final prresentation
TRANSCRIPT
MCB BANK LIMITED
Internship Presentation MCB Bank Ltd.
Undertaken By
AHSAN UD DIN
G1F05MBAP0429
Supervised by:
Mr. Suleman Anwar
History of MCB• Incorporated in Calcutta, India under the Indian
Companies Act, VII of 1913 on 9th July, 1947
• Commenced its business from 17th August, 1948 • From Calcutta, India Head Office was shifted to Dhaka,
Bangladesh in August 1948 and from Dhaka to Karachi on 23rd August, 1956
• Nationalized in 1974
• Privatized on April 08, 1991•
Vision & Mission
• Vision:
Challenging and changing the way you bank.
• Mission:
MCB Bank’s team of committed professionals
is dedicated to maintaining long term
customer relationships through outstanding
service and convenience.
Corporate InformationCorporate Information
Structure
938 Branches
16 General Managers
39 Regional Managers
2 Business HeadsCommercial Banking Group
(North & South)Consumer Banking Group
Head of Retail Banking Group
ACHIEVEMENTS • Euro money Awards
– Best Bank 2006– Best Bank 2005– Best bank 2004– Best Bank 2003– Best Bank 2001– Best Domestic Bank 2000– Asia Money Awards– BEST Domestic commercial Bank 2004 & 2005
Our Strengths
• First international debit card. Acceptable over 5 million POS (Maestro) and over 660,000 ATMs (Cirrus)
• 900+ branches nationwide.• Staff strength of over 9000.• Over 4 million customer base.• 870 automated branches.• 540 online branches in 65 cities.• Largest ATM network (280) of a single bank, over 35
cities.
Our Strengths
• One of the most technologically sound bank.• Leader in RTC.• Host of MNET Switch-14 member banks (410 ATMs)• Largest issuer of plastic money-600,000 ATM/Smart Cards.• MCB Towers, the tallest building of Pakistan.• 24-hour dedicated Call Centre.• More than 27,000 individual virtual banking users.• More than 130 corporate virtual banking users.
Practical Work
Operations Department
Operations Department
1. Reception
2. Account Opening
3. Clearing
4. Remittances
1. Reception
• Fill the pay-in-slips for the deposit of cash• Fill the pay-in-slips for the deposit of cheques• Fill the debit card application forms• To give any other information regarding MCB Bank
LockersLockersIt is the facility provided by the banks for the safe custody of valuable things of the
customers.
Issuance of the Locker• Application form MF-19
• Specimen signature card
• Either / survivorship from MF-19E (only if locker is in joint account names)
Payment of Rent Small Rs = 1000 P.A Medium = 1500 - Large = =2500 -
• Security deposit is Rs.1000/-(refundabal)
Types of Accounts• Individual Account
• Joint account
• Proprietorship account
• Partnership account
• Companies account
Nature of Accounts• CD Current• BBA (basic banking account)• PLS Saving• Khushali Bachat Account• 365 days GOLD • Foreign currency• Term Deposit• MCB Smart Saving Account
Basic Requirements• CNIC (Original + Photocopy)• Account Opening Form (AOF)• Specimen Signature Card• Know Your Customer (KYC) Form• Undertaking to Maintain Minimum Balance• An Introduction (Existing A/c holder) • The customer will sign the AOF.• The AOF along with relevant documents will be
obtained and forwarded to MO for his approval.
Account Opening Form
Four pages of Account opening Form.
(Along with the KYC Form).
SPECIMEN SIGNATURE CARD
Form used for the name of the Account Holder and his/ her signature
AccountsDormant Accounts
Current account not operated for 6 month and saving account if not operated for one year become dormant accounts.
Inoperative Accounts
Current accounts if not operative for two years & saving for three years become inoperative.
Unclaimed Accounts
If current / saving accounts remain inoperative for three years the same should be transferred from inoperative to unclaimed accounts. If these accounts remain unclaimed for ten years then become the property of State Bank of Pakistan.
Clearing Department
Clearing Department
"The transfer of funds from a branch of bank to the other branch of the same bank or the other bank on
which the instrument is drawn, without involving cash through "State Bank's clearing house"
Instruments
• Cheques• Demand Drafts • Pay Orders• Traveler’s Cheques
Types of Clearing
• Inward Clearing• Outward Clearing
– Local Clearing– Outstation Clearing
• Cheque Returned
• Outward Clearing:– When the cheque from Bank goes to another bank for clearing then it is called
outward clearing.
Outward clearing > Inward clearing (favorable)
• Inward clearing:– When the cheque comes in Bank for clearing is called inward clearing.
Inward clearing > Outward clearing (Against)
Clearing
Items necessary on Clearing Instruments
• Crossing Stamp• Clearing Stamp• Date (which should be current)• Endorsement Stamp on Backside• Amount in Figures and Words should match • Signature Verification
REQURED STAMPS
CLEARING
Inward Outward
Final Voucher Prepared
Bundle Cover
Separate Deposit Slips and Cheques
Posting
Stamping
Scrutiny of Cheques and Deposit Slips
Cheques Deposited
Make Bundle of 50 Cheques per List
Hand Over to NIFT Agent
Outward clearing Process
CLEARING
Outward Inward
Send to Account Department
Scrutiny of Cheques and Stamps
Cheques Withdrawals
Cancellation
Posting
Returns Marked
Hand Over to NIFT Agent
Transfer Stamp Attach Return Memo
Return Voucher Prepared
Inward Clearing Process
Cheque Return Memo (SF-16)
RemittanceRemittance is the monitory transfer
from one place to another place or from one country to another country to fulfill the requirements of the customers by the order of the customer.Remittance deals in these functions:
Demand DraftPay Order
Demand Draft• A draft or bill that is payable on demand or upon
presentation. Also called “demand draft.”Parties Involves
1- Purchaser2- Issuing or Drawing Branch3- Drawee Branch4- Payee/Beneficiary
Procedure for Issuance of DDDD Application formName of the payee should mentionedSigned by the purchaser
Commission and charges 0.1% commission75 postageFED
Pay Order• Pay order is an instrument through which
payment can be made from one bank to another bank within city.
• It is issues by and drawn upon and payable by the same branch of the bank• It is neither transferable nor negotiable and as such it is payable to the payee named therein
Parties to a Pay order
• Purchaser• Issuing/ Payee branch• Payee
FinancialAnalysis
Financials
• Profitability more than tripled in 2005.
• Generated Rs.8.90 billion as profit after tax, assets have grown to Rs.298.70 billion.
• Total deposits have increased to Rs.229.3 billion, advances increased by over 30% to Rs180.30 billion.
• PACRA long term rating "AA“, short term rating "A1+“.
• Bank's return and profitability reflects its pro-growth mantra, proactive approach to growth and profitability.
Financial Analysis
• Net Profit Margin:2006 2005
1.8:1 1.46:1
• Income/ Expense Ratio:2006 2005
4.01:1 3.12:1
Financial Analysis
• Earning Per Share:• 2006 2005• 23.4 21.36
• Market Value Per Share:
• 2006 2005• 246.1 167.8
Earning Assets to Total Assets
84.50%
87.44%
83.00%
84.00%
85.00%
86.00%
87.00%
88.00%
2006 2005
YEARS
Earning Assets to Total Assets
2006
2005
Earning Assets / Total Assets
2005 2006
87.46% 84.58%
• Net Income / Earning Asset
4.98%
6.39%
0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%
2005 2006
YEARS
Return on Earning Assets
3-D Column 1
3-D Column 2
2005 2006
4.98% 6.39%
LOAN LOSS COVERAGE 2005 200644.7 % 63.7 %
44.7
63.7
0
10
20
30
40
50
60
70
2005 2006
Problems Lack of co-ordination among the staff
members. Poor relationship with customers. Lack of authority and responsibility. Lack of motivation and fringe benefits. Lack of highly professional educated
personals. Lack of training to the staff members. No good dealings with customer.
Lack of learning environment No well established parking space. Lack of efficient services. Lack of segregation of the department No time management Machinery not up to date (inefficient) Lack of marketing expertise
Problems
Suggestions & ReconditionsProper Research & Development Providing learning environmentBuild Coordination between departmentsTraining and development on continuous
basisEstablished Marketing campaign on regular
basisIncrease portfolio for SME customerPrecautionary plan to protect from new
competitors
Suggestions & ReconditionsExpansionProper reward and recognitionEfficient and effective marketing campaignAdvanced management information systemEncouragement of ideas from employeesTechnological AdvancementBank should provide the training to new
staff as well as old staff.
Suggestions & Reconditions Bank should install the broad band technology. Bank should be coordination among staff. Bank should be the good dealing with the
customer. Bank should provide effective & efficient
services. Bank should provide the learning environment. Bank should install ATM machine in every
branch. Bank should expand their product line. They should develop their Research &
development department.