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Internship Report on MCB bank ltd
Submitted by
Syed Usman Nisar
L1F11BCOM001
Session !011 " !01#
F$CUL%& OF COMM'RC'
UNI('RSI%& OF C'N%R$L )UN*$B
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1"$ +hayaban"e"*innah Road, *ohar %o-n Lahore,
)akistanInternship Report on MCB bank ltd
Submitted by
Syed Usman Nisar
L1F11BCOM001
Session !011 " !01#
Super.ised by
)ro/ a2as 3aki
$ )ro4e5t submitted in partial /ul/illment o/ the re2uirements /or the de6ree o/
Ba5helors o/ Commer5e
Fa5ulty o/ Commer5e
UNI('RSI%& OF C'N%R$L )UN*$B
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Undertakin6
I certify that the internship report titled Internship Report on Muslim Commer5ial Bank is
my own work. The work has not been presented elsewhere for assessment.
Signature of Student: ________________________
Name of Student: ___________________________
egistration Number of Student: _______________
!
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Internship Report Completion Certi/i5ate
It is certified that the work contained in this report titled Internship Report on Muslim
Commer5ial Bank has been carried out and completed by "r. Syed #sman Nisar$ egistration
No. %&'&&()*"++&! under my super,ision during his (achelors of )ommerce.
-rade warded Internship In/charge
___________________ _________________
01aminer2s Signature 34rof. 5a6as 7aki8
_________________
4rof. "uhammad 9har Ikram hmadean
'aculty of )ommerce
#ni,ersity of )entral 4un;ab
%ahore
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$5kno-led6ements
5rite acknowledgement here. )ontribution of the persons who helped in the conduct of the study
and in presentation of the manuscript should be properly acknowledged in order of their
contribution.
=
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$bstra5t
")( is one of the eminent banks in 4akistan which has made truly a tremendous progress in a
moderately shorter timeframe. It was found in &>
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Table of )ontent
Table of Contents
)hapter &..........................................................................................................................................&
Cision Statement:.........................................................................................................................&
"ission Statement:......................................................................................................................&
Distory of (ank...........................................................................................................................E
")( (ank Today....................................................................................................................
"anagement %e,el................................................................................................................&+
*rgani9ational Structure of ")(..........................................................................................&&
Duman esource 'unctions.......................................................................................................&E
Structure of the "arketing epartment.....................................................................................&=
'unctions of the "arketing epartment................................................................................&=
)hapter E:.......................................................................................................................................&?
Strategic nalysis of )ompany:................................................................................................&?
"acro nalysis:.....................................................................................................................&?
4est nalysis *,er,iew:........................................................................................................&?
4est nalysis of ")(............................................................................................................E&
"icro nalysis:......................................................................................................................E!
4orter 'i,e 'orces "odel......................................................................................................E!
S5*T nalysis.....................................................................................................................E=
S5*T nalysis Guadrant )ombination 3S5*T "atri18.....................................................!&
Industry nalysis...................................................................................................................!>+$ ")( was the first to be pri,ati9ed
upon recommendations of 5orld (ank and I"'. The purpose behind this decision was the better
producti,ity state of the association and less risky credit portfolio which madeBB it a decent
decision for financial specialists. *n pril eighth$ &>>&$ the administration control was gi,en
o,er to National -roup 3the highest bidders8. t first ;ust E@K of shares were sold to pri,ate part
at s.=@ per offer.
$/ter )ri.ati7ation
Ten years after pri,ati9ation$ ")( 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 rationali9ed the cost structure in order to remain a low cost
producer.
fter pri,ati9ation$ the growth in e,ery department of the bank has been obser,ed. 'ollowing are
some key de,elopments:
%aunching of different deposit schemes to increase sa,ing le,el.
Increased participation on foreign trade.
(etterment of branches and staff ser,ice le,el.
&E
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MCB Bank %oday
")( today$ speaks to a bank that has de,eloped with time$ e1perience and 4akistan.
noteworthy money related organi9ation$ in degree and si9e$ it symboli9es a completely
de,eloping tree e,ergreen$ solid$ and immo,ably established.
%he Business
")( is in it2s o,er =+ years of operation. It has a network of o,er &$+++ branches all o,er the
country with business establishments in Sri %anka and (ahrain. The branch break/up pro,ince
wise is 4un;ab 3=?K8$ Sindh 3E&K8$ 4 3&>K8 and (aluchistan 3!K8 respecti,ely.
")( has an edge o,er other local banks$ as it was the first pri,ati9ed bank. The State (ank of
4akistan has restricted the number of branches that can be opened by foreign banks$ an
ad,antage that ")( capitali9es because of its e1tensi,e branch network.
'ourteen years after pri,ati9ation$ ")( 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 rationali9ed the cost structure in order to remain a low cost
producer.
")( now focuses on three core businesses namely )orporate$ )ommercial and )onsumer
(anking. )orporate clientele includes public sector companies as well as large local and
multinational concerns. ")( is also catering to the growing middle class by.
&!
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)ro.idin6 Ne- $sset and Liability )rodu5ts
The (ank pro,ides E< hour banking con,enience with the largest T" network in
4akistan co,ering E? cities with o,er &=& T" locations. The (ank2s upee
Tra,eller )he6ues ha,e been market leaders for the past si1 years and ha,e recently
launched their -ift )he6ue Scheme.
ma;or achie,ement of ")( is that the state bank of 4akistan has issued a license to
")( to start Islamic banking. Now ")( is setting up a & stIslamic banking branch at &st
floor shaheen comple1$ arachi. This comple1 starts working from September &$ E++!
&
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O.er.ie-
Core Values
1 Inte6rity
5e are the trustees of public funds and ser,e our community with integrity. 5e belie,e in being
the best at always doing the right thing. 5e deli,er on our responsibilities and commitments to
our customers as well as our colleagues.
! Inno.ation
5e encourage and reward people who challenge the status 6uo and think beyond the boundaries
of the con,entional. *ur teams work together for the smooth and efficient implementation of
ideas and initiati,es.
':5ellen5e
5e take personal responsibility for our role as leaders in the pursuit of e1cellence. 5e are a
performance dri,en$ result oriented organi9ation where merit is the only criterion for reward.
; Customer Centri5ity
*ur customers are at the heart of e,erything we do. 5e thri,e on the challenge of understanding
their needs and aspirations$ both reali9ed and unreali9ed. 5e make e,ery effort to e1ceed
customer e1pectations through superior ser,ices and solutions.
&=
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# Respe5t
5e respect our customers2 ,alues$ beliefs$ culture and history. 5e ,alue the e6uality of gender
and di,ersity of e1perience and education that our employees bring with them. 5e create an
en,ironment where each indi,idual is enabled to succeed.
&@
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PRESIDENT
EXECUTIVE VICE PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT
OFFICERS GRADE
I II III
VICE PRESIDENT
ASSISTANT VICE PRESIDENT
CASHIER
ASSISTANTS
PEONS
Or6ani7ational 9ierar5hy o/ MCB
Or6ani7ational Setup o/ MCB
&?
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Ceo, s Messa6e
5e at ")( (ank %imited belie,e that e,ery employee is uni6ue and possesses
distincti,e talents that we ,alue and nurture. ")( (ank is home to an e1clusi,e group of
committed and dedicated indi,iduals who ;ointly$ with their dedication$ honesty$ inno,ation and
teamwork$ contribute towards our collecti,e success. *ur organi9ation has a long and healthy
tradition of pro,iding e1ceptional ser,ice and preser,ing strong relationships with both our
internal and e1ternal customers. Therefore$ at ")( (ank$ we inspire e,ery indi,idual to play a
significant role in our continued success by creating ma1imum economic ,alue for our clients
and shareholders$ while maintaining the highest human ,alues and principles.
")( (ank is one of the leading financial ser,ices pro,iders in 4akistan and as one of the largest
and oldest banking entities in the countryA we not only embrace and cherish our heritage and
traditions$ we stri,e for growth and change as well. *ur goal is to create and promote long term
relationships with our customers by catering to all their financial needs$ including traditional
banking ser,ices$ insurance and in,estment ad,isory$ coupled with an e1ceptional le,el of
customer ser,ice.
*ur ob;ecti,e at ")( is to ensure that we ha,e moti,ated$ professional and customer/centric
employees on board who help us deli,er the promise of being the Bmost credible bankB across the
industry.
)resident < C'O
MCB Bank Limited
&F
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Mana6ement Le.el
The organi9ation chart within a department and in different offices is as follows:
i,isional Deads Dead *ffice
egional Dead 30C48 egional *ffices
7onal Dead 3C48 7onal *ffice
(ranch "anager (ranch
3C4$ C4$ -0 &$ E$ !8
&>
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Or6ani7ational Stru5ture o/ MCB
s ")( is a banking company listed in stock e1change therefore it follows all the
legalities which are imposed by concerned statutes "r. "uhammad "ansha is chairman L chief
e1ecuti,e of the company with a team of &+ directors and & ,ice chairman to help in the business
control and strategy making for the company.
*perational "anagement of the bank is being handled by a team of &+ professionals. This team
is also headed by "r. "uhammad "ansha. The different operational departments are )onsumer
(anking L IT di,A 'inancial L Inter branch di,A (anking operations di,A D L %egal di,A
financial control L udit di,A )redit management di,A )ommercial (anking di,A )orporate
(anking di,A Treasury management L 'M -roup and lastly Special ssets "anagement 3S"8
-roup.
'or effecti,e handling of branches$ it has been categori9ed into three segments with different
people handling each category. These categories are:
a8 )orporate (anking
b8 )ommercial (anking
c8 )onsumer (anking
E+
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9uman Resour5e Fun5tions
The human resources department 3D8 supporter the importance of the indi,idual while
thinking strategically .D con,eniences the establishment of an atmosphere in which people
ha,e the incomes to continuously grow in moti,ated for carry on impro,ement for the
remunerations of all stakeholder.
Situated as strategic business unit within the commercial structure of the ")( $the D $s has
as its prime responsibility to gi,e to the organi9ations efficiency by attracti,e its people and line
up the strategies and actions and system to the policy of the business .it is through this that the
D adds ,alue to the institution.
The human resources department 3D8 con,eniences and partner with its customers 3mcb staff8
in applying the planned strategy through.
)apability grounded D systems.
4olicy and actions
0,ol,ing abilities
ppearance organi9ation
)lear and e1posed statement
emuneration and appreciation
0mployee happiness
Cariety
greement
E&
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human resources outlet is to assurance the important ser,ices$ progresses and policies are in
place to succeed employee to accomplish at their finest$ be safe and satisfied with their work and
be properly de,eloped .human resources is also ,ital to settle that employees energy in an
atmosphere which is in unity with the department2s ,alues$ the related legislati,e re6uirements
and public ser,ice ,alues and best training
Duman resources area office is liable for the administration of the human resources role for the
department of human ser,ices .this entail of responsibility for human resources systems$ policy
and training through the branch. The branch is planned to importance on planned human resource
work$ the super,ision of departmental mangers and human resources staff in areas and di,isions
Duman resources ha,e a number of areas of focus including:
0mployee relation
0mployee security
"anagerial facilities
rrangement and concert
*rgani9ational capability
*rgani9ation growth and maintenance
The human resources branch managers a number of organi9ation/wide schemes through the
department in the abo,e areas$ in association with human resources staff in area and programs.
EE
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The branch e,erything closely through manufacturing relation branch 3situated within financial
and commercial facilities di,ision8 in e,ol,ing and applying enterprise negotiating agreements
and issue resolution with mergers co,ering the department2s employees.
E!
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Stru5ture o/ the Marketin6 =epartment
The marketing department of ")( bank is e1tremely coordinated. It is ,ery much organi9ed as
appeared in the ,arious hierarchical chart. The marketing department is situated in head office. It
is comprised of ,ery e1pert indi,iduals .it is blend of those indi,iduals who got ad,ancement
from the deals 5hatBs more$ some are enlisted from the e1pert business sector of sa,ing money.
Fun5tions o/ the Marketin6 =epartment
4olicies are consistent and persistent due to unstable political -o,ernment and military
inter,entions. 0,ery one or second year$ new or amended policies are in place. In such a highly
unstable and unpredictable financial en,ironment$ the role and responsibility of marketing team
become ,ery important.
'ollowing are the functions of marketing team:
&. 0,ery year$ there is a corporate ob;ecti,e of ")( bank. It is both strategically as well as
financial. s per the ob;ecti,es set the marketing team de,elops or design marketing strategies to
meet these commercial and strategic ob;ecti,es.
2.The research conducted is anal!ed and used to de"elo# #roducts
!. If there is a new situation as per the new need in financial sector the marketing team
dds new line e1tension in the product or launches new products
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=. New strategies are made increase the market share of consumer finance as well as commercial
finance.
@. New campaign on media$ net and on branch are designed
?. New broachers are designed printed and circulated in the branches
F. s per the new situation due to the increasing interest rate$ ")( has also increased interest
rate and its offerings on the sa,ing accounts.
E=
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)hapter E:
Strate6i5 $nalysis o/ Company8
Ma5ro $nalysis8
)est $nalysis O.er.ie-8
The 40ST analysis is a useful tool for understanding market growth or decline$ and as
such the position$ potential and direction for a business. 40ST analysis is a business
measurement tool. 40ST is an acronym for 4olitical$ 0conomic$ Social and Technological
factors$ which are used to assess the market for a business or organi9ational unit.
40ST analysis is a business measurement tool. 40ST is an acronym for 4olitical$ 0conomic$
Social and Technological factors$ which are used to assess the market for a business or
organi9ational unit.
The 40ST analysis headings are a framework for re,iewing a situation$ and can also$ like S5*T
analysis$ and 4orterBs 'i,e 'orces model$be used to re,iew a strategy or position$ direction of a
company$ a marketing proposition$ or idea. )ompleting a 40ST analysis is ,ery simple$ and is a
good sub;ect for workshop sessions. 40ST analysis also works well inbrainstormingmeetings.
#se 40ST analysis for business and strategic planning$ marketing planning$ business and product
de,elopment and research reports.
40ST analysis is one of the ma;or tools that help in determining the e1ternal factor influence
upon the optimum performance of organi9ation. 40ST combines following e1ternal factors that
may ha,e effects on business performance$ whether e1ternally or internally. 40ST analysis
categori9es following these points
)olitical
'conomical
Social
%echnological
E@
http://www.businessballs.com/swotanalysisfreetemplate.htmhttp://www.businessballs.com/swotanalysisfreetemplate.htmhttp://www.businessballs.com/portersfiveforcesofcompetition.htmhttp://www.businessballs.com/workshops.htmhttp://www.businessballs.com/brainstorming.htmhttp://www.businessballs.com/swotanalysisfreetemplate.htmhttp://www.businessballs.com/swotanalysisfreetemplate.htmhttp://www.businessballs.com/portersfiveforcesofcompetition.htmhttp://www.businessballs.com/workshops.htmhttp://www.businessballs.com/brainstorming.htm7/25/2019 Internship Repo Final
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E?
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)oliti5al
4olitical factors are basically to what degree the go,ernment inter,enes in the economy.
Specifically$ political factors include areas such as ta1 policy$ labor law$ en,ironmental law$ trade
restrictions$ tariffs$ and political stability. 4olitical factors may also include goods and ser,ices
which the go,ernment wants to pro,ide or be pro,ided 3merit goods8 and those that the
go,ernment does not want to be pro,ided 3demerit goods or merit bad8. 'urthermore$
go,ernments ha,e great influence on the health$ education$ and infrastructure of a nation.
%abor %aws
)onsumer 4rotections %aws
Ta1 egulations 0mployment %aws
0n,ironmental %aws
'5onomi5al
0conomic factors include economic growth$ interest rates$ e1change rates and the
inflation rate. These factors ha,e ma;or impacts on how businesses operate and make decisions.
'or e1ample$ interest rates affect a firmBs cost of capital and therefore to what e1tent a business
grows and e1pands. 01change rates affect the costs of e1porting goods and the supply and price
of imported goods in an economy.
There are certain factors that sum up o,erall economic scenario for a firm to operate in.
0conomic policies
'luctuations in e1change rates
0ffects of 5orld 0conomies
International (usinesses and Trade
So5ial
Social factors include the cultural aspects and include health consciousness$ population
growth rate$ age distribution$ career attitudes and emphasis on safety. Trends in social factors
EF
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affect the demand for a companyBs products and how that company operates. 'or e1ample$ an
aging population may imply a smaller and less/willing workforce 3thus increasing the cost of
labor8. 'urthermore$ companies may change ,arious management strategies to adapt to these
social trends 3such as recruiting older workers8.
%e5hnolo6i5al
Technological ad,ancements are approaching to the highest fre6uencies now a day. n
organi9ation lacking in technological ad,ancement is highly ,ulnerable to threat of becoming an
obsolete amongst modern manufacturing and business concerns.
Technological ad,ancements can be further classified in to following categories
Technological d,ancements
%ife cycle of Technology
Spending on technology
Training and e,elopment
E>
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)est $nalysis o/ MCB
Political
4olitical instability within 4akistan can lead to changes in law and policies which can be
in fa,or or against the banking sector.
(anks are strongly affected by the political and legal considerations and this en,ironment
composed regulatory agencies and go,ernment law that influence and limit ,arious organi9ations
and indi,iduals. "ostly these laws create new opportunities for business.
(usiness legislation has following main purpose.
To protect the banking companies from unfair competition. To protect consumers from unfair business practices adopted by banking companies.
To protect the interest of the society from unbridled business beha,ior.
Economical
0conomy of 4akistan is facing issues about employment$ inflation$ illiteracy$ which
hinder business growth.
So the banking market re6uires better consumer market in ,olume along with higher borrowing
power. The a,ailable borrowing power depends on.
Sa,ing rates
)onsumption patrons
ate of interest
(udget deficit
01change rates
)ost of li,ing
Inflation
Social
)ultural issues can be there but still as there are a number of multinational companies
nearby$ therefore$ cultural issues are not prominent.
!+
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society is shaped by beliefs$ norms and ,alues. 4eoples in a society consciously and
unconsciously interact with.
Themsel,es
*thers *rgani9ation
Society
Technological
4eople are highly skilled and ")( can introduce new technology to increase
competencies.
'orces of technological ad,ancement ha,e played most dramatic role in shaping the li,es of the
peoples. The rate of change of technology has greatly affected the rate of growth of economy.
New technology is creating deep rooted affects which could be obser,ed in long run. The
impro,ement techni6ues in,ol,ed in online banking. In brief 40ST analysis affects o,erall
banking companies and pro,ides us the information about the e1ternal macro condition.
!&
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Mi5ro $nalysis8
)orter Fi.e For5es Model
1. Barriers to Entry:
The ")( is pro,iding ,alue added ser,ices to its customers. *n the other hand market is getting
more saturated and other organi9ations are getting in,ol,ed in the bank operations. 'or e1ample$
Telenor is offering 0asy 4aisa$ etc. t the beginning all the functions like money e1change$
currency con,erter$ '*0M$ money transfer$ etc were relates to bank but now a day other
organi9ations are becoming more speciali9ed in these and hence resulted in declining of profit
3commission income or ser,ice charges8.
2. Bargaining Power of Supplier:
(ecause of concentrated competition and new entrance of foreign banks in the industry the
in,estors are becoming more conscious in pro,iding the funds for deposits. The funds are
dispersed among the banks because e,ery bank in the industry wants to capture these funds
3from potential in,estors8 hence to increase its market share and to generate more and more
profit. It is the fact that supplier2s funds are more critical to market success. ue to which the
bargaining power of supplier has been increased.
'inancial statements of ")( re,eal that deposits with the bank are decreased from F!K to ?>K
during the last se,en years.
3. Bargaining Power of Customers:
)ustomers can be powerful when the switching cost is ,ery low and in the banking sector the
customer2s needs includes fa,orable profit on in,estment and getting banking ser,ices with low
cost. ll the banks in 4akistan are competing for healthy market share so they are trying to
pro,ide the better ser,ices from other banks by gi,ing more incenti,es on their ser,ices as a
!E
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result of which the bargaining power of customers has been increased. Dence the ")( is facing
great difficulty in sustaining his competiti,e position in the market and this is done by pro,iding
more are more ,alue added ser,ices to its customers.
. !"aila#ility of Su#stitute Pro$uct:
Substitute products are also a,ailable in the market like "obi)ash ser,ices by "obilink -S"$
0asy 4aisa by Telenor 4akistan both are used for transfer of money between two customers.
There is also an e1ample of 4ay4al$ lert 4ay$ etc are best alternati,es for the transferring of
money all across the globe with minimum charges or ser,ice fee. ll these substitute products
are creating a big hurdle in earning commission and generating re,enue for the bank.
%. &i"alry among the Competitors:
The intensity of competition in an industry depends upon bulk of factors such as number of
competitors$ the presence of e1it barriers$ degree of product differentiation and growth rate.
Taking only one factor in due consideration the degree of product differentiation it can be seen
that all the banks are pro,iding same kind of ser,ices but with different names. It means that the
degree of differentiation for the products is near to 9ero and it is fact that when the degree of
product differentiation is less the competition is high because customer2s switching cost
eliminates. 'or e1ample$ N(4$ #(%$ Summit (ank$ (* etc are offering the ser,ices for
transfer of money with the help of Mpress "oney. nd some other banks like (ank l/Dabib$
(ank lflah etc are using "oney -ram for the same acti,ity.
!!
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SO% $nalysis
S5*T analysis is a key measurement tool that helps in determining key factors$ which
can make a difference between success and failure of a business concern.
Theoretically S5*T analysis may be defined in the following ways$
'! S()T analysis *Strengths+ (ea,nesses+ )pportunities+ an$ Threats- is a strategic
planning tool+ useful for planning an$ $ecisionma,ing at multiple le"els within an
institution+ organi/ation or #usiness.0
S5*T analysis within an organi9ation can be carried out on a single product$ place or on the
whole industry. The main purpose of the S5*T analysis of an organi9ation is to de,elop the
understanding regarding internal and e1ternal factors$ whether these factors fits best with the
core competencies of the organi9ation or not.
Fi6ure 1 SO%
!
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Stren6ths >Internal?
The ma;or distinguishing factors$ that gi,es competiti,e edge o,er the others.
4olitical support
'unding a,ailable
"arket e1perience
Strong leadership
eakness >Internal?
The ma;or factors that can lead towards diminishing performance of an organi9ation$
5ith respect to other enterprises.
4ro;ect is ,ery comple1
%ikely to be costly
"ay ha,e en,ironmental impact
Staff resources are already stretched
Opportunity >':ternal?
ll the possible e,ents$ which may go in the fa,ors of organi9ation.
4ro;ect may impro,e local economy
5ill impro,e safety
4ro;ect will boost companyBs public image
!=
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%hreats >':ternal?
ll such contributing factors$ that ultimately leads to reduced performance.
0n,ironmental constraints
Time delays
*pposition to change
!@
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=etermination o/ 'lements o/ SO%
The first step towards S5*T analysis is to determine key elements of each sub part of
S5*T analysis. This means$ all the possible sum of Strengths$ 5eaknesses$ *pportunity and
Threats$ which an organi9ation possess are to be determined.
Strengths
The main strength of the bank lies in its ser,ices. The other fact that contributes is
approaching to each segment of society .another positi,e concern that becomes the strength of
the bank is its inno,ation some others are as follows
(ank reputation Technical management skills
)ustomer satisfaction
4romotion effecti,eness
Team based approach
Guest for 6uality
0mployee respect and dignity
%arge network of branches
(ea,nesses
")( has some weakness within the organi9ation which is discuss under as follows.
%ess producti,ity from staff
*,erburdened staff
%ate sitting trend
%ack of organi9ation de,otion
ttitude of seniors towards to ;uniors
%ack of leadership 6ualities
)pportunities
")( bank may impro,e its upee Tra,ellers )he6ues 3T)s8 sales by through for new
market positions. It can familiari9e debt card system or may adapt the current T" cards into a
whole debt card. Douse financing sector can be targeted to ma1imi9e the profit.
!?
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")( bank enter into contract with other banks to use each other $s T"s which will result in an
increased accessibility to ")( customers and customers of other banks as well as all around the
world settlements money are strictly obser,ed so as the money paid may not fall in hands of thus
termed e1tremists for that all predictable money filtering done D#NI0S ha,e been still there is
an opportunity for ")( to spread its branch network to se,eral countries highlighting mostly on
introducing electronic fund transfer ser,ices.
ifferent banking courses can be offered for impro,ing of banking staff.
"anagement skills
#pdate courses
'oreign training
IT courses
Threats
0,ery organi9ation has threats from internally and e1ternally and ")( also ha,e some
kind of threats.
)ompetitions are increasing day by day
Increasing interest rates
Instability of go,ernment policies
0ntrance of foreign banks in local market
5eak economic condition of 4akistan
#nregistered business concern
!F
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!>
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SO% $nalysis @uadrant Combination >SO% Matri:?
Stren6ths AS
(ank reputation
Technical
management skills
)ustomer
satisfaction
4romotion
effecti,eness
Team based
approach
Guest for 6uality
0mployee respect
and dignity
%arge network of
branches
eaknesses A (
%ess producti,ity
from staff
*,erburdened staff
%ate sitting trend
%ack of organi9ation
de,otion
ttitude of seniors
towards ;uniors
%ack of leadership
6ualities
Opportunities A )
"anagement skills
#pdate courses
'oreign training
IT courses
S) Strate6ies
")( should train
their team by latest
management skills.
They should send
their employees for
foreign training
and demos.
")( should start a
program for IT
() Strate6ies
%ess producti,e staff
can be trained and
become effecti,e
staff.
%eadership 6ualities
can be de,eloped by
foreign trainings.
*,erburdening and
late sitting trend can
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courses for all
employees.
be changed by
management skills to
upper le,el
management.
%hreats A T
)ompetitions are
increasing day by day
Increasing interest rates
Instability of
go,ernment policies
0ntrance of foreign
banks in local market
5eak economic
condition of 4akistan
#nregistered business
concern
ST Strate6ies
)ustomer
satisfaction and
team based
approach can
minimi9e the fear
of competitors.
%arge network of
branches and
skilled management
can cater the 5eak
economy and
instability threat.
(ank reputation
and customer
satisfaction can
attract more
customers which
(T Strate6ies
ather than late
shifts$ management
should introduce two
shifts for employee
satisfaction and to
minimi9e the threat
of competitors.
(y train the upper
le,el management
their attitude can be
changed towards
;uniors which can
help them caters the
threats collecti,ely.
")( should raise the
salary packages for
the middle le,el and
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Industry $nalysis
':ternal Fa5tor '.aluation >'F'? Matri:
01ternal 'actor 0,aluation 30'08 matri1 method is a strategic/management tool often
used for assessment of current business conditions. The 0'0 matri1 is a good tool to ,isuali9e
and prioriti9e the opportunities and threats that a business is facing.
01ternal factors assessed in the 0'0 matri1 are the ones that are sub;ected to the will of social$
economic$ political$ legal$ and other e1ternal forces.
*pportunities
ll e,ents that may be go in fa,our of the organi9ation.
Threats
ll e,ents which would be lea,e negati,e impact on organi9ation.
0'0 ")(
ey 01ternal 'actors 5eight ating 5td
Score
Opportunities
&. -o,ts help to up lift economy +.&= ! +.!+
E. i,ersification towards Islamic banking +.&= ! +.!+
!. "icro 'inancing for 'armers +.+= ! +.&=
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&. (anking acti,ities influenced by 4olitics +.&= E +.!+
E. 0nergy crisis hits the industry performance
badly
+.+= & +.+=
!. Inflation ates +.&+ E +.E+
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Competiti.e )ro/ile Matri:8
$BL MCB
CSFs >5ontd? t Ratin
6
td
S5ore
Ratin
6
td
S5ore
Finan5ial
)osition
+.&
=
< +.@+ < +.@+
Ser.i5e
@uality
+.&
+
! +.!+ < +.
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Internal Fa5tor '.aluation Matri:
Internal 'actor 0,aluation 3I'08 matri1 is a strategic management tool for auditing or
e,aluating ma;or strengths and weaknesses in functional areas of a business.
The I'0 "atri1 together with the 0'0 matri1is a strategy/formulation tool that can be utili9ed to
e,aluate how a company is performing in regards to identified internal strengths and
weaknesses of a company. The I'0 matri1 method conceptually relates to the (alanced
Scorecardmethod in some aspects.
IF' A MCB+ey Internal Fa5tors ei6ht Ratin6 td
S5ore
Stren6ths
&. %arge online (ranches Network +.&+ ! +.!+
E. %arge T" network +.&= ! +.
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E. %imiyed co,erage of rural areas +.&= E +.!+
!. Digh Non/performing %oans +.+= E +.&+
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S)$C' Matri:8
Internal Strate6i5 )osition ':ternal Strate6i5 )osition
Competiti.e $d.anta6e >C$? Industry Stren6th >IS?
"arket Share /E
*nline networksHT"s /&
Technological nowledge /&
)ustomer Ser,ice /E
)ustomer %oyalty /!
,erage: /&.F
-rowth 4otential 'S?
eturn on sset =
%e,erageHebt billion as at ecember !&$ E++> to s. >!= billion as atecember !&$ E+&
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of holding the highest )S base$ supporting its lower cost of deposits. The (ank has been
strategically tapering off its high cost deposit. .The )S base has more than doubled in last @
years$ increasing from s. !+= billion in E++> to s. @E@ billion in E+&from in,estments has increased to @&.>&K 3E++>: E@.>K8.
O The regulatory re,isions co,ering minimum deposit rate during the commentary period
has ad,ersely affected the (ank2s net interest margin. The said impact was diluted by impro,ing
the )S base o,er period taking it to an all time high of >&K as at ecember !&$ E+&
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O The fee$ commission and brokerage block of the (ank has been constantly increasing
o,er the years with ma;or contributions coming from commission earned on card business$
bancassurance business$ remittances and intercity H intra/city cash transfers.
O The e6uity in,estment base of the (ank has been pro,iding outstanding di,idend yields
with di,idend income and capital gain pro,ing to be the second highest contributor to
nonmarkup income. uring the past @ years$ appro1imately s. ? billion has been earned by way
of )apital -ains.
Operatin6 ':penses
O *wing to the strengthened risk management framework$ the pro,ision charge of the
(ank has been on a declining trend o,er years. The pro,ision and write/off charge was reported
at s. ?. which was reduced substantially to s. E>&" for the year
E+&E. 'or the year E+&! L E+& billion and
s. &.< billion respecti,ely based on the reco,eries posted classified ad,ances. It is pertinent to
add that the (ank carries an unencumbered general pro,ision of around +.&K of gross ad,ances
and has not taken the benefit of 'SC in pro,ision calculation for the year E+&
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Compariti.e $nalysis8
Fi6ure ; Comparati.e $nalysis o/ Balan5e Sheet
=@
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Fi6ure # Comparati.e $nalysis o/ )ro/it and Loss
=?
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9ori7ontal $nalysis =es5ription8
sset base of the bank has increased considerably o,er the past @ yearsA highest increase was
obser,ed in E+&E where assets increased by &?K$ mainly contributed by in,estments in terms of
,olume. *n an annuali9ed basis$ the asset base has recorded an increase of &!K o,er the last si1
years. Dighest increase in in,estment base was reported in E+&& of K$ followed by E?K
increase reported for E+&E.
The deposit base of the (ank has increased considerably o,er the years growing from s. !@F
billion in E++> to s. @FF billion in E+&< translating into an annual growth of &!K o,er past @
years. 06uity of the bank has also posted healthy increase due to higher profitability in past @
years$ translating into &
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%rend $nalysis8
Fi6ure H %otal $ssets %rend $nalysis
Fi6ure J %otal =eposits %rend $nalysis
@+
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Fi6ure In.estments %rend $nalysis
Fi6ure Gross $d.an5es %rend $nalysis
@&
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Fi6ure 10 Fund Based In5ome %rend $nalysis
Fi6ure 11 Non Markup In5ome %rend $nalysis
@E
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Fi6ure 1! )ro/it a/ter %a: %rend $nalysis
Fi6ure 1 )ro/it Be/ore %a: %rend $nalysis
@!
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)hapter !:
Re5ommendations8
0fficient cost/control procedures may limit the growth of operating e1penses leading to
higher operating profit margin. (anks poorly managed their operating e1penses. 'urther
impro,ement may be necessary to enhance *0 de,elopment.
The bank should emphasis on the organi9ation of effecti,e training and de,elopment
programs for its new as well as e1isting employees so that these are gradually updated
regarding the recent de,elopments in the field of banking.
In griculture loan Sector$ ")( mainly ser,ing in 4un;ab pro,ince. griculture loans
facility should be pro,ided to all other pro,inces of 4akistan as well.
")( should pro,ide greater facilities to its employees$ and gi,e them bonuses for their
hard work and 4romotions as well. There is a criticism on the banking management that
the salaries of the employees are decreasing in e,ery succeeding year. nd I think this
will shake the confidence and working habit of the employees
The bank should keep on filling the gap between customer and the bank through
consumer friendly attitude and efficient ser,ices. They should work on building
relationship with the customers.
0mployees inside the branches should change their attitude toward the customer. It has
been obser,ed that customer do not get the same warm welcome and importance that he
wants and he is been pro,ided by other emerging banks. They should start thinking about
changing their attitude from now.
'oreign branches should be opened in order to capture the international market and to
earn international repute for the bank.
%ending focus must be on pri,ate sector instead of public sector.
S"0 sector must be gi,en priority in all financial matters.
Institutionali9ation of Duman esource "anagement 3best man should be posted to best
assignment$ refreshing courses$ seminar on emerging banking and customer ser,ices.
@
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esearch and e,elopment facilities 3omestic market research$ economic analysis$
strategic insight of ma;or economic and financial accords$ international markets
knowledge$ rigorous planning and de,elopment$ loss L pre,ention mechanism8
There should be central compliant cell in ")( in order to reduce people complaints and
foster the ratios of producti,ity.
Scope of In,estment (anking is ,ery much high now in economy. )oncrete efforts
should be made to initiate in,estment/banking operations.
@=
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Internship $5ti.ities
$% Auto&s Pa O'(% Auto&s Partial Pa o'
)% PG Pa O'*% PG Partial Pa o'+% P, Pa o'-% P, Partial Pa o'.% Re#a/ent Schedule o0 Car * U1% Dis2ursal ,etter OF Car * U3% Re#a/ent Schedule o0 P,$4%Dis2ursal ,etter OF P,$$%Fresh Insurance Polic$(%Insurance Rene5al$)%Insurance Re0und$*%Co/#laints$+%Ser"ice Related$-%Sta' Related$.%Insurance Co% Related$1%Collateral Docu/ents$3%NOC(4%E6cise 7le($%Authorit ,etter((%Handed O"er Instru/ents 8P ,9()%:isc Acti"ites(*%Auto&s Pa o' Procedure(+%Auto&s Partial Pa o' Procedure(-%PG Pa O' Procedure(.%PG Partial Pa o' Procedure(1%P, Pa o' Procedure(3%P, Partial Pa o' Procedure)4%Install/ent Re0und)$%Insurance Clai/ Che;ue 8The0tistration =oo?)1%Du#licate S#are @e)3%Pa order Deli"er Status*4%Personal ,oan Case status*$%O#enin> o0 Ne5 ISI Ae*)%Collateral Docu/ents re/inders collections**%Insurance Rene5al /ent o0 Docu/ents o0 PG*-%,ist o0 docu/ent < le>al docu/ents o0 PG
@@
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*.%ron> Deductions < ron> :a##in> a0ter Paid o'*1%Re"ised Schedule not recei"ed*3%A##lication Status+$%A1(%:NTD =loc? Re/o"al1)%Credit Card Clearance ,etter< NOC1*%Credit Card Related Co/#laints1+%Insurance Related Co/#laints1-%Acti"ation < Deacti"ation o0 S:S < Insurance1.%Acti"ation < Deacti"ation o0 Auto De2it 0acilit
@?
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Con5lusion8
The banking system and particularly ")( as a whole$ remains healthy despite the economy
going through a period of economic difficulty. ")( absorbed the build/up of non/performing
loans in the system while maintaining profitability and robust balance sheets. "uch of the credit
for this must go to the S(4 for the policies it has pursued o,er the last decade to ensure that
banks are ade6uately capitali9ed and adhere to prudent risk management.
The ob;ecti,es were targeted towards customers$ impro,ed management policies$ strong policy
framework$ impro,ed go,ernance structure$ strategic in,estment initiati,es and implementation
of cost effecti,e measure across bank. The group structure of the bank indi,idually worked hard
in achie,ing the milestones under continuous monitoring and super,ision of the senior
management and (oard.
The bank displayed e1traordinary results in both financial and non/financial terms. 5ith the
banking industry reco,ering at a steady pace since the E++? crisis$ ")( ensured a,ailing all
possible positi,e opportunities and deli,ered substantial profits ensuring sound asset growth
'inancial year E++> ")( stood up to the challenges and produced significant increases in ma;or
areas of its business while maintaining higher profitability$ stronger asset base with
corresponding increase in e6uity. The sector also made positi,e reco,eries while heading towards
its actual position prior to E++? and E++F financial market crisis.
I found out that this a good bank as its working$ management is concerned. 'irst of all
the reason is that there is no directi,e style in the management of ")( and which shows that
there is decentrali9ation in the (ank and e,ery branch manager can take decision according to
the situation.
@F
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")( is pro,iding their customers with wide range of ser,ices including online banking$ ,irtual
banking and some of their new products in the pipelineA include T" network etc. shows that
")( (ank is taking good care of their customers. ")( (ank made hea,y in,estments$ towards
enhancing its capabilities in the area of automation and technology. ")( is well positioned to
meet client needs$ with impro,ed competiti,e ad,antage.
'rom the financial statement analysis and its comparison with other banks I found that it is
somewhat better than others$ and from the analysis of pre,ious year I concluded that it is
impro,ing and it is earning more profits as compare than the pre,ious year. So I can say that
")( (ank is performing ,ery well.