INTERNSHIP REPORT

INTERNSHIP REPORT MCB LIMITED

9/15/2011MCB LIMITED

MCB Bank Ltd.Fatima Jinnah Branch, Sargodha.

Advisor:Mr. javed iqbal(Lecturer)Mariam ali M.com FinanceRoll No(17 r)

Internship Report is submitted to the Department of Commerce Uinversity of Sargodha in partial fullfilment of the Requirement for the Degree Master of Commerce in FinanceSeptember 2011.

Dedication & AcknowledgementsI dedicate this internship report to my parents. Because of their prayers and encouragement I have been able to complete this report.Praise is to Allah, the most Gracious and Merciful, who blessed me with the knowledge and wisdom and enabled me to overcome this task. Heartiest gratitude to my parents without their continuous encouragement and love I could not have accomplished this task.I am very grateful to my advisor Mr. Mubshir for their continuous help, support and time during the entire course of my internship. I am also very grateful to all the staff members at MCB Fatima Jinnah Bracnch, Lahore especially Mr. Rizwan Anwar Manager Credit and Mr. Umar Bajwa operation Manager for their guidance and encouragement.

Executive SummaryMCB Bank Limited has a solid foundation of over 50 years in Pakistan, with a network of over 900 branches, over 750 of which are Automated Branches, over 222 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch.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.During my internship in MCB I worked in Remittances, Advances, and Customer Service Office department and I successfully completed all the task/duties that were assigned to me. During the course of internship I learned about different functions performed by Remittances, Advances, and Customer Service Office department and bank as a whole. I also learned banks correspondence with their customers and within branches. I learned about documentation requirements and record keeping for different activities and processes, especially the documentation requirement for different kinds of financing facilities.Table of Contents:-1. Industry introduction2. An overview of organization

History of organization Nature of organizationa. Vision statementb. Mission statement Main Features Competitors3. Organizational Strcture:- Hierarchy Chart Number of employees Main offices Introduction of all departments Comments on organizational structure4. Work done by internee5. Financial Analysis of organization Financial data of last 5 yearsa) Horizontal analysisb) Vertical analysis Significance of ratio Components of ratio(formulas used) Horizontal analysis of ratios Interpretation of ratios6. SWOT Analysis7. Conclusion8. Recommendations9. Limitations10. Bibliography11. Glossary

1. Industry Introduction:The word 'Bank' is said to have been derived from the words Bancus or Banque or Bank. This history of banking is traced to as early as 2000 B.C. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The first stage in the development of modern banking, thus, was the accepting of deposits of cash from those persons who had surplus money with them.Banks play very important role in the economy of any country. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Today modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the people for the investment purposes. If there would be no banks then a great portion of a capital of the country would remain idle. Banking is generally a highly regulated industry. A bank is a financial intermediary. Financial intermediary means is an entity that connects surplus and deficit agents. The economic functions of banks include, issue of money, netting and settlement of payments, credit intermediation, credit quality improvement, maturity transformation etc.The first modern bank was founded in Italy in Genoa in 1406. Modern banks are playing lots of new roles and making life of common consumer as well as business men easy. Modern Banks now do investing, lending, brokerage, real estate, borrowing, advisory and many functions in a very systematic manner giving the community lives in countries a new and advanced and obviously a very better look.From a historical standpoint, the recent growth of international banking can be regarded as a reversion to the situation before World War I when European banks dominated the world capital market. Since international trade is closely related to international banking, volume of international trade (imports and exports together) is a determinant of the growth of international banking and the relationship is direct. From 1960 onwards globalization of capital market started and the emergence of surplus in petro-dollars in the seventies gave the much needed liquidity to the international banking business.

1.1 HISTORY OF BANKING IN PAKISTAN:History of banking sector in Pakistan is old as old the formation of Pakistan. The interesting point which I observed during the span of mine internship was the historical background of Banking & Financial sector which is the one in which great improvement and growth is observed since the formation of Pakistan.Pakistan banking growth can be divided into three ares:a) Pre-Nationalization Erab) Nationalization Erac) Post Nationalization Era

Pre-Nationalization Era:On July 1948 there were 195 branches with deposits of Rs.88 crore only due to violence at large scale most of the branches were closed. By that time Reserve Bank of India was acting as central bank for both countries. Same currency was used in both territories. But Reserve Bank of India was set down Pakistan on many occasions such as the issue of funds transfer etc.For improving the overall position there are many steps taken by the government. Some of the steps taken by the government in this regard were as follow:1. Formation of State Bank of Pakistan (SBP) on 1st July, 1948.2. Banking Companies Ordinance 1962 for protection and guidance to banks3. Larger powers were given to SBP under the SBP Act (1956).4. Setting up of National Bank of Pakistan in November, 1949

(Formation of the national bank was to control the 'jute' export in East Pakistan and to act as agent of SBP (State Bank of the Pakistan). (There were only two Muslim banks in Indo Pak before partition, HBL (Habib Bank Limited) and Australia Bank Limited)Nationalization Era:On January 01, 1974 all Pakistani banks were nationalized under the Nationalization Act 1974 and become the property of the Pakistan. All small banks Were merged into 5 major bigger Pakistani banks under the control of Pakistan Banking Council.However the major changes were occurs after nationalization that is follow:

Limitations: Decrease in service level of bank officers. Decrease in profitability as wellBenefits: Banks were encouraged to extend cooperation to neglected areas. Working of banks was extended to under developed areas. Market expansion for credit and deposits.

POST NATIONALIZATION ERA:In 1990 the government decided to privatize all the nationalized institutes. For this purpose, amendments were made to Nationalization Act 1974 and two nationalized banks were privatized. Along with this a permission to open banks in private sector was also granted.a) MCB taken up by a private group in April, 1991b) ABL taken up by its own employees in September 1991.The rules regarding establishment of new banks and for incoming foreign banks were also relaxed. Note: (UBL taken up by UAE party in 2002)

1.2 Pakistan current scenario:Banks in Pakistan account for 95% of the financial sector. Pakistan has a well-developed banking system, which consists of a wide variety of institutions ranging from a central bank to commercial banks and to specialized agencies to cater for special requirements of specific sectors. The country started without any worthwhile banking network in 1947 but witnessed phenomenal growth in the first two decades. By 1970, it had acquired a flourishing banking sector.The era of 90s was the climax of privatization, deregulation and restructuring in the domestic banking industry and financial institutions. The Government only owns the National Bank but 80% of bank assets are in private sector. Banking assets rose three-folds over the last five years and the industry size is reaching Rs 4 trillion. The contribution of banking sector to GDP ratio is 55.6%. Pakistan has been ranked 2nd in performance and efficiency indicators among the South Asian countries by the World Bank. There are 68 scheduled banks of which the top five have 50% of the market share. Banking industry, in Pakistan, is currently under a wave of Mergers and Acquisitions (M & As). There are on average 3 M & as per year.

Overview of the organization:-

2. An overview of the Organization:MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion and total assets over Rs.500 Billion. Muslim Commercial Bank (MCB) unfolds 52 years of growth. MCB Past:The bank incorporated in Calcutta on July 9, 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1956, the Bank transferred its registered office to Karachi, where the Head Office is presently located. In 1974, MCB was nationalized along with all other private sector banks.

Privatization:In April 1991, MCB became Pakistans first privatized bank. MCB was the first to be privatized upon recommendations of World Bank and IMF. 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. . MCB is a bank that has grown with time, experience and Pakistan. (After privatize the MCB the important development in the history of Bank is the Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in Pakistan)

MCB Present:The Bank has a customer base of approximately 4 million, a nationwide distribution network of over 1,000 branches and over 450 ATMs in the market. During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base. A major achievement of MCB is that the state bank of Pakistan has issued a license to MCB to start Islamic banking.Extended use of information technology which is evident from the fact that there are 768 fully automated branches, more than 250- online branches (integrated networking), 151 ATMS in 27 cities nation wide and a M.C.B continuously innovate new product.

MCB Future:MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clientele includes public sector companies as well as large local and multinational concerns. MCB is also catering to the growing middle class by Providing new asset and liability product. MCB claims that we are a team of committed professionals, providing innovative and efficient financial solutions.MCB future will bright that an important steps towards the success of the Pakistani economy.

VISION:-To become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work

MISSION OF MCBMission of MCB in the 21st century is to have highly motivated professional team who will provide quality customers services, in order to improve profitability so that an increase in our share value. The chairman of MCB has desired to extend the banks highly professional services in foreign operation and become in the list of Asias best financial institution.To become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work.

2.3Features of the Organization perceived by the Internee; As I did internship in MCB at Fatima jinnah branch Sargodha I absorb a lot of things that should be in every office.MBC working environment is friendly and culture values are adopted by each level of employees.2.3.1Core values of the MCB:MCB claims that it represent following Values: CUSTOMER FOCUS:We treat each of our customer equality & as the most important person while we interact with him/her. We must ensure that we do everything to meet and exceed the customers expectations with perfect to times, accuracy & quality services. EMPLOYEE RESPECT & DIGNITY:We treat each of our employees with fairness, which includes giving constructive feedback for their development. We celebrate diversity and seek suggestions from all employees for improvement. We ensure that responsibility & fairness in all our decision-making.

TEAM BASED APPROACH:We work towards achievement of our vision & mission as a combines group. We encourage inter & intra-departmental communications. We treat our colleagues as our internal customers & ensure that the requirements of internal customer focus are always met.

QUEST FOR QUALITY: We ensure that each moment of our time is spent on value adding activity. We always seek ways for exceeding expectations of customers & colleagues. We also ensure that we do things right, first time every time.GOOD CORPORATE CITIZENSHIP:We ensure that we contribute our due share to the Govt. we realize that we have a responsibility to the society in which we operate & we seek ways of playing a positive role for the betterment of the community at large.2. 3.2 Moral Values of the Employees:INTEGRITY:We are the trustees of public funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.

RESPECT:We respect our customers values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed.EXCELLENCE:We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward.CUSTOMER CENTRICITY: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.2.3.3. Product Line or Product Mix of the Organization: MCB Rupee Traveler Cheque:MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash for traveling and travel related purposes. The product has been extremely popular and is preferred over cash by customers while travelling and in all walks of life. MCB Rupee Traveler's Cheques- The safest way to Carry Cash. You don't have to be an MCB account holder to buy the Rupee Traveler Cheques. Anybody can purchase them. It's a safe and convenient way to conduct everyday business. Features of the Rupee Travelers Cheques:1. Easily Available 3.Easily Refunded2. Easily Enchased 4.Exclusive Security MCB business Sarmaya:MCB Business Sarmaya is a running finance against your residential property. It offers running finance up to 20 millions with low markup.

MCB Car 4 U:MCB car 4 u auto finance is a power move that gets you not only a car of your own choice but leads you best in life. It is affordable with competitive markup, flexible conditioning and easy processing and above all no hidden cost.

MCB Pyara Ghar:MCB gives dream home at the lowest and best possible mark-up rates. You can choose either one of our two mark-up rate options- fixed or variable.Who Can Apply Pakistani national residing in the city and area where the product is launched. 25 years old or above when you apply and under 60 at the time of maturity of the applied financing period. Salaried person, self-employed professional or a businessman with a verifiable monthly income stream. Net take -Home income not less than Rs. 25,000 per month. Have 5 years or more of business or professional experience. Employed with the present employer for 2 years with a total employment history of 5 years. Home Purchase Home Renovation Home Construction Tenure 3 years to 15 years 2 years to 5 years 3 years to 15 years

Mahnama Khushali Scheme:A 5- year fixed Deposit Scheme, targeted to persons with small savings who would desire a regular monthly return on their investment.MCB Khushali Bachat Account: 8% rate of return per annum. Returns calculated on daily. Average balance and paid half yearly. Introduced first time in Pakistan. The facility of helping account holders pays utility bills (electricity, telephone and gas) through their account. No queues. No delays.

Prime Currency Account Scheme: Launched to attract deposits in foreign currencies. US Dollars, Pound Sterling, Euro and Japanese Yen.

Hajj Mubarak Scheme: A saving scheme, of 2/3 years duration, for the convenience of persons, with a limited income, who desire to perform Hajj was introduced.Under the 2 years scheme, a monthly deposit of Rs.1800 is required, whereas under the 3 years scheme, the required monthly deposit is only Rs.1200

Capital Growth Certificate Scheme: For long term depositors under which the amount deposited almost doubles at the end of 5 years. For the scheme, the minimum amount of deposits is Rs. 10000 while there is no maximum limit. In case of premature encashment of the certificate, the depositor will profit at the same rates as that of PL Saving Account.

Fund Management Scheme: This scheme is offered to corporate and customers and is aimed at providing better rate of return up to 15% per annum. One of the objectives of the scheme is to develop secondary market for Government Securities.Consultancy Services: In the process of privatization of public sector units, prospective buyers need professional assistance and MCB, with its expertise, offers to them specialized service for valuation of the market value of the industrial unit, preparing bid documents and arranging finance for the purchase of the unit.Self Supporting Scheme: For the benefits of genuine worker/borrowers who are poor and needy and for small entrepreneur the bank as evolved a self supporting scheme: maximum amount of loan Rs.25000 and minimum Rs.5000 per individual. Loan will be totally free of mark-up.Fax Press: This product was first of its kind introduced by using modem technology of The Fax Machine. It facilitates speedy transfer of funds within Pakistan. The service guarantees transfer of from one city to another, within an hour.

Night Banking Service: For the convenience of the account holder, service has, especially, been introduced at busy commercial centers. Traders and other clients can now make deposit, with case, at such centers up to 8.00PM.Utility Bill Collection: With the aim of extending this service to wider range of customers, the number of MCB branches collecting Utility Bills more than 900. MCB Mobile Banking: At the forefront of technological excellence, MCB proudly introduces MCB MOBILE BANKING*. The convenience of accessing account balance information and mini statements whenever want or wherever may need them, with comfort and peace of mind.MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365 days. MOBILE BANKING AT A GLANCE:MCB Mobile Banking gives easy and quick access to account(s) at a time find convenient, including all holidays. MCB Islamic Banking Services: Islamic banking services through exclusive units/branches offering a range of liability and asset based Sharia compliant products like Musharika, Murabaha, Ijara and Istasana.

MCB Car Cash: Car financing and leasing at competitive rates with flexible options Car cash finances both semi-commercial and non-commercial vehicles for personal and business use.

MCB Locker: The best protection for your valuables. Lockers of different capacities are available nationwide.MCB Master Card: MasterCard International has expanded globally in more locations in the world than any other card. The card was introduced by MCB Bank Limited in 1995 and now offers card members over 15 million outlets in 232 countries. Photo security- The first bank in Pakistan to introduce the enhanced feature of photograph on the card limiting fraud in case of card loss. Welcomed at over 3, 000 outlets in Pakistan. Provides up-to 45 days Free Credit. Joining and Annual Fees to suit you. 24 Hour Customer Services- Call 111-700-700 and you can get information from our customer services representatives on new card application or have your queries resolved anytime of the day. Cash Advance Facilities

MCB Smart Card: MCB now brings you MCB Smart Card -a secure and convenient instrument of payment with unmatched functionalities. It provides 24-hour direct access to your bank account the convenience and flexibility of MCB Smart Card will help live a smarter life. It not only helps you manage your expenses, but also avoids undue interest on your day to day credit card transactions. Your balance is always within your reach and you spend accordingly.MCB is the only bank to introduce a debit card that gives the option to choose from domestic and international card for local and global usage respectivelyRemit Express: Fastest to Pakistan. Anywhere in Pakistan.The fastest way of getting your money across to Pakistan. Remit Express offers low cost remittance from U.A.E. and Saudi Arabia. Your relatives, friends or business associates receive drafts within 72 hours.MCB Remit Express has been specifically designed to meet the needs of the expatriate Pakistani community residing in the Gulf countries.Easy Personal Loan: MCB Easy Personal Loan provides you with the financial advantage to do things you've always wanted to but never had the sufficient funds for. Take that much-needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance a better education for your children. MCB Virtual:MCB Virtual provides the continence of banking on internet. Whether at office or home or traveling. Log on at www.mcb.com.pk and enjoy 24 hours access of all your accounts for the largest array of service.Initially, the bank focused on the upper class customers only and offered for a limited class of people. But now the strategy has been changed and the bank is now targeting the middle market also. The products are of diverse class people.Customers complaints are encouraged because it gives an opportunity to feedback that makes it possible to know the needs of the customer problems regarding services and it can improved.I perceive during my internship span that MCB customers related approach is beneficial for the MCB.MCB communication towards their Customer are best and according to the global requirement that a symbol of success.

Competitors Askari Bank, Rawalpindi Atlas Bank, Karachi Bank AL Habib, Karachi Bank Alfalah, Karachi BankIslami Pakistan Limited, Karachi Barclays Bank, Karachi Faysal Bank, Karachi Habib Bank, Karachi Habib Metropolitan Bank, Karachi KASB Bank, Karachi Mybank Limited, Karachi NIB Bank, Karachi Royal Bank of Scotland Silk Bank formerly Saudi Pak Non-Commercial Bank, Karachi United Bank, Karachi Bank Of Punjab, LahoreSummit Bank, Karachi Allied Bank of Pakistan, Karachi

Strengthen Analysis of MCB with other organization:Strength of the MCB: Mainly operated by Manshas group. Offered a wide variety of services to its customers and has a customer bank of round about 4 million. MCB working in Pakistan over 60 years of success. Muslim Commercial Bank (MCB) falls under the category of big five domestic commercial bank. Strong Commercial relationship. Asset utilization is good. Currently in a good financial position (few debts, etc) Skilled workforce (little training required) Company name recognized on a National/Regional

3.1 Management hierarchy:

PRESID

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

OFFICERS GRADE I II III

ASSISTANTS

CASHIER

PEON

3.2 Employees of the MCB:Board of Directors:Name Designation

Mian Mohammad Mansha

Chairman

Mr. S. M. Muneer

Vice Chairman

Mr. Tariq RafiMember

Mr. Shahzad SaleemMember

Mr. Sarmad AminMember

Dr. Muhammad YaqubMember

Mian Raza ManshaMember

Dato' Mohammed HusseinMember

Mr. Aftab Ahmad KhanMember

Mr. Abdul Farid Bin AliasMember

Mian Umer ManshaMember

Mr. Muhammad Ali ZebMember

Mr. M.U.A. UsmaniActing President

Audit Committee:Name Designation

Mr. Tariq RafiChairman

Dr. Muhammad YaqubMember

Dato' Mohammed HusseinMember

Mr. Aftab Ahmad KhanMember

Mr. Muhammad Ali ZebMember

Mr. Malik Abdul WaheedMember

Human Resources Committee:Name Designation

Mian Mohammad ManshaChairman

Dr. Muhammad YaqubsMember

Mian Raza ManshaMember

Mr. Shahzad SaleemnMember

Mr. M.U.A. UsmaniMember

Risk Management & Portfolio Review Committee:NameDesignation

Mr. Sarmad AminChairman

Mr. S. M. Munee rMember

Mr. Tariq RafiMember

Mian Raza ManshaMember

Mr. Abdul Farid Bin AliasMember

Mr. M.U.A. UsmaniMember

Committee on Physical Planning, IT System & Contingency Arrangements:NameDesignation

Mr. Sarmad AminChairman

Mr. S. M. MuneerMembers

Mr. Tariq Rafi,embers

Mian Raza ManshasMembers

Mr. Abdul Farid Bin AliasMembers

Mr. M.U.A. UsmaniMemberss

Business Strategy & Development Committee:

NamesDesignation

Mian Mohammad ManshaChairman

Mr. S. M. MuneerMember

Mr. Shahzad SaleemMember

Mian Raza ManshaMember

Dr. Muhammad YaqubMember

Dato' Mohammad HusseinMember

Mian Umer ManshaMember

Mr. M.U.A. UsmaniMembers

Chief Financial Officer: Mr.Salman Zafar Siddiqi

Staff of MCB at Fatima Jinnah Sargodha:-Manager :Name: - Malik Mohammad RiazOperational Manager:Name: - Mr. Umar BajwaCredit Manager:-Name:- Mr. Rizwan AnwarRemittances:Name:- Ms. Bushra RiazGeneral Banking Officer:-Name:- Mr. Mohammad Arif

Senior CashierName: - Mr. Skindar

Junior Cashiers:Name: - Mr. Rafi

Name: - Mr. Muhammad AtifAddress: - MCB Bank Bhalwal Branch, Bhalwal, Sargodha.

Non-Clerical Staff:

Tea BoyName: - Mohammad BabarSweeperName: - Shahzad

Guards:

Name: - Iltaf Ahmad

Name: - M. Zubair

3.3 Main Offices:Principal Office:MCB 15 Main Gulberg, Lahore

Registrar's and Share Registration Office:MCB 15 Main Gulberg, LahoreM/s. THK Associates (Pvt.) LimitedState Life Building No.3,Dr. Ziauddin Ahmed RoadKarachi.Circle Offices:CIRCLE OFFICE COMMERCIAL - KARACHI CITY (5027)2nd Floor, Mehdi Tower, 115/ A, Shahrah-e-Faisal, Karachi.Contact # 021 - 34329048CIRCLE OFFICE COMMERCIAL - KARACHI EAST (5003):Mezzanine Floor, Mehdi Tower, 115/A, Shahrah-e-Faisal, Karachi.Contact # 021 - 34554412

CIRCLE OFFICE COMMERCIAL - KARACHI WEST (5002):Adamjee House, Mezzanine Floor, I.I. Chundrigar Road, Karachi.Contact # 021 - 32414683 / 021 - 32427932CIRCLE OFFICE COMMERCIAL - HYDERABAD (5011):A/97, Latifabad No.3, Hyderabad.Contact # 022 - 3865848CIRCLE OFFICE COMMERCIAL - QUETTA (5019):Near Arts Council, M.A. Jinnah Road, Quetta.Contact # 081 - 2841272 / 081 - 2836224CIRCLE OFFICE COMMERCIAL - BAHAWALPUR (5109):4-A Qasim Road, Model Town, Bahawalpur.Contact # 062 - 2889858CIRCLE OFFICE COMMERCIAL - MULTAN (5303):3rd Floor, MCB Building, 59-A, Abdali Road, Multan.Contact # 061 4508300\

CIRCLE OFFICE COMMERCIAL - SUKKUR (5024):Near Mehran View Plaza, Bunder Road, Sukkur.Contact # 071 - 9310151CIRCLE OFFICE COMMERCIAL - LAHORE (5013):5th Floor, MCB 15-Main, Gulberg, Jail Road, Lahore.Contact # 042 - 36041515 / 042 - 36041516CIRCLE OFFICE COMMERCIAL - FAISALABAD (5009):Bank Square, Circular Road, P.O. Box No.175, Faisalabad.Contact # 041- 2617298 / 041 - 2627171CIRCLE OFFICE COMMERCIAL - GUJRANWALA (5010):Trust Plaza, G.T. Road, Gujranwala.Contact # 055 - 3251148CIRCLE OFFICE COMMERCIAL - SARGODHA (5022):400-Club Road, Sargodha.Contact # S048 - 3722929CIRCLE OFFICE COMMERCIAL - ISLAMABAD (5012):MCB Building, Ist Floor, F-6/G-6, Jinnah Avenue 28, Blue Area, Islamabad.Contact # 051 - 2801043CIRCLE OFFICE COMMERCIAL - JHELUM (5120):10-Civil Line, Opposite District Nazim Office, Jhelum City.Contact # 0544 - 629504CIRCLE OFFICE COMMERCIAL - PESHAWAR (5018):Cantonment Complex, Fish Plaza, Fakhr-e-Alam Road, Peshawar Cantt.Contact # R091 - 5273675 / 091 - 5276843CIRCLE OFFICE COMMERCIAL - ABBOTTABAD (5107):199, Kala Pul Murree Road, Abbottabad.Contact # 0992 333475Regional Offices:REGIONAL OFFICE COMMERCIAL - KARACHI CITY2nd Floor, Mehdi Tower, 115/A, Shahrah-e-Faisal, Karachi.Contact # 021 - 34329053

REGIONAL OFFICE COMMERCIAL - KARACHI NORTH:2nd Floor, Mehdi Tower, 115/A, Shahrah-e-Faisal, Karachi.Contact # 021 - 34329052REGIONAL OFFICE COMMERCIAL - KARACHI EAST:Mezzanine Floor, Mehdi Tower, 115/A, Shahrah-e-Faisal, Karachi.Contact # 021 - 34550542 REGIONAL OFFICE COMMERCIAL - KARACHI SOUTH:Mezzanine Floor, Mehdi Tower, 115/A, Shahrah-e-Faisal, Karachi.Contact # 021 - 34550542 REGIONAL OFFICE COMMERCIAL - KARACHI CENTRAL:Adamjee House, Mezzanine Floor, I.I. Chundrigar Road, Karachi.Contact # 021 - 32432529 REGIONAL OFFICE - KARACHI WEST:Adamjee House, Mezzanine Floor, I.I. Chundrigar Road, Karachi.Contact # 021 - 32415003 / 021 2469018

REGIONAL OFFICE COMMERCIAL HYDERABAD:A/97, Latifabad No.3, Hyderabad.Contact # 022 - 3865981 REGIONAL OFFICE COMMERCIAL NAWABSHAH:A-97 Latifabad No.3, Hyderabad.Contact # 022 - 3869787 REGIONAL OFFICE COMMERCIAL - MAKRAN (5112):Jinnah Avenue Branch Building, Opp. Javed Complex, Airport Road, Gwadar.Contact # 0864 - 211325REGIONAL OFFICE COMMERCIAL BAHAWALPUR:4-A Qasim Road, Model Town, Bahawalpur. Contact # 062 - 2886794REGIONAL OFFICE COMMERCIAL - RAHIM YAR KHAN (5157):Model Town, Rahim Yar Khan.Contact # 068 5881327

REGIONAL OFFICE COMMERCIAL - VEHARI (5148):240 Nothern Block, Main Road, Sharqi Colony, Vehari.Contact # 067 - 3362763 REGIONAL OFFICE COMMERCIAL - DERA GHAZI KHAN (5111):MCB Building, 1st Floor, Microwave Tower, College Road, Dera Ghazi Khan.Contact # 064 - 2464022 REGIONAL OFFICE COMMERCIAL MULTAN:3rd Floor, MCB Building, 59-A, Abdali Road, Multan.Contact # 061 - 4508301REGIONAL OFFICE COMMERCIAL - SAHIWAL (5021):Mission Chowk, Jinnah Road, Sahiwal.Contact # 040 - 4465503REGIONAL OFFICE COMMERCIAL LARKANA:Near Mehran View Plaza, Bunder Road, Sukkur.Contact # 071 9310912

REGIONAL OFFICE COMMERCIAL SUKKUR:Near Mehran View Plaza, Bunder Road, Sukkur.Contact # 071 - 9310152 REGIONAL OFFICE COMMERCIAL - LAHORE CENTRAL:5th Floor, MCB 15-Main, Gulberg, Jail Road, Lahore.Contact # 042 - 36041580 REGIONAL OFFICE COMMERCIAL - LAHORE CITY:5th Floor, MCB 15-Main, Gulberg, Jail Road, Lahore.Contact # 042 - 36041577 / 042 - 36041578 REGIONAL OFFICE COMMERCIAL - LAHORE EAST:5th Floor, MCB 15-Main, Gulberg, Jail Road, Lahore.Contact # 042 - 36041511REGIONAL OFFICE COMMERCIAL - LAHORE WEST:5th Floor, MCB 15-Main, Gulberg, Jail Road, Lahore.Contact # 042 - 36041552 / 042 - 36041553

REGIONAL OFFICE COMMERCIAL - FAISALABAD CITY:Bank Square, Circular Road, P.O. Box No.175, Faisalabad.Contact # 041 - 2604913REGIONAL OFFICE COMMERCIAL - SHEIKHUPURA (5142):MCB Building, Lahore-Sargodha Road, Sheikhupura.Contact # 056 - 3614242 / 056 - 3783828REGIONAL OFFICE COMMERCIAL GUJRANWALA:Trust Plaza, G.T. Road, Gujranwala.Contact # 055 - 3259806REGIONAL OFFICE COMMERCIAL - GUJRAT (5116):G.T. Road, Opp. Fruit Market, Gujrat.Contact # 053 - 3520649 / 053 - 3520347REGIONAL OFFICE COMMERCIAL - SIALKOT (5023):CC & I Building, Paris Road, Sialkot.Contact # 052 - 4272886 / 052 - 4265223

REGIONAL OFFICE COMMERCIAL - JHANG (5119):Nawaz Chowk Moza Civil Station, Jhang Saddar.Contact # 047 - 7620092 / 047 - 7613041REGIONAL OFFICE COMMERCIAL - MIANWALI (5129):PAF Road, Mianwali.Contact # 0459 - 235575 / 0459 - 230112REGIONAL OFFICE COMMERCIAL SARGODHA:400-Club Road, Sargodha.Contact # 048 - 3724130REGIONAL OFFICE COMMERCIAL - CHAKWAL (5008):BH-9/995, Girls College Road, Chakwal.Contact # 0543 - 541399REGIONAL OFFICE COMMERCIAL ISLAMABAD:MCB Building, Ist Floor, F-6/G-6, Jinnah Avenue 28, Blue Area, Islamabad.Contact # 051 - 2801012 REGIONAL OFFICE COMMERCIAL - RAWALPINDI (5140):Al-Gilan Building, Satellite Town, Murree Road, Rawalpindi.Contact # 051 - 4571265REGIONAL OFFICE COMMERCIAL - JHELUM (5120):10-Civil Line, Opposite District Nazim Office, Jhelum City.Contact # 0544 - 629504 REGIONAL OFFICE COMMERCIAL - MUZAFFARABAD A.K. (5017):Bank Square, Chatter Domel, Azad Kashmir.Contact # 05822 - 921257 REGIONAL OFFICE COMMERCIAL - KOHAT (5121):House No.101, Sector 4, Opposite Circuit House, Kohat Development Authority, Kohat.Contact # 0922 - 515220 / 0922 - 515225REGIONAL OFFICE COMMERCIAL - MARDAN (5128):1ST Floor, The Mall Branch, Mardan.Contact # 0937 - 870614REGIONAL OFFICE COMMERCIAL PESHAWAR:Cantonment Complex, Fish Plaza, Fakhr-e-Alam Road, Peshawar Cantt.Contact # 091 - 5275683REGIONAL OFFICE COMMERCIAL ABBOTTABAD:199, Kala Pul Murree Road, Abbottabad.Contact # 0992 - 344465REGIONAL OFFICE COMMERCIAL - ATTOCK (5108):1564, Afzal Shaheed Road, Attock Cantt.Contact # 057 - 2610041REGIONAL OFFICE COMMERCIAL - SWAT (5145):Main Bazar, Mingora, Swat.Contact # 0946 - 711772WHOLESALE BANKING OPERATIONS:2nd Floor, MCB 15 Main Gulberg, Lahore.Contact # 042 - 36041220 ISLAMIC BANKING GROUP:MCB Building, F-6, G-6, Blue Area, Jinnah Avenue, Islamabad.Contact # 051 - 2801273 PRIVILEGE BANKING (5373):Plot 11-C Khayaban-e-Shahbaz Lane No.1, DHA, Karachi.Contact # 02` - 35240417 / 021 - 111 000 - 111 Ext - 4618OVERSEAS OPERATION:Head of Corporate,Banking South & FIID3.4 Introduction of departments:For proper functioning of branches and the overall bank has been divided in different departments. These departments handle different jobs so that division of work is there for improvement of functions and also it is easy to control the situation. The general division in a branch is as follows:

1. Cash department 2. Deposit department3. Advances & credit department4. Remittance department5. Clearing department 6. Technology department7. Forign Exchange departmentCash Department:In cash department both deposits and withdrawals go side by side. This department deals with cash deposits and payments. This is very important department because cash is the most liquid asset and mostly frauds are made in this department, therefore, extra care is taken in this department .Mostly, cash area is grilled and its door is under supervision of the head of that department. All the books maintained in this department are checked by an officer. The following books are maintained by Cash Department:1. Receiving Cash Book 2. Paying Cash Book3. Token Book4. Scroll Book5. Cash Balance Book

1st step: When the cheque or any negotiable instrument is presented at counter for payment, it is entered in the token book and token is issued to the customer.2nd step: The token clerk and the Cashier make entries in the paying book and payment is made to payee. 3rd step:At the close of day, the Token Book and Paying Cashier Book are balanced.4th step:The consolidated figure of receipt and payment of cash is entered in the cash balance book and drawn closing balance of cash.Deposit department:The total deposits of MCB are growing since its inauguration but after privatization there is a sharp incline in over all deposits of the bank. The increase in deposits is also a cause of increase on total number of accounts; bank has progressed in both aspects.TYPES OF DEPOSITS:1. CURRENT ACCOUNT2. PLS ACCOUNT3. PLS 365 GOLD4. KHUSHALI BACHAT Account5. Khaunm Bachat Scheme6. Term Deposits Receipts

CURRENT ACCOUNT:In this type of accounts the client is allowed to deposit or withdraw money as and when he/she likes. This type of accounts basically opened by the businessman. There are no restrictions on getting money out of account on daily basis. Bank impose charges on maintain such type of account but there is no gain on such type of account. And there is no compulsory Zakat deduction policy.Minimum account balance should be 1000/.PLS saving Account:This type of account are basically are opened by the ordinary person who want to deposit his saving. Minimum balance is required is 1000/.PLS account holder can withdraw the money twice in a week. In case of the withdrawal of a big amount than 7 days before withdrawal notice is given to the organization. Zakat & other withholding taxes are deducted as per rules of the government.KHUSHALI BACHAT ACCOUNT:This is the advance type of the PLS account in which is minimum amount restriction is 2500/. The withdrawal restriction is only 4 time within the whole month. All other rules of the saving account is applicable.

PLS365 Gold:This is the advance type of the account. Minimum amount of maintain such type of the account is 300,000/ and there are no restriction on withdrawal of amount at any time as was there in KBL. No profit is made in case minimum amount is decreased above described limit.Khaunm Bachat Scheme:This is a type of term deposit, in this type of deposit an account is deposited and monthly payments of Rs. 1000/- are made by the account holder in this account for a minimum of 10 years. After the expiry of term, he receives his funds along with profit for the tenor.The distinctive feature of this product is that profit is calculated on monthly basis and charged to account on end of each half year. Zakat and withholding taxes are deducted as per rules only at the time of maturity while making payment to the customer.Term Deposits Receipts:This is a type of term deposit in which a receipt is issued for varying tenors ranging from 1 month to 5 years or more. Profit on these receipts is paid biannually. Different profit rates are applied to different type of TDRs. These receipts are encashable after expiry of the period for which they were issued.Function of the deposit account:The Deposit Department handles; The account opening, Profit payment, Accounting of all types of deposit schemes.

Advance Departments:Advances are the main source of earning of the bank because by making advance Bank deduct the amount as a expenses that are the revenue of the Bank.The advance department deals with three types of transaction: Loan facility Cash credits1. Loans:The lump sum amount is given to any person against any policy and some security against a prescribed interest that is the revenue of the bank. The amount is granted to a particular person that provide some security that required by the bank and bank make loan against such security.Requirements against loans:By Credibility, bank Judges the credibility of the client by his past bank record that this person is able to return the amount of loan.Feasibility report is on the running or proposed business of the client.Loans may be given against many things that may be used as a security.LOAN AGAINST PLEDGE OF STOCKS:In case of stock is used against loan than bank ascertain some policy that should be in stock for making loans, these policy are followings: Products should be readily and easily saleable Advance should be within the borrows security stocks

Loans against Gold:By keeping 40 t0 50 % margin the for estimating the value of the gold. In case of the part delivery of the payment of the loan amount than the part payment of the Gold would be held. In case of the full payment of the loans amount taken by the person than the whole Gold is getting by him.2. CASH CREDIT:Such cash account is opened in the name of the customer who wants to borrow amount from the bank. In order to avoid the danger of idle fund, the bank charges a certain rate of interest. The rate charged by the bank on cash credit in 46 paisa per thousand on daily basis. The credit is usually given against security of goods or merchandise.Remittance department:Remittance department functions are following:Demand Draft (DD)Demand draft is just like Chequess and issued when the customer wants to take cash with him personally. The idea behind is to avoid the risk and burden of currency notes in huge quantity. In case of transfer of money by drafts, the customer has to fill an application form.

Telegraphic Transfer (TT):This type of transfer is simple and old method that was used before the FTR. After filling the application form it is sent to the required bank which on receiving it immediately makes the payment.Mail Transfer(MT):Whenever a person wants to transfer from one account to another from one city branch to another city branch from one account to another than the remittance services is used. In case where the customer is not account holder of the bank then the customer will have to deposit the amount which he wants to transfer under Mail. Foreign Exchange department:

This department works like general banking department with but the thing that made it differene is the difference that it deals in foreign currencies like US ($) and Pound Sterling, Dutch Mark (DM), Euro and Japanese Yen (Y) etc.This department provide the following services; Foreign Currency Accounts Foreign Remittances Foreign Bills for Collection Selling of Government Certificates Imports & ExportsForeign Currency Accounts:These accounts can be operated foreign national and Pakistani National. Foreign accounts are convertible on floating rate available to the bank.

Foreign Remittances:Remittances to abroad through telegraphic transfer is remitted to the person to whom it is payable. For transferring money, Client must give specific reason for sending money abroad. Bank charges Rs.50/- as its commission

Foreign Bills for Collection:Cheques and drafts in any other foreign currency deposited by account holders are sent for collection. MCB credits the accounts of account holder when these bills are realized. Banks credit his account with the same rate of that day on which the Cheque was deposited with the bank. Bank charges Rs.100/- as its commission and plus telephone/fax charges if any.Selling of Government Certificates:Foreign exchange department also deal with different certificates which are issued by State bank of pakistan and by the GOVT. of Pakistan. Following are the certificate that are deals by the MCB; Dollar Bearer Certificate (DBC) Foreign Currency Bearer Certificate (FCBC) Foreign Exchange Bearer Certificate (FEBC)

Imports & Exports:MCB also deals with the all the individuals whoes are want enter into an import or export enterprise an individual with aprescribed manners.

Technology department:

Technological advancements are also affecting the banking industry. MCB is ahead of all other local banks in this field and now it is in a position to even compete with foreign banks. There all branches are fully computerized. MCB has also introduced the now concept of online banking.

Following are some technology advancement in MCB:

ATM Network:MCB has the largest ATM network in the country at the moment with almost one ATM at each online branch and also ATM terminals at International Airports. This network covers more than the 27 cities of Pakistan including the provincial capitals and large commercial cities of the country.Green Cards:These are ordinary cards with a maximum withdrawal facility of Rs. 10,000/- in a day. The annual fee for this card is Rs. 300/- only. Gold Cards:These are special cars with maximum withdrawal limit of Rs. 25000/- in a day. These cards are issued to the persons having more than Rs. 500000/- as their average balance. International Cards:These are issued in collaboration with Cirrus and are useable all over the world with maximum withdrawal facility according to the standards of Cirrus.

Clearing department:Clearing is a system by which banks exchange cheques and other negotiable instruments drawn on each other within a specified area and thereby securing the payment for its clients through the clearing house.A clearing house is a place where representative of all banks of the city get together and settle the receipts and payment of cheques drawn on each other. Its main purpose is offsetting the cross obligation in the form of cheques. The operation of clearing refers to the collection of cheques drawn on other bank.Process of clearing:

Slip is asked & filledCheque with slip given

Cheque along with slip checked, signed & received by officer

Entries in daybooks are made

Entries checked & verified by another officer after banking hours by officer

Cheques collected at the day end by Main Branchs Officials

Cheques are sent to respective banks next day after posting in computer by Main Branch

The same day not honored cheques are returned to Main Branch

The day after tomorrow the banks are informed about dishonored cheques

Provisional entries for returned cheques are debited again in both computer & daybooks

Party is informed about returned cheques through Phone or personal contact

Cheques are mailed through TCS in case of no personal contact the same day (If there is any availability)

Work Done by Me:-

4. Work done by me:I did my internship at MCB limited which is situated at Fatima Jinnah road sargodha for 6 weeks .My timings were 9am to 5pm under the supervision of Mr.Umar Bajwa(operation manager) and Mrs. Madahia(CSO).During my time span in branch I seek and performed many activities like account opening procedure, remittances and cheque book issuance, bills collection, vouching, clearing and credit granting procedures. During my internship training in the MCB as I early mentioned that I have worked in different departments & seats and learnt the followings.1. Fund Transfer Application (FTR):This application form is filled by the customer or applicant who wants to transfer money from one branch to another branch, for filling this form information is required by the bank like, name of payee, his account number and the name of the branch to whom FTR is sent as well as the depositors name, his account and address. Same application form is used for DD and PO. The old method of transferring money is TT and MT.TT or MT is the old name of FTR. In which through Telephone or by using post office services that process done. In case of T.T ( through telephone) Or M.T(Through Mail) Here the bank informs the beneficiary (to whom the money is sent ) through telephone or personal contact about the incoming cash.2. Account opening:Account opening and closing is the function of accounts departments. Banks customers may be individuals (Single or Joint), firms (partnership/proprietorship), Limited Companies, Charitable Institutions, Associations Educational Institutions or Local Bodies. INTRODUCTION OF opening account:Basically I think that the opening of an account is the establishment of a contractual relationship between the banker and the customer. By opening an account at a bank a person becomes a customer of a bank. Further I am going to express the basic requirements and steps involved in the opening of an account. There are certain criteria for opening an account and Before opening an account the bank ascertain whether the person who is going to open an account either the is able to met these requirements or not.Information Required for opening an account:When a customer wants to open an account, the bank officer gives to the applicant an application form. Applicant is supposed to provide the information which is asked in the application form. Form also requires the essential documents to be attached by the customer.Basically following information is required to open an account with MCB. Title of Account Full Name of Applicant Name of business Occupation Telephone No. Currency of account Nature of Business Introducers Name, Address & Signatures Special instruction regarding the account Initial Amount of the Deposit Signature of the applicant

Procedure of opening an account:The initial step of account opening is done in BT. BT is a software in which client number is generated. BT system require the information like, name of the person name, cnic number, address, date of birth, occupation when client number is generated in BT then account is open and no one can change this data. If you want to change the data you are supposed to provide solid reason with documentary evidence. You can change it in EOC .3. EOC system has two cat orgies:Kernel:When we update the account information in EOC kernel module we can see the the data of one branch at any other branch in all over Pakistan.(Basically updation is done in kernel and it provide a link between branches like .when account is updated in kernel module then you can easily approach the data of any account holder At any other branch of MCB in Pakistan.Deposit:As above stated deposit module is used to change the data which is entered in BT. Anyone cant change data in BT directly. But it can be change if customer provides solid reason to the bank with documentary evidence.4. Pay Orders:Pay orders are made for the payments of fees, tenders, or issue for the payments of dealings. These are required for the proof of payments made between the bank and customer in the favor of beneficiary. Pay orders are mostly used when client prefer non cash payment for any service or product sold. This remittance facility is providing to the general public as a whole.

5. Clearing:This facility is provided by the bank to the public or to the bank customers that if there account is established in MCB they can lodge cheque of any bankin Pakistan, which will be collected and credited to their respective accounts through the process of clearing. When people present the Cheque of any other bank for clearing, first enter the Cheque into the clearing register of the bank. Then this Cheque sent to the NIFT for clearing.NIFT (National institutional facilitation technologies) It is the department which is created by the SBP for clearing the checks of different banks.6. NADRA VERIFICATIONDuring my internship in MCB I also learned how to operate the software of NADRA online verification system. This verification is required by the bank to confirm the date of birth of the person and for making client number in BT. This verification is also attach with the account opening form.7. PAY-IN-SLIPWhen one customer wants to deposit cash in his personal account then customer is required to first fill this slip. This slip required the information regarding customer account number, name, amount which customer wants to deposits in his account and at the end signature of the customer.

8. ISSUANCE OF CHEQUE BOOKWhen a customer open an account in the bank cheque book is given to that client so that he can withdraw money/cash from his account. I have also learned to make Cheque book request by filling its different contents like serial number, date, account number, account type and account title. The signature of the customer is verified by the bank. I also issue cheque books to customers and after issuing this entry is recorded in the register and signature were taken from customer as a proof.The cheque book also contains a requisition slip for. This slip is used when old cheque book is finished, this slip must fill by the customer for the issuance of new cheque book. This slip is duly filled and signed by the customer. The signature of the customer is verified by the bank and new cheque book is issued to the customer. Cheque books are issued for these types of accounts Cheque book for Current account Cheque book for Profit & Loss Sharing Accounts (PLS). Cheque book for foreign accounts 8. Pay orders:Pay orders are made for the payment of fees, tender, or issued for the payment of dealings. These are required for the proof of payments made between the bank and customer in the favor of beneficiary. Pay orders are mostly used when customer prefer to non cash payment for any service or product sold. This remittance facility is providing to the general public as a whole. Balance SheetRupees in million

Assets2,0052,0062,00720082009

Cash23,66632,46539,68439,63238,775

Balance with Banks1,4696,5773,8084,0436,010

Lending to institutions9,99821,0821,0514,1003,000

Advances short term127,921144,593143,209146,313162,397

Other Assets5,46411,03117,86919,81023,041

Total current Assets168,518215,748205,621213,898233,223

Advances long term52,40553,64675,752115,82290,852

Investment - net69,48163,486113,08996,632167,134

Operating fix assets8,1829,05516,02417,26418,014

Deferred tax assets192172

Total long term assets 130,260126,359204,865229,718276,000

Total assets 298,778342,107410,486443,616509,223

Bills payable8,5377,08910,47910,5518,201

Borrowing short term20,37720,00032,2005,0211,675

Deposited and other a\c`s200,300200,462220,006268,502304,954

Other current liabilities8,61211,17211,72221,34515,818

Total current liabilities 237,826238,723274,407305,419330,648

Subordinate loans1,5991,597479

Deposits fixed29,04557,00072,092 61,680 62,651

Borrowing long term7,0003,9437,20717,64342,987

Deferred tax liabilities - -1,1804373,198

Total long term liabilities37,64462,54080,95879,760 108,836

Total debt s275,470301,263355,365385,179

439,484

Shared capital4,2655,4636,2826,2836,911

Reserve fund13,40824,66234,00036,76838,386

Un-appropriated profit2115,5315,1329,19315,778

Surplus on revaluation5,4245,1889,7066,1918,664

Share holder equity23,30840,84455,11958,43569,739

Total Liabilities& OE298,778342,107410,484 443614

509223

2009 2008 2007 2006 2005

ASSETSRS.M%RS.M%RS.M%RS.M%RS.M%

Cash& Balance WithtreasuryBanks38,775

8%39,6319%39,68410%32,4669%23,6668%

Balance with other Banks6,0101%4,0431%3,8081%6,5772%1,4690%

Lending to FincialInstitution3,0001%4,1001%1,0510%21,0826%9,9993%

Investment net167,13433%96,63222%113,08928%63,48619%69,48128%

Advances net253,24950%262,13559%218,96153%198,23958%180,32360%

Operating Fixed Assets18,0154%17,2644%16,0244%9,0543%8,1823%

Defferred Tax AssetsNet------1720%1920%

Other Assets net23,0405%19,1804%17,8694%11,0313%5,4642%

509,224100%443,616100%410,486100%342,108100%298,777100%

LIABILITIES

Bills Payable8,2012%10,5512%10,4793%7,0902%8,5373%

Borrowings44,6629%22,6645%39,40710%23,9437%27,3789%

Deposits & Other Accounts367,60572%330,18274%292,09871%257,46275%229,34577%

Sub Ordinated Loans----4790%1,5970%1,5981%

Deferred Tax Liabilities3,1971%4370%1,1800%----

Other Liabilities15,8193%21,3465%11,7223%11,1713%8,6123%

439,48486%385,18087%355,36687%301,26488%275,46992%

Net Assets69,74014%58,43613%55,12013%40,84412%23,3088%

Represented By

Share Capital6,9111%6,2831%6,2832%5,4632%4,2651%

Reserves38,3868%36,7698%34,0018%24,6627%13,4084%

Unappropriated Profit15,7793%9,1932%5,1311%4,5312%2110%

Surplus on Revaluation oOf Assets8,6642%6,1911%9,7062%5,1882%5,4242%

69,74014%58,43613%55,12013%40,84412%23,3088%

VERTICAL ANALYSIS OF BALANCE SHEET:

VERTICAL ANALYSIS OF PROFIT AND LOSS ACCOUNT: 2009 2008 2007 2006 2005

RS.M%RS.M%RS.M%RS.M%RS.M%

Markup/Return/Interest Earned51,616

90%40,04487%31,78784%25,77884%17,75676%

Markup/Retirn/Interest Expensed(15,841)-28%(11,561)-25%(7,866)-21%(4,535)-15%(2,781)-12%

Markup/Interest Incom35,77562%28,48362%23,92163%21,25369%14,97564%

Provisions & Write off(7,465)-13%(4,042)-9%(3,061)-8%(1,194)-4%(1,072)-5%

Net markup/Interest Income After Provision28,30949%24,44153%20,86055%20,05965%13,90359%

Non markup/Interest Income5,64310%5,79113%6,44817%4,99116%5,75424%

Non markup/Interest Expense(10,797)-19%(8,365)-18%(6,000)-16%(6,549)-21%(6,638)-28%

Profit Before Taxation23,15540%21,88848%21,30856%18,50160%13,01855%

Taxation(7,660)-13%(6,493)-14%(6,042)-16%(6,358)-21%(4,096)-17%

Profit After Taxation15,49527%15,37534%15,26640%12,14239%8,92238%

Horizontal Analysis of Balance Sheet:

2009 2008 2007 2006 2005

ASSETSRS.M%RS.M%RS.M%RS.M%RS.M%

Cash& Balance WithtreasuryBanks38,775

-239,6310%39,68422%32,46637%23,666-1%

Balance with other Banks6,01049%4,0436%3,808-42%6,577348%1,469-74%

Lending to FincialInstitution3,000-27%4,100290%1,051-95%21,082111%9,999-9%

Investment net167,13473%96,632-15%113,08978%63,486-9%69,4813%

Advances net253,249-3%262,13520%218,96110%198,23910%180,32331%

Operating Fixed Assets18,0154%17,2648%16,02477%9,05411%8,1822%

Defferred Tax AssetsNet------100%172-10%192100%

Other Assets net23,04016%19,18011%17,86962%11,031102%5,464-11%

509,22415%443,6168%410,48620%342,10815%298,77715%

LIABILITIES

Bills Payable8,201-22%10,5511%10,47948%7,090-17%8,53713%

Borrowings44,66297%22,664-4239,40765%23,943-13%27,378261%

Deposits & Other Accounts367,60511%330,18213%292,09813%257,46212%229,3454%

Sub Ordinated Loans----100%479-70%1,5970%1,5980%

Deferred Tax Liabilities3,197632%437-63%1,180100%----100%

Other Liabilities15,819-26%21,34682%11,7225%11,17130%8,61232%

439,48414%385,1808%355,36618%301,2649%275,46913%

Net Assets69,74019%58,4366%55,12035%40,84475%23,30860%

Represented By

Share Capital6,91110%6,2830%6,28315%5,46328%4,26527%

Reserves38,3864%36,7698%34,00138%24,66284%13,408137%

Unappropriated Profit15,77972%9,19379%5,131-7%4,5312526%21128%

Surplus on Revaluation oOf Assets8,66440%6,191-36%9,70687%5,188-4%5,4241%

69,74019%58,4366%55,12035%40,84475%23,30860%

Horizontal analysis of Profit and loss account: 2009 2008 2007 2006 2005

RS.M%RS.M%RS.M%RS.M%RS.M%

Markup/Return/Interest Earned51,616

29%40,04426%31,78723%25,77845%17,75695%

Markup/Retirn/Interest Expensed(15,841)37%(11,561)47%(7,866)74%(4,535)63%(2,781)35%

Markup/Interest Incom35,77526%28,48319%23,92113%21,25342%14,975113%

Provisions & Write off(7,465)85%(4,042)32%(3,061)156%(1,194)11%(1,072)150%

Net markup/Interest Income After Provision28,30916%24,44117%20,8604%20,05944%13,903111%

Non markup/Interest Income5,643-3%5,791-10%6,44829%4,991-13%5,75421%

Non markup/Interest Expense(10,797)29%(8,365)39%(6,000)-8%(6,549)-1%(6,638)-9%

Profit Before Taxation23,1556%21,8883%21,30815%18,50142%13,018221%

Taxation(7,660)18%(6,493)7%(6,042)-5%(6,358)55%(4,096)152%

Profit After Taxation15,4951%15,3751%15,26626%12,14236%8,922267%

Ratio Analysis:Years 20052006200720082009

Current Ratio 1.0681.11011.09591.1171.105

Cash Ratio0.090.110.120.100.09

Times Interest Earned Ratio4.6804.0882.7091.8911.461

Debt Ratio0.9210.8810.8660.8680.863

Working Capital 1827248331930204329492844270762644504104

Return on Equity64.87%45%37.66%31.486%27.35%

Return on Assets3.20%3.79%4.06%3.60%3.25%

Earning Per Share17.4319.3324.3022.2522.42

Return on Deposits0.07770.04990.05560.04940.0444

Cash/Deposits Ratio0.1030.1260.1360.1200.105

Total Assets to Networth12.588.377.457.597.30

Interest Exp./Total Exp. Ratio0.420.681.4151.3781.448

Interest Income//total Income Ratio

1.364

1.393

1.492

1.831

2.229

Net Profit margin50.25%47.10%48.03%38.39%30.02%

Average Profit Per Branch13674.881318612.3440620768.065320629.7792521419.93062

Current Ratio:Current Assets/Current LiabilitiesRatio for 2005 = 285126629 / 266854146 = 1.068Ratio for 2006 = 322022637 / 290092433 = 1.1101Ratio for 2007 = 376592633 / 343643349 = 1.0959Ratio for 2008 = 406541695 / 363834069 = 1.117Ratio for 2009 = 468168736 / 423664632 = 1.105Interpretation: Current ratio is used to measure the ability of enterprise to meet its current liabilities out of current assets. Increase in current ratio shows that firm is able to cover its current liabilities. The standard current ratio is 2:1.From 2005 to 2009 that means that firm have a sufficient resources to fulfill the liabilities over assets.

Cash Ratio:

Cash/Current LiabilitiesRatio for 2005= 23665549/ 266854146 = 0.09Ratio for 2006 = 32465976 / 290092433 = 0.11Ratio for 2007= 39683883/ 343643349 = 0.12Ratio for 2008 = 39631172/ 363834069 = 0.10Ratio for 2009 = 38774871/ 423664632 = 0.09

INTERPRETATION: Cash ratio increased during period of 2005-2007. From 2005 to 2009 cash ratio increased but it indicates decrease in 2005. That situation is satisfactory. Ratio for 2005 = 13018487/ 2781468= 4.680Interest Converge Ratio:Earnings before income tax/Interest ExpensesRatio for 2006 = 18500670/ 4525359 = 4.088Ratio for 2007 = 21308035/ 7865533 = 2.709Ratio for 2008 = 21867566/ 11560740= 1.891Ratio for 2009 = 23154945/ 15841463= 1.461INTERPRETATION The time interest earned ratio reflects that earning can cover interest expense From 2005-09 this ratio shows decline which shows that since less earnings ratio are available to meet interest charges.The situation is unsatisfactory.DEBT RATIO :Total debt/Total assets Ratio for 2005= 275046484 / 298780780 = 0.921Ratio for 2006= 301263929 / 342108243 = 0.881Ratio for 2007= 355365842 / 410485517 = 0.866Ratio for 2008= 385179850 / 443615904 = 0.868Ratio for 2009= 439483714 / 509223727 = 0.863INTERPRETATION: This ratio compare to total liabilities to total Assets. Debit ratio shows the % of the total funds obtained from creditors. High ratio shows the greater degree of indebtednesses low ratio shows the low degree of indebtednesses. MCB has low ratio from 2005-09 which is satisfactory in nature.Working Capital:Current assets - Current liabilitiesRatio for 2005=285126629 266854146 = 18272483Ratio for 2006=322022637 290092433 = 31930204Ratio for 2007=376592633 343643349 = 32949284Ratio for 2008=406541695 363834069 = 42707626Ratio for 2009=468168736 423664632 = 44504104INTERPRETATION: Working capital shows that organization is better able to meet short term obligations. Increasing from 2005-09 in working capitals which are positive sign.Return on Equity Ratio:Net profit/Average shareholder Equity * 100Ratio for 2005 = 8922415 / 137543009.91 X 100= 64.87%Ratio for 2006 = 12,142398/ 26983601 X 100 = 45 %Ratio for 2007 = 15,265562/ 40535415.5 X 100 = 37.66%Ratio for 2008 = 15374600/ 48829510.5 X 100 = 31.486%Ratio for 2009 = 15495297/ 56660398.5 X 100 = 27.35%INTERPRETATION The return on equity measures the rate of return earned on the shareholder investment. The high ratio is best to mantainaind stockholder interest. The ratio of MCB is showing decreasing trend that is not satisfactory.Return on Assets:Net profit after tax/Average total Asset *100Ratio for 2005 = 8,922415 / 278825468.8 X 100= 3.20%Ratio for 2006 = 12, 142398/ 320444512 X 100 = 3.79%Ratio for 2007 = 15, 265562/ 376296880 X 100 = 4.06%Ratio for 2008 = 15374600/ 427050710.5 X 100 = 3.60%Ratio for 2009 = 15495297/ 476419815.5 X 100 = 3.25%INTERPRETATION This ratio measures the profitability per rupee of investment in assets. It indicates the efficiency that management use its available resources to generate income. 2008 and 2009 decline the ratio that is UN satisfactory

EARNING PER SHARE:Net Profit/No of sharesRatio for 2005 = 8,922415 / 511839242= 17.34Ratio for 2006 = 12142398/ 628276843 = 19.33Ratio for 2007 = 15265562/ 628276843 = 24.30Ratio for 2008 = 15374600/ 691104527 = 22.25Ratio for 2009 = 15495297/ 691104527 = 22.42

INTERPRETATION Earnings per share indicate the earnings per each common share. Earnings per share are a useful indicator of the company as well as of the dividends that may be expected. MCB is showing high ratio during 2007 and it may be due to high profit but in next year it is showing decreasing trend.s

RETURN ON DEPOSITS:Income after tax/Average DepositsRatio for 2005 = 8,922415 / 114781479 = 0.0777Ratio for 2006 = 12142398/ 243401864 = 0.0499Ratio for 2007 = 15265562/ 274779952 = 0.0556Ratio for 2008 = 15374600/ 311139845 = 0.0494Ratio for 2009 = 15495297/ 348893167.5 = 0.0444INTERPRETATION This ratio measures the returns on deposit after paying the income tax. Increasing in Ration is a good element that shows that organization is in good position. MCB ratio is decreasing year by year that is not satisfactory.CASH TO DEPOSITS RATIO:Cash/DepositsRatio for 2005 = 23665549/ 229341890 = 0.103Ratio for 2006 = 32465976/ 257461838 = 0.126Ratio for 2007 = 39683883/ 292098066 = 0.136Ratio for 2008 = 39631172/ 330181624 = 0.12Ratio for 2009 = 38774871/ 367604711 = 0.105INTERPRETATION This ratio shows how much cash is available against deposit. The standard ratio is 0.25:1 MCB Position is not so good. Because its ratio shows the % lower than the standards. MCB ratio has a mix trend so we can say that the MCB is not satisfactory.TOTAL ASSETS TO NET WORTHTotal Asset/Net worth Ratio for 2005 = 298780780/ 23734296 = 12.58Ratio for 2006 = 342108243/ 40844314 = 8.37Ratio for 2007 = 410485517/ 55119675 = 7.45Ratio for 2008 = 443615904/ 58436054 = 7.59Ratio for 2009 = 509223727/ 69740013 = 7.30INTERPRETATION This ratio shows how much assets are available against net worth MCB is showing the decreasing trend in total asset ratio. MCB ratio decreasing year by year so we can say that MCB position is satisfactory. Its may be happened due to certain problem;Example: Share capital or retained earnINTEREST EXP.TOTOTAL EXP.RATIO:

Interest Expenses/Total ExpensesRatio for 2005 = 2781468/ 6565591 = 0.42Ratio for 2006 = 4525359/ 6560711 = 0.68Ratio for 2007 = 7865533/ 5559267 = 1.415Ratio for 2008 = 11560740/ 8387837 = 1.378Ratio for 2009 = 15841463/ 10940163 = 1.448INTERPRETATION: A low interest exp to total exp ratio is better in any organization. MCB ration instead of deceasing showing the rising trend. It means interest expenses are increasing as compare to the other expenses.

INTEREST INCOME TO TOTAL INCOME RATIOInterest earned/Income before taxRatio for 2005 = 17756232/ 13018487 = 1.364Ratio for 2006 = 25778061/ 18500670 = 1.393Ratio for 2007 = 31786595/ 21308035 = 1.2Ratio for 2008 = 40043824/ 21867566 = 1.831Ratio for 2009 = 51616007/ 23154945 = 2.229INTERPRTATION This ratio is use to measures how much portion of total income consist of interest income. MCB has a Mix trend. It decreases d which means which shows poor performance of the MCB. So we can say that the MCB position is satisfactory.

Net Profit Margin Ratio:Net profit tax/Net revenue*100Ratio for 2005 = 8922415/ 17,756232 X 100 = 50.25%Ratio for 2006 = 12142398/ 25778061 X100 = 47.10%Ratio for 2007 = 15265562/ 31786595 X100 = 48.03%Ratio for 2008 = 15374600/ 40043824 X100 = 38.39%Ratio for 2009 = 15495297/ 51616007 X100 = 30.0INTERPRETATION: This ratio is used to measure the profitability on sales after paying the tax and income tax Expenses. MCB ratio decreasing year by year that shows that MCB position in this ratio is not so good. It may be due to low markup income.Average Profit per share:Income before tax/No. of branches Ratio for 2005 =13018487/ 952 = 13674.8813Ratio for 2006 = 18500670/ 994 = 18612.34406Ratio for 2007 = 21308035/ 1026 = 20768.0653Ratio for 2008 = 21867566/ 1060 = 20629.77925Ratio for 2009 = 23154945/ 1081 = 21419.93062INTERPRETATION It measures the average profit earn by each branch. This ratio showing the increasing trend which is positive Sign. So we can say that Organization or MCB has a good performance.Conclusion:After detail discussion of ratio analysis and calculating the all ratios now we are able to final conclude the financial position of the MCB.In this analysis, overall leverage position of MCB is good as compare to other banks. Profitability analysis is also better as compare to bank Alfalah.The effective control of cost of funds and operating and administrative expenses has resulted in continuously growing trend in profit margin.The bank average collection period has dropped which shows the efficiency of the bank.MCB is better ongoing organization that can be excellent by adopting best rules and policy.

SWOT ANALYSIS:-Strength of the MCB:1. Mainly operated by Manshas group.2. Offered a wide variety of services to its customers and has a customer bank of round about 4 million.3. MCB working in Pakistan over 60 years of success.4. Muslim Commercial Bank (MCB) falls under the category of big five domestic commercial bank.5. Strong Commercial relationship.6. Asset utilization is good.7. Currently in a good financial position (few debts, etc)8. Skilled workforce (little training required)9. Company name recognized on a National/Regional10. Excellent transport links (ease of access to/from the Company)Weaknesses:1. Promotion on sincerely basis2. Competent staff unwilling to serve in the audit due to absence of rotation policy.3. Lack of decentralization 4. Less job satisfaction of the employees.5. Actuarial gains leads to boost the administrative expenses due to decreasing discount rates.6. Customer facing of problem of NADRA verification while opening their accounts because its time consuming. Opportunities: 1. Low exposure to customer banking providing opportunity to explore the segment.2. Emergence of Islamic banking in the country and MCB increasing its Islamic Banking operation.3. SBP policy to allow Islamic banking business separately.4. Free staff training facilities offered.5. Good financial position creating a good reputation for future bank loans and borrowings6. Skilled workforce means that they can be moved and trained into other areas of the business7. Competitor going bankrupt Threats:1. Current economic crunch2. Current instability3. Strong competition4. Razing deposit rates 5. Decline in public and private credit due to tight monetary policy.6. Participation of foreign banks in local market that can hurt the market share. 7. Large and increasing competition8. Rising cost of Wages (Basic wage, etc)Conclusion:According to my perception during my time span in MCB it has strong management in many areas like it customer oriented organization not class oriented.MCB has a good working environment as well as comfortable. Behavior of senior executive of bank is very polite and they are caring about the individuals career and their growth. Customers of MCB are facilitated individually. Same kind of behavior and attention is given to all the customers. Proper guidance and information regarding policies and accounts are provided to the customers so that they know easily without any technical problem all the customers are asked to fill a suggestion form and the standards of the bank are improved through them.All departments of MCB have computerized system with latest technology enhancement that makes it possible to go in the race of competitive edge. MCB is the first bank of the Pakistan that is privatize after the foundation of the Pakistan and its introduced the computerized system and other latest technology.MCB has a strong commercial relationship due to it is a customer oriented bank that make it possible to enhance their branches in all rural areas for the success of the Pakistan.

RECOMMENDATIONS: Recruitments should be strictly on merit basis and induction should be after proper and extensive training. IT drawbacks impose a negative impression of any organization and the MCB IT system has a slow process due to heavy transaction so that MCB management should focus on this draw back because today is the race of technology. Foreign branches should be opened in order to capture the international market and to earn international repute for the bank Proper attention should be paid to upgrade customer services. Bank should adopt the global organizational banking structure to meet the international standards of banking sector.

Staff turnover particularly of trained staff result in financial and other losses. The amount spent by the bank on employment, induction and training of outgoing officers constitutes to beat till another officer should ready prove this work. The exodus of bank officer in the past has worsened the situation. Most of the bank employees, are sticking to one seat only with the result that they become master of one particular job and loose 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.

Limitation: Time constraints are the big limitation of this report because the time was not enough to detail explain the MCB analysis. Non availability of the proper information Non availability of the confidential documentation from MCB due to working as an internee. As an internee we just can see the Rosy picture of the organization not permitted to go the security and management areas.

BIBLIOGRAPHY:http://www.mcb.com.pk/psc/online_services/atm_card.asphttp://www.fool.com/money/banking/banking.htmhttp://en.wikipedia.org/wiki/List_of_banks_in_Pakistanhttp://www.pakistanbanks.org/http://banking.einnews.com/news/bank-international-monetary-fund

MR, Umar BajwaOperation Manager of MCB Fatima Jinnah Branch

GLOSSARY: D.F: Demand Finance C.A: Current Account NIFT National Institutional Facilitation Technologies LTD. BT Branch Teller FTR Fund transfer receipt MT Mail transfer NADRA National identification and registration authority