MCB 11

Internship Report on MCB
MCB is incorporated in Pakistan and engaged in commercial banking. It

is listed on all the stocks exchanges in Pakistan. The banks registered
office and principal office are situated at MCB Building, Jinnah Avenue,
Islamabad and Adamjee House I.I Chundrigar Road, Karachi respectively.
After privatization MCB has change enough. The adoption of new
technology and offering new products has made MCB one of the best
domestic banks of Pakistan.
According to the department internship program I completed my six
weeks internship at MCB FARID GATE BRANCH BAHAWALPUR. In these
Bank four types of department exists.
General banking operation department
Credit operation department
Foreign exchange department
Clearing department
General banking department is concerned with daily operation of the

branch. This department is divided into four sections which are Cash
section, Clearing section, Remittance section and fixed deposit section.
Cash section performs cash related function like receipt of cash, payment
of cash and collection of utility bills. Clearing section performs the
clearing
of
cheques
for
collection.
Remittance
section
performs
transferring of funds from one branch to another or from one account to

another.
Department of Management Sciences
MCB offer five type of remittance which are telegraphic transfer (TT), mail
transfer (MT) demand draft (DD), Pay order (PO) and online remittance.
Fixed deposit section deals with deposits. MCB offer different scheme for
demand deposits and term deposits.
Credit department issues short term and long term loan. MCB offer two
types of loans or finances, fund based finances and non fund based
finances. Funds based finances include running finance, demand
finance, cash finance and staff finance. Non fund base finance include
letter of credit
and guarantees
like
performance
guarantees
mobilization guarantees shipping guarantees , bid bonds and security

deposit guarantees Foreign exchange department. This department deals
with foreign currency.
BANK
A bank is a financial institution which deals with money and credit.
OR
A bank is a firm that takes deposits from household and firms and
makes loans to household and firms.
Banks plays an important role in the economy of any country. They

are very important for the progress of any country. Banks borrows money
at the lesser rate of interest and lends it to borrower at higher rate of
interest hence bank is profit oriented organization. Bank has to keep
certain proportion of total deposits in order to meet cash requirement of
individuals and business companies.
BANKING IN PAKISTAN
At the time of independence, commercial banking facilities were provided
fairly well here.
There were 487 offices of scheduled banks in the
territories now constituting Pakistan.
An Expert committee was
appointed. The committee recommended that the reserve bank of India

should continue to function in Pakistan until 30th September 1948, and
Pakistan would take over the management of public debt and exchange
control from Reserve Bank of India on 1st April 1948 and that India
Notes would continue to be legal tender in Pakistan till 30th September
1948. Moreover the banks including those having their registered offices
in Pakistan transferred them to India in order to bring a collapse of a
new state. By 30th June1948 the number offices of scheduled banks in
Pakistan declined from 487 to only 195.
In order to make necessary arrangements for the assumption of control
an Expert committee was appointed to recommend necessary steps,
including the required legislation to establish a Central Bank for
Pakistan.
The
Governor
General
of
Pakistan
QUAID-E-AZAM
MUHAMMAD ALI JINNAH inaugurated the State Bank of Pakistan on

July 1, 1948, after the state Bank of Pakistan Order was promulgated on
May 12, 1948. The first Pakistan notes were issued in October 1948 in
the denomination of Rs. 5, 10, 100; and by August 1949 the State Bank
of Pakistan withdrew the Reserve Bank of India notes of the value of Rs.
125.02 Corer with the help of Pakistan notes.
Despite the effort
Government of Pakistan inscribed notes of the value of Rs. 51.57 corers

were still in circulated thus the total Pakistan claim of assets of the issue
Department of Reserve Bank of India amounted to Rs.176.59crores.
However the Reserve Bank of India transferred assets of the value of
Rs.127.67 corers only to the State Bank of Pakistan and stopped such
further transfers on March 23, 1949 on very flimsy grounds. The issue
has so far remained unresolved despite protected negotiation between the
two countries.
As the Centered Bank of the country, the State Bank addressed itself
with the equally urgent task of creating a national banking system. In
order to attain this goal it provided every help and encouragement to
Habib Bank to expand its network of branches and also recommend to
Government the establishment of a new bank which could serve as an
agent or the State Bank. As the result the National Bank of Pakistan
came into over the agency function from the Imperial Bank of India.
More Pakistan scheduled banks continued to be established which
included the Commerce Bank Limited and the Standard Bank Limited.
By June 1965, the number of scheduled banks stood at 36; the deposits
increased to Rs.688.28 corers while credit expansion by the banks to the
private sector rose to Rs.575.87 corers due to keen demand under the
impact of economy growth and better scope private enterprises.
The
networking of banks branches now covers a very large segment of

national economy.
MCB HISTORY
Prior to independence there was only one bank owned and operated by
Muslims in Bombay. This was Habib Bank ltd. The Quaid wished that
there should be one more Muslim Bank located in Calcutta.
Thus
Muslim Commercial bank was brought into existence in Calcutta, on

July 1947 a few months before independence under the ownership by
Adamjee and some supported from Ispahanis.
After independence
Muslim Commercial Bank shifted its head office to Dhaka. Late on in

1956 MCB shifted its head office Karachi to remain close to State Bank
of Pakistan. In 1947 MCB was nationalized and a small union bank was
merged with MCB. In1991 it was first bank to be sold back to the private
sector by the Nawaz Government when the national group was led by
Mian Mansha of the giant Nishat group purchased a 26% stack of
Rs.800M since the national group has increased its stake to 51%. Now
MCB is in the top five private banks of Pakistan. There are above 900
branches of MCB all over the country. MCB is listed on the Stock
Exchange Market. The head office of MCB is at Karachi.
There are 24 branches of MCB in BAHAWALPUR District. The regional
office is situated in Model Town A, BWP.
MCB has an edge over other local banks, as it was the first privatized
bank. The State Bank of Pakistan has restricted the number of branches
that can be opened by foreign banks, an advantage that MCB capitalizes
because of its extensive branch network.
Over 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 has restructured its asset
portfolio and rationalized the cost structure in order to remain a low cost
producer.
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 multi national concerns. MCB
is also catering to the growing middle class by providing new asset and
liability products. The Bank provides 24 hour banking convenience with
the largest ATM network in Pakistan covering 41 cities with over 217
ATM locations. The Banks Rupee Traveler Cheques have been market
leaders for the past six years and have recently launched their Gift
Cheques Scheme.
MCB looks with confidence at year 2005 and beyond, making strides
towards fulfillment of its mission, "to become the preferred provider of
10
quality
financial
services
in
the
country
with
profitability
and
responsibility and to be the best place to work".
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MCB-YESTERDAY AND TODAY:

Currently the bank is restructuring its organizational structure. In any
bank, there are three types of customerspriority banking, commercial
banking, and corporate banking, each requiring different kind of
products and services. So, in order to better serve all the three types of
customers and to provide them with specialized services, the bank has
been restructured into three parts, Corporate, Commercial and Priority
Banking Sectors which are further divided into three sections North,
South and Central. A consumer banking division has also been
established as part of Retail Banking. It will develop specialized
consumer banking products like consumer loans, housing finance, car
loans, etc.
ACHIVEMENTS:
It is therefore not surprising that Euro money, Europes leading Banking,
Financial and Corporate magazine granted MCB was awarded as a
Euromoney Award 2000 for the Best Domestic Bank in Pakistan".
MCB was awarded as a Euromoney Award 2001 for the Best Bank in
Pakistan". MCB was awarded Euromoney Award 2003 for the "Best
Bank in Pakistan". In a continuous winning streak, MCB once again
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takes pride in being conferred with Euromoney's prestigious award of

excellence, for being the "Best Bank in Pakistan" for the fourth time in
the last five years. MCB has again received the esteemed Euromoney
Award for the Best bank in Pakistan. It is the only bank to receive the
Euromoney Award for Excellence for the fifth time in the last six years.
Future Plans:
The future plans of MCB for the year 2005 are as follows:
Business growth through a new set up of Corporate and Commercial
Banking groups and Priority Banking Groups.
Improvement and re-engineering of current products, services and their
processes for Quality Service to the valued customers.
13
14
Board
of Directors
Mian Mohammad Mansha
Chairman
S.M.Muneer
Vice Chairman
Tariq Rafi
Mohammad Arshad
Shahzad Saleem
Sarmad Amin
Mian Umer Mansha
Aftab Ahmad Khan
Atif Yaseen
Mohammad Aftab Manzoor
President & Chief Executive
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Advisor
Raza Mansha
Audit Committee
Mian Mohammad Mansha
Chairman
Mian Umer Mansha

Member
Aftab Ahmad Khan

Member
Chief Financial Officer
Ali Munir
Company Secretary
Tahir Hassan Qureshi
Auditors
A.F.Ferguson & Co. Chartered
Accountants
16
M.Yousuf Adil Saleem & Co. Chartered Accountants
Legal Advisors
Mandiwalla & Zafar
Advocates & Legal Consultants
Registered Office
MCB Building, F-6 / G-6,
Jinnah Avenue, Islamabad
Principal Office
Adamjee House, 2nd Floor
I.I. Chundrigar Road, Karachi.
Registrars and Share Registration Office

THK Associated (Pvt.) Ltd
Shares Department, Ground Floor,
Sheikh Sultan Trust Building No.2
Beaumont Road, Karachi.
17
18
19
From left to right

M.U.Usmani
Malik Abdul Waheed
Ali Munir
Mohammad Aftab Manzoor
Shahid Sattar
Aneeq Khawar
Shoaib Qureshi
Musaddiq Ijaz
Zafar Abrar Naqvi
Salman Ahmed Usmani
Aamer Hassan Zaidi
20
21
BOARD OF
BOARD OF
DIRECTORS
DIRECTORS
CHAIRMAN
CHAIRMAN
SEVP
SEVP
SEVP
SEVP
SEVP
SEVP
SEVP
SEVP
CIRCULAR OFFICES
CIRCULAR OFFICES
EVPs/SVPs/VPS, s
EVPs/SVPs/VPS, s
BRANCHES
BRANCHES
AVPs/OFFICERS
AVPs/OFFICERS
GRADE
GRADEI,I,II,II,III
III
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23
MISSION AND VISION
VISION
By the year 2005 mcb will have a highly motivated professional team who
will provide quality customer services expand and penetrate the customer
base, in order to improve profitability to that we can pay regular dividend
and increase our share value
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MISSION
To become the preferred provider of quality financial services in the country

with profitability responsibility and to be the best place to work
25
OBJECTIVES OF MCB
Maximize the deposits.

Give attractive return to its shareholders.
Maximize the market share.
Modernize the bank.
Export/import promotion.
Development of human resource.
Improvement in the quality of customer service.
Provide customers reliability and convenience.
26
BRANCH OF MCB
MCB has 946 branches in which 942 branches are working in different
cities of Pakistan. MCB has 4 foreign branches in which three are in
Srilanka and one is in Bahrain. One export processing zone of MCB is
also working in Pakistan.
There are 24 branches that are working in Bahawalpur region of MCB.
Bahawalpur region consist of three district

Bahawalpur District
Lodhran District
Bahawal Nagar District
3 branches of Multan District are also working in Bahawalpur
region.
There are 13 branches that are working in Bahawalpur district.
There are four branches of MCB in Bahawalpur City which are
1. MCB MODEL TOWN A BRANCH
2. MCB FARID GATE BRANCH
3. MCB GHALLA MANDI BRANCH
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4. MCB EID GAH BRANCH

5. SATELLITE TOWN BRANCH
28
BRANCH NETWORK
Sector-wise position of circles/regions
COMMERCIAL-NORTH
561
COMMERCIAL SOUTH 365
Lahore East
59
Karachi east
52
01 Lahore East
24
01 Karachi east
25
02 Sahiwal
35
02 Karachi north
27
03 Lahore City
25
Karachi west
48
04 Lahore West
20
03 Karachi south
24
05 Shaikhpura
24
04 Karachi west
24
Karachi Central
08
Faisalabad
55_
06 Faisalabad Central
27
05 Karachi Central
07
07 Faisalabad City
28
06 Karachi Main
01
Gujranwala
78
Hyderabad
52
08 Gujranwala
25
07 Hyderabad
28
09 Gujrat
26
08 Nawabshah
24
10 Sialkot
27
29
Islamabad
83
11 Islamabad
19
12 Rawalpindi
25
13 Chakwal
20
14 jehlum
19
Sardogha
Sukkar
50
09 Larkana
24
10 Sukkar
26
78
Quetta
33
15 Jhang
27
11 Quetta
33
16 Mainwali
25
17 Sardogha
26
Bahawalpur
50
12 Bahawalpur
24
13 Rahim Yar khan
26
72
Peshawar
81
18 Kohat
20
19 Mardan
19
20 Peshawar
21
21 Swat
21
Abbotabad
58
Multan
22 Abbotabad
23
14 D G khan
26
23 Attok
26
15 Multan
25
24 Mairpur A K
09
16 Vehari
21
___
30
CORPORATE
12
01 South Karachi
03
02 North Lahore
09
Islamic Banking
03
1 Karachi
01
02 Lahore
01
03 Multan
01
ATM Branches
217
_________________________________________
Online branches
319
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Summary
___________________________________________
Group wise
Regions
Circles
No of Branches
________________________________________________________________________
Commercial-North
24
561
Commercial South
16
365
12
Corporate
Islamic Banking
TOTAL
40
3
18
941
_____________________________________________________________
Overseas
EPZ
4
1
__________________________________________________________
TOTAL
946
___________________________________________________________
32
Province-Wise
Province
No Of Branches
PUNJAB
581
SINDH
213
NWFP
105
BALOUCHISTAN
34
Azad Jammu & Kashmir
Overseas
EPZ
33
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PRODUCTS AND SERVICES
The Largest network of 319 on-line branches in the country.

Providing customers with 24x7 real time on-line transaction
facilities.
Call now for answer to your queries, banking services, ATM

services, mobile banking services, RTC services, Tele banking
services and MCB product information.
The nation's largest network of over 319 ATMs. Get 24 hour

convenience of cash withdrawal, mini statement, and bill payment
and funds transfer services.
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Cash
management
services
for
corporate
customers.
Helps
customers substantially reduce their receivable collection time

frame; improve cash flow and business management.
Deposit account for customers with substantial balance offering

profit on a daily product basis with the facility of unlimited
withdrawals.
Cash withdrawal facility at over 630,000
ATMs worldwide.
Convenience of shopping at over 5 million POS locations globally.
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.
Islamic banking services through exclusive units / branches

offering a range of liability and asset based Sharia compliant
products like Musharika, Murabaha, Ijara and Istasana.
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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 electronics hub for

ATM sharing plus other touch points. The nation's largest
operating switch with the highest transaction volume.
Flexible and competitive home financing facility with options of

home purchase, construction and renovation.
One of the most popular deposit accounts offered by MCB.
Fastest to Pakistan, anywhere in Pakistan. International remittances

with a two-way messaging facility delivered at your doorstep within 24 to
72 hours.
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A local Point of Sale acquiring network facilitating acceptance of all major

card brands.
Car financing and leasing at competitive rates with flexible options.

Car4u finances both semi-commercial and non-commercial vehicles for
personal and business use.
The most widely accepted way to pay cash for travel related purposes. A
safe and secure way to make payments nationwide.
Personal loans for salaried individuals of reputed local and foreign

companies at rates tailored to customer's repayment capacity.
Providing access to diversified financing options including working

capital loans, term loans, trade finance services and investment banking.
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MCB, the leader in banking technology, now provides the convenience of

banking on the internet. You can now access your account anytime and
anywhere.
The best protection for your valuables. Lockers of different capacities are
available nationwide.
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GENERAL BANKING DEPARTMENTS
General banking department is most important and busiest department

of the bank. This department performs basic function of the branch such
as maintenance of account in the branch, preparation of financial
statements of the branch etc. Financial statements are made on daily
basis. The transactions that occur in the other departments are posted to
general banking department for countercheck, that the whole working for
the day is balanced. All the transactions are feed in computer in this
department. This department is issue the RTC and cashes the RTC. This
department is also responsible for making demand draft, mail transfer,
and pay order as they are computerized in this branch. This branch is
online so online transfer of funds is also performed by this department.
This department performs following functions
Cash section
Remittance Section
Customer service
CASH SECTION:
The cash Department is in charge of all cash or monetary transactions
that are in the Bank. They are in the form of:
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Deposits
With drawls
DEPOSITS:
All deposits in the Account should be accompanied by pay-in-slip
showing the title, number of account to be credited. The entry will be
verified by signature of an official of the bank under bank stamp on the
counterfoil of the pay-in-slip. The depositor should satisfy, from the payin-slip counterfoil that the transaction is verified.
The instrument should be crossed before they are deposited for the credit
of Account. The depositor has to in dignify the Bank from every loss
which might be incurred due to depositor fault.
Depositor can open following types of accounts with MCB.

Current Account
PLS Saving Account
PLS Term Deposit
Khushali Bachat Account
Mahana Khushali Bachat Scheme
Saving 365
Capital Growth Certificates
CURRENT ACCOUNT:
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MCBs Pak Rupee Current Account offers you the convenience of

unlimited withdrawals i.e. access to your funds whenever you want
without any notice. There is no limit on the number of transactions you
make in a day plus you can avail finance facility up to 75% of the total
deposit.
In addition, you have access to a countrywide ATM network convenient
cash accessibility 24 hours a day. The facility also provides you with
unlimited daily transactions with a limit on maximum withdrawal
amount through the ATM machines.
PLS SAVING ACCOUNT:

MCBs Pak Rupee Savings Account offers you attractive returns on your
Pak Rupee investment.
In addition, you have access to a countrywide ATM network convenient
cash accessibility 24 hours a day. The facility also provides you with
unlimited daily transactions with a limit on maximum withdrawal
amount through the ATM machines.
TERM DEPOSIT ACCOUNT:

Place your investment in a MCB Pak Rupee Term Deposit and receive a
higher rate of return. Avail your choice of 1 month, 3 months, 6 months,
1 year, 2 years, 3 years, 4 years and 5 year term deposits. For more
information or to open an account at MCB visit one of our 900 branches
today.
SPECIAL NOTICE TERM DEPOSIT:

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Profit/return is paid on daily product basis.

Profit on PLS SNTD is payable at the rate declared on preceding
half yearly/yearly closing.
No profit/return will be paid after expiry of notice period if the
deposit is not withdrawn.
No profit/return is paid for pre-mature encashment before seven
days or thirty days notice, as the case may be, from the date of
notice or date of issue.
KHUSHALI BACHAT ACCOUNT

Save Today. Tomorrow is Yours
Khushali Bachat Account, a Rupee savings account is one of MCBs most

popular products. Due to the low initial deposit, the account can be
opened by people from all walks of life and still avail the facility of daily
product profit calculation. The account offers unique and attractive
benefits to the Account holders.
MAHANA KHUSHALI BACHAT SCHEME

Steady Income Month After Month.
MCB Monthly Khushali Scheme provides you with a steady income every
month. Just purchase a Monthly Khushali Certificate and you will enjoy
a steady income of your total deposit every month.
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Minimum deposit of Rs. 50,000

Your deposit to remain fixed for five years
You can avail a credit facility up to 75% of the total deposit value.
Profit will be paid on a monthly basis through Cash, Pay Order,
Demand Draft or Direct Debit to your Saving/Current Account.
SAVING 365
Saving Account with Current Account Facilities
The MCB Saving 365 calculates profits on a daily product basis and
gives you the facility of unlimited withdrawals
Open a Saving 365 Account with a minimum initial deposit of
Rs. 500,000
Your Profits are calculated on daily product basis payable on a
half yearly basis
No restrictions on the number of withdrawals
You can avail a credit facility up to 75% of the total deposit
value
CAPITAL GROWTH CERTIFIACATES:

This deposit scheme is bit different from other scheme of MCB as halfyearly profit, under both scheme, is provided but no paid to customer or
credited to his/her account.
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The amount of profit so provided on six monthly intervals is treated as

being reinvested to attract profit at the applicable rate like the principal
amount of deposit. In other words under these scheme the half yearly
profit is provided on a cumulative bases, and retained with the bank, till
final payment on maturity or upon completion of the period. Customer
wishing to obtain CGC is required to full fill a form. After completion of
form and payment of account a certificates is issued to him.
ACCOUNT OPENING REQUIREMENTS:

Requirement for account opening are given below.
SOLE PROPRIETORSHIP, INDIVIDUAL, JOINT:
Requirement for account opening in case of sole proprietorship are

Account opening form
Initial cash deposit
National identity card copy
PARTNERSHIP
Requirement for account opening in case of partnership are
National identity cards copies of all persons
Application on letter head
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Partnership deed
COMPANY:
Require for account opening in case of company are given below
Copies of National identity cards of Directors
Application on company notepad
Memorandum of association
Certificate of incorporation
List of directors
ACCOUNT OPENING PROCEDURE:

In account opening first of all account opening form (AOF) is given
to the person who wants to open the account he fills the form and
provide necessary information the guarantee of existing account
holder is required to open the account the account no and
signature of the exciting account holder is required who give the
guarantee for account holder after filling the form the person sign
at the account opening form and the copy of national identity card
is attached with the form
After this he has been allotted account number and he deposit the
initial cash mentioned in the account opening form through a slip
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and receipt is given to the person after this cheque book is given to
the person and in this way account can be opened.
BOOKS RELATING TO ACCOUNT HOLDER

1- PAY IN SLIP
Pay in slip is used to deposit the money in any bank account To deposit
the money pay in slip is filled by customer and along with cash it is
submitted to cashier and receipt is given to the customer the object of
book is to provide the customer with the banks acknowledgement for
receipt of money to be credited his account.
2 CHEQUE BOOK:
A cheque book contains number of cheques. When a person wants to
withdraw any amount he gives the cheque to the cashier and received the
required amount.
3 PASS BOOK:
Passbook is a copy of customer account as it appears in the books of
bank. The clerk in this book record balance. But now days branches are
computerized so computerized banks statements are shown to customer
after a certain period.
MAINTAINING THE ACCOUNT:
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It is the responsibility of account department to maintain the account of

account holders. When account holder deposit the amount the account
department credits this amount in his balance. Similarly when an
accountholder withdraw an amount from his account the account
department debits this amount from his account.
If the cheque book of any accountholder is lost he has to fill a form and
then new cheque book is issued to them.
CLOSING OF ACCOUNTS:
There are many reasons for closing of account. It is not a good omen for
the business of the bank.
Some of the more common reasons are as
follows:
1) Account holders own request
2) Death of the account holder
3) Bankruptcy of account holder
4) Closing account due to bad demeanor of account holder
etc.
5) An account is closed at the request of an account holder
or as a result of improper conduct of account holder or as
result of Nil balance of account.
In the first case account holder request to the manager of the bank to
close his account in black and white. While in the lateral case the bank
manager is authorized to close the account. But Bank before closing the
50
account first sends the latter to the account holder that your account is
going to be closed.
CUSTOMER SERVICE
The quality of customer Service is a critical factor in the success of any
bank. With increased globalization, information revolution and stiff
competition, the importance of providing quality service has increased
exponentially. In an age where products are swiftly copied, technology is
easily acquired and marketing strategies nullified by competition,
superior customer service has become the leading source of competitive
advantage.
Broad Functions of Customer Service Officers

Assist Customer in Branch
Keep liaison with customer
Gather all necessary printed literature regarding MCB products &
services
Provide printed literature to customers when they request
Handling customers complaints & grievances and convey the same
to the concerned branch officials
Guide customers in the branch to the concerned officers
Inform account balances and provide statements of accounts to
customers when there are authorized by the Branch Managers to
do so
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Look after the outlook of the branch premises
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REMITTANCE SECTION
One of the major functions of bank is remittance of funds from one

customer to another or from one center to another center. The
remittance department is mainly concerned with these remittances of
funds. Remittances are of two types.
1.INWARD REMITTANCE
Inward remittances are the payments in favor of bank account
holders. Inward remittance includes all the cheques received for
collection.
Home remittance (Speed cash!)
Speed Cash is the fastest mode of instrument. This process can be
explained by following example:For Example.
Riyadh Bank Jaddah draws a cheque a cheque in favor of MCB head
office, Karachi and head office then sent to different branches. Where
the branch make the payment on behalf of head office in this way
2.OUTWARD REMITTANCE
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Outward remittances are all payments made for other people on the
behalf of account holders of the bank. The people who dont have
Account in the bank can also apply for remittance by depositing cash
in the bank.
These are various ways for remittance for customers who want to use
this facility. These are
Pay order
Telegraphic transfer
Mail transfer
Demand draft
Online remittance
Remit Express
Rupee Travelers Cheques
PAY ORDER:
Pay order are mostly used with in the city when a person wants to pay to
any person who is with in the same city and who prefer non cash
payment.
PARTIES INVOLVED:
Following parties are involved in pay order transaction.
1. Purchaser
2. Issuing / purchasing branch
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3. Payee
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PROCEDURE:
Its nature varies with the nature of purpose. If the pieces of work is of
huge amount. Then first of all manger writes the letter to Zonal chief
in order to get the sanction of the work. Then the advertisement of
the work is given in the news paper in order to invite the contractors.
But for the small work branch manager has discretionary powers that
he can select the party, whose rate of work is lowest one. After the
work is completed wholly/partially contractor submits the bills of
work on his stamp paid. Then Bank issues pay order to the party. So
against the pay order contractor gets the amount of work done from
the issuing branch.
TELEGRAPHIC TRANSFER:
In Telegraphic Transfer funds are transferred through telephone or
fax. This is a fast mode of transferring funds. This mode of remittance
is used for all banks whether in the same city or in different cities.
PROCEDURE:
For sending the TT the manager applied the test. In the Test he uses
the coding techniques, writes his code number which is allocated to
him by the bank, Branch Code etc. So after conforming all the
information, the concerned branch will make the payment to the
person.
PARTIES INVOLVED
56
Following parties are involved in T.T transaction

Applicant
Remitting or drawing branch
Drawee branch
Beneficiary or payee
Mail Transfer:
Mail transfer is the transfer of funds through mail or courier service.
This mode of remittance is used when transfer of money is not
urgently required.
Parties involved
Following parties are involved in MT transaction
Applicant
Remitting or drawing branch
Drawee branch
DEMAND DRAFT
Demand draft is a written order drawn by one branch of a bank upon
the other branch of the same bank or upon another bank to pay
certain sum of money to or to the order of some specified person.
57
This mode of remittance is normally used for payment to outside the

city beneficial.
PROCEDURE TO PREPARE THE DD:

First of the entire draft voucher filled which contains the following
information.
Name of the parties involved
Date
Account to be sent
Account number if the DD is crossed
Credit Voucher is filled in order to get excise tax duty, withholding tax
and exchange commission.
Party deposit the total amount of two vouchers i.e. the amount DD+
Exchange commission excise duty.
Then cashier sends the cash receipt voucher to accounts department.
Account records the amount paid in this cash scroll registered.
Account gives the DD leaf along with the DD_Voucher to the
assistant.
Assistant will record the senders name and amount, receiver name.
After writing all the information in the DD-Register gives it to the
officer along with the DD for authentication.
After authentication, DD is handed over to the party and the bank
sends the advice to the concerned branch. So that when a party
58
presents a DD in the concerned branch, its payment will be made to

the certain person, if the DD is to same banks branch. If the DD is to
the other banks branch then it should be cleared through the
clearing.
PARTIES INVOLVED
Following parties are involved in demand draft transaction.
Purchaser/Sender
Issuing or drawing branch
Drawee branch
Payee
Telegram:
The mode of remittance is the faster in term of time taken for the
message to arrive as the telephone or fax used to convey the massage.
ONLINE REMITTANCE:
It is the fastest mode of transferring the funds. In online funds are
transferred by using internet. But this facility can be availed if both
drawing branch and Drawee branch are online.
Parties involved
Following parties are involved in online remittance.
Remitting Applicant
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drawing branch
Drawee branch
REMIT EXPRESS
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.
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REMIT EXPRESS FEATURES

Easiest and safest way to remit funds
Remittance within 24 to 72 hours
Personal delivery to the beneficiary
Delivery confirmation to the remitter
Message facilities for both parties
Your beneficiary will receive the amount even if he/she does not
have an MCB account.
AFFLIATED BANKS/ COMPANIES

United Arab Emirates
Dubai
Federal Exchange
Dubai
Thomas Cook Al Rostamani Exchange
Saudi Arabia
Jeddah. Injaz for Exchange
61
RUPEES TRAVELERS CHEQUE:

Ideal for Every Deal
MCB has been at the forefront of providing its customers with new
and innovative products and financial instruments that are safe,
secure and profitable. MCB Rupee Traveler's Cheques were first
introduced in 1993 as safe cash for traveling and travel related
purposes. The product has been extremely popular and is preferred
over cash by customers while traveling and in all walks of life. MCB
Rupee Traveler's Cheques- The safest way to Carry Cash. Now the
maximum requirement is Rs. 10, 000/-. It is made for Traveling
purposes. It can be presented to any branch of MCB, at any city. Here
no time limit is required.
While in case of draft 20 days are necessary, only for foreign
remittance.
Issuance of RTC:
Customer whishing to purchase the RTC is required to fill a form
where
he
mentioned
his/her
name,
address,
amount
and
denomination of RTC he/she wants to purchase. Then he makes

payment of total amount including charges of make income tax and
commission.
If some one provides his tax number then tax is not
deducted from that customer on purchasing the RTC.
After
depositing the amount the remittance officer made the RTC. He signs
on the back of the RTC and also asks the customer to sign in the
presence of that particular officer so that the sign should be verified.
62
At the RTC there is two places where the customer has to sign the
first one is the done at the purchasing time when he purchase the
RTC and second one was done at the branch where he give the RTC
for payment at the presence of officer. So this is a safest method of
taking money to any where else.
FEATURES OF RTC:
Easily available: Buy them from any of the designated branches in
Pakistan.
As good as cash: MCB RTCs are safe to carry and can be used
without any inconvenience specially by Travellers.
Easily encashed: At any designated MCB branch
Easily refunded: in case of loss or theft, you can get the full
amount back.
Exclusive security features: Due to special printing and safety
precautions, Cheques cannot be duplicated.
Denominations: Available in denominations of Rs 1000, Rs 5000,
and Rs 10,000 and gift cheques of Rs 500.
Valid until Used: Validity of Cheques indefinite
24-hour Service available at Airport MCB booths Karachi, Lahore
& Islamabad
Televerification System allows checking validity of all Cheques
through telephone or fax. Televerification No. (021) 111-000-456.
or call MCB CALL CENTRE (021)-111-000-622
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24-hour Customer Service Facility: (021) 111-000-123

More than 900 MCB Authorized branches are selling and
purchasing Cheques all over Pakistan.
MCB Rupee Traveler's Cheques are also available at the counters of
Foreign Banks such as ABN Amro and HSBC and private bank i.e.
Bank Al-Habib.
CLEARING DEPARTMENT:-
The clearing of a cheque and other instruments is another important

function which MCB performs. This function is mainly done through
STATE BANK OF PAKISTAN. Where there is no branch of STATE
BANK this function is performed through NATIONAL BANK OF
PAKISTAN. MCB authorizes its main branch at our station to perform
this clearing work .Similarly
MCB has established a clearing
department in its main branch that is FARID GATE BRANCH

BAHAWALPUR which and the said branch has opened MCB account
with state Bank of Pakistan. The other branches of the city and
outside branches send their collection instruments drawn on other
banks branches to main branch for collection. The Cheques and other
instruments drawn n other banks are presented in the clearing house
64
through the clearing officer of the main branch. After the clearing
process main branch informs to the other branches through advices
about the fate of the instruments. After these others branches are
able to credit the amount in the account of related account.
CLEARING PROCESS
On every morning of a working day the clearing officer visits the
STATE BANK OF PAKISTAN where clearing officers of all banks are
present and they exchange instruments with each other. The
representative
of
MCB
also
does
the
same.
He
delivers
the
instruments to the different banks and collects the instruments

drawn on itself and others branches of own bank. The instruments
drawn or received are entered into a sheet which shows whether
clearing is in favor or in against. The instruments received from the
other banks are entered in the inward bills for collection register. The
instruments include those drawn on other branches as well for
clearance. Branches inform their main branches about fate of
instruments either passed or dishonored. The representative meets
again at clearing house and tells each others about the instruments
either clear or dishonored which they already delivered each other in
the morning. The necessary entries are being made in the books of
state bank of Pakistan .In this way account is settled.
The main branch maintain the account with state bank of Pakistan
,so the account of this branch are debited or credited at SBP in
respect of itself and others branches. It is now inter branch matter to
set these account. In this regard main branch issues the inter branch
65
credit advices or inter branch debit advices for favorable or against

clearing respectively relating to different branches. The bank collects
two type of clearing
1- Outstation bills for collection
2- Locals bills for collection.
The local bills for collection include those instruments which are
drawn on branches of other banks which have account with SBP in
the same city in which the collecting branch is operating. The rest are
outstation bills for collection from outstation branches.
66
ADVANCES DEPARTMENT:-
The credit department plays a vital role in the function of bank. Credit
department issue short term and long term loans to its customers. In
Muslim commercial bank its sharing ratio in profit is very high. The
main source of income is its mark up on different types of long term
and short term loans.
While issuing the loan the credit department makes credit proposal
for credit report the following information are required before
preparing the credit proposal:
Account number of borrower and the type of account whether
current or PLS or KBA.
Nature and structure of the borrower business and its main
products.
Name of the borrower, whether proprietor, partners and
directors.
Types of ownership whether proprietorship, partnership or
company.
Details of all firms and companies associated with borrower
business.
Current financial condition of borrower business.
67
Accurate and up to date financial statement of last two year (if

the borrower business life is two year or more).
Market report on borrower when borrower has maintained an
account with another bank and in this case report from this
bank is also obtained.
After Collection and fulfillment of these entire requirements the bank
prepare the credit proposal for the borrower
1 .The purpose of credit proposal should be
Starting if new business
Expansion of existing business
Purchase stock
2 .The proposal of finance is
Unmarked:
That borrower has applied first time for the finance.
Renewal:
That borrower has applied again for issuance of finance.
Enhancement
That borrower has applied for more than prior finance.
3 .The credit proposals also reveal that what will the arrangement be
for Repayment.
4 .The rates of mark up and amount of finance are also mentioned.
68
69
TYPES OF ADVANCES
Loans and advances offered are of two types.
1. FUND BASED FINANCES:

In these type of advances or finances there is physical movement of
cash from bank reserve to customer who applies and successful in
getting loan
2. NON FUND BASED FINANCES:

In these finances physical movement of cash from bank reserve to
customer does not occur. These types of finances can be short term,
medium term and long term.
FUND BASED FINANCES

1. RUNNING FINANCE:
Running finance is a facility of credit allowed for working capital. In
running finance certain limit is sanctioned to the borrower and then
he utilized the loan facility provided he does not exceed the sanctioned
limit.
The interest is charged on amount sanctioned to him. In running
finance, finances are secured against the hypothecation of stock and
also separate guarantee is obtained of two kinds
70
1. against registered/Equitable mortgage of property in the name of

borrower or third party.
2. against two personal guarantees.
71
Bank Conditions against the Running Finance: Collateral and hypothecation of stock i.e. 50% of total advance.
Demand promissory note.
Financial agreement
Letter of hypothecation
Personal guarantees of directors of private organization
Letter of lien
Limited company must submit charge sheet registered on registrar
of joint stock Company
The client withdraws the amount the amount from his current
account by cheques.
2. Demand finance:
This type of finance is payable on demand for one year. The client is
bound to repay it in monthly installments where whole amount is
supposed to be adjusted along with mark up within one year. In case
of demand finance the whole amount of loan demanded by customer
is credited in his account. The interest/markup of demand finance is
charged on whole amount.
3. Cash finance
Cash finance is offered for short time period, for some month mostly
for seasonal business. The cash finance is commercial loan and
mostly given to small business owners. Cash finance is given against
72
the pledge of good. On the request of customers goods are pledged and
cash is given to them.
Procedure for Obtaining the Loan:

Customer applying for new/additional/amended/renewal of credit
facility is required to complete a form SA_1 (2) with the heading
Application for Finance.
The customer on the aforementioned
prescribed form should apply for each and every facility for
consideration of the bank.
A copy of the application form duly
completed and signed is submitted by the branch with each copy of

the credit proposal to the concerned recommending/ approving
authority.
This is particularly important in case of new/additional
credit facility.
PROCEDURE
FOR
SUBMITTING
CREDIT
PROPOSAL:The
prescribed
form
(SF-86)
titled
Credit
proposal,
marked
ANNEXTURE VII is used by branch while submitted request for

sanction of credit facilities to customers.
However in rare cases of
short-term accommodation, not exceeding a period of 90 days, the

form titled SHORT-TERM PROPOSAL is submitted. In urgent cases
limit application are sent forward to the sanctioning authority by
FAX/TELEX. However for less urgent cases courier services is used.
PROCESSING OF LIMIT PROPOSAL:Department of Management Sciences
73
The following procedure is adopted the branch for disposal of credit

proposals received from banks constituents.
Credit proposal is received either by the branch manager /chief
manager or credit in charge from existing/prospective customer of the
bank. After proper evaluation of the proposal, credit in charge sends
it with his recommendations to the manager for further consideration.
The manager can then approve the proposal. However he is not in
favor of approving the credit proposal facility, he will record the reason
for rejecting the proposal.
A proper record is maintained for all
rejected proposals, sanctioned advice , in duplicates per specimen is

send to the customer, in case of every proposal approved by the
manager/chief manager specifying the limit/term/condition.
Banks copy of sanction advice is expeditiously obtained, duly
accepted by the customer.
There after the accepted sanction letter,
after proper verification of the authorized signature thereon, is lodged

in the safe custody in customers security folder.
A photocopy is
retained on the credit file of the constituent, for case of reference. The
branch Manager ensures that copies of sanction letter are variably
endorsed to the concerned regional manager and respective area
executive
at
documentation,
Head
Office.
charge
forms,
All
security
property
aspects,
documents,
including
charge
registration document, etc. need to be complete and correct in all

aspects.
After receipt of certificate of completion and perfection of all security
aspects, documentation, etc., signed by the branch manager, it is in
74
order for the credit Incharge to authorize disbursement of funds.

Credit
proposal
exceeding
branch
manager/chief
Managers
discretionary power are submitted by him with his recommendations

to the concerned regional manager, with in a week from the date of
receipt of customers request, under a suitable covering letter. Copies
are also submitted to the GM as well to respective area executive at
Head Office.
75
Staff finance:MCB also provide loan to its employee up to certain limits. These
loans are generally provided for house, car motor cycle. These loans
are categories into two types.
1. Loans for officers

2. Loans for clerical staff.
76
LOANS FOR OFFICERS:

The loans for officers are further divided in three categories:
House Loans
An employee can get a house loan after one year of his confirmation.
The amount of the house loan extended to an employees 80 times of
his salary there is no interest up to the amount of Rs. 400,000 but
above 4 lac interest of 10 percent is levied.
Car loan:This is an expensive loan as considered by the MCB people.
This
amount of loan is paid in the lump sump worth Rs. One lac and fifty
thousand. The interest that charged on this loan is 10%.
MOTOR CYCLE LOAN:The Motor cycle loan is for the Clerical staff but an employee in officer
grade can also avail this loan. The amount of this loan is Rs. 55000
with no interest charged on it.
LOANS FOR CLERICAL STAFF:The Loans for clerical staff are further divided into categories:
HOUSE LOAN:An employee of MCB in clerical category can draw an amount of three
lac seventy five thousand as house loan. There is no interest on the
loan.
77
MOTOR CYCLE LOAN:Employees in the clerical category can request the loan for motor
cycle. The sum of Rs. 55,000 are advanced in lump sum. This loan is
also interest free.
NON FUND BASED FINANCES

1. LETTER OF CREDIT:
Letter of credit is a written undertaking by bank given to the seller at
the request and on the instruction of buyer to pay at sight or on the
stated date with in a specified time period, specified amount
mentioned in the commercial invoice.
It is most widely used mode of settling trade debt on international
level. It is the safest way for trade due to the method of payment.
Through this you can easily placed order to importer and receive well
from importer.
2. GUARANTEES:
It includes performance guarantees, bid bonds, shipping guarantees,
shipping guarantees, mobilization guarantees, and security deposit
guarantees.
These guarantees are explained below.
PERFORMANCE GUARANTEE:
These are generally requested by customers, guaranteeing completion
of work or supplies, as per terms of contract and or mutual
78
agreement. In such instances, the Branch Manager or chief manager

should exercise special care is given below.
The guarantees are not for projects, which are in any way uncertain or
speculative.
The contractor is well experienced in his line of work, having executed
similar contracts satisfactorily in the past earthquake. All insurance
premium costs shall be borne by the customer. It shall be the
responsibility of the Branch Manager or the Chief Manager to ensure
that premises always remain adequately insured. The Branch should
directly pay the premium to the debit of customers account if the
customer does not insure the premises promptly, despite branch
reminders.
b). BID BONDS:

The bank is often requested by its customers to issue Bank Bonds in
lieu of deposit of earnest money against bids for tenders. In case of
breach of the Bid Bonds terms, on the customers part, the bank
could be applied upon to make payment.
C. SHIPPING GUARANTEES:
There are instance where the importers need to obtain delivery of
goods without production of the relevant bill of lading. In such cases
the Bank is requested by the customers (importers) to issue a
Shipping Guarantee in favor of the concerned Shipping Company.
d. MOBILIZATION GUARANTEES:
79
Under these, the Bank guarantees the performance of a contract or

other work, as specified in the guarantee. The bank guarantees the
amount of advance payment made to the customers in this
connection, for satisfactory performance of the contract.
80
SECURITY DEPOSIT GUARANTEES:

These guarantees are issued in lieu of security deposit, generally to
Utility Service organizations for connection supply of electricity,
telephone, gas, etc to the customers.
FINANCIAL STRENGTH:
There are five Cs which are used by a banker (credit analyst) to focus
the creditors financial strength. These five Cs are:
Character
Capacity
Capital
Collateral
Condition
1- CHARACTER:
The
applicants
record
of
meeting
past
obligations
(financial;
contractual moral). The record of those payments which he paid

earlier and with that those which is still payable .With those pending
or resolved legal judgment against the applicant would be used to
evaluate its character.
2- CAPACITY:
81
The capacity shows the adequacy of applicants to reimburse the

stipulated
credit
.Financial
statement
analysis
with
particular
emphasis on liquidity and debt ratios is typically used to assess the

applicants capacity.
3- CAPITAL:
The financial strength of the applicants as reflected by its ownership
position. Analysis of the applicants debt relative to equity and its
profitability ratios are frequently used to assess its capital.
4-COLLATERAL:
The value of assets the applicants has available for use in securing
the credit. The larger the amount of available for use in securing the
credit. The larger the value or amount available assets the greater the
chance that bank will recover its funds if the applicants will unable to
repay the credit. A review of the applicants balance sheet assets value
appraisals and any legal claims filed against the applicants assets can
be used to evaluate its collateral.
5- CONDITION:
The current economic and business climate as well as any unique
circumstances affecting either party to the credit transaction. For
example; if the firm has excess inventory of the item the applicant
wishes to purchase on credit, the firm may be willing to sell on more
favorable terms or less creditworthy applicants.
82
The credit analyst typically gives primary attention to the first two Cs(
character and capacity )
since they represent the most basic
requirements and making the final credit decision, which is affected

by the credit analysts experience and judgment.
83
SECURITIES:
1. HYPOTHECATION
2. MORTGAGE
3. Pledge
4. Guarantees
5. Promissory note
1. HYPOTHECATION
When the properties in goods are charged as a security against the
loan obtained from bank, but possession and ownership remains with
the borrower then the goods are said too hypothecated. When the
goods are hypothecated, it does not mean that goods will go in
possessions of bank, owner ship will transfer, rather, a security is
granted by the mean of the letter of hypothecation.
2. MORTGAGE
Mortgage is the transfer of an interest in specific immovable property
for the purpose of securing the payment of money advanced or to be
advanced by way of loan, existing or future debt, or the performance
of an engagement which may raise transferee a mortgage.
3. PLEDGE
84
In pledge the ownership remain with the pledger, but the pledge has
the exclusive possession of the property until the advance is repaid in
full. While in case of the default the pledge has power of sale after
giving due notice
4. GUARANTEES
When the application for an advance cannot offer any tangible
security the banker may relay on personal guarantees to protect
himself against loss on advance or overdraft to the applicant.
5. PROMISSORY NOTE
Promissory note is also accepted as security. A Promissory note is an
instrument in writing containing an unconditional undertaking
signed by the maker to pay on demand or at a fixed or determinable
future time a certain sum of money only , to , or to the order of
certain person or to the barrier of the instrument.
85
FOREIGN EXCHANGE DEPARTMENT
Foreign exchange department is an important part of Farid Gate

Branch. Foreign exchange department deals with daily exchange
rates. It is an important department because it deals with foreign
exchange like US dollar, German mark, Saudi reyal, Japanese yen,
British Pond and etc. The rates changes daily.
The department deals with the following work:

Foreign currency account
Foreign Currency Remittance
Foreign Bills For Collection
Import
Export
Travelers cheque
Encashment of TC
L/C Advising
Foreign Exchange Bearer Certificate
86
MCB FOREIGN CURRENCY ACCOUNTS

1- FOREIGN CURRENT SAVINGS ACCOUNT
MCBs Foreign Currency Savings Account offers the attractive returns
on your Foreign Currency investment. One can invest in any of the
four currencies i.e. US Dollar, UK Pound Sterling, Japanese Yen or
Deutsche Mark. The foreign currency account is exempted from Zakat
and withholding tax.
2- FOREIGN CURRENCY CURRENT ACCOUNT

MCB Foreign Currency Current account offers the convenience of
unlimited withdrawals i.e. access to the funds whenever you want
without any notice. There is no limit on the number of transactions
you make in a day.
You can invest in any of the four currencies i.e. US Dollar, UK

Pound Sterling, Japanese Yen or Deutsche Mark
Your foreign currency account is Zakat and withholding tax
exempted.
Foreign Currency Term Deposit

Place your investment in a MCB Foreign Currency Term Deposit and
receive a higher rate of return. Avail your choice of 1 month, 3
months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year term
deposits.
87
Dollar Khushali Account

Catch the rising Dollar and turn it into your future.
The Dollar Khushali Account, a Dollar based account was introduced

in 1993 at selected Muslim Commercial Bank branches. Today, you
can open a Dollar Khushali Account at over 200 branches in Pakistan.
You can open a Dollar Khushali Account with a minimum initial

deposit of US$ 100
Your Profits are paid on daily product basis payable half yearly on
interest calculated at the Dollar Savings Rate
No prior notice required for withdrawal

You can avail a credit facility up to 75% of the total deposit value
Your account is not subject to Zakat
Rupees Maximize Account

MCB Rupees Maximizer Account is our latest PLS saving Account
specially made to help MCB Foreign Currency Account holder to
convert their account into Pak Rupees.
It gives individual,
businessmen and Corporation the chance to earn a high rate of

return on their deposits in Pak Rupees. The account offers unique
and attractive benefits to the account holder:
88
Profits calculated on a daily product basis

No restrictions on number of withdrawals
No restriction on initial deposit
Free ATM Card to each customer
Locker facility free of cost
Capital Growth
In this scheme, deposits are to stay with the bank for five years and
every six months the profit is calculated and added into the initial
deposit in this way it is a form of compounding. The profit rate on
capital growth certificate is 4.00% Minimum Deposit of 10,000
Call Deposit
This is a type of deposit offered by MCB on which no Markup is paid.
The Call Deposit receipt is usually issued in the favor of Government,
Semi Government, and Institution Corporations etc. as security
deposit.
89
90
MCB UNIQUE PRODUCTS
MCB AUTOMATED TELLER MACHINE

MCB introduced automated teller machine in 1995 to provide 24
hours cash facility to its customers. Over the years it got great
success and this encouraged the bank to expand its ATM Network.
With a solid foundation of over 50 years in Pakistan, with more than
750 automated branches, 269 online branches, over 190 MCB ATMs
in 34 cities nationwide and a network of over 16 banks on the MNET
ATM switch, MCB is positioned at the forefront of the banking
industry in Pakistan. This success has been possible because of a
never-ending drive to achieve higher levels of excellence, constantly
striving to raise the level of performance
CATAGORIES OF CARDS
MCB ATM Regular Card
The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per
day and a maximum of 3 withdrawals per day per card.
MCB ATM Gold Card
91
The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day
and a maximum of 6 withdrawals per day per card. The cardholder
has to make at least two transactions to withdraw the full amount of
Rs. 25,000
ATM USAGE
ATM Usage outside Pakistan
Your MCB ATM Card can be used to access your MCB account from
anywhere around the globe. MCB ATM is accepted at 634,700
locations where there is Master Card or Cirrus ATMs allowing you a
daily withdrawal limit of US$ 200 (or equivalent in other currencies)
on availability of funds in your account. Plus, the convenience of
shopping through over 5 million Maestro POS (Point of Sales)
terminals globally
ATM Usage within Pakistan

Muslim Commercial Bank has the largest ATM Network in the country
with over 200 ATMs and over 300 online branches. The MCB ATM
Card can be used in over 35 cities in Pakistan. Whether you want to
withdraw cash or ask for a mini-account statement, or even use it as
a debit card at Maestro POS terminals, the MCB ATM Card gives you
instant access to your bank account, anytime, anywhere.
MCB ATM Bill Pay

For the first time in Pakistan, MCB proudly introduces a unique
service - MCB ATM Bill Pay which allows you to pay your utility bills
92
and recharge your mobile phones the easy way- through MCB ATM's,
available to you 24 hours-365 days. This facility is for all MCB ATM
Card holders and MCB ATM Cash Card holders alike.
93
MCB ATM FUND TRANSFER

MCB's Funds Transfer facility is available to all MCB customers who
maintain pak rupee accounts at any on-line branch and are MCB
ATM cardholders. This facility is available to you at any time you find
convenient, 24 hrs, and 365 days. In addition to the added facilities
being offered through the MCB ATMs, you will now be able to do so
much more: transfer funds between accounts with ease and flexibility.
MCB ATM CASH CARDS

The wide spread acceptability and frequent use of MCB ATM Cards
has prompted the Bank to add more value to the cards which cater to
customers evolving cash needs enabling them to go ahead with ease
and convenience. This reinforces MCB commitment to provide to its
customers safe and secured mode of cash substitute.
MCB CASH CARD is useful means of cash for MCB customers and
non customers alike:
Travelers
Businessmen
General Public
MCB CASH CARD ADVANTAGE
94
MCB ATM Cash Card enables MCB customers / non customers to

meet their day-to-day cash requirements and settlements of their
commercial / personal cash requirements transactions
95
Secure
MCB ATM Cash Card is the safest alternative to cash because the
purchaser can be rest assured of its security. If the ATM Cash Card is
lost it would be cancelled immediately and the purchaser would get
the amount refunded easily subject to completion of refund form
Ease of use
MCB ATM Cash Card is the best because unlike other modes of
transfer of Funds / Remittances which are drawn on a particular
branch and can only be en cashed at that branch. MCB ATM Cash
Card holder can draw cash from any of MCB ATMs all over the
country, M-Net Members ATMs and Cirrus Member ATMs globally.
MCB CASH CARD is disposable and with a prescribed determined
value. When the value of MCB CASH CARD is utilized fully and the
balance amount is NIL the cards will be discarded.
Sale procedure
Sale procedure of MCB CASH CARD is also very simple, any one who
is customer of MCB or a non customer of the Bank may purchase the
MCB CASH CARD through any of our Authorized Online Branches
with ease and completion of minimum formalities. The purchaser is
required to fill an application Form CC-10 and hand over the same at
the counter of any authorized online branch of his choice and the rest
will be done by the friendly staff of the bank.
96
MASTER CARD
THE FUTURE OF MONEY
Since the beginning of time, people have tried to find more convenient
ways to pay, from gold to paper money and cheques. Today, money is
moving away from distinct hard currencies and towards universal
payment products that transcend national borders, time zones, and,
with the Internet, even physical space. Plastic or "virtual" money,
credit, debit, and electronic cash products, inevitably will replace cash
and cheques as the money of the future.
MASTER CARD FEATURE

MasterCard International has expanded globally in more locations in
the world than any other card. The card was introduced by Muslim
Commercial 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.
97
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 available in Pakistan and worldwide.
MCB now brings you MCB Smartcard -a secure and convenient

instrument of payment with unmatched functionalities. It provides
24-hour direct access to your bank account. The convenience and
flexibility of MCB Smartcard will help you live a smarter life. It not only
helps you manage your expenses, but also eliminates undue interest
on your day to day credit card transactions. Your balance is always
within your reach and you spend accordingly. MCB is the only bank to
introduce a debit card that gives the option to choose from domestic
and international cards for local and global usage respectively. You
can avail the following functionalities on your MCB Smartcard.
SMART FEATURE
Smartcard is your debit card for cash free convenience. Use it for your
shopping and purchases at a rapidly growing nationwide network of
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merchant
locations
including
petrol
pumps,
stores,
bakeries,
departmental stores, jewelers, travel agents, restaurants, chemists,

hospitals etc.
Its simple, safe and convenient to use:

Shop at locations displaying the Cash Free sign and the MCB
Cards logo.
For payment, no need to pay cash. Simply present your card.
merchant will swipe your card for the amount of the transaction
You simply authorize your transaction by entering your PIN
(Personal Identification Number) yourself. The PIN is for extra
security
The purchase amount is debited from your account
To make your transaction safe and secure, MCB has installed State
of the art smart terminals at your merchant locations, to ensure
your personal convenience. At restaurants & fuel Stations your
merchant will bring portable terminals to you for your PIN entry.
BILL PAYMENT
Hassled by long queues and short bill- T accepting hours at limited
locations? Now you can use the Smartcard to pay your utility bills at
the largest nationwide network of MCB ATMs. Pay online and get
instant confirmation of payment
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Make bill payments up to Rs. 20,000 per day per card.
Currently available for payment of gas bills of Sui Southern Gas

customers,
This facility is being expanded to cover all utility bill payments
Pay as a registered or non-registered user. Registration will help

you avoid the time delay in entering details each time you carry out
a transaction.
Easy Steps That Guide You through Bill Payments

1. Insert your Smart Card into the ATM and enter your PIN.
2. Select "Utility bills"
3. Select Utility type "SSGC bill"
4. Select "Registered" (Select Un-Registered if not already registered
with MCB).
5. If you are Un-Registered, select and enter Consumer No.
6. Enter bill amount you wish to pay.
7. Select "Yes" if you want to proceed.
8. Collect your card and confirmation slip.
FUNDS TRANSFER
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Want to avoid the hassle of writing cheques and time-delays in making

pay orders, demand drafts and telegraphic transfers? Enjoy the
benefit of MCB Funds Transfer facility with your Smart Card at the
largest nationwide network of MCB ATMs.
Transfer funds between a maximum of 8 pre-registered online
accounts within the growing network of MCB branches across 30
cities.
Get round the clock convenience with the largest nationwide S
network of MCB ATMs.
Transfers take place instantly & funds become accessible for use
You can use the balance inquiry facility to reconfirm for your
Satisfaction.
24 HOURS CASH WITHDRAWALS

The purchasing, bill payment and funds transfer facilities of the
Smart Card free you of the inconvenience of Carrying cash. However,
your Smart Card gives you the 24-hour freedom to withdraw cash
from the largest network of MCB & ATMs across 30 cities in Pakistan
and growing. In C addition to A TMs, you will also soon be able to
withdraw cash from pas terminals 8 at selected merchant outlets.
e. International usage
International Cardholders can withdraw cash from their account in
Pakistan from a global network of over 634,000 ATMs worldwide with
the maestro logo.
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So whether you are on a business trip or a vacation, MCB Smart Card

will be your trusted companion
BALANCE ENQUIRY
Whether abroad or in Pakistan far from your branch Smart Card gives
you the flexibility to instantly obtain your account balance 24 hours a
day without the inconvenience of Calling or visiting a branch.
This service can be availed via any of the following:
From MCB POS terminals at merchant locations
At the largest nationwide network of MCB ATMs
102
MINI STATEMENT
The mini-statement facility gives you 24 hour access to your updated
account balance &the status of recent entries for your record keeping
and reconciliation.
This service can be availed via any of the following:
At the largest nationwide network of MCB ATMs.
By using the MCB Mobile Banking facility.
Easy steps that guide you through getting your Mini Statement at
ATMs
Insert your Smart Card into the ATM and enter your PIN.
Select "Mini-Statement"
Collect slip with your balance information.
MCB has two kinds of ATM cards with different cash with drawl limits
MCB MOBILE BANKING

Smartcard holders can enjoy the free 24 hour facility of checking their
account information and mini-statements on their mobile phones using
SMS (Short Messaging Service) with comfort and peace of mind. MCB
Mobile Banking is available 24 hours, 365 days and gives you quick and
easy access to your accounts at a time you find convenient, including all
holidays. This facility is also available globally, if you are on roaming with
messaging facility provided by your phone service provider. Just call our
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Call Centre on (021) 111-000-622 or any MCB online branch for

assistance
With MCB Mobile Banking you can:
Check your balance
View the last 4 transactions of your MCB account(s).
A Free Service
This service is free of charge (however SMS charges of the phone service
provider may apply) and is currently available on Instaphone, Mobilink &
Ufone.
How to get Connected

If not already enrolled, please visit your branch and fill out an MCB
Mobile Banking registration form. You need to provide your mobile phone
number and the account number(s) for which you want the service to be
activated. Subsequently, you will receive a message on your mobile phone
confirming your registration and requesting you to select a PIN (Personal
Identification Number) which is for Mobile Banking only.
Your Mobile Banking PIN

PIN is your confidential code for security and it identifies you as an
authorized MCB Mobile Banking user. You can select your own PIN:
Step1
Access your message function menu from your mobile phone.
104
Step 2
Then go to the write message screen and enter your 4 digit PIN by typing
the following command PIN (space) ****
Step 3:
Send the message command containing your PIN to the phone
number
999 an exclusively dedicated phone number for MCB Mobile Banking.
Step 4:
Once you receive the confirmation message on your mobile, please call
the Help Line on (021) 111-000-777 or contact your branch for the
activation of your service.
Using the MCB Mobile Banking

The following simple steps need to be followed from your mobile phone to
access the service:
Step 1:
Access the Message function menu from your mobile phone.
Step 2:
Then go to write message screen and type the required message
command, for example
Bi (space) **** (space) 1
105
Bi
Balance inquiry ****

1
PIN
Account I
Step 3:
Send the message command to the phone number 999.
Step 4:
The incoming SMS message will contain the desired information.
4. Quick Message Commands

The following is a list of common commands available to you.
Balance Inquiry
bi (space) **** (space) 1
Mini Statement
ms (space) **** (space) 1
PIN Selection
pin (space) ****
PINChange
cpin (space) **** (space) nnnn
where nnnn is your new PIN
Blocking an Account
blk (space) **** (space) 1
Un-Blocking an Account
ublk (space) **** (space) 1
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HELP
You can also access the above commands on your mobile phone. Go to
the Write message screen, type h and send it to phone number 999.
107
MCB DEBIT CARD

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

No need to carry cash, when MCB Card is your companion.
Acceptability of your card at Merchant Locations, including Petrol
Pumps, Grocery Stores, Bakeries, Departmental Stores, Jewelers,
Travel Agents, Restaurants, Chemists, Hospitals and many more
locations displaying this sign.
When MCB Card is used, payment is made by directly debiting
your Bank account.
No need for signature, as PIN (Personal Identification Number) is
being used for security.
Now you can also do Balance Enquiry of your Card Account at
selected Merchant outlets.
MCB Call Centre

Keeping up with banking services can be tedious but not with Muslim
Commercial Bank, where phone service is at your fingertips. Just dial
our Call Centre from the comfort of your home or office or wherever
you happen to be. It offers basic banking services for your
108
convenience, eliminating the need for you to make unwanted trips to

your branch
Call Centre Tel #'s:

(9221) 111-000-622
OR
CALL OUR TOLL FREE NUMBER
0800-69622
MCB CAR 4U
With MCB Car cash you worry of getting a brand new car for yourself
and your family is over.
Ours is the best option available in the
market when you talk about car financing.
Pakistani national residing in an approved area/city.

Not less than 21 years for businessmen, or 22 years of salaried
personnel, and would not be more than 70 years on the maturity of
the facility of Auto Finance.
Salary/Income is at least Rs.12, 000/- per month with monthly
installment not exceeding 50% of the take-home salary/income.
Businessman/Self-employed person with a minimum experience of 1
year in the same business/profession.
Permanent employee. For contract employees, 2 years on the job with
the current employer or 3 years of overall experience.
109
MCB has launched Pyara Ghar-your window to own a home.
Yes!
MCB put your dream home within your reach.

With the MCB Pyara Ghar Scheme you can obtain the financing to
purchase a house/apartment, Construct your own house or renovate
your existing house immediately. Its better than paying a monthly
house rent which takes you nowhere other than increasing your
expanses.
MCB Easy Personal Loan provides you with the financial advantages
to do things youve always wanted to but never had the sufficient
funds for. Take that much needed holiday. Buy a car Refurnish your
house, purchase a new T.V.
Finance a better education for your
children.
110
111
112
MUSLIM COMMERCIL BANK

SUMMARIZED BALANCE SHEET
AS ON DECEMBER 31
Items
2004
2003
2002
2001
2000
23833253
24053669
17901270
21259900
12571424
5708323
1302592
2154190
3025689
4757413
10965297
10430450
33874620
15470519
10852094
40506873
35786711
53930080
39756108
28180931
67194971
128276842
89576542
55432235
43110947
Assets
Current Assets
Cash & Balances With
Treasury Banks
Balance With Other Banks
Lending to Financial
Institution
Total Current Assets
Investment Net
113
114
Advances Net
137317773
97200179
78923737
76585999
86359139
502159
890856
331668
215387
121406
7497662
3691967
3493377
3444259
3482950
7999821
4582823
3825045
3659646
3604356
6265397
6477064
8883163
11621406
13459690
259284835
272323619
235138567
187055394
174715063
Operating Fixed Assets
Capital Work In Progress
Property & Equipment
Total Operating Fixed

Assets
Other Asset
Total Asset
Liability And Equity
115
116
Current Liability
Deposits & Other accounts
Borrowing From Other

Banks
Bills Payable
Total Current Liability
Other Liabilities
Total Liabilities
219,966,057
211,511,393
182705716
154544451
135990147
8693965
32,627,951
21987824
8946624
16890675
7566684
8396320
6261957
8097178
7803443
236226706
252535664
210955497
171588239
160684265
8311113
8679262
12484179
8580465
8438055
244537819
261214926
223439676
180168704
169122320
117
Share Holder Equity
Share Capital
3371800
3065273
2665455
2423140
2202855
118
Reserve Funds & Other

Reserve
Unappropriate Profit/
(Accumulated Loss)
Share Holder Equity
Surplus On Revaluation Of
Fixed Assets
Total Liability + Equity
5661553
4379255
3026517
2278980
2277630
359340
281636
621985
302465
3185
9392693
7726164
6313957
5004585
4483670
5354323
3382529
5384934
1900962
1109073
259284835
272323619
235138567
187074251
174715063
119
MCB BANK LIMITED

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED DECEMBER
PKR (000)
Items
2004
2003
2002
2001
2000
Mark-Up/Return/Interest
Earned
9347247
10369994
15385869
17033225
14124242
1886737
1042437
907071
868637
909045
378908
372821
297748
243994
158909
481842
331694
503593
687854
609838
12094734
12116946
17094281
18833710
15802034
Fees, Commission &

Brokerage Income
Dividend Income
Income From Dealing In

Foreign Securities
Total Revenue
120
Less: Mark Up /Return/

Interest Expensed
2057640
2932693
6074682
7544897
7238680
10037094
9184253
11019599
11288813
8563354
Administrative Expenses
7003653
6587369
7549364
7331623
7128658
Provision Against Loans &

Advances
442595
705787
1704944
601799
Provisions For Diminution

In The Value Of Investment
-172876
-150000
62064
46048
150793
50862
512
40000
30000
8771
224432
721105
448999
483943
Gross Profit
Operating Expenses
Other Provisions
Bed Debts Written Off

Directly
121
Less: Total Operating

Expenses
Operating Profit
7432936
7418450
8270981
9587630
8290448
2604158
1765803
2748618
1701183
272906
122
Add: Other Income
Less : Other Charges
Profit Before Taxation
Less: Taxation
Profit After Taxation
1775424
2784859
881746
400140
1085614
176139
937738
529344
147
36725
4203443
3612924
3101020
2101176
1321795
1663449
1382779
1362426
993000
587066
2539994
2230145
1738594
1108176
734729
123
124
LIQUIDITY RATIOS
CURRENT RATIO
Formula Applied
For Calculation
Current Assets / Current
Liabilities
2004
2003
2002
2001
2000
17.14%
14.17%
25.56%
23.16%
17.53%
Current ratio measures the short-term debt paying ability of a firm. The
current ratio has increased from the year 2000 to 2002. It was due to
heavy increase in current assets in these years. The ration decreased in
the years 2003 and 2004 due to decrease in current assets and increase
in current liabilities.
125
NETWORKING CAPITAL
Formula Applied
For Calculation
Current AssetsCurrent Liabilities
2004
2003
2002
2001
2000
195719833 216748953 157025417 131832131 132503334
This ratio shows the relationship between the current assets and the
current liabilities and this ratio was maximum in the 2003 because of
the increase in the current assets as compared to the current liability.
126
SOLVENCY RATIOS
DEBT RATIO
Formula Applied
For Calculation
2004
2003
2002
2001
2000
Total Liabilities / Total

Assets
94.31%
95.92%
95.02%
96.31%
96.79%
The debt ratio measures the proportion of total assets financed by the
firm creditors. The debt ratio of the Bank remained almost same in the
year 2000 and 2001 but it has decreased in the years 2001, 2002, 2003
and in 2004 this decrease was due to decrease in liabilities of the Bank.
Overall Bank has very high debt ratio which means that Bank depends
on its creditors to finance its assets.
127
128
DEBT EQUITY RATIO

Formula Applied
For Calculation
2004
2003
2002
2001
2000
Total Equity/Total
Deposits
4.27%
3.65%
3.45%
3.23%
3.29%
The Debt Equity ratio of the Bank has showed an increasing trend from
2000 to 2004. But overall bank has very low Debt equity ratio.
129
TIME INTEREST EARNED RATIO

Formula Applied
For Calculation
EBIT / Interest
2004
2003
2002
2001
2000
204.28
123.19
51.04
27.84
18.26
Time Interest earned ration shows the ability of a company to cover its
financial charges. Time interest earned ratio has increased from the year
2000 to 2004 especially in the years 2003 and 2004 it showed a very
sharp increase.
130
EFFICIENCY RATIOS:
TOTAL ASSETS TURNOVER
Formula Applied
For Calculation
2004
2003
2002
2001
2000
Total Revenue /Total

Assets
0.97
0.81
0.73
0.59
0.42
Total Asset turnover shows the efficiency of a company with which it uses
its assets to generate revenue. The total asset turnover ratio has
increased from the year 2000-2004. This shows that bank is efficiently
using its assets to generate revenue.This was due to increase in total
revenue of the bank.
131
OPERATING FIXED ASSETS TURNOVER

Formula Applied
For Calculation
2004
2003
2002
2001
2000
Total revenue/ Total

Fixed Assets
31.75%
48.66%
45.45%
30.28%
20.38%
Operating fixed asset turnover shows the efficiency of a company with

which it uses its assets to generate revenue. The Operating fixed asset
turnover ratio has increased from the year 2000-2003 and it decrease in
2004 and it is not a good sign so the management should see this.
132
PROFITABILITY RATIO
GROSS PROFIT MARGIN
Formula Applied
For Calculation
2004
2003
2002
2001
2000
Gross Profit /Total

Income
82.98
75.79
64.64
59.93
54.19
Gross profit margin measures the %age of each sales remaining

after the firm has paid for its goods. This ratio shows the relation
between
gross
profit
and
total
income.
Gross
profit
margin
is
increasing continuously during the last five years. It can meet the
operating expense easily and can earn good profit.
133
OPERATING PROFIT MARGIN

Formula Applied
For Calculation
2004
2003
2002
2001
2000
Operating Profit / Total

Income
21.53
14.57
16.07
9.03
1.72
Operating profit margin shows the relation between operating profit

and total income. Operating profit margin is increasing continuously
during the last five years. It is maximum in the year 2004. It can
meet the operating expense easily and can earn good profit.
134
NET PROFIT MARGIN

Formula Applied
For Calculation
2004
2003
2002
2001
2000
Profit after tax/total

income
21.00
18.40
10.17
5.88
4.64
Net profit margin measures the %age of sales remaining after all expense
has been deducted. This ratio shows the relation between profit after
tax and total income. Net profit margin is increasing every year
and it is highest in 2004 that is 21% which shows clearly that
bank is doing good business and earning more profit.
135
Return on Equity
Formula Applied
For Calculation
Net Profit/Shares Holders
Equity
Return
on
equity
2004
2003
2002
2001
2000
27.04%
28.86%
27.53%
22.14%
16.38%
measures
the
return
earned
on
the
owners
investment in the bank. Generally, higher the return it will better for
customer. Return on equity is maximum in the year 2003 that is
28.86%
but
it
is
decreased
in
2004
that
is
27.04%. So,
management should give attention to it.
136
DIVIDEND PAYOUT RATIO

Formula Applied
For Calculation
Dividend Per
Share/ Earning Per
Share
2004
2003
2002
2001
2000
19.92%
20.60%
44.09%
27.35%
24.75%
The dividend payout ratio shows the portion of current earning per share
being paid out in dividends. This ratio has increased from in the year
2000 to 2002 and this was due to increase in dividend per share. But
this ratio showed a decreasing trend in the year 2003 and 2004 and it
was due to decrease in dividend per share and sharp increase in earning
per share.
137
EARNING PER SHARE

Formula Applied
For Calculation
Profit After Tax /
Number Of Share
Holder
2004
2003
2002
2001
2000
7.53
6.61
5.67
4.57
3.03
Earning Per share shows the amount of income earned on each share.
The Earning per share for the bank has shown an increasing trend
during these years. It means that company is earning good profit as EPS
is continuously increasing.
138
REGULATORY RATIOS
ADVANCE TO DEPOSIT RATIO
Formula Applied
For Calculation
Advances/Deposit
This
ratio
2004
2003
2002
2001
2000
62.42%
45.95%
43.19%
49.55%
63.50%
shows
the
relationship
between
total
deposits and
advances by the bank. It is highest in the year 2000 i.e. 64%. In 2000,
it is decreased and becomes 43%. The decrease in this ratio shoes
that bank is giving more and more advances and increase in
advances is greater than increase in deposits. In 2004 it is 62%
less than 2000, so, management should give attention regarding
this situation.
139
CASH TO DEPOSIT RATIO

Formula Applied
For Calculation
Cash/Deposit
2004
2003
2002
2001
2000
10.89%
11.37%
9.79%
13.75%
9.24%
This ratio is fluctuating during last five years. This ratio is maximum in
the year 2001 that is 13.75% and minimum in the year 2000
that is 9.24%. In 2004 this ratio is 10.89% which means that
10.89% of total deposits is cash.
140
CAPITAL ADEQUACY
EQUITY TO ASSET
Formula Applied
For Calculation
2004
2003
2002
2001
2000
Total Equity/Total Asset
3.62%
2.83%
2.68%
2.67%
2.56%
This ratio measures the extent of equity ownership in the bank. This
ratio has shown an increasing trend from the year 2000 to 2004 and this
is favorable sign for the bank as this provides cushion against the risk of
using debt.
141
DEPOSIT TIMES CAPITAL RATIO

Formula Applied
For Calculation
Deposit/ Total Equity
2004
2003
2002
2001
2000
23.41
27.37
28.93
30.88
30.33
The ratio of deposit time capital concerns both depositor and stock
holder more capital implies a greater margin of safety while a larger
deposit base gives a prospect of higher return to share holders since
more money is available for investment purpose. This ratio has shown a
decreasing trend during the above years and it was due to the reason
that percentage increase in equity was more than percentage increase in
deposits.
142
DEPOSITS TO TOTAL LIABILITIES:

Formula Applied
For Calculation
2004
2003
2002
2001
2000
Deposits/Total liabilities
89.95%
80.97%
81.76%
85.77%
80.40%
Deposit to total liabilities ratio shows the portion of deposits in the total
liabilities. This ration has increased in the year 2001 but it decreased in
the years 2002 and 2003 and it again increased in the year 2004 which
shows that deposits for bank has increased in this year.
143
144
STRENGTH
The major strength of MCB is the large branch network all over the
country. Because of its well-established local branch network and
some presence in international market, MCB attracts all segments
of economy.
MCB has unique product and services as compared to others banks.
The staff members are well equipped with the tools of personal
relations and majority of the staff is young and energetic.
MCB has largest ATM network in 41 cities with 317 ATM all over
the country
MCB was the first bank who introduced the Rupee Travelers Cheque
in Pakistan and its RTC are being used through out the country.
MCB has been a pioneer among banks in Pakistan and was the
first privatized bank so it has gained the confidence and trust of
the customers.
MCB is private bank so it does not face any Political influence.
145
MCB has the largest online branches in the country to facilitate

most of its customer.
MCB ATM, Master Cards and Credit cards are using through out the
country.
Most of MCB branches are computerized and MCB is investing

highly on technology to facilitate its customers.
MCB have strong management. The new management comprises of

well-known names in the country, business and industry. Bank
can benefit from their vast experience.
MCB has won Euro Money Award and Asia Money Award 2005 for
Best Bank in Pakistan.
MCB offers facility of Mobile and Virtual Banking to its customers.
146
WEAKNESSES
After downsizing there are less employees in the MCB and in most
of branches one employee is working on two seats because of this
work load, employees are leaving this organization.
There is the small increase in the pay of the employees in MCB as

compared to other banks because of this in MCB employees are
unsatisfied.
MCB is reducing its branches. This can cause negative effect on

working employee.
There are some branches of MCB which are not computerized.
In some cities the number of ATM are greater than the requirement
and some Cities are missing them.
Although MCB have some branches in foreign but it lacks

international links, which are most important factors for providing
Import & export, related services and attracting top category client.
MCB Rupee travelers Cheque are market leaders since 1995 but it
is useable only in Pakistan.
147
MCB is the private bank most of the customers prefer to deposit

their money in Government banks.
MCB has not the good system to recover its bad debts.
MCB do not have any proper induction program. In addition to that

most of the graduates are being hired for officers grade while
Masters Degree holders are being hired as contractual employee
this creates dissatisfaction among highly educated employee and
they tend to leave this organization as soon as they find some
better opportunity.
OPPORTUNITIES
MCB has opportunity to install ATM all over the country to provide
24 hour cash facility to its customers.
MCB has opportunity to online all its branches to facilitate its

customer.
MCB can hire the fresh MBAs instead of graduates who are
working on old basis and dont know the use of new technology.
148
As the Government is trying to increase industrialization in

Pakistan MCB has opportunity to attract business community by
offering different product and services.
MCB can attract customers by offering them high profit rates and
introduced new product and services.
Today leasing business is on of the potential area for banks in

Pakistan. MCB has opportunity to increase its leasing business.
THREATS
Many commercial banks and non-banking financial institution are

coming in the market with new and innovative ideas. New
techniques and technologies are threatening the bank to take steps
towards these changes
Other private banks are providing some services free of cost while
MCB is charging some amount because of this customer prefer
other banks. For Example charges on online transaction are very
high as compared to other Banks.
149
Foreign banks are increasing in Pakistan, which are offering new

products and services. This is a threat for MCB.
Political uncertainty is also a threat for MCB. Because of this

foreign investors are afraid of investing in Pakistan.
Terrorism is also a threat for the bank as it reduces the foreign

investment in the country.
Downsizing is also a threat for MCB employee as they feel insecure
about their job.
Competitive salary packages offered by other Banks to their
employees are also a threat for MCB. Due to this reason MCB is
not able to retain its employees for a long time. They have to make
new inductions very often and this is costly procedure.
150
151
SUGGESTIONS
MCB should reduce the service charges on PLS and Current

Accounts.
All the branches should be online. By this E-Commerce can be

increased in Pakistan.
MCB should increase the salary package for its employees as its
salary package is not competitive with other Banks. This will help
to retain the employees in the organization. It will create
satisfaction thus will increase the output.
Quality customer service is very important in banking. MCB can

improve the customer service by giving proper training to its
employee.
More Foreign branches should be opened instead on relaying on

local branches. MCB has only four foreign branches their number
should be increased.
MCB should hire people whose education are related to banking

fields instead of hiring graduates by this standard of bank will
increase.
152
In branches workload should be divided equally so that no body

feel burdened.
The management should follow equal employment opportunity

especially in case of women and special people. Nepotism should
be avoided.
An effective recovery system should be adopted in order to reduce

the increasing bad debt.
MCB should increase its product line in order to compete with

foreign banks.
Due to downsizing employee feels insecure about their job. Job

security should be provided to employee so that they concentrate
on their work.
153
154
155
MCB financial position is very strong. It is the honor for MCB that
PACRA the leading rating agency of Pakistan has given MCB a long term
rating of AA which is one of the best for any bank in Pakistan.
In 1991 at the time of privatization the total deposits of MCB were 27.69
millions rupees but now total deposits exceeds to 219.96 millions which
shows tremendous performance of MCB. This figure shows the
confidence of customers on the products and services of MCB.
In 1996 the total number of branches was 1332 but now in 2004 they
are reduced to 946. The reason for lowering down the number of
branches is that these were causing operational losses. The bank only
remains with those branches which are going profitable.
MCB knows the particular needs of its diverse customers based
and continuously develops products and services that fulfill their needs.
MCB is pioneer in introducing RUPEE TRAELLER CHEQUE to provide a
safe way for purchasing and other business transaction to its customers.
MCB has the largest network of Automated teller machine which is giving
the facility of 24 hours cash access service over the last few years.
MCB has invested heavily into strengthening its technology
backbone during the last few years. More than 70% computerized
branches, 319 online branches and 217 ATM placements show the MCB
relation with technology.
At the end I can conclude that MCB has shown a remarkable
progress and I can say without any confusion that MCB is preferred
156
provider of quality financial service with responsibility and profitability

and to be best place to work.
157

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Internship Report on MCB

MCB is incorporated in Pakistan and engaged in commercial banking. It

General banking operation department

Credit operation department

Foreign exchange department

General banking department is concerned with daily operation of the

transferring of funds from one branch to another or from one account to

Department of Management Sciences

Internship Report on MCB

mobilization guarantees shipping guarantees , bid bonds and security

Department of Management Sciences

Internship Report on MCB

Department of Management Sciences

Internship Report on MCB

Banks plays an important role in the economy of any country. They

Department of Management Sciences

Internship Report on MCB

There were 487 offices of scheduled banks in the

territories now constituting Pakistan.

An Expert committee was

appointed. The committee recommended that the reserve bank of India

MUHAMMAD ALI JINNAH inaugurated the State Bank of Pakistan on

Department of Management Sciences

Internship Report on MCB

Despite the effort

Government of Pakistan inscribed notes of the value of Rs. 51.57 corers

Internship Report on MCB

networking of banks branches now covers a very large segment of

Department of Management Sciences

Internship Report on MCB

Department of Management Sciences

Internship Report on MCB

Muslim Commercial bank was brought into existence in Calcutta, on

Muslim Commercial Bank shifted its head office to Dhaka. Late on in

Department of Management Sciences

Internship Report on MCB

Commercial and Consumer Banking. Corporate clientele includes public

Internship Report on MCB

responsibility and to be the best place to work".

Department of Management Sciences

Internship Report on MCB

MCB-YESTERDAY AND TODAY:

Internship Report on MCB

takes pride in being conferred with Euromoney's prestigious award of

Department of Management Sciences

Internship Report on MCB

Department of Management Sciences

Internship Report on MCB

Department of Management Sciences

Internship Report on MCB

Mian Umer Mansha

Aftab Ahmad Khan

Chief Financial Officer

Department of Management Sciences

Internship Report on MCB

M.Yousuf Adil Saleem & Co. Chartered Accountants

Registrars and Share Registration Office

Department of Management Sciences

Internship Report on MCB

Department of Management Sciences

Internship Report on MCB

Department of Management Sciences

Internship Report on MCB