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DEDICATIONS

To almighty Allah, who created me as

crown of creation and enable me to learn.
To my parents who nurtured me well and
inculcated in me the spirit to learn more
and more.
To my teachers at all my stages of study
and developed my personality as a useful
citizen for the society and beyond them
to all my friends from whom I learned
much and to staff of the company who

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who always guided me in right direction

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fully cooperated with me in the

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completion of my tasks.

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ACKNOWLEDGMENT:
and ability to accomplish this work.
I also want to show my gratitude to my loving parents and teachers who make me able to be at
this position.
I am also thankful to all my friends and the staff members of the MCB KUTCHERY ROAD
D.G.KHAN.
*MR. SHAH JAHAN SAHIB

(Manager)

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All Glories and honors are for Almighty Allah, who bestowed me with profound perseverance

Internship

* MADAM IMRANA PARVEEN

(Operational Manager)

* Mr. ABDUL LATEEF

(GBO)

* MADAM ASMA BALOUCH

(GBO)

* Mr. M.ARSALAN

(CASHIER)

* Mr. M.SHAHIZAD

(CASHIER)

* Mr. M.IMTIAZ

(CASH SORTER)

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Report On MCB

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Report On MCB

EXECUTIVE SUMMARY

MCB is Pakistans fourth largest bank by assets having an asset base of US$6.7 billion, and the
largest by market capitalization having a market capitalization of US$ 4.1 billion. The Bank has
a customer base of approximately 4 million and a nationwide distribution network of 1200
branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a
population of 160 million.
MCBs operations continued to be streamlined with focus on rationalization of expenses,
realignment of back end processing to increase productivity, enhancement of customer service
standards, process efficiency and controls. The bank has taken the lead in introducing the
innovative concept of centralizing Trade Services in the country by providing centralized foreign
trade services to branches with a view to improve efficiency, expertise and reduce delivery cost.
During my internship in MCB, I worked in Clearing Department, Remittance Department,
Foreign Exchange Department and Accounts Department and I successfully completed all the

During the course of internship I learned about different functions performed by Clearing,
Remittance, Foreign Exchange, Accounts Department and bank as a whole. I also learned banks
correspondence with their customers and within branches.

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task/duties that were assigned to me.

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Overview of the Organization

MCB Bank Limited (formerly Muslim Commercial Bank) previously named
as

(Mansoor

Co-operative

Bank)

was incorporated by

the Adamjee

Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a
limited company. The bank was established to provide banking facilities to
the business community of South Asia. The bank was nationalized in 1974
during the government of Zulfikar Ali Bhutto. This was the first bank to be
privatized in 1991 and the bank was purchased by a consortium of Pakistani
corporate groups led by Nishat Group. As of June 2008, the Nishat Group
owns a majority stake in the bank. The president of the bank is Imran
Maqbool. Mian Mohammad Mansha is the Chairman of the group (and also MCB)
MCB is Pakistans fourth largest bank by assets having an asset base of US$7
billion as at quarter 1, 2012, and the largest by market capitalization having
a market capitalization recorded at $1.2 billion at year end 2011, which was
lower market value.
The bank has a customer base of approximately 4 million and a nationwide
distribution network of 1,190 branches, including 22 Islamic banking
branches (December 31, 2011) within Pakistan and eight branches outside
the country (December 31, 2011 including the Karachi Export Processing
Zone Branch), and over 650 ATMs in 110 cities, in a market with a population
of over 190 million.

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comparatively lower than $1.8 billion the year before, mainly on account of

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Nationalization
In January 1974, the government of Pakistan nationalized MCB following the
banks Act 1947; Premier bank Limited merged with MCB.

Privatization
A wave of economic reforms swept Pakistan in the late 1990, introducing the
need for privatization of state owned banks companies. In April 1991, MCB
became Pakistans first privatized bank.

The government of Pakistan

transferred the management of the Bank to National Group, a group of

leading industrialists of the country by selling 26% shares of the bank. In
term of agreement between the government of Pakistan and the National
group, the Group, making their holding 50% has purchased additional 24%
shares.

MCB Bank ltd Today

Pakistan. A major financial institution, in scope and size, it symbolizes a fully

growing tree evergreen, strong, and firmly rooted.
Social Sector
The bank activity participating in the Prime Minister self-employment
Scheme. The application received from various applicants is being processed
on merit and disposed off as quickly as possible.
Foreign Operation

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MCB today, a represents a bank that has grown with time, experience and

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Our banks foreign operation in Bangladesh and Sri Lanka continue to remain
profitable. In April 1999 the Bank opened its third branch in Sri Lanka at
Marinade a suburb of Colombo. Recently opened his branch in U.A.E.
Depend on us for stability
MCB Bank is committed to building on its strengths. Our strong balance
sheet, favorable capital adequacy ratio, geographical and financial spread,
and sheer presence in numbers of all stakeholders help us ground your
immovable faith.

Depend on us for advice

MCB Bank understands. We listen to your most determined ambitions and
your most private intentions. Between these two directions, we have a
wealth of products designed to cater to your every need administered by
highly qualified and committed relationship managers who insist on

Depend on us for reach

That undeniable fact that MCB Bank is just around the corner is not a
testament to convenience, but to inspiration. The fact that we are there for
you with over 1200 branches, stretching from the smallest towns and
villages to the countrys largest cities, is proof of our ever-expanding loyalty
to you.

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excellence, service and advice.

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Depend on us for peace of mind

Our legendary stability has stood the test of time as the bedrock of financial
security for millions of customers. By working for your financial and lifestyle
security, we ensure your peace of mind. A state of being so well-empowered,
you are well-equipped to accept lifes challenges with spirit and resolve.
Depend on us for relationship
Before we invest in portfolios and funds, before we invest in local. Regional
or international markets, before we invest in new products and services, we
invest most importantly in the two of us. An equation which, over
generations, has translated into millions of satisfied relationships, and

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growing.

Vision Statement

To be the leading financial services provider, partnering

with our customers for a more prosperous and secure
future.

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Mission Statement

To become the preferred provider of quality financial

services in the country with profitability and responsibility

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.

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and to be the best place to work.

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Depend on Our beliefs

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.

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.

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.

Customer Centricity

understanding their needs and aspirations, both realized and unrealized. We make
every effort to exceed customer expectations through superior services and
solutions.

Innovation

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Our customers are at the heart of everything we do. We thrive on the challenge of

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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

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efficient implementation of ideas and initiatives

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1.1OBJECTIVES OF STUDYING ORGANIZATION:

This study is for my academic interest and will be helpful in my future life
and it will become the foundation of my future studies. Most importantly this
internship allows me to distinguish myself from my classmates, as I gain a
competitive

advantage

by

connecting

my

coursework

with

industry

experience.
Following are important objectives of studying the organization:

Categorize the different products and services offered by the financial

institution and note how to most efficiently match those products and
services with the needs of customers.

Analyze the companys financial condition through the financial

statements (compute financial ratios and compare to the industry
averages).

To describe the impact of financial decisions on the health and

functioning of the overall organization.
To learn the various steps and procedures of credit risk management &
administration.

Finding out the weaknesses, short comings, strengths and beauties of

the credit administration department.

The purpose of the this study is to explore the functions, operations and
services of MCB Bank, and I think after preparing this; the readers of this
internship report will quickly understand the way MCB Branch works and

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through this concise report they might get the full-fledged idea of working of

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banking industry of Pakistan.

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1.1.1PRODUCT & SERVICES:

Current Accounts
Saving Accounts
Term Deposit Accounts

1.2 Current Accounts

Current Account
Basic Banking Account

Business Account

1) Khushali Bachat Account

Khushali Bachat Account, a Rupee savings account is one of MCB Banks
most popular products. Due to the low initial deposit, the account can be
opened by people from all walks of life and still avail the facility of daily
product profit calculation.

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1.2.1Current Account

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2) Mahana Khushali Bachat

MCB Monthly Khushali Scheme provides you with a steady income every
month. Just purchase a Monthly Khushali Certificate and you will enjoy a
steady income of your total deposit every month.

3) Pak Rupee Savings Account

MCBs Pak Rupee Savings Account offers you attractive returns on your Pak
Rupee investment.
In addition, you have access to a countrywide ATM network convenient cash
accessibility 24 hours a day. The facility also provides you with unlimited
daily transactions with a limit on maximum withdrawal amount through the

4) Pak Rupee Current Account

MCBs Pak Rupee Current Account offers you the convenience of unlimited
withdrawals i.e. access to your funds whenever you want without any notice.
There is no limit on the number of transactions you make in a day plus you
can avail finance facility up to 75% of the total deposit.

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ATM machines.

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In addition, you have access to a countrywide ATM network convenient cash

accessibility 24 hours a day. The facility also provides you with unlimited
daily transactions with a limit on maximum withdrawal amount through the
ATM machines.

5) Pak Rupee Term Deposit

MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you
choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and

6) Saving 365
The MCB Saving 365 calculates profits on a daily product basis and gives you
the facility of unlimited withdrawals.

7) Foreign Currency Savings Account

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5 year term deposits.

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MCBs Foreign Currency Savings Account offers you attractive returns on

your Foreign Currency investment.
You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling,
Japanese Yen or Euro
Your foreign currency account is exempted from Zakat and withholding tax

8) Foreign Currency Current Account

MCBs Foreign Currency Current Account offers you the convenience of
unlimited withdrawals i.e. access to your funds whenever you want without
any notice. There is no limit on the number of transactions you make in a
day.

Loan Products

MCB Business Sarmaya is the best Running Finance facility against your
residential property which empowers you to manage your business dealings
better. So act today and get MCB Business Sarmaya and thus improve your
business, avail lucrative opportunities and expand your business, with
absolute satisfaction of cash flows.

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1) MCB Business Sarmaya

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2) MCB Car4u
Life is like a chess board. You plan your career options. You analyze your
business moves. But when you really want to improve your life, you make a
power move. MCB CAR4U Auto Finance is the power move that assists you in
more ways than you ever imagined. It is affordable, with lowest mark up,
flexible conditions, easy processing and above all, no hidden costs.

4) Easy Personal Loan

MCB Easy Personal Loan provides you with the financial advantage to do
things you've always wanted to but never had the sufficient funds for. Take
that much-needed holiday. Buy a car. Refurnish your house. Purchase a new

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TV. Finance a better education for your children.

MCB Master Card

Since the beginning of time, people have tried to find more convenient ways
to pay, from gold to paper money and cheques. Today, money is moving

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away from distinct hard currencies and towards universal payment products
that transcend national borders, time zones, and, with the Internet, even
physical space. Plastic or "virtual" money, credit, debit, and electronic cash
products, inevitably will replace cash and cheques as the money of the
future.

MCB Rupee Traveler's Cheques

MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash for
traveling and travel related purposes. The product has been extremely
popular and is preferred over cash by customers while traveling and in all
walks of life.

Corporate Banking
1) Cash Management Services
MCBs network of over 1200 branches in Pakistan enables it to collect and
disburse payments efficiently with its cash management services. This also
enables it to offer you a choice of paper based or electronic fund transfer
solutions including collection amounts, cross branch on- line transactions etc.

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MCB Rupee Traveler's Cheques- The safest way to Carry Cash.

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2) Working Capital Loans

Based on the customers specific needs, the Corporate Bank offers a number
of different working capital financing facilities including Running Finance,
Cash Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailormade solutions are developed keeping in view the unique requirements of
your business.

3) Term Loans
MCB offers Short to Medium Term Finance to meet capital expenditure and
short term working capital requirements of our customers. The loans are
structured on the basis of underlying project characteristics and cash flows of

4) Trade Finance Services

Under Corporate Banking MCB offers trade finance services that include an
entire range of import and export activities including issuing Letters of Credit
(L/Cs), purchasing export documents, providing guarantees and other
support services.

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the business.

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STRUCTURE OF BRANCH:
Mr. Shah Jahan Sahib is acting as a branch Manager in Kutchery Road
branch. Operational Manager of branch Ms. Imrana Parveen handled the
05 subordinates. This team is also headed by Mr. Shah Jahan Sahib.For
effective handling of branch; it has been categorized into two segments with
different people handling each category. These categories are:
a) Operations Manager
b) Credit Manager

Operational Manager is to be responsible of these activities:

Accounts Department

System

Remittances

Clearing

General Services

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A) Operational Manager:

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B) Credit Manager:
Credit Manager is to look after all credit facilities like, Term Loans, Running
Finance facilities etc.

Fields of Activities of MCB Kutchery Road Branch:

The purpose of banks is to provide some services to the general public. The
main functions and services which MCB Bank Limited Kutcher Road Branch
provides to different peoples are as follows.
1) Open Different accounts for different peoples
3) Accepting various types of deposits
4) Granting loans & advances
5) Undertaking of agency services and also general utility functions, few of
those areas under:
a) Collecting cheques and bill of exchange for the customers.
b) Collecting interest due, dividend, pensions and other sum due to
customers.
c) Transfer of money from place to place.

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2) Accepting various types of deposits

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d) Acting an executor, trustee or attorney for the customers.

e) Issuing of travelers cheques and letters of credit to give credit
facilities.
f) Accepting bills of exchange on behalf of customers.
g) Purchasing shares for the customers.
h) Undertaking foreign exchange business.
i) Furnishing trade information and tendering advice to customers.
DEPARTMENTS OF MCB BANK:
Organizations cannot function without proper arrangements for its specific
takes and duties. The process of grouping jobs according to some logical
arrangements is called departmentalization. MCB Bank Ltd is divided into
five departments. Following are five types of the departments established in

Deposits Department

Remittances Department

Clearing Department

Advances Department

Foreign Exchange Department

But in first two weeks I worked in tow departments, Deposits and

Remittances departments.

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the said branch to facilitate the customers.

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Deposits Department:
Deposit department is one of the most important and main department of
the bank. It performs the vital function in the bank because it deals with the
supply of money to the bank. Deposits are the inputs of a bank. Deposits
department is just like a heat, as it function other department also run,
otherwise the whole system paralysis. Each and every bank tries its best to
increase their deposits. Deposits depict the financial strength of a bank.
Muslim Commercial Bank Limited is a unique and crucial institution, which is

Current account.

Saving account

Fixed account

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able to increase credit in the country.

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Remittances Department:
Remittance department performs the function of remitting funds i.e. to
transfer funds for customers from one location to another. The transfer of
funds may be from one branch to another or from one bank to other
Remittances mean the transfer of money or fund from one place to another
place through bank. It may be inland remittance or Remittance

Within locality.

Outside locality.

Within Locality:When a branch situated in DG Khan is required to send the draft to any other
branch situated in the same locality, the process will say to be within locality.
I.e. MCB Tower branch DG Khan, send any draft to MCB Kutcery Road
Branch, this is known as within locality.
Pay Order
Pay order is used for payment within the cities; the main purpose of pay
Bank charge the commission for its services. The purchaser fill an application
form, which includes the amount of payment or order, the name of the payee
and complete address of purchaser and payee application form is also signed
by the purchaser.
Outside locality:Outside locality is an important type of inland remittances. Outside locality
means the transfer of money payable outside the city i.e. MCB Tower branch

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order is to make payment in record this payment in the bank as evidence.

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DG Khan, sent any draft to a branch situated in Multan city. It is commonly

done through the following four means.
Kutchery Road Branch.)

Telegraphic transfer.

Demand draft

Mail transfer

Bank Draft

Telegraphic Transfer:
Telegraphic transfer is an important mode of remittance. It is the quickest
mean of transferring the funds from one place to another place by the use of
telephone or telegraphic. Now a day, new technology is used for this purpose
i.e. fax, e-mail. The big traders and businessman use this method of
remittance in this method of remittance the purchaser is not responsible for
the dispatch.
Demand Draft & Pay Order:
For safe, speedy, and reliable way to transfer money, Muslim commercial
reasonable rates. Any person whether an account holder of the bank or not,
can purchase a Demand Draft from a bank branch. A demand draft is an
order drawn by a bank on its branch or on another bank in a different place
requiring the later to pay on demand the sum of money specified in the
draft. Pay order is just like demand draft except the pay order is made for
local transfer of money whereas demand draft is meant for remittances of
funds from one city to another.
Mail Transfer:

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bank Demand Drafts and pay orders are available for customers at very

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Mail transfer draft is one of the bank modes of remittance. Mail transfer is
issued by one branch of bank to another branch of the same bank by
instructing to branch to pay the other branch by issuing mail transfer
receipts. In M.T the purchaser is not responsible for dispatch, but the bank
will be responsible for dispatch.
Bank Draft:
Bank draft is the most important type of remittance. Draft is an instrument
issued by a bank. Draft is issued by one branch to another branch out of the
city. The difference branches of same bank can issue the bank draft to each
other and it is also called the banker cheques i.e. the main branch of MCB in
D.G.khan issued the draft to the MCB Multan.
PRODUCT FEATURES & ELIGIBILITY CRITERIA

CURRENT ACCOUNT

Non-profit

bearing

Account

transactional restrictions
PKR 1,000

account

Activation
Deposit
Min
Balance PKR 10,000
Requirement
Permissible

PKR

Currency
Transaction

Unlimited withdrawals and deposits

with

absolutely

no
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Benefit

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Limit
Virtual

Available

Banking, MCB
Mobile

and

Call Center
Zakat
Taxes

No Zakat is deducted on Current Accounts as per the Zakat

& Usher Ordinance, 1980

as per No Zakat is deducted on Current Accounts as per the Zakat

applicable

& Usher Ordinance, 1980

Government
Laws
As
Eligibility

Individuals, Firms (Sole Proprietor, Partnership), Companies

(Public and Private Limited), Trust/ Clubs/ Societies and

BASIC BANKING ACCOUNT

Benefit

A Non-profit bearing account for small depositors who cannot

maintain a minimum balance in their accounts and who wish

Account
Activation
Deposit

to carry out the basic banking needs.

PKR 1000

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Associations

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Min Balance NIL

Requiremen
t
Transaction
Limit

2 Free over the counter deposits (per month) & 2 Free over
the counter withdrawals (per month)
Charges
Available

Virtual
Banking,
MCB Mobile
and

Call

Center
Zakat

No Zakat is deducted on Current Accounts as per the Zakat &

Taxes

Usher Ordinance, 1980

As per Income Tax Ordinance 2001

Eligibility

Individuals only

Limitation

In case where balance in BBA remains ZERO for a

SAVING ACCOUNTS
Benefit

A regular Savings account for everyone with no transactional

Account

restrictions
PKR 100

Activation
Deposit
Min Balance NIL
Requiremen
t

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continuous 06 month period, the account will be closed.

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Profit

Expected rate of return

Profit

Average Monthly Balance

Calculation
Profit

Semi Annually

Payout
Transaction

Unlimited withdrawals and deposits.

Limit
Internet

Available

Banking,
MCB Mobile,
SMS

Alerts

and

Call

Center
Zakat

Zakat is deducted as per the Zakat & Usher Ordinance, 1980

Taxes

Tax is deducted on Profit and Cash Withdrawals as per

Eligibility

Income Tax Ordinance 2001

Individuals, Firms (Sole Proprietor, Partnership), Companies
(Public and Private Limited), Trust/ Clubs/ Societies and

365 Savings Gold Account

Benefit

A Daily Product for high net worth customers with monthly

Account

returns and higher profit on higher deposits

PKR 100

Activation
Deposit
Min Balance NIL
Requiremen

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Associations.

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t
Profit
Profit

As per declared profit rates

Average Monthly Balance

Calculation
Profit

Monthly

Payout
Transaction

Unlimited withdrawals and deposits

Limit
Zakat
Taxes

Zakat is deducted as per the Zakat & Usher Ordinance, 1980

Tax is deducted on Profit and Cash Withdrawals as per
Income Tax Ordinance 2001.

Fixed Deposit Account

Flexi

PKR 500,000

Deposit
Account
Profit
Profit

expected rate of return

On actual number of days in a year

Available

1 month, 2 months, 3 months, 6 months, 9 months, 1 year, 2

Profit

years, 3 years and 5 years

Quarterly, Semi Annually, Annually and Maturity.

Payment
Options
Zakat
Taxes
Eligibility

Zakat is deducted as per the Zakat & Usher Ordinance, 1980

Tax is deducted on Profit as per Income Tax Ordinance 2001.
Existing Account Holders Individuals, Firms and Companies. It
is a mandatory requirement for booking a Term Deposit to

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Calculation
Tenors

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have a checking account (Current/Savings) in the Bank.

1

Mahana Profit Account

Mahana

PKR 500,000

Profit
Account
Profit
Tenors

expected rate of return

2 months, 3 months, 6 months, 9 months, 1 year, 2 years, 3

Available
Profit

years and 5 years

Monthly

Payment
Zakat
Taxes
Eligibility

Zakat is deducted as per the Zakat & Usher Ordinance, 1980

Tax is deducted on Profit as per Income Tax Ordinance 2001.
(Existing Account Holders) Individuals, Firms and Companies.
It is a mandatory requirement for booking a Term Deposit to

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have a checking account (Current/Savings) in the Bank.

SPECIFIC DOCUMENT REQUIRED AS PER TYPE OF ACCOUNT

Individuals Accounts
A photocopy of any one of the following valid identity documents:

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i.

Computerized/ Smart National Identity Card (CNIC)/ (SNIC) issued by

ii.

NADRA.
National Identity Card for Overseas Pakistani (NICOP) issued by

iii.
iv.

NADRA
Pakistan Origin Card (POC) issued by NADRA
Passport; having valid visa on it or any other proof of legal stay

v.

along with passport (foreign national individuals only

In case of a salaried person, in addition to CNIC/SNIC, an attested
copy of his service card or last month salary slip or any other
acceptable evidence of service, including, but not limited to a

vi.

certificate from the employer will be obtained.

In case of individuals who are Self-Employed / Professionals /Private
Business Owners, BM must perform physical verification to ascertain
genuineness of customer and his/her source of funds and expected
type of counter parties. (Fact should be evidenced through VISIT

vii.

Report).
In case of non-salaried/un-employed individual, KYC should be
conducted with extra vigilance and source of income/ funds should
be validated prudently
For Housewife accounts, branches are required to obtain selfdeclaration for source of funds, funds providers,

beneficial

ownership of funds
Sole Trader / Proprietorship
Following documents must be obtained:
i.
ii.
iii.
iv.
v.

Photocopy of identity document of the proprietor.

Registration certificate for registered concerns.
Sales tax registration or NTN, wherever applicable.
Declaration of sole proprietorship on business letter head.
Account opening requisition on business letter head.

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viii.

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Partnership Account
Following documents must be obtained:
i.

Photocopy of identity document of the all the partners and

ii.

authorized signatories.
Attested copy of Partnership Deed duly signed by all partners of

iii.

the firm.
Attested copy of Registration Certificate with Registrar of Firms.
In case the partnership is unregistered, this fact shall be clearly

iv.

mentioned on the Account Opening Form.

Authority letter from all partners, in original, authorizing the
person(s) to open and operate firms account while ensuring that
the given mandate does not violate or contradict with provisions
of the partnership deed. Accordingly it should be ensured that

v.

AOF/ SS card is signed by the authorized partners only.

AOF must contain full information about all partners regardless of

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them being signatories or not.

Companies registered under companies ordinance 1984

i.
Certified copies of:
a. Resolution of Board of Directors for opening of account
specifying the person(s) authorized to open and operate
the account. (Duly Signed by all

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b. Directors OR Company Secretary) and company seal is

affixed however the signatories on Board of Resolution for
opening an account shall be governed by Authorities
spelled out in the Memorandum & Articles of Association
c. Memorandum and Articles of Association.
d. Certificate of Incorporation.
e. Certificate of Commencement of Business, wherever
applicable.
f. List of Directors

ii.

on

Form-A/Form-B

issued

under

Companies Ordinance 1984, as applicable.

g. Latest List of Directors.
Photocopies of identity documents of all the directors and
persons authorized to open and operate the account.

FUNDS TRANSFER
OVERVIEW
Fund Transfer Application (SF-100R) and Deposit Slip is used to transfer funds
from one account to another account OR to another branch of MCB OR to
another Bank (through Real Time Gross Settlement System). Branches should
ensure that the information on FTA is complete in every aspect; is signed by
verified and that the funds are available in the account before accepting the
FTA for processing. For strengthening control, Valid Crossed Cheque(s) of
equivalent amount will be taken from the customer along with FTA.
PROCEDURE FOR INTERNAL FUNDS TRANSFER
Customer: Presents duly completed Funds Transfer Application (FTA) along
with a crossed cheque to the TSO in order to credit Beneficiarys account.

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the account holder(s)/ authorized signatory; signatures are religiously

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i.

Receives Funds Transfer Application from the customer along with

ii.

crossed cheque
Checks the FTA for completeness e.g. Date, Title of Account,
Account number, account holders Signature and contact number

iii.

(mandatory).
Verifies the details & customers signature given on FTA and

iv.

Crossed Cheque (both) with the CBS.

The Status of the Crossed cheque with the FTA should be valid. It
will be checked in CBS for validity of instrument serial number and

v.
vi.

that the status is not stopped / cancelled.

Ensures that any cutting on the FTA is signed by the account holder.
Affixes Transfer Stamp and sign as per assigned financial

vii.

transactional limit on the FTA.

Provides customers copy to the customer.

PROCEDURE FOR CHEQUE DEPOSIT

Customer Presents duly completed deposit slip along with the cheque to the

i.
ii.

Receives cheque along with deposit slip from the customer.

Before processing the transaction, verifies Drawers signature and

iii.
iv.

check sufficient funds are available in the account

Marks his initials on reverse side of cheque.
Affixes Transfer Stamp and signs as per assigned financial

v.

transactional limit on Deposit Slip and Cheque,

Provides copy B to the customer.

MCB HOME REMITTANCES

Customer will provide digit code/ Pin to Designated Officer.

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TSO:

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1. Express Money
2. SPEED CASH
Designated Officer
i.

Enters digit code/ Pin provided by the customer in SSO System web

ii.

based application and extract detail of the message/ transaction.

Matches the beneficiary detail with original valid CNIC / Passport
/Driving License and obtain copy and stamp it as Original Seen

iii.

and sign off.

After being satisfied with the credential of customer, confirms the
transaction on SSO and takes print of detail and prepares cash debit

iv.

voucher and sign off.

Vouchers and supporting documents are forwarded to BOM for

v.

approval.
/BOM after validation of transaction with source document, counter

LOCKER MANAGEMENT
OVERVIEW
Branches all over the country offer Safe Deposit Lockers facility to their
customers. The lockers are invariably to be installed in the Strong Room of
the Branch to ensure maximum security against burglary, theft and riots.
Each locker irrespective of its size has a separate number and is fitted with a

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signs the voucher and forward to TSO for cash payment

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double key lock which cannot be opened except with the two keys, one being
Master Key under the custody of Manager/Authorized Officer and the other
possessed by the customer. The relationship subsisting between Bank and
Person to whom locker is rented out will be that of a Licensee and a Licensor
and not that of a customer and banker.
ISSUE OF LICENSE
Before issuing a license for the use of Locker, the branch must make sure:
i.

Licensee maintains an account in any MCB branch in the same city,

preferably but not necessarily in the branch where the Locker

ii.
iii.

facility is required.
KYC is updated
A license for this purpose can be issued in single or joint names

PROCEDURE FOR ISSUANCE OF NEW LOCKER

Customer requests for Locker facility. Lockers will not be issued against cash;
customers will be required to open an account with the bank to avail this
facility. General Banking Officer: gets the following forms / formalities

i.
ii.
iii.
iv.

Locker Application Form

Specimen Signature Card
Valid copy of CNIC.
The Locker can be issued against a singly or jointly operated
account. If Locker is opened in the name of joint account holders
then particulars of all the applicants will be entered in the Locker
Application Form. However, Lockers Specimen Signature Cards are
obtained for only those customers / mandate holders who are
authorized to operate the Locker.

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completed from the customer:

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v.

In case of photo account, branch must ensure to take fresh

photographs of the customers and paste them on the Locker SS
card.

TERMINATION OF LICENSE
Customer can terminate the contract by giving a written request to the bank.
The designated Locker custodian / authorized staff will check for pending
Locker rent. In case the rent has not been recovered for the last term (or
earlier) the customer will be required to deposit the amount before Locker
can be surrendered. The customer will also handover the Locker key to the
designated Locker custodian / authorized staff.
Once the Locker has been surrendered by the customer it needs to be
cancelled in CBS in order to make it available for re-assignment to another
customer.
In order to cancel a Locker in CBS designated officer has to first refund the
Locker Key Deposit.
System will not allow closing of Locker, if Locker related charges are
customer account to process further.
So Lockers holder will deposit uncollected charges into his account and
system will settle these uncollected charges automatically during End of Day
(EOD). Once uncollected Lockers charges have been recovered, designated
officer will initiate the Locker closure process.

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uncollected. Designated Officer has to recover uncollected charges from

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USE OF LOCKER
The locker will not be used or permitted to be used for any purpose other
than the deposit of documents, jewelry or other valuables etc. No property of
an explosive or harmful nature and any contraband items etc. will be
deposited therein.
KEY DEPOSIT
Apart from rent/License fee presently in force, a 'Certain' amount as per
Schedule of Bank Charges will be payable as key deposit. This amount will be
refunded to the licensee on surrendering of Locker and key and clearance of
dues, if any. System will automatically deduct and refund Locker key deposit
at the time of Locker issuance and surrender to link account.
PAYMENT OF RENT
The Lockers rent / License fee as per the Schedule of Bank Charges will be
payable in advance on yearly basis and will not be refunded in the event of
the Locker being surrendered earlier than the expiry of the term of the
License.

Annual Locker rent will be deducted in advance on the basis of

automatically deduct annual Locker Rent (in advance) on yearly basis from
link account.
AUTOMATED TELLER MACHINE

ATM is a self-service multi-functional system which, not only provides

convenience and flexibility to customers but also helps the Bank to reduce
the work load and cash handling cost at the branches counters.
ATM MANAGEMENT GUIDELINES

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information captured at the time of Locker issuance in system. System will

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i.

ATM CCTV/DVR Surveillance Camera. CCTV stands for Closed Circuit

TV. CCTV uses one or more video cameras to transmit video images
and sometimes audio images to a monitor, set of monitors or video
recorder. ATM CCTV / DVR systems are used for surveillance of all

ii.

customer transactions that take place at ATM premises.

The purpose to install ATM CCTV / DVR setup across the ATMs is to
ensure the surveillance of transactions and any kind of unforeseen
event; The CCTV / DVR setup can help to provide a satisfactory &
secure

iii.

environment

for

the

customers

as

per

regulatory

requirement.
It is of utmost importance that all the ATM lobbies must have CCTV /
DVR setup installed. Branch must intimate ATM Support Team if
camera is not available as soon as the circular is issued. It is the
responsibility of the BM & BOM to ensure that the already installed
CCTV / DVR setup is in working condition. All DVR Cameras must be

iv.

connected with UPS and Genset.

The Camera in the ATM lobby should be installed in such a way that
it should not capture the ATM PIN Pad. Also it should be placed to
clearly record and visualize all the activities in ATM vicinity.
(wherever possible) and out of reach of the customer.

24*7 ATM HOTLINES

Hotlines are dedicated PTCL lines that are installed across the ATMs as
per the instructions of the regulator. These hotlines are directly
connected to 24*7 MCB Call Center to resolve day to day operational
issues at ATMs.

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Additionally, it should be ensured that the camera is hidden

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i.

The purpose of hotlines is to provide immediate assistance to the

customers via phone. When customer picks up the phone
installed at ATM premises he/she comes in contact with the call
center agent for immediate support. All hotlines installed at ATM
locations are connected to PRIs which bypasses the IVR option on
calls generating from ATM booths. These PRIs route the customer
calls to call center agent directly in order to provide immediate

ii.

support to customer.
The branch is solely responsible for the maintenance & upkeep of
hotlines. Branch must engage its local PTCL office or technical
resources in case of malfunctioning of the hotlines. The records
of the communication / follow-up with PTCL should be filed

iii.
iv.

properly for reference.

All branches must pay their monthly bills without any delay.
The ATM custodian branch is responsible to ensure phone set(s)
availability in ATM lobby all the time. Any broken phone set must
be replaced as soon as it is found damaged / lost.

v.
COMPLAINT BOXES

required to ensure that ATM Claim forms are also placed in ATM vicinity
at all times so that customers can lodge claims in-case of ATM
transaction failure. The purpose of complaint boxes is to maintain the
environment for communication between customer and bank and to
resolve customer queries / complaints / claims as quickly as possible. It
is necessary to visit ATM vicinity on daily basis and clear the box
thereof and send the customer complaints on following address.
ATM TRANSACTION CUSTOMER SNAPS

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The complaint boxes are installed across the ATMs. Branches are

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ATM captures 3 snaps of customer during a transaction. These snaps are

taken at the time of Card Insertion, when cash is presented and when card is
ejected. These snaps are archived on a centralized location on daily basis.
ATM transaction snaps are used as secondary evidence incase customer logs
the claim against any ATM transaction.
Guidelines
a. Sufficient lighting in ATM lobby and also ensure that the light is NOT
directly reflecting on ATM camera.
b. Regular ATM room cleanliness, to avoid dust particles entered in ATM
camera protected glass shield.
c. Incase ATM room has glass wall/door, proper cover either through
branding or stickers should be pasted to minimize direct sunlight and
provide confidentiality and secrecy to the customer during the ATM
usage
d. Necessary preventive action should also be taken on avoid direct
sunlight to ATM screen/camera.
ATM CASH REPLENISHMENT

It has been experienced that there is availability of fake currency in the

market so it is really essential to check cash before replenishing it in the
ATM. Proper checking of notes will minimize fake currency circulation and
also helps to avoid customer inconvenience. This is branch responsibility to
feed fresh currency notes in ATM. it is better to feed sequence wise notes.
Soiled, stapled, stacked low quality notes are strictly not allowed as such
notes cause ATM damages. Note sorters should be used wherever available.

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Checking Fake Currency Notes

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Replenishment Procedure
ATM Custodians are required to visit the ATM for Cash Replenishment
purpose at 12:00 Hrs. on a daily basis and shift the ATM status from Active
to Supervisory Mode and will:
i.
ii.

Remove the Scroll along with summaries printed by the machine.

Remove the remaining cash from all cassettes including Divert

iii.

Cassette.
Clear Cash Counter before replenishment the new cash in ATM.

iv.

Physically count and load the cassettes with fresh cash.

Start the ATM for next cycle.

CASH MANAGEMENT OVER LONG WEEKENDS/OFF-DAYS & HOLIDAYS

To ensure continuous availability of ATM facility during long weekends, offdays, bank holidays and specially during Eid days a branch must ensure the
sufficient cash availability in ATM round the clock. Cash outages make ATMs
unavailable

to

the

customers

resulting

into

customer's

inconvenience/dissatisfaction and also expose the Bank to reputational/

weekends/ offdays/ holidays. To minimize occurrence of cash outages in
general and particularly over long weekends/ offdays/ holidays, branches
need to be more vigilant while replenishing ATMs on last working days before
long holidays.

FINANCES / ADVANCES DEPARTMENT:

Besides deposits the other major function of the bank is to advance money
to the client. This function of the bank contributes great deal to the revenues

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regulatory risks and likelihood of such occurrences are even higher on long

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of the bank. Due to its importance for the bankers success, this area is given
special importance and attention. The primary purpose of this department is
to encourage small business to take loans and help them in their business.
The bank earns from the advancement of loan to the people or organization
and charges a certain percentage of interest on it and bank earns profits.
Besides deposits the other major function of the bank is to advance money
to the client. This function of the bank contributes great deal to the revenues
of the bank. Due to its importance for the bankers success, this area is given
special importance and attention.
The bank also makes advances to small size businesses and construction
companies etc. Many MCB branches are having department for granting
advances to the borrowers.

By Cash Credit:
Through this credit facility, the bankers advances loan to the borrower after
having tangible asset as a security. Main characteristics of this facility is that
the total amount is not given to the borrower at one rather it is given in
installments, or whenever required. The borrower has to pay the interest only
large commercial and industrial enterprises. The cash credit facility is given
through hypothecation or pledging of goods. Some requirements in
hypothecation:

Custody of stock remains with the borrower.

Banks lien on the stock.

Stock hypothecated must be insured against ire etc.

Customer must submit the stock report on monthly basis.

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on the amount outstanding against him. This credit facility is very liked by

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Frequent stock verification to be done by MCB.

Bank may sent officers or staff in order to supervise verification.

Some characteristics of pledging assets against loan.

Stocks are pledged with the bank under banks lock and key.

Stock must be duly insured against fire and burglary.

On monthly basis stock report has to be prepared by the borrower duly

incorporating delivery of goods, if any during the months.

Delivery of Goods / stock is made against cash payments.

By Discounting Bills Of Exchange:

This credit is a very advanced form of advancing money / credit to the

borrower. It is also termed as factoring. In this facility the bank
purchases the bills of exchange from the borrower. The bank gives face
value of the bill to the borrower after deducting interest on the

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remaining period required for the bill to mature.

STRUCTURE & FUNCTIONS OF ACCOUNTS/FINANCE:

Accounts department is responsible to keep the record of each and every
transaction and prepare reports about the amount of deposits and advances

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and sent to Head office or State Bank of Pakistan on monthly, quarterly and
yearly basis.
DEPARTMENTS OF ACCOUNTS/FINANCE:
The Accounts and Finance department of MCB Kutchery Road Branch
D.G.Khan deals with various routine activities for the bank. The main
activities performed by it are:
a) Budgeting
b) Reporting
c) Maintenance & depreciation of fixed assets
d) Miscellaneous functions
Budgeting:
Accounts and Finance department of a MCB Kutchery Road Branch, for a
year makes budget of branch. Fiscal year of bank starts from January 01 and
ends on December 31. The accounts department starts preparing budget
from October for the next year.
Reporting:
various departments together. Each and every minute detail is provided in
weekly, monthly and annual reports. The reports are submitted to head
office, SBP and to the government. The accounts department prepares many
reports, of which the most common are:

Statement of Affairs

Income & Expenditure

Business Report

SBP Report

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Accounts and Finance department, in the form of reports, clubs the details of

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Outstand Receipt Report

Maintaining of Fixed Assets & their Depreciation:

Accounts and Finance department maintains the record of all the assets and
charges depreciation on them. The bank normally uses the straight-line
method to compute the depreciation. It is calculated on monthly basis and
charged yearly. Bank not only depreciates the existing assets but also the
assets but also the assets transferred in and transferred out.
Miscellaneous Functions:
Accounts and Finance department also performs some other miscellaneous

Closing Entries

Daily activity checking

Report Generation

Minor expense recording

Closing Entries:
Accounts and Finance department also passes the closing entries on
monthly, 6 monthly and yearly bases to calculate the profit and analyze the
overall performance for a certain period.

Daily Activity Checking:-

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functions like

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All the operations performed in various departments of MCB Bank Kutchery

Road Branch D.G.Khan are computerized. The functions are performed
through the customized software. In order to facilitate double-checking of all
the transactions done, every concerned official also passes vouchers and
cheques manually. At the day end all the vouchers passed by various officers
working in different departments are given to Accounts Department

Report Generation:
The reports generated by the accounts department on a daily, weekly,
monthly, biyearly and yearly are written in a proper format. It is neither
necessary nor possible to get acquainted by all of these reports in a short

Daily Advance and Deposit Position:-

Daily Exchange Position

Daily Fund Management

Closing Reports

Monthly Assets & Liabilities

Monthly Budget Review Report

Monthly Monitory Statement

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period of time. Some of the common reports are:

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Monthly Performance Review Report

Monthly fixed investment

From these statements, five reports carry extreme importance. The five
reports are:-

Daily position of advances and deposits

Statement of affairs

Daily exchange position report

Fixed assets statement

Monthly Review of performance.

Minor Expense Recording:

The account department of MCB Bank Kutchery Road Branch has to record
even the minor expenses of the branch like tea for the staff, stationery for
the branch.
Cash Department:
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,

Cash received voucher sheet.

Cash paid voucher sheet.

Paying-in-slip

Cheque Book

Cash balance book

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books, ledger of account:

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Cash department is performing its job completely through computers. Only

two peoples are working in cash department. The only instrument that can
be used to withdraw an amount from an account is the Cheque book. Cashier
manually inspects the Cheque for following:

Signature & date

Cross cutting

Drawee's 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. The cashier at the
same time maintains the Cash Voucher Received Record Sheet". Then
inspect the signature of the customer cancellation mark of checking officer
customer.
Cash Received:
For depositing the cash into customers accounts, there is need to fill in the
paying in slip giving the related details of the transaction. This paying-in-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 paying-in-slip. The depositor
signs the one part of the paying-in-slip one is retained by the bank to show

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and stamp of POSTED is placed on Cheque before hand over the cash to

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an acceptance of the entries made in the slip. The paying-in-slip serves as a

voucher to update to computerized transaction ledger.
The cashier is responsible to receive both the paying-in-slip and cash from
the depositor. The cashier checks the necessary details provided in the
paying-in-slip and counts the cash before he/she tallies with the amount
declared in the slip. If the amount does not tally with the cash given, the
deposit is not entertained until the customer removes the discrepancy. On
the other hand if the two amounts tally, the cashier fills in the Cash voucher
received Record Sheet and assigns a voucher no. Accountant verifies all the
entries in the two documents, if the entry in the two documents tally with
one another, the accountant authenticates the two by singing on the two
documents and posting stamps on the slip. One part of the slip is then
returned to the customer and other is given to the computer operator.
The 2nd 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
an output of transaction ledger. He assigns the stamp POSTED on the
voucher to show voucher transaction entries are posted.
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

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posting balance and after posting. On every transaction computer generates

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figure of receipt and payment of cash is entered in the cash book and the
closing balance of cash is drawn from that i.e.

Opening Balance of Cash + Receipts - Payments = Balance

The closing balance of today will be the opening balance of tomorrow.

Clearing department:
Every bank performs the function of paying and collecting. The cheque
drawn on other bank by the customer of the bank is collected by the bank for
or without charging fees is called clearing.
Clearing of bank instrument include collection and payments of cheque,
demand draft, payment order and dividend warrant etc. it is the greatest
service provided by the bank. It facilitates the customer a lot essential
function of commercial bank is to receive deposit and to honor cheque drawn
Collection and payments of instrument are known as outward and inward
clearing. During my training in clearing department Mr. Ishfaq and qaisar
abbas help me a lot.
Types of clearing:
Following are the three types of clearing;
Outward clearing
Inward clearing

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upon them. Usually cheque is used for making payment to account holder.

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Same day clearing

Outward clearing:
Scrutiny of the deposit slip:
During my internship in clearing department I check that deposit slip and the
cheque should be properly scrutinized before accepting them.
a)
b)
c)
d)
e)

Title and account number are mentioned

Amount tallies with that of cheque
The amount in words and figures are same
There are no unauthorized alternation
The amount, account number, and the title of account in the

customer copy are same as in the original pay in slip.

f) The pay in slip bears the depositors signature and contact number.

Scrutiny of instrument:
Following point should be properly check

b)
c)
d)
e)

dated or incomplete dated

There is no unauthorized alteration on the cheque
Payee name and drawer signature is present
Particulars of cheque should be written with permanent ink.
The amount in both words and figures is required and both should be

f)

match
Any endorsement and special crossing are in order

Procedure for the outward clearing:

Customer present duly completed deposit slips with this instrument to the
clearing teller. Clearing teller receive deposit slip and instrument and check
deposit slip
a) Account number and title of account
b) Signature on the deposit slip along with depositors contact no.

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a) The cheque is not postdated or undated or stale dated or invalid

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c) Amount in words and figures are same/identical

I
d) nstrument amount tally with amount mention on deposit slip.
Scrutinizes instruments.
a)
b)
c)
d)
e)

Validate the customer account number

Endorsement and special crossing are in order
No un_ authorized alteration
Amount in words and figures are identical
The instrument is neither post dated nor undated or stale

Instrument pertain to within city

Intercity instrument will be sent via intercity clearing or collection
arrangement.

Than a fix banks clearing stamp and sign off deposit slip and return
customer copy B to the depositor customer receive B copy of slip and leave
the branch. Clearing processors endorse and sign of on the reverse of
instrument as per the requirement.
Than detach deposit slip from the instrument and enter details on manual

1.

Account number

2.

Title of the beneficiary

3.

Name of bank

4.

Name of city

5.

Total amount
Same day clearing: customer present duly completed deposit slip along
with the instrument to the clearing processor. Clearing processor determine
whether it is same day clearing same is categorize as below.

1.

Amount 500k and above

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register or on an excel sheet detail include

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2.

Both receiving and paying bank are member of same day clearing NIFT

3.

Cheque is received before 9:30 am

Types of cheque collected by clearing department:

a) Transfer cheque
b) Transfer delivery cheque
c) Clearing cheque

Transfer cheque: transfer cheque is collected and paid by the same branch
of the bank.
Transfer delivery cheque: which are collected and paid by two different
branches of a bank located in same city this is called transfer delivery
cheque.
Clearing cheque: when the endorser and endorsee of cheque maintain
their accounts in different banks the collecting bank can receive the amount
of cheque from the endorsee bank .It can send its delegate to each of the
paying to collect the amount of cheque. But this procedure is risky and time

SHORT FALL/WEAKNESSES OF THE ORGANIZATION:

There are the following shortfalls, which I have observed during my internship period in the
MCB Bank.
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.

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wasting. It can maintain account with different paying bank.

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In MCB there is lack of specialized skill because of job rotation policy of human resource
department. The bank should concentrate upon increasing its abilities on individual
service basis.
Mismanagement of time is another big mistake in MCB branches, the bank official time
of closing is 5:30 pm but due mismanagement of time allocation and work the staff is
normally on their seats till 7:00 or 8:00 clock.
MCB is centralized. It means authority is not delegated to branch level. Manager cannot
take initiative regarding different financial decision.
The majority of people are not well aware about the products of MCB Bank it is due to
their very low services of promotional activity.
There is low level of motivation in the employees of the bank.
Rupee Traveler Cheques of MCB Bank can be used in the Pakistan only, because of that
MCB Bank is not able to enhance its revenues and funds.
Bank is not introducing new products these days, so bank should boost the product
development and increase the range of facilities offered for customers to enhance its

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deposits. And the rates of interest on its various products have been reduced.

CONCLUSION:
No doubt MCB is having a lot customers and resources (financial, Human resources, etc) but the
time is came when competition will force company to change its policies to become favorite in
banking world within Pakistan & keep its current place & customer base because at present the
Pakistan economy is feeling heat of recession, as a result banking sector in Pakistan will be
directly affected.

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Almost all the financial indicators of MCB are in the favor of company and also for the investors
under the period of analysis from fiscal year 2008-2013 .It is established that MCB is one of
those banks, whose progress is good comparatively and a higher profit rate. The profit of MCB
has grown consistently during the last few years and this trend is expected to continue into the
future. Therefore, it is concluded that MCB has a very prosperous present and future, which
assures the shareholders of wealth maximization. Side by side of it I think that if bank would be
able to cover and control on the above mentioned recommendations then it would be in such a
situation that will really lead it towards the road of prosperity, development and integrity and
with the above mentioned sentences I think there is too fault of the customers and in order to
make the proper working of the bank the customers should also cooperate with the bank which
will be really a good, ambitious and diligent condition for the bank and then bank will be really

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in such a situation and to compete its competitors in the country as well as on international level.

Recommendations
i.

Before adopting or changing any rules or policies of the bank, efforts should be made to
first of all provide sufficient training to the staff. Providing proper training to the staff
member periodically

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ii.

For avoiding duty timing problem, all the departments should have appropriate staff
members.

iii.

The banks may choose to make its existing products distinctive or to introduce new
products. It is often easier to benefit from adverse changes made by other banks than to
attract customers by innovations.

iv.

A short term promotional technique is to offer price incentives, for example, low interest
rates on advances or limited issue high profit bearing term deposits. Longer term, a Loss
Leader may be offered. For example, profit bearing current accounts are not very
lucrative but any bank can not afford not to offer these. The reduced profits can be
augmented by profits made on other products.

v.

It might be possible to attract another type of personal customers through business

accounts, namely directors and denier employees, etc. Again an incentive package could
be put together.

vi.

It is widely known that there is a substantial Black Economy in Pakistan, Where people
earn income that is undisclosed to the revenues authorities.

vii.

Arguably, there has been a little encouragement from banks to persuade people to open a

viii.

It is also possible to attract/retain personal customers by investment in new technology

like ATMs and Telephone Banking facilities, which made the services quicker, easier,
cheaper and more flexible.

References
Mr.ShahJahan Tareen (Manager MCB)

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bank account.

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Internship
Report On MCB

Mrs.Imrana Perveen (Manager Operation MCB)

Mr. Abdul Lateef
(General Banking Officer)
Mr. M.Arsalan
(Cashier MCB)
www.mcb.com.pk
MCB Annual Report
www.sbp.gov.pk
www.wikipedia.org
www.google.com

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