM net$or( in the country.
Meeting the challenges of latest Technology %y introducing "mart card remit
e6&ress' mo%ile %an(ing etc.
1ne of the ma5or strengths of MCB is that it has very sta%le de&osit %ase.
MCB is largest &rivate %an( in 2a(istan $ith around .888 %ranches' $hich
cover almost every &art of 2a(istan.
The %an( en5oys com&etitive advantage over other %an(s in 2a(istan.
The %an( en5oys com&etitive &rofita%ility in the industry.
MCB has ca&tured ma5ority of &otential customers in 2a(istan.
MCB has the accounts of %ig organi<ations li(e 1)@CL' 2TCL' C/P' 2TC
etc.
56
7EA($E!!E!
Lo$ motivational levelM non-aggressive mar(eting.
Cm&loyeesF dissatisfaction due to ill treatment and im&ro&er re$ard
system.
/avoritism and Ne&otism in recruitment.
Interest rate is very meager.
@ecision ma(ing &rocess is very slo$.
It is not having greater no. of %ranches a%road.
Though ATM net$or( is the largest in 2a(istan' still some &otential areas
donFt have the ATM.
MCB RTC is usea%le only in 2a(istan.
"ome management &ositrons needed are not &rofessional.
Although most of the %ranches are com&uteri<ed no$' still some im&ortant
%ranches donFt have com&uters.
%33o.tunities&
Leasing sector is gro$ing in 2a(istan for the last t$o to three years $hich
&rovides o&&ortunity to MCB to go ahead in this area as $ell.
MCB is &roviding Consumer /inances at com&aratively lo$er rates $hich
&aves a $ay to gra% more customers
/inancing to small:medium cottage industries $ill definitely increase its
advances and &rofita%ility as $ell.
57
Islamic Trading Based Ban(ing can enhance the %usiness of the %an(.
HREA!
1ther &rivate commercial %an( $ith sound &rofita%ility is also a threat to
MCB e.g. PBL' Alfalah' HBL etc.
/or the last of many years' 2a(istan is facing economic and &olitical
insta%ility $hich is a %ig threat.
Afghan $ar and Ira? $ar has a dee& effect on the economy of 2a(istan'
$hich may affect MCB.
/oreign %an(s are flourishing in field of consumer financing.
2eo&le donFt &refer %an(ing culture. They mostly &refer cash transactions
58
,$r: Per5$r!ed By Me
I 5oined Muslim Commercial Ban(' 7ot /areed Branch' "ahi$al .3
th
Duly A883.
/irst day I reached there at 4F1 cloc( and re&orted to manager $ho introduced
me a%out the functioning of the %ranch and its staff. @uring these t$o months I
$or(ed in different sections of the %ranch to learn the ma6imum &ractices of
%an(ing system.
GE$ERA* 'A$(#$G
/irst of all' I $as as(ed to $or( in different sections of )eneral Ban(ing. Here I
$as attached Mr. Aya< Ahmad $ho has good command on this section. Here $e
dealt $ith ne$ customers $ho $anted to get information a%out the %ranch and
$ill to deal $ith the %ranch. This is a very interesting de&artment %ecause here
$e met &eo&le of different ty&es and deal $ith them accordingly.
In this section' I o%served the follo$ing functionsB
CHE=+E A C%+$ER.
A che?ue is &resented on the counter $ith the t$o signatures of the %earer on
the %ac( of the che?ue. 1&erationFs manager verifies the follo$ing &ointsB
The che?ue num%er
Che?ue @ate
The che?ue signature $ith the signature s&ecimen card &osition in the officer
signature
received at the time of o&ening the customerFs account in the &resence of the
officer
Che?ue amount in figure and $ords
Branch stam& in the front of the che?ue
Chec( the nature of che?ue' %earer che?ue' cross che?ue etc.
CHE=+E PA-ME$ PR%CE"+RE.

Receiving and scrutini<ing the che?ue
/i6ing the stam&
"cri&ting and recei&t %y the authori<ed officer
59
#!!+A$CE %F "EMA$" "RAF
A demand draft is &rovided to the client in $hom he has to s&ecify that on $hich
%an( it is dra$n. The amount %oth in $ords and figures is $ritten on the demand
draft.
'#**! C%**EC#%$! "EPARME$
I s&ent second $ee( of my training in %ills collection de&artment.
Miss "umaira is the in charge of this section. Here $e collected utility %ills li(e
electricity %ill.
'#**! REM#A$CE "EPARME$.
It is most im&ortant and interesting de&artment. This section deals $ith the
transfer of money from one %ranch to another %ranch. Nearly si6 drafts issued
daily from this de&artment.
Here I (no$ the amount transferred and $hat is the &rocedure. This de&artment
also deals $ith T.T. transfer of money. I $or(ed nearly three $ee(s in this
de&artment.
"EP%!# "EPARME$.
@e&osit de&artment deals $ith current' saving fi6ed accounts for a long &eriod.
In current account the %an( does not offer any interest you can de&osit or
$ithdra$ any amount during %an(ing hours. In 2L" account $e can only
$ithdra$ u& to Rs. A!111: $ithout notice if you $ant to $ithdra$ more than a
notification must he given to the %an(. In /i6ed account &eo&le normally of old
age are more interested %ecause they get a lum& sum amount every month as a
mar(u& or interest. These accounts are normally for t$o to five years.
C*EAR#$G "EPAR ME$.
In clearing de&artment $e deal $ith che?ues of our clients dra$n on different
%an(s. Here I also $atched the $or(ing of clearing house u& to .A.88 &m all the
%ranches send their che?ues to main %ranch. 0here they stored and &resented
in the "tate Ban( of 2a(istan.
60
FINDIN*S
ormally $hich $e study the &erformance of Muslim Commercial Ban( it is
considered that on the $hole %an( is contri%uting a lot to$ards the
industrial develo&ment and ca&ital formation in the country. As it is
e6hi%ited from the data regarding the %an(s financial &erformance as sho$n in
this re&ort that the %an( is sharing ma5or %an(ing %usiness of the country. /urther
the &olicies and schemes as are introduced and carried on %y the %an( are of
great source of hel& in industrial and trading gro$th. All these things reflect the
great and valua%le efforts on the &art of e6ecutive command of the %an( $hich is
finally res&onsi%le for the &roductive &erformance of the %an(. But as it is said
that nothing is &erfect in this $or(. This might stand true in the case of Muslim
Commercial Ban( also.
"o far as my o$n o%servations are concerned. I have concluded a ma5or
dra$%ac( in the inner current %an(ing system. In addition to the I have also learnt
some disci&linary $rong &ractices on the &art of staff of the %an( %ranches.
N
$% =+A*#- #$ A#+"E.
The attitude of the %an(ers $ith all of their customers is not the same' they &ay
more attention and good service to some of the customers and neglect a ma5or
&ortion of them. "ome of the customers a&&roach to the %an( officials and get
their $or( done %efore othersM it is not a good &ractice.
$% PR%PER G+#"A$CE
There are so many customers $ho donFt (no$ ho$ to fill che?ues' &ay-in-sli&'
a&&lication form' etc. They $aste a lot of time of the %an( stall.
RECOMMANDATIONS
61
PR%PER P*A$$#$G
Ban( should ma(e a &lan to gear u& its recovery efforts on $ar footing and
reorgani<e the recovery function of glo%al %ases. In addition' %an( should tighten
u& control on
e6&enditure.
PR%PER G+#"A$CE.
Ban( should ado&t such an induction &lan that $hen a customer o&ens his
account $ith the %an( he should %e su&&lied $ith a %oo(let $hich ena%les him to
(no$ the &rocedure of filing the che?ues' &ay-in-sli& etc. It $ill save a lot of time
of the %an( staff after$ard during the conduct of the account of that customer.
"#)#!#%$ %F 7%R(.
The %illing system of MCB must %e im&roved to facilitate the customers and
$or(ers. The $or( should %e divided among the staff e.g. collection of %ills.
Countering of cash and then entry of these.
CHEC( %F E>PE$"#+RE!.
C6&enditure must %e controlled. 0hich are very high and unnecessaryR
'%RR%7#$G A *%7 C%!.
@e&osits must %e ta(en at a lo$er cost and given at higher interest rates.
62

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