internship report on MCB bank ltd 2011

internship report on MCB bank ltd 2011

INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 1 The Internship Report on MCB Bank Ltd. INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 2 PREFACE Internship is an integral part of B.Com (HONS) program. For the sake of internship the most initial thing is to have a practical experience. This effort may get as a student to get a practical experience if right organization is selected. During this internship, a student comes to particle knowledge. He learns what the has so far studied. As a B.Com (HONS) student I have also done my internship in MCB Bank Ltd. Sargodha. Here I come to know a different and very interesting experience of learning and working with people. First of all I will tell you about Bank then I will tell operations of different departments. This internship report is specially meant for the students of B.Com (HONS). It is concerned to a brief study of operation, functions, tasks and services of the MCB Bank Ltd. Banking play very important role in the commerce and economic development of any country. Now- a-days banks are using different modern technologies which influence the managerial activities that are why I decided to do my internship training in the bank. In preparation of this report I have tried my best to provide all possible information about the operation, functions, task and the corporate information of the MCB Bank Ltd. in brief and comprehensive way. This internship ends with some recommendations after identification of problems that I observed during the course of my internship training. Ali Raza Sahni INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 3 Dedication My report is dedicated to my parents, teachers and my cute friends who are always with me in Every Hardships of life and has waited for me to be here at Final stage. May! Allah Give them Long Life (AMEEN) INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 4 Acknowledgement Most grateful to Almighty Allah who enabled me to utilized my knowledge and skills for the preparation and completion of this internship report. I want to express my most humble gratitude to my supervisor and all other teachers and class fellows who furnished me with the opportunity to complete report I m also thankful to the manager Mr. Rashid Iqbal of MCB, Girls College Road Branch, Sargodha. I am also grateful to my colleagues and friends who provided with the moral support during the completion of this report. Ali Raza Sahni INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 5 EXECUTIVE SUMMARY The banking structure in Pakistan comprises of the following types, State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks, specialized credit institutions. The state bank of Pakistan is the Central bank of the country and was established on July 01, 1948. The network of bank branches now covers a very large segment of national economy. The State Bank of Pakistan issues the shares of these periodically. Bank employees and other common people can also purchase these shares and earn profit. In 1956, MCB transferred its registered office to Karachi, where the Head Office is presently located. In April 1991, MCB became Pakistan‟s first privatized bank. The corporate branch at Shahrah-e-Faisal Karachi (SFK) branch is the corporate branch of MCB in Karachi. The bank is using SWIFT for transfer of information about imports and exports. MCB SFK branch has Currently Following three Departments General Banking Department, Advances Department & Foreign Exchange Department. To open an account the customer has to meet the general banking manager with an introducer. The procedure begins with the punching of account opening form to the customer file i.e. customer‟s master file. Before closing any account, bank send letter to the account hold for informing him that his account is going to be closed. There is need an approval form higher authority to close any account. Current deposits are those which are payable to bank whenever demanded by the customer. Bank does not pay any profit on current deposits. The following are the financial products/services of MCB Malay Mail Scheme, PLS Account, Saving 365 Account, Capital growth certificate scheme, Fund Management Scheme, Khushali Bachat Account, Term/ Fixed Deposits and others like night banking, credit cards, traveler cheques. In remittance department like any other bank MCB also have instruments for transferring of money, Telegraphic Transfer, Mail Transfer. In cash department both deposits and withdrawals go side by side. This department works under the accounts department and deals with cash deposits and payments. This department maintains the following sheets, books, and ledger of account cash received voucher sheet. Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. The clearing in INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 6 Karachi at MCB or other banks is being done through NIFT (National Institute of Facilitation Technology). Bank provides this facility to the people who need advance money to meet their requirement. Party dealing with other banks financial condition of borrower business and as a first step credit proposal is being made. MCB provides advances, which are of two types. Secured Advances, Unsecured Advances. MCB usually classified advances in to following types Agricultural Advances, Commercial Advances Industrial Advances. Commercial Advances are of following types Demand Finance, Cash Finance, Foreign bills purchased, Finance against imported goods, Finance against foreign bills, Export Refinance Part I (Pre Shipment) & others. Banks Agriculture division deals with the agriculture advances. Bank provides the Agriculture Advances in order to enhance and support the agriculture sector of the country. Farm Credit & Non Farm Credit. In foreign exchange, MCB is dealing Foreign Currency Accounts, Foreign Remittances, and Foreign Bills for Collection, Imports & Exports Foreign currency accounts & the foreign currency department deals with the following types of accounts, Dollar Khushali account, Current account, Saving bank account, Term deposit, Prime Currency Scheme. Foreign accounts are convertible on floating rate available to the bank. Letter Of Credit facility is being provided by MCB in foreign exchange. 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. This bank was incorporated under companies‟ act 1913 on 9 th July, 1947 (just before partition) at Calcutta. But due to changing scenario of the region, the certificate of incorporation was issued on 17 th August, 1948 with a delay of almost 1 year; the certificate was issued at Chittagong. 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. INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 7 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. 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:  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. INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 8 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. COMPALINCE YEAR 2006 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 self-employment Scheme. The application received from various applicants is being processed on merit and disposed off as quickly as possible. INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 9 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 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 1 st Islamic banking branch at 1 st floor shaheen complex, Karachi. This complex starts working from September 1, 2003. INTERNSHIP REPORT ON MCB BANK LTD. University of Sargodha Department of Commerce P a g e | 10 Vision Statement CHALLENGING AND CHANGING THE WAY YOU BANK 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 Our Core Values  CUSTOMER FOCUS We treat each of our customer equality & as the most important person while we interact with him/her. We must ensure that we do everything to meet and exceed the customers expectations with perfect to times, accuracy & quality services.  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 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. [...]... Comme rce P a g e | 27 INTERNSHIP REPORT ON MCB BANK LTD PROMOTION STRATEGIES OF MCB BANK MCB Bank is actively participating in promotion of its products and services through advertisement and other promotional schemes Initially, the bank focused on the upper class customer‟s only and offered products for a limited class of people But now the strategy has been changed and the bank is now targeting the... Renovation Home Construction  Tenure 3 years to 15 years 2 years to 5 years 3 years to 15 years  MCB Virtual MCB Virtual provides the continence of banking on internet Whether at office or home or traveling Log on at www .mcb. com.pk and enjoy 24 hours access of all your accounts for the largest array of service University of Sargodha Department of Comme rce P a g e | 26 INTERNSHIP REPORT ON MCB BANK LTD. .. 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 University of Sargodha Department of Comme rce P a g e | 21 INTERNSHIP REPORT ON MCB BANK LTD MOBILE BANKING AT A GLANCE MCB. .. for personal and business use  MCB Locker The best protection for your valuables Lockers of different capacities are available nationwide  MCB Master Card University of Sargodha Department of Comme rce P a g e | 22 INTERNSHIP REPORT ON MCB BANK LTD 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... about returned cheques through Phone or personal contact Cheques are mailed through TCS in case of no personal cont act the same day (If there is any availability) University of Sargodha Department of Comme rce P a g e | 34 INTERNSHIP REPORT ON MCB BANK LTD ADVANCES DEPARTMENT Advances are the most important source of earning for the banks MCB is also giving full attention towards this aspect and it is... OFFICERS GRADE I II III ASSISTANTS CASHIER PEONS University of Sargodha Department of Comme rce P a g e | 14 INTERNSHIP REPORT ON MCB BANK LTD MANAGEMENT LEVEL The organization chart within a department and in different offices is as follows: Divisional Heads ……… …………………… Head Office Regional Head (EVP) ……… …………………… Regional Office Zonal Head (VP) ……… …………………… Zonal Office Branch Manager ……… …………………… Branch... per annum One of the objectives of the scheme is to develop secondary market for Government Securities University of Sargodha Department of Comme rce P a g e | 20 INTERNSHIP REPORT ON MCB BANK LTD 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... Department of Comme rce P a g e | 30 INTERNSHIP REPORT ON MCB BANK LTD Banks has different kinds of deposit schemes in order to induce deposits These schemes are a mixture of the above mentioned two types of deposits with an addition of different services & requirements such as minimum balance' requirement, mode of transaction, basis for calculation of profit, deductions, additional benefits, eligibility for... introduction of the MasterCard University of Sargodha Department of Comme rce P a g e | 23 INTERNSHIP REPORT ON MCB BANK LTD Our Corporate Banking ensures assistance from a dedicated team of professional financial advisors for underwriting, project finance or corporate advisory services When it comes to banking practices, you can depend on us We‟ve been around for over fifty years  MCB Smart Card MCB now... Sargodha Department of Comme rce P a g e | 16 INTERNSHIP REPORT ON MCB BANK LTD 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 Recently the organizational structure was re-designed as follows: Province wise branches MARKETING MIX OF MCB BANK LIMITED Marketing is the task of creating,