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INTERNSHIP REPORT

MCB Bank Limited (1412) Multan

Submitted By:
Abdul Kareem
BS (BA)-V (B)
Session 2013-2017
Supervised To:
MISS PERKHA KHAN

Quaid-i-Azam School of Management Sciences


Quaid-i-Azam University,
Islamabad

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

Chapter: 01 Organization introduction

01

1.2 Mission Statment................................................................................................................02


1.3Visionstatement02
1.3 Head Office.........................................................................................................................02
1.4 Core Value ........................................................................................................03
1.5 MCB Products & Services................................................................................................04
1.5.1 MCB Online services

04

1.6.2 MCB Loan Products

05

1.5.6 MCB Cards..06


1.6.3 MCB Agriculture Products

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

2.2.6.2 Cash book balance.......................................................................18


2.2.11 Other Observation and learning..................................................................19
Chapter: 03 SWOT Analysis of MCB

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 Core values

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)

MCB Online Services


MCB loan products
MCB cards
MCB agriculture products

1.7. MCB Online Services


1.7.1 MCB Internet Banking
MCB Internet Banking provides you Detailed Account Summary of all listed
accounts, Mini-statements/Statements-by-period, Internal transfer of funds, Scheduled
payments, Payments of utility bills and MCB credit card bills, Donations, Cheque
Book Request, Personal Alerts, Mobile Recharge facility for all mobile companies
and Mobile browser capability. Customers having an active Current and Saving
Account and an active Visa Debit Card can avail this service.
1.7.2 Mobile Banking
MCB provides Mobile Banking facility through which customers can ask for a
balance inquiry, view mini-statements, report lost/stolen card and transaction alerts
etc. Customers can also make Utility Bill payment for KESC, HESCO, IESCO,
SSGC, SNGPL and PTCL. They can make MCB Visa Credit Card bill payments.
Transfer funds both internally and between different branches. Make a Mobile
postpaid bill payment for all Telecom companies. Make donations, Purchase
insurance. In order to avail these services the customer must be MCB Account Holder,
having active VDC/Smart Card and the customer data should be registered at call
center, providing valid cell phone number. Financial transactions are limited to PKR
100,000 per day excluding credit card payments and interbank funds transfer. The
customer has no need to visit any MCB Branch or an ATM anymore. Login to
www.mcbmobile.com through your mobile phone and start your transactions
(http://www.mcb.com.pk/about-mcb/products-services)
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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.

1.8.2 Business Sarmaya


We all know that good cash flow is the key to any successful business. MCB
Business Sarmaya provides you the running finance facility against your flat/house,
providing a steady cash flow for your business.

1.8.3 Pyara Ghar


MCB bank helps you to construct, purchase and maintain your home the way
you always wanted. MCB Pyara Ghar is home finance from your own bank that is
always ideal for you needs.
1.8.4 Easy Personal Loan
The easy personal loans provide you financial edge to do things you have
always planned but never had sufficient resources for. You can refurnish your house,
purchase a TV, buy a car and plan a better financing for your children education.
1.8.5 Instant Finance
With the help of MCB Instant Finance you can instantly get loan from any MCB
branch against liquid collateral at competitive price.
(http://www.mcb.com.pk/about-mcb/products-services)
1 . 9 MCB cards services
1.9.1 Smart card
MCB Smart Card provides you convenient banking services. It help you in cash
withdrawal, transferring fund, paying mobile and utility bills, managing account,
recharging prepaid connections, registering for mobile and internet banking services
etc. It helps in managing your expenses and eliminates undue expenses on your daily
transactions and providing easy and direct access to your account every 24 hours.

1.9.2 MCB Debit Card


MCB Debit Card offers you a quick, secure and convenient paying facility that
helps you in your purchase with your existing ATM/Smart Card as a Debit Card.
1.9.3 Visa Credit Card

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.

1.10.3 Aabiari Scheme


MCB provides this scheme to farmers for cultivation/plantation purposes to
reduce their problems which they face due to water shortage and is providing
financial assistance in new tube wells, irrigation system including sprinkles as well.

1.10.4 Grower Finance


MCB gives financial assistance to its registered farmers and growers of
sugarcane, rice and cotton. These facilities are extended against mill or the factory
guarantee. Actually this facility is of short term in nature but the period can be
extended to eighteen months if the grower case is sugarcane.
1.10.5 Dairy & Meat Plan
Under this plan farmers are giver facility to purchase animals for dairy milk
purposes and to make dairy farms in order to increase meat and meal production.
Actually this plan fulfils the dairy farming needs of the customers.
1.10.7 Murghbani Scheme
Under this scheme, farmers are provided assistance in meeting their poultry
need and fulfill their requirements of poultry industry. Financing involves value chain
from the establishment of poultry farm till the final output including marketing of the
products by farmers. Poultry processing involves value addition process by the
farmers which is also included in this scheme.
1.10.8 Mahigeri Scheme
Under this scheme fish farmers are provided credit facilities to perform
different functions related to Mahigeri including marketing of their products..
.Farmers also require financing for their value added process and it is also covered
under this scheme.(http://www.mcb.com.pk/about-mcb/products-services)

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)

Account opening department


Clearing Department
Remittance
Cash Management

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

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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.

2.3.1 Outward Clearing


When cheques and other negotiable instruments drawn in other banks like
HBL,UBL, BOP of the same city (as Multan) are obtained in MCB bank to deposit
them in their respective Accounts then these instruments are treated in outward

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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

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2.3.1.1 Normal Clearing


Normal clearing is made at afternoon which would be presented on next day.
Two stamps are stamped one on front of clearing date stamp and one on back manger
stamp that payee account will be credited and manger signature also. Normal clearing
are deals with in city. Minimum two days are required for this type of clearing.
Clearing charges are deducted from the depositor account.
2.3.1.2 Same day clearing
Same day clearing is made in initial working hours of the bank and are
presented on the same day for clearing. Two types of stamps are stamped on front of
instrument and one on back of cheque. On front side ,one stamp of same day clearing
and second stamp of clearing date on which cheque has to presented .On back side of
the instrument , manger stamps that payee account will be credited and manger
signature also.
2.3.1 Intercity clearing
Intercity clearing where there is State Bank of Pakistan then the clearing is done
by NIFT and if not then another institute is worked so CC (cheque collection) is
made. Three stamps are stamped two on front side and one on back side. On front side
one stamp of intercity clearing and other is clearing date on which it has to present.
On back side manager stamp that payee account will be credited and manger signature
also.
2.3.2 Inward Clearing
In inward clearing other banks or other branches of MCB also settle their
account by claiming the instruments which are drawn by the other bank customers or

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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)

2.4.1 Demand Draft


Demand Draft (DD) Demand draft is like an instrument and is issued on the
demand of the customer. It is payable on the demand when the customer want it. It is
issued by the one branch of the bank and is payable by another branch of the same
bank. Information required for DD is beneficiary name, bank or branch name, address
and purpose of remittance.
2.4.2 Pay Order

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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),

when amount is transfer through

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%

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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)

Cash received voucher sheet.


Cash paid voucher sheet.
Paying-in-slip
Cash balance book
Cash Paid Sheet

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)

Signature & date


Cross cutting
Drawees A/C Title
Amounts in words & figures
Two signatures at the back

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.
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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.

2.5.1 Cash Deposit:


For depositing the cash into customers accounts, there is need to fill in the
Deposit Slip. The Deposit Slip contains the date, A/C/NO, A/C title, particulars,
amount being deposited and details of the cash. There are two portion of the Deposit
Slip. The depositor signs the one part of the paying-in-slip one is retained by the bank
to show an acceptance of the entries made in the slip. The cashier posts the transaction
entries in computer ledger. This ledger contains the a/c no, a/c title, voucher no,
voucher date, transaction code, transaction amount. After posting these entries,
computer display before posting balance and after posting. On every transaction
computer generates an output of transaction ledger. He assigns the stamp POSTED
on the voucher to show voucher transaction entries are posted. Checking officer
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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.

2.6 Others Observations and Learning


Other than key function of the bank I have learned
1) How to deal with customers
2) How to work under pressure i.e. in rush hours.
3) How to manage an office environment
4) My communication skills were improved.
5) I learned the procedure of ATM Machine. I learned about different hurdles that may
occur in using ATM card including Card Capture, No cash after transaction etc.
6) I learned how captured ATM cards are delivered back to customers.

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7) I came to know about lockers, their functions and their operations.


8) During my internship l observed some unethical dilemmas like account offer only
took the customer signatures and fills the farther farm by himself .Similarly branch
manager not visit the customer personally and make the customer visit report by
himself which is unethical.

Chapter # 3
SWOT Analysis of MCB
Strength

Weakness

3.1.1 First private bank

3.2.1 Mismanagement

3.1.2 Second big bank in Pakistan

3.2.2 Old software

3.1.3 First Mobile banking bank

3.2.3 Lack of Training Sessions


3.2.4Unequal Behavior with customer
3.2.5 Extra Burden on Employees

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Opportunity

Threat

3.3.1 Positive change in economy

3.4.1 Change in Government Polices:

3.3.2 Promotion and Advertising

3.4.2 Market competition:

3.3.3 Change in Management

3.4.3 Change in Taxation Policy:

3.3.4 New Technology


3.4.4 Economic Condition:
3.4.5 New Technology:

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.

3.1.2 Second big bank in Pakistan


MCB is the second big bank in Pakistan after HBL. About 1200 branches of
MCB are working MCB in every big and small cities of Pakistan. In Pakistan more
than 1500 ATMs of MCB is performing their performance.
3.1.3 First Mobile banking launched bank
MCB is the first Pakistani bank that has launch mobile banking.
3.2 Weaknesses
The noted weaknesses of MCB are as:

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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.

3.2.4 Unequal Behavior with customer


A behavior has been noted that bank tries to feel at ease with good looking, rich
and educated people and the poor looking customers feel some bit strange in the
environment of the bank. The bank employees should try to accommodate
behaviorally all type of customers.
3.2.5 Extra Burden on Employees
MCB may have satisfied customers but employees are not at all satisfied
because the amount of work is greater than time and pay. Concept of non-stop

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.

3.3.4 New Technology


A positive change in information technology will help us to improve our
customer services. We can become efficient in our operation by new software and
technology
3.4 Threats
Following are some threats to MCB
3.4.1 Change in Government Polices

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

working experience gained me a lot of outstanding

knowledge that can be helpful in my coming future.MCB is one of

24

the most successful and establish banks operating in the banking


sector of Pakistan.MCB has achieved his success due to its quality
products

and

services,

qualified

and

corporate environment and its highly

competent

staff,

good

computerized networking

system.MCB has gain a lot of market share by its most valuable


products like MCB online service, MCB loan product ,MCB cards and
most important is MCB agriculture products. My six weeks internship
experience in MCB was remarkable because it gives me a chance to
learn and experience the professional world and provides me
required knowledge of the operations of banking system. In short it
was good experience to work as a internee in MCB.
4.2 Recommendations
Following are my observations and suggestion to improve the efficiency for the
development of the bank.
4.2.1 Change the Nature of Work
Most of the employees are sticking to one seat only because they become master
of one particular job and they lose their grip on other banking operation. In my
opinion all the employees should have regular job experience over all out-look
towards banking. Their promotion policy should be adjusted consequently.
4.2.2 Symbol system
During my Internship period I observed that the SYMBOL system is not work
properly. It may sometime Disconnected .They have to improve make SYMBOL
system more efficient and make sure its connectivity in order to provide more
convenience to customer.

25

4.2.3 Performance and Reward


Smart, well educated, well skilled, well spoken and well versed staff personals
should be rewarded and appreciated, while on the other hand lazy employee, lethargic,
heard, rough-dealers and rude employees must be warned and penalized but this all
should be on merit and fellow the policy of honesty is the best policy and not due to
some personal liking, disliking prejudice and patrimonial. It is consequently
recommended that sure plans and checks and checks may be introduced in banks to
increase proficiency through reward and punishment system.
4.2.4 Promotion and Advertising
Bank must tell potential clients that all attractions for managing an account
exist..This can done by publicizing on TV and acquiring press coverage, in
coincidence with direct mail, window shows, pamphlet in branches and in appropriate
others areas, (for example, hostel, shops, and so on.) and including handouts in
explanation of records sent to existing clients with the expectation that they will
educate potential clients regarding the administrations gave by our bank
4.2.5 Increase Salaries
MCB is making good profits but not pay enough to their employees as
compared to their competitors. To motivate employees their salaries should be
increased.
4.2.6 Incentive to Employees
Bank should give some more incentive to their employees in order to remove the
conflict between lower and higher management and should try to improve the
working style of the bank. That system should be designed that every employee who

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

Regional General Managers

Controller of Operations

Branch Managers

Officer Grade 1, 2 and Lower Staff

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

` Data Retrieved on Oct 1, 2015 from


http://www.slideshare.net/mazhargujar/mcb-internship-report-29486740
Data Retrieved on Oct 1, 2015 from
http://www.abdallahshah.com/MuslimCommercialBank.html
Date Retrieved on Dec 4, 2015 from
http://www.slideshare.net/ajeshubhanu/mba-internship-report
Date Retrieved on Dec 4, 2015 from
http://vustudents.ning.com/group/bnki619internshipreportbanking/forum/topics/intern
ship-report-on-mcb-bank-limited-specialization-banking-fina

29

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