Professional Documents
Culture Documents
Submitted By:
Abdul Kareem
BS (BA)-V (B)
Session 2013-2017
Supervised To:
MISS PERKHA KHAN
ACKNOWLEDGEMENT
It is not possible to prepare an internship report without the assistance &encouragement of other
people. This one is certainly no exception.
First of all I acknowledge with a deep sense of reverence, my gratitude towards my parents and
member of my family, who has always supported me morally as well as economically.
I am extremely thankful and pay my QASMS for giving me a opportunity to do practical work in a
well reputed organization.
I extend my gratitude to my supervisor Mr.Hamza (Branch operation manager) for his valuable
guidance and support on completion of this internship.
At last but not least gratitude goes to all of my friends who directly or indirectly helped me to complete
this internship report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
EXECUTIVE SUMMARY
This report has been prepared after getting internship in MCB (1412) branch General Bus Stand Road
Multan. QAU has given me task to done it in any organization. So I have selected the MCB Bank for
getting practical knowledge. I have divided my reports in four chapters. The first chapter of my report
consists on History and brief overview of MCB, its board of Directors and review of committee. Its
mission, Vision statement and cover value of MCB. Further Readers will able to understand Branch
structure and department of MCB (1412) where I done my internship.
The second chapter of my report is consisting on my personal experience and learning during my
internship. In that part I have mentioned all departments I worked and got practical knowledge. These
departments are Account Opening, Department, Remittance Department, Clearing Department, Online
transfer department and cash management department.
The third chapter of my report is consisting on the SHOT analysis of MCB where readers could able to
understand MCB strength, weakness, opportunity and threats. After that in chapter four I have also
written conclusion and necessary recommendation in light of my finding and observation.
Table of Contents
4
01
04
05
07
Chapter:02InternshipExperienceandlearning......................................................................08
2.1 Branch structure and departments:......................................................................................08
2.2 Account Opening Department...........................................................................08
2.2.1 Current account..10
2.2.2 Saving account...10
2.2.3 Term deposit account11
2.2.3 Clearing Department......................................................................................11
2.2.3.1 Inward clearing............................................................................12
2.2.3.2 Outward clearing..........................................................................14
2.2.4 Remittance Department................................................................................14
2.2.5 Online Department.........................................................................15
2.2.6 Cash Management Department..................................1
2.2.6.1 Cash deposit................................................................................18
5
20
3.1 Strengths.............................................................................................................................20
3.2 Weakness.............................................................................................................................21
3.3 Opportunities.......................................................................................................................22
3.4 Threats 23
Chapter:04Recommendations&Conclusion..........................................................................25
4.1 Conclusion ........................................................................................................................25
4.2Recommendations.25
4.2 ANNEXURE.......................................................................................................................28
References
29
Chapter #1
1.1Introduction to MCB
MCB Bank Limited, with more than 60 years of experience as one of the leading
banks in Pakistan, was incorporated on July 9 in 1947. The bank has journeyed
remarkable tenure of more than half a century of competitively edged and well
positioned heights of success by deploying quality banking, heads on technological
developments, professionally leading management and prudent and ethical work
methodologies. MCB was nationalized along with other private banks in 1974 as part
of Government of Pakistan's economic reform movement and was later privatized to
Nishat Group lead consortium in 1991.Since privatization, MCB's growth has been
phenomenal. Today, MCB in one of the largest foreign banks in Sri Lanka, the first
bank in Pakistan to launch Global Depository Receipts (GDR) in 2006, has strategic
foreign partnership with May bank of Malaysia which holds 20% shares in MCB
through its wholly owned subsidiary Mayban International Trust (Labuan) Berhad
since 2008, has international indirect regional presence in Dubai (UAE), Bahrain,
Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic network of
over 1,150 branches and over 690 ATMs across Pakistan with a customer base of 4.96
million.MCB is reputed as one of the soundest financial institution and as one of the
leading banks in Pakistan with a deposit base of Rs.545 billion and total assets of Rs
766 billion. The bank is versed as one of the oldest and most responsible banks in
Pakistan and has played pivotal role in representing the country on global platforms
while being one of the few institutions that are recognized and traded in the
international market.
(https://www.mcb.com.pk).
1.2 Vision statement
To be the leading financial services provider, partnering with our customers for a
more prosperous and secure future
(https://www.mcb.com.pk/about-mcb/vision-mission)
1.3 Mission statement
We are a team of committed professionals, providing innovative and efficient
financial solutions to create and nurture long-term relationships with our customers.
In doing so, we ensure that our shareholders can invest with confidence in us.
(https://www.mcb.com.pk/about-mcb/vision-mission)
1.4 Head Office
MCB Head Office is currently situated at Lahore. The working of circle office is
to control and regulate the functions of branches which are under in its control. The
functions of circle office are to mobilize the deposits and receive reports from
branches. Circle office is like a mini head office. Agents and correspondents of MCB
are in all commercial cities of the world. Circle office is divided in the following
division.
1) Credit Management Audit and Inspection
2) Human Resource
3) Marketing and Development
(https://www.mcb.com.pk/about-mcb/Head-Office)
1.5.1 Integrity
We are the trustees of public funds and serve our community with integrity. We
believe in being the best at always doing the right thing. We deliver on our
responsibilities and commitments to our customers as well as our colleagues.
(http://www.mcb.com.pk/about-mcb/core-values)
1.5.2 Innovation
We encourage and reward people who challenge the status quo and think beyond
the boundaries of the conventional. Our teams work together for the smooth and
efficient implementation of ideas and initiatives.
(http://www.mcb.com.pk/about-mcb/core-values)
1.5.3 Excellence
We take personal responsibility for our role as leaders in the pursuit of
excellence. We are a performance driven, result oriented organization where merit is
the only criterion for reward.
(http://www.mcb.com.pk/about-mcb/core-values)
1.5.4 Respect
We respect our customers values, beliefs, culture and history. We value the
equality of gender and diversity of experience and education that our employees bring
with them. We create an environment where each individual is enabled to succeed.
(http://www.mcb.com.pk/about-mcb/core-values)
We can divide the product and service of MCB into following four part:
1)
2)
3)
4)
1.7.3 ATM
MCB is one of the nations largest networks of ATM with having more than 450
ATMs and is still growing. These ATMs give you 24 hours ease to withdraw cash,
obtain mini-statements, pay utility bills, transfer fund services and much more. MCB
Mobile ATM not only provides you world class banking services but also give you
convenience. Innovative mobile ATMs ensure that customers are given services close
to them.
1.7.4 Call Center
MCB Call center is 24/7 unit which deals in suite of transaction to the
customers. Various services related to products and channels are provided through call
center like Current and Saving Accounts, Visa Debit and Credit Cards, Branchless
Banking (MCB Lite), Mobile Banking, Internet Banking and SMS alerts. You can
confirm last five transactions, maintain your VISA credit and ATM/Debit cards, check
your account balance, and top-up your mobile and pay utility and mobile phone bills.
(http://www.mcb.com.pk/about-mcb/products-services)
1.8 MCB Loan Products
1.8.1 Car4U
MCB Car4U provides you a car at affordable and competitive mark-up, with
easy processing, flexible conditions and excluding all hidden costs.
In order to give you travel ease, shopping pleasure and good service, MCB is
providing you variety of Classic, Gold, Gold Plus and Platinum Visa Credit Cards. It
provides you comprehensive insurance, installment plans as well as SMS facility.
1.10 MCB Agriculture Products
MCB is financing our agriculture sector since 1973.Due to extensive branch
network, professional and specialized staff in its different branches; MCB is
facilitating farmers community and is helping them in increasing their productivity
due to its variety of products offering which are discussed below:
1.10.1 Shadabi Plan
This plan fulfills the financial needs of farmers required for production
purposes like pesticides, herbicides and fertilizers along with the payment of
miscellaneous expenses like payment of diesel expenses, electricity bill payment as
well as the expenses incurred like in maintenance of tractor and other farming
appliances.
(http://www.mcb.com.pk/about-mcb/products-services)
1.10.2 Tractor Finance Scheme
A special facility offered to customer to enhance mechanized farming. There is
no minimum land holding requirement in this scheme because of the multipurpose
usage of tractor for agricultural purposes. But at the time of loan processing the
potential usage and repayment capacity will be taken into consideration.
Chapter # 2
Internship experience and learning
2.1 Branch Structure and Departments
I did my internship in MCB General Bus Stand Road branch, Multan which is
located near Gala Mendi Multan. Departments and branch structure are as follows:
1)
2)
3)
4)
All departments have their own responsibilities and duties. My duties at the bank
during my internship were diversified. I was rotated in different departments of the
bank. They assigned me with few tasks. They provided me few assignments also to
provide for me the genuine introduction of viable nature's domain. So my
responsibility could be classified department wise a
2.2 Account Opening Department
I have worked one week in account opening department. It is the most important
department of any branch of any bank because all the working of the bank is based on
the account. It is the first step between the customer and banks. I opened new
accounts some for new customers and some for old customers because they want to
operate more than one account. There are different types of accounts in MCB bank
limited which are offered to its customers. Different accounts has different benefits
different
charges
different
minimum
purposes.Therearethreetypesofaccount.
1)Currentaccount
2)Savingaccount
3)Termdepositaccount
2.2.1CurrentAccount
balance
requirement
and
different
MCBBankoffersavarietyofcurrentaccountstoprovidetotheeveryday
transactionalneedsofvariouscustomers.Theseaccountsensureeaseandfreedomto
bank from any of the 1100+ branches across the country. The different accounts
include:
1) Normal Current Account that has 10,000 rupees minimum balance
requirement.
2) BusinessAccountthathas50,000rupeesminimumbalancerequirement.Itis
offeringfreeonlinetransactions,DemandDrafts,PayOrdersandlotsmoreto
meetthedaytodaybusinessrequirements.
3) CurrentLifeAccountwhichoffersthesecurityoflifeinsurancefreeofcost
andforallothers,theconventionalCurrentAccount.
2.2.2 Saving Account
MCB Bank offers a wide array of savings products that suit short term
growth & transactional needs. Our savings accounts offer attractive profit rates as
well as flexibility to transact.
1) PLS Saving Account has no minimum balance requirement and it offer profit
rate on semi annually balance.
2) Xtra Saving Account is targeted for customers having Rs. 5 million + deposit
and it offer profit rate on quarterly balance.
3) 365 Gold Account offers profit rate on daily balance.
2.2.3 Term Deposit Account
MCB Term Deposit offer attractive short to mid-term investment options with
flexibility, convenience and security. With various tenor options available, customers
can choose one that suits their needs. This is combined with different profit payout
10
options and the added facility of being able to avail credit facility against their
deposits.
2.3 Clearing Department
I had worked two weeks in clearing department under the supervision of
Mr.Fawad I learned the function and work that are performed in this clearing
department. This is the important department of any bank. According to Mr.Fawad
(personal Communication, Aug 12, 2015), clearing is a process in which the banker
settle their mutual account by claiming the arising account of various instruments
presented by one bank drawn on the other bank either the bank is in the same city or
out of city. Suppose an HBL account-holder gives a crosscheck for MCB. Similarly,
MCB accountholders give check to people having accounts in other banks these all
banks need to clear their overall balances with each other. The clearing department
does this. Clearing checks MCB Account-holder X HBL Account-holder Cross check
Y HBL Bank MCB Deposited In clearing we deal with the cheques of other banks or
other branches of MCB. The clearing is done with the help of NIFT (National
Institutional Facilitation Technologies). It is the institute which the state bank has
hired for the collection of clearing cheques of each branch and it plays middle man
role between each branch with State Bank of Pakistan. According to Mr.Fawad
(personal Communication, Aug 12, 2015), clearing are of two types Inward clearing
and outward clearing.
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clearing. According to Mr.Fawad (personal Communication, Aug 11, 2015), there are
three type of outward clearing normal clearing
1) Normal Clearing
2) Same day clearing
3) Intercity Clearing
Before starting clearing Mr.Fawad gave me the first task to record the detail of
cheques in the cheque Collection registered. The detail required includes pay account
number, cheque number, cheque amount, bank name of which the cheque is. And I
wrote the all amount of all cheques on Add list and add it. Two copies were made one
original and second carbon copy. I attached add list and all the bank copy of deposit
slip which were filled from customer in the CC registered. Mr.Fawad appreciated me
that your calculation is good. The same task is done either it is Normal, Same day, or
intercity clearing. These are the following detail are required in Clearing Register.
1. Serial No.
2. Account number of the depositor
3. Depositor name
4. Drawer
5. Drawee
6. Cheque No
7. Amount of the cheque
12
13
other branches of MCB bank. This is inward clearing other banks sent instrument to
our branch which are drawn on us. There are few things which are included in inward
clearing. There are few things which are included in inward clearing.
1) The cheques should be cross cheques or there should be cross stamp on face side of
the cheque.
2) Clearing stamp on the front side of the instruments.
3) The clearing stamp dated should be of the next working day
4) Manger stamp that Payees account is credited on the bake of the instruments and
signature on the stamp
5) The signature is to be verified before entering into computer and then the cheque is
posted and drafted
2.4 Remittances:
I have worked two week in remittance department were Mr.Tajj is the supervisor.
According to Mr.Tajj (personal Communication, Aug 25, 2015), following function
and instruments are dealing in this department.
1.
2.
3.
4.
Demand Draft
Pay Order
Deposit slips
Call Deposit Receipt (CDR)
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PO is the kind of instruments and it is the assets of customer. It is used for the
payment of admission fee, tender or for payments of dealing. In case of PO the issue
bank and paying will be same but branches may be different in the city. It flows
within the city.
2.4.3 Call Deposit Receipt (CDR)
It is highly liquefied instrument which can be cashed at any time on the
demand of customer. it is used for tender purpose.CDR show that the specific
mentioned account is present in between customer and other party with which deal is
being done. In this case issue and paying branch is same.
2.4 Online Transfer
I have worked 3 to 4 days in online department. Mr.Mehboob is the online officer
According to Mr.Mehboob (personal Communication, Aug 31, 2015), In online
transfer department Amount can be transfer from one account to another account
either the account is from that branch or from other branch of the MCB in any city.
According to Mr.Mehboob (personal Communication, Aug 31, 2015), first of all
customer fill the online form then their transfer become possible. He told me that
there are two part of from. First part contains the information about beneficiary person
in which Beneficiary Name, account number, branch code with address, and purpose
of Remittance are required .Second part contain the information about Applicant
person in which Title of account, account number and Signature of Applicant are
required. For non account holder copy of CNIC is must for transaction. According to
Mr.Tajj (personal Communication, Aug 31,2015),
cheque then the bank charges are Rs.232 and if the amount is transferred through cash
then charges is Rs.348 for bank without withholding Tax. Withholding tax of 0.06%
15
will be applied if the amount is above 25,000 on cash transaction and 0.03% is
applied on account holder if the amount is above 50,000 .
2.5 Cash Management Department
Practically I have not worked in cash management department because MCB not
allow for it. But Mr.Aamar (Cashier) theoretically told me about the function of this
department .According to Mr.Aamar (personal Communication, Sep 9,2015), that all
the cash transactions are carried out through cashiers. In cash department both
deposits and withdrawals go side by side. This department deals with cash deposits
and payments. This department maintains the following sheets, books, ledger of
account:
1)
2)
3)
4)
5)
The only instrument that can be used to withdraw an amount from an account is the
Cheque book. No payments are made by another instrument. Cheques can be of two
types, they may be presented at the counter and en cashed and the others are clearing
or transfer cheques. Cashier manually inspects the Cheque for following:
1)
2)
3)
4)
5)
The cheques should not be stated as postdated. If in the Cheque there May
discrepancy regarding any of the aspects described above the cheque is returned to the
customer for rectification. On other hand if the cheque is valid in all respects, the
cashier enters the necessary inputs in the computer and posts the entry so that account
balance is updated.
16
When cashier posts these entries, computer automatically display the balance before
posting the transaction amount, balance after posting. The cashier easily and quickly
see whether the amount being withdrawn so exceed the balance or within the balance.
If the amount does exceed the balance then it is upon the discretion of the manager to
allow an overdraft and not depending upon the customers reputation. If he does not
allow an overdraft, the procedure is repeated again as described for the mismatch of
the signature Cheque is return.
The detail of notes (currency) is written on the back side of the Cheque. The cashier at
the same time maintains the Cash Voucher Received Record Sheet. Then once again
inspect the signature of the customer cancellation mark of checking officer and stamp
of POSTED is placed on cheque before hand over the cash to customer.
receives this voucher and the check output transaction ledge, he manually inspects the
entries of ledger and voucher. If both are tallied, he then signs the ledger and put a
mark of cancellation on the voucher. After the verifications from the checking officer,
cashier receives the voucher.
2.5.2 Cash Book Balance
At the end of the working day cashier is responsible to maintain the cash
balance book. The cash book contain the date, opening balance, detail of cash
payment and received in figures, closing balance, denomination of government notes
(Currency). It s checked by manager. The consolidated figure of receipt and payment
of cash is entered in the cash book and the closing balance of cash is drawn from that
The closing balance of today will be the opening balance of tomorrow. This
department is one of the most important departments of the bank. All the books
maintained in this department are checked by officers.
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Chapter # 3
SWOT Analysis of MCB
Strength
Weakness
3.2.1 Mismanagement
19
Opportunity
Threat
3.1 Strengths
3.1.1 First private bank:
In Pakistan MCB is the first privatized bank that was established in 1947.In
financial market of Pakistan MCB play a known rule. Its management quality,
marketing, innovation in products and services make it a well performing organization
in financial market of Pakistan.
20
3.2.1 Mismanagement
Mismanagement of time is another big mistake in MCB branches, the bank
official time of closing is 5:00 pm but due mismanaging of time allocation and work
the staff is normally on their seats till 6:00 or 7:00 o clock.
3.2.2 Old software
Symbol software that MCB used in their operational function are very Old.
During my Internship period I observed that the SYMBOL system is not work
properly. It may sometime Disconnected .Due to this operation of MCB is stopped
and customer have to wait until it may not start.
3.2.3 Lack of Training Sessions
Training sessions are must for the growth of employees and they should be done
twice or maybe thrice a year but unfortunately MCB does it once in a two year period
or even late as compared to its competitors like HBL, UBL and NBP etc... Thats why
Employees are not up to date of the changes that are adopted in the market.
21
banking also had a bad effect on employees because they didnt get anything for it
except work.
3.3 Opportunities
As mentioned earlier, MCB hasnt been the leader instead it has a focus on
following others. Still there are opportunities waiting for MCB.
3.3.1 Positive change in economy
Growing economy and financial reforms of government are
opportunities for MCB to uplift its operations and offers in the
market.
3.3.2 Promotion and Advertising
We can grab more market share for its remittances and foreign department
through effective promotional and policies. We have to spend more on our
advertisement so that more and more people become ware with our product.
3.3.3 Change in Management
Inclusion of highly qualified professional can change the whole scenario and
position of the bank if they have given the due liberty in performing their duties.
22
Change in government policies has affected the banking business. The freezing
of foreign currency accounts is a vital example of letting people not to trust on banks
3.4.2 Market competition
The Competition has become severe by the entrants of so many banks, So to
exist one will have to prove himself in its services through excellent management and
will have to satisfy its shareholders. Otherwise he will be out the market.
3.4.3 Change in Taxation Policy
Change in taxation has direct effect on banking sectors. Now a day increases in
withholding tax has decreased half of the sale of MCB. Now banker customer not
used bank as intermediate during their dealing .They used direct cash in their dealing
3.4.4 Economic Condition
The decrease purchasing power of consumer in the current economic situation of
the country affecting the business activity speed too much and the result is the low
investment from the investors in new projects can create problem for the bank
because it is working a lot in trade.
3.4.5 New Technology
Introduction and adoption of information technology as well as promotion of the
computer culture by the local as well as foreign banks will definitely affect the
services and business of the MCB.
23
Chapter # 4
Recommendations and Conclusion
1.4 Conclusion
MCB is a great place to gain experience and learning. The staff and the
environment were quite friendly and caring. The Staff was quite
expert in their respective work and were quite assisting as well. My
six weak
24
and
services,
qualified
and
competent
staff,
good
computerized networking
25
26
has some problems with other officers can communicate his problem to higher
management and some steps must be taken to improve that system.
4.2.7 Internship Facilities
The period of internship should be divided in to the number of department of the
MCB 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 first 4 to 5 days in each
department internee should be given a lecture about the working condition of the
department
4.3 ANNEXURE
CEO
Boards of Director
27
Heads of Departments
Controller of Operations
Branch Managers
References
Data Retrieved on Oct 1, 2015 from
http://www.mcb.com.pk
Data Retrieved on Oct 1, 2015 from
https://www.mcb.com.pk/about-mcb/vision-mission
Data Retrieved on Oct 1, 2015 from
http://www.mcb.com.pk/about-mcb/core-values
28
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