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Oct 27, 2009
History Of Banking
Evolution of Banking
It has not so far been decided as to how the word ‘Bank’ originated. The explanation of this
origin is attributed to the fact that the jews in Lombardy transacted the business of money
exchange on banches in the market place and when the business failed, the people destroyed the
Bank. Incidentally, the word ‘bankrupt’ is said to have been evolved from this practice. The
opponents of this opinion argue that it was so, then how is that the Italian moneychangers were
never called ‘Banchierei’ in the Middle Ages?
Other authorities hold the opinion that the word ‘Bank’ is derived from the German word back
which means joined stock fund. Then ‘Back’ was Italianize into ‘Bank’.
Early Growth
Banking in fact is as primitive as human society for eversince man came to realise the
importance of money as a medium of exchange. Perhaps it was the Babylonians who developed
banking system as early as 2000 B.C. It is evident that the Temples of Babylon were used as
‘Banks’ because of the prevalent respect and confidence in the clergy.
King Hamurabi ( 1728 – 1686 B.C ), the founder of the Babylonian empire, drew up accede
where in he laid down standard rules of procedure for banking operations by temples and great
landlords. He got his code inscribed on the block of diorite about 8 feet tall, containing about 150
paragraphs which deals with nearly all aspects of loans, interest, pledges, guarantees, natural
accidents, loss, theft etc. Later on Sumerians, Babylonians, Hitties and Assyrians standardised
the values of the goods in silver, copper and bronze.
It is not certain as to whom invented money but history recess that king of Lydia castled
electrum ingots of identical shapes and of uniform weights with a triple emblem engraved on it
as an official guarantee of value in 687 B.C. In 1401 a German public bank was framed
comprising the operations of discounting and transferring of money. By the 16th century, some
more public banks were formed in Venice, Milan, Amsterdam, Hamburg and Nuremburg. In
order to streamline Banking organisations and techniques, conferences were held in Nuremburg
from 1548 to 1551 and it was agreed that the commercial interest of the time needed a bank with
facilities of growth and transfer but it should not be a bank run by private individuals. Ultimately
in 1587, a State Bank under the name of banco DI rialto was formed in Genoa. Later the bank of
Amsterdam was also formed in 1609. This Bank had a guarantee by the State and rendered
valuable services to the Netherlands traders upto the year 1795.
Similarly in 1690, the Bank of Hamburg came into existence in Hamburg with the business of
accepting deposits of fine silver or of foreign money and to run accounts on these deposits. This
Bank rendered great service to the merchants as well as countries it dealt with until 1873, when it
was merged with the Reich bank. By the year 1700, the bank of England was not only issuing
notes but also conducting accounts for customers. Its directors were conducting the business like
that of limited companies. The bank had the monopoly of issuing banking notes. Upto 1813 or
there about in England, the main profit of bank was derived from the circulation of notes.
Development of Modern Banking
In 1918 came into being eleven clearing banks of today. The effect of this historical development
of banking in England has been fairly wide. First, emergence of a small number of large banks
with wide network of branches. Second, increase in the popularity of bank accounts and a large-
scale use of cheques.
In 1946, the labour government nationalised the bank of England and transferred the existing
stock to the nominee of British treasury. In 1955, the British Banks made a departure from
traditional banking by undertaking hire-purchase finance for companies buying industrial plants
and machinery and took interest on hire-purchase finance.
Banking In Pakistan
At the time of independence, there were 631 offices of scheduled banks in Pakistan, of which
487 were located in West Pakistan alone. As a new country without resources it was very
difficult for Pakistan to run its own banking system immediately. Therefore, the expert
committee recommended that the Reserve Bank of India should continue to function in Pakistan
until 30th September 1948, so that problems of time and demand liability, coinage currencies,
exchange etc. be settled between India and Pakistan. The non-Muslims started transferring their
funds and accounts to India. By the end of June 1948 the number of officers of scheduled banks
in Pakistan declined from 631 to 225. There were 19 foreign banks with the status of small
branch offices that were engaged solely in export of crop from Pakistan, while there were only
two Pakistani institutions, Habib Bank of Pakistan and the Australasia Bank. The customers of
the bank are not satisfied with the uncertain condition of banking. Similarly the Reserve Bank of
India was not in the favour of Govt. of Pakistan. The Govt. of Pakistan decided to establish a
full-fledge central bank. Consequently the Governor-general of Pakistan Quaid-I-Azam
inaugurated the State Bank of Pakistan on July 1, 1948. Thus a landmark was made in the history
of banking when the state bank of Pakistan assumed full control of banking and currency in
Pakistan.
The banking structure in Pakistan comprises of the following types.
1. 1) State Bank of Pakistan.
2. 2) Commercial Bank of Pakistan.
3. 3) Saving banks.
4. 4) Co-operative banks
5. 5) Specialised credit institutions.

Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all over the
country and in some foreign countries through a network of branches. All these commercial
banks were nationalised in January 1, 1974, and were recognised and merged into the following
five banks:
6. 1) National Bank of Pakistan
7. 2) Muslim commercial bank limited
8. 3) Habib Bank Limited
9. 4) United Bank Limited
10. 5) Allied Bank of Pakistan
The state bank of Pakistan is the Central bank of the country and was established on July 1,
1948.The separation of East Pakistan and its repercussion in the form of economic depression
has caused a lot of difficulties to the banking system in Pakistan. The network of bank branches
now covers a very large segment of national economy. The numbers of branches have increased
appreciably and there is now on branch of bank for every 3000 heads of population
approximately. There is done reasonable growth in deposits from the establishment of Pakistan.
Besides this growth, specialised credit and financial institutions have also developed over the
years.
The Government of Pakistan in the late 90’s introducing the need for the privatisation of state
owned banks and companies. The private sector has accepted the challenge and most of the
banks are privatised today. The State Bank of Pakistan issues the shares of these periodically.
Bank employees and other common peoples can also purchase these shares and earn profit.
Muslim Commercial Bank Limited

History of Muslim Commercial Bank
Muslim Commercial Bank (MCB) unfolds 52 years of growth. MCB is not an overnight success
story. The bank started corporate life in Calcutta on July 9, 1947. After the partition of the Indo-
Pak Subcontinent, the bank moved to Dhaka from where it commenced business in August 1948.
In 1956, the Bank transferred its Registered office to Karachi, where the Head Office is presently
located. Thus, the bank inherits a 52-year legacy of trust in its customers and the citizens of
Pakistan.
Nationalization
In January 1974, the Government of Pakistan nationalized MCB following the banks
(Nationalization) 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 Pakistan’s 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.
V
In terms of agreement between the Government of Pakistan and the National Group, the group,
IS their holding 50% has purchased additional 24% shares. Now, 25% is purchased by the
making
Government, which shall be sold in the near future.
I
O is one of the leading banks of Pakistan with a deposit base of about Rs. 230 billion and
MCB
total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a
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solid and conservative financial institution managed by expatriate executives. In 1974, MCB was
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nationalized along with all other private sector banks. This led to deterioration in the quality of
T Bank’s loan portfolio and service quality. Eventually, MCB was privatized in 1991.
the
During
A the last fifteen years, the Bank has concentrated on growth through improving service
quality, investment in technology and people, utilizing its extensive branch network, developing
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a large and stable deposit base and managing its non-performing loans via improved risk
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management processes.
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Social Responsibility
As responsible citizens we contribute to the social welfare of the community we live in
Corporate Information
The board of directors has the authority in guiding Bank affairs and in making general policies.
Some directors are the personnel of the MCB Bank and others are successful businessperson and
executives of other major organization. Ten members are included in board of directors, see in a
list.
• ♦Mian Muhammad Mansha Chairman
• ♦S.M. Muneer Vice Chairman
Directors
Ten directors are:
1. 1) Tariq Rafi
2. 2) Muhammad Arshad
3. 3) Shahzad Saleem
4. 4) Sarmad Amin
5. 5) Mian Umer Mansha
6. 6) Aftab Ahmad Khan
7. 7) Atif Yaseen
8. 8) Mohammad Aftab Manzoor
9. President and Chief Executive
Advisor
Raza Mansha,
Audit Committee
Mian Mohammad Mansha, Chairman
Mian Umer Mansha, Member
Aftab Ahmad Khan, Member
Mr. Tariq Rafi , Member

Chief Financial Officer
Ali Munir,
Company Secretary
Tahir Hassan Qureshi,
Auditors
KPMG Taseer Hadi & Co, Chartered Accountants
Riaz Ahmed & Co., Chartered Accountants
Legal Advisors
Mandiwalla & Zafar, Advocates & Legal Consultants
Registered Office
MCB Building, F-6 / G-6,, Jinnah Avenue, Islamabad.
Principal Office
MCB Tower , I.I. Chundrigar Road, Karachi.
Registrar's and Share Registration Office
THK Associated (Pvt.) Ltd.,
Shares Department, Ground Floor,
Modern Motors House,
Beaumont Road, Karachi.,
Product and Services

Online Services
1: MCB ATM Card
With an ever growing number of ATMs operating across the nation, the MCB ATM Network is
the largest and most advanced of its kind in the country, and is part of MCB's continuing efforts
to provide you with convenience that suits your requirements most. And now the MCB ATM has
gone global. MCB's affiliation with Master Card International brings about added facilities for
the MCB traveler abroad with the Cirrus and Maestro networks.
MCB ATM Regular Card
The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per day and a maximum of
3 withdrawals per day per card.
MCB ATM Gold Card

The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a maximum of 6
withdrawals per day per card. The cardholder has to make at least two transactions to withdraw
the full amount of Rs. 25,000.
2: MOBILE BANKING
At the forefront of technological excellence, MCB proudly introduces MCB MOBILE
BANKING. The convenience of accessing your account balance information and mini
statements whenever you want or wherever you may need them, with comfort and peace of
mind.
Mobile Banking at a Glance
MCB Mobile Banking gives you easy and quick access to your account(s) at a time you find
convenient, including all holidays.
Banking at your Fingertips
With MCB Mobile Banking you can:
Check your balance and View the last 4 transactions of your MCB account(s).
A Free Service
MCB Mobile Banking is a free service for MCB account holders who have an ATM card. All
you pay for is the cost of an SMS message if charged by the service provider.
3:call centre
The state of the art MCB call center is the right choice to keep you in step with your ever hectic
schedule by providing you services relating to your account and Smart card at any point in time.
Our well-abreast and friendly call centre team is available 24 x 7, 365 days a year to ensure that
your daily financial obligations are taken care of guaranteeing you a good night’s sleep.
Services Offered
General Inquires
 ATM locations
 Account opening procedures
 MCB bank charges
 Product information
 MCB merchant locations
Financial Services
 Account Balance inquire
 Pay orders request
 Funds transfer request
 Debit card Transactions details
 Last five transactions details
 Demand drafts request
 Cheque book request
 24 Hour ATM card blocking
 Bill Payments (PTCL, SSGC, Mobilink, UFONE, Paktel)
Non Financial Services
 Balance Certificate request
 Bank Statements request
 Address Change request
 Virtual Banking activation
 24 Hour complaint registration
 Zakat Deduction certificate request
 Tax deduction certificate request
 Mobile Banking activation
 Debit card blocking
4: BILL PAYMENTS
MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone bills or
re-charge your prepaid mobile phone accounts anywhere, anytime with security and peace of
mind.
MCB is the only bank that offers you 3 convenient options of making bill payments to PTCL,
SSGC, Instaphone, Mobilink, Paktel and Ufone. So, save your precious time by avoiding long
queues and pay your bills through MCB Easy Bill Pay.
5: MCB VIRTUAL BANKING

MCB Virtual Internet Banking offers you the convenience to manage and control your banking
and finances – when you want to, where you want to. MCB’s Virtual Internet Banking facility is
- Simple
- Secure
- Free of cost.
With MCB Virtual Internet Banking you can access any of the banking services, 24 hours a day,
7 days a week and throughout the year.
What do we Offer
MCB Virtual Internet Banking offers a wide range of online services which makes your banking
accessible anytime and from anywhere.
 Detailed Account Summary of all listed accounts.
 Mini-statements of each of the listed accounts showing recent transaction history for that
account(s).
 Statement-by-Period of each of the listed accounts, based on the period specified.
 Immediate or Scheduled Transfer of Funds between your own accounts, as well as to third-
party accounts setup as beneficiaries, maintaining accounts with MCB.
 Scheduling of ‘One-Time’ as well as ‘Recurring’ Funds Transfers.
 Payment of utility bills for registered Utility Companies.
 Immediate or Scheduled Bills Payment. Scheduling of ‘One-Time’ as well as ‘Recurring’

bill payments. Option for ‘Full’ or ‘Partial’ payment based on the payment conditions
specified by a particular Utility Company.
 Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary to the
corporate employees, who maintain accounts with MCB.
 Bulk Funds Transfer for Corporate Customers.
 Cheque Book Request for any of your listed accounts.
 Payment/Transfer Alerts for reminding, in advance, prior to the processing of specified

payments and transfers.
 Personal Alerts for reminding of pre-specified events and occasions.
Accounts
Khushali Bachat
Khushali Bachat
Account
Pak Rupee Accounts
Enjoy the facility of a savings
account and earn profit on daily Saving Accounts

balances.
Basic Banking
 Low average balance
requirement.
Foreign Accounts
 Profit is paid on your account
on a half yearly basis.
 Cash deposit and withdrawal facility at hundreds of MCB branches across Pakistan
(conditions apply).
 Withdraw cash through Pakistan’s largest ATM network.
 Make cash free transactions, from your account at thousands of merchant outlets through
your MCB Smart Card (local & international).
 Stay in touch with your account through MCB’s Virtual Banking Service.
 Use your account to pay your bills 24 hours a day, 7 days a week through Virtual Banking.
 Get instant updates about your account through MCB’s sms banking.
Pak Rupee Accounts

1: Saving Account
MCB’s Rupee Savings account is the most convenient way to manage your savings.
 Low average balance requirement
 Enjoy unlimited free of cost transaction facility at your branch
 Profit is paid on your account on a half yearly basis
(conditions apply)
 Use your account to pay your bills 24 hours a day, 7 days a week through Virtual Banking
 Get instant updates about your account through MCB’s sms banking
 To open an account, contact an MCB Branch nearest to you.

That’s not all, if you want your branch to serve you from 9.00 a.m. to 5 p.m. without
break, than contact your nearest MCB Full Day Banking branch.
2:Current Account
MCB’s Rupee Savings account is the most convenient way to manage your savings.
 Low average balance requirement.
 Enjoy unlimited free of cost transaction facility at your branch.
 Profit is paid on your account on a half yearly basis.
(conditions apply).
3: Term Deposit
At MCB, you can open an account that fits your requirements.
MCB offers a wide range of attractive term deposit schemes to suit your requirements.
 Avail your choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5
year term deposits.
 Low investment threshold.
 Half yearly profit payment
 Avail a credit facility up to 75% of the total deposit value.
4: Special Term Deposit

MCB’s Special Rupee Term deposits offer a very attractive long term investment option with
ease and convenience.
 Highly attractive profit rates.
 Tenors available are 3 months, 6 months, 1, 3 and 5 years.
 Profit on 3 and 6 months deposit is payable at maturity of deposit.
 Profit on 1, 3 and 5 years deposit is payable quarterly.
 Profit can withdraw your profit amount through our wide network of ATMs.
 Avail a credit facility up to 75% of the total deposit value.
 Contact your branch for information on the present profit rates on offer.
Saving 365
Saving Account with Current Account Facilities!
The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of
unlimited withdrawals.
 Open a Saving 365 Account with a minimum initial deposit of Rs. 300,000.
Low average balance requirement.

(conditions apply).
 Stay in touch with your account through MCB’s Virtual Banking service.
 You can avail a credit facility up to 75% of the total deposit value
Saving 365 Gold
At MCB, you can open an account that fits your requirements.

MCB offers a wide range of attractive term deposit schemes to suit your requirements.
 Open a Saving 365 Gold Account with a minimum initial deposit of Rs. 10 Million.
 Offers a tiered profit rate structure .
 Withdraw cash through Pakistan’s largest ATM network .
 Stay in touch with your account through MCB’s Virtual Banking service.
 You can avail a credit facility up to 75% of the total deposit value.
Basic Banking Account

In compliance with the directives of State Bank of Pakistan via BDP Circular No. 30, issued on
November 29, 2005, the Basic Banking Account has been launched with effect from February
27, 2006.
This product has been introduced to facilitate the low income group as well as the existing
account holders who wish to convert their regular savings or current account into Basic Banking
Account.
The Basic Banking Account is a current account and can be opened with a minimum initial
deposit of Rs. 1000/- only. Account holders will be allowed 2 deposit transactions (either cash or
through clearing) and 2 withdrawals (cash or clearing) each month. All customer-initiated
transactions over and above this limit will be charged a transaction fee. However unlimited free
of charge cash withdrawals are allowed through MCB's own ATMs.
There will be no minimum balance maintenance requirement, and hence no monthly account
maintenance charges will apply.
“In cases where balance in BBA remains ‘zero’ for…” a continuous 6 month period, the account
will be closed automatically, without any notice to the account holder.
All account holders who wish to convert their existing account into Basic Banking Account are
requested to contact their respective Branch Manager.
Loans
1: MCB Business Sarmaya
Business Set... Tau Life Set
Thinking of business expansion? Worried about day to day cash flow issues? MCB Business
Sarmaya offers a running finance facility against your house/flate and is the best way to resolve
all your cash flow problems. It's easy, flexible, affordable and keeps your business growing.
Because we believe
Business Set... Tau Life Set
Flexible
 Running finance facility to use when and for whatever you want
 Financing up to Rs 20 million
 Renewed every year
 Pay back when you want
 No fixed monthly payment
Affordable
Lower mark up and that too only on utilized amount.
High Loan Amount
Loans up to 70% of the value of your house / flat.
Speed
Fast and hassle free processing of application after completion of your documents.
Ease
Doorstep service and assistance from our dedicated sales staff to fill and submit application
along with documents.
Wide Accessibility
Access your Business Sarmaya account through our vast ATM and branch network anywhere in
Pakistan.
Special Benefits
Hassle free process to transfer your similar facility from any other bank at a special discount.
Availability
Access your Business Sarmaya account through our vast ATM and branch network anywhere in
Pakistan.
Existing Customers
Get a discount if you are already a customer of similar facility of any other bank.
2: Personal Loan
“The more you praise and celebrate your life, the more there is in life to celebrate.” MCB
Personal Loan shortens the distance between your dreams and your celebrations
It is fast, flexible and affordable
Fast
 Speedy loan approval
 No guarantor / security / collateral required
Flexible
 Borrow up to Rs. 1,000,000
 1 to 5-year tenures
 Partial and full adjustments allowed anytime during the tenure
 Optional insurance.
Affordable
 Equal monthly installments
 Lower interest rates
 Higher loan limits
Special Benefits
Loan amount renewed anytime after nine months.
Existing Customers
 Fill in and submit the application form along with a copy of your CNIC if you have been a
customer of MCB Car4U, MCB Pyara Ghar or MCB Business Sarmaya for at least 12
months
 Get greater loan limits if you are an existing MCB Branch Customer.
 Get 1 % discount if you already have a similar facility from any other bank and want it
transferred to MCB Personal Loan through our BTF option. Credit Card BTF option is
also available at very competitive rates.
3:MCB Pyara Ghar

FAQs
Apna Ghar Pyara Ghar

Desire a home of your own? Want to renovate your existing home? MCB Pyara Ghar now
provides you with all you want as you can renovate your existing home, buy or construct a dream
house that you always envisioned for you and your family. After all, "Apna Ghar... Pyara Ghar"
Flexible
 Financing up to Rs 20 million
 Financing Tenures from 2 to 20 years
 Options to buy construct or renovate your house or flat
 Option for partial payments
 Option for early payment.
Affordable
 Lower mark up rate
 Loans up to 80% of the value of your house or flat
 Option to club your spouse's income to avail higher financing limits
 Equal monthly installments.
Speed
Fast & hassle free processing of application
Special Benefits
Hassle Free Process to transfer your similar facility from any other bank at a discount.
Ease
Doorstep service and assistance from our dedicated sales staff to fill and submit application
along with documents.
Availability
Available in all major cities i.e. Karachi, Lahore, Faisalabad, Rawalpindi and Islamabad.
Existing Customers
Get discount if you are already a customer of similar facility of any other bank.
4:MCB Car4U
Kahin na Kahin tau Hai 1 Car 4 You
Need a new car or a used one? Like locally manufactured or imported cars? MCB Car 4U can
give you all ... MCB Car4U through its flexibility, affordability, speed and other special benefits
makes you keep up with the fast pace of life ... because we know
Kahin na Kahin tau Hai.. 1 Car 4 U.
Flexible
 Option for financing or leasing
 Financing tenures from 1 to 7 years
 Options for new as well as used cars
 Option for local as well as imported cars
 Financing up to Rs. 20 lacs
 Option for early payment.
 Option for Replacement Loan
 Option for first year insurance financing
Affordable
 Lower mark-up rates
 Lower insurance rates
 Only up to 10% down payment
 Equal monthly installments.
Speed
Fast and hassle free processing of application
Priority delivery on different vehicles
Special Benefits
Option to pay your 1st installment after 3 months
Pay your down payment after your loan is approved
Availability
Currently available in 16 major cities:
Karachi, Lahore, Faisalabad, Rawalpindi, Islamabad, Quetta, Multan, Peshawar, Hyderabad,
Sialkot, Gujrat, Gujranwala, Sargodha, Mirpur (AJK), Jhelum, Sahiwal
Will soon be launched in Rahim Yar Khan, Sukkur, Mianwali, Abbottabad, Mardan and many
more cities.
Existing Customers
Get 1 % discount if you are already our customer for Personal Loan, Pyara Ghar or Business
Sarmaya.
If you are our branch customer, you can avail this facility anywhere in Pakistan.
Cards
Smart Card / Debit Card
Smart card
Credit Card
MCB now brings you MCB SmartCard -a secure and convenient instrument of payment with
unmatched functionalities. It provides 24-hour direct access to your bank account.
The convenience and flexibility of MCB SmartCard will help you live a smarter life. It not only
helps you manage your expenses, but also eliminates undue interest on your day to day credit
card transactions. Your balance is always within your reach and you spend accordingly.
MCB is the only bank to introduce a debit card that gives the option to choose from domestic and
international cards for local and global usage respectively. You can avail the following
functionalities on your MCB SmartCard.
MCB MASTERCARD
THE FUTURE OF MONEY
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 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.
Master Card Features
MasterCard International has expanded globally in more locations in the world than any other
card. The card was introduced by Muslim Commercial Bank Limited in 1995 and now offers
card members over 15 million outlets in 232 countries.
• Photo security- The first bank in Pakistan to introduce the enhanced feature of
photograph on the card limiting fraud in case of card loss.
• Welcomed at over 3, 000 outlets in Pakistan.
• Provides up-to 45 days Free Credit.
• Joining and Annual Fees to suit you.
• 24 Hour Customer Services- Call 111-000-622 and you can get information from our
customer services representatives on new card application or have your queries resolved
anytime of the day.
• Cash Advance Facilities available in Pakistan and worldwide.
Traveler's Cheque
RUPEE TRAVELER'S CHEQUES
MCB Bank has been at the forefront of providing it’s customers with new and innovative
products and financial instruments that are safe, secure and profitable.
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 travelling and in all walks of life.
MCB Rupee Traveler's Cheques- The safest way to Carry Cash
Rupee Treaveler's Cheques Features:

• Easily available: Buy them from any of the designated branches in Pakistan.
• As good as cash: MCB RTCs are safe to carry and can be used without any inconvenience
specially by Travellers.
• Easily encashed: At any designated MCB branch.
• Easily refunded: in case of loss or theft, you can get the full amount back.
• Exclusive security features: Due to special printing and safety precautions, Cheques cannot
be duplicated.
• Denominations: Available in denominations of Rs 1000, Rs 5000, Rs 10,000 and gift

cheques of Rs 500.
• Valid until Used: Validity of Cheques indefinite.
• 24-hour Service available at Airport MCB booths Karachi, Lahore & Islamabad.
• Televerification System allows checking validity of all Cheques through telephone or fax.
Televerification No. (021) 111-000-456. or call MCB CALL CENTRE (021)-111-000-
622
• 24-hour Customer Service Facility: (021) 111-000-123.
• More than 900 MCB Authorized branches are selling and purchasing Cheques all over
Pakistan.
• MCB Rupee Traveler's Cheques are also available at the counters of Foreign Banks such as
ABN Amro and HSBC and private bank i.e. Bank Al-Habib.
GIFT CHEQUES
MCB Gift Cheques, eliminates guesswork in trying to find out the perfect Gift for any occasion
birthdays, wedding, graduation and religious festivals.
Gift Cheque is beautifully packed in a Gold / Silver envelope with a personalized Gift Card
designed to suit all occasions. They are safer than cash, because they can be replaced if lost or
stolen. They are also available at all TCS Express Centres round the clock.
Remittance
Fast, secure and easy-to-use, MCB's Remittance Services are an efficient way to transfer money
overseas.
you can remit funds from any country to Pakistan through Swift System. Please provide the
following Swift Code to your bank in your country.
Swift Code: MUCBPKKA
Please ensure that the following details are included:
 Photo security- The first bank in Pakistan to introduce the enhanced feature of photograph
on the card limiting fraud in case of card loss.
 Name and Account Number of Beneficiary
 Name of the Branch/ Name of the city (Where beneficiary is maintaining an account).
 Our schedule of charges includes International Banking (Imports, Exports, Remittances &
Miscellaneous) tariff rates. You can download it from the following link.
About Remit Express :
Fastest to Pakistan. Anywhere in Pakistan.
The fastest way of getting your money across to Pakistan. Remit Express offers low cost
remittance from U.A.E. and Saudi Arabia. Your relatives, friends or business associates receive
drafts within 72 hours.MCB Remit Express has been specifically designed to meet the needs of
the expatriate Pakistani community residing in the Gulf countries.
Features
 Easiest and safest way to remit funds
 Remittance within 24 to 72 hours
 Personal delivery to the beneficiary
 Delivery confirmation to the remitter
 Message facilities for both parties
 Your beneficiary will receive the amount even if he/she does not have an MCB account
Branches & ATMs
ATMs Locator
MNET Switch Online Branches
Mnet
Branch Network
MNET enables all the member banks to share their electronic networks. Which means customers
of member banks can use MNET as well as 1-Link ATMs Nationwide. MNET member banks
ATM machines accept cards issued by MCB Bank Ltd, Citibank, Standard Chartered, HSBC,
My Bank, Bank of Punjab, Prime Commercial Bank, Saudi Pak Bank Limited, Habib Bank AG
Zurich, Metropolitan Bank, American Express and First Women Bank. MNET customers can
use over 600,000 ATMs worldwide that carry the logo and shop at over 5 million outlets
that carry the logo.
M-Net switch has currently 410 ATMs in 50 cities. We are one of the largest network for secure
online real time financial transactions. We plan to have the network grow in faster pace in future
as MCB itself will be adding more ATMs by the end of the year. The ATM deployment has been
planned in such a manner that a customer will be only a few minutes away from an ATM in
major cities. This coupled with geographic coverage provides the largest convenient spread in
the country, because of which we are very strongly concentrating on Diverse Coverage &
Convenience.
M-Net Switch ATMs are present in all the major cities of the country. They are available in the
hilliest and northern areas of the country such as Murree, Abbottabad and Swat etc thus
providing convenience of accessing 24 hours cash to the customers across the country.
M-Net switch also has its Service Centers in the main cities of the country providing support to
member banks customers. M-Net Switch ATMs are also present in all 3 main Airports of
Pakistan i.e., Jinnah Terminal (Karachi), Allama Iqbal International Airport (Lahore) &
Islamabad International Airport.
MEMBER BANKS & their ATM Locations
In Pakistan, the ATM facilities can be availed at any of the following locations:
 MCB Bank Ltd.
 Standard Chartered
 CITIBANK
 Saudi Pak Bank limited
 KASB
 Prime Commercial Bank Limited
 HSBC
 Habib Bank AG Zurich
 The Bank of Punjab
 Metropolitan Bank
 American Express
 Bank of Khyber
Structure of MCB
PRESIDENT AND CEO
EXECUTIVE EXECUTIVE
DIRECTOR DIRECTOR
Corporate Banking
Group
HRD
Consumer Banking
Group
(continued)
CONSUMER
CORPORATE
BANKING BANKING
GROUP GROUP
GENERAL
MANAGER
REGIONAL
MANAGER
CHIEF
MANAGER
MANAGER
STRUCT
URE OF
MCB –
MUMTAZA-BAD BRANCH
Overall
performance
Of MCB in
2005
Net Profit
Profit after taxation
in 2005 was Rs.
8922.4 million, an
increase of 366%
from Rs. 2431.5
million in 2004.
Since a complete
provision for non-
performing assets
has been made, the
balance of the bank
now reflects its true
strength. For the first
time after MCB’s
privatization in
1991, a dividend of
843 million was
declared last year. It
gives me great pleasure to state that for the year 2005 it has been decided to announce an
increased dividend of 1715 million.
Reserve Fund/Equity
A sum of Rs. 384.24 million has been transferred to Statutory Reserve this year, raising the total
Reserves to Rs. 892.24 million at the end of 2005, from Rs. 50 million as last year.
Deposits
Deposits with the Bank at the end of year 2005 stood at Rs.229.34 billion as compared to
Rs.221.07 billion in 2004.. Let me assure you with confidence that the depositors have complete
faith in MCB.
Advances
Total Advances at the end of 2005 were Rs. 180.32 billion as compared to Rs.137.31 billion in
2004 showing a fall of 34%.nding.
Investments
Investments slightly declined by 3.4%. in 2004 it was 67194.9 million that becaomes 69481.4
million in 2005
Foreign Trade
The bank conducted Import business during the year amounting to Rs.138 billion as compared to
Rs. 89.5 billion in 2004. The export business slightly improved to
Rs.54.7 billion from Rs.37.7 billion in 2005.
Rupee Travellers Cheques
Muslim Commercial Bank who are pioneers of Rupee Travellers Cheque in Pakistan maintained
their leadership position and sales recovered during the year 2005 were Rs. 67 billion an increase
of 57% over the previous year.
Human Resources
In 2004 no of employees were 9889 and they were decrease to 9377 in 2005.
Foreign Operations
Our bank’s foreign operations in Bangladesh and Sri Lanka continue to remain profitable. In
April 1999, the bank opened its third branch in Sri Lanka at Maradana a suburb of Colombo.
Our country is passing through a critical phase of its history. Pakistan’s economy continues to
remain under pressure as it adjusts to new economic challenges and realities. The performance of
the economy directly influences the performance of the financial sector. MCB is cognizance of
its role in the national economy, and will continue to play its role as a lead bank.
MAJOR FUNCTIONAL AREAS

Advances Department
MCB provides the facility to the people who need advance money to meet their requirements.
For getting the advance the following steps are there:
1. 1) Information required by the bank
2. 2) Preparation of credit proposals
3. 3) Sanction advice
1. Initial Information
Following information is required to be submitted to bank.

• ♦Nature & structure of borrower business.
• ♦Names of proprietors, partners or directors.

• ♦Detail of all firms or companies associated with borrower.
• ♦Financial condition of borrower business.
• ♦An assessment of his business abilities.
• ♦Accurate and upto date financial statements of last two years for comparison purposes.
• ♦Market report on the borrower where borrower has maintained an account with another
bank, a report from his bank should also be obtained.
• ♦A report from credit standing bureau of State Bank of Pakistan.
2. Preparation of Credit Proposal
At first a formal application for credit approval is obtained from the party along with complete
group position. The party’s credibility report is obtained from the bank with which the bank is
doing its business. The party’s credibility report is also taken from the Head office of Trade
Information Division.
For obtaining credit, party has to submit the last two years Balance Sheet and Profit & Loss
statement duly attested by authorised auditors. If the party is also involved in export or import
business then the bank also considers the data of three years about import & export. Current debt
and equity ratio is also calculated by the bank. The type of data required to prepare the credit
proposal is to be gathered from the different departments. Some data is obtained from the foreign
Exchange department. Some data is available in Advance Department. The purpose of obtaining
Credit should be explained clearly. The securities offered by the party to the bank are also
evaluated. In case of pledging of property in shape of land or building the complete evaluation of
the property should also be attached.
After all the necessary documents for applying for advance is fulfilled by the party then the case
is sent to Manager for approval. If the credit limit is in his range then he can decide over it
otherwise the case is forwarded to seniors. If there is any discrepancy then the party is informed
of it.
3. Sanction Advice
When the documents required are complete and there is no ambiguity then the party is advised
that their credit or loan is approved and will be available to you soon. There is a separate form
for every annual approval or in case of a new facility (See Annex - ).
The form contains following information:
• ♦Nature and amount of limit.
• ♦Purpose
• ♦Security/ Collateral
• ♦Margin (%).
• ♦Mark up/ Charges

• ♦Validity
Other Terms and Conditions
1. 1) The bank reserves the rights to revise / amend / modify the rates of mark-up commission
or any other conditions of the liabilities within the period so decided by the Bank.
2. 2) The bank shall have full authority to cancel the facilities allowed without assigning any
reason and to call for adjustment of the liabilities within the period decided by the bank.
3. 3) The facilities granted are subject to SBP’s Prudential regulations.
4. 4) The hypothecationed goods, building and machinery must be insured at all times against
the risk of fire, riots, strike, burglary, malicious damage risks withthe bank as the mortgage and
yourself as a mortgager, and the relevent policy held by us.
5. 5) Assets hypothecated to the bank will have to be insured at all times for full market value.
The insurance policy will be made in the joint name of the company and the bank. The relevent
insurance policy will be held by the bank along with the premium payment receipt.
6. 6) Stock statements together with a list of book debts are to be submitted at the end of each
month to reach us by the first week of the following month.
7. 7) The bank would undertake the inspection of stocks from time to time and in any case
atleast once in the calendar year.
8. 8) SBP has imposed Prudential regulations on all the banks. These facilities are being offered
withthe understanding that your company’s financial condition will comply with these
regulations.
9. 9) Audited accounts should be submitted to the bank within six months of date from the date
of your financial year end.
10. 10) All levies and taxes now or at any time hereafter levied and payable in respect of the
financial accommodation and banking facilities set out in this letter will be exclusively borne by
you.
11. 11) All requisites charge forms to be submitted duly filled in and signed by the authorised
persons.
12. 12) For any change in any ownership, prior permission of bank shall be obtained otherwise
existing owners shall also continue to be liable.
13. 13) In normal banking practice the facility is repayable on demand and we reserve to
ourselves the right to vary the terms and condition or ask for repayment if circumstances arrive
which in our opinion justify our doing so.
Types of Advances
MCB provides advances, which are of two types. These are as following:
• ♦Fund Based Advances
• ♦Non Fund Based Advances
1. Fund Based Advances

Funds are given to customer according to their requirement against securities.
These loan are given specially to traders, business, small industrial units, including cottage
industries, agriculturists, thus ensuring an equitable distribution of bank credit among various
sectors of the country’s economy.
There are following types of advances, which are given to customer on fund basis.
1. 1) Industrial loan
2. 2) Commercial loan
3. 3) Agricultural loan
Industrial Loan
Loans are given to industrial units including cottage industries up to or less than RS. 20 million.
Loans and advances shall not exceed amount specified by marginal restriction on the type of
securities offered. Industrial loans are granted to the manufacturing section of the economy
including finance for fixed investments and working capital requirements of small industries.
Loan Period
Loans are allowed for a maximum period of 5 years including a maximum grace period of 1
year. In special case up to 10 years also, depending upon the merit of the case.
Commercial Loan
Total principal amount of loans to a single enterprise/borrower shall not exceed RS. 0.5 million.
Maximum maturity is 3 years, depending upon the nature and type of advances, decided upon
case to case basis.
Mark-up
Both for commercial and industrial loan, mark-up will be charges as per existing rate, subject to
changes from time to time. Presently it is 0.51 RS per day per RS. 1000/-.
Mode of Repayment
Equal monthly, quarterly or half-yearly, repayment of principal and interest or as per term of
approval.
Securities and Margin
Loans can be made against any or more of the following securities mortgages of immovable
property (land and building), pledge of stocks, raw materials, and finished goods, hypothecation
of stocks, raw material, and finished goods, State bank of Pakistan guarantee.
1. Fund based Advances
Following are the Fund based Advances:
• ♦Running Finance(RF)
• ♦Cash Finance(CF)
• ♦Demand Finance(DF)
The detail of above-mentioned items are given below:

Running Finance (RF)
The max time of repayment is one year. It is according to will of customer. This type of advances
are given to Trade, Commerce and manufacturing general purposes. These finances as evident by
the name are given to meet their daily needs. The mark up is charged on daily balances.
Normally 0.54 paisa per thousand is charged on daily basis. It is drawn through cheque.
Demand Finance (DF)
The duration of DF is more than running or Cash Finance. These are made in Lump sum and are
there is a permission to repay the amount in periodic instalment. Upon receipt of documents
negotiated by the seller bank, the opening bank makes sure that documents are according to
terms and conditions of the credit. Bank makes the payment to the party against document and
upon expire date, bank receives back money with mark up rate.
Cash Finance (CF)
MCB gives the facility of cash credit to the business. The borrower gives a specific reason for
the need of cash. The amount is passed through voucher and credited to party’s account.
Normally 0.52 paisa per thousand is charged on daily basis to customers.
Mark up & return of loan
• ♦Mark up will be at the rate of 15 % for timely return of loan otherwise rate of mark up will
be 16 % per annum.
• ♦The payment of mark up on loan will start after 12 months of payment of principal amount.
Eligibility of Applicant
1. 1) The age of applicant should not be less than 19 years and he has not applied for any type of
loan from any bank.
2. 2) Applicant has been living in the residence shown as address for atleast one year.
3. 3) Applicant is not the student nor the employee of any govt organisation.
Eligibility of Guarantor
4. 1) He has been living at the given address atleast for one year.
5. 2) He is not the employee nor the family member of MCB.
6. 3) He is not the officer of any Govt organisation.
Fees for Loan
A fee of Rs 100 will have to be submitted which will be non-refundable.

Important documents required
• ♦Two copies of application form (one original & one photocopy).
• ♦Original Identity card will have to be shown. Similarly two photo copies of ID card will
also be required.
• ♦Two passport size snaps of both applicant & guarantor.
• ♦Original & attested documents of asset of guarantor.
Conditions
The application of loan can be rejected in case of incomplete or wrong information. Approved
loan can be cancelled. It should be informed that the rejection and acceptance of loan are sole
right of bank. If the rent of loan is not paid for more than 3 months then the remaining amount
will be required to refund immediately with 16 % mark up.
Non Fund Based Advances
When an applicant for an advance cannot offer any tangible security the banker may rely on
personal guarantees, letters of credit to protect himself against loss on advance or loan.
There are two type of advances which come under Non Fund Advances.
• ♦Guarantees.
• ♦Letter Of Credit.
Letter Of Credit is explained in Foreign Exchange Department while Guarantees are elaborated
below.
Guarantees
Introduction
Bank examines customer’s relation with the bank 7 the nature of the business. Bank also sees his
past business with the bank. Sometimes bank issues Guarantee on the behalf of the customer by
getting some margin from him. This margin may vary from customer to customer.
Requirements for Guarantee
Banks issue guarantee on the behalf of customers. Limit proposals covering transactions should
be submitted with full detailsfor the approval of appropriate sanctioning authority.
Generally Guarantees are issued in favouring of Shipping companies, Govt Departments
guaranteeing specific payments at future dates by customer on whose behalf the guarantees are
issued. While executing a guarantee, the terms and conditions of the guarantee are closely
examined in order to determine the extent of bank obligations and financial liability under the
guarantee and the type of guarantee, all condition are contained in the guarantee.
Procedure
Bank charges a commission on the amount for which guarantee is issued. Normally the validity
period of guarantee does not exceed one year. After the guarantee has been issued, a copy of
same is issued to the counter guarantee issued to the customer.
Deposit Department
Account Opening
The general banking performs various functions among them the first and most important
function is A/C opening. The process of opening an account is very simple and any body who
would like to open his account could do it easily without any difficulty.
Procedure for Account Opening
1) Application Form
The customer would like to open his account is required to meet with the manager or second
officer, who will give him an “APPLICATION FORM” specifically used for account opening.
Separate colour-coded Application Form is available for each type of account. So that a
particular coloured form is given to the customer to fill in for opening a related account.
2) Specimen Card
As I have already mentioned about “SIGNATURE SPECIMEN CARD”. This card contains
three signatures of an applicant, applicant A/c no, A/c type, branch code, title of A/c, it will be
attached with an application form. Banker uses this card at the time when he receives the cheque;
he compares customer’s signature with the signature on the cheque for avoiding fraud.
Manager has every right not to accept this contract if he is not satisfied by the details provided by
the customer.
3) Account Opening Register
The manager records the necessary details into this register and allots an a/c number from this a/c
opening register. This register is maintained for each type of account and the a/c numbers are
allotted serially. After opening a saving and current account every applicant’s data is entered into
the computer to maintain a safe record and application form is properly filled so that it can be
available when necessary. For fixed deposit only that application form is needed which is
prepared manually, because most of the procedure of fixed deposit is done manually.
4) Cheque Book
Cheque book is issued to the customer when the bank accepts the A/C opening application form.
Types Of Customers
1) Individual
Only one person can operate this a/c. We can call it a personnel or individual a/c.
2) Joint
In case of joint A/c, applicant mentions that how much person will operate the A/c. Instruction
are given for joint A/c such that the account shall be operated by
a) Any one of us or survivor.
In first case if one of the a/c holders died then the other can operate the a/c individually.
b) Any two/All of us jointly.
In second case if one of the a/c holders died then the other partner can’t operate this a/c
individually without having permission from the court.
3) Partnership A/C
For partnership a/c, along with the application form signature card. Other documents are also
needed such as
• ♦Registration Certificate
• ♦Agreement among partners
• ♦Commencement of business
Note
In case of addition or withdrawal of any partner a new agreement will be required.

4) Company Account
For company accounts following documents are required: -
• ♦Private registration
• ♦Resolution of board of directors
• ♦Commencement of business
• ♦Memorandum and Articles of Association
• ♦Balance sheet
Letter of Thanks
Bank prepares two ‘LETTER OF THANKS’ one for the new customer and the other for his
introducer. This act promotes good will among the customer and the introducer.
Closing of an Account
There are no. of reasons of closing an account. Some are listed below:
1. 1) If customer desires to close his account
2. 2) In case of death of one account holder.
3. 3) Bankruptcy of the account holder.
4. 4) If an account contain nil balance or not up to the requirement of rules.
Before closing any account, bank send letter to the account hold for informing him that his
account is going to be closed. There is need an approval form higher authority to close any
account.
Importance of Deposits for Bank
The primary economic function of the commercial bank is to receive surplus income of
individuals, firms, public houses, institutions, companies and to honour cheque drawn upon it.
Deposits are to bank as a backbone is to the body of a man. It is the lifeblood of a bank. The
deposits of a bank are useful in many ways.
The bank borrows money from the general public by accepting deposits by offering suitable rates
of interest to them or simply promise to repay on demand.
Rules for Current Account
Current a/c holder opens Current Accounts on proper introduction only. However, introduction
of a PLS Saving Account holder of repute may be accepted at the discretion of the manager.
A) Minimum Balance
A sum not less then RS. 10000/- in cash as initial deposit is required for opening a current
account and the same may be maintained as minimum average running credit balance.
B) Profit
• ♦No profit will be paid on credit balances held in current accounts.
• ♦The bank reserves the right to allow opening of current a/c at its description.
• ♦All deposits and withdrawal from a current a/c will take place only at the branch where the
account is being maintained.
• ♦Current a/c cannot be overdrawn, except by prior agreed agreements with the bank.
• ♦The correspondence relating to current A/Cs should be addressed to manager of the branch
where the account is being maintained.A
• ♦A distinctive number will be allotted to each current account and shall be quoted on all
correspondence relating to the respective account and at the time of making deposits and
withdraws
C) Issuance of Cheque Book
The Cheque book is issued against the valid requisition slip signed by the account holder as per
signature provided by the bank. The account holder can draw sums from his account by means of
cheque supplied to him by the bank for that particular account. In drawing cheques the amount in
words and figures should be written distinctively and the cheque should be drawn in such a way
as to prevent the insertion of any other word or figure. Account holder should take well care of
the cheque books issued to them. The account holder will pay excise duty of Rs.4 per leaf to the
government.
2) Saving Account
Saving accounts are opened on proper introduction with sums of credit balance within certain
limit for individual (single, joint) institutions, companies, educational institutions etc.
1. Profit and Loss Sharing Account
PLS saving account having a running minimum credit balance of RS. 1,000/- would be eligible
for sharing profit/loss of the bank. The bank would be within its rights to make investment of
credit balances in the PLS saving accounts in any manner at its sole discretion and to make use
of the fund to the best of its judgement in the banking business under the PLS system.
Profit/Loss
The profit/loss will be credited/debited on the basis of its net working results at the end of each
half-year. Calculation of products on PLS saving A/c will be made for each calendar month on
the lowest credit balance of an account between the close of business on the 6th day and the last
day of the month. If the balance is less than Rs.100/- the product will be nil.
Rules for PLS
• ♦Account holder can only withdraw sums from his account by means of cheques supplied to
him by the bank for that particular account.
• ♦Post dated and stale cheques shall not be paid.
• ♦The bank reserve to itself the rights to close any account without previous notice any
account which has not satisfactory account credit balance.
• ♦If the account holder withdrawals the money under 7 days notice, the profit loss earning
products will be computed on the monthly minimum balance. Zakat is deducted every year on
non-exempted accounts.
• ♦PLS rate
4. Khush-hali Bachat Account
Target Market
• ♦Individuals who want to pay dues of insurance, HBFC& instalment.
• ♦Individuals living abroad but their families are in Pakistan.
• ♦Busy individuals who don’t have time to pay their dues monthly.
Special Incentives
• ♦Return is calculated on daily average balance.
• ♦Profit is paid half yearly.
• ♦It can be operated at mostly all the branches of MCB.
6. Fixed deposits
Fixed deposits are those deposits which are by the bank under the conditions that they will not be
payable on demand but will be payable under fixed or determinable future time date.
Foreign Exchange Department
Import
This department provides the facility to their customers to import machinery or products from
other countries. It is necessary for the importers to have the licenses, which is issued by the chief
controller of imports and exports. Before obtaining an import license the license must be
registered with the chief controller of import and export. For having the license, an individual or
firm submits the application through his bank.
Documents Required
• ♦Filled application form for Register
• ♦The National Identity Card of the applicant
• ♦National Tax Certificate issued by the Income Tax department
• ♦In case of firm or company, the Memorandum and the Article of Association.
Banker issues the letter of credit normally in the response of the Performa Invoice. The seller
sends this invoice to the buyer and it contains seller name, product quality. Rate, mode of
shipment, and other terms and conditions.
Letter of Credit
Definition of letter of credit
A letter of credit is a written instrument issued by a bank authorising the seller to draw in
accordance with certain terms and stipulating legal forms, that all such bills will be honoured.
Explanatory Definition
A letter of credit consist of an undertaking by an issuing bank that bills drawn by the exporter
will be duly owner provided the comply with the terms of credit.
Reasons For L/C
1. 1) The exporters are uncertain of the importer capacity to pay.
2. 2) The importers are unwilling to pay the amount unless the goods are actually shipped and
the documents received by the bank.
3. 3) In case of non-payment the seller should be assured to legal rights in foreign country.
4. 4) There should be an agency, which should meet the seller’s need of finance when the goods
are shipped.
5. 5) The commercial banks come to the help of exporters and importers.
6. 6) The importers can undertake the obligation to pay to the exporter for the purchase made by
the importer and this is usually done through a letter of credit.
Explanation
A letter of credit is a:
7. 1) Written undertaking by importers bank to a third party i.e. the exporter.
8. 2) That it will be pay or accept draft (letter of credit) drawn upon it up to a started sum of
money within a specified time.
9. 3) That the payment will only be made to the exporter if he complies with the specified terms
of credit.
Parties Involved in a Letter of Credit

There are four parties involved in a letter of credit
• ♦Account party
• ♦Issuing party
• ♦Exporter
• ♦Paying or negotiating bank
Account party or Importer
The buyer or the importer on whose account and request the letter of credit is opened is known as
account party.
Issuing party
The bank, which issues or opens a letter of credit at the request of importer, it is called the
issuing bank.
Exporter
The seller or the party in whose favour the letter of credit is draw is the third party and it is also
known as beneficiary.
Paying or negotiating bank
The paying bank in the exporter’s country on which the draft is drawn is called the paying bank.
Operation of a letter of credit
1. 1) The importer of buyer contacts the seller in foreign country for the purchase of a particular
good or goods.
2. 2) He settles with the seller the quantity and quality of the goods to be importer.
3. 3) The sale contract also includes the method of payment.
4. 4) The importer then submits an application to his bank for the issuing of an individual letter
of credit.
5. 5) The form on which the importer employees for a letter of credit is supplied by the bank.
6. 6) This form contains all the necessary details discussed between the importer and exporter
for the shipment of goods which include the description of merchandise, port of shipment, port
of unloading, the documents against which the bank is the honour the draft, the total value of the
goods etc.
7. 7) If the documents supplied by the seller conform to the terms of contract the exporter will
be paid.
8. 8) The issuing bank will not be responsible if there is any fraud or the merchandise does not
conform to the sales contract.
9. 9) The obligation of the buyers bank is,
• ß To issue letter of credit on agreed terms and condition with the buyer.
• ß To have a proper examination of the documents.
• ß To honour draft when presented with proper documents..
Types of Letter of Credit

1. 1) Irrevocable letter of credit
2. 2) Revocable letter of credit
3. 3) Confirmed letter of credit
4. 4) Unconfirmed letter of credit
5. 5) Documentary letter of credit
1. Irrevocable letter of credit
It is the one in which the issuing bank gives a lasting undertaking to accept and in due course to
pay bills drawn upon it provided the exporter fulfils the terms and conditions. It gives a complete
protection to the exporter.
2. Revocable letter of credit
It is the one in which can be modified or cancelled by the issuing bank at any time without any
obligation on its part. They are not acceptable to the businessman.
3. Confirmed letter of credit
It is that which has the protection of the credit standing of the importers as well as the exporter’s
bank. The exporter bank, which confirms the letter of credit, takes the liability of paying in case
the issuing bank fails to make payment to the exporter.
4. Unconfirmed letter of credit
It is one under which the exporter’s bank does not give any guarantee to the exporter that the
bills drawn will be honoured by the issuing bank. It is the commitment of the issuing bank to
honour the draft. From the exporter’s point of view, the confirm irrevocable letter of credit is the
best form of receiving payment.
5. Documentary letter of credit
It is the one of which provides for bills to be accompanied by documents of title to goods such as
the bills of landing, invoice, the policy of insurance etc.
How a letter of credit is opened?
6. 1) Application for a letter of credit
7. 2) Line of credit
8. 3) Opening of the letter of credit
9. 4) Handling of the documents
10. 5) Payment by the importer to the bank
11. 6) Liability of the issuing bank
1. Application for a letter of credit
An importer prepares an application on the prescribed form available from the bank. The
information which are supplied in the application are based on the contract of sale and include
only the importer feature of contract such as the value of the merchandise, port of shipment, port
of unloading, expiry date of the papers and brief description of the goods. If the bank is satisfied
with the applications, it will signed and acceptance agreement with the importer.
2. Line of credit
Before issuing a letter of credit, bank takes all necessary precautions for securing its credit. The
bank first examines the customers credit standing, the type of goods to be imported, the market
demand for the goods, the collateral offered to cover the credit. Then it establishes the amount
i.e. the line of credit.
3. Opening of letter of credit
The letter of credit can be opened by mail or by cable. When it is opened by mail, the issuing
bank sends letter of credit and to carbon copies to the importer. The importer then dispatches the
letter of credit to the exporter in foreign country by mail. One carbon copy is kept for the record.
The second carbon copy after signing is sent to the bank by the importer. If an importer directs
the bank to open letter of credit by cable, the importer’s bank sends a cable to the corresponding
bank in the foreign country with a request to notify the exporter.
4. Handling of the documents
When the exporter receives a letter of credit, he presents the required documents and the draft to
the bank in his own country after shipping of documents. If the bank is satisfied with the
documents in the importing country and pays the exporter at official rate in the currency of his
own country.
5. Payment by importer to the bank
When a bank approves the application of a customer for opening letter of credit, it does not lend
money to the importer. The bank only lends the importer to use the credit standing of the bank to
the exporter in the foreign country. The bank makes a contract with the importer that when the
draft if send by the negotiating bank for payment the importer will make the payment to the bank
not later then the day only the bank is to honour the obligation. In case of a sight letter of credit
the payment to the corresponding bank is to be made on the day the draft and documents are
received. When the time of letter of credit is used the importer is to arrange the payment not later
than the day on which the draft is to mature.
6. Liability of the issuing bank
The liability of the issuing bank is to examine the documents in order to confirm their validity. If
the documents on the face appear to be in order the payment should be released. If any defect is
found in the documents and the issuing bank honours the draft, the importer can claim damages.
The banker is not responsible to see whether the merchandise conform the sale of contract or
they physically exist. The issuing bank is only responsible for the completeness and regularity of
the documents relating to the letter of credit.
Importance of Letter of Credit
The bank charges nominal commission on financing the import and export shipment.
Benefits to the Banks
• ♦Increased balances
• ♦Commission
• ♦New business opportunities
Increased balances
• ♦The balances are the lifeblood of every commercial bank.
• ♦The banks get mark up on the credit and this mark up increases the money of the bank
Commission
The commission charged by the banks varies with the kinds of letters issued by them. Though
the commissions are small, yet when counted on the whole, they form an important part of
earning of the banks.
New Business Opportunity
The letter of credit provides new business opportunity to the bank. The firms, which are engaged
in the export and import of merchandise, are introduced to the banks, which by serving them
develop profitable relationship.
Opening of Letter Of Credit In MCB
Before opening of L/C certain requirements are necessary that are
• ♦The applicant must has import registration #
• ♦He must has account in that bank
• ♦He must pledges his security against the L/C amount
• ♦He must have IB-8 form, indent or agent form, and performance invoice.
Bank Charges
• ♦The bank takes commission @ 0.40 % of amount of L/C for one quarter and 0.25% for two
or more quarters.
• ♦If L/C amount is low then minimum bank commission is RS 500/-
• ♦Postal charges are RS. 1200/-.
• ♦Stamp duty is calculated @ 0.50% of L/C amount.
• ♦Mark up is calculated at RS 0.50 per day per 1000.
For Collection
• ♦In case of sight payment service charges are calculated @ 0.10 % of bill amount and
minimum charges are RS. 500/-and handling commission is RS. 500
• ♦In case of D/A L/C, commission is calculated @ 0.10 % per month
Advantages of Letter of Credit

Advantages Of letter of credit to the importer and exporter
• ♦Provision of finance
• ♦Credit standing
• ♦Legal right
• ♦Risk covered
• ♦Business expansion
• ♦Bridges credit gulf
• ♦Payment in domestic currency
Documents
Documents are the most important part of international trade. Without them trade cannot be
completed. Documents are of five types.
1. 1) Commercial documents
2. 2) Transport documents
3. 3) Insurance documents
4. 4) Financial documents
5. 5) Official documents
1. Commercial Documents
Commercial documents consist of following forms.

• ♦Invoice form
• ♦Certificate of origin
• ♦Weight note
• ♦Packing list
• ♦Quality or insurance certificate
2. Transport Documents
These documents are related with transfer of goods. These documents consist of following
forms,
• ♦Airway bill
• ♦Bill of lading
• ♦Rail consignment note
• ♦Roadway bill
• ♦Combined transport bill of lading
3. Insurance Documents
Insurance documents consist of following forms.

• ♦Letter of insurance
• ♦Insurance policy
4. Financial Documents
These documents are concerned with the payments of goods. These documents consist of
following forms.
• ♦Bill of exchange
• ♦Clean bill
• ♦Short bill
• ♦Documentary bill
• ♦Bank bill
• ♦Delivery against acceptance

• ♦Delivery against payment
• ♦Promissory note
Clearing Department
Cheques
When we talk of cheques then there are two types of cheques

1) Open Cheque
Open cheque has following properties:
• ♦The word Bearer is not crossed.
• ♦Cross stamp is not there
• ♦Cheque is not of limited companies.
• ♦Self or name should be written on the cheque.
Token
A token is given on open cheques when presented to bank for payment. In this case payment is
made at the spot to the cheque holder. First of all cheque is presented to bank for payment. The
name of holder, no of cheque and amount is written on the register by the bank employee &
token is given to cheque holder. Then Cheque reaches the computer department. There it is again
feeded in computer & it is stamped after checking the holder has enough amount in his account
or not. After feeding in computer ( debiting holder’s A/C ) , the cheque reaches the cash
department where the holder can receives his cash by giving token to the cashier provided that he
has enough amount in his A/C.
2) Crossed cheque
When the cheque does not fulfil the requirement of open cheque then it is known as crossed
cheque.
A) Transfer Delivery
When cheque has following properties then it is proceeded as Transfer Delivery.

• ♦Cheque is crossed.
• ♦Cheque is of MCB.
• ♦Cheque is from local branch.
In this situation cheques are collected separately as transfer Delivery.

Procedure
In Transfer Delivery following process is done.

First of all cheques are noted in Transfer Delivery Ledger with the date in advance because it
takes one day to reach cheque issuing branch in the same city. In T.D Ledger Name of account
holder, Number & amount of Cheque are written and two copies , one original and one carbon
copy of voucher SF-73 B are prepared. Original copy of voucher along with cheque is send to
issuing branch while carbon copy and Pay-In-Slip is with the bank.
The cheque with voucher goes to Main branch then to issuing branch and then reverse from
issuing branch to main branch and then to our branch.
B) Clearing
In clearing the cheques which are

• ♦crossed
• ♦limited company
• ♦different bank in the same city
Procedure
Such cheques are collected as clearing cheques and are noted in Clearing Ledger.NIFT is the
institute that plays the role of cheques collector. Two representative of the NIFT visit the bank in
a day one is for the normal clearing that is to pay next day and the second one is for the same day
cleaing..Three vouchers are issued one is kept along with the slips for the record keeping and the
other two vouchers are send with th echeques to the NIFT. The payment is not given at hand but
it is transferred to account of account holder. In case if cheque is returned due to number of
reasons then the objection is finished and again send to main branch but this time a credit
voucher along with original cheque is send to main branch instead of any Pay-In-Slip.
Advance Clearing
When cheque is sorted for clearing because of different branch in the same city then we note
these cheques in two days advance date because it takes more time to reach that faraway branch .
For example HBL of Baha-ud-Din Zakariya University Multan.
Procedure of Payment of Cheque of Foreign Currency
When cheques are denominated in foreign currency then procedure is not like that of ordinary
cheques of Rs. First of all cheques are issued and the person give cheque to another person.
When any party receives cheque in foreign currency to deposit in his account then it gives it to
the ban where he has his bank account. The Bank sends this cheque to its Head Office. Head
Office send it to the country where transaction is done over that currency. Then cheque goes to
New York. From there it is send to that issuing bank (domestic) from where party has received
cheque whose bank whose cheque it is. N.Y is credited and that bank is debited by that amount.
N.Y send it to head office of our Bank. Then H.O is credited and N.Y is debited. Amount of
Foreign currency is then send to main or local branch where the party has its account. Now the
account of that person is credited and the H.O is debited
Now there may be two cases:
1. 1) Either account is in Pak Rs.
2. 2) Or account is in that country

3. 3) Or account is in Foreign Currency other than the currency in cheque.
C) Cheque Collection
When cheque is from another city then it is grouped as C.C.
Procedure
SF-37 form is used in Cheque collection (See Annexe ) Original voucher with cheque is send to
main branch. Carbon copy with Pay-In-Slip is taken by bank for record purposes.
Pay-In-Slip
Here it is very necessary to have knowledge about Pay-In-Slip

Purpose
It is used for two purposes

• ♦Whenever we want to deposit cash in our account then pay-in-slip is used by writing
amount on it and depositing it to cashier along with money.
• ♦Whenever we have cheque from any party to be collected in our account we fill pay-in-
slip . One part is attached with cheque and another is given to cheque holder as a receipt.
Types
It is of two types depending upon the type of account.

• ♦Green Pay-In-Slip is used for Saving Account (See Annexe )
• ♦Blue Pay-In-Slip is used for Current Account (See Annexe )
Stamps Used In Bank (MCB)

Following stamps are used in for different purposes.
(1)Cross Stamp
This stamp is used to cross the cheque. Crossing can be done by 3 ways.
a) General Crossing
Sometimes the cheque is crossed by the drawing two lines on the upper left corner of the cheque
without writing any sentence on the cheque.
b) Written Crossing
Cheque can also be crossed by stamping it with sentence “Pays Account Only”
c) Special Crossing
Crossing can also be done by stamping a cheque with the words “MCB GBS Branch”. This
means that now cheque is in use of bank only. If it is lost or dropped then it is of no use to
anybody because now it is a cheque of bank. This cheque will not be cashed any where else.
(2) “Payees Account Will be Credited on Realisation”
This is used to stamp on the back of following instruments.
Cheque (simple). 2) Travellers Cheque. 3) Pay Order. 4) Speed Cash.
This means that the account of the payee will be credited provided that cheque is accepted by
Drawer’s bank otherwise not.
(3) Disbursement Guaranteed; Payees Account will be credited on Realisation
It is used to stamp on the back of following instruments
1) Demand Draft . 2) Foreign Remittance
(4) Clearing Stamp
This stamp is placed in front of clearing voucher on the same day in which clearing was made
(one day advance date). Or the date in which it is presented by Main branch in State Bank Of
Pakistan.
(5) Round Stamp MCB
It is used in two places.
• ♦When we are dealing with C.C then we write the number of C.C which is written inside the
stamp. One stamp is on cheque and other on Pays-In-Slip.
• ♦When we fill Pay-In-Slip and give it to the bank officer along with cheque then he places
this round stamp on the face of one part of Pay-In-Slip and marks his signature on it and give it
to the customer as a evidence.
TRANSFER
• This stamp is used at that time when the cheque has been transfer to the required account
DAK RECEIVED
• This stamp is used at that time when any thing is received by post just to make it the property
of the bank.
Reasons for Cheque returned unpaid in Cross Cheques

Following are the reasons for the cheque return.
• ♦Cheque incomplete
• ♦Clearing stamp Required.
• ♦Drawer’s sign incomplete
• ♦Drawer’s sign different from specimen

• ♦Post Dated
• ♦Payment stopped by drawer.
• ♦Amount in words and figures differ.
Report of Lost or Stolen cheque

In case of lost or stolen incidents following procedure is performed.
• ♦Cheque no of lost cheque
• ♦Whether it was single or double signed.
• ♦Whether it was crossed or related to someone
• ♦Phone / Fax of reporter.
• ♦NIC no of reporter.
• ♦Signature of reporter.
• ♦How cheque was lost.
• ♦FIR Lodged or not.
Green Sheet
At the end of banking time (5:00 o’ clock), three Green sheets are prepared for clearing , cash
and account side. One Green Sheet is also prepared by clearing department.
Heads in Green Sheet
Green Sheet has following Heads:
1) Current A/C(2) Saving or PLS A/C (3) Other A/C(4) General A/C
M.T Payable H.O A/C
T.T Payable Other than 3,2 &1

Pay order
D.D Payable
Sides of Green sheet
There are two sides of green sheet: Debit Side & Credit side.
Both sides should tally in figure amount. If Debit total = Credit total then sheet is balanced and
there is no mistake. It should be taken care that cheques are always debit and pay-in-slip is
always credit. If voucher is of Pink colour then it will be on credit side and if it is of blue colour
then it is debit side.
Remittance Department
Remittance
Transfer of money or equivalent to money from one branch to another branch of the same bank
is called remittance.
Important Terms
Originating branch
It is the branch from which money is send to another branch or the point of origin of remittance.
Responding branch
The branch which receives the instrument or money for remittance is known as Responding
Branch.
Types of Remittance
Remittance is classified into following four types:
• ♦INWARD REMITTANCE
• ♦OUTWARD REMITTANCE
• ♦INLAND REMITTANCE
• ♦FOREIGN REMITTANCE
a) Inward Remittance
The branch which receives the instrument(T.T, D.D etc) directly from the customer or from the
originating branch and is responsible to pay to party is called inward remittance. For example if
some D.D is drawn on our bank and we have to pay the party( to whom it was send).
b) Outward Remittance
The branch which issues or sold the instrument to the responding branch is called outward
remittance. In this case we are sending remittance to another branch of the same bank in any
location.
c) Inland Remittance
Transfer of money from one branch to another branch of the same bank within the same country
is called inland remittance. In this case both originating branch and responding branch will be
situated in the same country.
d) Foreign Remittance
Transfer of money from one country to another country is called foreign remittance.
Modes of payment
MCB uses following four types of modes of payment
1. 1) DEMAND DRAFT (DD).
2. 2) PAY ORDER (PO0.
3. 3) MAIL TRANSFER (MT).
4. 4) TELEGRAPHIC TRANSFER (TT).
1. Demand Draft
• ♦Demand Draft is used for the transfer of money outside station.
• ♦A draft is an instrument drawn by a bank in favour of any person on a branch of its own
bank or any other bank to pay a certain amount of money which is demanded to the person
named on it.
• ♦It is not necessary for the demand draft that applicant or recipient account should be open
in originating and responding branches.
• ♦It is one of the cheapest methods of transference of money within the country or outside the
country.
• ♦Applicant has to fill in the application form for availing the facility of demand draft. After
depositing the amount of draft, remittance officer prepares the cheque of demand draft.
• ♦When banker issue draft to the customer, he also records customer particulars in a demand
draft register where record is maintained branch wise.
• ♦Responding branch and originating branch debit/credit the head office account and send the
daily statement of transaction to head office.
2. Pay Order
• ♦Pay Order is used as instrument for transfer of money within station or city.
• ♦Pay order is written order, which is issued and received by the same bank or drawn and
payable on same branch.
• ♦For pay order it is not necessary that applicant should be account holder.
• ♦It is used for local transference of money from one person to another.
• ♦The bank charges excise duty and flat rate from the applicant.
2. Mail Transfer
• ♦The transfer of money from one branch to another branch of the same bank through mail or
courier service is called mail transfer.
• ♦The applicant should be the regular customer or the account holder of the responding as
well as originating branch.
3. Telegraphic Transfer
• ♦Originating branch send funds to responding branch instantly and immediately through
telegram and fax.
• ♦Bank charges commission, telegram/fax charges on telegraphic transfer.
Documents Prepared
a. Application Form (SF-100)

Firstly, the applications filled by the applicant in which he writes the name of payee, his a/c # &
the name of branch to which TT is sent as well as the depositor’s name, his a/c # & address.
Then in the office, they collect the charges, commission & excise duty.
Same prescribed application form will be used for MT, TT, DD, and PO.
It is understood that in case of T.T or M.T the remittance is being sent at our entire risk .In case
of T.T Or M.T, there are two options:
1: Advise & Pay
Here the bank informs the beneficiary (to whom the money is sent ) through telephone or
personal contact about the incoming cash.
2: Credit Account No
In this case, if the beneficiary has Account with the Responding Bank then his account is
credited by the incoming amount without informing him.
When the applicant completely fills the application form then he is asked to sign at the bottom of
the page. After signing, the applicant deposits the cash (cash to be sent + Charges) at the cash
counter and receives the application back by having stamped and signed by the cashier. This
application is then submitted to officer.
b. Memorandum (SF-237)
The officer gives Memorandum to the applicant as a evidence of Remittance (see annexe ). Bank
charges along with some information about Remittance is written on it. Officer signs at the end
of the form.
c. Fax/ Telegraphic Message
In case if the Remittance is being sent through FAX/Telegraph then a special form known as “
Fax/Telegraphic Message” (see annexe )
I t contains following information:
T.T No, R.No, Control, Total Rs Amount, Favour, A/C No Of Beneficiary, Test & Date.
T.T No & R.No:
These numbers are noted from T.T register which contains every information of every T.T sent
to different cities( T.T register will be explained more in coming pages).
Control
It is the number written on the form “Confirmation Of Cable Sent”

( SF-89A).(See annexe )
Favour & A/C No
It shows the name of person & his account to whom the cash is being sent.
d. Confirmation Of Cable Sent (SF-89-A)
These are two vouchers A & B. Special features of this form are Originating branch, Responding
branch, Date Total amount & Branch code of both branches. For Example Branch code of MCB
GBS Multan is (1412). These vouchers are used to credit & debit purposes (see annexe ).
e. T.T Register
T.T.No R.No Control Favour Amount Date
Head Office Account
All transaction relating to remittance will be routed through head officer account. All the
branches of MCB have an account of “Head Office”. Through this Head Office account it
become easier for branches to do the transaction with other branches and update their books.
Whole Procedure
1. 1) First of all application is filled by the applicant. Cash is deposited in the cash department.
Applicant is provided with Memorandum as an evidence.
2. 2) Now starts the work of Bank officer. The officer enters the information on the Register. In
case of T.T, the T.T No, R.No, Name of Beneficiary, Branch, Code Of branch, Date, Account of
beneficiary is written on the register.
3. 3) Then “Fax / Telegraphic message” is filled which also contains the same information as
that of register.
4. 4) Two Vouchers are prepared (SF-89-A & SF-89-B) which are in Green & Pink colour.
Amount of T.T is written on them. They also contain the heads of Originating Branch and
Responding branch.
5. 5) Then Test Is written on the extreme left column( T.T, M.T, P.O No). The procedure of it’s
calculation is written above.
Financial Analysis Of MCB

For Year 2004-05
Ratios 2005 2004
GP ratio 84.34 % 77.35 %
Income/ expense ratio 3.07:1 1.55:1
Loan/ Deposits ratio 78.63 % 62.12 %
Total Assets/fix asset ratio 36.51 % 32.40 %
Price earning ratio 7.86 % 8.14 %
Market value per share 167.60 58.70
ROA 3.20% 0.91 %
ROE 65.89% 28.73 %
EPS Rs21.36 Rs 7.21
Book value / Share Rs 41.93 Rs 27.28

Overall analysis
• ♦GP Ratio is having the increasing trend it was 77.35% in 2004 and 84.34% in 2005.
• ♦Income expenses ratio has been increased 1.55:1 to 3.07:1. This shows that the company
has tremendous increase in it’s profit margin.
• ♦The return on assets and return on equity are showing a good position, which refers to an
improved financial position.
• ♦The EPS is showing an increasing trend, which means the firm is enjoying a good financial
position.
• ♦Overall MCB has a good and healthy position. The profitability and income is increasing,
which is attracting new depositors and investors.
• ♦Market value per share of MCB has increased to 167.80 from 58.70. This shows that MCB
has earned a good trend in the stock market. Investors and depositors are having a good interest
on it.
SWOT ANALYSIS
STRENGTHS
MUSLIM COMMERCIAL BANK
State Bank of Pakistan is government owned bank that is why Pakistani nation has a trust
on the bank that their deposits are secured. Due to this reason the deposits of the banks are
increasing with the passage of time.
Agent of State Bank of Pakistan
Muslim Commercial Bank also works as an agent of State bank of Pakistan in those cities
where SBP branches are not working.
Agency Arrangements
Muslim Commercial Bank is enjoying with deposit of different Govt. organization like
Pakistan Railways, PIA, WAPDA, Sui-gas due to agency arrangements.
Deposits
Muslim Commercial Bank is the 3rd largest commercial bank of the country and has Total
Deposits of Rs. 229345 Million and becomes the first bank to cross the deposit of Rs. 350
billion.
Profitability
The pre-tax profits of MCB have gone up to Rs.8922 Million.
Corporate Branches
Muslim Commercial Bank is now the biggest financial institution with assets totaling over
Rs. 298776 Million with 954 local and foreign branches. The bank is the higher financer
in agriculture and commodity operation sector.
Collection of Cash from Shrines
Cash collected from different shrines is also deposited in MCB.
Comprehensive Range of Financial Products
In order to facilitate the customers, MCB is offering the comprehensive range of financial
products.
Investing in Capital Market
MCB has decided to diversify the fund base by investing in capital markets not only in
Pakistan but also in the foreign countries.
WEAKNESSES
Poor Working Conditions
Despite, cultural change program the working condition of the MCB is not up to standard.
Irregularities in Promotion
In MCB there is no smooth and continuous promotion system. Unfair means are used in
order to get the promotion especially the promotion of the managers.
Individual Difference
In MCB the individual difference have strong impact on the organization’s performance
due to the wrong criteria of selection of the employee. So with the passage of time
individual differences are increasing which are undermining the good will of the
organization.
No Major Use of Computer
In MCB there is no major use of computer for maintaining the records of branches as
compared to other banks of the country.
Strong Union
Union has strong impact on performance of MCB. So the top management is unable to
punish the violators and shrieks.
OPPORTUNITIES
Consumer Banking
The basis need of the consumer such as housing, transportation and other durable goods are
not adequately financed by the banks. So by initiating these services, the bank can enjoy
with more funds.
Investing in the Foreign Capital Market
MCB can enjoy handsome return its funding base by investing in capital markets in the
foreign countries.
Investment Banking
Until recently the bank perceived as purely commercial banking entity so in order to
expand its business the bank may start investment banking by investing in the portfolio of
handsome return.
New Branches
MCB by establishing new branches in foreign countries can expand its business and can
enjoy with the profit.
Issuance of Bonds
To enjoy with large amount, MCB can introduce a comprehensive range of bonds.
Night Banking
Despite of poor customer service of MCB, people still come to MCB because of its Govt.
ownership as they feel it secure therefore bank improve its deposit by giving facility of
night banking and also can compete its competitors with positive steps.
Advisory Services
It can establish advisory services in order to facilitate the customers in investing in the
securities.
THREATS
Competition
The no. of banks in Pakistan is increasing with the passage of time. So due to poor working
condition and poor customer service it may be possible MCB will lose its market share in
future.
Inflation
In our country, the rate of inflation is increasing along with the unemployment. So due to
the increase in price of the products, the savings of the nation is decreasing with the
passage of time. So it is the threat for the banking sector. In the future, the deposits of the
bank will decrease.
Government Policy
On MCB Govt. policies have strong impact. A slight change in Govt. policies may affect
the performance of the bank. The bank has to work with in the regulation frame work.
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Oct 27, 2009

2. 2) Commercial Bank of Pakistan.

5. 5) Specialised credit institutions.

7. 2) Muslim commercial bank limited

8. 3) Habib Bank Limited

9. 4) United Bank Limited

10. 5) Allied Bank of Pakistan

Muslim Commercial Bank Limited

• ♦S.M. Muneer Vice Chairman

5. 5) Mian Umer Mansha

6. 6) Aftab Ahmad Khan

8. 8) Mohammad Aftab Manzoor

9. President and Chief Executive

Mian Umer Mansha, Member

Aftab Ahmad Khan, Member

Mr. Tariq Rafi , Member

Tahir Hassan Qureshi,

KPMG Taseer Hadi & Co, Chartered Accountants

Riaz Ahmed & Co., Chartered Accountants

Mandiwalla & Zafar, Advocates & Legal Consultants

MCB Building, F-6 / G-6,, Jinnah Avenue, Islamabad.

MCB Tower , I.I. Chundrigar Road, Karachi.

Registrar's and Share Registration Office

THK Associated (Pvt.) Ltd.,

Shares Department, Ground Floor,

Modern Motors House,

Beaumont Road, Karachi.,

Product and Services

MCB ATM Gold Card

Mobile Banking at a Glance

Banking at your Fingertips

With MCB Mobile Banking you can:

 MCB bank charges

 MCB merchant locations

 Account Balance inquire

 Pay orders request

 Funds transfer request

 Debit card Transactions details

 Last five transactions details

 Demand drafts request

 Cheque book request

 24 Hour ATM card blocking

 Bill Payments (PTCL, SSGC, Mobilink, UFONE, Paktel)

Non Financial Services

 Balance Certificate request

 Bank Statements request

 Address Change request

 Virtual Banking activation

 24 Hour complaint registration

 Zakat Deduction certificate request

 Tax deduction certificate request

 Mobile Banking activation

 Debit card blocking

5: MCB VIRTUAL BANKING

 Detailed Account Summary of all listed accounts.

 Statement-by-Period of each of the listed accounts, based on the period specified.

 Scheduling of ‘One-Time’ as well as ‘Recurring’ Funds Transfers.

 Payment of utility bills for registered Utility Companies.

 Immediate or Scheduled Bills Payment. Scheduling of ‘One-Time’ as well as ‘Recurring’

 Bulk Funds Transfer for Corporate Customers.