Final Report On MCB

Table Of Contents
ABOUT MCB:.....................................................................................................................3
Vision Statement..................................................................................................................4
Mission Statement................................................................................................................4
VALUES:.............................................................................................................................5
Trust:................................................................................................................................5
Customer Focus:..............................................................................................................5
Innovation:.......................................................................................................................5
Teamwork:.......................................................................................................................5
Achievement:...................................................................................................................5
Social Responsibility:......................................................................................................5
Structure:..............................................................................................................................6
BANKING AREAS OF MCB BANK.................................................................................7
1. RETAIL BANKING........................................................................................................8
1- Online services............................................................................................................8
2. MOBILE BANKING..................................................................................................9
3. calL center...................................................................................................................9
4. BILL PAYMENTS...................................................................................................11
5. M NET:- ...................................................................................................................12
2- ACCOUNTS: ................................................................................................................13
Pak Rupee Accounts.....................................................................................................13
1) Saving Account:...................................................................................................13
2) Current Accounts:.................................................................................................13
3) Term Deposit:.......................................................................................................14
4) Special Term Deposit:..........................................................................................14
5) Smart Saving Accounts:.......................................................................................14
SAVING Accounts........................................................................................................15
1) Saving 365:...........................................................................................................15
2) Saving 365 Gold:..................................................................................................16
Basic Banking Account..................................................................................................16
Khushali Bachat Account..............................................................................................17
FOREIGN Currency Accounts......................................................................................17
1) Saving Accounts:..................................................................................................17
2) Current Accounts:.................................................................................................18
PRACTICAL EXAMPLE.................................................................................................19
Account opening procedure:..........................................................................................19
Types of accounts:-............................................................................................................19
REQUIRED DOCUMENTS FOR ACCOUNT OPENING:.............................................20
For Individual:...............................................................................................................20
For Partnership:..............................................................................................................20
1
3) Sole Proprietorship....................................................................................................21
PROCEDURE OF ISSUANCE OF CHEQUE BOOK:................................................24
3-LOANS:..........................................................................................................................25
FUNDED BASED LOANS...........................................................................................25
1. MCB BUSINESS SARMAYA..............................................................................25
2. PERSONAL Loans:...............................................................................................26
3. MCB Pyara Ghar Loan:.........................................................................................27
4. MCB CAR4U:.......................................................................................................28
NON FUNDED BASED LOANS.................................................................................29
1. BANK GUARANTEE:-........................................................................................29
2. LETTER OF CREDIT:-.........................................................................................29
PRACTICAL EXAMPLE OF ACQURING LOANS.......................................................30
4- CARDS:.........................................................................................................................33
1. Smart card / DEBIT CARDS:....................................................................................33
2. MCB VISA card:.......................................................................................................33
5- REMITTANCES:..........................................................................................................34
Remit Express:-..............................................................................................................34
INSTRUMENTS USED IN REMITTANCE:-..............................................................34
1. Demand Draft (D.D):.................................................................................................34
PROCEDURE FOR ISSUANCE OF DEMAND DRAFTS:........................................35
2. Telegraphic Transfer (TT):........................................................................................36
PARTIES INVOLVE IN TELEGRAPHIC TRANSFER:-...........................................36
3. Mail Transfer (MT):...................................................................................................37
4. Pay order:-..................................................................................................................37
5. Online Fund Transfer:-..............................................................................................38
6. Rupee Traveler Cheques (RTCs):..............................................................................39
6- Clearing:-.......................................................................................................................39
Inward clearing:.............................................................................................................40
Outward clearing:...........................................................................................................40
2. VIRTUAL/ONLINE BANKING...................................................................................41
3. ISLAMIC BANKING....................................................................................................43
1. DEPOSIT SCHEMES:..............................................................................................43
Al-Makhraj Saving Account......................................................................................43
Al Makhraj IANAT Account:....................................................................................44
Al Makhraj Term Deposit:.........................................................................................45
Ijarah..........................................................................................................................46
2
ABOUT MCB:
MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280
billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned
the reputation of a solid and conservative financial institution managed by expatriate
executives. In 1974, MCB was nationalized along with all other private sector banks.
This led to deterioration in the quality of the Bank’s loan portfolio and service quality.
Eventually, MCB was privatized in 1991.
The MCB Bank Limited is one of the largest banks in Pakistan. The MCB Tower in
Karachi serves as the Muslim Commercial Bank's headquarters, and is also the tallest
building in Pakistan. MCB to list on the London Stock Exchange when it raised $150
million floating global depositary receipts.
 MCB is the fourth largest bank in the sector having nearly 8% market share of
total assets and deposits.
 MCB has a low market share of the consumer market compared to its peers (5%).
However, it is expected that this will increase as MCB has been relaunching its
consumer credit side.
 MCB has one of the highest NIMs (Net Interest Margin) in the sector, due to its
ability to maintain low funding costs. It is expected that this margins will be
maintained, with higher yielding consumer loans offsetting pricing pressures in
other segments of the loan book as well as rising funding costs.
 MCB has one of the highest RoA’s (Return on Assets) and RoE’s (Return on
Equity) in the banking sector on account of high NIMs.
During 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 a large and stable deposit base and managing its non-
performing loans via improved risk management processes.
3
Vision Statement
Challenging and Changing the Way you Bank.
Mission Statement
MCB Bank’s team of committed professionals is dedicated to maintaining long term

customer relationships through outstanding service and convenience.
4
VALUES:
Trust:
Trustees of public funds and serve with integrity & commitment. Ethical behavior
is of critical importance to us. Adopt full compliance with internal and external policies
and procedures, operating within the legal framework.
Customer Focus:
Continuously seek to exceed our customer’s expectations, forging and
maintaining long term relationships
Innovation:
Strive to be the market leaders in innovative products and services offering
customized financial solutions with flawless execution
Teamwork:
The diversity of their people is their strength. They inspire and challenge each
other – working together to achieve synergy
Achievement:
People are their most valuable asset. Committed to a result oriented culture. Goals
are clear and merit is the only criterion for reward.
Social Responsibility:
As responsible citizens contribute to the social welfare of the community we live
in.
5
Structure:
Head of Retail Banking
Commercial banking Commercial Banking

Consumer Banking Group Lahore Office Karachi Office
15 General Managers
39 Regional Managers
971Branches
6
BANKING AREAS OF MCB BANK
1 Retail Banking
2 Virtual/online Banking
3
Islamic Banking
7
1. RETAIL BANKING
1- Online services
1. MCB ATM SERVICES
MCB ATM CARDS:-

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.
CARD CATEGORIES
1) 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.
2) 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 card holder has to make at least two transactions
to withdraw the full amount of Rs. 25,000.
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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.
MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365
days.
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

 View the last 4 transactions of your MCB account(s).
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 CENTER
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.
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Services Offered:
1) General Inquires:
 ATM locations
 Account opening procedures
 MCB bank charges
 Product information
 MCB merchant locations
2) 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)
3) 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
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 Debit card blocking
4. BILL PAYMENTS
About MCB 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.
MCB Smart Card or MCB ATM Card Holder can easily pay their bills or re-
charge their prepaid mobile phone account through the following convenient options of
MCB easy bill pay.
Bill Payments Features:
 Pay your bills 24 hours a day 7 days a week.

 Make total payments of up to Rs. 20,000 per day.
 Carry out up to 10 transactions per day per card.
Make either full or partial payments. Full payment is required for PTCL only.
Recharge your pre-paid account for Ufone, Instaphone and Paktel as per their fixed slabs.
Pay as a registered or non-registered user. Registration will help you avoid the time delay
in entering details each time you carry out a transaction.
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5. M NET:-
M-NET enables all the member banks to share their electronic networks. Which
means customers of member banks can use M-NET as well as 1-Link ATMs Nationwide.
M-NET 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, Metropolitan Bank, American Express and First Women
Bank. MNET customers can use over 600,000 ATMs worldwide.
M-Net switch has currently more than 410 ATMs in 50 cities. MCB is one of the
largest networks for secure online real time financial transactions. They 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 they 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.
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2- ACCOUNTS:
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
 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)
 Use your account to pay your bills 24 hours a day, 7 days a week through Virtual
Banking
2) Current Accounts:
 Low average balance requirement.
 Enjoy unlimited free of cost transaction facility at your branch.
Pakistan (conditions apply).
through your MCB Smart Card (local & international).
 Stay in touch with your account through MCB’s Virtual Banking Service.
Banking.
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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.
 Withdraw your 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.
5) Smart Saving Accounts:
MCB Smart Savings Account gives you the optimum value you deserve.
A Savings Account where not only do you get a competitive return, enjoy the
unlimited number of fringe benefits but also stay connected all the time.
Following are some of the benefits,
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MCB Smart Savings Account gives you up to 9 % return per annum. Profit is
calculated on a monthly basis, based on the minimum monthly balance maintained during
that month.
3.0%p.a. - If minimum Balance is Rs. 10,000 Rs. 100,000

Profit will not be paid on any amount above Rs. 300,000
MCB Smart Savings Account is available through vast network of about 600 online
branches all over the country.
SAVING Accounts
1) Saving 365:
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.
 Profit is paid on your account on a half yearly basis.
Banking.
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2) Saving 365 Gold:
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. 1 Million.
 Offers a tiered profit rate structure.
 Stay in touch with your account through MCB’s Virtual Banking service.
Banking
 Get instant updates about your account through MCB’s sms banking.
 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
BBA.
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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.
Khushali Bachat Account

 Low average balance requirement.
FOREIGN Currency Accounts
1) Saving Accounts:
MCB’s Foreign Currency Savings Account offers attractive returns on your Foreign
Currency investment.
 Open a foreign currency Savings account in any of the four currencies i.e. US
Dollar, UK Pound Sterling, and Euro.
 Unlimited transaction facility
 Profit credited to your account on a half yearly basis.
 A foreign currency account can be opened at any of our foreign exchange dealing
branches.
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2) Current Accounts:
MCB’s Foreign Currency Current Account offers 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.
 Open a foreign currency Current account in any of the four currencies i.e. US
Dollar, UK Pound Sterling, and Euro.
 Unlimited transaction facility
 Low balance requirement.
 A foreign currency account can be opened at any of our foreign exchange dealing
branches.
Conditioned accounts
1. Dormant accounts
If current / saving accounts remain inoperative for three years the same should be
transferred from inoperative to unclaimed accounts. If these accounts remain unclaimed
for ten years then become the property of State Bank of Pakistan.
2. Inoperative account
Current accounts if not operative for two years & saving for three years become
inoperative.
3. Unclaimed accounts
Current account not operated for 6 month and saving account if not operated for one year
become dormant accounts.
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PRACTICAL EXAMPLE
Account opening procedure:
The requirements for opening an account are as follows.
• The minimum amount to open an account is Rs. 10,000 but depends upon the
nature of account.
• An introducer preferably of same branch.
• Real CNIC and photo copy of CNIC (of both customer and introducer.)
When all the required documents are completed; documents are checked carefully. If
there are any mistakes they are adjusted further, the signature of prospect account holder
is taken on the signature card, the signature of verifying officer is taken on the form as
well.
Types of accounts:-
• Individual
• Joint
• Proprietorship
• Partnership
• Joint stock
• Government institution.
NATURE OF ACCOUNT:
Following are the nature \s of MCB accounts.
 Current A/C.
 PLS Savings.
 Savings (in foreign currency).
 Term Deposit.
 Call deposit.
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 Khushali Bachat A/C.
The customer is required to select the nature of account which suits to his/ her personal or
business requirements.
REQUIRED DOCUMENTS FOR ACCOUNT OPENING:
The requirements of documentation depend upon the nature of the account which
is going to be opened.
For Individual:
For the opening of an Individual account I asked about the following documents
 Attested Photocopies of Computerized National ID card.
 In case of salaried person, attested copy of his or her service card or any other
acceptable evidence of service, including, but not limited to a certificate from the
employer.
 In case of illiterate person, two recent passport size photographes of the new
account holder besides taking his right and left thumb impression on the specimen
signature card.
 Reference of existing account holder.
For Partnership:
 Attested Photocopies of Computerized National ID cards of all partners.
 Attested copy of “partnership deed” or letter of partnership signed by all partners
of the company.
 Attested copy of registration certification with registrar of the firms
 Authority letter, in favor of the person, who will be authorized to operate account
in the absence of partners
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3) Sole Proprietorship
 Application to open an account on the official letter head of the sole
proprietorship.
 National tax number (NTN)/sales tax registration certificate (if available).
 Evidence of membership of trade organization/chamber of commerce etc.
 List of officials authorized to operate the account and their specimen signatures
a. FILLING OF ACCOUNT OPENING FORM
The client who is willing to open his or her account in MCB need to fill the account
opening form which provides sufficient information to the bank regarding address, nature
of account, residential status etc.
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b. SPECIMEN SIGNATURE CARD
The client is also required to make two signatures in specimen card to keep the record by
bank for future cheque other transactions.
c. FILLING UP DEPOSIT SLIPS:

I filled the slips having to sides the right one and the left one. The color of saving
and current account is changed. For saving it is green and for current account it is blue.
First of all I wrote down the date on the both of the slip. One side of the slip is taken by
the bank and the other side is given to the customer for his / her own record. Than write
the account no of your account in the blocks which looks likes this
• Branch Code
• Currency Code
• Nature of Account
• Account Number
• computer Digit
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Samples of Deposit Slip
Current Deposit Slip used for deposit of cash or transfer of amount
Saving Deposit Slip used for deposit of cash or transfer of amount
23
PROCEDURE OF ISSUANCE OF CHEQUE BOOK:
Cheque book is used for the purpose of withdrawal or deposit; I issued four types
of cheque books that are currently in use for the convenience of MCB account holders.
They consist of 10 leaves, 25 leaves, 50 leaves and 100 leaves, where leaves stand for the
number of pages. All the pages of the cheque book are stamped by the officer, branch
stamp is also affixed, the account holder name, account number, date and cheque book
number is entered in the register.
REQUISITION SLIP:
It is used to issue new check book when old one is finished.
IMPORTANCE OF REQUISITION SLIP:
This slip is very important because if the slip is lost you cannot apply for
another cheque book. You have to pay penalty for this book which is 350. This
requisition slip contains the detail of:
• Title of account
• Cheque book series number
• Signature of issuing officer with the name
• Authorized signature of the customer
• Signature of recipient
• A bank round stamp
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3-LOANS:
There are two types of loans which MCB is offering to its cusotomers.
1. Funded based loans
• Running Financing (business sarmaya)
• Term Finance
• Personal loans
• MCB payara ghar laon
• MCB care 4u
2. Non funded based loans

• Bank Guarantee
• Letter of Credit
FUNDED BASED LOANS

1. MCB BUSINESS SARMAYA
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, and affordable and
keeps your business growing. Because we believe
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
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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.
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.
2. PERSONAL Loans:
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.
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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.
3. MCB Pyara Ghar Loan:
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.
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
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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
Speed
Fast & hassle free processing of application
Availability
Available in all major cities i.e. Karachi, Lahore, Faisalabad, Rawalpindi and
Islamabad
4. MCB CAR4U:
MCB Car4U through its flexibility, affordability, speed and other special benefits
makes you keep up with the fast pace of life...
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
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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
Existing Customers:- Get 1 % discount if you are already our customer for Personal
Loan, Pyara Ghar or Business Sarmaya.
NON FUNDED BASED LOANS

1. BANK GUARANTEE:-
MCB offers sometimes the facility of bank guarantee to its loyal customers for different
business purposes.
2. LETTER OF CREDIT:-
MCB offers the letter of credit facility to its customers and act as issuing as well as
negotiating bank for both importer and exporter. Bank facilitates the transaction between
exporter and importer by providing the letter of credit facility.
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PRACTICAL EXAMPLE OF ACQURING LOANS
Businessmen Compulsory MCB a/c Min. 6 months Debit/credit
Turnover.
Demand for security
Primary
Hypo (R.F 50%)
Pledge (C.F 30%) How much Financing ?
Secondary/ Collateral
R.F 75%
C.F 200% (very risky)
IF Okay
?
Valuation of
Customer is Eligible for Financing Property from
Approved valuator
Send to Credit Risk Making a Proposal of

Control Division AFF
Lahore
BBFS
CIB
Routing Sheet
Call Report
IF clear?
Credit Risk Rating
Manage Valuation
Report
Copy of Previous a/c
Legal Opinion by advisor of
Statement of Stock
a bank
Attach all copies of

Securities with the proposal
And sent it to Credit Hub
(Relevant Circle)
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Approve the demand Building Stock Insurance
Then, the ownership of Send a copy of maintained

Collateral security is File to Lahore
Delivered to bank
DAC
Vetting Certificate Disbursement
Authorization
Certificate
Signature of a customer on
IB Form
Indemnity Bond (Islamic) Form
MONEY
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PROPERTY RELATED DOCUMENTS
• Legal FARAD
• NEC (Non Encumbrance Certificate)
• AKS( direction and dimension)
• Title deed (transfer letter)
• Map
• Property visits report
• SBP Undertaking from the borrower
• Financials of the business
• Monthly Stock Reports
• Property valuation report
• Insurance Of Property
DOCUMENTS REQUIRED FROM CUSTOMERS
• CNIC copy
• Property to be mortgaged.
• Personal Guarantee.
• Hypothecation of stocks/ items/ finished goods.
• Property documents to be mortgaged.
• Personal Net worth Statement
CUSTOMERS SIGNATURE REQUIRED
 Letter of disbursement
 Letter of guarantee
 Demand promissory note
 Letter of hypothecation
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4- CARDS:
1. Smart card / DEBIT CARDS:
MCB now brings you MCB Smart Card –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 Smart Card 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 Smart Card.
2. MCB VISA card:
MCB Visa is not just another card in your wallet. It not only provides the
conventional credit card services in a manner that is superior in comparison, but goes an
extra mile. Introducing unique, innovative and state of the art services, MCB Visa is the
most secure, affordable and rewarding credit card... turning your shopping into a much
more exciting experience. MCB Visa is accepted at all ATMs across Pakistan as well as
at 27 million acceptance locations worldwide.
MCB Visa is not just another card in your wallet. It not only provides the
conventional credit card services in a manner that is superior in comparison, but goes an
extra mile. Introducing unique, innovative and state of the art services, MCB Visa is the
most secure, affordable and rewarding credit card... turning your shopping into a much
more exciting experience.
33
5- REMITTANCES:
Fast, secure and easy-to-use, MCB's Remittance Services is an efficient way to
transfer money overseas. Customer can remit funds from any country to Pakistan through
Swift System.
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
INSTRUMENTS USED IN REMITTANCE:-
1. Demand Draft (D.D):
DD is written order, drawn by one branch of a bank upon another branch of the
same bank, or upon another bank under special arrangement to pay a certain amount of
money to or to the order of a special arrangement. DD is neither payable to bearer nor
drawn on branches situated within the same city. D.D. is issue on the demand of
customer.
34
PARTIES INVOLVES:-
1- Purchaser
2- Issuing or Drawing Branch
3- Drawee Branch
4- Payee/Beneficiary
PROCEDURE FOR ISSUANCE OF DEMAND DRAFTS:
A printed application form is obtained for issuance of demand draft. It should be
properly filled in and signed by the purchaser. It is also be obtained on written request of
a customer after verifying his signature on the letter along with the cheque drawn by him
of the equivalent amount. Name of the payee should be mentioned on DD. Amount on
words and figures should be mentioned. It must signed by the purchasers. Rate of
commission, charges & excise duty recovered at the rate set by the bank.
DEPOSIT OF CASH:
The purchaser at the cash counter along with DD application form will deposit the
amount of DD.
PREPARATION OF DRAFT:-
DD leaf must be name of the issuing branch Payee’s name on the draft should tally with
the name mentioned in application form. Date, serial number, amount in words and
figures & name of drawee branch must be written carefully. All drafts for amount Rs
10000/- and above should be applied test.
(A test is secret key in words written on bank document for the purpose of security
genuineness)
With the red ink amount must be write in “Exactly Rs=20000/-”
The charges of D.D:-
• The charges of D.D. are as under:
Commission: DD. 0.05% of Total amount
Postage Charges: Rs.75
F.E.D: 5% of Commission
35
2. Telegraphic Transfer (TT):
Transfer of funds from one branch to another branch of the same bank or upon
other bank under special arrangement for the payment to the beneficiary through
telegram/ Telex/ Fax is called TT.
• TT is not negotiable
• Funds are not payable to bearer
• Not allow within the same city
PROCEDURE OF ISSUANCE OF TT:
I followed the following procedure of issuing T.T.
• Customer filled a T.T. form (Payment may be by cheque or cash basis).
• After submission of cash / cheque he/she give the form to officer.
PARTIES INVOLVE IN TELEGRAPHIC TRANSFER:-
a) Applicant
b) Drawing Branch
c) Drawee Branch
d) Payee
PROCEDURE FOR ISSUANCE OF TT:
Cash received stamp has been affixed on the application form. Authorized officer should
sign it. And we record it in outward remittance register and TT dispatch register. After
making entries into the register, we write it in Telegram Dispatch Register.
CHARGES OF T.T:-
The charges of T.T. are as under:-
Commission
• Rs.100 up to 100,000/- to 150,000/-
• Rs.150 up to 150,001/- to 200,000/-
• Rs.200 up to 200,001/- to 300,000/-
Postage: Rs.75/-
Tax: Rs.5/- to 20/- up to face value of T.T
36
3. Mail Transfer (MT):
Transfer of funds from one branch to another branch of the same bank within or
outside the city or upon other bank under special arrangement for the payment to the
beneficiary through Mail/ Couriers Service is called Mail Transfer.
Like TT, fund can be remitted by MT for the credit of the payee account or the
payee/ beneficiary can be advised the amount from the Drawee branch either in cash on
proper identification or through his banker.
ISSUANCE PROCEDURE:
 Application on SF-100 revised
 Payment through cash or chque
 Preparation of MT
 Application of Test on MT
 Signing and dispatch of MT
Parties involve:
 Applicant
 Remitting or drawing
 Drawee Branch
 Beneficiary/ Payee
4. Pay order:-
A pay order is a written authorization for payment, made in a receipt from issues
and payable by the bank, to the person named and addressed therein on his giving a
proper discharge thereon.
It should be prepared and signed like demand draft.
37
FEATURES:-
• It is issues by and drawn upon and payable by the same branch of the bank
• It is neither transferable nor negotiable and as such it is payable to the
payee named therein
• It is in a receipt from and therefore, is payable only after obtaining a
discharge of the payee on adequate revenue stamps
• Pay order cannot be issued to a minor
• Pay order is issued for the payment within the same city
PREPARATION OF PAY ORDRE:
Pay order is making for any outside payment. It is also prepared on the demand of
customer. When bank receive any bill then prepare a payorder. When payorder is paid
then we enter the current date.
5. Online Fund Transfer:-
Online fund transfer facility provided by MCB to its customers from one branch
to other (inside and outside the city). When a customer came and ask to make the online
payment in accounts at other branch I filled that given form. After filling the requirement
on this form the amount of the customer is transferred to the responding branch in the
target account by online connecting the branch.
CHARGES ON ONLINE FUND TRANSFER:-
The given charges taken from customer,

200/- Commission
10/- Tax
38
6. Rupee Traveler Cheques (RTCs):
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 traveling and in all walks of life.
Rupee Traveler’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 especially by Travelers.
 Easily enchased: 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.
 Available in denominations of Rs 1000, Rs 5000, Rs 10,000 and gift cheques of
Rs 500.

6- Clearing:-
The clearing record those cheques which are the part of the other banks but
deposited in our bank. These cheques are recorded in computer and these cheques for
collection is send to the NIFT which is stand for national institution for facilities and
technologies. Which are responsible for collecting the entire cheques amount from the
bank?
39
TRANSFER:
Some clients ask to deposit the cheque of other account into their account for this
purpose first the cheque amount is checked whether the account has enough amount in it
or not, then the cheque account is debited and the deposit account is credited.
Inward clearing:
When somebody deposits the cheque of our particular branch in some other
branch or bank, we get it through NIFT services for clearing,
Outward clearing:
It is about the cheques of other banks or other branches that we get by the
customers who ask us to deposit them in their account.
 Separate all cheques
 It must be noted on clearing register
 All D.S must be attached on clearing cheques except C.C.
 Clearing stamp on the back side of all cheques
 Intercity stamp must be on intercity cheques
 C.C stamp on C.C cheques
CHEQUES CLEARING:
 In case of MCB cheques charges 0.15% + postage

 In case of other bank’s charges 0.20% + postage
 In case of unclearing 100+75 charges
40
2. VIRTUAL/ONLINE BANKING
VIRTUAL BANKING:
MCB Virtual Internet Banking offers customers the convenience to manage and
control their banking and finances – when they want to, where they want to. MCB’s
Virtual Internet Banking facility is,
 Simple
 Secure
 Free of cost
With MCB Virtual Internet Banking customer can access any of the banking
services, 24 hours a day, 7 days a week and throughout the year.
MCB Virtual Internet Banking offers a wide range of online services, which makes
customer banking accessible anytime and from anywhere.
 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.
 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
41
1. INDIVIDUAL USERS:
MCB Virtual Banking - Internet banking at its best! It is a safe and convenient
way to manage and control your banking and finances. This service meets your essential
banking needs
2. CORPORATE USERS:
MCB Virtual Banking - Internet banking at its best! It is a safe and convenient
way to manage and control your banking and finances. This service meets your essential
banking needs
42
3. ISLAMIC BANKING
INTRODUCTION:
MCB now provides its customers with the reliable Islamic Financial Services and
support they require to successfully achieve their business objectives.
Islamic Banking Division was formed with effect from 1st January 2003, which in
a short span of time has developed sufficient expertise, necessary infrastructure,
information technology, and manpower to run Islamic Banking Operation and offer
Islamic Banking Products.
ISLAMIC BANKING MANAGEMENT COMMITTEE:
The bank has established an Islamic Banking Management Committee comprising

of the senior executives representing various important functions of the bank, such as,
Credit & Risk Management, Finance, Treasury, Operations, Islamic Banking Division
and Sharia Advisor. The objective of this committee was to review the products offered
by Islamic Banking Branches, and to improve them not only to make them competitive
and practicable but also make them truly Sharia Compliant.
1. DEPOSIT SCHEMES:
Al-Makhraj Saving Account
The minimum deposit requirement for Al-Makhraj Saving Account is only Rs. 5000 and
profits can be earned 6-monthly. Other features associated with this product are as
follows:
1. Minimum initial deposit: Rs. 5000
2. Product to be availed by: Individuals & Joint Account Holders (Local)
Companies, Corporate, Trusts, etc
43
3. Special Advantages:
a. for customer = bi-annual profit payment; withdrawal facility
b. shariah = meets requirements for shariah compliance
4. Additional Features:
 Personalized Cheque books
 Withdrawal Facility from ATM/ Debit Card
 Online deposit as per bank's policy
 Virtual Banking
 Call Centers Facilities
 6-monthly profit payment on the basis of monthly declared rates
 Issuance of duplicate statement of account (as per SOBC)
 Free bank balance certificates (once in 6 months)
 Taking stop payment/ hold mail/ standing instructions
 No penalty if balance falls below minimum level.
 Personal financial consultancy services (regarding Shariah Compliant products)
 Utility bill payment via ATM card
 Choice of statement frequency (as per Schedule of Charges)
5. Weightages: Weightages are made according to tiers (Volume-wise and Time
wise)
6. Communication Process: Announcement on notice boards, and website Banking
Network: IBD's Branch only.
7. Profit payment options, 6 monthly
Al Makhraj IANAT Account:

If you are looking for a chequing account that gives you the ease of doing
unrestricted number of transactions, we offer Al-Makhraj Ianat Account. Ianat Account
may be opened with a minimum of only Rs. 10,000. With all the features and facilities
that this product offers, it is highly recommended for management of business funds.
44
1. Minimum Initial Deposit: Rs. 10,000
2. Product to be availed by: Individuals & Joint Account Holders (Local),
 Personalized Cheque books
 Withdrawal Facility from ATM/ Debit Card
 Online deposit as per bank's policy
 Debit card; Utilities payment via ATM card
 Virtual Banking
 Call center facilities
 Free bank balance certificates (once in 6 months)
 Taking stop payment/ hold mail/ standing instructions
 Issuance of duplicate statement of account (as per Schedule of Charges)
 Choice of statement frequency (as per Schedule of Charges)
 No penalty if balance falls below minimum level.
4. Banking Network: IBD's Branch only
Al Makhraj Term Deposit:

A minimum of only Rs. 25,000 is needed to invest money in Al-Makhraj Term
Deposit. Choice of tenors can be made from a list of options namely 3 months to 5 years.
Details of the product are as follows:
1. Minimum Deposit: Rs. 25,000

2. Islamic Tools used in designing the product: Mudaraba/ Musharaka
3. Tenors Available:1 mth, 3 mth, 6 mth, 1 yr or 2 yrs
4. Product to be availed by: Individuals & Joint Account Holders (Local),
5. Special Advantages:
45
a. For Customers = Profit Payment Options customized to suit needs of
customers; Minimum Deposit requirement’s lower than most banks so it is
more accessible/ affordable for people
b. Shariah = Meets requirements for Shariah Compliance.
a. Call center facilities
b. Taking hold mail/ standing instructions for profit payments etc
c. Personal financial consultancy services (regarding Shariah
Compliant products)
7. Frequency of Announcements: The first announcement shall be made at the end

of the month of December 2003.
8. Profit Payment Options: Monthly/ Quarterly/ At Maturity (Monthly payment
option to be made available later in a few months time)
9. Weightages: Different weightages based on tenors and profit payment options
10. Communication Process: Announcement every month on notice boards, and
website
11. Banking Network: IBD's Branch only.
2. Fund Based Facilities:

MCB Bank offers 2 broad Islamic fund based facilities:
1) Ijarah
2) Murabahah
Ijarah
MCB’s Islamic Ijarah, analogous to the English term 'leasing’, is based on the
‘Ijarah wa Iqtina’ concept which means the sale of the asset to the lessee (customer) after
the Ijarah has matured. Under this scheme, MCB will be the owner of the asset, and you
(lessee) will be given the asset to use for a certain period of time in return for monthly
rental payments. MCB will give a separate unilateral undertaking that it will offer to sell
46
the asset to you (lessee) at the maturity of the Ijarah agreement at a price that may be
equal to the security deposit amount, hence the term ‘Wa Iqtina’
1. Al Makhraj Car Ijarah Concept.
Under the Al-Makhraj Car Ijarah scheme, you can get a car of your choice
against monthly rentals payable to MCB Islamic Banking.
Special Attractions
a. Free from Riba
b. Fully Shariah Compliant
c. No rental payments from the date of booking till the time of delivery
d. No up-front registration / tax related expenses and fees
e. No up-front Insurance payment
f. Nominal processing fee of Rs. 4400 (Non-refundable)
2. Equipment Ijarah
Ijarah for Machinery and other equipment to corporate clients.

 Security Deposit
10% Minimum plus any other security required by the Bank from time to time.
 Legal Documentation
Agreement to Ijarah
 Other Documentation
Unilateral undertaking by the Bank to offer to sell the asset at maturity. Unilateral
undertaking by the lessee to purchase the asset at the Pre-Agreed Purchase Price on
termination of Ijarah before Maturity.
47
2. Murabahah
A contract between a buyer and a seller under which the later first purchases the
goods at the request of the former i.e., customer and then sells it to same customer after
adding profit.
Buyer Bank’s customer
Seller Bank
Agent Customer for foreign transaction bank’s approved broker for local transaction
customer for local transaction also (unmanageable situations)
Murabahah sale price= Cost + expenses incurred + agreed profit
Common Features
a. Request of customer for purchases / import of specific goods.

b. Appointment of customer as agent of the bank (Foreign Transactions) / common
broker (for Local Transactions).
c. The bank after taking possession of goods and establishing its ownership, shall
deliver the same or documents of title thereof to the customer on the basis of offer
and acceptance.
d. Price / profit once fixed cannot be changed either on premature or overdue
repayment.
e. Repayment period once fixed cannot be extended. Rollover of liabilities not
permissible by Sharia. Similarly, goods cannot be repurchased against which
Murabahah already allowed / adjusted.
f. All costs / charges to be incurred pre / post Murabahah execution, to be
determined, calculated earlier and included in Murabahah Selling Price.
g. Custom duties to be either paid in full by bank or customer. If paid by the bank, it
shall be part of Murabahah Selling Price.
h. Appropriate collateral / securities can be obtained as per mutual consent.
i. Insurance to continue till Takaful (Islamic Insurance) is available in Pakistan
48

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Table Of Contents

MCB Bank’s team of committed professionals is dedicated to maintaining long term

Head of Retail Banking

Commercial banking Commercial Banking

1. MCB ATM SERVICES

MCB ATM CARDS:-

1) MCB ATM Regular Card:

2) MCB ATM Gold Card:

At the forefront of technological excellence, MCB proudly introduces MCB MOBILE

Mobile Banking at a Glance:

Banking at your Fingertips:

With MCB Mobile Banking you can:

 Check your balance

About MCB Bill Payments:

Bill Payments Features:

 Pay your bills 24 hours a day 7 days a week.

Pak Rupee Accounts

 Low average balance requirement

At MCB, you can open an account that fits your requirements.

 Avail your choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4

4) Special Term Deposit:

 Highly attractive profit rates

Following are some of the benefits,

3.0%p.a. - If minimum Balance is Rs. 10,000 Rs. 100,000

Basic Banking Account

Khushali Bachat Account

MCB’s Foreign Currency Current Account offers the convenience of unlimited

Following are the nature \s of MCB accounts.

REQUIRED DOCUMENTS FOR ACCOUNT OPENING:

 Attested Photocopies of Computerized National ID card.

 Reference of existing account holder.

a. FILLING OF ACCOUNT OPENING FORM

c. FILLING UP DEPOSIT SLIPS:

Saving Deposit Slip used for deposit of cash or transfer of amount

It is used to issue new check book when old one is finished.

IMPORTANCE OF REQUISITION SLIP:

2. Non funded based loans

FUNDED BASED LOANS

 Equal monthly installments

Loan amount renewed anytime after nine months.

3. MCB Pyara Ghar Loan:

 Lower mark up rate

NON FUNDED BASED LOANS

Send to Credit Risk Making a Proposal of

Attach all copies of

Then, the ownership of Send a copy of maintained

Indemnity Bond (Islamic) Form

DOCUMENTS REQUIRED FROM CUSTOMERS

1. Smart card / DEBIT CARDS:

2. MCB VISA card:

1. Demand Draft (D.D):

PREPARATION OF PAY ORDRE:

5. Online Fund Transfer:-

The given charges taken from customer,

Rupee Traveler’s Cheques Features:

 In case of MCB cheques charges 0.15% + postage

ISLAMIC BANKING MANAGEMENT COMMITTEE:

The bank has established an Islamic Banking Management Committee comprising

Al Makhraj IANAT Account:

Al Makhraj Term Deposit:

1. Minimum Deposit: Rs. 25,000

7. Frequency of Announcements: The first announcement shall be made at the end

2. Fund Based Facilities: