1. Trang chủ
  2. » Tài Chính - Ngân Hàng

MCB internship report

151 2,8K 0

Đang tải... (xem toàn văn)

Tài liệu hạn chế xem trước, để xem đầy đủ mời bạn chọn Tải xuống

THÔNG TIN TÀI LIỆU

Thông tin cơ bản

Định dạng
Số trang 151
Dung lượng 1,39 MB

Nội dung

MCB internship report

Trang 1

The goldsmiths used to issue receipts for the money deposited with them These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths When it was found that these receipts were fully accepted in payment of debts; then the receipts were drawn in such a way that it entitled any holder to claim the specified amount of money from goldsmiths A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor These receipts were the earlier bank notes The second stage in the development of banking thus was the issue of bank notes.

Trang 2

The goldsmiths soon discovered that all the people who had deposited money with them do not come to withdraw their funds

in cash They found that only a few persons presented the receipts for encashment during a given period of time They also found that most of the money deposited with them was lying idle

At the same time; they found that they were being constantly requested for loan on good security They thought it profitable to lend at least some of the money deposited with them to the needy persons This proved quite a profitable business for the_ goldsmiths They instead of charging safe keeping charges from the depositors began to give them interest on the money deposited with them This was the third stage in the development

of banking

Trang 3

DEFINITION OF BANK

The term 'bank' is being used for a long time, yet it has no precise definition The basic reason is that the commercial banks perform not just one but many types of functions The term bank has been defined differently by different authors Some are as follows:

According To Bamkinh Companies Ordinance

U/s3 (B) of Banking Companies Ordinance 1962 "Banker means person transacting the business of accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise and includes any Post Office Savings Bank."

Trang 4

HISTORY OF BANKING IN PAKISTAN

The interesting point which I observed during the span of mine internship was the historical background of Banking & Financial sector which is the one in which great improvement and growth is observed since the formation of Pakistan For studying the growth of this sector we can divide it into three stages, which are as follows

a) Pre-Nationalization Era

b) Nationalization Era

c) Post Nationalization Era

A) Pre Nationalization Era

There were only two Muslim banks in Indo Pak before partition, they were;

Habib Bank Ltd (estd in 1941 at Bombay) & Australia Bank Ltd (estd In 1944 at Lahore) Hindus or Foreigners either owned all other banks, at that time

At the time of partition there were 631 bank branches in area, which came under Pakistani control But due to blood shed and violence at large scale, mostly branches were closed and the disparity can be assessed from the fact that on July 1948 there

Trang 5

were 195 branches with deposits of Rs.88 crore (880 million) only Also a factor lagging in Pakistani industry was a central bank of

its own, by that time Reserve Bank of India was acting as central bank for both countries and same currency notes were used in both territories But Reserve Bank of India was biased and Set down Pakistan on many occasions such as the issue of funds transfer etc

In this period drastic steps were taken in government sector for the improvement of overall position The private sector also responded to these changes and some very positive changes were observed Some of the steps taken by the government in this regard were as under:

i Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948

ii Setting up of National Bank of Pakistan in November, 1949

to control the 'jute' export in East Pakistan and to act as agent of SBP

iii Larger powers were given to SBP through SBP Act (1956) for controlling purposes

iv Banking Companies Ordinance 1962 for protection and guidance to banks

v Establishment of specialized banks, such as ADBP (1952);

a) HBFC (Nov, 1952);

b) P1CIC (Oct, 1957)

c) IDBP (Aug 1961);

d) NDFC (Jan, 1973)

Trang 6

These were the steps, which built a strong banking sector in Pakistan This is also obvious from the facts that by 1973 there were almost 10 foreign banks were working in Pakistan and all over deposit position was around Rs.2300 crore (23,000 million)

A bird eye view of 5 top banks was as given below:

BANKING SECTOR IN PAKISTAN IN 1973

Habib Bank Ltd 667 Rs 6,160 (million)National bank of

Pakistan Ltd

579 Rs 5,660 (million)

United Bank Ltd 497 Rs 5,670 (million)MCB Bank Ltd 506 Rs 1,640 (million)Allied Bank Ltd 145 Rs 570 (million)

Trang 7

B) Nationalization Era:

On January 01, 1974 all Pakistani banks were nationalized through Nationalization Act 1974 Under this law all Pakistani banks became a public property All small banks were merged in bigger banks to create 5 major Pakistani banks Pakistani banks These banks were to control by Pakistan Banking Council There are still controversies about this act of government as whether it contributed in success of failure of banks However the major changes after nationalization were as follows:

 Working of banks was extended to under developed areas

 Market expansion for credit and deposits

 Bank were encouraged to extend cooperation to neglected areas

 Decrease in service level of bank officers

 Decrease in profitability as well

Trang 8

C) POST NATIONALIZATION ERA

In 1990 the government decided to denationalize all the nationalized institutes Some was also suggested in banking sector For this purpose, amendments were made to Nationalization Act 1974 and two nationalized banks were privatized Along with this a permission to open banks in private sector was also granted The rules regarding establishment of new banks and for incoming foreign banks were also relaxed

The-three privatized banks are;

a) MCB taken up by a private group in April, 1991

b) ABL taken up by its own employees in September 1991.c) UBL taken up by UAE party in 2002

After these changes a large number of private and foreign banks started their operations in Pakistan and the present status can

be seen from the following figures:

SCHEDULED BANKS

Nationalized Commercial Banks 3

Private / Privatized Commerce Banks 18

Public Sector Specialized Banks 4

Total Schedule Banks 44

Trang 9

In addition to above mentioned scheduled banks there are 11 Development Financial Institutes (DFI’s), 16 Investment Banks and 21 leasing and Modarbah Companies.

PAKISTAN BANKING SECTOR

• Nationalized Commercial Banks

• Privatized Banks

• Specialized banks

• Private banks

• Foreign banks

• Other financial Institutions

N ATIONALIZED S CHEDULE B ANKS

• First Women Bank Ltd

• National Bank of Pakistan

Habib Bank Ltd.

D E -N ATIONALIZED S CHEDULE B ANKS

• Allied Bank of Pakistan Limited

• MCB Bank Limited

• United Bank Ltd

Trang 10

S PECIALIZED B ANKS

• Zarai Taraqiti Bank of Pakistan (ADBP)

• Industrial Development Bank of Pakistan(IDBP)

• Punjab Provincial Cooperative Bank

• Federal bank for Cooperatives

P RIVATE S CHEDULE B ANKS

• Askari Commercial Bank Ltd

• The Bank of Khyber

• The Bank of Punjab

• Union Bank Ltd

Trang 11

F OREIGN B ANKS

• ABN AMRO Bank N.V

• Albaraka Islamic Bank BSC (EC)

• American Express Bank Ltd

• ANZ Grindlays Bank Ltd

• Bank of America (NT & SA)

• Bank of Tokyo Mitsubishi Ltd

• Bank of Ceylon

• Banque Indosuez

• Citibank N.A

• Credit Agricole A.G

• Deutche Bank A.G

• Doha Bank Ltd

• Emirates bank International Ltd P.J.S.C

• Habib Bank A.G Zurich

• Hong Kong and Shangai Banking Crop Ltd

• International Finance Investment and Commerce Bank Ltd

• Mashreq Bank PSC

• Oman International Bank SOAG

• Rupali Bank Ltd

• Societe Generale, the French Int Bank Ltd

• Standard Chartered Bank

• Trust Bank Ltd

Trang 12

D EVELOPMENT F INANCIAL I NSTITUTIONS (DFI S )

• Investment Corp of Pakistan

• National Development Finance Corp

• Pakistan Industrial Credit and Investment Corp

• Pak Kuwait Investment Company

• Pak Libya Holding Company

• Regional Development Finance Corp

• Saudi Pak Industrial & Agricultural Investment Corporation

• Small Business Finance Corporation

• House Building Finance Corporation

• National Investment Trust

I NVESTMENT B ANKS

• Crescent Investment Bank

• First International Investment Bank

• Atlas BOT Investment Bank

• Security Investment Bank

• Fidelity Investment Bank

• Prudential Investment bank

• Islamic Investment Bank

• Asset Investment Bank

• Al-Towfeek Investment Bank

• Al-Faysal Investment Bank

Trang 13

• City Corporation Investment Bank (Pak) Ltd

• Franklin Investment Bank Ltd

• Orix Investment Bank (Pak) Ltd

• Trust Investment Bank Ltd

HISTORY OF THE MCB BANK LIMITED

Before separation of Indo Pak, the need for more Muslim banks was felt And Muslims having strong financial capacity were thinking to invest in this sector as well This was the idea which paved the way for setting up MCB Bank Ltd known as MCB This was the third Muslim bank in the subcontinent

HISTORY

This bank was incorporated under companies’ act 1913 on 9th July,

1947 (just before partition) at Calcutta But due to changing scenario of the region, the certificate of incorporation was issued on 17th August, 1948 with a delay of almost 1 year; the certificate was issued at Chitagong The first Head office of the company was established at Dacca and Mr G.M Adamjee was appointed its first chairman It was incorporated with an authorized capital of Rs 15 million

After some time the registered office of the company was shifted to Karachi on August 23rd, 1956 through a special resolution, now recently the Head office of MCB has been transferred to Islamabad in July, 1999 and now Head office is termed as Principle Office

Trang 14

This institute was nationalized with other on January 1st, 1974

At that time it had 506 branches and deposits amounting to Rs 1,640 million Although MCB has a reputation of a conservative bank but nationalization also left its effects on this institute as

well and by end of year 1991 in which it was privatized the total number of branches were 1.287 and deposits amounting to as high

as Rs 35,029 million

PRIVATIZATION

When privatization policy was announced in 1990, MCB was the first to be privatized upon recommendations of World Bank and IMF The reason for this choice was the better profitability condition of the organization and less risky credit portfolio which made'' it a good choice for investors On April 8th, 1991, the management control was handed over to National Group (the highest bidders) Initially only 26% of shares were sold to private sector at Rs 56 per share

AFTER PRIVATIZATION

Ten years after privatization, MCB is now in a consolidation stage designed to lock in the gains made in recent years and prepare the groundwork for future growth The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer

After privatization, the growth in every department of the bank has been observed Following are some key developments:

Trang 15

• Launching of different deposit schemes to increase saving level

• Increased participation on foreign trade

• Betterment of branches and staff service level

• Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in Pakistan

MCB BANK TODAY

MCB today, represents a bank that has grown with time, experience and Pakistan A major financial institution, in scope and size, it symbolizes a fully growing tree evergreen, strong, and firmly rooted

FOREIGN TRADE

The bank conducted import business during the year amounting to

RS 54.0 billion as compare to RS 56.4 Billion In 2005 The export business slightly improves to RS 36.9 Billion From RS 35.1 Billion In 2006 Home remittances decline to RS 16.7 Billion From 30.7 Billion the decline in home remittances business was due to freezing of Foreign Currency Accounts, which has affected the confidence of Pakistanis working overseas

YEAR 2006 COMPLIANCE

Trang 16

MCB’s strength lies in providing a technological base at the gross root level of the society with a challenge to educate and assimilate such systems across vast cultural and economic backgrounds With over 768 automated branches, 263 online branches, over 151 MCB ATMs in 27 cities nationwide and a network of over 16 banks on the MNET ATM switch, MCB continuously innovates new products and services that harness technology for the customer’s benefits.

SOCIAL SECTOR

The bank activity participating in the Prime Minister employment Scheme The application received from various applicants is being processed on merit and disposed off as quickly

self-as possible.

THE BUSINESS

MCB is in it’s over 50 years of operation It has a network of over 1,000 branches all over the country with business establishments in Sri Lanka and Bahrain The branch break-up province wise is Punjab (57%), Sindh (21%), NWFP (19%) and Blochistan (3%) respectively

MCB has an edge over other local banks, as it was the first privatized bank The State Bank of Pakistan has restricted the number of branches that can be opened by foreign banks, an advantage that MCB capitalizes because of its extensive branch network

Fourteen years after privatization, MCB is now in a consolidation stage designed to lock in the gains made in recent years and

Trang 17

prepare the groundwork for future growth The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer

MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking Corporate clientele includes public sector companies as well as large local and multi national concerns MCB is also catering to the growing middle class by

Providing new asset and liability products The Bank provides 24 hour banking convenience with the largest ATM network in Pakistan covering 27 cities with over 151 ATM locations The Bank’s Rupee Traveller Cheques have been market leaders for the past six years and have recently launched their Gift Cheque Scheme

MCB looks with confidence at year 2007 and beyond, making strides towards fulfillment of its mission, "to become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work"

A major achievement of MCB is that the state bank of Pakistan has issued a license to MCB to start Islamic banking Now MCB is setting up a 1st Islamic banking branch at 1st floor shaheen complex, Karachi This complex starts working from September 1, 2003

Trang 18

Vision Statement

CHALLENGING AND CHANGING THE WAY YOU BANK

Trang 19

Mission Statement

To become the preferred provider

of quality financial services in our country with the profitability and responsibility and to be best place

to work

Trang 20

Our Core Values

EMPLOYEE RESPECT & DIGNITY

We treat each of our employees with fairness, which includes giving constructive feedback for their development We celebrate diversity and seek suggestions from all employees for improvement We ensure that responsibility & fairness in all our decision-making

TEAM BASED APPROACH

Trang 21

QUEST FOR QUALITY

We ensure that each moment of our time is spent on value adding activity We always seek ways for exceeding expectations of customers & colleagues We also ensure that we do things right, first time every time

GOOD CORPORATE CITIZENSHIP

We ensure that we contribute our due share to the Govt we realize that we have a responsibility to the society in which we operate & we seek ways of playing a positive role for the betterment of the community at large

We work towards achievement of our vision & mission as a

combines group We encourage inter &

intra-departmental communications We treat our colleagues as

our internal customers & ensure that the requirements of

internal customer focus are always met

Trang 22

Management Committee

Trang 23

Board of Directors

Mian Mohammad Mansha Chairman

S.M Muneer Vice Chairman

Mohammad Aftab Manzoor President & Chief Executive

Tariq Rafi Director

Trang 24

Sheikh Mukhtar Ahmed Director

Mohammad Arshad Director

Shahzad Saleem Director

Mian Umer Mansha Director

Sarmad Amin Director

Trang 25

Audit Committee

Mian Mohammad Mansha Chairman

Shaikh Mukhtar Ahmed Member

Shahzad Saleem Member

Chief Financial Officer

Trang 26

Chartered accountants mandiwalla & zafar

Advocates & legal consultants

Adamjee house 2nd floor

I.I chudrigar road Karachi

Registrar and Share Registration Office

THK associates (pvt) Ltd

Shares department, ground floor sheikh sultan trust building no

2, Beaumont road Karachi

Trang 27

ORGANIZATIONAL HIERARCHY OF MCB

PRESIDENT

EXECUTIVE VICE PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

OFFICERS GRADE

I II III

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

Trang 28

MANAGEMENT LEVEL

The organization chart within a department and in different offices is as follows:

Divisional Heads ……… ……… Head Office

Regional Head (EVP) ……… ……… Regional OfficeZonal Head (VP) ……… ……… Zonal OfficeBranch Manager ……… ……… Branch

(VP, AVP, GRADE 1, 2, 3)

CASHIER

PEONS

Trang 29

ORGANIZATIONAL SETUP OF MCB

PUNJAB

NWFP & AZAD KASHMIR

SINDH

BALOCHISTAN

KARACHI LAHORE

PESHAWAR

PROVINCIAL HEAD QUARTERS

QUETTA HEAD QUARTER

CIRCLE OFFICES

KARACHI

Trang 30

ORGANIZATIONAL STRUCTURE OF MCB

As MCB is a banking company listed in stock exchange therefore

it follows all the legalities which are imposed by concerned

statutes Mr Muhammad Mansha is chairman & chief executive

of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company

Operational Management of the bank is being handled by a team

of 10 professionals This team is also headed by Mr Muhammad Mansha The different operational departments are Consumer Banking & IT div; Financial & Inter branch div; Banking operations div; HR & Legal div; financial control & Audit div; Credit management div; Commercial Banking div; Corporate Banking div; Treasury management & FX Group and lastly Special Assets Management (SAM) Group

Trang 31

For effective handling of branches, it has been categorized into three segments with different people handling each category These categories are:

Usually branches in large markets and commercial areas come under this category

Consumer Banking

These are the branches which have exposure up to Rs 20 million and these include all the branches which are neither corporate nor commercial branches

Trang 32

Recently the organizational structure was re-designed as follows: Province wise branches

20 branches 637 branches 383 branches

MARKETING MIX OF MCB BANK LIMITED

Marketing is the task of creating, promoting and delivering goods and

services to consumers and businesses Organizations identify and profile distinct group of buyers who might prefer or require varying products and marketing mixes The customer seeks for value and satisfaction The organizations can increase the value of the customer offering in several ways e.g raising benefits, reducing costs etc marketing mix is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market These marketing tools are known as 4 p’s of marketing These four marketing tools are viewed as 4c’s by the consumers.

Price Customer Cost Place Convenience Promotion Communication

Trang 33

To identify the customer needs and fulfilling hem is the basic objective

of an organization Marketing is not just satisfying your customers, you have to delight them and this can be done by acting upon this phrase “Under Promise and Over Deliver”

MCB Bank provides a winning combination of products and services to its prime customers It is one of the country’s leading commercial banks, which ensures complete security, and reliability in all-financial transactions.

PRODUCT MIX & PRICES OF MCB BANK

1 MCB Rupee Traveler Cheque

MCB Rupee Travelers Cheques are as good as

cash, infact better Better because with

Rupee Travelers Cheques you have the power

to purchase and a feeling of security that should you lose them, you will get a refund

MCB Rupee Travelers Cheques are accepted at major shops, travel agents, hotels, business establishments and MCB branches all over Pakistan You don'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, you are better off carrying Travelers Cheques rather than money

Trang 34

2 Mahnama Khushali Scheme

A 5- year fixed Deposit Scheme, targeted to persons with small savings who would desire a regular monthly return on their investment

Salient Features

• Minimum amount of investment shall be Rs.0.010m and the maximum amount of investment would be Rs 1.000m

• Khushali Certificates can be purchased by individuals (singly

or jointly) or by the Proprietorship/Partnership concerns or Companies, etc in their name

• The Khushali Certificate will be of five years maturity

• The interim rate of profit offered will be minimum 1% per month If the profit declared by the bank is higher, additional profit will be paid

• Zakat will be deducted wherever applicable on yearly basis whether you will be receiving your profit or encashing your certificates

• As per Government Directions, tax on the profit / return is

to be deducted by MCB branches at the time of payment

3. MCB Khushali Bachat Account

Salient Features

Trang 35

• 8% rate of return per annum.

• Returns calculated on daily

• Average balance and paid half yearly

• Introduced first time in Pakistan

• The facility of helping account holders pays utility bills (electricity, telephone and gas) through their account No queues No delays.

4. Prime Currency Account

Scheme

Launched to attract deposits in foreign

currencies US Dollars, Pound Sterling, Euro and Japanese Yen

Salient Features

• Owing foreign currency account under the Prime Currency Scheme allows you to earn attractive rates of interest in foreign currency

• You have a choice between opening this account in your personal name and opening it under joint names

• Whether you are a resident or a non-resident Pakistan, MCB Prime Currency Scheme invites all to operate a foreign currency account

Trang 36

• Foreign nationals and foreign companies can also open a foreign currency account under the Prime Currency Scheme.

• Your foreign currency account can be opened in four global currencies: The United States Dollar, the Pound Sterling, the Japanese Yen and the Euro

• Travellers Cheques and Foreign Currency Notes can also be issued to holders of persona! and Joint accounts

• Rupee Loan facility will also available against this account

• You can draw any amount of foreign exchange from your foreign currency account and transfer or remit the amount freely to any part of the world without any restrictions

• The restrictions imposed by the State of Pakistan for the opening of foreign currency accounts in case of passport; Work-permit and resident Visa have been withdrawn Your account will be restriction free

• The Prime Currency Scheme is exempt from al! forms of taxes including Income Tax, Wealth Tax and Zakat deductions

• MCB Prime Currency Scheme is a world in itself

5. Hajj Mubarak Scheme

A saving scheme, of 2/3 years duration, for the convenience of persons, with a limited income, who desire to perform Hajj was introduced

Trang 37

Under the 2 years scheme, a monthly deposit of Rs.1800 is required, whereas under the 3 years scheme, the required monthly deposit is only Rs.1200

6. Capital Growth Certificate Scheme

For long term depositors under which the amount deposited almost doubles at the end of 5 years For the scheme, the minimum amount of deposits is Rs 10000 while there is no maximum limit In case of premature encashment of the certificate, the depositor will profit at the same rates as that of

PL Saving Account

7. Fund Management Scheme

This scheme is offered to corporate and customers and is aimed

at providing better rate of return up to 15% per annum One of the objectives of the scheme is to develop secondary market for Government Securities

8. Consultancy Services

In the process of privatization of public sector units, prospective buyers need professional assistance and MCB, with its expertise, offers to them specialized service for valuation of the market value of the industrial unit, preparing bid documents and arranging finance for the purchase of the unit

Trang 38

9. Self Supporting Scheme

For the benefits of genuine worker/borrowers who are poor and needy and for small entrepreneur the bank as evolved a self supporting scheme: maximum amount of loan Rs.25000 and minimum Rs.5000 per individual Loan will be totally free of mark-up

10.Fax Press

This product was first of its kind introduced

by using modem technology of The Fax

Machine It facilitates speedy transfer of

funds within Pakistan The service

guarantees transfer of from one city to another, within an hour

11.Night Banking Service

For the convenience of the account holder, service has, especially, been introduced at busy commercial centers Traders and other clients can now make deposit, with case, at such centers up to 8.00PM

12.Utility Bill Collection

With the aim of extending this service to wider range of customers, the number of MCB branches collecting Utility Bills more than 900

Trang 39

13. MCB Mobile Banking

At the forefront of technological excellence, MCB proudly introduces MCB MOBILE BANKING* The convenience of accessing account balance information and mini statements whenever want or wherever may need them, with comfort and peace of mind

MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours - 365 days

MOBILE BANKING AT A GLANCE

MCB Mobile Banking gives easy and quick access to account(s) at a time find convenient, including all holidays

• WITH MCB MOBILE BANKING

Trang 40

Islamic banking services through exclusive units/branches offering a range of liability and asset based Sharia compliant products like Musharika, Murabaha, Ijara and Istasana

15. MCB Car Cash

Car financing and leasing at competitive rates with flexible options Car cash finances both semi-commercial and non-commercial vehicles for personal and business use

THE FUTURE OF MONEY

Since the beginning of time, people have

tried to find more convenient ways to pay, from gold to paper money and checks Today, money is moving away from distinct hard currencies and towards universal payment products that transcend national borders, time zones, and, with the Internet, even physical space

Plastic or "virtual" money, credit, debit, and electronic cash products, inevitably will displace cash and checks as the money of the future

Ngày đăng: 25/03/2014, 12:15

TỪ KHÓA LIÊN QUAN

w