INTERNSHIP REPORTON

MUSLIM COMMERICAL BANK LTD.

Internsip Report submitted to the Faculty of Management &

Administrative Sciences in partial fullfilment of the Requirement For the

Degree of Masters of AccountencyBY:Haseeb waheedRoll No: 12032720-080Program: Masters of commerce and accountencySession: (2012-2014)

UNIVERSITY OF GUJRAT

Date of SubmissionName of Prog. ________________ ____________

Signature of Program Coordinator_____________

2. Acknowledgment

The guidance, the helping hand, the support, the inspiration of all those who

have helped me in completion of this report can’t be compared to anything; perhaps

that’s the reason why I treasure them, the most.

I would like to take this opportunity to thank my Supervisor at the organization

Mr. M. hamza, the MCB gujrarat branch, who provided continuous guidance and

support during my summer internship programmed. I would also like to thank everyone

at MCB branch team for helping me in every possible way and making my internship a

wonderful experience in practical.

3: table of content

.5.1. Introduction: 1. 5.2 overview of the organization 1. 5.2.1 brief history : 1. 5.2.2 nature of business: 2. 5.2.3 business vloume and Rewards: 2. 5.2.5 product and services: 6. 5.2.6 contribution of organization : 11. 5.3 Organization Structure: 12. 5.3.1 hierechy chart 12. 5.3.2 Number of employees: 13. 5.3.3main offices 13. 5.3.4 Departmental Description: 14. 5.3.5 Comments of organization structure16.PART II5,41 Internee office 17 5,4.2 detail of Supervisor 17. 5.4.3 Weekly timetable 17. 5.4.4 Department description work : 17. 5.4.5 task work 18. 5.4.6 Summary of Learning 31. 5.4.6.1 skills and learning 31. 5.4.6.2 responsibilities undertake: 33. 5.4.6.3. toward career goal 34. 5.4.6..4internship vs. class room 34.

6.1. Summary 35. 6.2 General observation 37. 6.3 SWOT: 38. 7 Recommendations 40. 8. References 43.

4. Executive summaryEvery student of Master in Commerce at Department of commerce and

Accountancy University of Gujarat has an essential requirement to do internship in any

of the well reputed organization. The internship program helps the student’s to increase

their potential and gives exposure to the market and to apply what we have so far

learnt. Student can learn more through internship program to enhance their working

abilities to compete in the market; assume responsibilities; cooperation; team work and

hallmarks of modern management.

I am a student of Masters in Public Administration and I got a chance to join the

“MCB Pvt. Limited” to perform my internship. During the internship program, I learned

about the working of the stock market and the basic functions professionally.

This report is about my internship, which started from August-2013 to

September-2013. During my internship, I was proficient to learn practical aspects of

business environment and get good working experience with a team of skilled

professionals. I worked in different department of MCB, GENERAL BANKING

It is backbone of banking It is one of the major department of MCB. It consist of

following departments:

Accounts Department

Current Department

Remittance Department

Cash Department

The banking structure in Pakistan comprises of the following types, State Bank of

Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative

banks, Specialized credit institutions. The state bank of Pakistan is the Central bank of

the country and was established on July 01, 1948. The network of bank branches now

covers a very large segment of national economy. The State Bank of Pakistan issues

the shares of these periodically. Bank employees and other common peoples can also

purchase these shares and earn profit. In 1956, MCB transferred its Registered office

to Karachi, where the Head Office is presently located. In April 1991, MCB became

Pakistan’s first privatized bank.

The corporate branch at Shahrah-e-Faisal Karachi (SFK) branch is the corporate

branch of MCB in Karachi. The bank is using SWIFT for transfer of information about

imports and exports. MCB SFK branch has Currently Following three Departments

General Banking Department, Advances Department & Foreign Exchange Department.

To open an account the customer has to meet the general banking manager with

an introducer. The procedure begins with the punching of account opening form to the

customer file i.e. customer’s master file. Before closing any account, bank send letter to

the account hold for informing him that his account is going to be closed. There is need

an approval form higher authority to close any account. Current deposits are those

which are payable to bank whenever demanded by the customer. Bank does not pay

any profit on current deposits. The following are the financial products/services of MCB

Malay Mail Scheme, PLS Account, Saving 365 Account, Capital growth certificate

scheme, Fund Management Scheme, Khushali Bachat Account, Term/ Fixed Deposits

and others like night banking, credit cards, traveler cheques.

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Part 1 5.1 IntroductionMCB is one of the leading banks of Pakistan with a deposit base of about Rs.

280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon

earned the reputation of a solid and conservative financial institution managed by

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

banks following the Bank Nationalization Act 1947.

The Bank has a customer base of approximately 4 million and a nationwide

distribution network of 1,700 branches, including Islamic banking branches, and ATM’s.

During the last fifteen years, the Bank has concentrated on growth through

improving service quality, investment in technology and people, utilizing its extensive

branch network, developing a large and stable deposit base.

5.2 Overview of the organization 5.2.1 History MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid

foundation of over 50 years in Pakistan, with a network of over 1700 branches.

Eighteen 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.

5.2.2 MCB now focuses on three core businesses namely Corporate,

Commercial and Consumer Banking. Corporate clientele includes public sector

companies as well as large local and multinational concerns. MCB is also catering to

the growing middle class by providing new asset and liability products. MCB looks with

confidence at year 2005 and beyond, making strides towards fulfillment of its mission,

(2)"to become the preferred provider of quality financial services in the country with

profitability and responsibility and to be the best place to work".

5.2.3Rewards and business volume Business volume

Rupee in (000)

Profit before tax 26,253,075

Profit after taxation 16873175

Total assets 567,552,613

Total liabilities 488,348,404

Deposits 431,371,937

Investment 213,060,882

Awards of MCB

MCB has

become the only

bank to receive the

“Euromoney ”

award for the fourth

time in the last five

Year 2012

The

Asset Triple

A

Best Domestic Bank – Pakistan

Euro

moneyBest Bank in Pakistan

NFE

H

CSR Business Excellence Award “Best Media

Coverage”

ICAP

and ICMAP

2nd Best Corporate Report Award 2011-

Banking Sector

World

FinanceBest Commercial Bank – Pakistan

Pakis

tan Centre

for

Philanthropy

PCP Corporate Philanthropy Award

(3)Year 2011

CFA

Association

Pakistan

Most Stable Bank of the Year

CFA

Association

Pakistan

Best Bank of the Year

Euro

moneyBest Bank in Pakistan

ICAP

/ ICMAP1st - BCR Award 2010 - Banking Sector

SAFA Joint 2nd Runner-up for BCR 2010

Year 2010

The

Asian

Banker

Strongest Bank in Pakistan

The

Asian

Banker

Leadership Achievement Award

MMT Best Bank Led MMT Service

years for being the “Best Bank in Pakistan”.

Best Bank award 2008

Best Bank award 2006

Best Bank award 2005

Best Bank award 2004

Best Bank award 2003

MCB also won the

Best Domestic Bank in Pakistan awards 2000

In addition, MCB also has the distinction of winning the “Asia Money”

awards for being "The Best Domestic Commercial Bank in Pakistan".

Best Domestic Commercial Bank award 2005

Mission:

“To become the preferred provider of quality financial services in the country

with profitability and responsibility and to be the best place to work.”

Mission Statement:

“We are a team of committed professionals, providing innovative and efficient

financial solutions to create and nurture long-term relationships with our customers.

In doing so, we ensure that our shareholders can invest with confidence in us.”

(5)Vision Statement:“To be the leading financial services provider, partnering with our customers

for a more prosperous and secure future.”

GENERAL PROFILE

PRINCIPLES OF PERFORMANE

Customer Focus:Over the years MCB has developed strong relationships with its customers by

understanding their needs and treating them with respect, dignity and importance.

The driving force behind its commitment and services is its focus on customers,

ensuring that it not only meets, but exceeds their expectations.

Quest for Quality : MCB strives to achieve excellence by ensuring that every moment of our

time is spent in adding value, making sure that we do things right, first time, and

every time. With this quest for quality, MCB has always taken initiatives in

bringing banking into a new arena; from cash to the convenience of plastic; from

branch banking to internet banking and from face-to-face customer interaction to

online accessibility.

Employees Respect : MCB encourages diversity and treat each of our employees with fairness.

MCB gives constructive feedback for their continuous development and seek

suggestions from all employees for further improvement. The bank ensures that

quality performance is acknowledged and rewarded and exercise utmost

responsibility in decision-making with regards to our employees.

Team Based Approach: (6)MCB believes in achieving its Mission and Vision by working together as a

combined group. MCB treats its employees as its internal customers and ensure

that the requirements of internal customer focus are always met. Equipped with

in-depth product knowledge, and recognizing the strengths in each individual, the

bank strives for optimum-results from our co-workers and bringing out peak

performances by working towards common goals and objectives in today's

dynamic banking environment.

Good Corporate Citizenship : MCB seeks to continuously improve the quality of life in our communities.

The bank realizes that it has a responsibility to the society in which it operates

and it seeks ways of playing a positive role for the betterment of the community

at large for a progressive environment, better living and a brighter future.

5.2.4 PRODUCTS AND SERVIESCommercial Banking

Deposit Accounts: Basic Banking Account : A simple account to produce the habit of saving for beginners like students.

The account can be opened with only Rs. 1000, no minimum balance required, no

any monthly or annual charges applicable on this account, two deposits and two

withdrawals can be made in a month. Also you can avail the facility of MCB ATM

card and MCB smart card.

Pak Rupee Current Account:MCB’s 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.

(7)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

Pak Rupee Savings Account:MCB’s Pak Rupee Savings Account offers you attractive returns on your

Pak Rupee investment with a minimum balance of Rs. 10,000.

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. You can also use MCB Smart card and Locker Facility at economical

charges.

Pak Rupee Term Deposit: MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you

choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year

term deposits.

Saving 365 The MCB Saving 365 calculates profits on a daily product basis

and gives you the facility of unlimited withdrawals.

Foreign Currency Savings Account:MCB’s Foreign Currency Savings Account offers you attractive returns on

your Foreign Currency investment. You can invest in any of the four currencies i.e.

US Dollar, UK Pound Sterling, Japanor Euro Your foreign currency account is

exempted from Zakat and withholding tax.

Foreign Currency Current Account:

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MCB’s Foreign Currency 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.

MCB Foreign Currency Term Deposit:MCB Foreign Currency Term Deposit gives a higher rate of return. It gives the

choice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 year

term deposits.

Smart Dollar Account: The Dollar Khushali Account, a Dollar based account was introduced in 1993 at

selected MCB Bank branches. Today, you can open a Smart Dollar Account at over

200 branches in Pakistan with a minimum amount of USD 10,000.

Business AccountWith MCB Business Account you can avail higher number of free transactions with

higher balance. The account can be opened with Rs. 50,000. You can make free

Deposits and Withdrawals from all nation-wide branches.

Loan Products:

MCB Business Sarmaya:“MCB Business Sarmaya” is the best Running Finance facility against your

residential property which empowers you to manage your business dealings better.

So act today and get MCB Business Sarmaya and thus improve your business, avail

lucrative opportunities and expand your business, with absolute satisfaction of cash

flows.

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MCB Car4u:Life is like a chess board. You plan your career options. You analyze your business

moves. But when you really want to improve your life, you make a power move.

MCB CAR4U Auto Finance is the power move that assists you in more ways than

you ever imagined. It is affordable, with lowest mark up 16%, flexible conditions,

easy processing and above all, no hidden costs.

MCB Pyara Ghar:Some destinations require a long wait. Like waiting for a home of your own. But with

MCB Pyara Ghar it is now easy to step into your home and start living a real life.

MCB Pyara Ghar is an ideal Home Finance from your own bank that lets you

Purchase, Renovate or Construct your home the way you have always wanted.

Having your own home was never so easy.

Easy Personal Loan:MCB Easy Personal Loan provides you with the financial advantage to do things

you've always wanted to but never had the sufficient funds for. Take that much-

needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance a

better education for your children.

MCB Master Card:Since the beginning of time, people have tried to find more convenient ways to pay,

from gold to paper money and checks. 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

checks as the money of the future.

MCB Rupee Traveler's Checks: (10)Corporate Banking:

Cash Management Services:MCB’s network of over 1700 branches in Pakistan enables it to collect and disburse

payments efficiently with its cash management services. This also enables it to offer

you a choice of paper based or electronic fund transfer solutions including collection

amounts, cross branch on-line transactions etc.

Working Capital Loans:Based on the customer’s specific needs, the Corporate Bank offers a number of

different working capital financing facilities including Running Finance, Cash

Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailor- made

solutions are developed keeping in view the unique requirements of your business.

Term Loans:MCB offers Short to Medium Term Finance to meet capital expenditure and short

term working capital requirements of our customers. The loans are structured on the

basis of underlying project characteristics and cash flows of the business.

Trade Finance Services:Under Corporate Banking MCB offers trade finance services that include an entire

range of import and export activities including issuing Letters of Credit (L/Cs),

purchasing export documents, providing guarantees and other support services.

Online Services:MCB ATM Services With a solid foundation of over 50 years in Pakistan, with more than 750 automated

branches, 269 online branches, over 222 MCB ATMs in 41 cities nationwide and a

network of over 12 banks on the MNET ATM switch, MCB is positioned at the

forefront of the banking industry in Pakistan. This success has been possible

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Because of a never-ending drive to achieve higher levels of excellence, constantly

striving to raise the level of performance.

MCB Mobile Banking:At the forefront of technological excellence, MCB proudly introduces MCB MOBILE

BANKING. The convenience of accessing your account balance information and

mini statements whenever you want or wherever you may need them, with comfort

and peace of mind.

MCB Call Center:Keeping up with banking services can be tedious but not with MCB 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 convenience, eliminating the need for you to make unwanted trips to your

branch.

5.2.6 For ecomice development start Islamic Banking:Deposit Schemes : For customers who are looking for a deposit opportunity where they can purse their

funds and reap halal returns on it, we offer the following products:

Al-Makhraj Saving Account

Al-Makhraj Ianat Account

Al-Makhraj Term Deposit

Fund Based Facilities

Ijarah Products

MCB’s Islamic Ijarah, analogous to the English term 'leasing’, is based on the ‘Ijarah wa

Iqtina’ concept which means the sale of the asset to the lessee after the Ijarah has

matured. Under this scheme, MCB will be the owner of the asset, and the customer

(lessee) will be given the asset to use for a certain period of time in return for monthly

rental payments. MCB will give a separate unilateral undertaking that it will offer to sell

(12)the asset to the customer (lessee) at the maturity of the Ijarah agreement at a price that

may be equal to the security deposit amount, hence the term ‘Wa Iqtina’.

Types of Ijarah:

Car Ijarah

Equipment Ijarah

MCB Rupee Traveler's Checks 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 Checks- The safest way to carry Cash.

5.3Structure 5.3.1 Organizational HierarchyPresident

Senior executive vice president

Executive vice president

Senior Vice president

Vice president

Assistant Vice President

Clerical Staff Non-Clerical Staff

1) Cashier 1) Messenger

2) Technical Staff 2) Dispatch Rider

(13)The Organizational chart within deptt. & in different offices.

Head Office Regional Office Zonal Office Branch

Divisional head Regional Head Zonal Head Branch

Manager

5.3.2 Number of employee

MCB has 9910 number of employees

5.3.3 Main office

1: registered office; MCB building, f-6/g-6 Jinnah Avenue, Islamabad

2: principle office: MCB tower 1.1. Chundrigar road, Karachi.

3: registrars and shares registration office. THK ASSOICIAT (PVT.)LTD.

Shares department ground floor,

Modern motors house

Beaumont road, Karachi.

Al Ghouse main jail road Lahore

5.34 Department Introduction

Audit RAR group

Banking operation group

Business development &new initiative

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Consumer banking group

Commercial branch banking group

Compliance &control group

Financial control group

Human resource management group

Information technology group

Islamic banking group

Project management group

Risk management group

Strategic planning &investment group

Special assets management group

Treasury and FX banking group

Wholesale banking group

Audit &RAR group:

Code of corporate governance in Pakistan mandates establishment of

internal audit and function for every listed company .internal audit is an

independent, objective assurance and consulting activity designed to evaluate

and improve an organization’s by bringing a systematic, disciplined approach to

evaluate and improve the effectiveness of risk management, control and

governance process, the function Is performed by competent Banking operation group:

This group is a support to all transactions and financial functions of the

bank.

All back-end processing and dealings are routed to different areas of this

mammoth group. The group provides help to commercial banking and consumer

banking by handling cash and cash transactions, issuing various instruments like

pay orders and demand drafts .they also support treasury by book/record

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Keeping and processing of all trade and finance operations .in additions to

this ,they also provide general services, facility management of the banks

expense lines and procurement.

professionals called the internal auditors. Business development &new initiatives: Every day , organizations comes up with new and invigorating product /services

to attract customers .in order to compete with such rapid changes ,fast growing

market and stiff contenders ,we have dedicated an entire unit whose job is to

monitor such transformations and develop new business strategies in order to

keep our business up to mark

Consumer banking group: This group primarily meets the needs of individual customers .it deals with selling

marketing and managing consumer products and providing various services to its

customers.

The consumer banking group targets the consumer market their sales and

product development is completely managed by specific teams that are wholly

dedicated to the specific product. Each team has the responsibility of making

their respective product efficient .competitive and user friendly .the product being

offered by mcb bank

Unsecured assets: MCB visa (credit card) Commercial branch banking group: This is the largest business group existing in the bank .therefore due to its sheer

size; it has been divided into four portfolios, north, south central and east.

The whole group comprises of over 1000 online branches, about 20-30 branches

(depending on the area) form a region and further 2-3 region from a circle .every

circle office is managed by a general manger. Currently there are 14 circle offices

present in our existing network.

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The major function of this group is to manage assets and liability based retail

product .more than 90% of the bank ,deposit base is managed by this

group .funds generated by these branches via deposits are utilized by various

business groups to give advances to customers. Excess funds are placed by

treasury in the money market as well to earn higher spreads .the funds

generated by the bank in shape of deposits are used to meet financing needs of

our customers

5.35: structure is more centralizer, but organic as well , Management of

Human Resources has been one of our core focus areas. MCB is committed towards

attracting, retaining and motivating outstanding people. Challenge for MCB is to provide

an environment in which employees can better realize their potential. The Bank

introduced 'reward for performance' where high potential officers were identified and

rewarded accordingly. In view of the competitive environment, the Bank is focusing on

performance and introducing a more robust performance management system.

MCB is also strongly committed to training its staff at all levels.

The Bank will also be implementing the full suite of the latest version of

SYMBOLS Version 8. MCB Bank will run SYMBOLS E-Finance modules to deliver

personalized services to its customers over multiple delivery channels, while SYMBOLS

Enterprise Operations Center will serve as its core banking transaction-processing

engine. By implementing SYMBOLS, MCB Bank aims to raise the level of its customer

service and its time to market in new product offerings for its three core banking

businesses in Corporate, Commercial and Consumer Banking - retaining its market

leadership as Pakistan's progressive Bank.

Part II

5.4 Personal working and learning Experience 5.41 Brief introduction of branch: This chapter is related to my personal

working and learning experience during my internship at MCB. I join MCB on 05 of

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August, 2013. During internship my office timing is 09:30am to 05:00pm. MCB is

a huge organization with different department, Mcb branch is located in kucharay road,

Gujarat, and it was an online branch.

5.42 @ 5.43 Weekly Timetables: The following activities have been

done during the time period of internship. The activities given below are on the weekly

basis. Mainly during the internship I worked in all the departments and learned the

working and procedures that are necessary for the processes.

I tried my best to learn each and every activity of this branch. Following is my

week wise learning at MCB

Week Detail Department supervisorFirst Start on 05

Aug 2013

banking intro MR.MALIK

RAIZ

Second Start on 12

Aug 2013

Current banking MR.SALMA

N RAZA

Third Start on 19

Aug 2013

Cash

department

MR.FAIZAN

SALMAN

Fourth Start on 26

Aug 2013

Remittance

department

MR.ALI

BUTT

Fifth Start on 02

September 2013

same SAME

Sixth To

Eight

Start on 09

September 2013

Accounts

department/Suggestio

n

MR.HAMZA

RAZA

5.4.4:Weak 1st start from 05 August 2013)In the 1st of my internship, I obverse the current banking, like

Basic accounts of banking

Process of accounts opening

Observed basic business process

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Observed movement of customers and Employees inside the Branch

Learned basics of Account Opening

Opened Accounts of GOVT employed persons

Opened PLS saving Accounts

Opened BBA accounts

Opened Student account

Worked as CSO(Customer Service Officer) because CSO was on leave and

performed the following activities:

o Attended phone calls

o Attended customer inquiries

o Received ATM forms

o Received and entered daily DAK

o Filled cheaque book requisition slips

Second week: (start from 12 August 2013)In my second week of internship I worked in cash department, In the second

week of my internship I learned about Cheaque book, Debit card and Alico products.

CURRENT DEPARTMENT This department maintains all formalities of the accounts and account holders

like it account name, account holder’s name, code number and full address.

Different cheques debit and credit voucher come from different departments like

Token, Clearing, Remittances, Cash, Foreign Exchange, Advances and posted

against different accounts.

A working Journal called Manual is prepared daily which shown the balance

accounts of all parties. Mark-up and profit are calculated daily. That would be

debited at credited from or to account holder’s account after specific period of

time.

Markup is debit from the account after every three month profit is credited to

accounts after every six month. New accounts are also opened in this

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department. The fund deposited in the MCB bank can be classified under the main

heads:

Third week: start from 19 August 2013)The main objective is to know about the different functions of cash department.

CASH DEPARTMENT

In cash department both deposits and withdrawals go side by side. This

department works under the accounts department and deals with cash deposits

and payments. This department maintains the following sheets, books, ledger of

account:

Cash received voucher sheet.

Cash paid voucher sheet.

Paying-in-slip

Cheque Book

Cash balance book

Cash department is performing its job completely through computers. The

following staff members are performing their duties with patience and hard work..

Cash Paid Sheet

The only instrument that can be used to withdraw an amount from an account is

the Cheque book. No payments are made by another instrument. Cheques can

be of two types, they may be presented at the counter and encashed and the

others are clearing or transfer cheques.

Cashier manually inspect the Cheque for following:

Signature & date

Cross cutting

Drawee’s a/c title

Amounts in words & figures

Two signatures at the back

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The cheques should not be stated as post dated. If in the Cheque there may

discrepancy regarding any of the aspects described above the cheque is

returned to the customer for rectification. On other hand if the cheque is valid in

all respects, the cashier enters the necessary inputs in the computer and post the

entry so that account balance is updated.

When cashier posts these entries, computer automatically display the balance

before posting the transaction amount, balance after posting. The cashier easily

and quickly see whether the amount being withdrawn so exceed the balance or

within the balance. If the amount does exceed the balance then it is upon the

discretion of the manager to allow an overdraft and not depending upon the

customer’s reputation. If he does not allow an over draft, the procedure.

Fourth Week : start from 26 August 2013)

Fourth week I spent in Remittance Department and learned following

things:The need of remittance is commonly felt in commercial life particularly and

in every day life general. A major function of any banking system is the transfer

of funds from one client or one place to another. By providing this service to the

customer the bank earns a lot of income in the form of service charges. This

department deals with local currency remittance i.e. remittance from one city to

another without actually carrying the currency. MCB uses following instrument for

transferring of money:

Demand Drafts (DD)

Pay Order (PO)

Telegraphic Transfer (TT)

Mail Transfer (MT)

Demand Drafts (DD)

DD is a written order given by the branch of the bank on behalf of the customer

to other branch of the same bank to pay the certain amount to the customer. DD

are issued for the particular place other than place of issuance. A drafts is a

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Cheque drawn by a bank on its own branch or any other branch of another bank

at a different place requesting it to pay on demand a specified amount of money

which is already received to the person named on it. DD is of following two types:

In the first type as advice reaches for payment the immediately pay to the

customer while in later as DD presented by the customer, it is paid and the

suspense account is debited.

A printed application form is provided for filling in completely and signing by the

applicant. After depositing an amount of draft and commission of the bank, duly

completed and signed by two authorized officers, then it is handed over the

applicant and credit order is dispatched to drawee branch. Following are the pre-

requisites for the processing of DD:

Pay Order

For this kind of remittance the payer must have the account in the issuing bank.

Pay order are more liquid as compared to cheques because cheques may be

dishonored while PO can’t be. It is written order issued by the bank drawn and

payable on itself. It is used for local transfer of money from one person to another

person. It is also used by the public for depositing money with Government or

Semi Government department.

DOCUMENTATION

The party who requires a pay order will get a printed application from the bank.

He will fill it and deposits the amount and commission. The bank charges are

same as on demand draft.

TELEGRAPHIC TRANSFER (TT)

In this case the authority is given from one bank to other on the behalf of the

customer through telecommunication to debit their inter office account through

them and credit their parties account mentioned in TT. It is an inter bank

transaction. Telegraphic transfer is an instant transfer of funds. Through this

method applicant can transfer money from one place to another place. There are

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Two types of TT, Both types of TT are maintained in separate registers, test is

applied by the manager of every amount of TT.

Applicant has to fill a form along with depositing amount to be transferred and

bank commission. MCB charges the commission at the same rate as in the case

of demand drafts.

Fifth Week : start from 02 September 2013) The Fifth week is from 3rd July, 2009 to 8th July, 2009. The main objective of this

is to know about the demand draft (DD), pay order (PO), and cash deposit

receipt (CDR). To know about these entire why all these documents are used.

And how much charges have to be paid for making all these.

Sixth week to Eight week : start from 09 September 2013 to 27 September 2013

My sixth to eight week was related to accounts department , and online

transaction

Every transaction which takes place recorded in the computer so all transactions in

different departments are forwarded to account department. Since all vouchers from

different departments are forwarded to current department so this department tallies

all such transactions with current department after maintaining the ledger of each

department. Following are different functions performed by this department:

Preparation of Financial Statements for different time span

Maintain all accounts of different departments

Calculation of profit on different schemes

Calculation of markup on different advances

Preparation Different types of reports for State Bank

Daily position of cash & every accounts

Matching daily summaries of all departments with ledger

(23)

5.45: then in first week which I done , which is related to the accounts opening( task) :

Account opening is the basic procedure to create a relationship between a

customer and a banker. When a customer opens his/her account it increases the

business of the bank. The following steps are taken while a new customer enters in a

bank for opening his/her account. These steps are;

When a customer wants to open an account the authorized officer gives him/her an

account opening form. This form is known as “RELATIONSHIP CONTRACT FORM”.

This form is filled out with the hands of the customers.

All the required fields that are mandatory for account opening should be filled

compulsory. These are the fields like title name of the customer, occupation, address of

the customer, phone no’s, correspondence address, e-mail address, etc.

(a) requirements for opening an account for the individual;

In case of employed person

Copy of CNIC

Salary slip

A letter from employer

Initial deposit of Rs.100 to 1000.

Photo copy of utility bill

In case of non employed person

Copy of CNIC

A letter from Dist. Nazam

Initial deposit of Rs.100 to 1000.

Photo copy of utility bill.

(b) requirements for opening an account for the partnership;

Copy of CNIC

Copy of CNIC of all the partners

Request letter of account opening

(24) Company letter head

Copy of registered certificate (if registered)

Signature specimen duly attested

Initial deposit may be from Rs.100 to 1000

In both cases there is some amount which is fixed for opening current and saving

account that is;

►For opening current account Rs.10, 000 is required.

►For saving account Rs.5000 is the limit.

After all these requirements, the authorized officer attaches two signature specimen

forms called SSC and one requisition form. On which the authorized officer put his/her

signature and pasted signature admitted and verified and bank stamp on it.

Along with this form the copy of CNIC and a Verisys form and form known as (KYC)

is attached with it.

The task which I performed in 2nd week during my internshipe ans learn folowing

things.

Learned About the Requisition request of Check for new Account

Learned about the issuance of new cheaque book.

Filled the ATM request forms

Learned how to issue the ATM cards

Learned how to issue the ATM Pins

Got basic information about Bank Assurance offered by Alico

Learned about various offers of Alico

Learned about the installments of assurance account

Learned about the Terms and conditions of Alico.

(25)(A) Process of getting the new Check Book.

After opening an account, a letter of thanks is sent to the customers from the

Circle Office after 2 or 3 days. After receiving that letter a customer can obtain his/her

check book from the bank. But while customer is coming to the bank for receiving

his/her check book this letter of thanks should be with him.

These are the following steps that are used for gaining check book:

The customer brings the letter of thanks and give to the authorized person. The

person fills the check book requisition slip for the customer and takes his signatures.

Then the authorized person saves that slip in his record and fills another slip and fwd

to Karachi via NIFT and customer is asked to come after 5 days.

After 5 days cheaque book is given to customer after taking his signature in a

separate register But in case if ;

(a) Customer is new than after taking letter of thanks check books would be hand

over to him/her.

(b) But in other case if customer is not new he is a regular customer than at the

end of each check book a requisition slip is attached. So whenever a new

check book would be needed the customer will put his/her signature on it and

submit it to the authorized officer.

(B) Process of getting an ATM/DEBIT card

The following steps are taken while issuing an ATM/DEBIT card. When an ATM

or Debit Cards issue, the following steps are needed:

A copy of CNIC

A minimum Rs.550 should be in respective account.

After filling up all the required documents for ATM card these documents are

given to the authorized person who pasted a verification stamp on these documents and

(26)signing on it. And at the end, after 5 days the person is called again to hand over

ATM card after taking his Signatures.

(c) Process of getting an ATM/DEBIT card Pin

When the customer is given ATM card he goes to another Person to get his/her

secrete Pin code. The person take the signatures and give it to customer. Then

Customer goes to CSO and activates his CARD.

Alico Products:

Alico offers various products for persons belonging to different age groups. The

purpose is to provide the insurance side by side with savings. Some of them are given

below:

Income Max

Current Life Account

Capital Sure

Flexi Life

Har Pal Mehfooz

At the last a separate file is maintained for each of the customer for bank’s

record

My 3rd week task was related to Cash handling Although internees were not allowed in cash department because of sensitivity

of matter, they provide me maximum possible knowledge, and I spent few time in cash.

Learned basic things about Cash department

Learned how to write Cash book

Signature verification

Cash Deposit slips Processing

(27)Process:

In Cash department customer after filling up the checks, bonds etc give it to the

authorized office. The following information are required for further preceding of the

check;

›Name of the customer

›Exact amount in words and figures

›Code of currency

›Date of the check

›and signature of the Customer

After providing all the above mandatory places check is hand over to the relevant

person.

The authorized person after receiving Checks or bonds puts bank stamp on it

Checks the balance of the customer account.

Verify the signatures of customer

Then gives the cash to the customer.

Some important things that must keep in mind while filling up a check:

a. The check should be enchased on that date which has to be written on the

check

b. No cutting/overwriting is allowed

c. Signature should be matched with the ID card signature

d. On the back of the check there should be the sign of the issuer

I learned that how to accomplish different tasks like deposit, credit cards slips,

and as well as bonds. I also learned that how original Checks are identified.

In 4 th week Task was related to deal in remittance department , It was related to

pay order , demand draft .

Learned basic operations of remittance department (PO, DD)

Learned how to make entries and vouchers of incoming TT

Made vouchers and entries for Incoming TT

(28) Learned the difference between DD and PO

Observed other operations e.g. PO (Pay Order), DD (Demand Draft)

Learned bank charges for PO, DD, TT & MT (Mail Transfer)

Learned how to make entries and vouchers for Outgoing TT(Telegraphic

Transfer)

Made few Outgoing TT

Learned & Made Inter-Branch Credit Advices against the checks received from

outer city branches

Learned how to make entries and vouchers for Outgoing TT(Telegraphic

Transfer)

With these activities, also observed the other activities. The remittance officer

also has to pass the entry that is entered by the cashier. The cashier enters the amount

of check and the check number. Then the remittance officer enters the password and

passes the entry. If the remittance officer is present on the seat then the operation

manager has the authority to pass the entry. It is actually based on the amount of the

transaction. When the amount of check exceeds a specific amount of Rs. 200000 the

remittance officer has to pass that. And when the amount increases to Rs. 500000 the

operation manager has to pass that entry. To open the customers account and to keep

information of each of the customer separately so that when information is needed can

be obtained easily.

In 5th week task to be paid for making all these.

(a) Procedure of making Demand Draft (DD) and Pay Order (PO):

Out of the city DD is used, DD is made through Check and Cash. Rs.50 is

charged on cash slip and in case of check slip Rs.220 is charged. PO is made within a

city. It is also in the form of Cash and Check. Rs.50 is charged on cash and Rs.220 is

charged on check slip.

(29) If a regular customer wants to make DD or PO then in this case he/she has to fill

up a form. This form is known as “FUNDS TRANSFER FROM”; on making this

DD/PO Rs.50 is charged for making this in case of account holder but for non

account holder Rs.220 is charged.

In the form all the mandatory places are compulsory to fulfill. Like, currency of

instrument, type of remittance, beneficiary details, particular of applicant,

applicant signature etc. these are such requirements that must be fill up.

And at the last the authorized officer puts his/her signature on DD/PO form and

three stamps are pasted on it;

a. Transfer stamp

b. Signature verified stamp

c. Crossing check stamp ( in case if half payment is made through cash

form, then a check is fill up for this and attached with the DD/PO form)

And at the last the operational manager puts supervision on this and all the records

are transferred into computer for bank records.

(b) Procedure of making of Cash Deposit Receipt (CDR):

CDR is used locally. It is also in from of Cash AND Check. CDR has no charges.

A request form is filled by the hands of the customer for making CDR. This form

is known as “CREDIT DEPOSIT FORM”.

In this form some requirements are compulsory which has to be full up these are

check no, the person name to whom it is going to be transferred, signature

specimen, date etc.

After all these the verification stamp, check transfer stamp, and signature verified

stamp is pasted on it.

And at the final stage, all the transactions are recorded in a register for keeping

banks records.

I learned that how DD’s, CDR’s and PO’s are made. And how many charges are

applied on it.

(30)In sixth week to eight week on my internship, it was all about online transaction

Task ,

(a)ONLINE TRANSACTIONS

Procedure:

In on line transaction the process is so simple in this the client receives a request

form from the customer for online transactions. In such case customer presence is not

compulsory. In this the following requirements are necessary to keep in mind. These

are:

Sender name,

Customer account number,

Bank and branch name,

Check no,

Beneficiary branch no,

Total deposit and date.

An online check is received form customer along with the print out of a voucher is

attached with the check. And three stamps are pasted on it, these are;

Clearing Stamp

Intercity stamp

Transfer Stamp

And then in the last entry of an online check is recorded in the register for

maintaining bank records.

(b) LOCKERS

Procedure:

●whenever a new customer wants to operate locker he/she signs on a SSC card.

And a separate register is maintained for this purpose.

●and after that whenever customer wants to operate the locker than the

authorized person takes the customer signature on the maintained register. And these

signatures are matched with the SSC card signatures.

(31)●only relevant customer is allowed to operate.

5.46: Summary of learning 5.46.1In first week I observed the basic business process. At the end of each day I

totaled the electricity, water, telephone and check amounts. Mostly the total was correct.

But sometimes when the total does not match with the sheet of the PRINTING I had to

do it two or even three times. On the other hand in my 2nd I learn new skill related to the

current banking system.

3rd week I learn the important skills

Intercity Cheaque Processing

Arranged an event to give Customers awareness about Alico

Made a list of Valued customers

Made invitation letters for customers

Arranged necessary items for the Event

Filled Cash deposit slips

Learned basics of Account Opening

Filled some cheaques for aged persons

Filled cash deposit slips for online Deposit

In 4th week was related to remittance so Learned basic operations of remittance

department. Remittance department deals with the foreign remittances. First of all the

remittances are received in the post. Normally two types of remittances come. One is

credited to the accounts in our branch and the other is to be given in cash to the holder

of the XPIN. One advice is normally made for all the advices that are to be credited to

the accounts.

Then the relevant advices are made. In the advices, originating branch is

Dharampura Branch. PNSC Branch is written in the responding branch. The code for

the originating branch is 0992 and for the responding branch code is 0069. Current date

is written in the date field. The amount is written in the relevant fields in figures and in

words. In the favoring, we write the name, account numbers, DD numbers and the

(32)amount in front of every beneficiary. Three copies are prepared for each advice.

One advice goes to CSO for record. One goes for cashier and one goes to the clearing

department for entry in the computer.

In fifth week

Learned how to Issue the CDR

Made vouchers and entries for CDR

Made few CDR

Learned how to manage CDR register

Learned payment against CDR

Balanced the CDR Head of GL for 31 July, 2009.

Learned how to issue a PO

Made Debit vouchers against the PO & DD charges

Made Credit vouchers (contra) against the PO & DD charges

Learned how to make DD and PO

Made outgoing Clearing

Made local clearing

Made intercity clearing

Made return clearing

In this week I was a bit for remittances that are to be paid in cash, one advice is

made for each of the remittance. The person comes in the bank with the XPIN. He gives

it to us. With XPIN he gives the photocopy of the CNIC. One advice is made for him.

Three copies are prepared for each advice. One advice goes to CSO for record. One

goes for cashier and one goes to the clearing department for entry in the computer.

Procedure for outgoing clearing

I also made out going clearing, for outgoing clearing a list I made an excel sheet

of all bills having depositing account number, amount and cheaque number then

separated bills from slips then posted various stemps on bills and slips as follows

(33) Clearing stamp of next date on front of bill

Accounts credited stamp on back of bill

Clearing stamp on front of deposit slip

Procedure for intercity Clearing

I also made intercity clearing. For Intercity Clearing a stamp of intercity posted on

face of bill, then amount, acct number and city name is entered in a separate register

and deposit slip is attached in a specific file. And a stamp is posted on back of bill. A

separate slip is filled for every city given by NIFT. In the specified envelope is used for

every city given by NIFT with printed name of city.

Learning in six week to Eight weekAfter working in this area I learned what money gram is and why it is used for?

And as well as I also learned about the online transactions and the procedure used for

lockers.

5.4.6.2As we all know that , according to my time table of work in different departments

Of banking sector , I took a lot of responsibity and task which I adopt , and performed

well in my best maximum way.

Took responsibility to prepare the accounts opening form

Took responsibility to fill out the vouchers

Took responsibility to know and prepare the demand draft, pay order in the

banking system

Took responsibility to handle the cash transaction

Took responsibility to set on the guest relationship area and engage the

customer to open account in bank

(34)5.46.3Definitely very person has its own career objectives according to this

requirements and Aims in life. After did internship in this bank , now my aim is to start

my career in banking sectors according to my strength , interest and ability to work in

this sector , my planning is start my career in bank as a MTO , and then will fly high.

5.46.4

Of course classroom knowledge really matter in every practical field of industry,

so same as banking sector, I learn many thing and try to explore through my knowledge

in class room. For example

I have knowledge of different accounts of banking

Voucher and transaction of debit and credit

These knowledge really help me the more explore the thing in deep , because I

knew the basis

6: Recommendation 6.1 Overall summary

The banking structure in Pakistan comprises of the following types, State Bank of

Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative

banks, specialized credit institutions. The state bank of Pakistan is the Central bank of

the country and was established on July 01, 1948. The network of bank branches now

covers a very large segment of national economy. The State Bank of Pakistan issues

the shares of these periodically. Bank employees and other common peoples can also

purchase these shares and earn profit. In 1956, MCB transferred its Registered office

to Karachi, where the Head Office is presently located. In April 1991, MCB became

Pakistan’s first privatized bank.

The corporate branch at Shahrah-e-Faisal Karachi (SFK) branch is the corporate

branch of MCB in Karachi. The bank is using SWIFT for transfer of information about

(35)imports and exports. MCB SFK branch has Currently Following three

Departments General Banking Department, Advances Department & Foreign Exchange

Department.

To open an account the customer has to meet the general banking manager with

an introducer. The procedure begins with the punching of account opening form to the

customer file i.e. customer’s master file. Before closing any account, bank send letter to

the account hold for informing him that his account is going to be closed. There is need

an approval from higher authority to close any account. Current deposits are those

which are payable to bank whenever demanded by the customer. Bank does not pay

any profit on current deposits. The following are the financial products/services of MCB

Malay Mail Scheme, PLS Account, Saving 365 Account, Capital growth certificate

scheme, Fund Management Scheme, Khushali Bachat Account, Term/ Fixed Deposits

and others like night banking, credit cards, traveler cheques.

In remittance department like any other bank MCB also have instruments for

transferring of money, Telegraphic Transfer, Mail Transfer. In cash department both

deposits and withdrawals go side by side. This department works under the accounts

department and deals with cash deposits and payments. This department maintains the

following sheets, books, and ledger of account cash received voucher sheet.

Cash paid voucher sheet, Paying-in-slip, ChequeBook, Cash balance book. The

clearing in Karachi at MCB or other banks is being done through NIFT (National Institute

of Facilitation Technology).

Bank provides this facility to the people who need advance money to meet their

requirement. Party dealing with other banks financial condition of borrower business

and as a first step credit proposal is being made. MCB provides advances, which are

two types. Secured Advances, Unsecured Advances. MCB usually classified advances

in to following types Agricultural Advances, Commercial Advances

Industrial Advances. Commercial Advances are of following types

Demand Finance, Cash Finance, Foreign bills purchased, Finance against

imported goods, Finance against foreign bills, Export Refinance Part I (Pre Shipment) &

(36)others. Banks Agriculture division deals with the agriculture advances. Bank

provides the Agriculture Advances in order to enhance and support the agriculture

sector of the country. Farm Credit & Non Farm Credit.

In foreign exchange, MCB is dealing Foreign Currency Accounts, Foreign

Remittances, and Foreign Bills for Collection, Imports & Exports

In a nut shell it can be concluded that the overall performance of the bank is quite

satisfactory. MCB's total assets, investments, deposits and equity has increased but

profitability has decreased by a soaring percentage of 58.23%. The reasons which I

have traced out of my analysis and studies are as follows;

Increased financial costs of funds for which expected investment revenues did

not open up.

Return on lending has been reduces

Bank has increased its classified advances by 35% to fulfill the requirements of

Prudential Regulations. The fresh increase is mainly 51% in the other assets

especially mentioned classification. According to the prudential regulations

requirements, accrued markup cannot be credited to income but to suspense

A/C.

During the year 2008, the economy of the country remained in sluggish. In spite

of various policy measure initiated by the government for confidence building of

the domestic and foreign investors and steps taken such as:

o Creation of small and medium entries development authority (SMEDA).

o Financing under prime minister's self employment scheme.

o Launching of Mera Ghar scheme etc.

o For revival of economy, the expected investment environment could not

be created and economy did not pick up.

The large number of non-commercial banking institutions (DFI's and NBFI's) also

competed for limited resources and investment avenues- thus further narrowing

the spread of banking industry.

(37)6.2 GERNERAL OBSERVATION

Department should provide proper guide line to the students during learning about

their practical application in the field of business so that students becomes

familiar with business environment.

Our department must have developed close relations with reputed organizations

adequate help for management of internship can provided to the students.

The department should try to promote IBIT as a prestigious institute for clearing and

pay attention toward its promotion and advertisement in business sector.

The department should maintain a record of all its old students working in various

fields and present them as a source of motivation inspiration for the present students in

the department.

1. Practical field is quite different from theoretical knowledge. So an internee should

adopt himself / herself to know situation. He / she should be able to get firsthand

knowledge.

2. Have the quality of confidence.

3. Have a good communication.

4. Should be able to judge the situation.

5. Should have effort to doing best.

6. Have flexibility in opinion making.

7. It is golden rule for relaxation, satisfaction and success.

MCB bank limited is an attractive and suitable corporation for the internees as it

provides excellent learning opportunities to the students. Its culture is so inspiring and

working structure is so impressing that it motivates to work. All staff members are very

cooperative and helpful in providing guidance during internship. It is good place of

learning for future job.

(38) 1. MCB is and will positioned and flexible enough to operate effectively in the

changing scenario. We will continue to broaden our customer base, harnessing

the growing strength of the MCB brand and expand the platform to provide value

based propositions to our customers. Banking today has entered into a new era

of computer technology. With introduction to intern on line banking, the distance

between branches has reduced in such a way that a customer maintains his

account thousands of kilometers away. Branches avail full facilities from other

branches. This facility is very common in foreign banks. My observation is that

like many other sectors of banking MCB should also take a lead in this sector.

2. As discussed above, this is an age of computer technology and the banks having

skilled working (in computer technology) will certainly be able to attain a faster

growth rate. My suggestion is that MCB should stress upon its employees to

learn computer technology and following incentives should be given to them for

this purpose.

6.3 SWOT AnalysisSTRENGTH

MCB is the first Pakistani privatized bank and because of its quality

management, marketing, innovation in products and services. Owing to all such factors

they have established a good reputation in the banking market. The name of MCB

makes you recall the highly cooperative and professional individuals ready to serve you

with maximum zeal and zest.

MCB have faster banking services that are making it more prominent in the

banking industry especially in operations and Foreign exchange. The customer prefers

this bank not only because of its faster speedy service rather due to reasonable service

charges.

MCB in Pakistan is the also in the list of highly automated banks like Emirates

because of its modern style of banking through fully computerized control and twenty

four hour banking.

(39)The joining of experienced people, advanced management, advance setup and

facilities gave MCB an edge over its competitors.

WEAKNESSES

The majority of people are not well aware about the products of MCB. Therefore

it should advertise extensively especially RTC and Master Cards.

A behavior has been noted that bank tries to feel at ease with good looking, rich

and educated people and the poor looking customers feel some bit strange in the

environment of the bank. The bank employees should try to accommodate behaviorally

all type of customers.

In MCB there is lack of specialized skill because of job rotation policy of human

resource department. The bank should concentrate upon increasing its abilities on

individual service basis.

Mismanagement of time is another big mistake in MCB branches, the bank

official time of closing is 5:30pm but due mismanaging of time allocation and work the

staff is normally on their seats till 7:00 or 8:00 clock.

OPPORTUNITIES

As on December 31, 1998, sixty-eight scheduled banks with 9,106 branches are

operating in Pakistan. As on this date, total population of Pakistan is 140.03 million.

Total number of personal accounts with all scheduled banks as on December 31,1997,

are 28.98 million. If we consider the population statistics of working age group as on

December 31,1997, it stands to the figure of 96.64 million. Thus we can say those 28%

of working age people of Pakistan are having accounts with banks while 72% are

unbanked.

(40)The need of privatization has made people to switch to banks to satisfy their

needs of lending and borrowing. This not only increases the deposits but also the credit

business.

THREATS

Change in government policies have affected the banking business. Still banks

have to wait to get permission of state bank. The freezing of foreign currency accounts

is a vital example of letting people not to trust on banks.

The Competition has become severe by the entrants of so many banks, So to

exist one will have to prove himself in its services through excellent management and

will have to satisfy its shareholders. Otherwise he will be out the market.

The decrease purchasing power of consumer in the current economic situation of

the country affecting the business activity speed too much and the result is the low

investment from the investors in new projects can create problem for the bank because

it is working a lot in trade.

7: Recommendation:Bank must let potential customers know that all attractions for banking exist. This

is done by advertising on television and obtaining press coverage, in conjunction with

direct mail, window displays, leaflet in branches and in appropriate other locations (such

as hotels, shops, etc.) and including leaflets in statement of accounts sent to existing

customers in the hope that they will tell potential customers about the services provided

by our bank.

Financially unsophisticated people might feel bank accounts, cheque books,

credit cards, etc. are difficult to understand and to keep control thereof.

(41) Some personal sector customers prefer not to come to branch. They

increasingly want to deal with the bank in other ways, such as home banking or use of

Automated Teller Machines (ATMs), which need to be at the branch or some important

shopping plazas.

It is widely known that there is a substantial Black Economy in Pakistan, Where

people earn income that is undisclosed to the revenues authorities. Payments for goods

and services in the black economy are necessarily in cash, because transactions by

cheques are more likely to be exposed to the revenue authorities. Some people will

therefore avoid bank accounts to preserve secrecy of earnings.

One way to retain the personal sector customers is to offer a wide range of

services such as tax advice, free life insurance equivalent to amount deposited, shares

portfolio management, fund management facility, etc., complimentary to the core

services. Banks must have a slightly different mix of services. Banks must have a

slightly different mix of services and mean of providing these such that customers can

choose the mix that suits them best.

Arguably, there has been a little encouragement from banks to persuade people

to open a bank account. Opening hours are restricted, and there is a commonly held

belief that banks operate for their convenience and not for the convenience of the

customers.

A logic leads to promotional campaign through employers who are customers of

the banks and their employees are paid in cash. Such business accounts should be

encouraged to open the accounts of their employees with the banks. It might be worth

offering free banking for a specific period to new accounts or simply publicizing the

services available by means of posters at the employer’s premises.

It might be possible to attract another type of personal customers through

business accounts, namely directors and denier employees, etc. Again an incentive

package could be put together.

(42)The banks may choose to make its existing products distinctive or to introduce

new products. It is often easier to benefit from adverse changes made by other banks

than to attract customers by innovations.

A short term promotional technique is to offer price incentives, for example, low

interest rates on advances or limited issue high profit bearing term deposits. Longer

term, a Loss Leader may be offered. For example, profit bearing current accounts are

not very lucrative but any bank can not afford not to offer these. The reduced profits can

be augmented by profits made on other products.

It is also possible to attract/retain personal customers by investment in new

technology like ATMs and Telephone Banking facilities, which made the services

quicker, easier, cheaper and more flexible.

(43)8: References

Internship Report/web page

Muslim Commercial Bank Limited - Virtual University of Pakistan

http://vustudents.ning.com/group/fini619internshipreportfinance/forum/

topics/internship-report-on-muslim-commercial-bank-limited#ixzz2oqCYzT6D

Mcb/ web page

Introduction of mc

Http: // www.mcb.com.pk

Http: // www.google.com.pk