sample of internship

8/2/2019 Sample of Internship

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Banking Sector Overview

Pakistans banking and finance sector grew by over 21 percent from July 2004 - March2005 amid the eight percent expansion in the services sector in Pakistan.

Financial sector in Pakistan is going through a fast-paced transition as new groups werebuying out foreign banks operations in Pakistan. The number of listed banks is alsoincreasing. While the income from core banking activity has increasing due to higherbusiness volume, earnings are also expected to improve due to ventures into consumerfinance, housing finance and enhanced lending to the agriculture sector.

In just four years the banking industry has expanded tremendously and now there aremore than two dozen commercial and investment banks operating in the country.Commercial banks in the private sector had performed well since their inception,registering overall growth in the deposit base and profits. The banks also managed to

maintain a healthy credit portfolio.

Foreign banks have a strong presence in all major cities and are targeting high networth individuals and blue chip companies. Their strategy is quite successful as theyaccount for about 34 percent of total sector profits, despite having only 15 percent ofdeposits and 16 percent of advances.

During the first six months of the ongoing fiscal year, total assets of all the scheduledbanks increased by Rs 239 billion. Total assets grew by 8.5 percent from Rs 2,800billion in June 2004 to Rs 3,039 billion in Dec 2004. During the first six months of 2004-

05, there was also an increase of Rs 277 billion in the net advances of the scheduledbanks. Net advances grew by 19.3 percent from Rs 1,437 billion in June 2004 to Rs1,714 billion in Dec 2004.

2. MCBs Performance Overview

The first half of 2005 was very promising for MCB, as the bank has achieved pre taxprofits of Rs. 4.2 billion, compared with Rs. 2.2 billion for the same period in 2004. Profitafter tax has more than doubled compared to the corresponding period for 2004 andexceeds Rs. 3 billion highest ever profit in the history of MCB. This translates into

earning per shares of Rs. 7.43.

Advance and deposit increased to Rs. 156 billion and Rs. 241 billion reflecting a growthof 14% and 10% respectively. Additionally the banks assets expanded by 16% duringthe half year ended 2005 and crossed Rs. 300 billion marks.

Banks equity (capital and reserves) increased by 41% during the half year, which wasdue to the issue of right shares and retained earnings. Increase in equity would improve


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the lending limit and would provide the opportunity for significant growth of the banksbalance sheet. This would also help to meet the capital requirement under Basel AccordII, which will be effective from 2007.

Based on continuing growth and consistently outstanding performance, MCB has once

again received the Euromoney Award 2005 for the Best Bank in Pakistan. MCBhas become the only bank to receive the Euromoney Award for Excellence for the fifthtime in last six years. In addition, Asia Moneyhas also declared MCB as The BestDomestic Commercial Bank in Pakistan for the year 2005.

3.

Products and Services

3.1. Personal Banking

Deposit Accounts

Khushali Bachat Account

Khushali Bachat Account, a Rupee savings account is one of MCB Banks mostpopular products. Due to the low initial deposit, the account can be opened bypeople from all walks of life and still avail the facility of daily product profitcalculation.

Mahana Khushali Bachat

MCB Monthly Khushali Scheme provides you with a steady income every month.Just purchase a Monthly Khushali Certificate and you will enjoy a steady incomeof your total deposit every month.

Pak Rupee Savings Account

MCBs Pak Rupee Savings Account offers you attractive returns on your PakRupee investment.

In addition, you have access to a countrywide ATM network convenient cash

accessibility 24 hours a day. The facility also provides you with unlimited dailytransactions with a limit on maximum withdrawal amount through the ATMmachines.

Pak Rupee Current Account

MCBs Pak Rupee Current Account offers you the convenience of unlimitedwithdrawals i.e. access to your funds whenever you want without any notice.


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There is no limit on the number of transactions you make in a day plus you canavail finance facility up to 75% of the total deposit.

In addition, you have access to a countrywide ATM network convenient cashaccessibility 24 hours a day. The facility also provides you with unlimited daily

transactions with a limit on maximum withdrawal amount through the ATMmachines.

Pak Rupee Term Deposit

MCB Pak Rupee Term Deposit gives a higher rate of return. It gives you choiceof 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5 yearterm deposits.

Saving 365

The MCB Saving 365 calculates profits on a daily product basis and gives youthe facility of unlimited withdrawals.

Foreign Currency Savings Account

MCBs Foreign Currency Savings Account offers you attractive returns on yourForeign Currency investment.

You can invest in any of the four currencies i.e. US Dollar, UKPound Sterling, Japanese Yen or Euro

Your foreign currency account is exempted from Zakat andwithholding tax

Foreign Currency Current Account

MCBs Foreign Currency Current Account offers you the convenience ofunlimited withdrawals i.e. access to your funds whenever you want without anynotice. There is no limit on the number of transactions you make in a day.

MCB Foreign Currency Term Deposit

MCB Foreign Currency Term Deposit gives a higher rate of return. It gives thechoice of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years and 5year term deposits.

Dollar Khushali Account


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The Dollar Khushali Account, a Dollar based account was introduced in 1993 atselected MCB Bank branches. Today, you can open a Dollar Khushali Account atover 200 branches in Pakistan.

Loan Products

MCB Business Sarmaya

MCB Business Sarmaya is the best Running Finance facility against yourresidential property which empowers you to manage your business dealingsbetter. So act today and get MCB Business Sarmaya and thus improve yourbusiness, avail lucrative opportunities and expand your business, with absolutesatisfaction of cash flows.

MCB Car4u

Life is like a chess board. You plan your career options. You analyze yourbusiness moves. But when you really want to improve your life, you make apower move.MCB CAR4U Auto Finance is the power move that assists you inmore ways than you ever imagined. It is affordable, with lowest mark up, flexibleconditions, easy processing and above all, no hidden costs.

MCB Pyara Ghar

Some destinations require a long wait. Like waiting for a home of your own. Butwith MCB Pyara Ghar it is now easy to step into your home and start living a reallife.

MCB Pyara Ghar is an ideal Home Finance from your own bank that lets youPurchase, Renovate or Construct your home the way you have always wanted.Having your own home was never so easy

Easy Personal Loan

MCB Easy Personal Loan provides you with the financial advantage to do thingsyou've always wanted to but never had the sufficient funds for. Take that much-needed holiday. Buy a car. Refurnish your house. Purchase a new TV. Finance abetter education for your children.

MCB Master Card

Since the beginning of time, people have tried to find more convenient ways to pay,from gold to paper money and cheques. Today, money is moving away from distincthard currencies and towards universal payment products that transcend nationalborders, time zones, and, with the Internet, even physical space. Plastic or "virtual"


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money, credit, debit, and electronic cash products, inevitably will replace cash andcheques as the money of the future.

MCB Rupee Traveler's Cheques

MCB Rupee Traveler's Cheques were first introduced in 1993 as safe cash for travelingand travel related purposes. The product has been extremely popular and is preferredover cash by customers while traveling and in all walks of life.

MCB Rupee Traveler's Cheques- The safest way to Carry Cash

3.2.

Corporate Banking

Cash Management Services

MCBs network of over 900 branches in Pakistan enables it to collect and disbursepayments efficiently with its cash management services. This also enables it to offer youa choice of paper based or electronic fund transfer solutions including collectionamounts, cross branch online transactions etc.

Working Capital Loans

Based on the customers specific needs, the Corporate Bank offers a number ofdifferent working capital financing facilities including Running Finance, Cash Finance,

Export Refinance, Pre-shipment and Post- shipment etc. Tailor- made solutions aredeveloped keeping in view the unique requirements of your business.

Term Loans

MCB offers Short to Medium Term Finance to meet capital expenditure and short termworking capital requirements of our customers. The loans are structured on the basis ofunderlying project characteristics and cash flows of the business.

Trade Finance Services

Under Corporate Banking MCB offers trade finance services that include an entirerange of import and export activities including issuing Letters of Credit (L/Cs),purchasing export documents, providing guarantees and other support services.

3.3.

Online Services


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MCB ATM Services

With a solid foundation of over 50 years in Pakistan, with more than 750 automatedbranches, 269 online branches, over 222 MCB ATMs in 41 cities nationwide and anetwork of over 12 banks on the MNET ATM switch, MCB is positioned at the forefront

of the banking industry in Pakistan. This success has been possible because of anever-ending drive to achieve higher levels of excellence, constantly striving to raise thelevel of performance.

MCB Mobile Banking

At the forefront of technological excellence, MCB proudly introduces MCB MOBILEBANKING. The convenience of accessing your account balance information and ministatements whenever you want or wherever you may need them, with comfort andpeace of mind.

MCB Call Center

Keeping up with banking services can be tedious but not with MCB Bank, where phoneservice is at your fingertips. Just dial our Call Centre from the comfort of your home oroffice or wherever you happen to be. It offers basic banking services for yourconvenience, eliminating the need for you to make unwanted trips to your branch.

MCB Smart Card

MCB now brings you MCB SmartCard -a secure and convenient instrument of paymentwith unmatched functionalities. It provides 24-hour direct access to your bank account.

The convenience and flexibility of MCB SmartCard will help you live a smarter life. It notonly helps you manage your expenses, but also eliminates undue interest on your dayto day credit card transactions. Your balance is always within your reach and you spendaccordingly.

MCB Debit Card

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

3.4.

Virtual Banking

MCB Virtual Internet Banking offers you the convenience to manage and control yourbanking and financeswhen you want to, where you want to. MCBs Virtual InternetBanking facility is simple and secure. And its free of cost. With MCB Virtual Internet


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Banking you can access any of the banking services, 24 hours a day, 7 days a weekand throughout the year.

MCB Virtual Internet Banking offers a wide range of online services which makes yourbanking accessible anytime and from anywhere.

Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recenttransaction history for that account(s).

Statement-by-Period of each of the listed accounts, based on theperiod specified.

Immediate or Scheduled Transfer of Funds between your ownaccounts, 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.

Immediate or Scheduled Bills Payment. Scheduling of One-Time aswell as Recurring bill payments. Option for Full or Partial paymentbased on the payment conditions specified by a particular UtilityCompany.

Bulk Salary Transfer for Corporate Customers, to facilitate them inpaying salary to the corporate employees, who maintain accounts with

MCB.

Bulk Funds Transfer for Corporate Customers.

Cheque Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to theprocessing of specified payments and transfers.

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

3.5. Islamic Banking

Deposit Schemes

For customers who are looking for a deposit opportunity where they can pursetheir funds and reap halal returns on it, we offer the following products:


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Al-Makhraj Saving Account

Al-Makhraj Ianat Account

Al-Makhraj Term Deposit

Fund Based Facilities

Ijarah Products

MCBs Islamic Ijarah, analogous to the English term 'leasing, is based on theIjarah wa Iqtina concept which means the sale of the asset to the lessee afterthe Ijarah has matured. Under this scheme, MCB will be the owner of the asset,and the customer (lessee) will be given the asset to use for a certain period oftime in return for monthly rental payments. MCB will give a separate unilateralundertaking that it will offer to sell the asset to the customer (lessee) at the

maturity of the Ijarah agreement at a price that may be equal to the securitydeposit amount, hence the term Wa Iqtina.

Types of Ijarah

o Car Ijarah

o Equipment Ijarah

4. MCBs Competitive Strategies

To be competitive the Bank has further reinforced its position in the Consumer Bankingarena by streamlining and re-launching the consumer financing products andintroducing more convenience based solutions. With the re-launch of auto finance andhouse finance products, the Bank pushed the products with full thrust. The Bank hasalso launched a running finance facility against mortgage of property.

Technology continued to play an important role in improving and expanding productofferings. The Bank introduced more IT based products to cater to the changinglifestyles and needs of the customers. MCB Virtual-Internet Banking was launched withwide ranging banking solutions for the customers ranging from individual to corporate

customers and it has become the most preferred Internet banking solution in thecountry.

MCB also had the privilege of being the first Bank in Pakistan to launch thecomprehensive bill payment facility through its alternate delivery channels which includeInternet Banking, ATMs and MCB Call Centre, currently with six payment partners.Similarly, the Bank also took initiatives to increase the usage of debit facility. To provide


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timely and updated information, MCB has also provided a new look to its website whichis user friendly and considerably easy to browse.

The Islamic Banking initiative has been very successful in attracting new customer, bothindividuals and companies. Similarly, those relationships, which were confined only to

current account facility, have grown into stronger business relationships. The branchnetwork was expanded to Lahore and Multan during the last year and recently beenextended to Hyderabad and Faisalabad. The Bank plans to further expand its IslamicBanking branch network to other metropolitan areas and also to introduce new shariacompliant banking solutions to a wider range of customers for satisfying their individualand business needs.

Some wide-ranging new strategic initiatives were also taken upwhich will be importantfor the Bank in years to come. A private company has been formed in Hong Kong (fullyowned subsidiary of MCB) in partnership with Standard Chartered Bank, handling tradetransactions of select countries in the Asia-Pacific region. It is projected to earn US$ 1

million in its first year of operations. To increase its international presence, the Bank willbe opening its representative office in Dubai and entering into major strategic allianceswith banks in the UAE/ especially for marketing our consumer banking products to non-resident Pakistanis. Furthermore, feasibility is also being carried out for entering otherinternational markets.

MCB's operations continued to be streamlined with focus on rationalization of expenses,re-alignment of back-end processing to increase productivity, enhancement of customerservice standards, process efficiency and controls. The Bank has taken the lead inintroducing the innovative concept of centralizing Trade Services in the country byproviding centralized foreign trade services to branches with a view to improve

efficiency, expertise and reduce delivery cost.

Management of Human Resources has been one of our core focus areas. MCB iscommitted towards attracting, retaining and motivating outstanding people. Challengefor MCB is to provide an environment in which employees can better realize theirpotential. The Bank introduced 'reward for performance' where high potential officerswere identified and rewarded accordingly. In view of the competitive environment, theBank is focusing on performance and introducing a more robust performancemanagement system. MCB is also strongly committed to training its staff at all levels.

The Bank will also be implementing the full suite of the latest version of SYMBOLSVersion 8. MCB Bank will run SYMBOLS eFinance modules to deliver personalizedservices to its customers over multiple delivery channels, while SYMBOLS EnterpriseOperations Center will serve as its core banking transaction-processing engine. Byimplementing SYMBOLS, MCB Bank aims to raise the level of its customer service andits time to market in new product offerings for its three core banking businesses inCorporate, Commercial and Consumer Banking - retaining its market leadership asPakistan's progressive Bank.


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Learning As A Student

1.

Duties & Accomplishments

During my internship in MCB I worked in Remittances, Advances, Foreign Exchangeand Customer Service Office department and I successfully completed all thetask/duties that were assigned to me.

The duties that I performed and the thing I learned each day are given as follows:

July 15, 2005

Learned basic operations of remittance department

Learned how to make entries and vouchers for IncomingTT(Telegraphic Transfer)

Made vouchers and entries for Incoming TT

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

July 16, 2005

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

Learned how to make entries and vouchers for OutgoingTT(Telegraphic Transfer)

Made few Outgoing TT

Learned & Made Inter-Branch Credit Advicesagainst thechecks received from outer city branches

July 18, 2005

Learned about the payment against PO & DD receivedfrom other branches (usually the first activity in theremittance dept.)

Learned how to issue a PO


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Made entries against the TT and MT in the Day Book

Made Incoming and Outgoing TT

Made Inter-Branch Credit Advicesagainst the checks

July 19, 2005

Made Debit vouchers against the TT, PO & DD charges

Made Credit vouchers (contra) against the TT, PO & DDcharges



Made entries in the Day Book

July 20, 2005

Learned Incoming & Outgoing TT Entries in the DailyVoucher Record Sheet

Learned how to make DD and PO


Made Credit vouchers (contra) against the TT, PO & DDcharges


July 21, 2005

Learned basics of Remittance Software System

Made DD and PO entries in the Daily Voucher Record

Sheet

Made Inter-Branch Credit Advicesentries in the DailyVoucher Record Sheet




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July 22, 2005

Learned about different Stamps on the PO

Learned and made entries and vouchers againstIncoming MT




July 25, 2005

Learned and recorded the entries against Incoming MT




Issued Credit Advices against DD

July 26, 2005

Learned PO and DD issuance in detail

Made the entries against Intercity Received Checks



July 27, 2005

Got more information about Remittance SoftwareSystem

Learned how to make cancellation entries in theRemittance Software System in case of any discrepancy



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July 28, 2005

Learned how to cancel a DD


Made vouchers for incoming MT


Issued Credit Advices against DD

July 29, 2005

Learned how to make entries against the incoming TTfor which the beneficiarys account in some other bank




July 30, 2005

Was moved to Credits, got basic information aboutdifferent operations of Credits department

Learned about Running Finance against the SavingCertificates also called Instant Finance

Studied few pages of Credit Manual

Studied a Instant Finance Case

Learned about the entries against Monthly Installmentfor Car Financing

Made Daily Voucher Sheet

August 1, 2005


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Learned basic types of financing

Read Running Finance in detail from manual

Studied a Running Finance Case

Made Vouchers


August 2, 2005

Learned about the different documents required forCredit Investigation

Learned about the documents required for Running

Finance

Learned the Concepts of Demand and Cash Finance

Made Vouchers


August 3, 2005

Studied Export Refinancing from Manual

Made voucher for partial Adjustment of CF (CashFinance)

Filled Credit Proposal cum Sanction Advice MCBInstant Financing, BBFS (Borrower Basic Fact Sheet) andApplication for Finance for renewal of 3 cases of CF.

Made Lease Statement


August 4, 2005

Studied Documentation/Collateral Guidelines

Made Disbursement Status-Leasing Statement

Made CF Vouchers


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Made Voucher Sheet

Made entries for monthly mark up against RF (RunningFinance)

August 5, 2005

Studied other types of Export Financing e.g. FAFB(Finance Against Foreign Bills), FBP (Foreign BillsPurchased)

Studied Sanction Advice & Approval for Financing

Made Voucher and Voucher Sheet

Studied a Credit Report

August 8, 2005

Learned General Documentation for financing

Learned about FIM(Finance against ImportedMerchandise)


August 9, 2005

Learned documentation requirement for each type offinancing

Made Vouchers


August 10, 2005

Made monthly entry in the Mark-up Recovery Register

Made Letter to Auditor

Made Vouchers


August 11, 2005


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Learned about L/C documents

Learned basics of Foreign Exchange operations

Made Voucher Sheet

August 12, 2005

Learned about different L/C related terms and definitions

Learned about Payment against Foreign CurrencyChecks

Learned about Foreign Inward Telegraphic Transfer

Made Voucher Sheet

August 13, 2005

Made vouchers for Foreign Currency Cash withdrawal

Made vouchers for FITT(Foreign Inward TelegraphicTransfer)

Made Voucher Sheet

August 15, 2005

Learned about bank charges against L/C

Learned diff. types of SWIFT messages

Made Vouchers


August 16, 2005

Worked as CSO(Customer Service Officer) becauseCSO was on leave and performed the following activities:

o Attended phone calls

o Attended customer inquiries

o Received ATM forms


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o Received and entered daily DAK

o Issued ATM cards

o Issued balance Certificates and Bank

Statements

o Made charges vouchers for TT/DD/PO

August 17, 2005

Studied few chapters of Foreign Exchange Manual

Learned about diff. types of L/Cs

Learned about diff. parties involved in L/C

Learned about Payment modes for L/C

Made Vouchers


August 19, 2005

Worked on the seat of A/C Opening/CheckCollection/Lockers because the Madam on this seat was

on leave, so learned and performed the following activities:

o Opened three accounts

o Issued check books

o Received Check Book Issuance Requisition

August 20, 2005

Opened new accounts

Issued check books

Received Check Book Issuance Requisition

Made CCs(Check Collection)

Made Vouchers


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August 22, 2005

Opened new accounts

Issued check books


Made CCs

Made Vouchers

August 23, 2005

Worked as CSO(Customer Service Officer)

August 24, 2005

Opened new accounts

Issued check books


Made CCs

August 25, 2005

Opened new accounts

Issued check books


Made Vouchers

August 26, 2005

Sorted Foreign Currency Signature Verification Cards

Opened new accounts

Issued check books



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Made Electricity Bills Vouchers

August 27, 2005

Opened new accounts

Issued check books



Made SUI GAS Bills Vouchers

Made Telephone Bills Vouchers

Made Electricity Bills Vouchers

Recommendations:

The bank must take necessary steps to ease their customers like the betterenvironment according to their wants and needs. Customer problems should also beundertaken like the too much time taking for the payment of the cheque.

The following activities have been done during the time period of internship. The activities givenbelow are on the weekly basis. Mainlyduring the internship I worked in all the departments and

learned theworking and procedures that are necessary for the processes.

First week: (06 July 2009 to 11 July 2009)

Observed basic business process

Observed movement of customers and Employees inside theBranch

Learned basics of Account Opening

Opened Accounts of GOVT employed persons

Opened PLS saving Accounts


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Opened BBA accounts

Opened Student account

Worked as CSO(Customer Service Officer) because CSO was onleave and performed the

following activities:o

Attended phone calls

oAttended customer inquiries

o

Received ATM formso

Received and entered daily DAK

o

Filled cheaque book requisition slipsIn first week I observed the basic business process. At the

end of eachday I totaled the electricity, water, telephone and check amounts.Mostly the total wascorrect. But sometimes when the total does notmatch with the sheet of the PRINTING I had to

do it two or even three times.

Executive Summary:

MCB is one of the leading banks of Pakistan with a deposit base of Rs. 368 Billion and total

assets over Rs.500 Billion. Incorporated in 1947, MCB soon earned the reputation of a solid and

conservative financial institution managed by expatriate executives. In 1974, MCB was

nationalized along with all other private sector banks.

MCB bank is doing the day and night struggle to achieve its purposes. It tries to control itsexpenses and increase its efficiency and effectiveness. It is introducing the innovative concept of

centralized foreign trade services to branches with a view to improve efficiency, expertise and

reduce delivery cost.

During my internship at MCB, I worked in remittance, advances, cash, deposits, customer

service office department and I successfully completed all the tasks/duties that were assigned to

me. I also performed different functions in all departments as a whole

Conclusions:The MCB bank made substation progress, recording strong growth in revenues and earnings. The main

motive is strengthened human resources. Including changes at the senior management level, enhanced

product portfolios, improved control and attentive credit risk management. The main focus is the MCB

customers to provide them with satisfaction and serving with loyalty.


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Banks provide security and convenience for managing your money and sometimes allowyou to make money by earning interest. Convenience and fees are two of the mostimportant things to consider when choosing a bank.

Writing and depositing checks are perhaps the most fundamental ways to move money in

and out of a checking account, but advancements in technology have added ATM and

debit card transactions and ACH transfers to the mix. All banks have rules about how long it takes to access your deposits, how many debit

card transactions you're allowed in a day, and how much cash you can withdraw from an

ATM. Access to the balance in your checking account can also be limited by businessesthat place holds on your funds.

Debit cards provide easy access to the cash in your account, but can cause you to rack up

fees if you're not careful.

While debit cards encourage more responsible spending than credit cards, they do not

offer the same protection or perks to consumers.

Regularly balancing your checkbook or developing another method to stay on top of your

account balance is essential to successfully managing your checking account and

avoiding fees and bounced checks. If you have more money than you need to manage your day-to-day expenses, banks offer

a variety of options for saving, including money market accounts, CDs, high-interestonline savings accounts and basic savings accounts.

To protect your money from electronic theft, identity theft, and other forms of fraud, it's

important to implement basic precautions such as shredding account statements, havingcomplex passwords and only doing online banking through secure internet connections.

This expected to help the MCB bank in providing customer centric solution in a more group generated

healthy deposit and strengthened its SME lending.

1. Training can be provided with job rotations so each of the employees is capable of doing others work

in case of emergency, this will ensure no delays are met.

2. As MCB earning a lot of profit stock options should be given to every employee.

3. Workers need more computer training.

4. MCB needs to invest more in technology and bring all banking procedures up-to-date.

5. They should implement advance technology and make it one window shopping or one window service

where each teller is capable of handling every transaction for example payments, deposits, transfers, bill

payments, foreign exchange, ATM card issue and opening of new account. This will make MCB more

proficient in customer service.

6. ATM network needs to be updated more to handle transfers, deposits, bill payments and print

statements. This will free up a lot staff time.


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Refrencces & Annexures

1. News Letters

2. Magazines of MCB

3. Annual Report of MCB 2008

4. Website: www.mcb.com.pk

5. Review of President of MCB 2004 Page No: 08 to 12

6. Personal interview with Nazeer Ahmed Shaikh (Branch Manager)

7. Personal interview with Aamir Ali Mangi (Operation Manager)

Threats

Following are the threats for MCB,

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 entrants of so many banks, So to

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

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

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

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

low investment from the investors in new projects can create problem for the

bank because it is working a lot in trade.

Recommendations:

MCB is performing well. Its deposits are growing day by day and so its profitability;

following are my observation and suggestion to improve the efficiency for the

development of the bank

Most of the bank employees, are sticking to one seat only with the result that they

become master of one particular job and lose their grip on other banking operation.


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In my opinion all the employees should have regular job experience all out-look

towards banking. The promotion policy should be adjusted.

Every year some of the employees should be sent for training to other countries and

employees from other branches should be brought here. Some more reading

material should be provided. The purpose should be to educate the employees with

the advance studies in their field. The employee should be provided the

opportunities to attend and participate in seminars and lectures on banking.

System should be designed that every employee who has some problems with his

officers can communicate it to the higher management and some steps must be

taken to improve that.

Recruitments should be strictly on merit basis and induction should be after proper

and extensive training.

THREATS for MCB

FOLLWING ARE THE MAIN THREATS:

Increasing number of foreign banks in country

Privatization of domestic banks has increased the competit ion.

Specialized services provided by the other banks.

Inconsistency in Government policies in business and economic sector.

Growing technology has made it essential to keep the pace with i t . MCB though

is quite slow in keeping up the pace as compared to the forei gn Banks.

Growing usage of internet and mobile banking, and MCB is st i l l not up to the

mark.

Strict regulations of government over credit facil i ty.

RECOMMENDATIONS


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From the previous analysis i t can be observed that MCB is performing wel l . I ts

deposits are growing day by day and so its profitabi l i ty.

1) STAFF STRENGTH

First thing I observed is the staff strength which is very low as compared to load of

work. More employees should be hired to decrease the load of wor k and to give some

rel ief to old workers. Staff strength varies in different areas. Areas which are less

l ikely to be vis ited by any Board of Director have not enough staff to meet the

requirement of the customers to the specif ic area.

2) AVOID WORKING EXTRA HOURS

Working hours per day during office t iming are from 9 Oclock to 5 Oclock, but I

observed that bank staff has to work t i l l 7 Oclock or 8 Oclock. According to my point

of view there are two solutions for this problem. Either new staff should be hired to

reduce the work load or employees should be given benefits for the extra hours they

work. Or they can also distribute work in to two shifts.

3) TRAINING OF STAFF

Training of staff should be according to modern technique on regular basis to equip

them with the new and advance technology. Recently MCB have switched its older

system to MIBS without giving proper training f irst. I suggest al l employees should

get trained f irst. As a result, branches faced Chaos and customers were quite

irritated.

4) REVISION OF PAY STRUCTURE

Pension at MCB has been abol ished and employees feel insecure and uncertainty is

prevai l ing in the atmosphere, especial ly for those employees who have been in MCB

for long. Pension system should be revived.

5) NON ROTATION OF STAFF


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Most of the bank employees, are sticking to one seat only with the result that they

become master of one particular job and loose their grip on other banking operation.

In my opinion al l the employees should have regular job experience al l out-look

towards banking. The promotion pol icy should be adjusted.

6) EASY COMMUNICATION TO HIGHER MANAGEMENT

As such system should be designed that every employee who has some problems with

his off icers can communicate it to the higher management and some steps must be

taken to improve that. A regular HR staff meeting with banking staff individual ly wi l l

help staff to communicate their grievances to the HR, and it wi l l boost the employees

moral and bank reputation.

7) INCREASE IN FOREIGN BRANCHES

More foreign branches should be opened in order to capture the international

market. MCB is stuck with local c l ientele; i t should also give importance to the

international market, as many multinational are operating in Pakistan.

8) UPGRADING CUSTOMER SERVICES

Proper attention should be given to upgrade customer services.

9) ADOPTION OF GLOBAL BANKING STRUCTURE

Bank should adopt the global organizational banking structure to meet the

international standards of banking sector.

10) ATTENTION TO SOCIAL ISSUES

Bank need to organize seminars on social issues and informal social activit ies to

create an image of social ly responsible institution.

11) FOREIGN TRAINING OF EMPLOYEES


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Employees should be sent abroad for training in advance technology and acquiring

more knowledge to meet international standards of Banking.

12) REFRESHER COURSES

Refresher courses for the staff are most important in any international organization.

All the employees should have these courses according to their requirement on

regularly basis in order to know the future trend & development. Foreign experts can

also be called for this purpose.

13) PROPER GUIDENCE

Bank should adopt such an Induction plan that when a customer opens his account

with the bank, he should be supplied with a booklet , which enables him to know the

procedure of fi l l ing the cheque, pay-in-slip etc. It will save a lot of t ime of the bank

staff afterward during the conduct of the account of that customer. A further step can

also be taken to educate the people & customers by arranging seminars on specific

areas, which are helpful in promoting healthy banking habits

sample of internship

Documents