Banking Sector Overview

Pakistans banking and finance sector grew by over 21 percent from July 2004- March 2005 amid the eight percent expansion in the services sector in Pakistan. Financial sector in Pakistan is going through a fast-paced transition as new groups were buying out foreign banks operations in Pakistan. The number of listed banks is also increasing. While the income from core banking activity has increasing due to higher business volume, earnings are also expected to improve due to ventures into consumer finance, housing finance and enhanced lending to the agriculture sector.

In just four years the banking industry has expanded tremendously and now there are more than two dozen commercial and investment banks operating in the country. Commercial banks in the private sector had performed well since their inception, registering overall growth in the deposit base and profits. The banks also managed to maintain a healthy credit portfolio. Foreign banks have a strong presence in all major cities and are targeting high net worth individuals and blue chip companies. Their strategy is quite successful as they account for about 34 percent of total sector profits, despite having only 15 percent of deposits and 16 percent of advances.

During the first six months of the ongoing fiscal year, total assets of all the scheduled banks increased by Rs 239 billion. Total assets grew by 8.5 percent from Rs 2,800 billion in June 2004 to Rs 3,039 billion in Dec 2004. During the first six months of 200405, there was also an increase of Rs 277 billion in the net advances of the scheduled banks. Net advances grew by 19.3 percent from Rs 1,437 billion in June 2004 to Rs 1,714 billion in Dec 2004.

2. MCBs Performance Overview

The first half of 2005 was very promising for MCB, as the bank has achieved pre tax profits of Rs. 4.2 billion, compared with Rs. 2.2 billion for the same period in 2004. Profit after tax has more than doubled compared to the corresponding period for 2004 and exceeds Rs. 3 billion highest ever profit in the history of MCB. This translates into earning per shares of Rs. 7.43. Advance and deposit increased to Rs. 156 billion and Rs. 241 billion reflecting a growth of 14% and 10% respectively. Additionally the banks assets expanded by 16% during the half year ended 2005 and crossed Rs. 300 billion marks. Banks equity (capital and reserves) increased by 41% during the half year, which was due to the issue of right shares and retained earnings. Increase in equity would improve

the lending limit and would provide the opportunity for significant growth of the banks balance sheet. This would also help to meet the capital requirement under Basel Accord II, which will be effective from 2007. Based on continuing growth and consistently outstanding performance, MCB has once again received the Euromoney Award 2005 for the Best Bank in Pakistan. MCB has become the only bank to receive the Euromoney Award for Excellence for the fifth time in last six years. In addition, Asia Money has also declared MCB as The Best Domestic Commercial Bank in Pakistan for the year 2005.

3. Products and Services 3.1. Personal Banking

Deposit Accounts
Khushali Bachat Account Khushali Bachat Account, a Rupee savings account is one of MCB Banks most popular products. Due to the low initial deposit, the account can be opened by people from all walks of life and still avail the facility of daily product profit calculation. Mahana Khushali Bachat MCB Monthly Khushali Scheme provides you with a steady income every month. Just purchase a Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every month. Pak Rupee Savings Account MCBs Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. Pak Rupee Current Account MCBs Pak Rupee Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice.

There is no limit on the number of transactions you make in a day plus you can avail finance facility up to 75% of the total deposit. In addition, you have access to a countrywide ATM network convenient cash accessibility 24 hours a day. The facility also provides you with unlimited daily transactions with a limit on maximum withdrawal amount through the ATM machines. Pak Rupee Term Deposit MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. Saving 365 The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of unlimited withdrawals. Foreign Currency Savings Account MCBs Foreign Currency Savings Account offers you attractive returns on your Foreign Currency investment. You can invest in any of the four currencies i.e. US Dollar, UK Pound Sterling, Japanese Yen or Euro Your foreign currency account is exempted from Zakat and withholding tax Foreign Currency Current Account MCBs Foreign Currency Current Account offers you the convenience of unlimited withdrawals i.e. access to your funds whenever you want without any notice. There is no limit on the number of transactions you make in a day. MCB Foreign Currency Term Deposit MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term deposits. Dollar Khushali Account

The Dollar Khushali Account, a Dollar based account was introduced in 1993 at selected MCB Bank branches. Today, you can open a Dollar Khushali Account at over 200 branches in Pakistan.

Loan Products
MCB Business Sarmaya MCB Business Sarmaya is the best Running Finance facility against your residential property which empowers you to manage your business dealings better. So act today and get MCB Business Sarmaya and thus improve your business, avail lucrative opportunities and expand your business, with absolute satisfaction of cash flows. MCB Car4u Life is like a chess board. You plan your career options. You analyze your business moves. But when you really want to improve your life, you make a power move. MCB CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined. It is affordable, with lowest mark up, flexible conditions, easy processing and above all, no hidden costs. MCB Pyara Ghar Some destinations require a long wait. Like waiting for a home of your own. But with MCB Pyara Ghar it is now easy to step into your home and start living a real life. MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you Purchase, Renovate or Construct your home the way you have always wanted. Having your own home was never so easy Easy Personal Loan MCB Easy Personal Loan provides you with the financial advantage to do things you've always wanted to but never had the sufficient funds for. Take that muchneeded holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance a better education for your children.

MCB Master Card

Since the beginning of time, people have tried to find more convenient ways to pay, from gold to paper money and cheques. Today, money is moving away from distinct hard currencies and towards universal payment products that transcend national borders, time zones, and, with the Internet, even physical space. Plastic or "virtual"

money, credit, debit, and electronic cash products, inevitably will replace cash and cheques as the money of the future.

MCB Rupee Traveler's Cheques

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

3.2. Corporate Banking

Cash Management Services
MCBs network of over 900 branches in Pakistan enables it to collect and disburse payments efficiently with its cash management services. This also enables it to offer you a choice of paper based or electronic fund transfer solutions including collection amounts, cross branch on- line transactions etc.

Working Capital Loans

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

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

Trade Finance Services

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

3.3. Online Services

MCB ATM Services

With a solid foundation of over 50 years in Pakistan, with more than 750 automated branches, 269 online branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM switch, MCB is positioned at the forefront of the banking industry in Pakistan. This success has been possible because of a never-ending drive to achieve higher levels of excellence, constantly striving to raise the level of performance.

MCB 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 Call Center

Keeping up with banking services can be tedious but not with MCB Bank, where phone service is at your fingertips. Just dial our Call Centre from the comfort of your home or office or wherever you happen to be. It offers basic banking services for your convenience, eliminating the need for you to make unwanted trips to your branch.

MCB Smart 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 Debit Card

Now MCB brings a secure, convenient and quick payment facility that enables you to do purchasing by using your existing MCB ATM / MCB Smart Card as a DEBIT CARD.

3.4.

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. MCBs Virtual Internet Banking facility is simple and secure. And its 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. 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.

3.5. Islamic Banking

Deposit Schemes
For customers who are looking for a deposit opportunity where they can purse their funds and reap halal returns on it, we offer the following products:

Al-Makhraj Saving Account Al-Makhraj Ianat Account Al-Makhraj Term Deposit

Fund Based Facilities

Ijarah Products MCBs 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 after the Ijarah has matured. Under this scheme, MCB will be the owner of the asset, and the customer (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 the asset to the customer (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. Types of Ijarah o Car Ijarah o Equipment Ijarah

4. MCBs Competitive Strategies

To be competitive the Bank has further reinforced its position in the Consumer Banking arena by streamlining and re-launching the consumer financing products and introducing more convenience based solutions. With the re-launch of auto finance and house finance products, the Bank pushed the products with full thrust. The Bank has also launched a running finance facility against mortgage of property. Technology continued to play an important role in improving and expanding product offerings. The Bank introduced more IT based products to cater to the changing lifestyles and needs of the customers. MCB Virtual-Internet Banking was launched with wide ranging banking solutions for the customers ranging from individual to corporate customers and it has become the most preferred Internet banking solution in the country. MCB also had the privilege of being the first Bank in Pakistan to launch the comprehensive bill payment facility through its alternate delivery channels which include Internet Banking, ATMs and MCB Call Centre, currently with six payment partners. Similarly, the Bank also took initiatives to increase the usage of debit facility. To provide

timely and updated information, MCB has also provided a new look to its website which is user friendly and considerably easy to browse. The Islamic Banking initiative has been very successful in attracting new customer, both individuals and companies. Similarly, those relationships, which were confined only to current account facility, have grown into stronger business relationships. The branch network was expanded to Lahore and Multan during the last year and recently been extended to Hyderabad and Faisalabad. The Bank plans to further expand its Islamic Banking branch network to other metropolitan areas and also to introduce new sharia compliant banking solutions to a wider range of customers for satisfying their individual and business needs. Some wide-ranging new strategic initiatives were also taken up which will be important for the Bank in years to come. A private company has been formed in Hong Kong (fully owned subsidiary of MCB) in partnership with Standard Chartered Bank, handling trade transactions of select countries in the Asia-Pacific region. It is projected to earn US$ 1 million in its first year of operations. To increase its international presence, the Bank will be opening its representative office in Dubai and entering into major strategic alliances with banks in the UAE/ especially for marketing our consumer banking products to nonresident Pakistanis. Furthermore, feasibility is also being carried out for entering other international markets. MCB's operations continued to be streamlined with focus on rationalization of expenses, re-alignment of back-end processing to increase productivity, enhancement of customer service standards, process efficiency and controls. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency, expertise and reduce delivery cost. Management of Human Resources has been one of our core focus areas. MCB is committed towards attracting, retaining and motivating outstanding people. Challenge for MCB is to provide an environment in which employees can better realize their potential. The Bank introduced 'reward for performance' where high potential officers were identified and rewarded accordingly. In view of the competitive environment, the Bank is focusing on performance and introducing a more robust performance management system. MCB is also strongly committed to training its staff at all levels. The Bank will also be implementing the full suite of the latest version of SYMBOLS Version 8. MCB Bank will run SYMBOLS eFinance modules to deliver personalized services to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will serve as its core banking transaction-processing engine. By implementing SYMBOLS, MCB Bank aims to raise the level of its customer service and its time to market in new product offerings for its three core banking businesses in Corporate, Commercial and Consumer Banking - retaining its market leadership as Pakistan's progressive Bank.

Learning As A Student
1. Duties & Accomplishments
During my internship in MCB I worked in Remittances, Advances, Foreign Exchange and Customer Service Office department and I successfully completed all the task/duties that were assigned to me. The duties that I performed and the thing I learned each day are given as follows: July 15, 2005 Learned basic operations of remittance department Learned how to make entries and vouchers for Incoming TT(Telegraphic Transfer) Made vouchers and entries for Incoming TT Observed other operations e.g. PO (Pay Order), DD (Demand Draft) July 16, 2005 Learned bank charges for PO, DD, TT & MT (Mail Transfer) Learned how to make entries and vouchers for Outgoing TT(Telegraphic Transfer) Made few Outgoing TT Learned & Made Inter-Branch Credit Advices against the checks received from outer city branches July 18, 2005 Learned about the payment against PO & DD received from other branches (usually the first activity in the remittance dept.) Learned how to issue a PO

Made entries against the TT and MT in the Day Book Made Incoming and Outgoing TT Made Inter-Branch Credit Advices against the checks July 19, 2005 Made Debit vouchers against the TT, PO & DD charges Made Credit vouchers (contra) against the TT, PO & DD charges Made Incoming and Outgoing TT Made Inter-Branch Credit Advices against the checks Made entries in the Day Book July 20, 2005 Learned Incoming & Outgoing TT Entries in the Daily Voucher Record Sheet Learned how to make DD and PO Made Debit vouchers against the TT, PO & DD charges Made Credit vouchers (contra) against the TT, PO & DD charges Made Incoming and Outgoing TT July 21, 2005 Learned basics of Remittance Software System Made DD and PO entries in the Daily Voucher Record Sheet Made Inter-Branch Credit Advices entries in the Daily Voucher Record Sheet Made Incoming and Outgoing TT Made Inter-Branch Credit Advices against the checks

Made entries in the Day Book July 22, 2005 Learned about different Stamps on the PO Learned and made entries and vouchers against Incoming MT Made Incoming and Outgoing TT Made Inter-Branch Credit Advices against the checks Made entries in the Day Book July 25, 2005 Learned and recorded the entries against Incoming MT Made Incoming and Outgoing TT Made Inter-Branch Credit Advices against the checks Made entries in the Day Book Issued Credit Advices against DD July 26, 2005 Learned PO and DD issuance in detail Made the entries against Intercity Received Checks Made Incoming and Outgoing TT Made Inter-Branch Credit Advices against the checks July 27, 2005 Got more information about Remittance Software System Learned how to make cancellation entries in the Remittance Software System in case of any discrepancy Made Debit vouchers against the TT, PO & DD charges

Made Incoming and Outgoing TT Made Inter-Branch Credit Advices against the checks July 28, 2005 Learned how to cancel a DD Made Incoming and Outgoing TT Made vouchers for incoming MT Made Inter-Branch Credit Advices against the checks Issued Credit Advices against DD July 29, 2005 Learned how to make entries against the incoming TT for which the beneficiarys account in some other bank Made Incoming and Outgoing TT Made Inter-Branch Credit Advices against the checks Made entries in the Day Book July 30, 2005 Was moved to Credits, got basic information about different operations of Credits department Learned about Running Finance against the Saving Certificates also called Instant Finance Studied few pages of Credit Manual Studied a Instant Finance Case Learned about the entries against Monthly Installment for Car Financing Made Daily Voucher Sheet August 1, 2005

Learned basic types of financing Read Running Finance in detail from manual Studied a Running Finance Case Made Vouchers Made Daily Voucher Sheet August 2, 2005 Learned about the different documents required for Credit Investigation Learned about the documents required for Running Finance Learned the Concepts of Demand and Cash Finance Made Vouchers Made Daily Voucher Sheet August 3, 2005 Studied Export Refinancing from Manual Made voucher for partial Adjustment of CF (Cash Finance) Filled Credit Proposal cum Sanction Advice MCB Instant Financing, BBFS (Borrower Basic Fact Sheet) and Application for Finance for renewal of 3 cases of CF. Made Lease Statement Made Daily Voucher Sheet August 4, 2005 Studied Documentation/Collateral Guidelines Made Disbursement Status-Leasing Statement Made CF Vouchers

Made Voucher Sheet Made entries for monthly mark up against RF (Running Finance) August 5, 2005 Studied other types of Export Financing e.g. FAFB (Finance Against Foreign Bills), FBP (Foreign Bills Purchased) Studied Sanction Advice & Approval for Financing Made Voucher and Voucher Sheet Studied a Credit Report August 8, 2005 Learned General Documentation for financing Learned about FIM(Finance against Imported Merchandise) Made Daily Voucher Sheet August 9, 2005 Learned documentation requirement for each type of financing Made Vouchers Made Daily Voucher Sheet August 10, 2005 Made monthly entry in the Mark-up Recovery Register Made Letter to Auditor Made Vouchers Made Daily Voucher Sheet August 11, 2005

Learned about L/C documents Learned basics of Foreign Exchange operations Made Voucher Sheet August 12, 2005 Learned about different L/C related terms and definitions Learned about Payment against Foreign Currency Checks Learned about Foreign Inward Telegraphic Transfer Made Voucher Sheet August 13, 2005 Made vouchers for Foreign Currency Cash withdrawal Made vouchers for FITT(Foreign Inward Telegraphic Transfer) Made Voucher Sheet August 15, 2005 Learned about bank charges against L/C Learned diff. types of SWIFT messages Made Vouchers Made Daily Voucher Sheet August 16, 2005 Worked as CSO(Customer Service Officer) because CSO was on leave and performed the following activities: o Attended phone calls o Attended customer inquiries o Received ATM forms

o Received and entered daily DAK o Issued ATM cards o Issued balance Certificates and Bank Statements o Made charges vouchers for TT/DD/PO August 17, 2005 Studied few chapters of Foreign Exchange Manual Learned about diff. types of L/Cs Learned about diff. parties involved in L/C Learned about Payment modes for L/C Made Vouchers Made Daily Voucher Sheet August 19, 2005 Worked on the seat of A/C Opening/Check Collection/Lockers because the Madam on this seat was on leave, so learned and performed the following activities: o Opened three accounts o Issued check books o Received Check Book Issuance Requisition August 20, 2005 Opened new accounts Issued check books Received Check Book Issuance Requisition Made CCs(Check Collection) Made Vouchers

August 22, 2005 Opened new accounts Issued check books Received Check Book Issuance Requisition Made CCs Made Vouchers August 23, 2005 Worked as CSO(Customer Service Officer) August 24, 2005 Opened new accounts Issued check books Received Check Book Issuance Requisition Made CCs August 25, 2005 Opened new accounts Issued check books Received Check Book Issuance Requisition Made Vouchers August 26, 2005 Sorted Foreign Currency Signature Verification Cards Opened new accounts Issued check books Received Check Book Issuance Requisition

Made CCs(Check Collection) Made Electricity Bills Vouchers August 27, 2005 Opened new accounts Issued check books Received Check Book Issuance Requisition Made CCs(Check Collection) Made SUI GAS Bills Vouchers Made Telephone Bills Vouchers Made Electricity Bills Vouchers

Recommendations: The bank must take necessary steps to ease their customers like the better environment according to their wants and needs. Customer problems should also be undertaken like the too much time taking for the payment of the cheque.

The following activities have been done during the time period of internship. The activities given below are on the weekly basis. Mainlyduring the internship I worked in all the departments and learned theworking and procedures that are necessary for the processes. First week: (06 July 2009 to 11 July 2009) Observed basic business process Observed movement of customers and Employees inside theBranch Learned basics of Account Opening Opened Accounts of GOVT employed persons Opened PLS saving Accounts

Opened BBA accounts Opened Student account Worked as CSO(Customer Service Officer) because CSO was onleave and performed the following activities: o Attended phone calls o Attended customer inquiries o Received ATM forms o Received and entered daily DAK o Filled cheaque book requisition slipsIn first week I observed the basic business process. At the end of eachday I totaled the electricity, water, telephone and check amounts.Mostly the total was correct. But sometimes when the total does notmatch with the sheet of the PRINTING I had to do it two or even three times.

Executive Summary:
MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion and total assets over Rs.500 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. MCB bank is doing the day and night struggle to achieve its purposes. It tries to control its expenses and increase its efficiency and effectiveness. It is introducing the innovative concept of centralized foreign trade services to branches with a view to improve efficiency, expertise and reduce delivery cost.

During my internship at MCB, I worked in remittance, advances, cash, deposits, customer service office department and I successfully completed all the tasks/duties that were assigned to me. I also performed different functions in all departments as a whole Conclusions:
The MCB bank made substation progress, recording strong growth in revenues and earnings. The main motive is strengthened human resources. Including changes at the senior management level, enhanced product portfolios, improved control and attentive credit risk management. The main focus is the MCB customers to provide them with satisfaction and serving with loyalty.

Banks provide security and convenience for managing your money and sometimes allow you to make money by earning interest. Convenience and fees are two of the most important things to consider when choosing a bank. Writing and depositing checks are perhaps the most fundamental ways to move money in and out of a checking account, but advancements in technology have added ATM and debit card transactions and ACH transfers to the mix. All banks have rules about how long it takes to access your deposits, how many debit card transactions you're allowed in a day, and how much cash you can withdraw from an ATM. Access to the balance in your checking account can also be limited by businesses that place holds on your funds. Debit cards provide easy access to the cash in your account, but can cause you to rack up fees if you're not careful. While debit cards encourage more responsible spending than credit cards, they do not offer the same protection or perks to consumers. Regularly balancing your checkbook or developing another method to stay on top of your account balance is essential to successfully managing your checking account and avoiding fees and bounced checks. If you have more money than you need to manage your day-to-day expenses, banks offer a variety of options for saving, including money market accounts, CDs, high-interest online savings accounts and basic savings accounts. To protect your money from electronic theft, identity theft, and other forms of fraud, it's important to implement basic precautions such as shredding account statements, having complex passwords and only doing online banking through secure internet connections.

This expected to help the MCB bank in providing customer centric solution in a more group generated healthy deposit and strengthened its SME lending. 1. Training can be provided with job rotations so each of the employees is capable of doing others work in case of emergency, this will ensure no delays are met. 2. As MCB earning a lot of profit stock options should be given to every employee. 3. Workers need more computer training. 4. MCB needs to invest more in technology and bring all banking procedures up-to-date. 5. They should implement advance technology and make it one window shopping or one window service where each teller is capable of handling every transaction for example payments, deposits, transfers, bill payments, foreign exchange, ATM card issue and opening of new account. This will make MCB more proficient in customer service. 6. ATM network needs to be updated more to handle transfers, deposits, bill payments and print statements. This will free up a lot staff time.

Refrencces & Annexures 1. News Letters 2. Magazines of MCB 3. Annual Report of MCB 2008 4. Website: www.mcb.com.pk 5. Review of President of MCB 2004 Page No: 08 to 12 6. Personal interview with Nazeer Ahmed Shaikh (Branch Manager) 7. Personal interview with Aamir Ali Mangi (Operation Manager)

Threats Following are the threats for MCB, Change in government policies has affected the banking business. Still banks have to wait to get permission of state bank. The freezing of foreign currency accounts is a vital example of letting people not to trust on banks. The Competition has become severe by the entrants of so many banks, So to exist one will have to prove himself in its services through excellent management and will have to satisfy its shareholders. Otherwise he will be out the market. The decrease purchasing power of consumer in the current economic situation of the country affecting the business activity speed too much and the result is the low investment from the investors in new projects can create problem for the bank because it is working a lot in trade.

Recommendations: MCB is performing well. Its deposits are growing day by day and so its profitability; following are my observation and suggestion to improve the efficiency for the development of the bank Most of the bank employees, are sticking to one seat only with the result that they become master of one particular job and lose their grip on other banking operation.

In my opinion all the employees should have regular job experience all out-look towards banking. The promotion policy should be adjusted. Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. Some more reading material should be provided. The purpose should be to educate the employees with the advance studies in their field. The employee should be provided the opportunities to attend and participate in seminars and lectures on banking. System should be designed that every employee who has some problems with his officers can communicate it to the higher management and some steps must be taken to improve that. Recruitments should be strictly on merit basis and induction should be after proper and extensive training.

THREATS f or MCB FOLLWING ARE THE MAIN THREATS: Increasing number of f oreign banks in countr y Privati zation of domestic banks has increased the competition. Specialized ser vices provided by the other banks. Inconsistency in Government policies in business and economic sector. Growing technology has made it essential to keep the pace with it. MCB though is quite slow in keeping up the pace as compared to the forei gn Banks. Growing usage of internet and mobile banki ng, and MCB is still not up to the mar k. Strict regulations of government over credit facility. RECOMMENDATIONS

From the previous analysis it can be observed that MCB is performing well. Its deposits are growing day by day and so its profitability. 1) STAFF STRENGTH First thing I observed is the staff strength which is very low as compared to load of work. More employees should be hired to decrease the load of work and to give some relief to old workers. Staff strength varies in different areas. Areas which are less likely to be visited by any Board of Director have not enough staff to meet the requirement of the customers to the specific area. 2) AVOID WORKING EXTRA HOURS Working hours per day during office timing are from 9 Oclock to 5 Oclock, but I observed that bank staff has to work till 7 Oclock or 8 Oclock. According to my point of view there a re two solutions for this pro blem. Either new staff should be hired to reduce the work load or employees should be given benefits for the extra hours they work. Or they can also distribute work in to two shifts. 3) TRAINING OF STAFF Training of staff sho uld be according to modern technique on regular basis to equip them with the new and advance technolo gy. Recently MCB have switched its older system to MIBS witho ut giving proper training first. I suggest all employees should get trained first. As a result, branches faced Chaos and customers were quite irritated. 4) REVISION OF PAY STRUCTURE Pension at MCB has been abolished and em ployees feel insecure and uncertainty is prevailing in the atmosphere, especially for those employees who hav e been in MCB for long. Pension system should be revived. 5) NON ROTATION OF STAFF

Most of the bank em ployees, are sticking to one seat only with the result that they become master of one particular job and loose their grip o n other banking operation. In my opinion all the employees should have regular jo b experience all out -look towards banking. The promotion policy should be adjusted. 6) EASY COMMUNICATION TO HIGHER M ANAGEMENT As such system should be designed that every employee who has some problems with his officers can communicate it to the higher management and some steps must be taken to improve that. A regular HR staff meeting with banking staff individually will help staff to communicate their grievances to the HR, and it will boost the employees moral and bank reputation.

7) INCREASE IN FOREIGN BRANCHES More foreign branches should be o pened in order to capture the international market. MCB is stuck with local clientele; it should also give importance to the international market, as many multinational ar e operating in Pakistan. 8) UPGRADING CUSTOMER SERVICES Proper attention should be given to upgrade customer services. 9) ADOPTION OF GLOBAL BANKING STRUCTURE Bank sho uld adopt the global organizational banking structure to meet the international standards of banking sector. 10) ATTENTION TO SOCIAL ISSUES Bank need to organize seminars on social issues and informal social activities to create an image of socially responsible institution. 11) FOREIGN TRAINING OF EMPLOYEES

Employees should be sent abroad for training in advance technology and acquiring more knowledge to meet international standards of Banking. 12) REFRESHER COURSES Refresher courses for the staff are most i mportant in any international organi zation. All the employees should have these courses according to t h eir requirement on regularl y basis in order to know the future trend & development. Foreign experts can also be called for this purpose. 13) PROPER GUIDENCE Bank should adopt such an Induction plan that when a customer opens his account with the bank, he sho uld be supplied with a booklet, which enables hi m to know the procedure of filling the cheque, pay -in-slip etc. It will save a lot of time of the bank staff afterward during the conduct of the account of that customer . A further step can also be taken to e ducate the people & customers by arranging seminars on specific areas, which are helpf ul in promoting healthy banking habits