Equation 1

MCB
Bank
Ltd.
1
 Presentation
ON
MCB BANK LTD

Presented By:
Sara Javaid M10BBA036

Azra Manzoor M10BBA014

Zainab Tanveer M10BBA066

2
 TABLE OF CONTENTS

Decription Page No
Introduction
History 5
Vission & Mission 7
Vilues 9
Awards 10

Business Stretegy 11

Corporate Profile 15

Organization Structure 18

Management Hierarche 19

Mcb Tower 20

Products & Services

Deposits 21
Advances 34
Services 37

Analysis
Financial Analysis 41
SWOT Analysis 44
PEST Anlysis 50

Reccomendations 52

Conclusion 55

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Introduction

MCB is one of the leading banks of Pakistan with a deposit base of Rs.
431 Billion and total assets over Rs. 550 Billion. A nationwide distribution
network of over 1,100 branches
Public (KSE:[2]) Type
including 11 Islamic Banking
Banking Industry
and over 550 ATMs in the Capital Markets

1947 Founded
market. MCB has the 4th
Registered Office: Headquarters
largest branch network and Islamabad, Principal
Office: Karachi
the largest ATM network in Pakistan
Pakistan Muslim Commercial
Mian Mohammad Key people
Bank Ltd. the third largest Mansha (Chairman)
commercial bank and the Loans, Credit Cards, Products
Savings, Consumer
largest private sector bank in .Banking etc
[Link] in 1947,
PKR 35.782 Billion Revenue
MCB soon earned the (2009)[1]

reputation of a solid and PKR 26.753 Billion Net income

(2009)[1]
conservative financial
USD 6.02 Billion Total assets
institution managed by [Link] Website

expatriate executives. In
1974, MCB was nationalized along with all other private sector banks.

During the last fifteen years, the Bank has concentrated on growth
through improving service quality, investment in technology and
4
 people, utilizing its extensive branch network, developing a large and
stable deposit base.

History
MCB Bank Limited was incorporated by the Adamjee Group on July 9,
1947, under the Indian Companies Act, VII of 1913 as a limited company.
The bank was established with a view to provide banking facilities to the
business community of the South Asia. The bank was nationalized in
1974 during the government of Zulfikar Ali Bhutto. This was the first
bank to be privatized in 1991 and the bank was purchased by a
consortium of Pakistani corporate groups led by Nishat Group. As of
June 2008, the Nishat Group owns a majority stake in the bank. The
president of the bank is M.U.A Usmani.

Founded in 1948, Nishat Group is one of the leading and most diversified
business groups in Pakistan. The group has strong presence in the most
important business sectors of the country such as banking, textile,
cement and insurance.

Mian Mohammad Mansha is the Chairman of the group (and also MCB)
and has played instrumental role in its success. In recognition of Mr.
Mansha’s contribution, the Government of Pakistan has conferred him
with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the
country.

Nationalization
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This institute was nationalized with other on January 1st, 1974. At that
time it had 506 branches and deposits amounting to Rs. 1,640 million.
Although. MCB has a reputation of a conservative bank but
nationalization also left its effects on this institute as well and by end of
year 1991 in which it was privatized the total number of branches were
1.287 and deposits amounting to as high as Rs. 35,029 million.

Privatization
When privatization policy was announced in 1990, MCB was the first to
be privatized upon recommendations of World Bank and IMF. The
reason for this choice was the better profitability condition of the
organization and less risky credit portfolio which made'' it a good choice
for investors. On April 8th, 1991, the management control was handed
over to National Group (the highest bidders). Initially only 26% of shares
were sold to private sector at Rs. 56 per share.

After Privatization
Ten years after privatization, MCB is now in a consolidation stage
designed to lock in the gains made in recent years and prepare the
groundwork for future growth. The bank hasrestructured its asset
portfolio and rationalized the cost structure in order to remain a low
cost producer.

After privatization, the growth in every department of the bank has been
observed. Following are some key developments:

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  Launching of different deposit schemes to increase saving level.
 Increased participation on foreign trade.
 Betterment of branches and staff service level.
 Extended use of information technology which is evident from
the fact that there are 768 fully automated branches, 243 online
branches (integrated networking),300 ATMS in 27 cities
nationwide and a MCB continuously innovate new product.

MCB BANK TODAY

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 growing tree evergreen, strong, and firmly rooted.

OUR VISION& MISSION

Vision Statement

To be the leading financial services provider, partnering

with our customers for a more prosperous and secure
future.

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Mission Statement

We are a team of committed professionals, providing

innovative and efficient financial solutions to create and
nurture long-term relationships with our customers. In
doing so, we ensure that our shareholders can invest with
confidence in us.

Monogram and slogan

MCB has also changed its monogram and slogan after
privatization. So the current monogram and slogan
trulyreflected and expense its mission vision and
philosophy.

Its current slogan is good banking getting even better.

While its monogram defects 3 things

1)Green color of the monogram shows character of

economy that is the growing ad flourishing day by
day.

2)Are of monogram shows Islamic style and approach.

3)Free shape of monogram is the symbol for safety and

shelter.

8
OURVALUES
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 customer’s 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.

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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.

Awards

Euro money Awards

 Best Bank in Pakistan2008
 Best Bank In Asia Award 2008
 Best Bank In Pakistan Award 2006
 Best Bank In Pakistan Award 2005

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  Best Bank In Pakistan Award 2004
 Best Bank In Pakistan Award 2003
 Best Bank In Pakistan Award 2001
 Best Domestic Bank Award 2000

Asia Money Award

 Best Domestic Bank in Pakistan2009
 Best Domestic Bank in Pakistan2008
 Best Domestic Commercial Bank Award 2005
 Best Domestic Commercial Bank Award 2004

Others
 The Asian Banker: Strongest Bank in Pakistan2010
 The Asian Banker: Leadership Achievement Award2010
 MMT: Best Bank Led MMT Service2010
 ICAP / ICMAP: BCR Award 2010

 SAFA: Certificate of Merit Award2010

 The Asset: Best Domestic Bank in Pakistan2009

Business Strategy
The business strategy of MCB is to provide financial solutions to major
segments of its customer base, namely retail and corporate. Separate
business groups have been set up to ensure a more focused approach in
satisfying the diversified customer segments. The Bank has also
established an Islamic Banking unit to offer Shariah compliant products

11
and services, with dedicated Islamic banking branches in six cities. The
plan for future is to further realize the capacity of Islamic Financial
Systems and to bring Shariah compliant network parallel to current
retail network of traditional banking.

Wholesale Banking Group caters to the top tier local and multinational
companies. As a result of organizational restructuring, including
reinvigorating Investment Banking and beefing up relationship teams,
the Group is in line with the industry’s best practices. MCB has closed
some large deals and is currently working on a number of large
transactions including advisory business. It is a strong competitor in
cash management and structured financing activities.

InformationTechnology
MCB’s name is synonymous with ATM facility in the countryas the Bank
has been a pioneer in introducing 24-hour cash withdrawal facility and
on-screen transactions. MCB ATM/Debit Card, the most multifunctional
card of the country, with its collaboration with Cirrus and Maestro can
be used globally. The Bank has also deployed an extensive network of
Point of Sale Terminals at thousands of merchants in major cities of the
country, thus having the privilege of being the first and only bank with
full-fledged card acquiring and issuing systems. The Bank also pioneered
the idea of sharing its ATM network with other banks by establishing an
electronic platform for enhanced network accessibility and secure on-

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line transactions. This step has also played an important role in
interconnecting all ATMs of the country.

MCB mobile banking was launched in mid-CY09, and volumes on the

platform have already crossed the PKR 1 billion mark. While the services
are free for now, going forward this entails improvement in fee income
as well as generation of sticky zero-cost deposits.

Technological leadership has helped the Bank in providing multiple

delivery channels to the customers and satisfying their needs anytime &
anywhere in the world. MCB offers the most comprehensive Internet
banking solution in the country. MCB Virtual-Internet Banking with its
wide ranging banking solutions for the customers for individual as well
as corporate customers has become the most preferred Internet banking
solution in the country.

MCB & May bank

In 2005, the management of the bank abbreviated its name from Muslim
Commercial Bank Limited to MCB Bank Limited to explore international
markets; they were facing resistance due to the word Muslim especially
from Western Countries to avail license. In 2008 the head office of MCB
was shifted from Karachi to Lahore in a newly constructed building,

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namely MCB House located at ShareaGhous-ul-Azam, commonly known
as Jail Road.

The MCB Tower in Karachi serves as the MCB's headquarters, and is

also the tallest building in Pakistan. MCB, advised by Merrill Lynch,

became the fourth Pakistani Company (the other three being Hubco,
PTCL and Chakwal cement - they all have been delisted) to list on the
London Stock Exchange when it raised US$150 million global
depositary receipts.

In May 2008 Malaysian bank, Maybank and MCB signed an agreement,

whereby Maybank acquired 20% of the ordinary shares in MCB from
Nishat Group. The acquisition is in-line with Maybank’s strategy, as
Malaysia’s financial services leader in the region, to Kutay da puterbuild
its presence in key growth markets across the region. It also paves the
way for MCB, one of Pakistan’s premier financial services groups, to
engage Maybank as its exclusive foreign commercial bank strategic
partner.

Maybank initially acquired from Nishat Group 94,241,527 ordinary

shares in MCB, representing a 15% stake in the Bank, for a cash price of
PKR470 per share. The total consideration paid was approximately
US$686 million. The purchase price represented an 11.4% premium to
MCB’s closing share price of PKR 422 on May 2, 2008, and a premium of
12.9% to the average closing share price for MCB over the 30 trading
days immediately preceding the date of this announcement.

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Based on MCB’s December 31, 2007 audited book value, the purchase
price represents an implied price to book value multiple of 5.13x, a price
to 2007 earnings multiple of 18.0x and a price to 2008 earnings multiple
of 15.2x. In July 2008 Maybank exercised its right to increase its stake to
20%.

The stake in MCB allows Maybank the right to appoint two Directors to
represent its interest on the Board of MCB. One of these Directors was
to be appointed immediately and the second Director will be appointed
upon completion of the term of the existing Board, scheduled to be on
March 27, 2009.

As part of the transaction, Maybank and MCB are also expected to enter
into a business cooperation arrangement which will include, among
others, Islamic banking, retail banking, credit cards, asset management
and SME banking. Leveraging Maybank’s leadership and experience in
these segments coupled with MCB’s brand and broad distribution
network, Maybank and MCB believe that significant revenue synergies
can be attained. Both Maybank and MCB are also expected to benefit
from increased business ties and trade flows between Pakistan and
Malaysia.

Cooperate profile

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Board of Directors:

Mian Mohammad Mansha Chairman

Mr. S. M. Muneer Vice Chairman

Mr. Tariq Rafi Member

Mr. Shahzad Saleem Member

Mr. Sarmad Amin Member

Dr. Muhammad Yaqub Member

Mian Raza Mansha Member

Dato' Mohammed Member

Hussein

Mr. Aftab Ahmad Khan Member

Mr. Abdul Farid Bin Alias Member

Mian Umer Mansha Member

Mr. Muhammad Ali Zeb Member

Mr. M.U.A. Usmani President/ CEO

Audit Committee:

Mr. Tariq Rafi Chairman

Dr. Muhammad Yaqub Member

Dato' Mohammed
Member
Hussein

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Mr. Aftab Ahmad Khan Member

Mr. Muhammad Ali Zeb Member

Mr. Malik Abdul Waheed Member

Human Resources Committee:

Mian Mohammad
Chairman
Mansha

Dr. Muhammad Yaqub Member

Mian Raza Mansha Member

Mr. Shahzad Saleemn Member

Mr. Atif Bajwa Member

Chief Financial Officer

 
[Link] Zafar Siddiqi

Principal Office:
MCB 15 Main Gulberg, Lahore  

Registrar’s and Share Registration Office:

MCB 15 Main Gulberg, Lahore  

M/s. THK Associates (Pvt.) Limited  

State Life Building No.3,  

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Dr. Ziauddin Ahmed Road,  

Karachi  

Organization Structure 

Recently the organizational structure is redesigned as follows:

Chairman

Mian Muhammad Mansha

Vice Chairman

Mr. S. M. Muneer

President

Mr. Atif Bajwa

Corporate Banking Commercial Banking Consumer Banking

Group Head Group Head Group Head

Hussein Iftikhar Shoaib Qureshi Haroon Bashir

Hussein Iftikhar Shoaib Qureshi Haroon Bashir

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MANAGEMENT HERIARCHY

President

Vice president

Executive vice president

SENIOR VICE PRESIDENT

Vice president

Assistant vice president

Officers grade 1,2,3

Assistants

Cashier

Peon

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A Vision of the Future

The modern, urbane architecture and intelligent design of MCB Tower

reflect MCB’s pioneering role in the banking arena, providing cutting
edge, innovative banking solution- leading with an
edge of technology.

Setting Ever-Higher Standards

Towering at 116 meters, with 29 levels and 3 basements,

MCB tower is the tallest building in Pakistan. It is a
sound representation of MCB’s leadership position in
the banking sector, testified by four “best bank in Pakistan” Euro money
Awards in five years.

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 Strong Foundation
MCB tower is a manifestation of MCB’s strong foundation with over 50
years of banking excellence and represents our commitment to always
stay a step ahead

Understanding At all levels

From individual customers to corporate and commercial clients, MCB’s
flexible solutions reach out to a diversified audience -reflected in all
levels of MCB tower.

MCB offered many products for its customers, in which some products
are following:

 Deposits

 Advances

 Services

Deposits
In deposits some basic accounts are include:

 Current Account
i. Ianat current account

ii. Current Life account

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 Saving Account

i. AlMakhraj Saving Account

ii. Foreign Currency Savings Account

iii. Saving 365 Gold

 Term Deposits
 FCY Accounts
 Call Deposits
Current Account
MCB Bank offers a variety of current accounts to cater to the everyday
transactional needs of various customers. These accounts ensure ease
andfreedom to bank from any of the 1100+ branches across the country.
The different accounts include: he Basic Banking Account that has no
minimum balance; Business Account offering free online transactions,
Demand Drafts, Pay Orders and lots more to meet the day to day
business requirements; Current Life Account which offers the security of
life insurance free of cost; and for all others, the conventional Current
Account.

KEY POINTS:
Individuals, Firms, Companies, Clubs and Societies etc. can open
this account.

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 Low minimum balance requirement i.e. 10000/-.

Unlimited cash deposits and cash withdrawals facility.

Free of cost account statement dispatched on half yearly.

MCB Smart Card facility.

CURRENT LIFE ACCOUNT

1. The coverage you need for the lifeyou lead.

2. MCB Current Life gives you the peace of mind of

comprehensive life insurance in a current account and fits right
into your lifestyle.

KEY POINTS

1. Open a Current Life Account with just Rs.1,000.

2. Free comprehensive life insurance coverage.*

3. No joining fees on Debit/ATM Card.

4. 50% discount of Debit Card Annual Fee at the time of renewal.

5. Low monthly average balance requirement.

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 6. Unlimited free cash deposits/withdrawals across hundreds of
branch

MCB ACCESS:
Branches, on your way
 
Hundreds of 9-5 full day banking branches (including
Saturdays).
Network of over a thousand branches, and hundreds of
online branches, at convenient locations.
 
ATMs (Access 24/7)
 
Over 350 MCB ATMs.
Over 3000 MNET/ 1-LINK ATMs.
 
Call Center, at your fingertips (Access 24/7)
 
General Inquiry e.g. ATM Locations, Product
Information etc.
Financial Services e.g. Account Balance Inquiry, Debit
Card, Transaction detail, bill payments etc.
Non-financial Services e.g. Internet Banking activation
etc.
 
Internet Banking, virtually anywhere (Access 24/7)
 
Bill payments and Funds Transfer.
Bank Account Statement and Cheque Book Request.

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SMS Banking, on the go (Access 24/7)
 
Balance Inquiry details.
Last 4 transaction details.
 

IANAT Current Account

For customers who are looking for a checking

account that gives them the ease of doing
unrestricted number of transactions, we offer Al-
Makhraj Ianat Account. With a minimum of only
Rs. 10,000, Ianat Account may be opened. With all
the features and facilities that this product offers, it
is highly recommended for management of
business funds.

Details of the product are as follows:

 
1 Minimum Initial Deposit: Rs. 10,000
2 Product to be availed by: Individuals & Joint
Account Holders (Local), Companies, Corporate,
Trusts, etc.
3 Additional Features:
  a Personalized Cheque books
  b Withdrawal Facility from ATM/ Debit Card
  c Online deposit as per bank's policy
  d Debit card; Utilities payment via ATM card
  e Virtual Banking
  f Call center facilities
Free bank balance certificates (once in 6
  g
months)
Taking stop payment/ hold mail/ standing
  h
instructions
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 Issuance of duplicate statement of account (as
  i
per Schedule of Charges)
Choice of statement frequency (as per
  j
Schedule of Charges)
No penalty if balance falls below minimum
  k
level.
4 Banking Network: IBD's Branch only
 

BASIC BANKING ACCOUNT

Key Points
Open a Basic Banking Account with as little as Rs.1000/- only.
No minimum balance maintenance requirement.
No monthly account maintenance charges.
Two free deposits per month (including cash and clearing).*
Two free withdrawals per month (including cash and clearing).*
Unlimited free withdrawal transactions through MCB's ATMs.
Unlimited transactions through Virtual Banking.
Use your MCB SmartCard to shop at thousands of merchant outlets
across Pakistan

SAVING ACCOUNT
A habit worth getting into.
MCB Bank offers a wide array of savings products that suit short term
growth & transactional needs. Our savings accounts offer attractive
profit rates as well as flexibility to transact. Savings Extra is targeted for
customers having Rs. 5 million + deposit, 365 Gold offers profit rate on
daily balance while PLS savings has a lower minimum balance
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requirement. In addition, two unique products: Smart Savings and
Savings Maximizer are special saving accounts run solely via debit cards

and other remote banking channels, offering a very competitive rate to

both high and low end savers.

KEY POINTS:
 Based on profit and loss sharing basis.

 Profit paid into account every six months.

 Unlimited cash deposit and cash withdrawals.

 Free of cost account statement is dispatched on half yearly basis.

 
SAVINGS 365 GOLD
 
The higher you save, the higher you
go.
MCB Savings 365 Gold Account offers
you a wide range of attractive profit
 
rates.
 
 

KEY POINTS
 
The higher your balance, the higher your rate.

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 Profit calculated on daily basis.
Profit paid into your account every month.
Open your account with Rs. 500,000/- only.

Cash deposit and withdrawal facility at hundreds of

branches nationwide.

Al-Makhraj Saving Account

The minimum deposit requirement for Al-Makhraj Saving Account is

only Rs. 5000 and profits can be earned 6-monthly. Other features
associated with this product are as follows:

1 Minimum Initial Deposit: Rs. 5000

2 Islamic Tools used in designing the product: Mudaraba/ Musharaka
3 Product to be availed by: Individuals & Joint Account Holders
(Local) Companies, Corporate, Trusts, etc
4 Special Advantages:
  For Customer = Bi-Annual Profit Payment; Withdrawal
Facility
Shariah = Meets requirements for Shariah Compliance
5 Additional Features:
  a Personalized Cheque books
b Withdrawal Facility from ATM/ Debit Card  

Online deposit as per bank's policy  

d Virtual Banking  
e Call Centers Facilities  
f 6-monthly profit payment on the basis of monthly  

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 declared rates
Issuance of duplicate statement of account (as per
g  
SOBC)
h Free bank balance certificates (once in 6 months)  
Taking stop payment/ hold mail/ standing
i  
instructions
j No penalty if balance falls below minimum level.  
Personal financial consultancy services (regarding
k  
Shariah Compliant products)
l Utility bill payment via ATM card  
Choice of statement frequency (as per Schedule of
m  
Charges)

 Foreign Currency Savings Account

MCB’s Foreign Currency Savings Account offers you attractive returns

on your Foreign Currency investment.

You can invest in any of the four currencies i.e. US Dollar, UK Pound
Sterling, Japanese Yen or Euro

Open for as little as US$ 500 or equivalent.

Unlimited transactions at your branch.
Free Foreign Currency cash deposit and withdrawal facility.
Rate of Return directly linked with international market.

Profit paid into your account every six months.

Foreign Remittances facility available.
Countrywide network of Foreign Currency Branches.
Cash withdrawal in PKR equivalent.
 

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Al Makhraj Term Deposit

A minimum of Rs. 25,000 is required for investment in Al-

Makhraj Term Deposit. Choice of tenors can be made from
a list of options namely 1, 3 & 6 months, 1 or 2years. Profit
payment options available to customers are monthly,
quarterly and/ or at maturity.
 
Details of the product are as follows:
 
1 Minimum Deposit: Rs. 25,000
Islamic Tools used in designing the product: Mudaraba/
2
Musharaka
3 Tenors Available:1 mth, 3 mth, 6 mth, 1 yr or 2 yrs
4 Product to be availed by: Individuals & Joint Account
Holders (Local), Companies, Corporate, Trusts, etc.
5 Special Advantages:
For Customers = Profit Payment Options customized to
suit needs of customers; Minimum Deposit
 
requirement’s lower than most banks so it is more
accessible/ affordable for people
 
Shariah = Meets requirements for Shariah Compliance
 
6 Additional Features:
  aCall center facilities
Taking hold mail/ standing instructions for profit
 b
payments etc.
Personal financial consultancy services (regarding
  c
Shariah Compliant products)
30
 
 
7 Frequency of Announcements: The first announcement
shall be made at the end of the month of December 2003.
8 Profit Payment Options: Monthly/ Quarterly/ At
Maturity (Monthly payment option to be made available
Busines
later in a few months’ time)
sWeightages: Different weightages based on tenors and
9
Account
profit payment options
Communication Process: Announcement every month
10
  on notice boards, and website
11 Banking Network: IBD's Branch only
   

KEY POINTS

Higher the balance, the higher the number of free

transactions.*
Open a Business Account with Rs.50,000 only.

Unlimited free cash deposit and withdrawal

facility at hundreds of branches nationwide.

FREE SERVICES
When you maintain average monthly balance of Rs.100,000
or above*
Demand Drafts/Pay Orders.
Cancellation for Demand Drafts/Pay

Orders.
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Cheque Book.
International ATM Gold Card.
FOREIGN CURRENCY ACCOUNT
Your International account, locally.
KEY POINTS:
 Open your account in US Dollar, UK Pound or Euro.

 Open for as little as US$ 500.

 Rate of Return directly linked with international market.

 Free foreign currency cash deposit and withdrawal.

Call Deposits
CALL DEPOSIT It is highly liquid instrument, it can be cashed at any
time when needed. This instrument bears no profit on it. It is mostly
used for the purpose of tenders.

UPCOMMING PRODUCTS

Diminishing Musharika Housing

Guarantee
Istisna cum Murabahah

Istisna Post Shipment

Advances
MCB OFFERED FOLLOOWING DIFFERENT ADVANCES:

 Running Finance

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  MCB Sarmaya Facility

 MCB Pyara Gher

 Car 4 U

 Instant financing

 Corporate Financing

 Easy Personal Financing

RUNNING FINANCE
 Running finance facility is provided to a customer allowing
withdrawals from their current account in excess of credit balance.

 It is not for long term finance needs.

 Customer makes adjustment once in a year

POSSIBLE SECURITY STRUCTURE

 Hypothecation of Current Assets

 Collateral /Property
 

BUSINESS SARMAYA FACILITY

Business Set…….Tau life set
 Financing up to 20 million or 70% of the value of

the house (collateral).

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  Pay back when you want.

 Markup has been recoveredon monthly basis.

MCB PYARA GHAR

MCB Pyara Ghar is an ideal home financing facility with options of home
purchase, construction and renovation. Financing available upto 20
years for amount up to Rs. 20 million.

KEY POINTS
 Financing up to 80% of the value of the house.

 Equal monthly installment.

 Period 2 to 20 Years.

 Option to buy, construct or renovate your house.

 Option for early payment.

 Lien mark in favor of the bank.

 Fast & Free processing of application

CAR 4 U

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Car financing and leasing at competitive rates with flexible options.
Car4u finances both semi-commercial and non-commercial vehicles for
personal and business use.

 Option for financing or leasing.

 Option for new as well as used cars.

 Financing up to Rs.25 lacs.

 Option for early repayment &Replacement loan.

 Only 20% down payment.

 Option to pay your 1st installmentafter 3 months.

Get a loan in an instant at any MCB branch. Offering same day financing
facility against liquid collateral at competitive pricing.

Providing access to diversified financing options including working

capital loans, term loans, trade finance services and investment banking.

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Personal loans for salaried individuals of reputed local and foreign
companies at rates tailored to customer's repayment capacity.

SERVICES
Mcb Bank provides these services for its customers:

The Largest network of over 315 on-line branches in the country and
growing. Providing customers with 24x7 real time on-line transaction
facilities.

The best protection for your valuables. Lockers of different capacities are
available nationwide.

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International remittances with a two-way messaging facility delivered at
your doorstep within 24 to 72 hours.

MCB Islamic banking provides Riba free and Shariah Compliant

solutions to various customer segments in a growing number of cities.
With the help of Sharia specialists, lawyers, & professional commercial
bankers, we have the best compliant products like Musharika,
Murabaha, Ijara and Istasana.

A local Point of Sale acquiring network facilitating acceptance of all

major card brands.

Cash withdrawal facility at over 900,000 ATMs worldwide.

   Convenience of shopping at over 5 million POS locations globally

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MCB, provides the convenience of banking on internet. You can access
your account anytime, anywhere & enjoy 24-hour access to all your
accounts at MCB.

Call now for answer to your queries about banking, ATM, mobile
banking, RTC, tele-banking services and MCB product information.

The nation's largest network of over 210 ATMs and growing. Get 24 hour
convenience of cash withdrawal, mini statement, bill payment and funds
transfer services.

Banking at your fingertips. Dial in anytime to get information regarding

balance and mini statements.

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MCB Network for Electronic Transactions is an electronic hub for ATM
sharing plus other touch points. The nation's largest operating switch
with the highest transaction volume.

A secure instrument of payment, offering CASH FREE convenience. It is

the most powerful Debit and ATM Card providing 24 hour direct access
to your bank account.

MCB Rupee Travellers Cheque

The most widely accepted way to pay cash for travel related purposes.
A safe and secure way to make payments nationwide.

Cash management services for corporate customers. Helps customers

substantially reduce their receivable collection time frame; improve cash
flow and business management.

MCB Full Day Banking

Enjoy the convenience of extended banking hours from 9am to 5am,
including Saturdays at MCB FULL Day Banking branches across the
country.

Bill Payments
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 MCB easy bill pay offers unmatched convenience to pay your utility and
mobile phone bills or re-charge your prepaid mobile phone accounts
anywhere, anytime with security and peace of mind. MCB is the only
bank that offers you 3 convenient options of making bill payments to
PTCL, SSGC, Interphone, Mobilink, Paktel and Ufone. So, save your
precious time by avoiding long queues and pay your bills through MCB
Easy Bill Pay. MCB Smart Card or MCB ATM Card Holder can easily pay
their bills or re-charge their prepaid mobile phone account through the
following convenient options of MCB easy bill pay.

Financial Information of MCB Limited

Amount In Pak Rupees (millions)
Net-
year Customer Investment Total Total Profit After
s Deposits Advances s Assets liabilty Tax

2007 292,098 218,961 113,089 410,486 355,366 15,226

2008 330,182 262,135 96,632 443,616 385,180 15,375

2009 367,605 253,249 167.134 509,224 439,484 15,495

2010 431,372 254,552 213,061 567,553 488,349 16,874

Graphs
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We show the financial analysis with different graphs:

Assets and liabilities

The followingshow that assets of Mcb’s in allthe years are more than its
liabilities. And also show in all the years from 2007 to 2010 assets are
continuously increases: in 2010 assets are 567,553 million rupees whereas
liabilities are 488,394 million rupees.

Total Assets
Total liabilty

2007 2008 2009 2010

Customers deposits & advances

The followingshow that deposits of Mcb’s in all the years are more than
its advances. This graph show thatcustomer deposits & advances are
continuously increases that is good for Mcb Bank.

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 Customer Deposits
Advances

2007 2008 2009 2010

Investments of Mcb Bank

Investments

2007 2008 2009 2010

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Mcb Bank’s Profit after Taxation

Profit After Taxation

17,000

16,500

16,000

15,500 Profit After Tax

15,000

14,500

14,000
2007 2008 2009 2010

SWOT ANALYSIS OF MCB

Strengths:
 MCB is a well established bank enjoying long history of over 55
years of experience andprofitable operation.
 MCB was the first privatized bank that gives it an edge
over other nationalized banksas it can develop any strategy
consistent with the demand of market and free from any
political or bureaucratic influence.

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 MCB is the largest private bank in Pakistan and third largest
bank among all banks.
 It has the largest branch network among private banks of
Pakistan.
MCB is the market leader in introduction of e-banking and it
has the largest ATMnetwork in the country.

 The Banks’ Rupee Traveler Cheques have been market leaders

for the past six years.
 MCB rated the best domestic bank for two consecutive years of
2000 and 2001 by euro money, a leading international
publication.
 MCB has forged strategic alliances with international banks for
expanding its network further, both locally and internationally.
 MCB has the ability to bring innovative products and services
like personalized service, electronic funds transfer,
sophisticated financial products such as electronic banking,
auto-teller machines and evening banking.
 MCB has been very effective in controlling costs as it
successfully restructured itself after its privatization. During
this process more than 1,600 employees were relieved under a
golden handshake scheme and 110 branches were closed.
 Excellent branches appearance gives an edge to MCB over
other banks. The branches are well furnished even in less
developed areas where other banks branches give a poor view.
The same is included in the mission statement of MCB in
following words: “…and to be the best place to work”.
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Weaknesses:
 Mission of MCB is not well defined. It restricts MCB from
extending its operations to other countries. This is evident
from this sentence of the mission statement “Our mission is to
become the preferred provider of quality financial services in
the country.. “either it means that MCB will not provide

quality service in other countries where it operates or it will

not extend its operations to other countries. In either case, the
bank suffers.
 Though MCB is third largest bank in Pakistan, yet the fact
remains that it is not market leader as HBL and NBP. Total
assets of HBL and NBP are Rs. 333,751 millions and Rs. 415,088
million respectively as at December 31st, 2001. While total
assets of MCB are Rs. 187055 millions. Similar is the case with
other financial strengths in deposits and advances.

 At the time of any financial difficulty, the other banks can

easily seeksupportfrom government while MCB will have to
rely on its own resources. One example of that came to the
front when it started restructuring to streamline its operations
and to achieve cost efficiencies, unlike other public sector
banks, which received assistance from Asian Development
Bank to the tune of US$ 250 million, MCB carried out
restructuring at its own initiative and without financial

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 assistance from the [Link] second examplewas The
rejection of its offer to take over United Bank Ltd.
 Through its bid was the highest of Rs. 12 billion: almost double
of the bids offered by other participant in the bidding.
 Branches whereas HBL has twenty overseas branches,
three subsidiaries, two affiliates,and one representative office.

 Similarly NBP has fifteen overseas branches, one

subsidiary, and four representative offices.

 Employees at branch level are not properly motivated to

work by heart. They take the allroutine activities as a boring
job.
 Most of the employees lack managerial training as they are not
properly educated. Due to seniority, they have moved up on
the hierarchy line to Grade-I, II or IIIpositions having hardly
bachelor degrees. This type of senior staff cannot apply the
modern and innovative techniques of management in decision
making.

Opportunities
 MCB may enhance its Rupee Travelers Cheques (RTCs)
sales by searching for newmarket niches.

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 It can introduce debit card system or may convert the
existing ATM cards into acomplete debit card.
 New products like personal loans mortgage and auto
leasing and each managementwhich provided in big cities like
Lahore, Islamabad, Karachi and Rawalpindi, these products
may be tested for success in other areas like Peshawar, Quetta
and Sargodha.
 Developing network for electronic transaction require huge
investment which can’t be made all at once, there exists an

opportunity for MCB to enter into agreement with other banks

to use each other’s ATMs which will result in an increased
convenience to MCB customers and customers of other banks.


 As all around the world remittances of money are strictly

monitored so as the money remitted may not fall in hands of so
called terrorists for that all conventional money laundering
through Hundies have been stopped there is an opportunity for
MCB to extend its branch network to various countries
emphasizing mainly on introducing electronic fund transfer
facilities. Versify credit risk and add to revenue generating
products are currently

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THREATS
 The Rupee Travellers Cheque (RTC) sales volumes may
be affected on account ofregulatory restriction imposed by SBP
on issuance to large value denominations.
 The tax refund by CBR to exporters during second
quarter of financial year 2002 andexcessive remittances from
abroad by Pakistan have increased liquidity resulting in low
demand for credit that would inevitably have dampening effect
on all banks profitability including MCB.

 The frequent reduction on 6-month and 12-month

Treasury Bills discount rates by SBPmay create pressure on the
banks profitability.
 The low discount rates are also negatively influencing the
advances rates which mayaffect the banks profits from the
other side.
 Foreign banks operating in Pakistan are playing a significant
role by incorporating new technologies and providing better
quality services thus creating a threat to the local banks

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  Especially to MCB which tries to develop core competence in
electronic based products. Policies of privatization, foreign
exchangereforms and Structure
 All adjustments have increased the inflow of foreign resources
through direct and portfolio investment. In trade financing the
role of foreign banks is even more significant as approximately
30 percent of the total trade of the country is transacted
through them. Major portion of the trade financing is for
importers to establish letters of credit.

Pest analysis of MCB:

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A broad view of the market is important when management is
interested in introducing new services for the customer. Rapid
technology changes and global completion and diversity of the buyer
preference in many market require the constant of the market voucher
to identify the promises business opportunities see the shifting
requirement of the buyer evaluate the change in the competitor
environment and guide the choice of which buyer targets and classify
them according to the market segments. Identification of the external
and the macro factors that influences the buyer and change the size and
the market over time involves initially customers profile in
whichincludes:
 Political and legal environment
 Economic trend
 Social culture environment
 Technological factors

Political and legal environment:

Banks are strongly affected by the political and legal consideration.
There are certain laws which create opportunities for the business.

Business legislation has following purpose:

 To protect the business from unfair competition.

 To protect the consumer from unfair business.
 To protect the business from society behavior.

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Economic trends:
A banking market requires better consumer market along with the
higher borrowing power. The available borrowing depends upon:

 Consumer income
 Saving rates
 Rate of interest
 Inflation
 Cost of living

Political instability in Pakistan can lead to changes in laws and policies

which can be in favor or against the banking sector. Economy of
Pakistan is facing issues about employment, inflation, illiteracy, which
hinders business growth.

Social and cultural environment:

A social is shaped by believe, valuesetc. People in the society attract with

it.

 Themselves
 Other
 Organization
 society

Cultural issues can be there but still as there are a number of

multinational companies there, therefore, cultural issues are prominent.

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Technology factors:

People are highly skilled and MCB can introduce new technology to
increase competencies. The technology factor have played very
important role in shaping the lives of the people. The change in
technology is greatly affected on the growth of economy.

RECOMMENDATIONS
Following are the main recommendations according to the
problems MCB facing;

PROPER DISTRIBUTION OF WORKLOAD

Workload should be divided into employees like no one feels the
workload. All the employees must have an equal workload so everyone
will feel comfortable and will be motivated.

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PROVIDE FRIENDLY AND STRESS FREE
ENVIRONMENT
A friendly, stress free and flexible environment should be provided to
employees to make them work in relaxed environment. In this sense
employees will be happy and will deal customers with utmost care and
empathy.

REDUCE TECHNOLOGICAL BREAKDOWNS

MCB possess the best technology but they should focus on proper
maintenance so that technological breakdowns and other related
problems would be reduced.

REWARDS AND PROMOTIONS

Every employee should be given rewards according to his performance
and bank should take some action regarding referrals that does not
perform their jobs as they should be. In this way, referrals will also start
working and employees will feel an environment that is full of justice.

ADVERTISEMENT AND PROMOTION

Bank needs to advertise aggressively to express its hidden strengths to
the customers. MCB can get more competitive position in market

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through advertising because there is direct relationship between sales
and advertising.

TEAM WORK
MCB should form teams of employees and should operationalize
management by objective technique. In team, employees will be able to
achieve complex tasks efficiently in less time.

PROPER TRAINING AND DEVELOPMENT

MCB should provide proper technical and interpersonal training to its
employees to increase the performance of the employees as well as of
the company.

REDUCE CUSTOMER COMPLAINTS

MCB should try to reduce complaints and should provide high quality
customer services that customers wish to receive. For this purpose MCB
should increase the motivation of employees and should reduce the
technological breakdowns.

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It is evident from this report and the financial statements of MCB that it
is making progress by leaps and bounds. The profits of MCB have grown
considerably during the last few years and this trend is expected to
continue into the future. Therefore, we conclude that MCB has a very
prosperous present and future, which assures the shareholders of wealth
maximization.

Side by side of it we think that if bank would be able to cover and

control on the above mentioned recommendations then it would be in
such a situation that will really lead it towards the road of prosperity,
development and integrity. And with the above mentioned sentences we
think there is too fault of the customers and in order to make the proper
working of the bank the customers should also cooperate with the bank
which will be really a good, ambitious and diligent condition for the
bank. And then bank will be really in such a situation and position to
compete its competitors in the country as well as on international level.

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 SUMMARY

Introduction
History
Vission & Mission
Vilues
Awards
Business Stretegy
Corporate Profile
Products & Services
Deposits
Advances
Services
Analysis
Financial Analysis
SWOT Analysis
PEST Anlysis
Future Outlook
Reccomendations
Conclusion

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