mcb islamic

INTRODUCTION

Learning and gaining knowledge through studies from an institute and applying

that knowledge into an organization are two very different things. During my

studies, my main objective was to learn everything that I could so that I could use

that knowledge for a better cause in future, like for advancement in career.

But when I came to MCB for internship, I observed that it really didn’t matter at

first what my skills were, what mattered was my behavior and how cooperative I

was with all the staff members. Small tasks which didn’t really required much skill

like making entries in registers and binding the printings of the posting in the files

were given to me to check how much was I interested in finishing the tasks that

were assigned to me. Once they found me hardworking and determined towards

learning, they started assigning me complicated tasks which explained to me the

different process going on in the bank.

I have divided this report into three chapters. The first chapter explains the

introduction of the organization, its products and services, SWOT analysis and

the different departments of the branch and their working. The second chapter

explains the tasks done by me on weekly basis and finally I have concluded the

report with some recommendations for MCB Islamic Banking and IBIT and some

of the new things that I learned from my internship.

Institute of Business & Information Technology 1

EXECUTIVE SUMMARY

MCB Bank Limited (Formerly Muslim Commercial Bank Limited) has a solid

foundation of over 60 years in Pakistan, with a network of over 1000 branches,

over 400 MCB ATMs in 41 cities nationwide and a network of over 12 banks on

the MNET ATM Switch.

MCB's operations continued to be streamlined with focus on rationalization of

expenses, re-alignment of back-end processing to increase productivity,

enhancement of customer service standards, process efficiency and controls.

The Bank has taken the lead in introducing the innovative concept of centralizing

Trade Services in the country by providing centralized foreign trade services to

branches with a view to improve efficiency, expertise and reduce delivery cost.

During my internship in MCB I worked in Remittances, Advances and Operations

department and I successfully completed all the task/duties that were assigned to

me.

During the course of internship I learned about different functions performed by

Remittances, Advances and Operations department and bank as a whole. I also

learned bank’s correspondence with their customers and within branches. I

learned about documentation requirements and record keeping for different

activities and processes.


MCB BANK LIMITED

MCB is one of the leading banks of Pakistan incorporated in 1947. MCB was

nationalized in 1974 along with all other private sector banks. It was privatized in

1991 when Nishat Group bought a majority stake in the bank. MCB’s shares are

traded on all three exchanges of Pakistan and its global depositary receipts are

listed on the London Stock Exchange. Malayan Banking Berhad (“Maybank”), the

largest bank in Malaysia by total assets, has a 20% equity interest in MCB.

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 and

managing its loan book through improved risk management processes.

MCB is Pakistan’s fourth largest bank by assets having an asset base of PKR

445 billion at December 31, 2008 on a consolidated basis and the largest bank

by market capitalization. The Bank has a nationwide distribution network of over

1,050 branches. * In 2008, MCB reported an after tax profit of PKR 15.3 billion

on a consolidated basis.

*Source: mcb.com.pk


MISSION & VISION

Vision statement:

“To be the leading financial services provider, partnering with our customers for a

more prosperous and secure future.”

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.”

MCB TOWER:

A Vision of the Future:

The modern, urbane architecture and intelligent design of MCB Tower reflects

MCB’s pioneering role in the banking arena, providing cutting edge, innovative

banking solution, leading with an edge of technology.

Setting Ever-Higher Standards:

Towering at 116 meters, with 29 levels and 3 basements, MCB tower is the

tallest building in Pakistan. It is a sound representation of MCB’s leadership

position in the banking sector, testified by four “best bank in Pakistan” Euro

Money Awards in five years.


Manifestation of Strong Foundation:

MCB tower is a manifestation of MCB’s strong foundation with over 50 years of

banking excellence and represents its commitment towards always staying a

step ahead.

Understanding At all levels:

From individual customers to corporate and commercial clients, MCB’s flexible

solutions reach out to a diversified audience is reflected in all levels of MCB

tower.


CORPORATE PROFILE OF MCB

Board of Directors: Mian Mohammad Mansha Chairman

S.M. Muneer Vice Chairman

Mohammad Aftab Manzoor President & Chief Executive

Tariq Rafi Director

Mohammad Arshad Director

Shahzad Saleem Director

Sarmad Amin Director

Mian Umer Mansha Director

Aftab Ahmed Khan Director

Atif Yaseen Director

Advisor Raza Mansha

Audit Committee Mian Mohammad Mansha Chairman

Mian Umer Mansha Member

Aftab Ahmed Khan Member

Chief Financial Officer Ali Munir

Company Secretary Tahir Hassan Qureshi


AWARDS WON BY MCB

Euro money Awards:

Best Bank In Asia Award 2008

Best Bank In Pakistan Award 2006





Best Domestic Bank Award 2000

Asia Money Awards:

The Best Domestic Commercial Bank Award 2005

The Best Domestic Commercial Bank Award 2004


PRODUCTS & SERVICES OF MCB BANK LIMITED

MCB is catering to the growing needs of its customers by providing new products

and services. The products and services that are being offered by MCB for

consumer banking are:

1. ATMs :

MCB has the nation's largest network of over 197 ATMs and is still growing. The

customers can get 24 hour convenience of cash withdrawal, mini statements,

and bill payment and funds transfer services. The bank provides 24 hours

banking services through the largest ATM network in Pakistan covering 24 cities

with over 262 locations.

2. Mobile Banking :

Banking at fingertips, the customers can dial in anytime to get information

regarding balance and mini statements.

3. Call Centre :

For answers to queries, banking services, ATM services, mobile banking

services, RTC services, tele- banking services and MCB product information, the

customers can avail this facility. 111-000-622.


http://www.mcb.com.pk/Locators/atm.asp

http://www.mcb.com.pk/OnlineServices/mobile_about.htm

http://www.mcb.com.pk/OnlineServices/callcentre_about.htm

4.Smart Card:

MCB Smart cards work on ATMs and Point of Sale terminals at merchant

locations & offer the following features:

Purchasing

Bill payments

Funds transfer

Cash withdrawals

Balance inquiry

Mobile banking

Mini statement

5.Rupee Traveler Cheques:

MCB Rupee Travelers Cheques are as good as cash, in fact better. Better

because with Rupee Travelers Cheques the customers have the power to

purchase and a feeling of security that if the customer loses it, he/she can get a

refund.

MCB Rupee Travelers Cheques are accepted at major shops, travel agents,

hotels, business establishments and MCB branches all over Pakistan. The

customer doesn’t have to be an MCB account holder to buy the Rupee Traveler

Cheques. Anybody can purchase them. It's a safe and convenient way to

conduct everyday business. At a time when thefts and robberies are on the

increase, people are better off carrying Travelers Cheques rather than money.


6.Bill payment

MCB also provides the facility of utility bills payment to its customers. The

customers can deposit their utility bills in any MCB branch that is near their

homes.

7.Virtual Banking:

MCB Virtual Internet Banking offers the customers the convenience to manage

and control their banking and finances; when they want and where they want.

MCB’s Virtual Internet Banking facility is:

Simple

Secure

Free of cost.

MCB Virtual Internet Banking allows the customers to access banking services,

24 hours a day, 7 days a week and throughout the year.

What do they Offer?

MCB Virtual Internet Banking offers a wide range of online services which makes

banking accessible anytime and from anywhere.

Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recent transaction

history for those account(s).

Statement-by-Period of each of the listed accounts, based on the period

specified.

Immediate or Scheduled Transfer of Funds between the customer’s own

accounts, as well as to third-party accounts setup as beneficiaries,

maintaining accounts with MCB.

Scheduling of ‘One-Time’ as well as ‘Recurring’ Funds Transfers.

Payment of utility bills for registered Utility Companies.


Bulk Salary Transfer for Corporate Customers, to facilitate them in paying

salary to the corporate employees, who maintain accounts with MCB.

Cheque Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to the processing

of specified payments and transfers.

Personal Alerts for reminding of pre-specified events and occasions.


HIERARCHY OF MCB AJMAL HOUSE BRANCH


CHEIF MANAGER

MANAGER OPERATIONS

GENERAL BANKING OFFICER

CASH OFFICER

CASH OFFICER

INCHARGE CURRENT/ SAVING &

REMITTENCE

MANAGERCREDITS

FOREXOFFICER

CREDITS OFFICER

MCB ISLAMIC BANKING

Islamic Banking Division was formed with effect from 1st January 2003, which in

a short span of time, has developed sufficient expertise, necessary infrastructure,

information technology, and manpower to run Islamic Banking Operations and

offer Islamic Banking Products.

PROHIBITION OR RIBA ACCORDING TO QURAN & HADITH

Riba (Interest) in Quran:

“O believers fear Allah and give up that interest which is still due to you if you are

true believers; but if you do not do so then you are warned of the declaration of

war against you by Allah and His Messenger. If, however, you repent even now

(and forgo interest), you are entitled to your principal; do not wrong, and no

wrong will be done to you”.


SAYING OF HOLY PROPHET

“It has been reported by Hazrat Abu Hurairah on the authority of the Prophet, that

the Prophet said, “Refrain from seven things which are deadly”. The companions

asked him what these are. He said (i) to associate partners with Allah, (ii) to case

spell, (iii) to kill someone without a reason valid in the eye of Allah, (iv) to devour

interest, (v) to devour the property wealth of an orphan, (vi) to runaway from the

battle field, and (vii) to falsely implicate innocent and chaste women of vulgarity”.

This saying has been reported by Bukhari, Muslim, Abu Dawood and Nisai.


MISSION & VISION OF MCB ISLAMIC BANKING

MISSION STATEMENT:

“To play a dynamic role in promotion of Islamic Banking and win

customers trust by providing Shariah compliant financial services”

VISION STATEMENT:

“To become a leader among Islamic Banks of the country in the coming

years capturing major share of the domestic Islamic financial market”.

SHARIAH ADVISOR:

Dr. Muhammad Zubair Usmani, working as Shariah Advisor in MCB Islamic bank

since July 2000 is a prominent scholar having Ph.D. degree in Islamic Finance as

well as Fazil Takhassus from Jamia Darul Uloom Karachi, (i.e. specialist of

Islamic Fiqh and Fatawa).

He has attended and addressed several international and local seminars /

conferences as guest speaker in Pakistan as well as abroad.

He has also worked as Research Scholar and member of various forums and

committees formed for promoting the cause of Islamic Banking in Pakistan and

abroad.

All products are approved by our Shariah Advisor Dr. Muhammad Zubair Usmani

and these are further approved and vetted by Dar ul Ifta, Jamia Dar ul Uloom

Korangi Karachi.

Majority of the products are signed by Maulana Muhammad Taqi Usmani as well.


LEGAL ADVISOR:

M/s Mohsin Tayebaly & Co., Advocates & Legal Consultants, has vetted all

documentation. The Co. for this purpose not only has expertise in legal and

corporate affairs but also have competent lawyers possessing knowledge of

Shariah.

HOW IS THE RETURN HALAL?

Care would be taken in ensuring that both the arrangements of accepting

deposits from customers, and investing that amount in Islamic Modes of

Financing, are done in a strictly Shariah-compliant manner. On the basis of

approval from reputed Shariah scholars, who belong to internationally renowned

university for Islamic education, products have been designed to not only suit the

needs of depositors/ borrowers but also remain strictly in compliance with Islamic

Shariah. Moreover, their Shariah Advisor, Dr. Maulana Muhammad Zubair

Usmani would also monitor transactions on a daily basis.

Elements of Riba have been eliminated completely from the contracts so that

income earned through investments in assets is completely halal and is shared

by the depositors in a Shariah-compliant manner. A transparent system of weight

ages is used to calculate the profit rates on the basis of which profits are

disbursed to each customer. These weight ages are announced by the bank at

the beginning of each month/ term and posted on the Notice Boards of Islamic

Banking Branch as well as on the website.


DIFFERENCE B/W ISLAMIC & CONVENTIONAL BANKING

CONVENTIONAL BANKING

ISLAMIC BANKING

The functions and operating modes of

conventional banks are based on fully

manmade principles.

The functions and operating modes of

Islamic banks are based on the

principles of Islamic Shariah.

The investor is assured of a

predetermined rate of interest.

In contrast, it promotes risk sharing

between provider of capital (investor)

and the user of funds (entrepreneur).

It aims at maximizing profit without

any restriction.

It also aims at maximizing profit but

subject to Shariah restrictions

It does not deal with Zakat. In the modern Islamic banking system, it

has become one of the service-oriented

functions of the Islamic banks to be a

Zakat Collection Centre and they also

pay out their Zakat.

Lending money and getting it back

with compounding interest is the

fundamental function of the

conventional banks

Participation in partnership business is

the fundamental function of the Islamic

banks. So the Islamic banks have to

understand customer's business very

well.


It can charge additional money

(penalty and compounded interest) in

case of defaulters

The Islamic banks have no provision to

charge any extra money from the

defaulters. Only small amount of

compensation and these proceeds is

given to charity. Rebates are given for

early settlement at the Bank's judgment.

Very often it results in the bank's own

interest becoming prominent. It makes

no effort to ensure growth with equity.

It gives due importance to the public

interest. Its ultimate aim is to ensure

growth with equity.

For interest-based commercial banks,

borrowing from the money market is

relatively easier

For the Islamic banks, it must be based

on a Shariah approved underlying

transaction.

Since income from the advances is

fixed, it gives little importance to

developing expertise in project

appraisal and evaluations

Since it shares profit and loss, the

Islamic banks pay greater attention to

developing project appraisal and

evaluations.

The conventional banks give greater

emphasis on credit-worthiness of the

clients.

The Islamic banks, on the other hand,

give greater emphasis on the feasibility

of the projects.

The status of a conventional bank, in

relation to its clients, is that of creditor

and debtors

The status of Islamic bank in relation to

its clients is that of partners, investors

and trader, buyer and seller.


SWOT ANALYSIS OF MCB ISLAMIC BANKING

STRENGTHS:

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

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

factors it has established a good reputation in the banking market. The name of

MCB makes us recall the highly cooperative and professional individuals ready to

serve with maximum zeal and zest.

Being an Islamic bank in Pakistan with a reputation of MCB commercial banking

gives MCB Islamic Banking an edge over the other Islamic banks, use of over 55

year experience and bundle of resources of conventional banking give MCB

Islamic a unique position in the Islamic banking sector.

WEAKNESSES:

The majority of people are not well aware of the products of MCB Islamic

banking. Therefore it should advertise extensively because the majority of people

do not feel any difference in Islamic banking and conventional banking so it must

communicate effectively that how it differs from conventional banking because

the target market is those people who do not want to use conventional banking.

Lack of job satisfaction among the employees is another weakness. Currently

most employees in the branches are not happy with their jobs especially in

Islamic Banking branches. Because these branches are not online and thus the

workload has increased.


OPPORTUNITIES:

There are too many people in Pakistan who want to deposit their money in

Islamic mode of financing due to their religious points of view. MCB as a bank

that offers both conventional and Islamic banking can cater a huge customer

market. But for that MCB has to advertise its Islamic banking products effectively

so that customer would come to know that that it differs from conventional

banking and how it is Halal.

Other than that it has a unique position in Islamic banking. Due to a very good

reputation and huge capital of conventional banking, it can also use the good will

and experience of conventional banking.

THREATS:

Change in government policies has 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 new entrants in the banking sector,

so to survive; one will have to prove itself in its services through excellent

management and will have to satisfy its shareholders. Otherwise it will be out the

market.

In a country like Pakistan where people have very rigid view on banking that it is

totally based on interest, it is very difficult to change the views of people

regarding Islamic banking. It requires lot of effort and creation of awareness

through advertisement.


“AL-MAKHRAJ” RIBA FREE ISLAMIC INVESTMENT /

DEPOSIT SCHEME

Al-Makhraj (RFA) is a Joint Pool Islamic Investment/Deposit scheme with

the objective to earn Halal Profits in strict conformity with the principles of

Shariah.

PURPOSE:

Its purpose is to cater to investment requirements of people who want to

invest their funds in Shariah Complied Islamic mode of transactions /

financing.

MCB has developed the Islamic modes of financing which shall be

administered in conformity with the Shariah requirements.

MEANING OF AL-MAKHRAJ

MCB’s Deposit Scheme has been named as ‘Al-Makhraj’ since it has been

derived from the Arabic word ‘Khrooj’ which means EXIT. Thus, it bears

relevance as we EXIT from Riba Based Banking to Riba Free Banking.

RELATIONSHIP OF DEPOSIT HOLDER & BANK

Investor/Deposit Holder --- Rabbul Maal

Bank --- Rabbul Maal to a limited extent, 8% of risk weighted assets.

Bank --- Mudarib as Fund Manager


INVESTMENT DECISIONS:

Funds will be managed by MCB, acting as Mudarib on a discretionary basis

i-e the investment decisions will be completely of MCB management.

TARGET MARKET:

General Public

Corporate – Mid Market Business Group

Institutions working on Islamic Development Project/Cause

Trusts / Foundations

TYPES OF ACCOUNTS IN MCB ISLAMIC BANKING

Following are the different types of accounts offered by MCB Islamic

Banking.

DEPOSIT SCHEMES:

Al-Makhraj Saving Account

Ianat Account

Al Makhraj Term Deposit

Basic Banking Account

AL-MAKHRAJ SAVING ACCOUNT

The minimum deposit requirement for Al-Makhraj Saving Account is only

Rs. 5000 and profits can be earned 6-monthly. Other features associated

with this product are as follows:


Minimum Initial Deposit: Rs. 5000

Islamic Tools used in designing the product: Mudaraba/ Musharaka.

Product to be availed by: Individuals & Joint Account Holders (Local)

Companies, Corporate, Trusts, etc

Special Advantages

For Customer = Bi-Annual Profit Payment; Withdrawal Facility

Shariah = Meets requirements for Shariah Compliance

Additional Features:

Personalized Cheque books

Withdrawal Facility from ATM/ Debit Card

Online deposit as per bank's policy

Virtual Banking

Call Centers Facilities

6-monthly profit payment on the basis of monthly declared

rates

Issuance of duplicate statement of account

Free bank balance certificates (once in 6 months)

Taking stop payment/ hold mail/ standing instructions

No penalty if balance falls below minimum level.

Personal financial consultancy services (regarding Shariah

Compliant products)

Utility bill payment via ATM card

Choice of statement frequency (as per Schedule of Charges)

Weight ages are made according to tiers (Volume-wise and Time

wise).

Banking Network: IBD's Branch only.

Profit payment options, 6 monthly.


IANAT ACCOUNT

For customers who are looking for an account that gives them the ease of

doing unrestricted number of transactions, MCB Islamic offers Al-Makhraj

Ianat Account. With a minimum of only Rs. 10,000, Ianat Account may be

opened. With all the features and facilities that this product offers, it is highly

recommended for management of business funds.

Features of the product are as follows:

Minimum Initial Deposit: Rs. 10,000

Product to be availed by: Individuals & Joint Account Holders (Local),

Companies, Corporate, Trusts, etc

ADDITIONAL FEATURES:

Personalized Cheque books

Withdrawal Facility from ATM/ Debit Card

Online deposit as per bank's policy

Debit card; Utilities payment via ATM card

Virtual Banking

Call center facilities

Free bank balance certificates (once in 6 months)

Taking stop payment/ hold mail/ standing instructions

Choice of statement frequency (as per Schedule of Charges)

No penalty if balance falls below minimum level.

Issuance of duplicate statement of account (as per Schedule of

Charges)

Banking Network: IBD's Branch only


AL-MAKHRAJ TERM DEPOSIT

A minimum of Rs. 25,000 is required for investment in Al-Makhraj Term

Deposit. Choice of tenors can be made from a list of options namely 1, 3 & 6

months, 1 or 2years. Profit payment options available to customers are

monthly, quarterly and/ or at maturity.

Details of the product are as follows:

Minimum Deposit: Rs. 25,000

Islamic Tools used in designing the product: Mudaraba/ Musharaka

Tenors Available:1 month, 3 month, 6 month, 1 year or 2 years

Product to be availed by: Individuals & Joint Account Holders (Local),

Companies, Corporate, Trusts, etc.

Special Advantages:

For Customers = Profit Payment Options customized to suit needs of

customers; Minimum Deposit requirement’s lower than most banks

so it is more accessible/ affordable for people

Shariah = Meets requirements for Shariah Compliance

Additional Features:

Call center facilities

Personal financial consultancy services (regarding Shariah Compliant

products)

Taking hold mail/ standing instructions for profit payments etc

Different weight ages based on tenors and profit payment options

Communication Process: Announcement every month on notice

boards, and website


Banking Network: IBD's Branch only

Profit Payment Options: Monthly/ Quarterly/ At Maturity (Monthly

payment option to be made available later in a few months time).

FUND BASED FACILITIES

MCB offers three broad Islamic fund based facilities:

1. Ijarah

Car Ijarah

Equipment Ijarah

2. Murabahah

Domestic(local Purchase)

International

3. Letter of Credit

FUTURE PRODUCTS

In the near future, the customers would be able to avail the following products

Musharaka Financing

Export re-finance

Diminishing Musharaka (housing finance)


DESCRIPTION OF DEPARTMENTS

During my six weeks internship at MCB Islamic Banking, Ajmal House branch, I

worked in all departments and sections of the branch and observed their

functioning. The description of those departments is explained below.

REMITTEMCES:

Remittance is one of the important functions of any commercial bank. Mr.

Noman, who is Remittance in charge of the branch, gave me information about

this section of bank.

Remittance in favor of the beneficiaries may be made in the following ways:

Issuance of drafts

Issuance of mail transfer

Issuance of telegraphic transfer

Electronic Funds Transfer

All remittances are affected at the request of the customer on submission of the

bank’s required requisition form. The remittances may be affected by debit to the

customer’s account, if authorized by him or by deposit of the required amount of

cash together with charges as per bank’s tariff. The remittances may be

accepted only for those places where the banks own branch has functional office.

All requests of remittance must clearly state the place of drawing, name of the

payee and his account number.


COMMON ELEMENTS:

SF-100 Fund Transfer Application is the general form for any type of funds

transfer as is evident from its name i.e. Demand Draft, Pay Order, Telegraphic

transfer or Internal Transfer. All instruments including CDR are marked on the

top with “NOT MORE THAN PKR *****/**”. All advices and funds relating to funds

transfer including CC, DD, PO, TT, MT are subject to test and are signed by IBS

holders as per bank’s and SBP’s regulations. The numbers of CC, DD, PO, TT,

MT are marked as per bank’s registers and sequence with branches.

DEMAND DRAFT

A demand draft is a written order, drawn by one branch of a bank upon another

branch of the same bank, or upon another bank under special arrangements to

pay a certain sum of money to or to the order of a specified person.

Features of DD

Demand draft is a negotiable instrument.

It is neither payable to the bearer nor drawn on branches situated

within the same city.

Legal provisions are same as that of cheque.

It is to be ensured that purchaser can at least sign.

Thumb expression is not accepted on DD.

There should be a branch at the place where that payment is to be

made.

The following are the parties.

a. Purchaser

b. Issuing branch

c. Drawee branch

d. Payee/beneficiary


Procedure of issuance:

Filling the application (S.F 100).

Payment through cash or cheque

Entry in the DD issued register.

Making the demand draft.

Signing the demand draft

Application of test

DD payment precautions:

Scrutinize the advice whether it pertains to the issuing branch

Check the DD serial number and test if above

Rs 25,000

If there is any cutting on the advice or the draft, it has to be dually

authenticated under full signature of authorized officer.

Entry in the DD payable register in case of manual branch.

Checking the test and signatures of the authorized signatory.

Accounting entry for DD issuance:

Debit party account

Credit HO (specific branch of MCB on which DD is issued)

Accounting entry for DD payable:

HO debit specific branch by which DD issued

DD payable credit

Once the DD is presented to the branch then the following entry

DD payable debit

Party account credit.


PAY ORDER

A pay order is a written authorization for payment, made in receipt form issued

and payable by the bank, to the person named and addressed therein on his

giving a proper discharge thereon.

Features:

PO cannot be issued to a minor

It is meant for bank’s own payment but in practice these are also

issued to the customers for making payments

It is used for making payments within the same city.

It is issued by and drawn upon and payable by the same branch of

the bank

It is neither transferable nor negotiable and as such it is payable to

the payee named therein.

It is in a receipt form and therefore it is payable only after obtaining

a discharge of the payee on adequate revenue stamps.

Parties to a Pay Order:

Following are the parties to a pay order

Purchaser

Issuing/ paying branch

Payee

Accounting entries for PO issuance:

Debit party or cash

Credit pay order issuance


Accounting entry for PO payable:

Debit PO

Credit party

TELEGRAPHIC TRANSFER

Transfer of funds from one branch to another branch of the same bank or upon

another bank under special arrangements for the payment to the beneficiary

through telegram// fax is called Telegraphic Transfer

TT instructions regarding payment are sent to the drawee branch in a coded

language and under confidential number known as test number.

Features:

TT is not negotiable

Funds remitted are not payable to bearer

Not allowed within the same city

If the beneficiary is not maintaining account with drawee branch,

funds can be affected by "ADVISE AND PAY”

Parties in TT

Applicant

Remitting or drawing branch

Drawee branch

Beneficiary/ payee


Issuance procedure

Application on SF-100

Payment through cash or cheque

Preparation of TT message

Application of test on the message

Confirmation of the cable sent message

Dispatch of confirmation

Accounting entries for TT issuance

Debit party account

Credit to HO for specific branch of MCB

Accounting entries for TT payable

Debit HO specific branch of MCB

Credit TT payable

Debit TT payable

Credit party.


CREDITS DEPARTMENT

MCB offers three broad Islamic fund based facilities:

4. Ijarah

Car Ijarah

Equipment Ijarah

5. Murabahah

Domestic(local Purchase)

International

6. Letter of Credit

FUTURE PRODUCTS

In the near future, the customers would be able to avail the following products

Musharaka Financing

Export re-finance

Diminishing Musharaka (housing finance)

IJARAH

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

(customer) after the Ijarah has matured. Under this scheme, MCB will be the

owner of the asset, and 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 the asset to 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’.

MCB Islamic currently offers 2 types Ijarah Products:

Car Ijarah

Equipment Ijarah

AL MAKHRAJ CAR IJARAH CONCEPT

Under the Al-Makhraj Car Ijarah scheme, customer can get a car of his choice

against monthly rentals payable to MCB Islamic Banking

At the end of the Ijarah Agreement, customer will be given a choice whether to

return the car to MCB and receive back the security deposit paid by him at the

beginning or to purchase it at a price equal to the security deposit.

Special Attractions:

Free from Riba

Fully Shariah Compliant

No rental payments from the date of booking till the time of delivery

No up-front registration / tax related expenses and fees

No up-front Insurance payment

Nominal processing fee of Rs. 4400 (Non-refundable)

A unique opportunity for customer to get any locally assembled non-

commercial or semi-commercial new vehicle of your choice in 1 to 5 years

by paying as little as 20% security deposit and NOTHING more!!


Eligible Persons:

Customer is a Pakistani national residing in the city where Al-Makhraj Car

Ijarah product is available.

Customer age is not less than 22 years & shall not be 60 (for salaried

persons) & 65 (for businessmen), before maturity of the Ijarah facility.

Customer‘s monthly salary / income is at least Rs. 15000 and your

monthly rental payment does not exceed 45% of your net monthly take

home salary / income.

Customer is a Businessman / self-employed with a minimum experience

of 3 years in the same business / profession.

Customer is an employee for 2 years with the current employer or with

overall 3 years of employment history

Shariah Compliance:

Al-Makhraj Car Ijarah Scheme has been developed under strict supervision and

approval of Dr. Maulana Mohammad Zubair Usmani, a reputed Shariah Scholar

who belongs to internationally renowned Jamia-Darul-Uloom Karachi.

EQUIPMENT IJARAH

This is the Ijarah for Machinery and other equipments to corporate clients.

Security Deposits:

10% Minimum plus any other security required by the Bank from time to time.

Legal Documentation:

Ijarah Agreement


Unilateral undertaking by the lessee to purchase the asset at the Pre-

Agreed Purchase Price on termination of Ijarah before Maturity

Unilateral undertaking by the Bank to offer to sell the asset at maturity.

MURABAHAH

It is an Islamic mode of financing that is used by the bankers to accommodate

their customers in the procurement of business inventories and other goods of

capital nature. Murabahah can be defined as follows:

“A contract between a buyer and a seller under which the later first purchases the

goods at the request of the former I.e., customer and then sells it to same

customer after adding profit.”

In accomplishing a Murabahah transaction, various relationships between the

bank and the customer emerge at different stages of the process which are

backed by documentations between the branch and the customer.

First stage:

In the first stage, the customer places the order for purchase of goods/

commodities with the bank and the bank agrees to purchase and sell the same.

The relationship thus established is that of promisor and promissee.

Second stage:

During the second stage, the customer is appointed as an agent of the

goods/commodities purchased and the relationship of principal and agent is

established.


Third stage:

During the third stage of Murabahah process, the bank places order with the

supplier and the relationship of buyer and seller is created.

Fourth stage:

During the fourth stage of Murabahah process, goods are delivered to the

customer against the recovery of Murabahah price. In this way, the relationship

of seller and purchaser is created between the bank and the customer.

Fifth stage:

The fifth stage of Murabahah is related to the creation of Murabahah finance

based upon the payment schedule furnished by the customer. The relationship of

creditor and debtor is created between the bank and the customer. The tenure

of payment is also fixed at this stage.

If the bank is not involved in this entire process and if the stages are skipped, it

would just be a loan and hence the profit earned would be interest (Riba).

Bai Murabahah:

Bai means the sale of commodity in exchange of money and Murabahah means

agreed profit. Bai Murabahah is generally called Murabahah. In this process, the

cost of the goods and the profit added thereon is made known to the customer.

The payment of Murabahah can be made by the customer either in installments

or instantly.


In the process of Murabahah, the bank first acquires the ownership, possession

and risk of the commodities and then transfers it to the customer.


MURABAHAH FINANCING:

It can be defined as

“The sale and purchase transaction in which the customer is given the facility to

pay the sale price either in installments or as per agreed schedule or as lump-

sum”

TYPES OF MURABAHAH

Following are the two types of Murabahah:

1. Local Murabahah:

Local Murabahah is the financing of the goods that are manufactured,

processed or available in Pakistan.

2. Foreign import:

It is the investment of the bank in transactions related to import/ export.

PARTIES IN MURABAHA FINANCING:

Buyer - Bank’s Customer

Seller - Provider of the goods

Purchaser/ Bank - purchases the goods on behalf of the customer


MODE OF REPAYMENT

There are two modes of repayment in Murabahah.

1. Spot Murabahah:

If the payment is made immediately in cash then it is called spot

Murabahah.

2. Deferred Sale Murabahah

If the payment is made on some agreed future date than it is deferred sale

Murabahah

PROCESS OF MURABAHAH:

The process of Murabahah includes the following steps

1. Receiving the purchase order form:

First of all the bank receives a purchase order form the customer. The purchase order contains the information like:

a. YPO number

It is the reference number of the commodity being purchased.

b. Quantity of the required goods c. Quality of the required goods d. WHT

The customer specifies in the purchase order form that whether it pays its WHT directly to the government or wants the bank to pay it on its behalf.

e. Value date

It is the date at which the customer will make the payment of the

expenses. The profit of Murabahah is to be paid to the bank on the

maturity of the tenure.


f. Mode of payment to the supplier.

The customer also specifies the mode through which he wants the

suppliers to be paid e.g. through issuance of PO/DD or direct credit to

the account of the supplier.

2. Bank’s instructions:

After receiving an order form from the client, the bank gives an instruction to

the client to act as agent on behalf of the Bank for the goods.

3. Confirmation from the customer:

A confirmation letter is sent by the client to the Bank that it has received the

goods and has found them in accordance with the order.

4. Bank’s offer to sell:

The bank now offers to sell the acknowledged goods at Murabahah sale price

to the client.

5. Customer’s acceptance:

The customer accepts the offer of the bank and purchases the goods offered

by the bank. The customer agrees to pay the Murabahah price.

6. Murabahah financing:

In this step, the calculation of Murabahah profit, Murabahah sale price and

schedule of payment is made.


Murabahah Sale Price:

The Murabahah sale price is determined from the following equation.

Murabahah sale price= invoice value + Murabahah profit @ +

Miscellaneous Exp

(Here the invoice value is the cost of the goods purchased, Murabahah profit is

the agreed profit rate on Murabahah financing and the miscellaneous expenses

include commission on PO/DD, postage charges and FED charges.)

MURABAHAH SALE TRANSACTION

In order to make Murabahah a perfectly legitimate transaction, according to

Shariah, the following points are noted:

The goods must be permissible under sharia ordered by the

customer. The bank purchases these goods establishing its

ownership thus transforming money into goods.

After purchase of goods the risk is to be borne by the bank until the

possession is passed on to the customer through an unconditional

sale.

The specification of the goods, delivery date, time, price and place as

well as other terms of the contract are certain.

As per agreed terms with the bank the customer should execute

standard documentation and furnish appropriate securities against

Murabahah facility.

Price / profit once fixed cannot be changed either on premature or

overdue repayment.

Repayment period once fixed cannot be extended.


Rollover of liabilities not permissible.

Buy-back or Repurchase of Goods not permissible.

Appropriate collateral / securities can be obtained as per mutual

consent.

LETTER OF CREDIT

A written undertaking by Bank at the request of the Buyer/Applicant to pay the

Seller/Beneficiary a certain sum of money as stipulated in the Letter of Credit,

provided that the Seller/Beneficiary complies with the terms and conditions of the

Letter of Credit.

The Letter of Credit can be issued under Wakalah contract (agency relationship)

and thereafter the goods purchased maybe financed under the Murabahah

contract (cost plus).

Types of Letters of Credit:

Revocable:

A revocable letter of credit is one which can be amended or cancelled by the

applicant or the issuing bank at any time, without prior notice, discussion or

agreement with the beneficiary. A revocable letter of credit offers no protection to

the beneficiary and is seldom if ever used.

Irrevocable L/C:

An irrevocable letter of credit can not be amended or revoked without the

agreement of ALL the parties to the letter of credit, so it provides the assurance

that providing the beneficiary complies with the terms, he/she will be paid for the

goods or services. Under UCP 600, a letter of credit is deemed irrevocable

unless otherwise stated.


Unconfirmed L/C:

An unconfirmed irrevocable letter of credit provides a commitment by the issuing

bank to pay, accept, or negotiate a letter of credit. An advising bank forwards the

letter of credit to the beneficiary without responsibility or undertaking on its part

except that it must use reasonable care to check the authenticity of the credit

which it advised. It does not provide a commitment from the advising bank to

pay, so the beneficiary is reliant upon the undertaking of the overseas bank. The

beneficiary is not protected from the credit risk of the issuing bank nor the

country risk.

Confirmed L/C:

A confirmed irrevocable letter of credit is one to which the advising bank adds its

confirmation, makes its own independent undertaking to effect payment,

negotiation or acceptance, providing documents are presented which comply

with the terms of the letter of credit. The advising bank, which may also be the

confirming bank, assumes the country (political and economic) risk of the

applicant’s country as well as the credit risk, failure and default of the issuing

bank and effects payment to the beneficiary without recourse.

In order for a letter of credit to be confirmed, a bank accepting this risk would

have a correspondent relationship with the issuing bank. If the advising bank

does not have such a relationship, the letter of credit can be confirmed by an

independent bank. The negative aspect here is the cost of adding another bank

to the scenario.

A seller should consider requesting a confirmed credit when

The credit standing of the issuing bank is unknown to the seller or viewed

by the seller as questionable.

Exchange controls in the buyer’s country may prevent local banks from

honoring certain external payments.


The importing country is suffering economic difficulties: large external debt

and/or high debt service ratios, a persistent negative balance of payments,

or a record of being late or having defaulted on its international payments.

Transferable L/C:

Under a transferable letter of credit a beneficiary (the first beneficiary) can ask

the issuing/advising/confirming bank to transfer the letter of credit in whole or in

part to another party/ies such as supplier/s (second beneficiary/ies). A

transferable letter of credit is usually used when the beneficiary is not the

manufacturer/original supplier of some/all of the goods/services. This process

enables the beneficiary to pay the manufacturer/original supplier by letter of

credit. If the bank agrees, this bank, referred to as the transferring bank, advises

the letter of credit to the second beneficiary/ies in the terms and conditions of the

original letter of credit with certain constraints defined in Article 48 of UCP 600.

In general, unless the letter of credit states that it is transferable, it is considered

non-transferable.

Revolving L/C:

Although infrequently used today, revolving letters of credit were a tool created to

allow companies conducting regular business to issue a letter of credit that could

“roll-over” without the company having to reapply, thus enabling business flow to

continue without interruption as long as the terms and conditions, quantities, and

other transaction details did not change. In addition, if a letter of credit were a

revolving one, there were few ways to stop it from rolling over; so, should a

conflict arise between the parties while the letter of credit was in place or should

the products change, there was little recourse for either party. In the business

world today, the fact is that, unless required by law or because of high risk, on-

going business is usually conducted without of letters of credit


Standby L/C:

As is the case with the revolving letter of credit, standby letters of credit are

infrequently used today. A standby letter of credit is one which is issued as a

back-up or form of insurance for the seller should the buyer default on the

agreed-upon payment terms. A standby letter of credit is issued in the same way

a documentary credit is in that the collateral needed for issuance is required by

the issuing bank and the beneficiary must comply with every detail as outlined in

the letter of credit. The problem with this instrument is that the applicant has no

guarantee, other than the seller’s word, that the standby will not be drawn against

even if payment is made as agreed. This situation is challenging, especially if the

letter of credit is confirmed and the advising bank sees only documents

pertaining to the shipment as outlined in the letter of credit and has no knowledge

of other payments being made.


OPERATIONS DEPARTMENTThere are different jobs which are performed in operations department. I will

discuss them one by one.

There are different types of clearing. First we have inward and out ward

clearing. Inward clearing means cheques sent by us for collection on the behalf

of customer and out ward clearing means cheques issued by our customers and

presented for payment through clearing. Within these types we have some more

types of clearing.

1. Normal clearing:

It takes 3 days for normal clearing and if we have a cheque of other

branch it is known as credit cheque because we have to credit this amount

into the customer account and if our cheque is deposited into other bank it

would be debited to customer account.

2. One day clearing:

Cheques amounting more then 500,000 are presented into one day

clearing. As name shows that these cheque must be cleared within a day.

For that NIFT provides a clearing house facility.

3. Inter city clearing:

When the cheque of one bank is deposited to another city for collection it

is known as intercity clearing it takes 3 to 4 days for collection. NIFT

collects these cheques on behalf of bank.

4. Cheque for collection: Inter city clearing is available in major cities and where inter city collection

is not available we use term cheque for collection. It takes around 1 week

for collection of money.


Clearing of cheques

Role of NIFT in Clearing

NIFT (National institutional Facilitation Technology) is a State bank authorized

institute for clearing of cheques between banks. It is a clearing house for banks

for all types of clearing like, intercity clearing, same day clearing and normal

clearing.

Steps in Clearing

First of all we have to match the contents of NIFT’s list with cheques they

provide. All the cheques written in list must be present in the bag.

We have to enter all the cheques in our excel sheet to have a summarized

record. And in case of any mistake in entering those cheques in MIBS

(system used for posting) we can compare this sheet with system’s result.

Then we have to check the cheques issued by our customers to check for

any errors present. It has the fallowing main steps.

1. Amount in words and figures should be same.

2. Cheque should not be more then 6 months old.

3. Stamp of clearing should be placed on every cheque.

4. Signature should match the specimen provided at the time of

opening of account

5. Account balance should be more then the value of cheque

Difference between clearing inward and outward is transferred to head

office account through debit or credit voucher.


Procedure for Dishonor cheques:

If we are going to dishonor any cheque then we attach a list with it containing a

reason with it. If the reason is “insufficient balance” then Rs 300/- are charged to

the customer for issuing that cheque. But if bank writes “present again” or any

other reason then there is no fine. For fine we have to prepare a voucher in

which we would debit the customer account and credit that amount to cheque

dishonor charges account.

Posting of a dishonor cheque in register:

All the cheques presented for clearing into other bank and returned or

dishonored must be posted into a register to have a documentary record with the

signature of person collecting that cheque back. It is recorded in the following

format:

Date Drawer Cheque# Date of cheque

Payee Presented through

Amount Returned By

Reason Signature

(A/c holder)

(Receiver of cheque)


Preparation and usage of CBT:

Currently in MCB two different types of systems are in use, first one is for

commercial branches known as Symbols and 2nd in Islamic branches known as

MIBS. Symbols to symbol branches are online but for cross branch transaction

for branches using different system we have to transfer funds through advice

known as CBT (cross Branch Transfer). We send that through a fax to the other

branch for quick adjustment and then in evening we send original advice to the

corresponding branch through TCS.

Copy A is send through TCS to the corresponding branch, copy B is for customer

and C for office use.

How to fill CBT:

First column is originating branch in which we write our branch name and

code MCB Ajmal house branch has a code of 1902. To save time we can

put a stamp in this column.

In responding branch section we write the name and code of branch to

which we want to transfer money.

Because we are going to transfer the amount to other branch and transfer

code is 9881. It should be written in transaction code section.

In reference section we would put serial # from register, where we post

these CBT’S before dispatch.

Then we write the date, amount in words and figures.

Then we put a stamp contains 2 sections, 1st is “Favoring” over there we

write the name of the person who is going to receive the payment. 2nd is

A/c # of that person.

On downward section of copy “A” we can not write any thing, it is for

responding branch. Responding branch would debit our branch A/c and

would credit its customer account, which is going to receive that money.


On copy B & C in debit section we write the A/c # of person we are

transferring his money to other branch and in contra we credit the

responding branch.


WORK DONE BY MEOn the first day of my internship, the chief manager gave me a brief introduction

of Islamic banking and introduced me to the staff members. I was given a

brochure that had the information about Islamic banking, the deposit schemes

and the different types of accounts.

During the rest of the week, the process of account opening was introduced to

me. I was given an account opening form which I studied thoroughly and learned

about the information that is required from the customer. Primary requirements of

account opening are:

Computerized CNIC

Source of income

Verysis:The bank has authorized itself for the facility of Verysis for the verification of the

CNICs of the customers for the purpose of account opening.

When a customer wants to open account with MCB, he has to fill the account

opening form and attach some documents with it as well. Following information is

required from the customer:

Title of Account

Full Name of Applicant

Occupation

Address

Telephone No.

Currency of account

Nature of Business (where applicable)

Introducer’s Name, Address & Signatures

Special instructions (if any) regarding the account


Initial Amount of the Deposit

Signature of the applicant

I also studied the KYC (know your customer) form. This form is used to find out

the risk associated with the customer that is found through:

The citizenship status

Geographical address

Occupation

Political exposure of the person

Length of banking history

Transaction profile

This form is filled in by the account opening officer. The purpose of this form is

the accountability of the customer. The customer is rated as a “high risk” or a

“low risk” customer in this form.

I studied the account opening files of the different clients to see the documents

requirements for different types of customers like individuals, private and public

limited companies. As the branch is Corporate and wholesale banking branch,

the accounts of different companies are also maintained there.

During the first week of my internship, I assisted Mr.

Mustafa in the account opening of a new customer. I got the Account opening

form and the specimen signature card filled from the customer and then filled out

the KYC form. Then I saw the process of entering the information of the customer

in the system for opening of account. I scanned the documents of the new

customer.

I also studied the SMART CARD and GOLD CARD application forms.


In the Operations department, Ms Sundus was my supervisor who is the

incharge of current/ saving. I performed the following tasks in that department.

1. Preparation of vouchers and advices:

The working in the Operations department includes the preparation of several

vouchers. Whenever any account or GL head is debited or credited, a voucher is

prepared for its documentation. Afterwards these vouchers are kept as record

and used in future if any transaction needs to be confirmed. I prepared the

following vouchers in the Operations department.

i. Clearing vouchers:

The cheques that the branch sends to NIFT for clearing are received the next

morning. A voucher is prepared (debit or credit) for the amount of clearing and

the instruments are credited to the accounts of the customers.

ii. Service charges:

Whenever service charges are charged from a customer (individual or corporate)

of the branch, these charges are debited from his/ her account through the

preparation of voucher. There are different vouchers for corporate and individual

clients.

iii. Transfer of salary:

I also prepared the vouchers for crediting the salaries of the employees of the

branch to their accounts.

iv. Preparation of advices:

I prepared SF- 179 (inter branch credit advice) in the Operations department for

the utility bills, transfer of funds of corporate clients from Premier Branch to our

branch and Onlines.


2. Preparation of Excel sheets:

I assisted my supervisor in the preparation of “Operations daily sheet”, “Clearing

sheet”, “ATM sheet”, “Trial Balance”. These sheets are prepared on Excel for

keeping a check that the transactions are balanced. There prints are taken at the

day end and are attaches with the printing of the system.

3. Arranging the files:

I was assigned the task of arranging the account opening files according to their

catalogue.

4. Filling the funds transfer application:

During my stay in the Operations department, I learned how to fill up the Funds

Transfer Applications and also filled some of these applications.

5. Filing of the printings:

I did the filing of the printings; these printings of the system are taken at each day

end and are filed in the respective files.

6. Making entries in registers:

A register is maintained for the FED charges taken from the customers. I was

assigned the task of making entries in that register form the printing of the

system.


When I was sent to Credits department, Mr. Kashif Maqsood was my supervisor

there who is the Credits manager of the Branch. He assigned me the following

tasks:

1. Preparation of Advices for funds transfer:

I prepared the inter branch credit advices for the transfer of funds on standing

instruction of the corporate clients who were taking financing facilities from the

Branch.

2. Scanning of documents:

I was also assigned the task of scanning different documents which were to be

mailed to the EFU house branch. Because Ajmal house Branch also coordinates

with the EFU House Branch which is the main corporate branch of the city.

3. Faxing the advices:

In the credits section, the funds are transferred to different branches for making

payments like payments of Murabahah. This is done through the preparation of

advices (SF-179). One copy of this advice is faxed to the responding branch and

then mailed through TCS.

4. Confirming the faxes:

Whenever an advice is faxed, it is confirmed from the responding branch that

whether they have received the fax or not and whether it is in the readable form

or not. I confirmed the advices that I faxed.

5. Preparing Excel sheet:

I was also assigned the task of taking all the vouchers of the credits section in

the Excel sheet to see if it is balanced. Its print is attached with the printing of the

system at the day end.


6. Preparation of Offer and Acceptance documents:

In the case of Murabahah, Offer and Acceptance agreement is made between

the client and the bank as described earlier in the report; Mr. Kashif also

assigned me the task of making Offer and Acceptance agreements of

Murabahah to make the concept of Murabahah clear to me. I also did the

calculations for the Murabahah sale price.

7. Making entries in the ledgers:

I made entries for the rentals taken from the customers of car Ijarah in the

Ledgers.


SUGGESTIONS

I have the following recommendations for MCB Bank limited and MCB Islamic

Banking Division.

MCB is growing at a fine rate. While doing so it needs to maintain the

status of all its branches. The main focus should be to update all old

branches to new online branches so that a stronger inter-branch

communication is maintained.

Awards, appraisals and bonuses should be arranged for the staff as they

work beyond the working hours. In Ajmal House branch, this was a normal

practice. If the staff is appraised for its services only then they can keep

the customers delighted.

For the conventional banking sector, MCB is doing very fine marketing of

all the available products and services. The Islamic Banking Division has

been there since the last six years but no proper marketing is being done

for its products and services. The Islamic banking products should be

marketed extensively so that their customer base is increased.


NEW THINGS LEARNED

I learned about the different banking processes.

Since the branch was for the individual as well as for the corporate clients,

this gave me the opportunity to learn the banking requirements of both

type of clients.

I learned about the importance of customer delightness for a bank.

I learned about the different problems that the customers face regarding

banking.

I learned about how to deal with the day to day operations in a bank and

the ways to deal with them efficiently.

I learned the importance of interaction with the co-workers that helps to

create a better working environment

And lastly, I learned that if you want to perform better you have to love

your job, only then you can achieve the heights of success.


SUGGESTIONS FOR IBIT

All that I am appraised today is owed to my grooming in IBIT. This institute has

given me knowledge and confidence that has helped me to adjust in the working

environment of today. But nothing is perfect, so to improve the quality standards

of IBIT I’d like to give the following recommendations.

Most of all, the department needs to spread awareness about its products

in the market because most people take our degrees of BBIT and MBIT as

degrees in IT and not business studies. This can be done by arranging

seminars in the department and inviting people from the market.

I would suggest that the strictness in speaking English language should be

enforced. This will help to develop confidence in the students for giving

presentations and will also help them in their professional lives.

Extra-curricular activities like debates, dramas and sports day are

regularly arranged by other departments of the university but unfortunately

we don’t see these things happening frequently in our department. These

activities will not only help to keep the students motivated and build

confidence in them but will also enhance the image of the department in

the university.

The capacity of the computer lab cannot accommodate all the students of

the department. The students face problems, especially during the

preparation of their reports. The capacity of the lab should be enhanced

immediately.


RECOMMENDATIONS FOR IBITians WHO

APPLY FOR INTERNSHIP IN MCB

MCB is a great organization to do internship. You get to learn so many things

that are routine for the staff but new concepts for you.

Since MCB’s horizon for the products and services is vast, it is a great

opportunity to learn about the diversity of banking procedures in MCB. When you

work in a bank like MCB, you understand what it like is to be really dealing with

customers face to face daily. The environment in the branch truly represented the

whole organization in front of me and all other internees. The tasks that were

assigned to me were a great learning experience which I could never get merely

through studying books.

I would highly recommend MCB for internship for future students of IBIT.


Customer Vouchers:

It is used to pass any entry regarding the customer account means whenever we

are going to make a change in customer account we have to use these vouchers.

It has 2 copies first for office use and 2nd carbon copy for the customer.

Debit voucher is used to deduct money from the account and credit

voucher is use to add money into the account.

If we receive CBT favoring any customer of our branch then we have to fill

a credit voucher to add money into his account.

If we charge any commission or transfer money to other bank on the

instruction of bank we have to fill a debit voucher to deduct money from

customer’s account.


Income and expense Vouchers

There are other vouchers which are use to post income or expense of branch.

Like if any charges recovered from customer then first we debit customer

account through above voucher then fill income voucher to record that as

income.


INTER BANK CREDIT ADVICE:


mcb islamic

Documents