Internship Report

Posted by: ScribdUMT on: March 2, 2012

In: Finance | Uncategorized
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ACKNOWLEDGEMENT

All praise to Allah, the Beneficent, the merciful, and respect for His Prophet “Peace Be upon Him” who made us recognize our creator.

I am also thankful to the Employees of MCB who provided me a friendly and knowledgeable environment through which I learned a lot

DEDICATION

.My all internship work is dedicated to following employees of MCB Manawala branch Dist;Nankana Sahib

Muhmmadsajid (Operation Manager)
Sufi Imran (Supervisor)
NailaAslam and HiraUsman (General banking advisor)
RameezAkhtar Malik (Personal banking advisor)
SaheenShaikh (Customer Service Officer)

They are too much supportive and teach me how to learn a practical life. They always give me different tasks which bring more knowledge to me and guide me how to accomplish these tasks.

INTERNSHIP LETTER

PREFACE

Prerequisite of MBA (study is to undergo internship. I got the opportunity to join the MCB manawala branch for the said purpose for a period of 6-8 weeks. Practical involvement was a great experience as interactions both with the experienced executives and clients cemented the base of knowledge I have been acquiring in the classroom. This internship report includes the material about MCB and different departments along with their working procedure. For the completion of this project I met the various prsons of these organizations. As far as my knowledge and hard work is concerned this report will provide a good in sight of MCB.

It is the requirement of the M.com University of management and technology lahore, which all students of M.com have to spend 6 or 8 weeks in any organization to get practical exposure and to get familiarized with the ways to live in the organizational environment which is dramatically different from the educational environment. That 8 weeks period called “Internship Period “, if spent properly and sincerely, enables the students to be more confident, more knowledgeable, more responsible and, above all, more committed to its work in the practical field.

In preparing this report, I have put all of my best efforts and tried my level best to give maximum knowledge. Despite of my all the coherent efforts, I do believe that there will always be a room for improvement in the efforts of learner like me.

OVERVIEW

History of Banking in Pakistan

At the time of independence, there were 631 offices of scheduled banks in Pakistan, of which 487 were located in West Pakistan alone. As a new country without resources it was very difficult for Pakistan to run its own banking system immediately. Therefore, the expert committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30^th September 1948, so that problems of time and demand liability, coinage currencies, exchange etc. are settled between India and Pakistan. The non-Muslims started transferring their funds and accounts to India. By the end of June 1948 the number of officers of scheduled banks in Pakistan declined from 631 to 225. There were 19 foreign banks with the status of small branch offices that were engaged solely in export of crop from Pakistan, while there were only two Pakistani institutions, Habib Bank of Pakistan and the Australasia Bank. The customers of the bank are not satisfied with the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the Governor-general of Pakistan Quaid-I-Azam inaugurated the State Bank of Pakistan on July 1, 1948. Thus a landmark was made in the history of banking when the state bank of Pakistan assumed full control of banking and currency in Pakistan. The banking structure in Pakistan comprises of the following types,

State bank of Pakistan
Commercial bank of Pakistan
Saving banks
Co-operative bank
Specialized credit institution

Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all over the country and in some foreign countries through a network of branches. All these commercial banks were nationalized in January 1, 1974, and were recognized and merged into the following five banks,

National bank of Pakistan
Muslim commercial bank limited
Habib bank limited
United bank limited
Allied bank of Pakistan

The state bank of Pakistan is the Central bank of the country and was established on July 1, 1948.The separation of East Pakistan and its repercussion in the form of economic depression has caused a lot of difficulties to the banking system in Pakistan. The network of bank branches now covers a very large segment of national economy. The numbers of branches have increased appreciably and there is now on branch of bank for every 3000 heads of population approximately. There is done reasonable growth in deposits from the establishment of Pakistan. Besides this growth, specialized credit and financial institutions have also developed over the years.

The Government of Pakistan in the late 90’s introducing the need for the privatization of state owned banks and companies. The private sector has accepted the challenge and most of the banks are privatized today. The State Bank of Pakistan issues the shares of these periodically. Bank employees and other common peoples can also purchase these shares and earn profit.

MCB Background

MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947. MCB is not an overnight success story rather good track of services are responsible for the leaps and bounds progress. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka from where it commenced business in August 1948. In 1956, the Bank transferred its registered office to Karachi, where the Head Office is presently located. Thus, the bank inherits a 64 years legacy of trust in its customers and the citizens of Pakistan. Muslim Commercial Bank (MCB) unfolds 64 years of growth. MCB is not an overnight success story. The bank started corporate life in Calcutta on July 9, 1947. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka from where it commenced business in August 1948. In 1956, the Bank transferred its registered office to Karachi, where the Head Office is presently located. Thus, the bank inherits a 52-year legacy of trust in its customers and the citizens of Pakistan.

NATIONALIZATION

In January 1974, the Government of Pakistan nationalized MCB following the banks (Nationalization) Act 1947, Premier Bank Limited merged with MCB.

CHANGE OF OWNERSHIP

The performance of MCB was badly affected by bureaucrat government. In January 1974, MCB was nationalized by Bhutto Government following the bank act 1974 subsequently in June 1974 Premier Bank Limited merged with MCB.

PRIVATIZATION

In the late 1990 after long period of time newly established Democratic Government of Pakistan have decided to sell nationalized assets of country for better utilization. In April 1991, MCB became Pakistan’s first privatized bank. The government of Pakistan transferred the management of the Bank to National Group, a group of leading industrialists of the country by selling 26% shares of the bank. In terms of agreement between the Government of Pakistan and the National Group, the group, making their holding 50% has purchased additional 24% shares. Now, 25% is purchased by the Government, which shall be sold in the near future. A wave of economic reforms swept Pakistan in the late 1990, introducing the need for privatization of state owned banks companies. In April 1991, MCB became Pakistan’s first privatized bank. The government of Pakistan transferred the management of the Bank to National Group, a group of leading industrialists of the country by selling 26% shares of the bank. In terms of agreement between the Government of Pakistan and the National Group, the group, making their holding 50% has purchased additional 24% shares. Now, 25% is purchased by the Government, which shall be sold in the near future.

NEW MILLENNIUM

MCB besides being money financial organization have rendered invaluable services in the economics and social developments of our country. MCB today, represents a bank that has grown with time, experience and Pakistan. A major financial institution, in scope and size, it symbolizes a fully-grown tree. Evergreen, Strong, and firmly rooted.

MCB TODAY

MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan, was incorporated on July 9 in 1947. The bank has journeyed remarkable tenure of more than half a century of competitively edged and well positioned heights of success by deploying quality banking, heads on technological developments, professionally leading management and prudent and ethical work methodologies. MCB was nationalized along with other private banks in 1974 as part of Government of Pakistan’s economic reform movement and was later privatized to Nishat Group lead consortium in 1991.Since privatization, MCB’s growth has been phenomenal. Today, MCB in one of the largest foreign banks in Sri Lanka, the first bank in Pakistan to launch Global Depository Receipts (GDR) in 2006, has strategic foreign partnership with Maybank of Malaysia which holds 20% shares in MCB through its wholly owned subsidiary Mayban International Trust (Labuan) Berhad since 2008, has international indirect regional presence in Dubai (UAE), Bahrain, Azerbaijan, Hong Kong and Sri Lanka and serving through a domestic network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million approximately.

MCB is reputed as one of the soundest financial institution and as one of the leading banks in Pakistan with a deposit base of PKR. 462 billion approximately and total assets of PKR 605 billion approximately. The bank is versed as one of the oldest and most responsible banks in Pakistan and has played pivotal role in representing the country on global platforms while being one of the few institutions that are recognized and traded in the international market.The bank has also been acknowledged though prestigious recognition and awards by Euro money, MMT, Asia Money, SAFA (SAARC), The Asset and The Asian Banker.

MCB MISSION AND VISION STATEMENTS:

MISSION STATEMENT

To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.

VISION STATEMENT

We are team of committed professionals, providing innovative and efficient financial solution to create and nurture long term relationship with our customer. In doing so, we ensure that our shareholders can invest with confidence in us.

MCB CORE VALUES:

INTEGRITY

We are the trustee of public fund and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitment to our customer as well as our colleague.

RESPECT

We respect our customer values, belief, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. MCB bank creates an environment where each individual is enabling to succeed.

EXCELLENCE

We take personal responsibility for our role as leaders in the pursuit of excellence. MCB is a performance driven, result oriented organization where merit is the only criterion for reward.

CUSTOMER CENTRICITY

Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solutions.

INNOVATION

We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.

PROMINENT FEATURES OF MCB:

SBP allowed exporters obtain foreign currency loans against firm contracts L/Cs and MCB made arrangements for clients to use the facility at EPZ branch, Karachi and off-Shore Banking Unit, Bahrain for the purpose. It also offered services to clients for procuring foreign currency loans from abroad. The other significant development is the launching of the MCB Imdad-e-Bahami Scheme for “Housing Improvement” in addition to commercial lending; MCB has accepted the responsibility to offer social lending. The scheme, launched with the co-operation of the Swiss institution aims at providing easy credit to low income group is urban areas to improve their living condition.

CALENDAR OF MAJOR EVENTS:

Incorporation………………………………………………………………1947

Nationalization…………………………………………………………… 1974

Investment in first women bank……………………………………….. 1989

Privatization………………………………………………………………. 1991

Incorporation of MCB financial services limited………………………1992

Investment in Adamjee insurance company limited……………………….. 2004

Incorporation of asset management company limited……………………… 2005

Change of name from Muslim commercial bank limited…………………….2005

Strategic acquisition by Maybank…………………………………………… 2008

MCB AWARDS AND ACCOLADES:

Best bank award 2008
Best bank award 2006
Best bank award 2005
Best domestic commercial bank award 2005
Best bank award 2004
Best domestic commercial bank award 2004
Best bank award 2003
Best bank award 2001
Best domestic bank award 2000

BOARD OF DIRECTORS:

Mian Muhammad Mansha………………… Chairman
S.M.Muneer………………………………… Vice chairman
Tariq rafi……………………………………. Director
Muhammad arshad………………………… Director
Shahzadsaleem……………………………. Director
Sarmadamin……………………………….. Director
Mianumermansha ……………………….. Director
Aftabahmad khan…………………………. Director
Atifyaseen…………………………………. Director

MANAGEMENT COMMITTEE:

Ali munir………………………………… Strategic planning and investment
Agha saeed khan……………………….. Operation
Azfaralamnomani…………………….. Compliance
Salman zafar……………………………. Chief financial officer
Ahmad kareem………………………….. Human resources
Muhammad ramzan…………………….. Treasury head
Ali kazmi………………………………… Consumer banking

AUDIT COMMITTEE:

Tariq rafi………………………………….. Chairman
Muhammad yaqub……………………… Member
Dato Muhammad hussain…………….. Member
Sahzadsaleem………………………….. Member

CHIEF FINANCIAL OFFICER:

Salman zafarsiddique

PRINCIPAL OFFICE:

MCB 15 main gulberg Lahore

REGISTERED OFFICE:

MCB building F-6/ G 6, Jinnah avenue Islamabad

REGISTRAR AND SHARE REGISTRATION OFFICE:

Modern motors house Beaumont road, Karachi.

President

Executive director

INT DIV

Inspection team

Operation

GSD

Consumer banking group

Corporate banking group

HRD

General Manager

Regional manager

Chief Manager

Manager

CHAIN OF COMMAND

CHAIRMAN

Departments Of Bank:

ACCOUNT OPENING DEPARTMENT

Account opening documentation is primary contractual relationship between the bank and customers. There are many types of account like saving account, current account, fix term deposit, Basic Banking account, call deposits, profit & loss account, partnership account, joint account, business account etc.

Mostly person wants to open a savings account or fix term deposits or any other. He has to perform some important formalities. People save their amounts in banks to get some profits for their future and to save the money for their future use. Banks earn profits and interests from these accounts. Minimum amount required for the opening an account is 1000 to 5000 depending on account nature and some legal documents are necessary for opening an account.

Any recent bill copy
CNIC’s copy
Father’s CNIC’s copy
Employee certificate.

Depending on the account nature they required some more documents. And the zakat and taxes apply to accounts. After opening an account the cheque books or ATM’s issued to the customers so that they can make their transactions easily or whenever required. ATM provides many facilities to their customers.

CREDIT DEPARTMENT

This is also a very important department in the bank that plays very vital role and it is the main factor for running a banking business. Because banks give loans from the people’s savings to other persons and they pay some interest on that loan amount that becomes bank’s income. Simply when a local customer comes to the bank he has the direct dealings with the credit manager. Bank offered different type of loans depending on the customer’s security. Customer has to give some security to the bank for the sake of money. Then banks reserve the papers of customer’s security and give him a loan for any specific period. Credit manager take the all necessary information from the customer and give him loan with the approval on some simple terms and conditions.

And in circle office there was also credit analyst who keeps the records and information of all the customers who get loan from banks in files and update their profiles weekly or monthly. There was also an officer who deals with the people who come from different branches with their applications of loans and with those people who are not paying their installments on time and try to convince them to follow the bank’s policy regarding loans.

REMITTANCE DEPARTMENT

The remittance department deals with the transfer of money from one place to another. This department deals with the local and international currency transfer and also E-remittance through western union. MCB provides this facility to its customers. The main function of remittance department is the transfer of funds and the transfer may demand draft, pay orders, mail transfer etc depends on the customer’s demand. There are many types of remittance

Inward remittance
Outward remittance
Inland remittance
Foreign remittance

CASH DEPARTMENT

Cash department is usually to collect and deliver cash. When a customer comes to the bank and wants to issue or deposit amount comes to the cash counter to give or receives amount. So it is the cash officer’s duty to deposit or withdraw the amount after verification of signature or account number of the customer. Cash officer checks the balance and then pay the amount to the customer. The banker make journal and ledger to enter notify the customer account all the entry is done in the system, and take print of those entry to keep record, and check all the entry are recording right head of account. So all the cash dealings occurred in the banks are over to cash officer and the cash officer is responsible for all the deposits or withdrawals.

CLEARING DEPARTMENT

Clearing department work with provision used for settlements of proceeds of cheque among different through the medium of a clearing house. Cheque are categorized in two kinds same day cheque and normal cheque. Cheque amount more than 5 lacks is same day clearing cheque. And for the same day clearing few charges are charged. All the cheque which drawn from the local branches of other banks are collected through clearing system.

There are two types of clearing:

Inward clearing
Outward clearing

Every banker acts both as a paying as well as a collecting banker, it is however an important function of crossed cheque. A large part of this work is carried out through the bankers clearing house. A clearing house is a place where representative of all banks of the city get together and settle the receipts and payments of cheques drawn on each other. As the collecting banker runs certain risks in receipt of their ownership the law has provided certain protections to the banks.

PRODUCTS FEATURES AND ELIGIBILITY CRITERIA

CURRENT ACCOUNTS:

BASIC BANKING ACCOUNT

Initial balance requirement for this account is Rs.1000.
Minimum balance requirement for this account is nil.
Profit cannot be calculated on this account.
Each month the account holder will be allowed 2 deposit transactions and 2 withdrawal transactions through cash and clearing
Transaction over and above the limit will be charged @ 35 per transaction
Unlimited withdrawals through ATM.

CURRENT ACCOUNT

Initial balance requirement for this account is Rs.1000.
Minimum balance requirement for this account is Rs.10000.
Profit cannot be calculated on this account.
Rs.50 per month on minimum monthly average balance of Rs.10000 or below the current deposit account.

CURRENT LIFE ACCOUNT

Initial balance requirement is Rs.1000 for this account.
Minimum balance requirement is Rs.25000 for this account.
It offer free comprehensive life insurance coverage.
The minimum balance requirement will be Rs.25000 below which service charges of Rs.50 will be applied.

BUSINESS ACCOUNT

Initial balance requirement is Rs.50000 for this account.
Minimum balance requirement for this account is Rs.50000.

SAVING ACCOUNTS:

SAVING ACCOUNT

Initial balance requirement is Rs.1000 for this account.
Minimum balance requirement for this account is Rs.10000.
Profit calculates on monthly basis but paid into your account after every six month.
Minimum rate is 5% per anum.
Rs.50 per month on minimum monthly average balance of Rs.10000 or below the saving account.

SAVING 365 GOLD

Initial balance requirement for this account is Rs.500000.
Minimum balance requirement for this account is Rs.500000.
Profit calculated on daily basis
Profit paid into your account on monthly basis
The higher your balance, the higher your rates
Minimum applicable rate is 5%per anum
Rs.50 per month, if monthly average balance falls below

SAVING EXTRA

Initial balance requirement for this account is Rs.100000.
Minimum balance requirement for this account is Rs.100000.
Profit calculates on monthly basis and paid into your account after every month.
Minimum profit rate is 5% and maximum profit rate is 8.5%.
Rs 50 per month, if monthly average balance falls below.
Customer will have up to 3 free over the counter cash withdrawals.
From 4^th transaction onward Rs.25 will be charge for each transaction.
There will be no restriction on cash withdrawals through ATM.

SMART DOLLAR ACCOUNT

Initial balance requirement for this account is $ 10000.
Minimum balance requirement for this account is $ 10000.
Profit paid into your account on semiannually basis.
If deposit in the saving account falls below $ 10000 then the profit would paid at 0.75% per anum, whereas no interest would be paid if the deposit falls below $ 1000.

RATES

$10000 to less than $ 25000

$ 25000 to less than $50000

$ 50000 to less than $ 100000

Above $ 100000

1.5%

1.75%

2.0%

2.25%

KHUSHALI BACHAT ACCOUNT

Initial balance requirement for this account is Rs.1000.
Minimum balance requirement for this account is Rs.10000.
Profit can be calculated on monthly basis but profit paid into your account on quarterly basis.
There will be no cheque book for this account.

RATES
Up to Rs 199999	Rs 200000 to 299999	More than 300000

SAVING MAXIMIZER

MCB is pleased to announce the launch of MCB saving maximizer account, a high yielding saving account for mid-tier new to bank customers. The account will provide customer with a higher yield on saving deposits coupled with discounted instruments and access to the account through remote channels.

Following are some of the most important feature of MVB saving maximizer account,

Higher profit rate of 7% for balance of Rs.1 to 3 million
Profit can be calculated or paid both on monthly basis.
Free ATM card with higher daily withdrawals limit of Rs.50000 and point of sale swiping limit of Rs.250000
Free MCB mobile services for convince transaction and payments
Emergency withdrawals options through pay orders and account payee cheques.
MCB privilege upgrade on maintaining of Rs.2.5 million for 3 months
Initial balance requirement for this account is Rs.1 million
Minimum balance requirement for this account is Rs.1 million
There will be no cheque book use for this account.
Customer can apply for a 10 leaf account payee only cheque book
Charges for cheque book are PKR 5oo, for pay order is PKr.300.
Only one account is allowed per customer
Joint account will not be allowed for this product
Branch should ensure that at the time of account opening the customer will be given the terms and conditions for this product as well as existing terms and conditions and this sheet is duly signed by the customer.
Product can be identified as accounts have product code as MSM (MCB saving maximizer)

RATES

Up to Rs.999999

Rs 1000000 to 3000000

More than Rs.3000001

SPECIAL RUPEE TERM DEPOSIT:

Initial balance requirement is Rs.500000.
Minimum balance requirement for this account is Rs.500000.

RATES
Account type	Rs.0.5M to 1M	Rs.1M to 2.5M	Rs.2.5M to 10M	Rs.10M and above
1 month	5.50%	6.00%	7.25%	Rates and maturity to be determined by treasury on case to case basis.
3 month	6.00%	6.50%	7.75%
6 month	6.50%	7.00%	8.00%
1 year	7.00%	7.50%	9.00%

OTHER PRODUCTS

BANCASSURANCE:

Combining the best of banking and financial solutions, MCB Banc assurance provides a one-stop shop solution for you by guaranteeing convenience and security with a wide range of products available for all your financial needs. All our plans are specially designed by reputable insurance providers. These companies have excellent experience with insurance products and guarantee that your funds would be in good hands as there is a team of professional investment experts in each company working on making the funds grow higher in a secure manner. Each plan is designed to give you a peace of mind because we know that in the end, it’s not the years in your life that counts. It’s the life in your years. Banc assurance has the following features,

Flexi life is a Unit Linked Plan which is subject to investment risk.
NJI Life or MCB Ltd does not guarantee the value of Units.
The value of units may rise, fall or remain unchanged. No guarantees in respect of any Funds are given by NJI Life or MCB Ltd.
The past performance of funds is not necessarily indicative of the future performance of any of these funds.
All benefits payable under the policy are subject to applicable laws (financial or otherwise), as they exist in Pakistan from time to time.
Unit prices of NJI Life Managed Fund are published in all leading dailies.
Please refer to the policy document of this plan.

Banc assurance include the following product which are provided to the customers,

Flexi Life
Life Partner
Edu Care
Dream Wedding
Capital Sure
Retire Easy
Income ax
Future Assure
Protection Plan

LOANS:

Life in the fast lane can be really slow without a car. MCB Car 4 U makes it a breeze to finance/lease your new/used car. So get up to speed, because “Kahin Na Kahin Tau Hai…1 Car 4 You”.

Option for financing and leasing
Financing tenure from 1 year to 7 years
Option for new as well as used card
Option for local as well as for imported car.
Financing up to Rs 2500000.
Option for early payment
Option for replacement
Lower markup rate
Lower insurance rate
Minimum 20% down payment
Fast and hassle free processing of application

CARDS:

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 VISA PLATINUM

It is with great pleasure that we welcome you to experience the exciting world of MCB Visa Platinum Credit Card – a world full of surprises waiting to be explored. With our perfect combination of premier features and superior service, the enclosed rewards and recognition offer you the prestige and luxury of a lifestyle you can uniquely call your own. MCB Visa Platinum Credit Card is the most reliable, competitive and gratifying Credit Card offering a tantalizing mix of luxurious shopping, dining and traveling opportunities which will undoubtedly be a treat for you and your family. It is accepted at nearly 29 million locations in more than 150 countries around the globe and over 30,000 establishments in Pakistan. So make the most of a powerful card and expect what you deserve, a liberating experience that redefines the way you spend. Enjoy the influence of your card as you become platinum.

MCB Visa Platinum Credit Card members can avail the comfort of CIP lounges at no cost at all. Just present your MCB Visa Platinum Credit Card and relax in the CIP lounge at Karachi, Lahore and Islamabad International airports. Priority Pass lets you access more than 600 airport lounges in 300 cities & 100 countries. There are free refreshments, internet usage and many other facilities a card member can use. It provides a means to get away from the hustle and bustle of crowded airports and enjoy the privileges it has to offer. The facility can be availed irrespective of the Airline or class of travel. MCB Visa Platinum cardholders will get 5% cash back on international lodging while spending on their card. The product has the following features,

Access to over 600 airport VIP lounges in over 100 countries and over 300 cities – so you can treat yourself like a VIP no matter where you travel, or which airline and class you fly.
Peace and quiet – relax and unwind away from the chaos of the airport, and enjoy a range of complimentary refreshments.
Full business facilities – most lounges offer phone, fax, email and internet facilities, some even have conference rooms.
Excellent value for money – three membership plans designed to offer you VIP airport lounge access at competitive rates no matter how frequently you travel.

ACCOUNT OPENING

Account opening is the first step towards relationship building between a customer and the Bank. Of all the functions being performed in a branch, the opening of account is highlighted as the most important. Therefore, Branch/Operations Managers are required to involve themselves in opening of new accounts and meet with the prospective customers in order to make reasonable efforts to determine the true identity of the prospective customer.

DOCUMENTS REQUIRED FOR DIFFERENT ACCOUNTS:

The details of Account Opening Application, Specimen Signature Cards and other documents to be obtained for different types of accounts are as follows:

INDIVIDUAL ACCOUNTS

Application for Opening Account (SF-1AA).
Specimen Signature Card (SF-6).
Attested photocopy of Computerized National Identity Card (CNIC) or Passport. It is a mandatory requirement to verify the CNIC of the customer before opening the accounts, from
NADRA Online system- VERSYS
In case of a salaried person, attested copy of his/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, a passport size photograph of the new account holder besides taking left & right thumb impressions on the Account Opening Form & Specimen Signature Card
In case CNIC does not contain a photograph, Banks may allow the said customer to open the account, subject to provision of the following documents:
- A copy of the photograph duly attested by gazette officer/Nazim.
- A copy of CNIC without photograph duly attested by the same person who has attested the photograph as per above.
- A confirmation in writing to the effect that they have no other document bearing their photograph.
- Moreover, the particulars/CNIC of such persons must be confirmed from NADRA in writing or through its “VeriSys” system.

PARTNERSHIP ACCOUNT

Application for Opening Account (SF-1AA).
Specimen Signature Card (SF-6).
Attested photocopies of Computerized National Identity Card (CNIC) of all partners.
Attested copy of “Partnership Deed” or “Letter of Partnership (CF-13), in lieu of the partnership deed, if not available) duly signed by all partners of the firm.
Attested copy of Registration Certificate with Registrar of Firms. In case the partnership is unregistered, this fact should be clearly mentioned on the Account Opening Form.
Authority letter in original, in favor of the person authorized to operate on the account of the firm.

JOINT STOCK COMPANIES

Resolution of Board of Directors for opening of account specifying the person(s) authorized to operate the company account
Memorandum and Articles of Association.
Certificate of Incorporation.
Certificate of Commencement of Business.
Attested photocopies of Computerized National Identity Card (CNIC) of all the directors.

CLUBS, SOCIETIES AND ASSOCIATIONS

Certificate of Registration issued by the Registrar of Cooperative Societies/ Registration Authority.
Bye-Laws/ Memorandum and Articles of Association of the Society containing official seal of the Registration Authority.
Permission of the registration authority for opening of Account in the name of Association as required under section 37 (d) of Co-operative Societies Act, 1925.
List of members of the Managing Committee duly certified by the Registrar of Societies.
Resolution duly passed by the members of Managing Committee in their meeting regarding opening and operation of account in the name of said Society. It must be ensured that the mandate for operation of Account given in the Resolution is not in violation of the provision of Bye-Laws/ Memorandum and Articles of Association.
Attested copies of CNIC of the authorized officials/ persons.

AGENTS ACCOUNTS

Certified copy of “Power of Attorney”
Attested photocopy of Computerized National Identity Card (CNIC) of the agent.

TRUST ACCOUNTS

Attested copy of Certificate of Registration
Resolution duly passed by the Trustees regarding opening and operation of Account in the Bank in the name of said Trust Deed.
Attested copies of CNIC of all the trustees.
Certified copies of Letter of Administration/ Instrument of Trust.

MINOR ACCOUNTS

An account in the name of minor is allowed to open by his guardian, preferably jointly in the name of guardian / Minor or Minors, payable to either or survivor opener of the Account.
Title of Account is on the Minor’s Name (As per Form –B) &word “Minor” be added to the Title of Account.
In the Account Opening Application, the particulars of the Guardian will be filled out in the column of “Personal Information”.
Attested copy of Computerized National Identity Card (CNIC) of the Guardian.
Attested photocopy of Form-B of Minor.

ILLITERATE /PHOTO/ DISABLE PERSONS ACCOUNTS

Attested photocopy of Computerized National Identity Cards (CNIC).

Two Attested Photographs. (One photograph shall be pasted on the Account Opening Form and other will be pasted on Specimen Signature Card.
Left thumb impression (Right thumb impression in case of female) on the account opening application & Specimen Signature Card (SSC).

GENERAL POLICIES REGARDING ACCOUNT OPENING:

INITIAL DEPOSIT

Initial Deposit must be in Cash. Cheques may only be accepted, as part of initial deposit in case of undoubted parties and on the personal responsibility of Managers. In all such cases, the cheque when tendered if uncrossed should be crossed by the customer before being lodged for clearing / collection. Cheque Book should only be issued after the proceeds of crossed cheque are realized.

EXEMPTION OF SERVICE CHARGES

Accounts maintained by Employees of Government /Semi Government institutions for Salary, Pension & Benevolent Fund purpose including widows/children of deceased employees eligible for family pension / benevolent fund grant etc. in any manner whatsoever.
iAll Collection Accounts i.e. Non-Checking accounts from where the balances / funds as per standing instructions, are transferred to customers’ main collection account whether daily or on periodic basis.
Students
Mustahqeen of Zakat
Zakat accounts maintained for collection and disbursement of Zakat funds
MCB Employees and their spouses
All Basic Banking Accounts

ACCOUNT OPENING DOCUMENT RETENTION

Account Opening Application- SF1AA along with the relevant documents should be kept in Fire Proof Cabinets under Dual control of Operations Manager and Designated Authorized Officer in the branch.

KNOW YOUR CUSTOMER POLICY

Know Your Customer (KYC) is the vital tool used against Money Laundering. The Bank has a statutory obligation to know its customers and to understand the nature of the business that is being conducted with the Bank. Knowing your customer means:
- Evidence of identity and addresses, independently confirming the evidence at the start of a business relationship with the Bank.
- Information regarding the nature of business that the customer expects to conduct with the Bank, identify the source of income and expected pattern of transactions (Debit/Credit) Branch Manager or Designated Authorized Officer is responsible for filling out the Client Profile Form in order to gather maximum information about the prospective customer. Before entering into the relationship, Client Profile Form is required to be filled-out along with the Account Opening Application.
- Know Your Customer or Customer Due Diligence is an on-going process through which Branch Manager or Designated Authorized Officer can ensure that only legitimate transactions are routed through the customer’s account. It helps the branches to avoid opening of fictitious accounts.
- Branch Operations Managers are required to retrieve following reports on daily basis and review their debit or credit transactions or turnover:
  - High Value Transactions
  - Over the Counter Transactions
  - Income/ Salary / Turnover Exception
  - Over the Counter Cash

SOBC

JULY 2 DECEMBER 2011

REMITTANCES:

S.#	ITEMS	RATES
1	Issuance of draft Up to Rs.100000 Over Rs.100000 Issuance of duplicate draft	Rs.100 for account holder Rs.200 for non-account holder 0.1% for account holder 0.2% for non-account holder Rs.200 for account holder Rs.500 for non-account holder
2	Issuance of pay order Issuance of duplicate pay order	Rs.100 for account holder 0.2% for non-account holder (minimum charges Rs.250) Rs.150 for account holder Rs.500 for non-account holder
3	Issuance of call deposit receipt Issuance of duplicate call deposit receipt	Rs.200 Rs.500
4	Cancellation of DD/PO/CDR	Rs.150 for account holder Rs.250 for non-account holder
5	Issuance of rupee traveler cheque.	Rs.5 per piece for denomination of less than Rs.5000 No charges on issuance of higher denomination above Rs.5000
6	Cross branch transaction within city Deposits Withdrawals Fund transfer Cross branch transaction intercity Deposits Withdrawals Fund transfer	Free Free Free Rs.150 Rs.200 Rs.125

ACCOUNT MAINTENANCE/ SERVICE CHARGES:

S.#	ITEMS	RATES
1	PLS saving account	5.00% of amount
2	Khushalibachat account	5.00% of amount
3	PLS saving-365	5.00% of amount
4	Saving 365 Gold Less than 10M Rs.10M to less than 25M Rs.25M to less than 50M Rs.50M to less than 100M Rs.100M to less than 250M Rs.250M to less than 500M Rs.500M and above	5.00% of amount 6.00% of amount 6.50% of amount 7.00% of amount 7.50% of amount 8.005 of amount 8.25% of amount
5	PLS saving extra Below 5M Rs.5M to less than 10M Rs.10M to less than 15 M Rs.15M to less than 20M Rs.20M to less than 25M Rs.25M and above	5.00% of amount 6.50% of amount 7.00% of amount 7.50% of amount 7.75% of amount 8.50% of amount
6	MCB smart saving account If minimum less than 200000 If minimum balance equal to 200000 or less than 300000 If minimum balance equal to or more than 300000	5.00% of amount 7.00% of amount 5.00% of amount
7	MCB saving maximize If minimum balance less than 100000 If minimum balance equal to 100000 or less than 300000 If minimum balance equal to or more than 300000	5.00% of amount 7.00% of amount 5.00% of amount
8	MCB salary gold account	5.00% of amount
9	MCB enhance savings account (frozen)	5.00% of amount
10	Rupee maximize (frozen)	5.00% of amount

MARKETING

STRATEGY

Segmentation strategy

SEGMENTATION STRATEGY:

Marketing consist of buyers, and buyers different in one or more ways. Customer different in their need, wants, resources, locations, buying, attitude and buying practices.MCB is also using segmentation strategy by dividing the whole market into segments and search the right customer for their right product. Banks do segment demography and geographical, in demography segment banks differentiate customer by their age, gender, education. In geography area customer are separate by their area or bank find their customer by the geography segment. Through segmentation banks divide large heterogeneous markets into smaller segments that can be reached more effectively and effectively withproducts and services that match their unique product.MCB segment the customer like the customer is near to retire so the MCB offer the MCB retire easy plan for the person who are retiring from their jobs.

TARGET MARKET STRATEGY:

Target marketing means after segment the area now you has to target your customer. You have to find out the right customer for the right product. Develop measure of segment attractiveness .select target market.

MCB target all types of customer in the country. Suppose MCB has branch in the market area there are all shop around the bank so MCB is target all shopkeeper and for their better business allow them to open an current account ,single account, joint account ,business account. MCB allow the customer to open account which is suitable for him/her.

Product, Planning. Development &Management:

Product planning and development means develop a product to yours customer’s needs, wants and demand and give features what the customer wants. Every product is made by the head office of the MCB and its also promotional activities update the features and benefits about the product is all settle by marketing department of the MCB. First bank typically generate many ideas in order to find out a few good ones. Major sources of idea include customer wants and demands. When the idea generation is done then bank do idea screening.

PRODUCT MANAGEMENT:

Product management means as you can understand by the name manage the product you have to always manage your product whether it is entertaining the customer or not if not so the product should update their features to entertain the customers.MCB is providing better product to their customer and maintaining the product and also include new features to the product if needed.

POSITIONING:

Positioning is a process of fit the picture of your products, brands and organization image in the customer mind. MCB has strong image in their customer mind by their strong product, wide range ofnetwork in the Pakistan and across the country. MCB also do advertise through newspapers, broachers, television, billboard, hoarding, personal dealing .Positioning is how you want to show yourself in front of customer. Banks do advertise and try to positioning to the customer mind and also aware the customer about the product.

PRICING STRATEGY:

Price is the amount of money which is charged for a product or service or the sum of the value the consumers exchange for the benefits of having or using the product or service. Price has been the major factor affecting the buyer/consumer choice. This is also another method to help bank overall performance. Before setting price the employee must look the relationship between price and demand pricing strategy is the most important strategy because price can generate revenue of the product and price tells the worth of the product. It is so difficult process to estimate the mindof the customer that he will adapt this product with the offering pricing or not. MCB is charges different charges with the different product and services .Suppose you are availing the benefit of ATM card so you have to pay 500 per year and if u are having any locker small size so u paying 1500 to 1800 to the banks as service charges so you can see the different product service charge which is vary from product to product.

DISTRIBUTION STRATEGY:

Distribution means moves goods and services from producer to consumer. So MCB open branches all our Pakistan to entertain the customer. Just the management should select the area where should have to open a branch. Distributing is one of the marketing mix strategies.MCB has many branches in the country and also overseas.

COMPETITIVE

STRATEGY

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 upwhich 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 non-resident 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 E-Finance 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 it’s 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.

BUSINESS PROCESS

ANALYSIS

SHAREHOLDERS’ EQUITY:

(Rs in millions)

GROSS ADVANCES:

(Rs.in millions)

INVESTMENTS:

(Rs.in millions)

DEPOSITS:

(Rs.in millions)

TOTAL ASSETS:

(Rs.in millions)

STATEMENT OF FINANCIAL POSITION (2009):

(Rs.in millions)

STATEMENT OF FINANCIAL POSITION (2010):

(Rs.in millions)

PROFIT AND LOSS ACCOUNT (2009):

(Rs.in millions)

PROFIT AND LOSS ACCOUNT (2010):

(Rs.in millions)

CASH FLOWS (2009):

(Rs.in millions)

CASH FLOWS (2010):

(Rs.in millions)

MCB MANAWALA BRANCH

INTRODUCTION:

The branch is categories as a category branch as it has a preferred lounge. Clients maintain balance above PKR 1.5 million approximately in their accounts and PKR 4 to 6 million in their saving accounts are treated as preferred clients and anyone maintaining balance less than that are consumer floor clients.

Branch deal with only basic functions of the bank which are as follow,

Receive deposit
Make payment

Special clients are not charge with any of the service charges and they get all services in branch like even they can get their cheque book made in 15 minutes from the respective branch whereas all other do get charged as per schedule of charges and their cheque books are made from MCB house and then posted to the respected branch.

BRANCH TRADE AREAS

Most of the clientage consists of:

Private services. Retired individuals and housewives,

Small and medium enterprises and salaried individuals.

Branch is located at one of the elite area of Lahore. It is very obvious that people in these days’ people are not banking with the organization but they are actually banking due to their relationship manager/personal banking advisor and the services that are being provided to them are only by the particular individual.

BRANCH MANAGEMENT HIERARCHY:

BRANCH MANAGER

ShumailaChaudhary

OPERATION MANAGER

M. sajjid

PERSONAL BANKERS

Rameezmalik

Shaheen Sheikh

OPERATIONS

Sufi imran (TSO)

NailaAslam (GBO)

HiraUsman (GBO)

Qamarali (Chief teller)

Asim butt (Teller)

SERVICES

Filza Malik

BRANCH MANAGEMENT JOB DESCRIPTION:

ShumailaChaudhary (AVP)

BRANCH MANAGER

Business promotion, through typical activities like formulating, implementing/monitoring of strategic and sale plans as well as deepen existing relationship.
Spread head efforts for marketing new relationship.
Pro-actively gear up sales efforts, in line with change in business strategy
Achieve plan growth and cater to the branches expansion possibilities by pro-actively analyzing and proposing resources enhancements.
Ensure that branch achieves stable growth in revenues.
Foster a culture of teamwork by encouraging cross selling efforts in the branch
Visit customer regularly to retain the relationships.
Complete adherence to service management program.
Continue review of processes, practice and resources to ensure that services standards are met through capacity planning, removal of bottlenecks and continue process improvement.

MUHAMMAD SJJID (OG 2)

OPERATION MANAGER

Responsible for counter services/ operations with a view to achieve timely and accurate processing of deliverables in a professional environment.
Approval and supervision of daily transactions as per their approval DOA limit.
Authorization of utility bills collection and review of the scroll and ensure total amount collected is transferred to the main collection account.
Ensure surrendering of excess cash and soiled/out notes with cash house on weekly or need basis.
Responsibilities for reconciliation of all cash suspense on a daily basis.
Authorized and sign off all the PO/DD/FED/FTT jointly with 2^nd signatory in the branch.
Act as the custodian of strong room keys.
Act as a custodian of test key.
Responsibilities for the verification and balancing of cash/ prize bonds and stationary.
Supervising overall function of RTC’s and all deposit receipts.
To supervise all formalities regarding account opening and closing, amendments in accounts and handling of deceased and unclaimed account.
Supervising retention of hold mail statements and advises under dual control.
Checking of account opening forms.
Supervising and making stop payment of cheque and maintaining its proper record
Ensure approvals on account opened with exception, proactively resolving exceptions through follow-ups
Ensure the scanning of customer signature on the system and also authorized the ATM and check book request.
Act as a custodian of ATM/smart card and deliver the same to CSO at the start of the day for onward delivery to the customers.
Act as the joint custodian/receiver of the check books from NIFT rider. Ensure verification of the check books and noting of their serial numbers on the requisition slips.
Managing service delivery- observation of queue time and length and taking action as needed to capacitize serving counter and managing customer traffic in the branch.
Provide guidance and help in resolution of queries/issues pertaining to different areas of branch and update branch manager on a regular basis on the entire branch matters.
Liaison with sales and service staff to ensure that adequate support is provided in facilitating the branch’s service delivery standards and sales goals.
Ensure clean, hygienic and standardized branch outlook is maintaining by making sure HOD, housekeeping checklist are religiously practiced and followed.
Ensure the panic alarm, CCTV cameras, fire extinguishers and matic system is in working condition
Ensure that important phone numbers list, rate sheet, branch license and banking Mohtasib board is displayed.
Ensure that the marketing material and customer stationary is available.
Proactively monitoring the ATM downtime and resolve all technical issues through close coordination with information technology and hardware suppliers. Also ensure to arrange a designated UPAS for the ATM.
Monitoring of all activities pertaining to ATM operations and ensuring that ATM cash is balanced on daily basis.
Investigation and resolution of all abnormalities yo ATM transactions.
Manage timely recording/managing of ATM claims.
Act as the ATM keys/combination custodian.
Ensuring that departmental activities are carried out strictly in accordance with the laid down procedures/policies and SBP guidelines.
Review of the system reports and control on daily basis, identify bottlenecks and control weaknesses with a view to achieve accuracy by suggesting corrective actions.
Where relevant, identify resources for cash counter and general banking area.
Ensure job rotation in the branch and nominate staff for training program within the bank.

SUFI IMRAN (OG2)

TELLER SERVICE OFFICER

Perform accurate and timely cash counter transaction at the branch.
Accept cash deposit in the customer account and make payments against their checks. Perform proper scrutiny ans signature verification and post correct entries in the account as per the laid down policies and procedures.
Accept internal transfer request for the transaction between MCB customer accounts.
Accept utility bills/sale and purchase of prize bonds and maintain relevant register as per requirement of bank and SBP.
Daily cash sorting and compliance of SBP circulars regarding cash management.
Perform cash balancing of the cash box at day end.
Perform checking/sign off of day end proofing sheet against the check/deposit slips.
Ensure that departmental activities are carried out strictly in accordance with laid down procedures and policies of the bank and regulatory bodies.
Ensure that the cash counter area maintains highest standards of security.
Ensure that the panic alarms, fire extinguisher and CCTV are in working condition in cash area.
Ensure that highest standard of services is provided to the customers and customer’s traffic is managed smoothly.
Help supervisor in internal and external audit on need basis.
Help supervisor in investigations and resolution of issues pertaining to cash counter area.
Perform duties of ATM custodian according to delegation and laid down guidelines.
Prepare shipment of cut/soiled notes for onwards submission with cash house on need basis.
Prepare shipment of excess cash for onward submission with cash house o need basis.
Any other assignment/responsibility given by the immediate supervisor.

NailaAslam (OG 3)

GENERAL BANKING OFFICER

Accept outward clearing cheques from customer for collection of fund.
Perform scrutiny of cheques.
Affix clearing/crossing and other relevant stamps on the instruments.
Enter the details of the cheques in the branch clearing register and NIFT summary sheet.
Make stacks of 50 cheques.
Prepare summary of all clearing cheques along with a bundle cover and place the instrument in NIFT provided bag for onward delivery to NIFT rider.
Post temporary credit in the customer accounts by giving 3 days float in the system.
Get authorization from the customer services manager / branch operation manager for all transactions above the approved general banking officer limit.
Receive scroll (2242) from the NIFT rider, check and tally the amount clearing delivered by you from the previous day total sent to NIFT.
Perform the adjustment of float day’s period on the systems for all checks which have been cleared.
Perform reversal of transaction for the return cheques from NIFT make necessary entries in check return register.
Inform the customer via phone the same day. Note the comments on the deposit slip.
Receive the inward clearing checks from the NIFT rider along with the NIFT scroll (2242)
Jot and tally then total amount of all the cheques with that of NIFT scroll.
Segregate the cheques by cheque type and perform the scrutiny/ signature verification of the cheques.
Verify the IBS/AS and test number for DD payments.
Post the debits in the customer accounts as per assign limit and obtain approvals from customer service manager/branch operation manager for transaction above the limit.
Return discrepant cheques and prepare cheque return memos with the specific reason with the sign off from the TSS/BOM.
Note down the return cheques in the cheque return register.
Make a list of aggregate amount of return cheques and enclose the same on NIFT bundle cover.
Hand over the return cheques , cheque return memos and consolidate covering schedule to the NIFT rider.
Accept the outward collection cheque along with duly filled deposit slip from the customer.
Perform the scrutiny of cheques.
Affix relevant stamps.
Arrange cheques and enter details in the cheque collection register.
Prepare collection schedules in duplicate (SF 37) for filling in the cheque collection folder.
Prepare liabilities vouchers for required system entries.
Post the BRBC and BCBR vouchers in the general ledger.
Manage collection of FCY cheques by sending to the correspondent bank in the respective country or through the head office-Karachi.
Any other assignment given by the immediate supervisor.

HiraUsman (OG 3)

GENERAL BANKING OFFICER

Issuance and encashment of DD, TT, MT, PO and RTCs
Issuance of TDR’s, STDR’s, SNDs and CDRs.
Balancing of CDR’s, MKS, CGC, DD Payable, TT Payable, MT Payable and Pay Orders, etc.
Issuance of checque books and maintains a record of cheque book requisition.
Issuance of ATM cards
Make entry in locker register
Bulk Salary Processing
Signing/Passing vouchers as per schedule
Responsible for preserving the stocks of Security Stationary and RTCs
Keeping record of all return instruments
Unclaimed deposit review and issuance of notices to the customer (when required) and maintenance of proper record.
Review of systems and controls on a regular basis, identifying bottlenecks and control weaknesses with a view to achieving improvements and timely reporting of the same to BOM
Ensuring that departmental activities are carried out strictly in accordance with the laid down procedures/processes, and SBP Compliance guidelines.
Applying & Checking of Tests on Advices, DDs and other instruments
Ensuring daily checking of Journals to ensure balancing of related GL accounts and rule-out flying entries
Maintenance/Production of all old & current record i.e. books/system report related to assigned roles
Any other assignment/responsibility given by the immediate supervisor

RAMEEZ MALIK (OG 3)

Shaheen Sheikh (ON CONTACT)

PERSONAL BANKING ADVISORS

Provide complete details about the products offered by the bank.
Provide details about the upcoming products offered about bank.
Open new account for the customer and provide details regarding the documents required for account opening.
Make call back confirmation from the customer.
Provide the balance details to the customers.
Inform to the customers if his/her cheque is return from clearing.
Make entry in ATM dispute form.
Make entry in fund transfer form.
Try to create a loyal customer for the bank.
Any other assignment/responsibility given by the immediate supervisor.

Filza Malik (ON CONTRACT)

CUSTOMER SERVICES OFFICER

Greeting customers in a professional manner
Adherence to Service Protocols and Service Management Program
Resolve complaints pertaining to the branch via close follow-up with the concerned unit.
Floor management including Proper Queue Mgmt., Cleanliness & Outlook as per House Keeping Guidelines
Ensure adherence to SQ Matrices and Measurement
To provide highest level of service by being the first point of contact in the branch
Customer complaints to be logged in the system or on “complaint forms”
Handle customer’s correspondence and inquiries.
Ensure HOD is implemented in true spirit.
Ensure Housekeeping Checklists are properly filled by the janitorial staff and counter checked everyday
Ensure all the brochures, forms and stationery is available in the banking hall.
Ensure notice board is maintained properly.
Conduct Monthly Service Meeting of the branch
Prepare Minutes of the Service Meeting with responsibilities and actions/target dates and send to SQ/RH
Implement “internal Service Standards and Measures” and “monitoring” as laid by SQ.
Take chequebook/Smart card requests from customers.
Follow up on return items (ATM, PIN, Statements etc.) and call backs made to the customer (where required)
Issue balance statements and certificates to the customers after proper request/signature verification
Ensure that the request pertaining to other departments should be taken error-free
Provide product knowledge to customers.
Visit ATM Vestibule (if available) every 2 hours to check for smooth functionality and cleanliness
Submit weekly report of customer complaints to BM along with corrective action plan/resolutions
Facilitate Sales in cross-sell and sales lead generation
Provide active feedback to line management for improvement in area of responsibility.
Awareness of Bank Operational Risk Policies & its components, ensuring implementation in spirit & substance.
To be aware of the KYC/AML and should be fluent with the reporting procedures
Provide relevant data to SQ as and when required
Perform duties as a back-up of branch PBAs (where applicable)
Any other service related assignment/responsibility given by the immediate supervisor.

QAMAR ALI SHAH

ASIM BUTT

TELLERS

Perform accurate and timely cash counter transactions at the branch.
Accept cash deposits in the customer accounts and make payments against their checks. Perform proper scrutiny and signature verification and post correct entries in the account as per the laid down policies and procedures.
Accept internal transfer requests for the transactions between MCB customers’ accounts.
Accept Utility bills/sale and purchase of prize bonds & maintain relevant register as per requirement of bank and SBP.
Daily cash sorting & compliance of SBP circulars regarding cash management.
Perform cash balancing of the cash box at day end.
Perform checking/sign off of day end proofing sheet against the checks/deposit slips.
Ensure that departmental activities are carried out strictly in accordance with the laid down procedures and policies of the bank and regulatory bodies.
Ensure that he Cash Counter Area maintains highest standards of Security.
Ensure that the panic alarms, fire extinguisher and CCTV are in working condition in cash area Ensure that highest standard of service is provided to the customers and customer traffic is managed smoothly.
Help Supervisor in investigations and resolution of issues pertaining to cash counter area.
Assist Supervisor in internal and external audits on need basis.
Perform duties of ATM Custodian according to delegation and laid down guidelines.
Prepare shipment of excess cash (over and above the vault limit) for onward submission with Cash House on need basis.
Any other assignment/responsibility given by the immediate supervisor.

BRANCH STANDING AS AUGUST 13, 2011:

FIVE MAJOR CLIENTS

S.#	CLIENT NAME	DEPOSIT
1	IBRAHIM FABRICS	102 Millions
2	AMIN ITTEFAQ RICE MILLS	27 Millions
3	RAFHAN MAIZE	10 Millions
4	HASEEB WAQAS SUGAR MILLS	80 Millions
5	GARNADA TEXTILE	6 Millions

ACCOUNT CATEGORIZATION

S.#	TYPE OF ACCOUNT	NUMBER
1	Current	1945
2	Saving	802
3	Term deposit	30
4	Total	2777

DEPOSITS

S.#	TYPE OF ACCOUNT	AMOUNT/PERCENTAGE
1	Current deposit	46%
2	Saving deposit	59%
3	Fixed deposit	06%
4	Margin deposit	10%
5	Total deposit of branch	Above 970 Millions

LOCKER CATEGORIZATION

S.#	TYPE OF LOCKERS	QUANTITY
1	Extra large	0
2	Large	21
3	Medium	90
4	Small	90
5	Total	201

WORK DONE BY ME

PROVIDING ALL KIND OF BASIC INFORMATION TO THE CUSTOMER:

The basic and foremost purpose of customer services officer is to provide information to any existing or potential new customer regarding account opening process, types of account offered in MCB, credit information or information concerning various products and services offered by MCB.

But as I earlier mention that there is no separate customer interaction department so that formal employees do the job of customer interaction department.

FLOORING:

A greeter or working as a phone operator is also one of the fundamental duties of a customer services officer. As a greeter the customer services officer perform the following duties and functions,

To receive calls from customers and forward them to the required personal
To make calls to people required by the bank employees
To make calls to the customers whose check books and ATM have been arrived
To receive courier and make record of mail in DAK receive register
To send mails to the customers after filling out the envelops
To make record of calls made
To make record of attendance of employees

Being a greeter is very tough job, as a greeter has to deal with different types of customer angry, rude behavior and it is the great responsibility that the customer may not enter in the bank without any directional guidance from the greeter. One has to remain alert at all times while serving as a greeter.

FILLING DEPOSIT SLIPS FOR CUSTOMERS:

The formal employees and internees often fill the deposit slips. Formal employees at each level right from the cash officer to operation manager fill the deposit slips. Often literate customers who have some know how about the banking slips or who are the regular customers fills their slips by their own self. The work done by customer relation officer and general banking officer are as follow,

Attend phone calls
Scanning of signature specimen (SS card) and its attachment
Handling of return cheque
Daily clearing
Update KYC
Filling deposit slips
Attend customer inquiries
Received ATM forms
Issued ATM cards
Made charges vouchers for TT/DD/PO
Worked on the seat of ACCT opening/cheque collection/opened accounts
Issued cheque books
Received check book requisitions

WORK CARRIED OUT IN EIGHT WEEKS:

TIME PERIOD	DEPARTMENTS	DUTIES PERFORMED
Week 1 and 2	Customer services	Doing flooring and greet customers Make entry in DAK registered Fill ATM transaction dispute form for the customers Handling phone calls Taking messages over the phone Fill statement application form for the customers Do daily branch assessment and maintain a file for it Do daily telephonic audit of employees and maintain a record for it Filling of the house of the daily checklist and house keeping Write customers complains at the portal and make sure that these complains are resolved within turnaround time Made daily deposit report at the end of each day and send to the are head Made daily sales team progress report and send to the are head at the end of each day Learn about over the phone customer services
Week 3 and 4	Operations	Prepare fuel assignment of branch by following two patterns Learn how to make entry in cheque stop payment register and observe the process Observe the process of making entry in ATM fact sheet Learning bank operation guideline Observing processing duties performed Learn how to complete account opening form Checking new account form and make entry in account opening register Make entry in TDR register Learn how to fill know your customer form Do the correction of account opening forms and then send them to CPU at nilagum bad through courier
Week 5 and 6	Remittances/ Forex	Learn the concept of inward and outward clearing Learn the concept of within city or intercity clearing as well as CC Learn how to make entry in clearing register and return clearing register Learn how to make entry in checquebook register and ATM register Learn how to issue cheque book and ATM Observe the cheque transfer process Observe the foreign remittance process
Week 7	Cash department	Learn how to fill deposit slip Learning the cash limits Learning cheque cashing details Withdrawals and deposit limits Opening and closing cash count Deposit gold customers money Help in separating solid currency at the end of the day
Week 8	Sales calls	Sales calls with personal banking advisor Learning different techniques regarding sales Observing the new account forms To Make calls to the customers regarding C-Z 50 form (zakat ) To make calls to the customers regarding dormant account Observing personal clients handling Learn about different products offered by the MCB

ADVANTAGES AND DISADVANTAGES OF INTERNSHIP IN MCB MANAWALA BRANCH:

ADVANTAGES

The most important advantage of doing internship in MCB MANAWALA BRANCH branch is that they focus on internees.
The staff takes out time to teach internees about general banking operation and answer their question and queries.
The staff is fully supportive and guide and encourages the internees so they can learn as much as possible and can be prepared for their future endeavors.
They do not keeps internees just for the purpose of doing their clerical chores but are interested in training them.
They focus on punctuality and do not allow internees to take unnecessary leaves.

DISADVANTAGES

Since it is the most reputed bank but it does not provide any stipend to internees.
There is no proper sitting arrangement for internees because of small size of branch and large number of customers so internees do not have a place to sit.
There are lots of internees present at the same time, due to which some have to sit idle most of the time.

SWOT ANALYSIS

STRENGTHS:

MCB has the highest return on equity among its competitors.
MCB has the highest net interest margin as compared to HBL, NBP etc
It has lowest average deposit rates.
It has a high consumer loan growth rate
It has an extensive branch network.
It has less exposure to textile sector as compare to peer bank.
It has AA+ rating for long term and A+ for short term loans by PACRA showing high credit quality and low credit risk.
At present it has the largest ATM network.
MCB utilize its assets in efficient and effective manner.
It has strong customer relationship.
Brand image because of Muslim word in the name in an Islamic country.
MCB meeting the challenges of latest technology by introducing smart card and mobile banking.
MCB has very stable deposit base.
Investing huge sums on human resource and development.

WEAKNESSES:

It has an increasing rate of NPLs (from 4.67% to 6.69%).
Less job satisfaction of employees.
Does not have international reorganization.
Through its investment are increasing but 40% are confined to investment in government securities only. This reduces its return.
Political instability distracts the business of banking in Pakistan.
Promotions are mainly on seniority basis.
It has non aggressive marketing.
Decision making process is very slow.
The majority of people are not well aware about the products of MCB. Therefore it should advertise extensively especially RTC and Master Cards.
Favoritism and nepotism in recruitment.
High level of employee turnover.

OPPORTUNITIES:

MCB can focus on consumer banking to increase its yields.
It can work to improve the conditions of non-performing loans.
During the period of recession, it can take advantage of decreased cash reserve requirement.
It can expand its Islamic banking.
Extra advertisement will enable them to improve their services.
It can go to global world to expand its business.
New schemes for deposits and finances should be introduced regularly.

THREATS:

Foreign banks in market having more marketing budget.
It has also threats from banks including NBP and UBL that increasing their branches network to encourage deposit rising.
Threats from government it it raises cash reserve requirement and statutory reserve requirement.
It has threats from bank AL-Falah and UBL as far as car financing is concerned.
Similarly NBP is a threat in house financing.
Rising deposit rates.
Decline in public and private sector credit to tight monetary policies.
Weak economic condition of Pakistan.
Foreign banks are flourishing in field of consumer financing
People don’t prefer banking culture they mostly prefer cash transaction

CONCLUSION

MCB bank Limited is a banking company incorporated in Pakistan and is engaged in commercial banking and related services. The bank’s ordinary are listed on all the stock exchanges in Pakistan whereas its global depository receipts are traded on the international order book system of the London stock exchange. The bank operates 1130 branches including Islamic banking branches and bank has 600 ATM all over Pakistan and the consumer base of this bank is 4.5 million approximately. After analyzing its income statements, balance sheet, cash flow statement, products and services, loans, it is concluded it is second best bank in the Pakistan. MCB taking progress by leaps and bounds, soon it will become the first best commercial bank of the Pakistan.

The consumer banking industry has many opportunities to grow, customer wants convenience mode of banking for which new products & services should be introduced on the other hand it is giving huge profits to bank while the level to risk is less in consumer financing as compare to others. Wealth Management Service which is a new service in Pakistan Consumer Banking industry its awareness should be increased as in our survey it reveals that most of the respondent even don’t have any idea of consumer financing. Bank’s customers want new services to be introduced in which Interbank Transfer Facility & Money at door step the most are demanding services.In recent years the regulation for tenure and amount of consumer financing has been changed many times but still the bank’s customers are not totally satisfied by the tenure of consumer financing. Improper guidance, slow processing and bank statement are the major problems faced by bank’s customers in getting consumer loans. The reason for these problems is that people applying for consumer loans don’t have proper information about the requirements by the banks and due to high number of applications & lengthy procedure by banks the loan Very few borrowers know that the rate of interest being charges on consumer finance by the financial institutions is too high as compared to prime interest. In case of credit cards the respondents in our survey marked High Markup Rate as the major problem they are facing in Credit Cards. Despite of many changes in bank policies and strict regulations by SBP still bank’s customers are facing hidden charges problem. Due to unclear policies and term &condition of banks, customers are not able to know about different charges of banks and the problem of hidden charges occurs.Although CIB provide complete and accurate information about the bank’s customer credit records but still loans default occur in consumer financing the problem is not with only due false customer records but also due to wrong policies and improper assessment by bank which cause defaults on consumer loans.The target market for issuing consumer loans for banks in the middle class because they have the strong ability to pay off their loans, banks should make adequate polices to provide loans to lower class on easy terms and low markup rate. Upper class is generally not focused for consumer financing because they have enough resources & purchasing power to buy any asset.

Due to high markup personal loans and credit cards are among the most preferred category of consumer financing by the banks. While in terms of loans amount the biggest category of consumer loans are auto & mortgage loans and they are preferred by banks because they have collateral which provide security in case of any default. According to bank’s staff the major reason for defaults on consumer loans is improper assessment and Auto loans have become very trouble-some for the private banks. The rate of defaults has increased at phenomenal rates. The cars are auctioned at lower prices which do not recover the entire amount invested by bank. House and car financing are safe modes of financing from the banker’s point of view as the every rising real-estate and car prices coupled with safety margin in the shape of down payment allow the bankers to enjoy a found night sleep. Most of the bank’s customers prefer local banks for general banking activities this is mainly due to large branch network, wide range of services and low service charges provided by the local banks. But for consumer banking, customers prefer foreign banks in foreign banks are the introducer of CB in Pakistan still retains the major share of consumer financing in Pakistan.

During the last five years consumer banking had witnessed a high growth in Pakistan but its growth rate is declining now which is due to the high markup rate charged by banks and high increase in NPL with low recovery rate. Maintaining the critical balance between savings, investment and borrowers debt-servicing ability is possible if input prices remain stable affording business to sustain their profitability and interest rate should remain stable. There is no denying to the fact that consumer credit within prudent and sustainable limits is desirable for economic growth, smoothing consumption and improving credit risk diversification.

The consumer finance is money lending affairs to a needy perform for improvement of his well beings and ultimately his living standard in the society. It is financing facilities that generally and wholesomely support consumption and as a result improves the overall Credit card is a risky mode of finance as no collateral is available to cover risk. Perhaps this is the reason that this segment of bank finance has been allowed to operate o the terms of the bankers without any worthwhile monitoring by SBP. The growth of our economy has led to increasing consumption trends, resulting the widening demand and supply gap. However as the people of the country become more educated they have realized the benefits and conveniences of using plastic money as a mode of payment. At the end I just want to say that MCB should follow proper pattern to advertise their products.

RECOMMENDATIONS

No organization is perfect. They all have their set of problems, and MCB BANK is one of them. During my internship there I have noticed many problems that employees and customers are facing.

MCB needs to use more marketing channels to give people awareness about the products and services that it offers.
MCB should also improve its website more information should be added about financial performance and it should be free from errors.
MCB should evolve a very serious management policy to attract multinational co-operations as its clients.
One of MCB bank basic problems is the intensity of work that every employee has to bear. It seems as though banking in general, wipes out a person s social life. Bank should introduce some reward and schemes for employee’s benefit. It will make them more committed to their work and they will work even harder to get rewards benefits.
They have high target rates for their employees which are not easy to achieve. This will result in burnout sooner or later, and employees would be off to other organizations. Although I understand that there is lot or competition in banking sector, they should decrease their target level for their employees so that their motivational level increases and they do their work with more interest and enthusiasm.
As MCB bank is centrally controlled therefore everything has been decided at their main branch in Karachi. This situation is sometimes very disturbing in day to day activities. Bank should give more decision power to area head for smooth business operations.
Marketing is a major part of every organization, and in order to attract more customers, all organizations need to get involved in high level marketing. Like sponsoring some events will help the organization attracting more clients to the bank.
There is the criticism on the banking management that the salaries of employees are decreasing in every succeeding year and I think this will shake the confidence and working habits of employees.
Old and lazy staff should be replaced by young, qualified and energetic staff.
Proper attention should be paid to upgrade the customer services.
Bank should adopt the global organizational banking structure to meet the international standards of banking sector.
Since MCB is one of the most reputed banks in Pakistan, it does not need to attract employees through benefits and incentives, which has resulted in the low income level of employees as compared to other banks.

MCB business has grown with a tremendous pace. There have been considerable profits just in a short span of time. Though MCB has a strong footing and maintain a good number of loyal customers still bank has threats in various sectors.

LIST OF ANNEXURE

ACCOUNT OPENING FORM:

DEBIT VOUCHER:

CREDIT VOUCHER:

SPECIMEN SIGNATURE CARD:

CHEQUE BOOK REQUISTION:

CHEQUE RETURN MEMO:

CHEQUE STOP PAYMENT:

ATM APPLICATION FORM:\

ATM TRANSACTION DISPUTE FORM:

FUND TRANSFER APPLICATION:

BIBLOGRAPHY

Mcb.com.pk
MCB operational manual
MCB branch directory
MCB Manawala Branch employees
Sbp.org.pk
Scribd.com
Google.com
Finance.kalpoint.com

1 Response to "Internship Report"

1 | Melanie
May 25, 2013 at 2:58 pm

I every time used to read article in news papers but now
as I am a user of web thus from now I am using net for articles,
thanks to web.

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