MCB BANK LIMITED

Internship Presentation MCB Bank Ltd.

Undertaken By

AHSAN UD DIN

G1F05MBAP0429

Supervised by:

Mr. Suleman Anwar

History of MCB• Incorporated in Calcutta, India under the Indian

Companies Act, VII of 1913 on 9th July, 1947

• Commenced its business from 17th August, 1948  • From Calcutta, India Head Office was shifted to Dhaka,

Bangladesh in August 1948 and from Dhaka to Karachi on 23rd August, 1956

 • Nationalized in 1974  

• Privatized on April 08, 1991•  

Vision & Mission

• Vision:

Challenging and changing the way you bank.

• Mission:

MCB Bank’s team of committed professionals

is dedicated to maintaining long term

customer relationships through outstanding

service and convenience.

Corporate InformationCorporate Information

Structure

938 Branches

16 General Managers

39 Regional Managers

2 Business HeadsCommercial Banking Group

(North & South)Consumer Banking Group

Head of Retail Banking Group

ACHIEVEMENTS • Euro money Awards

– Best Bank 2006– Best Bank 2005– Best bank 2004– Best Bank 2003– Best Bank 2001– Best Domestic Bank 2000– Asia Money Awards– BEST Domestic commercial Bank 2004 & 2005

Our Strengths

• First international debit card. Acceptable over 5 million POS (Maestro) and over 660,000 ATMs (Cirrus)

• 900+ branches nationwide.• Staff strength of over 9000.• Over 4 million customer base.• 870 automated branches.• 540 online branches in 65 cities.• Largest ATM network (280) of a single bank, over 35

cities.

Our Strengths

• One of the most technologically sound bank.• Leader in RTC.• Host of MNET Switch-14 member banks (410 ATMs)• Largest issuer of plastic money-600,000 ATM/Smart Cards.• MCB Towers, the tallest building of Pakistan.• 24-hour dedicated Call Centre.• More than 27,000 individual virtual banking users.• More than 130 corporate virtual banking users.

Practical Work

Operations Department

Operations Department

1. Reception

2. Account Opening

3. Clearing

4. Remittances

1. Reception

• Fill the pay-in-slips for the deposit of cash• Fill the pay-in-slips for the deposit of cheques• Fill the debit card application forms• To give any other information regarding MCB Bank

LockersLockersIt is the facility provided by the banks for the safe custody of valuable things of the

customers.

Issuance of the Locker• Application form MF-19

• Specimen signature card

• Either / survivorship from MF-19E (only if locker is in joint account names)

Payment of Rent Small Rs = 1000 P.A Medium = 1500 - Large = =2500 -

• Security deposit is Rs.1000/-(refundabal)

Types of Accounts• Individual Account

• Joint account

• Proprietorship account

• Partnership account

• Companies account

Nature of Accounts• CD Current• BBA (basic banking account)• PLS Saving• Khushali Bachat Account• 365 days GOLD • Foreign currency• Term Deposit• MCB Smart Saving Account

Basic Requirements• CNIC (Original + Photocopy)• Account Opening Form (AOF)• Specimen Signature Card• Know Your Customer (KYC) Form• Undertaking to Maintain Minimum Balance• An Introduction (Existing A/c holder) • The customer will sign the AOF.• The AOF along with relevant documents will be

obtained and forwarded to MO for his approval.

Account Opening Form

Four pages of Account opening Form.

(Along with the KYC Form).

SPECIMEN SIGNATURE CARD

Form used for the name of the Account Holder and his/ her signature

AccountsDormant Accounts

Current account not operated for 6 month and saving account if not operated for one year become dormant accounts.

Inoperative Accounts

Current accounts if not operative for two years & saving for three years become inoperative.

Unclaimed Accounts

If current / saving accounts remain inoperative for three years the same should be transferred from inoperative to unclaimed accounts. If these accounts remain unclaimed for ten years then become the property of State Bank of Pakistan.

Clearing Department

Clearing Department

"The transfer of funds from a branch of bank to the other branch of the same bank or the other bank on

which the instrument is drawn, without involving cash through "State Bank's clearing house"

Instruments

• Cheques• Demand Drafts • Pay Orders• Traveler’s Cheques

Types of Clearing

• Inward Clearing• Outward Clearing

– Local Clearing– Outstation Clearing

• Cheque Returned

• Outward Clearing:– When the cheque from Bank goes to another bank for clearing then it is called

outward clearing.

Outward clearing > Inward clearing (favorable)

• Inward clearing:– When the cheque comes in Bank for clearing is called inward clearing.

Inward clearing > Outward clearing (Against)

Clearing

Items necessary on Clearing Instruments

• Crossing Stamp• Clearing Stamp• Date (which should be current)• Endorsement Stamp on Backside• Amount in Figures and Words should match • Signature Verification

REQURED STAMPS

CLEARING

Inward Outward

Final Voucher Prepared

Bundle Cover

Separate Deposit Slips and Cheques

Posting

Stamping

Scrutiny of Cheques and Deposit Slips

Cheques Deposited

Make Bundle of 50 Cheques per List

Hand Over to NIFT Agent

Outward clearing Process

CLEARING

Outward Inward

Send to Account Department

Scrutiny of Cheques and Stamps

Cheques Withdrawals

Cancellation

Posting

Returns Marked

Hand Over to NIFT Agent

Transfer Stamp Attach Return Memo

Return Voucher Prepared

Inward Clearing Process

Cheque Return Memo (SF-16)

RemittanceRemittance is the monitory transfer

from one place to another place or from one country to another country to fulfill the requirements of the customers by the order of the customer.Remittance deals in these functions:

Demand DraftPay Order

Demand Draft• A draft or bill that is payable on demand or upon

presentation. Also called “demand draft.”Parties Involves

1- Purchaser2- Issuing or Drawing Branch3- Drawee Branch4- Payee/Beneficiary

Procedure for Issuance of DDDD Application formName of the payee should mentionedSigned by the purchaser

Commission and charges 0.1% commission75 postageFED

Pay Order• Pay order is an instrument through which

payment can be made from one bank to another bank within city.

• It is issues 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

Parties to a Pay order

• Purchaser• Issuing/ Payee branch• Payee

FinancialAnalysis

Financials

• Profitability more than tripled in 2005.

• Generated Rs.8.90 billion as profit after tax, assets have grown to Rs.298.70 billion.

• Total deposits have increased to Rs.229.3 billion, advances increased by over 30% to Rs180.30 billion.

• PACRA long term rating "AA“, short term rating "A1+“.

• Bank's return and profitability reflects its pro-growth mantra, proactive approach to growth and profitability.

Financial Analysis

• Net Profit Margin:2006 2005

1.8:1 1.46:1

• Income/ Expense Ratio:2006 2005

4.01:1 3.12:1

Financial Analysis

• Earning Per Share:• 2006 2005• 23.4 21.36

• Market Value Per Share:

• 2006 2005• 246.1 167.8

Earning Assets to Total Assets

84.50%

87.44%

83.00%

84.00%

85.00%

86.00%

87.00%

88.00%

2006 2005

YEARS

Earning Assets to Total Assets

2006

2005

Earning Assets / Total Assets

2005 2006

87.46% 84.58%

• Net Income / Earning Asset

4.98%

6.39%

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%

2005 2006

YEARS

Return on Earning Assets

3-D Column 1

3-D Column 2

2005 2006

4.98% 6.39%

LOAN LOSS COVERAGE 2005 200644.7 % 63.7 %

44.7

63.7

0

10

20

30

40

50

60

70

2005 2006

Problems Lack of co-ordination among the staff

members. Poor relationship with customers. Lack of authority and responsibility. Lack of motivation and fringe benefits. Lack of highly professional educated

personals. Lack of training to the staff members. No good dealings with customer.

Lack of learning environment No well established parking space. Lack of efficient services. Lack of segregation of the department No time management Machinery not up to date (inefficient) Lack of marketing expertise

Problems

Suggestions & ReconditionsProper Research & Development Providing learning environmentBuild Coordination between departmentsTraining and development on continuous

basisEstablished Marketing campaign on regular

basisIncrease portfolio for SME customerPrecautionary plan to protect from new

competitors

Suggestions & ReconditionsExpansionProper reward and recognitionEfficient and effective marketing campaignAdvanced management information systemEncouragement of ideas from employeesTechnological AdvancementBank should provide the training to new

staff as well as old staff.

Suggestions & Reconditions Bank should install the broad band technology. Bank should be coordination among staff. Bank should be the good dealing with the

customer. Bank should provide effective & efficient

services. Bank should provide the learning environment. Bank should install ATM machine in every

branch. Bank should expand their product line. They should develop their Research &

development department.