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INTERNSHIP REPORT

ON

MUSLIM COMMERCIAL BANK

Submitted To:

Head of Department Dr. Shabib

Haider

Submitted By:
Zainab Ali
17-10433
BS. Economics
2017
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Organization name: MCB bank (Township branch).

Forman Christian college (A Chartered university)

LETTER OF TRANSMITTAL
DR.SHABIB HAIDAR
FC COLLEGE UNIVERSITY
THE ECONOMICS DEPARTMENT
LAHORE.

Subject: Submission of internship report

Respected Sir,

It is a great honor for me to present you the internship report as required for the completion of

Bs(hons) degree for economics 2017. I spent 6 weeks at MCB as internee. The working

environment was very supportive, and the staff was very cooperative with me in providing

information regarding the procedures and processes in practice. Due to certain legal formalities, I

have not been able to gather all the facts and figures about the organization. In this report I have
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covered the history, mission, vision, field of activities, and ratio analysis of the bank, my work

experience, my observation and my recommendations. So I would like to discuss some of my

experience.

Yours sincere,

Zainab Ali

17-10433

DEDICATION:

First of all, I dedicate my whole work to my Allah Almighty who gave me the abilities to stand

up for my career and right now to complete my internship program and also guide me towards

the right path and enable me to choose right field. I am humbly grateful to my honorable and

respected teachers who furnished me with their informative lectures in these four years and to the

bank staff as well who provided me the opportunity to complete this Internship Report, and thereby

consolidating my concepts, enriching my knowledge, establishing my skills and strengthening my

confidence. Further than I am very thankful to Mr. Kashif the Branch Manager of MCB
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(township branch) who provide me data and complete information which is required to me for

the preparation of my report and the other staff that were involved in operations, they provided

me maximum information in a respectful manner. It is because of the motivations of these people

that I complete my internship in a good manner. Last but of course not the least my parents who

always supported me to participate in every field of work. I would do nothing without the

support of my beloved parents.

ACKNOWLEGEMENT

First of all I thank to ALLAH who give me strength to overcome all the difficulties and all respects

are for HIS Holy Prophet Hazrat Muhammad (S.A.W.W).Thanks to our respected teachers who

provide me help in every aspect of our life.

Further than I am very thankful to Mr. Kashif the Branch Manager of MCB (township branch) who

provide me data and complete information which is required to me for the preparation of my report

and the other staff that were involved in operations, they provided me maximum information in a

respectful manner. It is because of the motivations of these people that I complete my internship in a

good manner.
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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

I feel pleasure and honor that I got the opportunity to work in such a private and reputable bank of

the country MCB bank. During my internship program, I tried my level best to prepare myself

with all important knowledge. In this report, I have struggled to cover various aspects of bank like

introduction, its history, main departments, objectives, product and services, working and also

identify its strengths, weakness, opportunities and threats.

I have also mentioned the vision and mission of MCB BANK along with main objectives of

branch where I did my internship.

My internship report includes introduction, History, Product and services, Brief Introduction of all

departments, my personal practical work in were the account opening procedure along with

costumer dealing in this respect, the system and software being used for this procedure and

documentation for it, balance sheet by cash managers, credit department, trade department, ATM
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and checkbook department and loan operations these are some of the prominent tasks that were in

my knowledge.

Table of contents

Brief overview of banking…………………………………………….7

Introduction of MCB………………………………………………….9

Privatization Phase……………………………………………………..10

Corporate Finance………………………………………………………11

MCB retail banking……………………………………………………..12

Current accounts………………………………………………………...13

Credit card……………………………………………………………….14

Debit card………………………………………………………………...15

Cash department………………………………………………………….16

Cheques………………………………………………………………….19
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Recommendations………………………………………………………..23

Conclusion………………………………………………………………..25

Brief history of banking:

Definitions of Bank:

Bank is a financial institution that provides financial services to the public and receives deposits

and make loans for future investment and other expenses.

History of Banking Sector in Pakistan:

Banking in fact is primitive as human society, for ever since man came to realize the importance

of money as a medium of exchange; the necessity of a controlling or regulating agency or

institution was naturally felt. Perhaps it was the Babylonians who developed banking system as

early as 2000 BC. IT is evident that the temples of Babylon were used as ‘Banks’ because of the

prevalent respect and confidence in the clergy.

The partition plan was announced on June 3, 1947 and August 15, 1949 was fixed as the date on

which independence was to take effect. It was decided that the Reserve bank of India should
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continue to function in the dominion of Pakistan until September 30, 1948 due to administrative

and technical difficulties involved in immediately establishing and operating a Central Bank.

At the time of partition, total number of banks in Pakistan were 38 out of these the commercial

banks in Pakistan were 2, which were Habib Bank Limited and Australia Bank of India. The total

deposits in Pakistani banks stood at Rs.880 million whereas

Advances were Rs.198 million. The Governor General of Pakistan, Muhammad Ali Jinnah

issued the order for the establishment of State Bank of Pakistan on 1st of July 1948. In 1949,

National Bank of Pakistan was established. It started with six offices in former East Pakistan.

There were 14 Pakistani scheduled commercial banks operating in the country on December

1973, the name of these were:

1. National Bank of Pakistan

2. Habib Bank limited

3. Habib Bank (overseas) Limited

4. United Bank Limited

5. Muslim Commercial bank limited

6. Commerce Bank Limited

7. Standard Bank Limited

8. Australia Bank Limited

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9. Bank of Bahawalpur Limited

10. Premium Bank Limited

11. Pak Bank Limited

12. kpk Bank Limited

13. Lahore Commercial Limited

14. Punjab Provincial Co-operative Bank Limited

15. Askari Bank

Introduction of MCB bank:

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 basic purpose of bank was based on

public benefits so that the people could get maximum financial benefits, it was also supposed to

provide facilities for business purpose. After the partition of the Indo-Pak subcontinent, the bank

moved to Dhaka (then the capital of former East Pakistan) from where it commenced business in

August 1948. In 1956, the bank transferred its registered office to Karachi, Where the head office

is presently located. Thus, the bank inherits a 64 years legacy of trust of its customers and the

citizens of Pakistan. MCB Bank is not an overnight success story. It started with a share capital

of Rs 30 million which is divided into 3 million ordinary shares of Rs 10 each. The 1960s decade

is stated as the golden era in Pakistan’s economic and financial development. The banking sector
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also registered noticeable growth during that period and lent a strong helping hand to the

government to achieve rapid economic growth of the country. But in early 1970s this scenario

changed altogether. The separation of East Pakistan www.vchowk.com Page 9 (now Bangladesh)

and induction of the government led by Zulfiqar Ali Bhutto were the most significant events of

early 70s having far reaching effects on the banking system. In the wake of rapidly changing

conditions of the country, the government decided to nationalize all the commercial banks so that

the nation can benefit from a better use of resources. Consequently, the Muslim Commercial

Bank was nationalized under the Banks (Nationalization) Act, 1974 promulgated on January 1,

1974. In the banking sector, the then government decided to retain only five major banks by

merging all the smaller banks with the large ones. As a result of this policy, the Premier Bank

was merged into Muslim Commercial Bank.

PRIVITIZATION PHASE:

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. The banks after nationalization came under

political and bureaucratic control and deviated from normal banking practices. Some of their

senior executives were tempted to nurture a culture of obliging big businessmen, feudal and

political influential. They sacrificed their personal integrity and interest of banking sector for

gaining promotion and accumulating personal wealth. That is how banking sector started losing

its upright and professional institutional image from mid-80s and its downward slide started
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which touched new low during 1990s. The then PML government also became conscious of the

falling standard of the banking sector and decided to privatize all the commercial banks. Banks

(Nationalization) (Second Amendment) Ordinance 1991 was also promulgated to pave the way

for privatization of banks in Pakistan.

NATURE OF THE ORGANIZATION:=

MCB Bank Limited is a banking company incorporated in Pakistan and is engaged in

commercial banking and related services. The Bank’s ordinary shares are listed on all the stock

exchanges in Pakistan whereas it’s Global Depository Receipts (GDRs) representing two

ordinary shares are traded on the International Order Book (IOB) system of the London Stock

Exchange. MCB Bank Limited is a Pakistan-based company. The Bank operates in four business

segments:

• Corporate finance

• Trading and sales

• Retail and consumer banking

• Commercial banking
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CORPORATE FINANCE:

Corporate finance includes underwriting, securitization, investment banking, syndications;

initial public offerings (IPO) related activities (excluding investments) and secondary private

placements.

TRADING & SALES Trading & sales segment includes fixed income, equity, foreign

exchange commodities, lending’s to financial institutions and brokerage debt.

RETAIL & CONSUMER BANKING:

Retail & consumer banking includes retail lending and deposits, banking services, private

lending and deposits, banking services and retail offered to its retail customers and small and

medium enterprises.

MCB retail banking:

MCB bank has various departments for payments and financial support, like

Accounts

Loans

Transactions

1. Deposit Current Account:

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MCB Bank offers a variety of accounts everyday transactional needs of various customers

whether they are employed or not for their basic everyday transactions, current accounts are one

of them. These accounts ensure ease and freedom to bank from any of the 1,100 branches across

the country. The different accounts include: the basic 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 the others the conventional Current Account.

2. Asaan Account:

Another kind of account basically made for students and self-employed people just for limited

transactions limiting up to 500,000. This account basically helps students self-employed people

to save their money. The important part of the documentation of this account is the ID card and

the general information about the costumer.

3. Savings Account:

It 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. Saving

accounts also enables the costumer to save money for future expenses, as they transfer their

monthly transactions.
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4. MCB dollar account:

MCB Smart Dollar Account is a way that enables to initiate US Dollar deposit across USD

Current, Savings or Term Deposits.

It maintains the world-wide benefits for costumer who are abroad.

5. Business Accounts:

MCB Business Account enables the costumer to save high transactions for future investments,

the businessmen transfer maximum savings to restore money so the costumer transact money in

future when it is needed. The business accounts help the costumer to transfer their money to

other departments.

Credit Cards:

Credit Cards are today’s one of the most selling product that banks offer. MCB Credit Card is a

partner everywhere and is globally accepted and welcomed at locations displaying the VISA

logo. It is accepted at nearly 29 million locations in more than 150 countries around the globe

and over 27,000 MCB Bank establishments in Pakistan. MCB VISA pays for shopping, travel,

entertainment, meals and much more. Card members are facilitated through a number of

promotions from time to time. In addition.

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Features:

 No Joining / Annual / Renewal fee

 Electricity, Sui Gas, PTCL bills payment through 24 hour Call Center and Auto Debit

instructions

 SMS for card usage, payment receipt confirmation, etc.

 Cash withdrawal at all ATMs

 Online payments

MCB TRAVELERS CHEQUE:

MCB Travelers Cheques, offers worldwide benefits and is being considered as the market leader,

is the most widely accepted way to pay cash for travel-related purposes MCB Rupee Traveler's

Cheques were first introduced in 1993 as safe cash for traveling and travel related purposes.

ATMs:

MCB contains for almost 4500 ATMs with 24-hours convenience of cash withdrawal, utility bill

payment, funds transfer services etc. MCB Mobile ATM not only do we provide you with world

class banking service, it also provides convenience for fast service. The online ATM service is

the most innovative service of 1th century with lots of creations in financial institutions.

Debit cards:
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MCB presents Askari Debit Card, the Electronic Debit Card which gives annul limited access to

current / savings account with a simple swipe, at millions of retail shops and ATMs, worldwide.

The MCB debit Card comes with a host of conveniences and benefits combined with the wide

reach of Visa Network enabling it to be accepted at more than 840,000 ATMs and 13 million

retail outlets around the world, making it the most acceptable Debit Card available in Pakistan. It

is available in Gold and Classic categories.

In MCB the Debit card is in following categories.

GOLD DEBIT CARD:

Cash withdrawal Limit is 100,000, Shopping Limit 250,000 & Funds Transfer Limit 300,00

Cash Department:

The cash department is the most important department of the bank. It receives cash from

customers and then deposits it into the accounts of the customers and maintained their balances.

The officers in this department are called teller and there were four tellers at the counter. This

department involves in two activates:-

1. Deposit cash in customer’s account

2. Make payments from customer’s account

Deposit Cash in Customer’s Account:

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When the customer want to deposit amount in his account at opening of account or after that then

he has to fill a deposit slip that shows the amount and the account in which the cash will be

deposited. Then teller will receive amount and credit the customer’s account that shows increase

in customer’s bank account.

Make Payments from Customer’s Account:

When the customer draw a cheques on the bank to pay a certain amount then teller will debit the

customer’s account that shows reduction in his account balance.

There are two main types of cheques that are

 Open Cheques

 Crossed Cheques

Open Cheques:

Open Cheques are those cheques, which are paid across the counter of the bank.

Crossed Cheques:

The amount of this cheque is not paid at counter. The amount of this cheque is transferred to the

person’s account whose name is specified on the cheque. Two parallel transverse lines are drawn

across the face of the cheque.

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a. Receiving of Cheques:

The cash is paid against the cheques of the client. The following points are important.

 Cheques is drawn on Date.

 Cheques is not postdated.

 Amount in words and figure are same.

 It should be a bearer cheques so the word bearer should not cross.

b. Verification of Signature:

After receiving the cheques the officer verify the signature of the account holder and the

signature on the cheques. If the signature is not same it is returned back otherwise forward to

computer terminal.

c. Computer Terminal Process:

The cheques is received in computer terminal, where the computer operator checks the balance

of the account holder. The operator also sees the stop payment instructions are received from

account holder or not. After considering these points computer operator post the cheques in

account holder ledger and returned back to the officer.

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d. Payment of Cash:

After posting the cheques the officer cancelled the cheques and returned back to cashier. The

cashier enters the cheques in cash paid registered and pay against the second signature of

receiver on the back of the cheques.

vii. Delivered Cheques to Respective Banks:

Next morning, these cheques are delivered to the respective banks between 9:00 to 9:30AM. In

the same manner, other banks present their clearing drawn on MCB. Total number of cheques

and their amount delivered to other banks and received from them are written on the Clearing

House schedule branch for their payment. After proper scrutiny of cheques, verification of

signatures and confirmation of balance in the account, the Officer Clearing Department Debit the

customer Account. If any cheques is not passed due to insufficient balance or any other reason,

Officer Cash Department returns the same cheques by attaching a cheques return memo

containing reason for return.

ISLAMIC BANKING GROUP

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MCB Islamic Banking managed to maintain its profitability while ensuring quality of its

earning assets despite tough market conditions & deterioration in assets quality of banking

industry. Islamic Banking further strengthened its market outreach by increasing its deposit

base and equity. MCB-IB plans to improve its assets & liability product range. Strategic

initiative for further increase in dedicated branches and capitalizing on existing out reach of

MCB Bank has been undertaken for capturing Islamic banking business.

TREASURY AND FOREX GROUP

Treasury & FX remained focused on its customer orientation and enhanced its coverage to a

broader customer base. The portfolio of customers grew not only through the Treasury

Accounts Department:

This department is responsible to keep the record of each and every transaction and prepare

reports about the amount of deposits and advances and sent to Head office or State Bank of

Pakistan on monthly, quarterly and yearly basis.

Activities:
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The accounts department deals with various routine activities for the bank. The main activities

performed by it are:

a) Budgeting

b) Reporting

a) Budgeting:

Accounts department of a bank, for a year makes budget of every branch. Fiscal year of bank

starts from January 01 and ends on December 31. The accounts department starts preparing

budget from October for the next year.

b)Reporting:

The accounts department, in the form of reports, clubs the details of various departments

together. Each and every minute detail is provided in weekly, monthly and annual reports. The

reports are submitted to head office, SBP and to the government. The accounts department

prepares many reports, of which the most common are:

 Statement Of Affairs
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 Income & Expenditure

 Business Report

 Outstand Receipt Report.

Daily Activity Checking: -

All the operations performed in various departments of MCB Akbar Chowk Branch are

computerized. The functions are performed through the customized software. In order to

facilitate double-checking of all the transactions done, every concerned official also passes

vouchers and cheques manually. At the day end all the vouchers passed by various officers

working in different departments are given to Accounts Department. Furthermore the I.T.

department also prints a very bulky report of all the transactions / entries which have been fed

into the computer system of the branch that day. When both of these things are at the desk of

concerned officer, he performs the job of tallying the daily activity report with all the

corresponding vouchers and cheques, in order to track down any discrepancy.

CHIEF FINANCIALOFFICER (CFO)

Chief financial officers (CFO) direct the organization’s financial goals, objectives, and

budgets. They oversee the investment of funds and manage associated risks, supervise cash

management activities, execute capital-raising strategies to support a firm’s expansion, and

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deal with mergers and acquisitions.

As the Chief Financial Officer (CFO) of bank, he is responsible to the company’s Board of

Directors for all accounting and financial matters. He must establish company-wide

objectives, policies, procedures, processes, programs, and practices to assure the company of

a continuously sound financial accounting structure.

The Role of CFO in bank

The Top Ten Responsibilities for the CFO:

1. Cash Flow

2. Company Liabilities

3. Company Performance

4. Department Supervision

5. Budgeting and Expense Control

6. Financial Relationships

7. Finance or Raising Capital

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8. Financial Obligations

9. Record Control

10. Shareholder Relations

1. Cash Flow. As a CFO, his job is to control the cash flow position throughout the

company, understand the sources and uses of cash, and maintain the integrity of

CONCLUSION

If I have to express my experience of internship in MCB township Branch Lahore I would briefly

say:

MCB is a good Organization in the way that anybody can join it for his/ her long-term career.

Overall working environment is comfortable. Management of branch cares a lot of its employees

and considers them as the Asset of bank. Behavior of senior executive of bank is very polite and

they are caring about the individual’s career and their growth. However management is very

demanding about the targets but good reward at the achievement of assigned targets is awarded.
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Employees at MCB Bank are quite efficient. As College Road Branch is a new one, its

employees have to bring their bank among the list of good banks. Therefore, they work more

than their working hours and it is all according to their will. It also shows their loyalty,

commitment to organization. Employees are given the benefits like bonus, gratuity funds, loans,

increments, and medical.

All the customers are entertained individually. Same kind of behavior and attention is given to all

the customers. Getting ideas for improvement from customer side is a new idea and that is

working very well in MCB. All the customers are asked to fill a suggestion form and the

standards of the bank are improved through them. In bank, all the work is done on computers.

All the entries are made in computer. Balance are fed into the computer. This increases

efficiency of the bank.

During my internship training I gathered information regarding how a successful bank

operational aspect decorticated with the practical. I found my internship training at MCB Lahore

to be a very rewarding experience. The training was beneficial because it helpful me to aware a

real life working environment.

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So far my learning is concerned; all the employees at branch were quite cooperative. They

helped me to understand the activities of a bank to possible extent. Their good attitude gave me

more confidence to learn more and to ask if I have any query in my mind. Besides their ever

going activities they never get irritant by my questioning. I had made an honest effort to present

the working & operation of MCB.

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RECOMMENDATIONS

It was an interested experience to do internship in MCB. The staff was highly cooperated and

due to their help I learned big deal about modern banking.

I suggest that such an internship program highly integrative for the students of commerce

education so that the students should be enquired with the knowledge of practice world .I do

summarize that it would be a great help to me in selection of job or future field of work.

Here I am putting some suggestions, which will enable the bank to compete with other banks

more effectively & efficiently.

 The employees should be signed jobs for specific period and then they should shifted to

other department so that they gain knowledge of other jobs.

 Askari Bank Limited should properly advertise and Communicate to public about the

services provided by it, so that more customers will be attracted.

 The bank’s management should give more incentives and pay scale of officers should be

revised & improved.

 System and operations should be more defined and organized.

 IT draw backs should be improved.

 Administration drawbacks should be improved by the strict control of general issues.

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