INTERNSHIP REPORT ON

MCB BANK
MAIN BRANCH ABBOTTABAD (0585)

Submitted by: Sandeel Khan

Roll# F-11-001
MBA Finance

Supervised by: Dr. Amjad Rafiq

Government College of Management Sciences

Abbottabad
SESSION: 2011-2015

INTERNSHIP REPORT ON
MCB BANK
MAIN BRANCH ABBOTTABAD (0585)
Submitted by: Sandeel Khan

Roll# F-11-001

Supervised by: Dr. Amjad Rafiq

This internship report is submitted in partial fulfillment of the
requirements for the degree of Master of Business Administration
awarded by the Hazara University,
Mansehra

Government College of Management Sciences

Abbottabad
SESSION: 2011-2015

Government College of Management Sciences

Abbottabad

APPROVAL SHEET

Approval Committee

1. External Examiner
Mr.______________________ Signature______________________

2. Supervisor
Dr. Amjad Rafiq

Signature______________________

Designation Associate Professor

3. Head of department
Mr. Mushtaq Ahmad____________ Signature_____________________
Designation Principal

DEDICATION

I Dedicate this to my beloved parents, teachers and friends

Who helped me throughout by being
Wonderfully supportive and helpful,
For making this report.
I could never have been able to complete this Report.

ABSTRACT
Prerequisite of MBA study is to undergo internship. I got the opportunity to
Join the MCB Main branch for the said purpose for a period of 8 weeks.
Practical involvement was a great experience as interactions both with the experienced
executives and clients cemented the base of knowledge I have been acquiring in the
classroom.
This internship report includes the material about MCB and different departments along with
their working procedure.
For the completion of this project I met the various persons of these organizations. As far as
my knowledge and hard work is concerned this report will provide a good in sight of MCB. I
have special thanks for following persons who have encouraged & guide me lot. I learned
very much under their guidance.
Amjad Khan Jadoon (Branch Manager)
Syed Adil Shah ( Forex Officer)
Adnan Riaz Qureshi (Remittence Officer)
It is the requirement of the MBA course HAZARA University of Pakistan, which all students
of MBA have to spend two months in any organization to get practical exposure and to get
familiarized with the ways to live in the organizational environment which is dramatically
different from the educational environment. That two months period called Internship Period
, if spent properly and sincerely, enables the students to be more confident, more
knowledgeable, more responsible and, above all, more committed to its work in the practical
field. I have also been assigned to do internship of eight weeks period in MCB. It has enabled
me to understand the practical picture and sharpen my decision making power and utilizing
the resources in an effective manner, so that my resources generate maximum profit.
In preparing this report, I have put all of my best efforts and tried my level best to give
maximum knowledge. Despite of my all the coherent efforts, I do believe that there will
always be a room for improvement in the efforts of learner like me.

Table of Contents

CHAPTER 1
INTRODUCTION TO THE REPORT

01

1.1 Introduction

01

1.2 Background of the study

01

1.3 Purpose of the Study

01

1.4 Scope of the study

01
1.5 Limitation of the study

02

1.6 Objectives

02

1.7 Methodology

02

1.7.1 Primary Data

02

1.7.2 Secondary Data

02

1.8 Organization

03

1.9 HISTORY OF MCB BANK LIMITED

03

1.10 VISION AND MISSION OF MCB

07

1.11 Values of MCB

08

1.12AWARDS OF MCB

09

1.12.1 EUROMONEY AWARDS

09

1.12.2 ASIA MONEY AWARDS

10

CHAPTER 2
ROLE OF SECTOR AND ORGANIZATION

12

2.1 Introduction

12

2.2 Overall respective sectors in Pakistan

12

2.3 Commercial Banking In Pakistan

12

CHAPTER-3
ORGANIZATIONAL STRUCTURE OF MCB

15

3.1 Introduction

15

3.2 STRUCTURE ON THE BASIS OF EXECUTIVES

16

3.3Departmentation On The Basis Of Employees Designation

17

3.4 Geographical Departmentation of MCB

18
3.5 STRUCTURE ON THE BASIS OF GEOGRAPHICAL LOCATION

19

3.6 STRUCTURE ON THE BASIS OF FUNCTIONS

20

3.7Departmentation On The Basis Of Functions

20

CHAPTER-4
DEPARTMENTALIZATION OF MCB AND ITS FUNCTION
22

4.1 Cash Department

22
4.1.1 Cash Receipt

23

4.1.2 Payments

23

4.2 Account Opening Department

23

4.3 Clearance Department

24

4.4 Remittance Department

25

4.5 Advances Department

25

4.6. Forms of lending

25

4.6.1 Cash Finance

26

4.6.2 Overdraft

26

4.6.3 Fixed loans

26

CHAPTER 5
PRODUCT AND SERVICES

27

5.1 Deposits

27

5.2 Services and Products

28

5.2.1 Khushali Bachat Account (KBA):

28

5.2.2 Hajj Mubarak Savings Scheme

28
5.2.3 Khanam Bachat Account Scheme (KBA)

29

5.2.4 PLS Savings

29

5.2.5 Export Promotion Scheme

30

5.2.6 Credit Cards

30

5.2.7 Rupee Travelers Cheques (RTC)

30

5.2.8 Automated Teller Machines (ATM)

30

5.2.9 Capital Growth Certificate Scheme (CGC)

30

CHAPTER-6
FINANCIAL ANALYSIS

32

6.1 RATIO ANALYSIS

32

6.2 Explanation of Financial Ratios

38
6.3 BALANCE SHEET

41

6.4 Income Statement

42

6.5 VERTICAL ANALYSIS

43

6.6 HORIZONTAL ANALYSIS

45

6.7 RESULT ON THE BASIS OF VERTICAL & HORIZONTAL ANALYSIS

47

6.8 SWOT ANALYSIS

48

6.9 PEST ANALYSES

55

CHAPTER 7
FINDINGS AND RECOMMENDATIONS

58

7.1 Future Prospects of the Organization

58

7.2 Conclusions

59

7.3 Recommendations for Improvement

60

REFERENCES

62

ACKNOWLEDGEMENT
I express my gratitude to Almighty Allah for his unlimited graciousness because Words are
scarce and knowledge is limited to express his majesty. I have the pearls of my eyes to admire
the blessings of the compassionate, omnipotent, the Merciful and the beneficent Allah who is
the entire source of knowledge and wisdom. Due to his blessings, I become able to contribute
this comprehensive assignment towards the deep ocean of knowledge already exist. Heart is
warm with love and thoughts have turned to the city of knowledge The Holy Prophet
(P.B.U.H) His saying Learn from to Cradle to Grave inspired the strong desire in me to
undertake this course of valuable studies. I deem it as a great opportunity to offer my heartiest
gratitude to my venerable teacher Dr. Amjad Rafiq, for his great efforts to make us
understand and to conduct this kind of activities of giving the great opportunity for learning
beyond your existing area of scope. I am thankful to bank manager for his nice co-operation
and proper guidance throughout my internship. Express my heartiest and sincerest sense of
gratitude to all of them for providing megrand exposure to gain multifarious experience, May
Allah The Almighty bless my parents and well-wishers who are the permanent source of
prayers for me and my successes in this world.

Sandeel Khan

LIST OF ABBREVIATIONS
MCB

Muslim Commercial Bank

IDBP

Industrial Development Bank of Pakistan

SBP

State Bank of Pakistan

MNCs

Multi-National Companies

ADBP

Agricultural Development Bank of Pakistan

L/C

Letter of Credit

L/G

Letter of Guarantee

ATM

Auto Teller Machine

APD

Assets Product Division

IPD

Investment Product Division

IT

Information Technology

BTF

Balance Transferred Facility

NIT

National Investment Trust

FC

Foreign Currency

PLS

Profit & Loss Sharing

HRM

Human Resource Management

SBU

Strategic business unit

NDFC

National Development Finance Corporation

RTCs

Rupee Travelers Cheques

MT

Mail Transfer

ETD

Electronic Technology Department

MIS

Management Information System

FDD

Foreign Demand Draft

FS

Financial Statement

ETD

Electronic Technology Department

EXECUTIVE SUMMARY

This internship report is very vital part of my MBA. The purpose of this report is to
explore and learn the potential of Consumer Banking in Pakistan and commercial
banking and to find out the challenges & opportunities faced by banking industry. In
this report comparison of consumer financing products of local and foreign banks have also
been done and the problems faced by borrowers and lenders have also Consumer finance was
backed by the SBP to give boost to economic growth through demand-pull pressure.
Various instruments of consumer finance have attractions for consumers for reasons that
are dictated by personal desires, income constraints, paying capacity, social needs and
access to getting loans. Rising interest rates, spiraling service charges and deterioration in
quality of service are bringing down the demand for personal loans, credit cards and auto
financing. Consumer banking is facing new challenges as a result of interest hikes. The real
beneficiaries of consumer finance are the people who did not have capacity to purchase
expensive household items in a single go but could afford them because of consumer
finance, the commercial banks that have been earning large interest and huge returns on
their investment in consumer finance and the economy that got impetus for growth.
Local banks are preferred by people for general banking services because of their low
charges and wide branch network but for consumer banking people prefer foreign banks
because of their good customer service and wide range of facilities. Despite of so many
changes in consumer financing regulations banks customers are still facing hidden
charges problem, difficulty in getting consumer loans and not highly satisfied by tenure of
consumer loans.
The banking structure in Pakistan comprises of the following types, State Bank of Pakistan,
Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks,
specialized credit institutions. The state bank of Pakistan is the Central bank of the country
and was established on July 01, 1948. The network of bank branches now covers a very large
segment of national economy.

The State Bank of Pakistan issues the shares of these

periodically. Bank employees and other common peoples can also purchase these shares and
earn profit. In 1956, MCB transferred its registered office to Karachi, where the Head Office
is presently located. In April 1991, MCB became Pakistans first privatized bank.

To open an account the customer has to meet the general banking manager with an introducer.
The procedure begins with the punching of account opening form to the customer file i.e.
customers master file. Before closing any account, bank send letter to the account hold for
informing him that his account is going to be closed. There is need an approval form higher
authority to close any account. Current deposits are those which are payable to bank
whenever demanded by the customer. Bank does not pay any profit on current deposits. The
following are the financial products/services of MCB Malay Mail Scheme, PLS Account,
Saving 365 Account, Capital growth certificate scheme, Fund Management Scheme,
Khushali Bachat Account, Term/ Fixed Deposits and others like night banking, credit cards,
traveler cheques.
In remittance department like any other bank MCB also have instruments for transferring of
money, Telegraphic Transfer, Mail Transfer. In cash department both deposits and
withdrawals go side by side. This department works under the accounts department and deals
with cash deposits and payments. This department maintains the following sheets, books, and
ledger of account cash received voucher sheet.
Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. The clearing in
Karachi at MCB or other banks is being done through NIFT (National Institute of Facilitation
Technology).
Bank provides this facility to the people who need advance money to meet their requirement.
Party dealing with other banks financial condition of borrower business and as a first step
credit proposal is being made. MCB provides advances, which are two types, Secured
Advances, Unsecured Advances. MCB usually classified advances in to following types
Agricultural Advances, Commercial Advances Industrial Advances. Commercial Advances
are of following types
Demand Finance, Cash Finance, Foreign bills purchased, Finance against imported goods,
Finance against foreign bills, Export Refinance Part I (Pre Shipment) & others. Banks
Agriculture division deals with the agriculture advances. Bank provides the Agriculture
Advances in order to enhance and support the agriculture sector of the country. Farm Credit
& Non Farm Credit. In foreign exchange, MCB is dealing Foreign Currency Accounts,
Foreign Remittances, and Foreign Bills for Collection, Imports & Exports Foreign currency
accounts & the foreign currency department deals with the following types of accounts,
Dollar Khushali account, Current account, Saving bank account, Term deposit, Prime
Currency Scheme. Foreign accounts are convertible on floating rate available to the bank.
Letter Of Credit facility is being provided by MCB in foreign exchange.