internship report on mcb bank (1) (repaired)
TRANSCRIPT
ACKNOWLEDGEMENT
All praises to Almighty ALLAH who gave me the courage and patience for completion of this
final report.
I wish to acknowledge my gratitude to my inspiring teachers for their endless persistence,
support and encouragement, and for providing me a lifetime opportunity to work with Muslim
Commercial Bank
I am also thankful to my parents, family and friends who continually offered encouraging
support.
Table of ContentsEXECUTIVE SUMMARY 4
OBJECTIVE OF STUDYING THE ORGANIZATION 5
OVERVIEW OF THE ORGANIZATION 6
HISTORY OF THE ORGANIZATION 6
NATURE OF THE ORGANIZATION………………………………………………………………………………………………………7
BUSINESS VOLUME…………………………………………………………………………………………………………………………..7
NO .OF EMPLOYEES…………………………………………………………………………………………………………………………7
PRODUCT LINE…………………………………………………………………………………………………………………………………8
ORGANIZATIONAL STRUCTURE…………………………………………………………………………………………………………
HEAD OFFICE’S STRUCTURE………………………………………………………………………………………………………………
BRANCH’S STRUCTURE………………………………………………………………………………………………………………………
VARIOUS DEPARTMENTS’ DETAILS……………………………………………………………………………………………………
STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT………………………………………………………………….
DESCRIPTION OF FINANCE/ACCOUNTS DEPARTMENT STRUCTURE………………………………………………….
FINANCE AND ACCOUNTS OPERATIONS………………………………………………………………………………………….
ROLE OF FINANCIAL MANAGER……………………………………………………………………………………………………..
USE OF ELECTRONIC DATA IN DECISION MAKING………………………………………………………………………….
SOURCES OF F UNDS……………………………………………………………………………………………………………………
ALLOCATION OF FUNDS……………………………………………………………………………………………………………..
CRITICAL ANLYSIS…………………………………………………………………………………………………………………………
FINANCIAL ANALYSIS…………………………………………………………………………………………………………………….
RATIO ANALYSIS………………………………………………………………………………………………………………………….
VERTICAL ANALYSIS OF BALANCE SHEET……………………………………………………………………………………..
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VERTICAL ANALYSIS OF INCOME STATEMENT…………………………………………………………………………….
HORIZONTAL ANALYSIS OF BALANCE SHEET………………………………………………………………………………
HORIZONTAL ANALYSIS OF INCOME STATEMENT………………………………………………………………………
COMPETITIVE ANALYSIS……………………………………………………………………………………………………………..
FUTURE PROSPECTS…………………………………………………………………………………………………………………….
WEAKNESSES OF THE ORGANIZATION………………………………………………………………………………………..
CONCLUSION……………………………………………………………………………………………………………………………..
RECOMMENDATIONS…………………………………………………………………………………………………………………
REFERENCES……………………………………………………………………………………………………………………………….
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EXECUTIVE SUMMARY
By the Grace of ALLAH I have completed my internship in Muslim Commercial Bank
Limited….
This report is an off shoot of my experience in the bank. I have tried my best to sum up all the
information, experiences and learning which I have gained there. First of all I have provided the
brief overview of the organization. Organization’s history, number of employees, product line,
business of volume has been discussed briefly.
Organization structure has been elaborated by description of head office and branch’s hierarchy.
It was important to mention that who reports to whom.
MCB has various departments e.g. credit, finance, accounts, cash, remittance and clearing.
Report contains the detailed information about all the departments.
Structure of accounts and finance department has been discussed in detail. Operations of the
finance department and the role of the finance managers have been elaborated on the basis of my
experience in the bank. The types of software and technology used by the department are
included in this section. Various sources of fund generation and the ways to allocated them have
been mentioned.
Financial analysis is the key to determine an organization’s performance. Financial analysis of
the organization has been done in the report on the basis of last five year financial statements of
the bank. Techniques used for the financial analysis are ratio analysis vertical analysis and
horizontal analysis.
Future prospects and weaknesses which can hinder the organizational performance have been
discussed in detail.
In the end report contains recommendation which is essential to improve the productivity of the
organization.
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OBJECTIVE OF STUDYING ABOUT MUSLIM COMMERCIAL BANK
I was assigned internship in Muslim Commercial Bank; the objective of my study in the bank
was to know about banking industry’s operation in Pakistan. My internship was a gateway to
practical world. It was my earnest desire to have practical knowledge of the banking industry.
Theory and books guide you to prepare yourself for outside world and while practical exposure
like an internship give you opportunity to apply the theory and knowledge in the working field.
My purpose was to know about how the machinery works in a bank. How does finance manager
handles finance department, how are financial statements being prepared in going concern. How
does a bank collect and manages its funds. What are the sources of funds and how do they
allocated by the management.
Financial Analysis of an organization gives you clues about its market position. For that purpose
it was necessary to study the financial statements of the bank and to apply some sort of
techniques.
My analysis of financial and other operation of the organization helped me to point out the
weaknesses in management affairs.
I thoroughly studied the future prospects of the organization. Which paved the way for me to
make strategies and to give useful recommendations about organizational development?
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THE MUSLIM COMMERCIAL
BANK LIMITED
History
MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947. MCB is
not an overnight success story rather good track of services are responsible for the leaps and
bounds progress. After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka
from where it commenced business in August 1948. In 1956, the Bank transferred its registered
office to Karachi, where the Head Office is presently located. Thus, the bank inherits a 52-year
legacy of trust in its customers and the citizens of Pakistan
The performance of MCB was badly affected by bureaucrat government. In January 1974, MCB
was nationalized by Bhutto Government following the bank act 1974 subsequently in June 1974
Premier Bank Limited merged with MCB.
When privatization policy was announced in 1990, MCB was the first to be privatized upon
recommendations of World Bank and IMF. The reason for this choice was the better profitability
condition of the organization and less risky credit portfolio which made'' it a good choice for
investors. On April 8th, 1991, the management control was handed over to “National Group”
(the highest bidders). Initially only 26% of shares were sold to private sector at Rs. 56 per share.
MCB besides being money financial organization have rendered invaluable services in the
economics and social developments of our country. MCB today, represents a bank that has
grown with time, experience and Pakistan. A major financial institution, in scope and size, it
symbolizes a fully-grown tree. Evergreen, Strong, and firmly rooted.
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Nature of Organization
Muslim Commercial Bank is a formal organization where rules and responsibilities are clearly defined.
Business Volume
Profit before tax 26,253.075Profit after tax 16,873,175Total assets 567,552,613Total liabilities 488,348,404Deposits 431,371,937Investment 213,060,882No of branches 1061No of accounts 439264
No. of Employees
There are 11,614 employees of Muslim Commercial Bank in Pakistan.
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Product Line
Loans and advances: bank grant loan to the customers MCB also grant different kinds of loan to different customers.MCB grant consumer loan commercial and corporate loan like (pledge, mortgage and hypothecation)
Bank accepts deposits which are sustained by the bank in different kind of accounts.MCB bank offer these accounts for depositing the funds.
Current account Term Deposit Saving accounts Other services MCB visa credit card MCB smart card MCB rupee traveler cheque MCB ATM’S MCB mobile ATM’s MCB SMS banking MCB mobile MCB call center MCB lockers MCB investment service MCB advisory service MCB bank insurance MCB local rupee drawing arrangements MCB home remittance MCB equity capital raising MCB Islamic banking
ORGANIZATION STRUCTURE
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ChairmanMian Mansha
PresidentMuhammad Aftab Manzoor
Corporate Banking Group
Muhammad Shoaib Qureshi
Commercial Banking
Group_North Imdad Ali
Butt
Commercial Banking Group
_South Shahid Sattar
Head Office Structure
Branch’s Structure
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Chief Manager
Operational Manager
Supervisor
ClearingOperatio
n OfficerCash DepttChief Cash
Teller
Teller
Credit Manager
DEPARTMENTS IN MCB
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There are various departments in MCB which are:
Operations Department
Clearing Department
Remittance Department
Cash Department
Advances Department
OPERATIONS DEPARTMENT
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Types of Accounts
Single
Joint
Partnership
Private Limited
Public Limited
SINGLE:
Only one person can operate this a/c. An individual who can fulfill the requirement of bank can
open this a/c. We can call it a personnel or individual a/c. The requirements for this type are
National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Letter
of Kinship etc.
JOINT:
In case of joint a/c applicant mentions that how much person will operate the/c. Instruction are
given for joint a/c such that the account shall be operated by anyone or more. The requirements
for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account
Opening Form, Letter Kinship, Additional Signature Form (For Joint Account), Declaration
regarding the operator of account.
PARTNERSHIP:
For partnership a/c, along with the application form other requirements needs satisfied. The
requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance,
Account Opening Form, Registration certificate, agreement among partners and Commencement
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of business and private registration, resolution of board of directors, commencement of business,
memorandum and articles of association and balance sheet etc.
PRIVATE LIMITED:
Such type of account is opened in the name of the businesses having private limited concern and
mostly medium business enterprises open such kind of accounts. All the board of directors have
to submit the declaration regarding the account operator on the company pad and with the rubber
stamp with the signature of the all the members of the board of directors. In case of any change
in director’s bank must be informed regarding that. In case funds are borrowed by the company
all the directors approval is necessary rather not only the authorized partner who can be the
operator of the account.
PUBLIC LIMITED:
Public Limited A/C type of account is opened in the name of the businesses having Public
limited concern and mostly medium business enterprises open such kind of accounts. And terms
regarding board of directors are the same as of private limited.
NATURE OF ACCOUNTS:
Current Account
PLS Saving bank A/C
Khushali Bachat Account (KBA)13
Saving 365 A/C
Basic banking A/C (BBA)
CURRENT ACCOUNT:
In this type of accounts the client is allowed to deposit or withdraw money as and when he likes.
He may, thus, deposits or withdraws money several times in a day if he likes. There is also no
restriction of amount to be deposited or withdrawn. However, there is requirement of minimum
balance maintenance of Rs. 1000/-. Usually this type of account is opened by the businessmen.
No profit is paid by the bank and no service charges are deducted by the bank on current deposits
account. These types of deposits are also exempt from compulsory deduction of Zakat.
PLS SAVING BANK A/C:
This account was started in 1980s after the issuing of banking ordinance in 1980 by Zia
Government to develop Islamic banking in Pakistan. In this case customer would be responsible
for bearing profit as well as loss. The bank would be within its rights to make investment of
credit balances in the PLS saving accounts in any manner at its sole discretion and to make use
Of the fund to the best of its judgment in the banking business under the PLS system. For
withdrawal of larger amount, 7 days notice in writing is required to be given.
Minimum balance is Rs.500/=
Not more than eight withdrawals in a year allowed
More than Rs.15000/= are not allowed to draw
Seven day notice is required for big withdrawal
Zakat deducted on @ 2.5%
Profit calculated on monthly basis
Profit paid on annually basis
SAVING 365 ACCOUNTS:
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This account is newly developed of MCB and it provides flexibility of saving account to
business people. Profit on deposits will be payable on daily product basis on balance of RS.
500,000/- and above. However, if balance in the account falls below RS. 500,000/- on any day,
the product will be ignored. There will be no restriction on withdrawal from the account. Zakat
and withholding Tax is also applicable on the account opened under this scheme.
Minimum balance is Rs.500,000/=
Below minimum balance, profit calculation ignored
Profit calculated on daily basis
Profit paid on annually basis
10% Withholding Tax on minimum balance
Zakat deducted on @ 2.5%
KHUSHALI BACHAT ACCOUNT:
Saving type account
Rate of return is 8% per annum
Profit calculated on daily basis
Profit paid on half yearly basis
Utility bills can be debited through this a/c
No charges will be debited for utility payments
BASIC BANKING A/C (BBA):
Introduced specially for salaried persons.
Minimum balance is Rs.1000/=
No service charges.
Only two transactions allowed, in one month.
For more than two transactions Rs.35/- per transaction.
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Single natured A/C.
ACCOUNT OPENING PROCEDURE:
Following steps are involved in A/C opening,
ACCOUNT OPENING FORM:
Firstly the customer fills the account opening form and provides all the information as provided
above. I experienced to fill this form
INTRODUCTION:
An account is needed to be introduced. The introduction of a current account holder is accepted
for the opening of an account.
The introducer should be a branch customer or may be account holder of any branch of MCB;
however signatures should be verified by the banker. In certain cases, introduction from bank
other than bank MCB may be allowed.
Personally known accounts may be introduced by the bank staff.
Introduction from an account holder not personally coming to the bank should be verified by the
bank.
STAMPING:
Then it is stamped. Stamps like. BAL sign verified, Sign Admitted Stamp, Sign Verified stamps
etc are affixed.
ACCOUNT NUMBER:
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After completion of all the procedures the final approval is taken from the branch manager.
After obtaining approval, an account number is allotted to the customer and all the information is
entered in to the computer and KYC is filled up. Then that account number is writing on the
Cheque Book, Specimen Signature cards and account opening form.
KNOWING YOUR CUSTOMER:
After entering information KYC is filled up. It should be ensured that at the time of filling
information in KYC, a customer should be physically present. After this all information is saved
in system. I filled KYC form also.
APPROVAL:
This account is further approved by Manager Operations.
SEND FORM TO HEAD OFFICE:
After fulfilling all the requirements and verifying the forms from operation manager the account
opening form is sent to Head Office Karachi and make request to issue the printed cheque book.
LETTER OF THANKS:
Subsequent to the opening of an account, letter of thanks should be sent under registered post or
courier service to the customer and the introducer.
ISSUANCE OF A CHEQUE BOOK:
After opening an a/c with the bank, the a/c holder can not immediately start operating his/ her
account. The cheque book is issued, when a customer will submit a copy of letter of
acknowledgement duly signed by him, in case of new account. And for subsequent issuance of
cheque book He/she has to make a request once again in the name of bank for the issuance of
cheque book and he should mention title of A/C, A/C number, sign it properly and mention the
number of leaves requires. Normally a cheque book having at least 25 leaves is issued but it can
also be of 50 leaves.
CLOSING OF AN ACCOUNT:
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There is no. of reasons of closing an account. Some are listed below:
If customer desires to close his account
In case of death of one account holder.
Bankruptcy of the account holder.
If an account contain nil balance or not up to the requirement of rules.
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.
CLEARING DEPARTMENT
In clearing department I worked under supervision of Miss Shumaila Malik. In clearing
department and learned about inward and outward clearing and I also learnt about,
MEANING OF CLEARING:
The word clearing has been derived from the word “clear” and is defined as,
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“A system by which banks exchange cheques and other negotiable instruments drawn on each
other within a specific area and thereby secure payment for their clients through the Clearing
House at specified time in an efficient way.”
CLEARING HOUSE
It is a place where cheques are presented, collected from bank branch. It is one of the services
provided by NIFT to other commercial banks. NIFT acts as a clearinghouse.
NIFT:
NIFT stands for National Institutional Facilitation Technologies. Clearing House of SBP has
shifted a tiresome part of its work to a private institution named NIFT. NIFT collects cheques,
demand drafts, Pay orders, Travelers Cheques, etc. from all the branches of different banks
within city through its carriers and send them to the branches on which these are drawn for
clearing. After the branches approve the instruments drawn on them, NIFT prepares a sheet for
each branch showing the number for instruments and amount
In its favor and drawn on it and sends it to each branch. A similar sheet for each bank is also sent
to clearing house of SBP where accounts of banks are settled in the same manner.
LEARNING IN CLEARING DEPARTMENT
My learning in clearing department was of following things:
Procedure of clearing a cheque.
Checking of cheques.
Inward and outward clearing.
Different reasons of returning a cheque.
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Types of clearing stamps.
CLEARING PROCEDURE:
Instruments collected are treated as Transfer, Transfer Delivery, Clearing, and Cheque
collection.
CHECKING OF CHEQUES:
When the instruments are collected from the client. Following things are checked
Cheque date, instrument should be neither stale/ nor post-dated.
Title
Amount in figures and words should be the same
There should be no cutting and overwriting on the cheque
Instrument should not bear any unauthorized alternation.
Cheque is crossed.
TRANSFER:
When the instruments are collected and paid by the same branch, it is called transfer.
TRANSFER DELIVERY:
When instruments are collected and paid by two different branches of the same bank situated in
the same city, it is called transfer delivery
A cheque is processed under transfer delivery when it has crossing stamp and is from local
branch of MCB
CLEARING:
Instruments which are drawn on the branches of some other bank of the same city or of the same
area, which is covered by a particular clearing house, are processed for clearing.
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In outward clearing when cheque is received two copies of voucher SF-37 are prepared, one
copy and instruments along with clearing stamp, realization stamp, add list and two vouchers of
clearing summary are sent to NIFT in a sealed bag. And clearing records are recorded in clearing
register.
In Inward clearing instruments received from NIFT are posted in Computers after checking.
CHEQUE COLLECTION (C.C):
When cheque is from another city then it is grouped as C.C.Such instruments are processed as
cheque for collection. In this procedure SF-37 form is used in Cheque collection. Original
voucher with cheque, stamped as C.C along with C.C number is sent to main branch of the
responding city which is further sent to NIFT. Whereas Carbon copy with Pay-In-Slip is taken by
bank for record purposes.
PAY-IN-SLIP:
It is used for two purposes
Whenever we want to deposit cash in our account then pay-in-slip is used by writing amount on
it and depositing it to cashier along with money.
Whenever we have cheque from any party to be collected in our account we fill pay-in-slip. One
part is attached with cheque and another is given to cheque holder as a receipt.
NOTE:
In inward clearing sometimes cheques are not passed due to some reasons then cheques are sent
back to NIFT along with cheque return memo. Some of these reasons are,
Cheque incomplete
Clearing stamp required.
Drawer’s sign incomplete
Drawer’s sign different from specimen
Post Dated
Payment stopped by drawer.
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Amount in words and figures differ.
Insufficient funds etc.
REMITTANCE DEPARTMENT
REMITTANCE:
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Remittance is transfer of funds from one place to another or from one person to another. It is an
important service provided by banks to customers as well as non-customers. Since it is not a free
service it is a source of income for the bank.
PARTIES INVOLVED IN REMITTANCE
Four parties involved in remittance: -
Remitter, Remittee, Issuing Bank, Paying Bank
REMITTER:
One who initiates, or requests for a remittance. The bank charges him a commission for this
service. He may or may not be the branch’s customer.
REMITTEE:
A Remittee is also called the beneficiary, or the payee. The person in whose name the remittance
is made. A Remittee is also the one who receive the payment.
ISSUING BANK:
The bank that sends or affects the remittance, through demand drafts, telegraphic transfers, or
Mail Transfers.
PAYING BANK:
Paying Bank also knows as the drawee branch. The branch from where the instrument is drawn.
TYPES OF REMITTANCE:
Remittance is classified into following four types
Inward remittance, instruments received for payment
Outward remittance, issuing instrument to the responding branch.
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Inland remittance, within same country.
Foreign remittance, from one country to another country.
INSTRUMENTS USED IN REMITTANCE:
Demand Draft (DD)
Telegraphic Transfer (TT)
Pay Order (PO)
Call Deposit Receipt (CDR)
Rupees Traveler Cheque (RTC)
DEMAND DRAFT:
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. DD applicant or recipient, who might not be an A/C holder present
it to 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.
DOCUMENTATION:
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.
TELEGRAPHIC TRANSFER (TT):
TT is fund that is transferred electronically which is remitted on the order of a certain person. 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. But it is not practiced these days frequently.
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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.
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.
CALL DEPOSIT RECEIPT (CDR):
It is an instrument like Cheque issued by the bank on account of a customer & in favor of a
person, to pay the specified amount. CDR’s are issued to make payments, especially when a
company goes for some tenders or for purchase of government securities or any contracts with
others.
DOCUMENTATION:
The party who requires a CDR will get a printed application from the bank. He will fill it and
deposits the amount and commission. The bank enjoys the benefit of keeping funds deposited
until the payment is not made.
RUPEES TRAVELER CHEQUE (RTC):
RTC is the traveler cheque are acceptable at all branches of MCB, and they carry dozens o f
benefits. Security is always being an important issue of concern. TCs provide maximum security
while carrying big amounts.
DOCUMENTATION:25
First of all RTC-10 is given to customer. It is filled and then cash is deposited to cash
department. One copy is for office and one copy is given to the customer and RTC are issued at
that time.
NOTE:
At time of my stay in remittance department, there was no issue of CDR, TT, RTC, and PO so I
was unable to understand its practical aspects, except clearing.
CASH DEPARTMENT
The cash department is the most important department of the bank. In cash department both
deposits and withdrawals go side by side. This department deals with cash deposits and
payments.
The following books are maintained in the Cash Department:
Cash Receipt Book
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Cash Payment Book
Cash Balance Book
The officers in this department are called teller and there were 2 tellers Mr. Nazir and Mr.
Abrash at the counter. This department is involved in two activities: Cash Deposits, Cash
Payments.
CASH RECEIPT BOOK:
The cashier is responsible to receive both the paying-in-slip and cash from the depositor. For
depositing the cash into customer’s accounts, there is need to fill in the paying-in-slip giving the
related details of the transaction. The cashier check the necessary details provided in the paying-
in-slip and accounts the cash and tallies with the amount declared in the slip then cashier fills in
the “Cash voucher received Record Sheet” and assigns a voucher no. to both the transaction
being made in the sheet and the slip. The 2nd cashier posts the transaction entries in computer
ledger. After posting these entries, computer display before posting balance and after posting.
Cashier assigns the stamp “POSTED” on the voucher to show voucher transaction entries are
posted.
CASH PAYMENT BOOK:
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. When cheque is valid in all respects, the
cashier enters the necessary inputs in the computer and posts 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.
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The cashier at the same time maintains the “Cash Voucher Received Record Sheet”. Then
inspects the signature of the customer, cancellation mark of checking officer and stamp of
“POSTED” is placed on cheque before he hands over the cash to customer.
CASH BALANCE BOOK:
At the end of the working day cashier is responsible to maintain the cash balance book. The cash
book contains the date, opening balance, detail of cash payment and received in figures,
The consolidated figure of receipt and payment of cash is entered in the cash book and the
closing balance of cash is drawn from that i.e.
Opening Balance of Cash + Receipts - Payments = Closing Balance
TECHNOLOGY DEPARTMENT
It includes;
Mobile Banking
Phone Banking
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Online Banking
ATM
MOBILE BANKING:
It has been launched recently during my internship. It helps in getting accounts details and
making transactions using mobiles.
PHONE BANKING:
"MCB Phone Banking” is available to all customers on a countrywide basis. Customers can dial
111-000-622(without any city code/prefix) from their respective cities
Customers enjoy 24x7 Round the Clock Phone Banking Services. MCB is the first bank in
Pakistan to offer Centralized connectivity.
MCB now offers the facility of on-line banking to its customers through its country wide
network of branches. Customers can use the ATMs or the banking counters of any branch for
day-to-day banking needs, irrespective of branch where they maintain their accounts.
There are now more than 250 branches linked through this system and they can transact with
each other directly using computer systems and the software named “SYMBOLS” at their own
branches.
ATM (Automatic Teller Machine):
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ATM stands for Automatic Teller Machine. This machine is used to transact in one's account
without intervention of humans. These machines are basically used for taking cash, confirming
balances and requesting statements / cheque books. MCB has the largest ATM network in the
country at the moment with almost one ATM at each online branch and also ATM terminals at
International Airports covering 27 cities of Pakistan
ATMs are operated through a card issued to the valued customers and by application of Personal
Identification Number (PIN number). Now MCB has also entered into a contract with Cirrus
which is a subsidiary of MasterCard. This contract will enable an ATM card holder to use his
account even when he is out of country at all the ATMs where Cirrus logo is displayed.
Green Cards are ordinary cards with a maximum withdrawal facility of Rs. 10,000/- in a day.
The annual fee for this card is Rs. 300/- only.
Gold Cards are special cars with maximum withdrawal limit of Rs. 25000/- in a day. These cards
are issued to the persons having more than Rs. 500000/- as their average balance.
International Cards are issued in collaboration with Cirrus and are useable all over the world
with maximum withdrawal facility according to the standards of Cirrus.
ADVANCES DEPARTMENT
Different banks provide loan facility to general public, companies etc. but MCB provides two
types of loans that are as under:
Fund Base Loans
Non Fund Base Loans
FUND BASE LOANS:
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In this type of loans cash is directly involved. Bank provides loans in shape of cash. Bank gives
credit or limit facility to customers that needed it. In fund based loans there are two further
classifications:
Long Term Loans:
Lease facility for car
For Machinery
For Fixed Assets
Short Term Loans:
Running Finance (R/F)
Cash Finance (C/F)
RUNNING FINANCE:
The MCB provides overdraft facility to the customers for the working capital
requirement. These are the loans which are given to those customers whose business runs
throughout the year or continuously. Its duration is one year and it is for running business.
In advances there are two securities one is known primary security and other is secondary or
collateral security.
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Hypothecation of stock is the primary security and mortgage is the secondary or collateral
security.
SECURITIES FOR FUND BASE LOANS:
Hypothecation of Stock
Mortgage
Pledge
HYPOTHECATION OF STOCK:
In hypothecation of stock the possession of goods and the title remains in the favor of customer.
Without the permission of the bank the customer can't sell the stock. It is the restriction of the
bank that in god own there should be stock according to the instructions of bank every time. The
drawback of this is that there is no check and balance of stock from the bank. The customer can
easily sell his stock.
MORTGAGE:
The bank can mortgage the immovable property like land, building etc as a security. In mortgage
the possession remains to customer and title of goods remains to bank.
PLEDGE:
In this, bank requires the moveable property of the customer as a security like stock, vehicle etc.
possession of goods remains to customer and title in the favor of bank. The bank hires a
muqaddam [Guard] and the key of store where the stock is pledged is in the security of bank.
When customer wants to sell the stock then he pays the amount equivalent to stock which he
wants to sell. After receiving amount bank releases his stock for the same amount.
NON FUND BASE LOANS:
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In non fund based loans cash is not directly involved but bank gives guarantee on the
behalf of customer. Bank works as a third party and known as Guarantor. Bank provides a
security to customer when he needs and someone requires from the customer.
DOCUMENTS REQUIRED BY BANK FOR ADVANCES:
Request of customer
Credit application from bank
Basic borrower sheet
Net worth certificate
CIB report
Financials
Account statement
Property evaluation report
For sale value certificate
Property documents
Title deed [fard]
Property map
CNIC
Account opening form
Undertaking
Following steps are there:
Information required by the bank
Preparation of credit proposals
Sanction advice
INITIAL INFORMATION :
Following information is required to be submitted to bank.
Nature & structure of borrower business
33
Names of proprietors, partners or directors
Detail of all firms or companies associated with borrower.
Financial condition of borrower business
An assessment of his business abilities
Accurate and up to date financial statements of last two years for comparison purposes
Market report on the borrower where borrower has maintained an account with another
bank, a report from his bank should also be obtained.
A report from credit standing bureau of State Bank of Pakistan
PREPARATION OF CREDIT PROPOSAL :
At first a formal application for credit approval is obtained from the party along with complete
group position. The party’s credibility report is obtained from the bank with which the bank is
doing its business. The party’s credibility report is also taken from the Head office of Trade
Information Division.
For obtaining credit, party has to submit the last two years Balance Sheet and Profit & Loss
statement duly attested by authorized auditors. If the party is also involved in export or import
business then the bank also considers the data of three years about import & export. Current debt
and equity ratio is also calculated by the bank. The type of data required to prepare the credit
proposal is to be gathered from the different departments. Some data is obtained from the foreign
Exchange department. Some data is available in Advance Department. The purpose of obtaining
Credit should be explained clearly.
The securities offered by the party to the bank are also evaluated. In case of pledging of property
in shape of land or building the complete evaluation of the property should also be attached.
After all the necessary documents for applying for advance is fulfilled by the party then the case
is sent to Manager for approval. If the credit limit is in his range then he can decide over it
otherwise the case is forwarded to seniors. If there is any discrepancy then the party is informed
of it.
Sanction Advice:
34
When the documents required are complete and there is no ambiguity then the party is advised
that their credit or loan is approved and will be available to you soon.
The form contains following information:
Nature and amount of limit
Purpose
Security/ Collateral
Margin (%).
Mark up/ Charges
Valid
DESCRIPTION OF FINANCE AND ACCOUNTS DEPARTMENT
This department controls all the finance functions of the bank in accordance with the generally
accepted rules.
The Finance Department is comprised of three main areas:
35
General Accounting
Accounts Payable
Payroll
Duties of Finance Department:
Duties of the Finance Department include:
controlling expenditures and obligations (including operating expenses, debt, payroll)
receipting and depositing all revenues
managing the investment of all monies
accounting for all assets and capital project expenditures
internal and external reporting
ROLE OF FINANCE MANAGER
Finance manager plays a significant role by collaborating across business functions in order to
determine how to best allocate and manage assets. The financial activities are supervised by the
Finance Officer to ascertain solid internal control is in place. An audit of financial practices and
principles is conducted annually by an outside audit firm. The finance staff assists in providing
the information for audit.
36
Following are the responsibilities of the Finance Manager:
Providing and interpreting financial information
Monitoring and interpreting cash flows and predicting future trends
Analyzing change and advising accordingly
Formulating strategic and long-term business plans
Researching and reporting on factors influencing business performance
Analyzing competitors and market trends
Arranging new sources of finance for bank’s debt facilities
Supervising staff
Managing bank’s financial accounting, monitoring and reporting systems
Liaising with auditor to ensure that annual monitoring is carried out
Managing budgets
USE OF ELECTRONIC DATA IN DECISION MAKING
MCB is using different kinds of software for decision making purposes. e. g.
Oracle GL
37
Finance department uses Oracle GL as its information system. Oracle is the product of
Oracle E-Business Suit which the organization has acquire as its platform for managing
its business transactions and maintaining its records. Oracle ledger works seamlessly with
Oracle E-Business Suite products to drive better decision making, sustainable financial
discipline, and regulatory compliance and optimized business processes.
SOURCES OF FUNDS
Main source of funds in MCB is deposits.
Deposits
Total amount of deposits of MCB in 2013 is $431,371,937. There are different types of deposits which are:
38
Type Value in 2012Fixed Deposits $ 7,896,275,92
Current Deposits $ 1,842,436,4
Saving Deposits $ 2,680,834,418
ALLOCATION OF FUNDS
Loans
MCB bank allocates the fund for profit generation .It is also proved to be the best in terms of fund allocations. MCB allocates its fund by granting loans.
39
Advances
Short-term loans are valuable source of income so bank prefers to allocate funds here. These may include:
Cash Credit Overdraft Discounting of Bills
Securities
MCB also makes investment in securities.
Others
Other ways of allocating the funds used by MCB are:
Repurchase Agreement Interbank Transaction Project Financing
CRITICAL ANALYSIS
MCB is nice organization top work for. It is not only attractive for customers but for job seekers
as well. People love to work here. HR policies of the bank are designed in such a way that good
performers are always rewarded and every employee is motivated to give his best to the bank.
Customer Relations Management o f the bank is doing excellent. The bank has very strict rules
and regulations about the customer’s complaint. Now there is online and virtual banking for
customers’ convenience. Many online facilities are available for customers to provide them
maximum satisfaction.
40
MCB has been awarded the Best Bank Award since 2000 to 2006. This is all due to best
performance of the bank.
However, there are some dark areas as well in the operations of the bank. One big weakness in
the operations of the bank is that ATM facility is not available at every branch due to which
customers have to visit this facility in far off areas. There is customer discrimination in the bank.
Mean to say that bank prefers wealthy customers and treat them well as compared to customers
who belong to middle or poor class.
Job rotation helps the employees to learn about every area of operation but this thing is missing
in MCB. It also takes years in transfer of an employee from one branch to another which results
in organization politics.
Another major weakness of the bank is ignorance of proper advertising campaign. Bank pays
less emphasis n advertising due to which people aren’t fully aware of its all products.
FINANCIAL ANALYSIS OF MCB
MUSLIM COMMERCIAL BANK LIMITED
CONSOLIDATED BALANCE SHEET
2010 2009 2008 2007 2006
(Rs.'000') (Rs. '000') (Rs.'000') (Rs.000) (Rs.000)
ASSETS
41
Cash and balances with
treasury banks 45,407,183 38,774,871 39,631,172 39,683,88332,465,976
Balances with other banks 14,78,569 6,009,993 4,043,100 3,807,519 6,577,017
Lending to financial
institutions 4,401,781 3,000,000 4,100,079 1,051,372 2,081,800
Investments
213,060,88
2 167,134,465 96,256,874
113,089,26
1
63,486,316
Advances
254,551,58
9 253,249,407 262,510,470
218,690,59
8
198,239,155
operating fixed assets 20,947,540 18,014,896 17,263,733 16,024,123 9,054,156
deferred tax assets - - - - 172,373
Other Assets 27,705,069 23,040,095 19,810,476 17,868,761 11,031,450
567,552,61
3 509,223,727 443,615,904
410,485,51
7
342,108,243
LIABILITIES
Bills payable 10,265,537 8,201,090 10,551,468 10,479,058 7,089,679
Borrowings 25,684593 44,662,088 22,663,840 39,406,831 23,943,476
Deposits and other accounts
431,371,93
7 367,604,711 330,181,624
292,098,06
6
257,461,838
Sub-ordinate loans - - - 479,232 1,597,440
Liabilities against assets
subject to finance lease - - -
- -
Deferred tax liabilities 4,934,018 3,196,734 437,137 1,180,162 -
42
Other liabilities 16,092,319 15,819,082 21,345,781 11,722,493 11,171,496
488,348,40
4 439,483,714 385,179,850
355,365,84
2
301,263,929
NET ASSETS 79,204,209 69,740,013 58,436,054 55,119,675 40,844,314
REPRESENTED BY:
Share capital 7,602,150 6,911,045 6,282,768 6,282,768 5,463,276
Reserves 40,162,906 38,385,760 36,768,765 34,000,638 24,662,426
Unappropriated profits 21,414,955 15,779,127 9,193,332 5,130,750 5,530,973
69,180,011 61,075,932 52,244,865 45,414,165 35,656,675
Surplus/ (deficit ) on
revaluation of assets-net of
tax 10,024,198 8,664,081 6,191,189 9,705,519 5,187,639
79,204,209 69,740,013 58,436,054 55,119,675 40,884,314
MUSLIM COMMERCIAL BANK LIMITED CONSOLIDATED INCOME STATEMENT
2010 2009 2008 2007 2006
Rs.( '000') Rs.('000') Rs. ('000') Rs.(000) Rs.(000)
Mark-up /return/ interest earned 54,821,296 51,616,007 40.043,824 31,786,595 25,778,061
Mark-up/ return/ interest expensed 17,987,767 15,837,322 11,560,740 7,865,533 4,525,359
43
Net Mark-up /return/ interest income 36,833,529 35,778,685 28,483,084 23,921,062 21,252,702
Provision for diminution in the value
of investment – net 444,476 1,484,218 2,683,994 105,269 121,197
Provision against non-performing
loans and advances – net 3,100,594 5,796,527 1,335,127 2,959,583 1,014,540
Bad debts written off directly 52,047 41,576 - 199 47,000
3,597,117 7,322,321 4,019,121 3,065,051 1,182,737
Net mark-up /interest income after
provisions 33,236,412 28,456,364 24,463,963 20,856,011 20,069,965
Non-mark-up / interest income
Fee, commission and brokerage
income 4,129,540 3,455,948 2,866,729 2,634,610 2,311,235
Dividend Income 543,906 459,741 617,554 632,300 811,801
Income from dealing in foreign
currencies 632,346 341,402 727,564
693,408 692,010
Gain on sale of securities – net 411,834 773,768 740,429 1,500,865 605,865
Unrealized loss on revaluation of
investments - - (103,198) (13,105) -
Other income – net 547,680 612,026 942,362 1,000.149 570,505
Total non-mark\interest income 6,265,306 5,642,885 5,791,440 6,448,227 4,991,416
39,50,718 34,099,249 30,255,403 27,304,228 25,061,381
44
Non-mark-up / interest expenses
Administrative expenses 12,173,942 10,111,330 7,546,787 5,426,116 6,482,592
Other provision / (reversal) – net 88,261 142,824 10,120 (3,743) 11,411
Other charges 986,440 690,150 830,839 573,830 66,708
Total non-mark-up / interest
expenses 13,248,643 10,944,304 8,387,837 5,996,290 6,560,711
Extra ordinary / unusual item - - - - -
Profit before taxation 26,253,075 23,154,945 21,867,566 21,308,035 13,018,487
Taxation
Current year 8,027,433 7,703,305 7,341,257 6,442,356 4,611,359
Prior years - (2,232,226) (864,824) (1,294,473) (149,763)
Deferred 1,352,467 2,188,569 16,533 894,590 (365,524)
9,379,900 7,659,648 6,492966 6,042,473 4,096,072
Profit after taxation 16,873,175 15,495,297 15,374,600
15,265,562 8,922,415
Unappropriated Profit brought
forward 15,779,27 9,193,332 5,130,750
5,530,973 502,388
Transfer from surplus on revaluation
of fixed assets-net of tax 21,792 22,324 21,319
11,855 83,749
15,800,919 9,215,656 5,152,069 5,542,828 586,137
Profit available for appropriation 32,674,094 24,710,953 20,526,669 20,808,390 9,508,552
45
Basic and diluted earnings per share -after tax
22.20 22.38 24.47 24.30 17.43
RATIO ANALYSIS
Ratio analysis is an important and old technique of financial analysis. Ratios are important and
helpful in the reference that:
These simplify the comprehension of financial statement and tell the whole story of changes in
the financial conditions of the business.
These provide data for inter-firm comparison. The ratios highlight the factors associated with
successful and unsuccessful firms, also reveal strong and weak firms.
46
These help in planning and forecasting these can assist management in its basic functions of
forecasting, planning, coordination and control.
These help in investment decision in case of investor and lending decision in case of Bankers etc.
However, the ratios are only indicators, they cannot be taken as final regarding good or bad
financial position of the business other things have also to be seen.
Great care is needed while calculating meaningful ratios and in interpreting them. Although there
are several ratios, which an analyst can employ yet the type of ratios he would, use entirely
depends on the purpose for which the analysis is done i.e., a creditor would keep him abreast
about the ability of a concern to cover up its current obligations and so would care about current
and liquid ratios, Turnover of receivables, coverage of interest by the level of earnings etc.
ADVANTAGES OF RATIO ANALYSIS:
It helps to give comprehensive financial statements in evaluating aspects of any undertaking in
respect of financial health, operations efficiency and profitability. It gives a chance of inter-firm-
comparison to measure efficiency and helps management to resort to some remedial measures. It
provides a good help in decision making for investors and the financial institutions.
CATEGORIES OF RATIO ANALYSIS:
Liquidity ratios
Debt ratios
Profitability ratios
47
Operating Performance ratios
LIQUIDITY RATIOS
The liquidity of a firm is measured by its ability to satisfy its short-term obligations as they come
due. Liquidity refers to the solvency of the firm’s overall financial position i.e. the ease with
which it pays its bills. Due to low or declining liquidity firm moves towards financial distress
and bankruptcy.
Liquidity Measures are:
Current ratio Quick (acid-test) ratio Cash Ratio
48
Current Ratio
The current ratio, one of the most commonly cited financial ratios, measure the firm’s ability to
meet its short-term obligations. It is expressed as follows:
Current assets
Current ratio = Current liability
2010 2009 2008 2007 2006
=305,839,122/35,950,
130
=298,034,271/52,86
3,178
=306,184,742/33,215,
308
=262,452,000/
49,885,889
=237,282,14
4/31,033,15
5
8.5% 5.6% 9.2% 5.2% 7.6%
Interpretation:
Current ratio shows a firm’s ability to expire all its current liabilities through current assets.
Industry standard for current ratio is 2. A current ratio of 2 means a firm is able to satisfy its
49
entire current obligation. Figure mentioned in the table above shows that MCB current ratios
from year 2006-2010 are quite well. So it means MCB is in a position to cover all its current
liabilities
Acid Test Ratio
=Cash +Cash Equivalent+ Short-term Investments +Accounts Receivables
Current Liabilities
2010 2009 2008 2007 2006=264,348,415/35,950,130
=214,919,329/52,863,78
=144,031,225/33,215,308
=157,632,035/49,885,889
=123,611,109/31,033,155
7.3% 4% 4.3 3.1% 3.9%
Interpretation:
50
Acid test ratio shows the extent of cash and other current assets that are readily convertible into
cash in comparison to other short term obligations of an organization. A quick ratio of 0.5 would
suggest that a company is able to settle half of its current liabilities instantaneously. Above
mentioned acid-test ratios of MCB show that the bank is at an excellent position to convert its
assets into cash.
Cash Ratio
= Cash + Cash Equivalents+ Invested Funds
Current Liabilities
2010 2009 2008 2007 2006=259,946,634/35,950,130
=211,919,329/52863178
=139,931,146/33,215,308
=156,580,663/49,885,889
=102,529,309/31,033,155
7.2% 4% 4.2% 3.1% 3.3%
51
Interpretation
Industry average for cash ratio is 1. From the above mentioned figures we can analyze that MCB’s financial performance is quite well from 2006-2010 and in 2010 it is excellent .i.e. a ratio of 7.2%
DEBT RATIO
The debt position of a firm indicates the amount of other people’s money being used to generate
profits. In general, the financial analyst is most concerned with long term debts, because these
commit the firm to a stream of payment s over the long run.
Debt Ratio
Debt Equity Ratio
Interest Coverage Ratio
Capitalization Ratio
52
Debt Ratio
The debt ratio measures the proportion of total assets financed by the firm’s creditors. The higher
this ratio the greater the amount of other people money being used to generate profit. The ratio is
calculated by following formula
Debt Ratio= Total Liabilities
Total Assets
2010 2009 2008 2007 2006
=567,552,613/488,
348,404
=509,223,727
/439,483,714
=443,615,904/38
5,179,850
=410,485,517/
355,365,842
=342,108,243/301,2
63,929
1.2% 1.2% 0.14% 1.2% 1.13%
Interpretation:
Debt ratio determines how much a company depends on debt to finance its assets. A higher ratio
indicates that the firm too much depends on debts to finance the assets which are risky to its
operations. MCB debt ratios from 2006-2010 indicate that the bank relays less on debt and more
on equity.
53
Debt Equity Ratio
=Total Liabilities
Shareholder’s Equity
2010 2009 2008 2007 2006
=488,348,404/7,
602,150
=439,483,714/6,91
1,045
=385,179,850/6,282
,768
=355,365,842/6,2
82,768
=301,263,929/
5,463,276
64.2 63.6 61.3 56.6 55.1
Interpretation
54
Debt-to-equity ratio is the key financial ratio and is used as a standard for judging a company's
financial standing. It is also a measure of a company's ability to repay its obligations. When
examining the health of a company, it is critical to pay attention to the debt/equity ratio. If the
ratio is increasing, the company is being financed by creditors rather than from its own financial
sources which may be a dangerous trend.
Interest Coverage Ratio
Interest Coverage Ratio= Earnings before interest and taxes
Interest Expense
2010 2009 2008 2007 2006
=39,501,718/13,248,6
43
=34,099,249/10,994,3
04
=30,255,403/8,
387,837
=27,304,238
/5,996,203
=25,061,381
/6,560,711
2.98 3.1 3.6 4.6 3.8
Interpretation:
55
Interest coverage ratio provides a quick picture of a company’s ability to pay the interest charges
over its debt. An interest-coverage ratio below 1 is an immediate indication that the company,
regardless of its industry, is not generating sufficient cash to cover its interest payments. That
said, an interest-coverage ratio of 1.5 is generally considered the bare minimum level of comfort
for any company in any industry. MCB’s interest coverage ratio indicates that the company is at
a good position to pay off the interest due on its borrowings. All the figures form 2006-2010 are
above than the industry average so it is a clear proof of MCB’s credit standing.
PROFITABILITY RATIOS
Return on total assets Return on equity Gross Margin Pretax Profit Margin Net Profit Margin
Return on Total Assets
It measures the overall effectiveness of management in generating profits with its available
assets. The higher the Return on total assets better will be the performance.
Earnings before Interest and Tax
Return on total assets =
Total assets
56
2010 2009 2008 2007 2006
=39,501,718/567,552,613
=34,099,249/509,223,727
=30,255,403/443,615,904
=27,304,238/410,485,517
=25,061,381/342,108,243
6.9% 6.6% 6.8% 6.6% 7.3%
Interpretation:
Return on total assets ratio measures a company's earnings before interest and taxes (EBIT)
against its total net assets. The ratio is considered an indicator of how effectively a company is
using its assets to generate earnings before contractual obligations must be paid. MCB’s ROTA
was good in 2006 i.e. 7.3%. While in the next year (2007) it declined i.e. 6.6%. Then we can see
that it increased again in 2010 by 6.9%. This indicates that bank is in a position to generate
sufficient earnings by utilizing its total assets.
57
Return on Equity
Net Income
Return on total assets =
Shareholders’ Equity
2010 2009 2008 2007 2006
=6,873,175/7,602,150
=15,495,297/6,911,045
=15,374,600/6,282,768
=15,265,562/6,282,768
=12,142,398/5,463,276
0.91 2.2 2.4% 2.4% 2.2%
Interpretation:
This ratio indicates how profitable a company is relative to its total assets. Banks strive to record
an ROA of 1.5% or above. MCB’s ROA from 2006 to 2009 is quite well. But it is showing a
down figure in 2010. I.e. an ROA of 0.91%
58
Gross Margin
Gross Margin= Gross Profit
Revenue
2010 2009 2008 2007 2006
=36,833,529/54,821,296
=35,778,685/51,616,007
=28,483,084/40,043,824
=23,921,062/31,786,595
=21,252,702/25,778,061
67% 69% 70% 75% 82%
Interpretation:
The gross profit margin tells us the profit a company makes on its cost of sales. In other words, it
indicates how efficiently management uses labor and supplies in the production process. High
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margin indicates that company has effective control over its costs. MCB’s gross margin from
2006 to 2010 shows that bank’s earnings are increasing faster than its operating costs. In 2007 it
has highest margin 0f 75%. While in 2010 it is low due to economic crisis in the country.
Pretax Profit Margin
=Pretax Profit
Revenue
2010 2009 2008 2007 2006=26,253,075/54,821,296
=23,154,945/51,616,007 =21,867,566/40,043,824
=21,308,035/31,786,595
=12,142,398/25,778,061
48% 45% 55% 67% 47%
Interpretation:
Pretax profit margin indicates how much profit a firm can generate through sales before paying
tax on it. The higher the pre-tax profit margin, the more profitable the company. We can observe
from the above mentioned figures that MCB’s pretax profit margin is more than 50% in 2007
and 2008 (67% and 55% respectively). While it declined in 2009 and 2006 (45% and 47%
respectively). In 2010 bank seems to strive for another high figure by reaching at 48%.
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Net Profit Margin
=Net Profit
Revenue
2010 2009 2008 2007 2006=16,873,175/54,821,296
=15,495,297/51,616,007
=15,374,600/40,043,824
=15,265,562/31,786,595
=12,142,398/25,778,061
31% 30% 30% 48% 47%
Interpretation:
Net profit margin indicates how much profit a firm can earn through sales after paying off all the
taxes. A higher net profit margin tells that company’s business is very profitable.Net profit
industry average for banks is 8.51%. By the figures mentioned above, we can assess that MCB’s
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net profit margin is very high. Bank is enjoying strong financial position. However, the figure
has been declining from 2006 to 2010 which is the result of recent halted economy.
OPERATING PERFORMANCE RATIO
Fixed Assets Turnover Ratio
Fixed Assets Turnover Ratio
This ratio is a rough measure of the productivity of a company’s fixed assets with respect to
generating revenue. Higher the productivity of the company, higher is the turnover ratio.
Formula for this ratio is:
=Revenue
Fixed Assets
62
2010 2009 2008 2007 2006=54,821,296/20,947,540
=51,616,007/18,014,896
=40,043,824/17,263,733
=31,786,595/16,024,123
=25,778,061/9,054,156
26% 29% 23% 19% 28%
Interpretation:
If a company can generate more sales with fewer assets it has a higher turnover ratio which tells
it is a good company because it is using its assets efficiently. A lower turnover ratio tells that the
company is not using its assets optimally. From the above table we can analyze that MCB’s
turnover on fixed assets is good. In 2009 turnover was highest. In 2006 turnover was good then it
declined in 2007 i.e. 19%. It increased again in 2008 i.e. 23%. IN 2010 the figure declined again
by reaching at 26%.
63
64
VERTICAL ANALYSIS OF BALANCE SHEET
2010 2009 2008 2007 2006
Amou
nt
% Amoun
t
% Amoun
t
% Amount % Amoun
t
%
ASSETS
Cash and
balances with
treasury banks
45,407
,183
8% 38,774,
871
7.6
%
39,631,
172
8.9
%
39,683,8
83
9.7
%
32,465,
976
9.5
%
Balances with
other banks
14,78,
569
0.2
6%
6,009,9
93
1.18
%
4,043,1
00
0.9
%
3,807,51
9
.92
%
6,577,0
17
1.9
%
Lending to
financial
institutions
4,401,
781
7.7
5%
3,000,0
00
0.58
%
4,100,0
79
0.9
%
1,051,37
2
0.2
5
%
2,081,8
00
0.6
%
Investments 213,06
0,882
0.3
7%
167,134
,465
32.8
%
96,256,
874
21.
6
%
113,089,
261
27.
6
%
63,486,
316
18.
5%
Advances 254,55
1,589
0.4
4%
253,249
,407
49.7
%
262,510
,470
59.
2
%
218,690,
598
53.
2
%
198,239
,155
57
%
operating fixed
assets
20,947
,540
0.0
36
%
18,014,
896
3.5
%
17,263,
733
3.9
%
16,024,1
23
3.9
%
9,054,1
56
2.6
%
deferred tax
assets
- - - - - - - 172,373 0.0
5%
Other Assets 27,705 0.0 23,040, 4.5 19,810, 4.5 17,868,7 4.3 11,031, 3.2
65
,069 48
%
095 % 476 % 61 % 450 %
Total 567,55
2,613
100
%
509,223
,727
100
%
443,615
,904
10
0
%
410,485,
517
10
0
%
342,108
,243
10
0%
LIABILITIES
Bills payable 10,265,
537
1.8
%
8,201,0
90
1.6
%
10,551,
468
2.4
%
10,479,0
58
2.5
%
7,089,6
79
2.1
%
Borrowings 25,6845
93
4.5
%
44,662,
088
8.8
%
22,663,
840
5.1
%
39,406,8
31
9.6
%
23,943,
476
6.1
%
Deposits and
other accounts
431,371
,937
76
%
367,604
,711
6.2
%
330,181
,624
74.
4
%
292,098,
066
71
%
257,461
,838
75
%
Sub-ordinate
loans
- - - - - - 479,232 0.1
%
1,597,4
40
0.4
6%
Liabilities
against assets
subject to
finance lease
- - - - - - - - - -
Deferred tax
liabilities
4,934,0
18
8.9
%
3,196,7
34
0.62
%
437,137 0.0
98
%
1,180,16
2
0.2
9
%
- -
Other liabilities 16,092,
319
2.8
%
15,819,
082
3.1
%
21,345,
781
4.8
%
11,722,4
93
2.8
%
11,171,
496
3.2
%
Total 488,348 86 439,483 86% 385,179 86.
8
355,365,
842
86.
6
301,263
,929
88
%
66
,404 % ,714 ,850 % %
REPRESENTED BY:
Share capital 7,602,1
50
1.3
4
%
6,911,0
45
1.36
%
6,282,7
68
1.4
2%
5,463,27
6
1.3
%
5,463,27
6
1.
6
%
Reserves 40,162,
906
7.0
8
%
38,385,
760
7.5
%
36,768,
765
8.3
%
24,662,4
26
6
%
24,662,4
26
7.
2
%
Unappropriated
profits
21,414,
955
3.7
8
%
15,779,
127
3.1
%
9,193,3
32
0.2
1%
5,530,97
3
1.3
%
5,530,97
3
1.
6
%
69,180,
011
1.2
2
%
61,075,
932
11.1
%
52,244,
865
11.
8%
35,656,6
75
8.7
%
35,656,6
75
10
.4
%
Surplus/
(deficit ) on
revaluation of
assets-net of
tax
10,024,
198
1.7
8
%
8,664,0
81
1.7
%
6,191,1
89
1.4
%
5,187,63
9
1.3
%
5,187,63
9
1.
52
%
Total
Stockholder’s
Equity
79,204,
209
13.
9
%
69,740,
013
13.7
%
58,436,
054
13.
2%
40,844,3
14
10
%
40,884,3
14
11
.1
%
VERTICAL ANALYSIS OF INCOME STATEMENT
MUSLIM COMMERCIAL BANK LIMITED CONSOLIDATED INCOME STATEMENT
67
2010 2009 2008 2007 2006
Rs. % Rs. % Rs. % Rs % Rs. %
Mark-up /return/
interest earned
54,821,2
96
100
%
51,616,
007
100
%
40,043,
824
100
%
31,786
,595
100
%
25,77
8,061
100
%
Mark-up/ return/
interest expensed
17,987,7
67
32.8
%
15,837,
322
30.7
%
11,560,
740
28.8
%
7,865,
533
24.7
%
4,525
,359
17.6
%
Net Mark-up
/return/ interest
income
36,833,5
29
67% 35,778,
685
69% 28,483,
084
71% 23,921
,062
75% 21,25
2,702
82%
Provision for
diminution in the
value of
investment – net
444,476 0.81
%
1,484,2
18
2.9% 2,683,9
94
6.7% 105,26
9
0.33
%
121,1
97
0.5%
Provision against
non-performing
loans and advances
– net
3,100,59
4
5.7% 5,796,5
27
11.2
%
1,335,1
27
3.3% 2,959,
583
9.3% 1,014
,540
3.9%
Bad debts written
off directly
52,047 0.1% 41,576 0.08
%
- - 199 6.3% 47,00
0
0.18
%
3,597,11
7
6.6% 7,322,3
21
14.2
%
4,019,1
21
99% 3,065,
051
9.6% 1,182
,737
4.6%
Net mark-up
/interest income
after provisions
33,236,4
12
6.1% 28,456,
364
55.1
%
24,463,
963
61% 20,856
,011
65.6
%
20,06
9,965
77.8
%
68
Non-mark-up / interest income
Fee, commission
and brokerage
income
4,129,54
0
7.6% 3,455,9
48
6.7% 2,866,7
29
7.2% 2,634,
610
8.3% 2,311
,235
9%
Dividend Income 543,906 0.1% 459,74
1
0.9% 617,55
4
15.3
%
632,30
0
1.9% 811,8
01
3.1%
Income from
dealing in foreign
currencies
632,346 0.1% 341,40
2
0.66
%
727,56
4
1.8% 693,40
8
2.1% 692,0
10
2.7%
Gain on sale of
securities – net
411,834 0.07
%
773,76
8
1.5% 740,42
9
1.85
%
1,500,
865
4.7% 605,8
65
2.4%
Unrealized loss on
revaluation of
investments
- - - (103,19
8)
(0.25
%)
(13,10
5)
(0.04
%)
- -
Other income – net 547,680 0.1% 612,02
6
11.9
%
942,36
2
2.3% 1,000.
149
3.1% 570,5
05
2.2%
Total non-mark\
interest income
6,265,3
06
1.2% 5,642,
885
10.9
%
5,791,
440
14.4
%
6,448,
227
20% 4,991
,416
19%
39,50,71
8
0.7% 34,099,
249
66% 30,255,
403
75.5
%
27,304
,228
85.9
%
25,06
1,381
97%
Non-mark-up / interest expenses
Administrative
expenses
12,173,9
42
2.24
%
10,111,
330
19.6
%
7,546,7
87
18.8
%
5,426,
116
17% 6,482,
592
25%
69
Other provision /
(reversal) – net
88,261 0.01
6%
142,82
4
0.8% 10,120 0.02
%
(3,743
)
(0.1
%)
11,41
1
0.04
%
Other charges 986,440 0.18
%
690,15
0
1.33
%
830,83
9
2.07
%
573,83
0
1.8
%
- -
Total non-mark-up
/ interest expenses
13,248,6
43
2.4% 10,944,
304
21% 8,387,8
37
21% 5,996,
290
18.8
%
6,560,
711
25%
Extra ordinary /
unusual item
- - - - - - - - - -
Profit before
taxation
26,253,0
75
4.8% 23,154,
945
44.9
%
21,867,
566
54.6
%
21,308
,035
67% 13,01
8,487
50.5%
Taxation
Current year 8,027,43
3
1.5% 7,703,3
05
15% 7,341,2
57
18% 6,442,
356
20% 4,611
,359
17.9%
Prior years - - (2,232,
226)
(4.3
%)
(864,82
4)
(2.2
%)
(1,294,
473)
(4.1
%)
(149,
763)
(0.58%)
Deferred 1,352,46
7
0.25
%
2,188,5
69
4.2% 16,533 0.04
%
894,59
0
2.8% (365,
524)
(1.42%)
9,379,90
0
1.72
%
7,659,6
48
14.8
%
6,4929
66
0.16
%
6,042,
473
19% 4,096
,072
15.9%
Profit after
taxation
16,873,1
75
3.1% 15,495,
297
30% 15,374,
600
38% 15,265
,562
48% 8,922
,415
34.6%
Unappropriated
Profit brought
forward
15,779,
27
0.3% 9,193,3
32
17.8
%
5,130,
750
12.8
%
5,530,
973
17% 502,3
88
1.9%
Transfer from 21,792 4% 22,324 0.04 21,319 0.05 11,855 0.03 83,74 0.3%
70
surplus on
revaluation of
fixed assets-net of
tax
% % % 9
15,800,919
2.9% 9,215,656
17.9%
5,152,069
12.8%
5,542,828
17% 586,137
2.3%
Profit available for appropriation
32,674,094
6% 24,710,953
47.9%
20,526,669
51% 20,808,390
65% 9,508,552
36.9%
HORIZONTAL ANALYSIS OF BALANCE SHEET
MUSLIM COMMERCIAL BANK LIMITED
CONSOLIDATED BALANCE SHEET
2010 2009 2008 2007 2006
Amount % Amount % Amount % Amount % Amount %
ASSET
71
Cash and
balances with
treasury banks
45,407,1
83
100
%
38,774,8
71
14.
6%
39,631,1
72
12.
7%39,683,8
83
12.
6%
32,465,9
76
28
%
Balances with
other banks
14,78,56
9
100
%
6,009,99
3
(3.1
%)
4,043,10
0
(1.7
%)
3,807,51
9
(1.5
%)
6,577,01
7
(3.4
%)
Lending to
financial
institutions
4,401,78
1
100
%
3,000,00
0
31.
8%
4,100,07
9
6.9
%
1,051,37
2
76
%
2,081,80
0
52
%
Investments 213,060,
882
100
%
167,134,
465
27.
5%
96,256,8
74
54.
8%
113,089,
261
47
%
63,486,3
16
70
%
Advances 254,551,
589
100
%
253,249,
407
5.2
%
262,510,
470
(3.1
%)
218,690,
598
14
%
198,239,
155
22
%
operating fixed
assets
20,947,5
40
100
%
18,014,8
96
14
%
17,263,7
33
17.
6%
16,024,1
23
23
%
9,054,15
6
56.
7%
deferred tax
assets
- - - - - - - - 172,373 -
Other Assets 27,705,0
69
100
%
23,040,0
95
91.
7%
19,810,4
76
28
%
17,868,7
61
28.
5%
11,031,4
50
60
%
567,552,
613
100
%
509,223,
727
10.
3%
443,615,
904
21.
8%
410,485,
517
27.
7%
342,108,
243
(50
%)
LIABILITIES
Bills payable 10,265,5
37
100
%
8,201,09
0
20
%
10,551,4
68
(2.8
%)
10,479,0
58
(2%
)
7,089,67
9
31
%
Borrowings 25,6845 100 44,662,0 (73. 22,663,8 11. 39,406,8 (53 23,943,4 6.8
72
93 % 88 9%) 40 8% 31 %) 76 %
Deposits and
other accounts
431,371,
937
100
%
367,604,
711
14.
8%
330,181,
624
23
%
292,098,
066
32
%
257,461,
838
40
%
Sub-ordinate
loans
- - - - - - 479,232 - 1,597,44
0
-
Liabilities
against assets
subject to
finance lease
- - - - - - - - - -
Deferred tax
liabilities
4,934,01
8
100
%
3,196,73
4
35
%
437,137 91
%
1,180,16
2
76
%
- -
Other liabilities 16,092,3
19
100
%
15,819,0
82
1.7
%
21,345,7
81
(32
%)
11,722,4
93
27
%
11,171,4
96
30
%
488,348,
404
100
%
439,483,
714
10
%
385,179,
850
21
%
355,365,
842
27
%
301,263,
929
38
%
NET ASSETS 79,204,2
09
69,740,0
13
12
%
58,436,0
54
26
%
55,119,6
75
30
%
40,844,3
14
48
%
REPRESENTED BY:
Share capital 7,602,1
50
100
%
6,911,04
5
(70
%)
6,282,76
8
17
%
6,282,76
8
17
%
5,463,27
6
28
%
Reserves 40,162,9
06
100
%
38,385,7
60
4.4
%
36,768,7
65
8.5
%
34,000,6
38
15
%
24,662,4
26
38.
5%
Unappropriated
profits
21,414,9
55
100
%
15,779,1
27
26
%
9,193,33
2
57
%
5,130,75
0
76
%
5,530,97
3
74
%
73
69,180,0
11
100
%
61,075,9
32
11.
7%
52,244,8
65
24.
5%
45,414,1
65
34
%
35,656,6
75
48
%
Surplus/
(deficit ) on
revaluation of
assets-net of tax
10,024,1
98
100
%
8,664,08
1
13.
6%
6,191,18
9
38
%
9,705,51
9
3.2
%
5,187,63
9
48
%
79,204,2
09
100
%
69,740,0
13
11.
9%
58,436,0
54
26
%
55,119,6
75
30
%
40,884,3
14
48
%
HORIZONTAL ANALYSIS OF INCOME STATEMENT
MUSLIM COMMERCIAL BANK LIMITED CONSOLIDATED INCOME STATEMENT
2010 2009 2008 2007 2006
Rs. Rs. % Rs. % Rs % Rs. %
Mark-up /return/
interest earned
54,821,29
6
51,616,0
07
5.8
%
40,043,8
24
27% 31,786
,595
42
%
25,778
,061
53
%
Mark-up/ return/ 17,987,76 15,837,3 12 11,560,7 (1.4) 7,865, 56 4,525, 74.
74
interest expensed 7 22 % 40 533 % 359 8%
Net Mark-up /return/
interest income
36,833,52
9
35,778,6
85
2.8
%
28,483,0
84
22.7
%
23,921
,062
35
%
21,252
,702
42
%
Provision for
diminution in the
value of investment –
net
444,476 1,484,21
8
(2.3
)
2,683,99
4
(5) 105,26
9
76
%
121,19
7
72.
7%
Provision against non-
performing loans and
advances – net
3,100,594 5,796,52
7
(0.8
)
1,335,12
7
57% 2,959,
583
4.5
%
1,014,
540
67
%
Bad debts written off
directly
52,047 41,576 20
%
- - 199 99.
6%
47,000 9.7
%
3,597,117 7,322,32
1
(1.0
3)
4,019,12
1
(0.1) 3,065,
051
14.
8%
1,182,
737
67
%
Net mark-up /interest
income after
provisions
33,236,41
2
28,456,3
64
14
%
24,463,9
63
26% 20,856
,011
37
%
20,069
,965
39
%
Non-mark-up / interest income
Fee, commission and
brokerage income
4,129,540 3,455,94
8
16
%
2,866,72
9
30% 2,634,
610
36
%
2,311,
235
44
%
Dividend Income 543,906 459,741 15
%
617,554 (0.13
)
632,30
0
88
%
811,80
1
(0.
49)
Income from dealing
in foreign currencies
632,346 341,402 46
%
727,564 (0.15
)
693,40
8
(0.0
9)
692,01
0
(0.
09)
Gain on sale of 411,834 773,768 (0.8 740,429 (0.79 1,500, (9.9 605,86 (0.
75
securities – net 7) ) 865 ) 5 47)
Unrealized loss on
revaluation of
investments
- - - (103,198
)
(13,10
5)
- -
Other income – net 547,680 612,026 (0.1
1)
942,362 (0.72
)
1,000,
149
(0.8
)
570,50
5
(0.
04)
Total non-mark\
interest income
6,265,306 5,642,8
85
9.9 5,791,4
40
7.6% 6,448,
227
(3) 4,991,
416
20
%
39,50,718 34,099,2
49
(7.6
)
30,255,4
03
(6.6) 27,304
,228
(5.9
)
25,061
,381
(5.
3)
Non-mark-up / interest expenses
Administrative
expenses
12,173,942 10,111,
330
16% 7,546,7
87
38% 5,426,
116
55% 6,48
2,59
2
46
%
Other provision /
(reversal) – net
88,261 142,82
4
(0.6) 10,120 88% (3,743
)
1% 11,4
11
87
%
Other charges 986,440 690,15
0
30% 830,83
9
15.8
%
573,83
0
41.8
%
- -
Total non-mark-up /
interest expenses
13,248,643 10,944,
304
17% 8,387,8
37
36% 5,996,
290
54% 6,56
0,71
1
50%
Extra ordinary /
unusual item
- - - - - - - - -
Profit before taxation 26,253,075 23,154,
945
1.5% 21,867,
566
16% 21,308
,035
18.8
%
13,0
18,4
50%
76
87
Taxation
Current year 8,027,433 7,703,3
05
4% 7,341,25
7
8.5
%
6,442
,356
19.7
%
4,611,
359
42.5%
Prior years - (2,232,
226)
- (864,824
)
- (1,29
4,473
)
- (149,7
63)
-
Deferred 1,352,467 2,188,5
69
(6.1) 16,533 98.
7%
894,5
90
33.8
%
(365,5
24)
(1.2)
9,379,900 7,659,6
48
18% 6,49296
6
30.
7%
6,042
,473
35% 4,096,
072
56%
Profit after taxation 16,873,175 15,495,
297
8.2% 15,374,6
00
8.9
%
15,26
5,562
9.5% 8,922,
415
47%
Unappropriated Profit
brought forward
15,779,27 9,193,
332
(4.8) 5,130,7
50
(2.2
)
5,530
,973
(2.5) 502,38
8
68%
Transfer from surplus
on revaluation of
fixed assets-net of tax
21,792 22,324 (0.02
)
21,319 2.2
%
11,85
5
45% 83,749 (2.8)
15,800,919 9,215,656
41.7%
5,152,069
67%
5,542,828
64% 586,137
96%
Profit available for appropriation
32,674,094 24,710,953
24% 20,526,669
37%
20,808,390
36% 9,508,552
70%
77
COMPETITIVE ANALYSIS
Competitive Factor
MCB Habib Bank Limited
Allied Bank of Pakistan
United Bank Limited
Total Assets 567,552,613 924,699,403 468,044 698,784,979Total Liabilities 488,348,404 828,448,632 413,956 630,369,914
Revenue 54,821,296 81,325,028 44,993 59,331,761
Major competitors of MCB are Habib Bank Limited, Allied Bank of Pakistan and United Bank
Limited. By competitive analysis we came to know that MCB’s total assets are 567,552,613
which are less than the HBL’s total assets of 924,699,403 and above than the total assets of UBL
and ABL. It means MCB is doing well as compared to UBL and ABL but it is still far behind the
HBL.
At liabilities side MCB’s liabilities are less than its all competitors. ABL’s liabilities are less than
those of MCB because its assets are less as well. So ABL is weak competitor of MCB.
On revenue side we see that MCB’s revenues are greater than those of ABL. But they are less
than those of UBL and very less than the revenues of HBL.
So HBL is the strongest competitor of MCB.
MCB still needs to improve its financial position to grasp the market share of HBL.
78
FUTURE PROSPECTS
Key features of MCB future prospects are:
MCB is determined to work on the customer satisfaction by launching new products.
MCB wants to capture all the local markets and wants to capture the share of global
market as well by payroll, trade policy and making the cash management more effective
MCB aims at introducing more affective financial services to take the leading position in
the banking industry.
MCB targets at reducing the expenditure and investing in the businesses which are more
profit oriented.
MCB is planning to increase its branch network by purchasing more land area and by
establishing new offices there.
MCB is looking to establish ATM facility at every branch.
Virtual banking, mobile banking is proving of MCB’s future outlook for virtual customer
relations management.
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WEAKNESSES OF THE ORGANIZATION
Following weaknesses has been observed in the operations of the organization:
Inappropriate Advertisement:
Majority of people are not aware about the products of the MCB. This is all due to
absence of a proper advertisement campaign.
Discrimination among Customers:
Customer service department discriminates between customers by preferring rich and
well dressed persons over the poor and simple one. This behavior should be negated
Mismanagement of Time:
Another weakness of the branch is time mismanagement. Branch closing time is 5:30 pm
but employees keep on working till 7:00 pm or 8:00 pm. This happens due to absence of
a proper schedule.
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CONCLUSION
My internship had been an excellent experience of 6 weeks. I learnt a lot about the banking
industry and the professional life.
I learned about the working of various departments. I learned how to open an account, how to
deal the customers effectively, how to complete the given task within deadline.
I learned about the working of accounts and finance department. I learned to make financial
statements according to professional standards. I learned to do the financial analysis. My
experience in the department increased my basic knowledge about finance and accounts.
I learned how to compare the company’s performance with those of competitors’.
Group work taught me how to manage the conflict.
MCB is a great organization to work and learn. It is one of the reputed organizations in our
banking industry. Financial figures of the bank highlight the bank’s contribution in Pakistan’s
economy.
It was a matter of great honor for me to work in MCB.
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RECOMMENDATIONS
Some recommendations which can improve the branch’s performance are:
Proper Advertising:
Bank must let the potential customer know about the attractive products of MCB. This is
done by the advertising on television and through press coverage, in conjunction with
direct mail, window displays, leaflet in branches and in other appropriate locations (such
as hotels, shops etc.) and including leaflet in statements of accounts sent to existing
customers.
Availability of more ATMs:
Automated Teller Machines should be available at every branch for increase in customer
Service. It will attract other competitor’s customers as well.
Increased Services:
One way to retain the customer is to offer wide range of the services such as tax advice,
free life insurance equivalent to amount deposited, shares portfolio management , fund
management facility etc. Bank must have slightly different mix of services and mean of
providing these so that customers can choose which suits them best.
Time Management
There should be a good management of time for the sake of employees i.e. offering them
free break hours instead of making them to work in this time as well.
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Employee Career Development
MCB should provide greater facilities to employees and give them bonuses for their hard
work and promotions as well. There is a criticism on bank management that the salaries
of the employees are not increasing properly. This can shake the confidence and work
habit of the employees.
Recruitment of Professional Staff
The bank should hire banking professionals having experience in their respective fields
that will boost the performance of the bank.
Job rotation and promotions
Most of the bank employees have been sticking on a seat from years, these results in
making them master of one particular job and losing their grip on other bank operations.
Job rotation is essential for such employees. Promotion policy should be adjusted.
Better communication system
Steps should be taken to improve communication within organization so that employees
can deliver their grievances to higher management.
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REFERENCES
Muslim Commercial Bank Limited. (2012).Annual Report. Retrieved from
https://www.mcb.com.pk/uploads/FCG/docs/MCB%20Annual%20Report_2012.pdf
Muslim Commercial Bank Limited. (2010). Annual Report. Retrieved from
https://www.mcb.com.pk/uploads/FCG/docs/Annual%20Report%202010.pdf
Muslim Commercial Bank Limited. (2009). Annual Report. Retrieved from
https://www.mcb.com.pk/uploads/FCG/docs/MCB%20Annual%20Report%202009.pdf
Muslim Commercial Bank Limited. (2008). Annual Report. Retrieved from
https://www.mcb.com.pk/ir/pdf/MCB%20Annual%20Report%202008.pdf
Muslim Commercial Bank Limited. (2007). Annual Report.. Retrieved from
https://www.mcb.com.pk/uploads/FCG/docs/MCB%20Annual%20Report%202007.pdf
Muslim Commercial Bank Limited. (2006). Annual Reports. Retrieved from
https://www.mcb.com.pk/uploads/FCG/docs/MCB%20Annual%20Report%202006.pdf
Muslim Commercial Bank Limited. (2013). Financial Reports. Retrieved from
https://www.mcb.com.pk/ir/fin_data_rep.asp
Pakistan Stock Exchange http://www.pakstockexchange.com/stock2/index_new.php
Eugene F. Brigham, Michael C Ehrhardt. (2010). Financial Management: Theory and
Practice .13e
United Bank Limited, Pakistan. https://www.ubldirect.com/corporate/Default.aspx
Erum Zadi. (2010, Nov 26). MCB maintains Edge over Competitors. Retrieved from
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/26-
Nov-2010/MCB-maintains-edge-over-competitors
Allied Bank of Pakistan. https://www.abl.com/
Habib Bank Limited http://www.hbl.com/about-us.php
http://www.hbl.com/downloads/pdf/annual/2010/2010-financial-statements-group.pdf
https://www.abl.com/investor-relations/financials-reports/
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