University Of Agriculture Faislabad

Sub-campus Burewala-Vehari

Internship Report
MCB Bank
Eid Gah, Bahawalpur Branch

A REPORT SUBMITTED TO THE COORDINATOR OF BBA AGRIBUSINESS

INTERNSHIP PROGRAM, UNIVERSITY OF AGRICULTURE FAISLABAD SUB-
CAMPUS BUREWALA, VEHARI, IN THE PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF BACHELORS IN BUSINESS
ADMINISTRATION (4 YEARS)

Submitted By:
2020-ag-6927

Ghulam Abbas Alamdar

2020-2024

Page 1 of 55
 University of Agriculture Faislabad
Sub-campus Burewala, Vehari

LETTER OF UNDERTAKING

This internship report was submitted by Ghulam Abbas Alamdar S/o/D/o.

Muhammad Shakir Hussain .Reg No: 2020-ag-6927 for the partial fulfillment of the

requirements for the degree.

BBA (4 years)

Session (2020-2024)

With specialization in

BBA Agribusiness

And is hereby accepted by the evaluation committee.

Internship Supervisor ________________________

Page 2 of 55
 ACKNOWLEDGEMENT
First of all I thank my almighty ALLAH. Who give me knowledge and strength and able me to
do my BBA Agribusiness.
When I prepared my internship report during the preparation of my internship report I face so
many hurdles and then there is few many people which they help me throughout the internship
preparation and course .
First of all I shall be very thankful of my parents because all the time they encourage me
throughout the course and giving me hope and faintness.
After that I shall be very thankful of the manager of MCB (Ltd). And all the staff of MCB (Ltd).
Branch they help me throughout the internship course.

Page 3 of 55
 EXECUTIVE SUMMARY
MCB Bank Limited (Muslim Commercial Bank Limited) has a very solid foundation over 50
years in Pakistan. It has a network of over 1000 branches and above 850 braches are online
branches .MCB has over 350 ATMs in 41 cities nationwide and also has a network over 12
banks on the MNET switch. During my internship I worked in HR Dep, and I successfully
complete all the tasks that were assign to me. They also permit me to take a look on working of
following departments
 Account Opening Department
 Clearing Department
 Remittance Department
This report is an upshot of my six weeks internship in Muslim Commercial Bank of Pakistan.
MCB of Pakistan possesses an imperative and historical importance in the banking sector of
Pakistan. It always remains the center of hustles in business activities. It always endows with
great covenant of rally round in terms of funds and services at all epochs of its dynamism.
The main purpose of internship is to learn, by working in practical environment and to apply the
knowledge acquired, during the studies, in a real world scenario in order to tackle the problems.
In this report the detailed analysis of the organization has been done and all the financial,
technical, managerial and strategic aspects have been evaluated to analyze the current position
of the organization. Along with it, the background analysis, the prevailing competition analysis,
the business process analysis, and the internal environment and external environment of the
organization have been discussed and the recommendations & suggestions for the improvement
have been made wherever required. During my six weeks internship program, I learned about
different function performed in the bank and I work at all the department of the bank I learned
who to maintained the record and the document of the bank and all the activity.
Duration of my internship six week in a MCB bank (Ltd) branch Eid Gah, Bahawalpur.Where I
learned the detail work of the different department I work in the various department but I
explain those department in which I got full command during my learning process . The
functions which I performed are mentioned as under.

Page 4 of 55
 In my first two weeks I worked in the account opening departments. It is important
department of the bank because all the working of the bank base on account and the bank
account shows the deposit of the bank if any person working with the bank or the organization.
During my internship I spent my 3rd week in the cash department and cash department is
totally deals with the cash whether the cash comes in the bank or out from the bank during the
learning in the cash department I learn the all the activities which is perform in the cash
department .
My 4th week during my internship in the credit department. The credit department
works with maintain the loan and credit and also issue the credit after necessary verification and
the security and the guarantee to the desire limit.My 5th week is all about the clearing
department. I learned the work and the function which is performed in the clearing department. I
learn that clearing is the process in which bankers settle there mutual accounts by the claiming
the arising account of various instruments presented by one bank drawn on the other banks in a
same city or the out side the city through NIFT (National Institutional Facilitation
Technologies). NIFT is the department of collection of clearing cheque of each branch, these
plays middlemen of the bank and client.My last week is about working in the remittances
department. It is very important department in the current scenario in this department the bank
deals with transfer money and different type of fund and also receive fund from abroad form the
Pakistani community and others as well which is called remittances. At the end of this report
there is the ratio analysis of past 3 years. And also the SWOT analysis of this branch which
explained the strengths, weaknesses opportunities and threats of this bank.

Page 5 of 55
 Table of Content

Details.
1. Title Page
2. Letter of Undertaken
3. Scanned Copy of Internship Certificate
4. Dedication
5. Acknowledgement
6. Executive Summary
7. Table of Contents
8. Introduction of the Industry
9. Over View of the Organization
10. a. Brief History, Mission and Vision
11. b. Introduction of Organization
12. c. Policy of Organization
13. d. Product Line
14. e. Competitor
15. f. Business Volume
16. Organizational Structure

a. Organizational Hierarchy Chart

b. Main Offices
c. Brief Introduction of all departments
d. Comment on Organizational structure

17. Plan of my Internship program

18. Training Program
19. Ratio analysis
20. Structure Of HR department
21. Marketing Functions
22. Critical Analysis
23. SWOT Analysis

24. Conclusion
Page 6 of 55
 25. Recommendation

26. References and Sources

27. Annexes

The Industry I have chosen is banking industry. The banking sector is the lifeline of any modern
economy. It is one of the important financial pillars of the financial sector, which plays a vital
role in the functioning of an economy. They play an important role in the mobilization of
deposits and disbursement of credit to various sectors of the economy.
The Muslim Commercial Bank Limited was incorporated on 9th July 1947 in Calcutta in Bengal.
After partition, the Registered Office of the bank was shifted to Dhaka where it commenced
business from August 1948. The Bank transferred its registered/Head office from Dhaka to
Karachi in 1956. In 1999, its registered / Head office was transferred to Islamabad and Karachi
office was named as principal office. The government transferred a 26% management stake to a
group of leading industrialists, collectively named National Group of which Mian Mohammad
Mansha is the Major stakeholder. In 1992 a further 24% was sold to the National Group. The
current shareholding structure is 50% National Group, 25% government and 25% floated on
bourses.

Over the years Muslim Commercial bank fostered strong bonds with its customers. MCB
understands them; their needs. They feel comfortable with MCB; it’s their bank; it responds to
them; listens to them; partners with them; grows with them. That is why it is one of the leading
commercial banks of the country, providing a wide range of modem banking services. At
present, the banking network consists of over 1000 branches along with – controlling offices
known as Area Head offices and Regional Head offices. These controlling offices are
responsible for the smooth operation of the bank on National & international levels. The entire
financial and operational objectives are achieved with the Human Resources strength over
12000 employees. The bank is known as the major credit provider, best place of working and
paymaster in the financial (money market) of the country. Over the past few years, MCB's
profits have been hit by the need to increase provisions coverage and restructuring costs

Page 7 of 55
associated with the downsizing of the workforce and branch network, whilst there is some need
to boost provisions, these charges (necessary to bring the bank back into shape) are largely over.
It has also slowly received permission from the SBP to shut down a number of unprofitable
branches.
In 1999 EURO MONEY recognized MCB as the best domestic bank in Pakistan.
Corporate Banking Group of MCB is focusing on top tier local corporate groups and
multinationals in a structured and focused manner building relationships leading to increased
market share.
Branches having Advances of Rs.100, 000,000 per party relationship and monitoring such
advances are called as Corporate Branches. These branches include corporate clients and their
requirements are looked after. There are about 20 corporate branches of MCB in Pakistan.

a. BRIEF HISTORY
MCB bank is the one of the leading bank of the Pakistan MCB have the experience over
50 year in Pakistan and the hard work which make it leading organization in the present
scenario .MCB is not make the overnight success story but behind the success of the MCB is the
hardworking and the full dedication .
The history of MCB can be divided into four main Phases:

 Development Phase

 Nationalization Phase

 Privatization Phase

 Present position of MCB Bank

DEVLOPMENT PHASE:

MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the

Indian Companies Act, VII of 1913 as a limited company. The bank was established with a
Page 8 of 55
view to provide banking facilities to the business community of the South Asia. After the

partition of the Indo-Pak subcontinent, the bank moved to Dhaka (then the capital of former

East Pakistan) from where it commenced business in August 1948. In 1956, the bank transferred

its registered office to Karachi, Where the head office is presently located. Thus, the bank

inherits a 64 years legacy of trust of its customers and the citizens of Pakistan. MCB Bank is not

an overnight success story. It started with a share capital of Rs 30 million which is divided into

3 million ordinary shares of RS 10 each.

NATIONALIZATION PHASE:

The 1960s decade is stated as the golden era in Pakistan’s economic and

financial development. The banking sector also registered noticeable growth during that period

and lent a strong helping hand to the government to achieve rapid economic growth of the

country. But in early 1970s this scenario changed altogether. The separation of East Pakistan

(now Bangladesh) and induction of the government led by Zulfiqar Ali Bhutto were the most

significant events of early 70s having far reaching effects on the banking system.

In the wake of rapidly changing conditions of the country, the government decided to
nationalize all the commercial banks so that the nation as a whole can benefit from a better use
of resources. Consequently, the Muslim Commercial Bank was nationalized under the Banks
(Nationalization) Act, 1974 promulgated on January 1, 1974. In the banking sector, the then
government decided to retain only five major banks by merging all the smaller banks with the
large ones. As a result of this policy, the Premier Bank was merged into Muslim Commercial
Bank in 1974.
PRIVITIZATION PHASE:
This was the first bank to be privatized in 1991 and the bank was purchased by a
consortium of Pakistani corporate groups led by Nishat Group. The banks after nationalization
came under political and bureaucratic control and deviated from normal banking practices.
Some of their senior executives were tempted to nurture a culture of obliging big businessmen,
Page 9 of 55
feudal and political influential. They sacrificed their personal integrity and interest of banking
sector for gaining promotion and accumulating personal wealth. That is how banking sector
started losing its upright and professional institutional image from mid-80s and its downward
slide started which touched new low during 1990s. The then PML government also became
conscious of the falling standard of the banking sector and decided to privatize all the
commercial banks.
In the wake of above amendments, 26% shares valuing Rs. 149.8 million of the Muslim
Commercial Bank, held by the State Bank of Pakistan were sold and the Bank’s management
was transferred to the purchasers of these 26% shares. Mian Mohammad Mansha is the
Chairman of the MCB and has played instrumental role in its succe

Vision
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future.

Mission
We are a team of committed professionals, providing innovative and efficient financial
solutions to create and nurture long-term relationships with our customers. In doing so, we
ensure that our shareholders can invest with confidence in us.

b. INTRODUCTION OF THE ORGANIZATION

MCB Bank Limited , with more than 60 years of experience as one of the leading bank
of the Pakistan, was incorporated on July 9 in 1947 .the MCB bank was ranked very high and
make remarkable progress by deploying quality banking, technology development, professional
and the leading management and prudent an ethical work methodologies. MCB was
nationalized along with other private banks in 1974 as part of government of Pakistan’s
economic reform movement and was later privatized to Nishat Group lead consortium in 1991.
CORPORATE OBJECTIVES

 Delivering remarkable returns to stakeholders, sustainable performance, exceeding

market and shareholder expectations

Page 10 of 55
  Providing value added services through operational expansion, geography and upgraded
system

 Building a corporate culture of equality, trust and team spirit as we remain dedicated to
being a socially responsible organization.

MCB Bank Limited ('the Bank') is a banking company incorporated in Pakistan and is
engaged in commercial banking and related services. The Bank's ordinary shares are listed on
all the stock exchanges in Pakistan whereas its Global Depositary Receipts (GDRs) are traded
on the International Order Book (IOB) system of the London Stock Exchange. The Bank's
Registered Office and Principal Office are situated at MCB -15 Main Gulberg, Lahore. The
Bank operates 1,374 branches including 11 foreign branches .and 1 EPZ branch
For effective handling of branches it has been categorized into three segments. These
categories are:
1. CORPORATE BANKING:

These are the branches, which have an exposure of over Rs. 100 million. Corporate
clientele includes public sector companies as well as large local and multinational concerns.
MCB is also catering to the growing middle class by providing new asset and liability
products. Main products of MCB regarding Corporate Banking are:
 Cash Management
 Working Capital Loans
 Term Loans
 Trade Finance Services
 Investment Banking

2. COMMERCIAL BANKING:

Page 11 of 55
 These are the branches, which have a credit exposure of 20 million to Rs 100 million
excluding staff loans. Usually branches in large markets and commercial areas come under
this category. Products offered under commercial banking are:
 Deposit Accounts
 Loan Products
 Master Card
 Rupee Travelers Cheque (RTC)
 Remit Express

3. CONSUMER BANKING:

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

c.COMPETITORS

The banking sector in Pakistan making very fast growth and there is many close competitor
of MCB bank of Pakistan

 United Bank Ltd.

 NIB Bank Ltd.
 HBL Bank Ltd.
 ABL Bank Ltd.
 Soneri Bank Ltd.
 Bank Islami
 Bank Al-Falah Ltd.
 Faysal Bank Ltd.
 Standard Charted Bank
 Meezan Bank Ltd.
 KASB Bank Ltd.ssssssssss
 Bank of Punjab

Page 12 of 55
 d.BUSINESS VOLUME

Three year business volume of MCB Bank Limited

Details 2016 2017 2018

Total Assets 443,615,904 509,223,727 567,552,613

Deposits 330,181,624 367,604,711 431,371,937

Advances-net 262,135,470 253,249,407 254,551,589

Investments-net 96,631,874 167,134,465 213,060,882

Shareholder’s Equity 52,244,865 61,075,932 488,348,404

Profit before Taxation 21,867,566 23,154,945 26,253,075

Profit after Taxation 15,374,600 15,495,297 16,873,175

Earning per Share (Rs.) 22.25 20.38 22.20

d.PRODUCT LINE
MCB bank of Pakistan deals in all the schemes and the services of a bank in a current
scenario there are many sets of financial infrastructure with which the MCB bank is leading in
providing the services to its customers.
Consumer banking

Page 13 of 55
 The consumer portfolio, comprising the debit card, credit cards, auto loans, personal
loans and mortgages will be established phase by phase. However, we are confident that our
strengths, together with our largest network of online branches, a superior technology platform,
a big customer base and the Consumer Personal Banking Group (CPBG), will take the Bank’s
profitability to new heights.
Commercial banking
The MCB is also doing the commercial banking and it’s leading in this department
MCB offers retail product to its consumers. The MCB main focus to introduce the various
financing and investing products to its valuable clients, and contributes the steady growth to the
financial industry. The commercial and the retail banking offers the verity of asset and
liability –based.
The MCB bank introduce different type of product and instruments which is mentioned below

1.Islamic banking

2.Deposit Product

 Saving 365 gold

 Saving extra
 Smart dollar account
 Saving account
 Current account
 Current life account
 Foreign currency account

3.Investment Products

Page 14 of 55
  Dynamic cash account
 Dynamic allocation fund
 Dynamic stock fund

4.Loans

 Auto loan
 Credit Cards
 Visa Debit card
 MCB visa platinum
 MCB visa
.

Page 15 of 55
10.ORGANIZATIONAL STRUCTURE
a.Organization Hierarchy Chart
General Manager

Regional Manager

Branch Manager

Branch Credit Committee Internal Auditor

Credit Department Customer Service Department General Banking

Account Opening
Department

Cash Deposit
Department

Foreign Exchange
Department

Bills Remittances
Department

Page 16 of 55 Clearing
Department
 b.NUMBER OF EMPLOYEES

There are different departments working in this branch. The system of the branch is centralized
and controlled by the Circle Office Bahawalpur. It is hoped that soon this branch will be made
decentralized so that the working can be made more efficient and fast.
There are seven employees working in this branch. Their designation are as followed:

Designation
Branch Manager
Branch Operation Manager
Supervisor
General Banking Officer
General Banking Officer
Chief Teller
Teller

c.MAIN OFFICES
Registered Office MCB Building, F-6/G-6, Jinnah Avenue, Islamabad.
Principal Office MCB 15 Main Gulberg, Lahore.
UAN: (042) 111-000-111 PABX: (042) 36041998-9
Website: www.mcb.com.pk Email: [email protected]

Shares Registrar M/s. THK Associates (Pvt.) Ltd., State Life Building No.3,
Dr. Ziauddin Ahmed Road, Karachi

Corporate Office MCB House, Jail Road, Lahore

d.Brief introduction of all the departments

Page 17 of 55
There is brief introduction of all the departments of the MCB bank

a. Business development department

The business department promotes or selling the product to the customers, products like
ATM account opening forms etc .this department work as set the target strategies according the
current circumstances this department work with the three strategic objectives.
 customer satisfaction
 employee satisfaction
 Business results.

b. Cash management department

in this department the teller are the casher person receive the deposited and the give the
cash to the account holder on their demand and also maintained the online etc. in cash
department there is three type of sector .
Token issuance
 Cash receipt
 Cash payments
 Bill receive or fees received
 Etc.
c. Account opening department
The account opening department is the department which deals with the account opening
open of new account or the verifying the account this department is necessary as par the order of
the state bank of Pakistan in this department I come to know how to open the account by filling
the account opening form and also attached the NIC card copy and it is verify by the NADRA

d. Credit department
In this department the bank granted the loan to the customer and there are the different
type of the credit which is provided to its customer during my internship I learned that if some
individual request for the loan then bank granted him a loan according to limit and some
requirement for different kind of loan for example if the organization request for the loan then

Page 18 of 55
bank granted the loan according to some requirement and limits which apply on the
organization.

e. Dispatch department
Dispatch department is the very important sector in the bank because all inward and
outward mails in which ordinary and sensitive as well, routed or transfer to this department as
the mail in the branches consists of documents covering title to goods, cheques, inter branch Dr.
Cr. advices, letter of credit in international banking apart from other routine letters. So it is
important to handle dispatch carefully and make sure there is not wrong delivery.

f. Clearing department
There are two type of clearing in the bank and during my internship me doing both type
of the clearing.
 Inward clearing
 Outward clearing

g. Account department
This is important department in which the account are maintained and also the voucher
and the books and the all the expenses or expenditure of the bank are maintained so it is the
most important department of the bank maintain all the account of the bank is the duty of this
department and this department is working well.

h. Finance department
Financing department is the important department because bank finance in various ways
like advancing the loan and make the profit as a excess amount in the way of interest the MCB
finance in such a way giving the loan to the customer and also buy the share of the private
organization also finance in the agriculture sector and the private sector as well.

Page 19 of 55
 e.COMMENT ON THE ORGANIZATIONAL STRUCTURE

The success of the organization is based on organizational structure the MCB

organizational structure is very smooth and efficient .for the convenience of work the work is
divided to department according to the type of the work and no bank or organization can be run
if their employee not doing their assign work or duties the during my internship in the bank I
observed that at the department doing their assign duties and there is no discrepancy between
the bottom line employees and the top level management .all the communication between the
employees and the department is efficient whither it is horizontal or vertical
communication .there is a harmony among the horizontal and vertical line of
management .every employee know his duty and authority for doing the retain job I like the
structure of the bank due to it clear and who reports whom transparency method.
In my opinion that MCB bank of Pakistan doing the clear ,transparent and the exceptional work
which make the MCB bank (Ltd) a leading bank in the banking sector of the Pakistan.

11.PLAN OF MY INTERNSHIP PROGRAM

a. A brief introduction of the branch where I did my internship

Thank fully I did my internship from MCB bank (Ltd) Eid Gah,Bahawalpur
Branch. This Branch is online branch so I leaned that the working of the management is
very smooth and the efficient.

In this branch I observed that this branch doing a great business and the
management and the staff of the branch is efficient and the professional and the manage
handle all the working of the branch and this branch have the very good contact and the
relation with the shops business entities and the other sound parties as well to increase the
deposit of the branch and maintain the efficiency of the work and enhance the
organization.The manager guided to the different functions operating with in the
organization and the sub manager makes sure and takes the responsibility that staff doing
work efficiently in the entire department.

Page 20 of 55
 And also the branch is well maintained and decorated and the entire department have
separate place with in the organization to doing there assign duties and the environment of
the organization attract the customer as well which is good for the organization.

b. Starting and the ending dates of my internship

Starting and the ending dates of my internship program in the MCB bank (Ltd) in Eig
Gah branch is

Starting Date: August 18, 2023

Ending Date: September 28, 2023

c. Names of the departments in which I got training and the duration of my training
During my internship I work almost in the all department and my internship duration
is 6 week I learnt the working of the following department
 Cash department
 Credit department
 Clearing department
 Remittances department
During my internship training in the MCB, I worked in different departments and seats and
learnt the followings:
Filling Of Cheques & Deposit Slips
Account Maintenance Dept
Procedure Of Opening Of An Account:
Issuance Of Cheque Book
Clearing Department
a. Account opening department

In my first two weeks I worked in the account opening departments. It is important

department of the bank because all the working of the bank base on account and the bank
account shows the deposit of the bank if any person working with the bank or the organization.

Page 21 of 55
b. Cash department

During my internship I spent my 3rd week in the cash department and cash department is
totally deals with the cash whether the cash comes in the bank or out from the bank during the
learning in the cash department I learn the all the activities which is perform in the cash
department.

c. Credit department

My 4th week during my internship in the credit department the credit department is the
one of the most important department of the bank. The credit department is works with maintain
the loan and credit and also issue the credit after necessary verification and the security and the
guarantee to the desire limit and there is the rule and the regulation to issue the credit and loan
to the customers.
d. Cleaning department

My 5th week is all about the clearing department. I learned the work and the function
which is performed in the clearing department. This department the important department of the
bank
I learn that clearing is the process in which bankers settle there mutual accounts by the claiming
the arising account of various instruments presented by one bank drawn on the other banks in a
same city or the out side the city through NIFT (National Institutional Facilitation
Technologies). NIFT is the department of collection of clearing cheques of each branch, these
plays middlemen of the bank and client.
The type of the clearing is as under
o Inward clearing/ Local clearing
o Outward clearing/ Intercity clearing
e. Remittances Department
My last week is about working in the remittances department. It is very important
department in the current scenario in this department the bank deals with transfer money and

Page 22 of 55
different type of fund and also receive fund from abroad form the Pakistani community and
others as well which is called remittances
The MCB bank transfer different type of fund through the different services.

TRAINING PROGRAM
I joined Muslim Commercial Bank,. First day I reached there at 9’O clock and reported to
manager who introduced me about the functioning of the branch and its staff. During these two
months I worked in different sections of the branch to learn the maximum practices of banking
system.
GENERAL BANKING

First of all, I was asked to work in different sections of General Banking. Here I was attached
Mr. Akhtar who has good command on this section. Here we deal with new customers who
wanted to get information about the branch and will to deal with the branch. This is a very
interesting department because here we met people of different types and deal with them
accordingly.
The document which is used in the opening a new account is as under

1. Account opening form

2. The name of person who request for opening the new account
3. The type of the account

Page 23 of 55
 4. Computerized Copy of national identification card
5. Check the expiry date
6. Filled the opening form
7. Signature of the person
8. SS Card (Specimen Signature Card)
9. Mother name
10. Father name
11. Present address

CHEQUE AND CASH AT COUNTER.

A cheque is presented on the counter with the two signatures of the bearer on the back of
the cheque. Operation’s manager verifies the following points:
1.The cheque number
2.Cheque Date
3.The cheque signature with the signature specimen card position in the officer signature
received at the time of opening the customer’s account in the presence of the officer
4.Cheque amount in figure and words
5.Branch stamp in the front of the cheque
6.Check the nature of cheque, bearer cheque, cross cheque etc.

CHEQUE AND CASH PAYMENT PROCEDURE.

Receiving and scrutinizing the cheque
Fixing the stamp
Scripting and receipt by the authorized officer.

In the cash department there are fore to five counters in which include

1. The issuance the token

2. Receipt counter or the cash deposit counter
3. Payment of cash and checks
4. Verification and clearance the check and account counter

Page 24 of 55
 5. Bill and fee receive counter
During my learning process I learned that first of all issue the token to the customer and then in
the receipt counter receive the cash and maintained the account and then if a customer have a
cheque k then the cheque is verifies by the verification person and then the cashier makes the
payment against the cheque and also transfer the money online and maintained the all activities
which is cashier duties i.e. give the cash to the valuable customer and the bill and the fees
receive counter receive the bill payment and the fees and maintain all the activities related to
bill and fees collection.
The activities of the cash department of MCB bank (Ltd) is as under

1. Source of cash
2. Management of cash
3. Deposits
4. Demand draft and the online maintains
5. Treatment of surplus cash
6. Treatment of the cash deficit
7. Cash transit
8. Issuance of cash
9. Security arrangements
10. Verification of cheque
11. Receive the bill and the fees collection

ISSUANCE OF DEMAND DRAFT

A demand draft is provided to the client in whom he has to specify that on which bank it
is drawn. The amount both in words and figures is written on the demand draft.

BILLS COLLECTIONS DEPARTMENT

I spent second week of my training in bills collection department. Here we collected utility bills
like electricity bill.

Page 25 of 55
BILLS REMITTANCE DEPARTMENT.

It is most important and interesting department. This section deals with the transfer of money
from one branch to another branch. Nearly six drafts issued daily from this department.
Here I know the amount transferred and what is the procedure. This department also deals with
T.T. transfer of money. I worked nearly three weeks in this department.

DEPOSIT DEPARTMENT.

Deposit department deals with current, saving fixed accounts for a long period.
In current account the bank does not offer any interest you can deposit or withdraw any amount
during banking hours. In PLS account we can only withdraw up to Rs. 25OOO/ without notice
if you want to withdraw more than a notification must he given to the bank. In Fixed account
people normally of old age are more interested because they get a lump sum amount every
month as a markup or interest. These accounts are normally for two to five years.

CLEARING DEPARTMENT.

In clearing department we deal with cheques of our clients drawn on different banks.
Here I also watched the working of clearing house up to 12.00 pm all the branches send their
cheques to main branch. Where they stored and presented in the State Bank of Pakistan. My 5th
week is all about the clearing department. I learned the work and the function which is
performed in the clearing department. This department the important department of the bank
I have learnt that clearing is the process in which bankers settle there mutual accounts by the
claiming the arising account of various instruments presented by one bank drawn on the other
banks in a same city or the out side the city through NIFT (National Institutional Facilitation
Technologies). NIFT is the department of collection of clearing cheques of each branch, these
plays middlemen of the bank and client.

There are two types of clearing going in the bank Inward clearing and the Outward clearing .we
can say that the clearing is clear those cheque which cannot be cash at the cash counter of the
bank . the representative of the respective bank collect all the cheque and the instrument which

Page 26 of 55
drawn on there and settle the account and doing the clearing function this assembly of the
representative of the bank is called Clearing house NIFT perform the clearing on the behalf of
the commercial banks in all the cities through out the country.
The type of the clearing is as under
 Inward clearing/ Local clearing
 Outward clearing/ Intercity clearing
Inward clearing
The instrument and the settlement or the claim by the other banks or the other branches of
MCB on our branch of MCB bank in which include the cheque draft and etc, are drawn by the
other bank customer or by the MCB bank branches in clearing in the inward clearing process
there is few thing include which is mentioned as under
1. Cross stamp on the face
2. Clearing stamp on the front and the back
3. The clearing stamp bearing the date of the next working day
4. Payees account is credited and the stamp on the cheque and signature of the operational
manager
5. And before entering the cheque into the computer the stamp and the signature is to be
verified and the cheque is posted and drafted.
Outward clearing
I learnt about outward clearing in MCB bank clearing department. out ward clearing is
that the settle of claims of our branch of MCB bank or the other branches of MCB bank drawn
of other banks or other branches of MCB bank deposited by our customer in our branches of the
bank , presented by our branch of MCB bank in out ward clearing .
When the cheques of outward clearing is received then it is entered into the clearing registered
Following detail are entered is in the both registered is as follow

1. Serial No.
2. Account no. of the depositor
3. Depositor name
4. Drawer
5. Drawee
Page 27 of 55
 6. Cheque No.
7. Amount of the cheque
8. Cross stamp on the face of the cheque
9. And the clearing stamp
10. And the stamp on the back of the check payee account will be credited
The local clearing, a bundle cover is arranged manner the branch code stamp, total amount and
number of instruments. This amount should match the one that is kept in the Clearing Register.
The cheques or the instrument with bundle cover and outline are packed in NIFT bag. Before
putting these items in the bag, a plastic seal number is required and should be written on the
bundle cover and the same seal should be used to close the NIFT bag. This is to ensure
additional safety as when the seal is opened, it is non-replaceable. If the seal number on the bag
and on the bundle cover does not match, it is a suggestion that the bag has been tamper with.
Strict action can be taken by NIFT and the Bank consequently.

MCB Agribusiness Department

As of my last knowledge update in January 2022, there was no specific information available on
an "MCB Agribusiness Department" in Pakistan. However, I can provide you with a general
overview of the agribusiness sector in Pakistan and the role financial institutions, such as MCB
(Muslim Commercial Bank), may play in supporting agricultural activities.

Title: The Role of MCB Agribusiness Department in Fostering Agricultural Development

in Pakistan

Introduction:

Agriculture is a cornerstone of Pakistan's economy, contributing significantly to the country's

GDP and providing livelihoods to a large portion of the population. In recent years, financial
institutions like MCB have recognized the importance of the agribusiness sector and have
established specialized departments to cater to the unique financial needs of the agricultural
community.

Overview of Agribusiness in Pakistan:

Pakistan's agribusiness sector is diverse, encompassing crop cultivation, livestock farming,

poultry, and fisheries. The sector faces various challenges, including water scarcity, outdated
farming practices, and a lack of modern technology adoption. Financial institutions have a

Page 28 of 55
 crucial role in addressing these challenges by providing tailored financial products and services
to farmers and agribusinesses.

MCB Agribusiness Department:

MCB, being one of the prominent banks in Pakistan, has acknowledged the significance of
agribusiness in the country's economic landscape. The establishment of an Agribusiness
Department reflects MCB's commitment to supporting and fostering agricultural development.
This department is likely to offer a range of financial products and services designed to meet the
specific requirements of farmers, agribusinesses, and other stakeholders in the agricultural value
chain.

Financial Products and Services:

The MCB Agribusiness Department is expected to provide a variety of financial products and
services to cater to the diverse needs of the agriculture sector. These may include:

.
Agri Loans: MCB may offer specialized agricultural loans for farmers to purchase seeds,
fertilizers, machinery, and other inputs. These loans could also cover crop insurance to protect
farmers from unforeseen events such as natural disasters or crop failures.
.
.
Livestock Financing: Recognizing the importance of livestock farming in Pakistan, MCB's
Agribusiness Department may provide financing options for the acquisition of livestock,
veterinary care, and modern farming practices.
.
.
Agri Leasing: The bank might offer leasing options for agricultural machinery and equipment,
allowing farmers to access the latest technology without a significant upfront investment.
.
.
Supply Chain Financing: MCB may facilitate supply chain financing to ensure a smooth flow
of funds across the agricultural value chain, benefiting both farmers and agribusinesses.
.
.
Advisory Services: The Agribusiness Department may also offer advisory services to help
farmers make informed financial decisions, adopt sustainable farming practices, and navigate
market dynamics.
.
.
Digital Solutions: In line with technological advancements, MCB may introduce digital
solutions, such as mobile banking and online platforms, to make financial transactions more
accessible and efficient for farmers in remote areas.
.

Page 29 of 55
Impact on Agricultural Development:

The establishment of an Agribusiness Department within MCB signifies a strategic approach to

contribute to the overall development of the agriculture sector in Pakistan. By providing
financial support and tailored services, MCB aims to enhance the productivity, sustainability,
and profitability of agricultural activities.

Collaboration with Government Initiatives:

MCB's Agribusiness Department may collaborate with government initiatives aimed at

promoting agricultural development. This could include participating in subsidy programs,
supporting farmers in adopting modern technologies, and contributing to the government's
efforts to achieve food security.

Challenges and Opportunities:

While MCB's Agribusiness Department presents significant opportunities for the agriculture
sector, it may also face challenges. These challenges could include addressing the credit needs
of small-scale farmers, managing risks associated with agriculture, and adapting to the dynamic
nature of the sector.

Conclusion:

The MCB Agribusiness Department represents a positive step towards aligning financial
services with the unique requirements of the agriculture sector in Pakistan. By offering a range
of financial products and services, MCB aims to play a pivotal role in driving agricultural
development, improving farmers' livelihoods, and contributing to the overall economic growth
of the country.

CRITICAL ANALYSIS
Although the Bank is performing their function very well but mostly the staff of the bank is
young. They have very less experience and low banking knowledge. The banking staff always
worries about for increasing the deposit of the bank rather than improving the bank services.The
branch is located in the competitive area that’s why customer’s output is moderate in this
branch. Every morning The Branch manager gives the Branch report to the Regional manage on

Page 30 of 55
the telephone Meeting. Which has no logic because The branch manager always worries for the
deposit. In MCB recruitment is done through Hierarchy
ON Regional basis
ON Area basis
ON Branch basis.
SOURCES OF RECRUITMENT:
In MCB Hr department is using both Recruitment methods internal and external.
For External recruitment they advertise online on websites, in newspapers.
For internal recruitment they take references from existing employees to save advertising
expense . Their strategies are very strong. They already have the list of new employes on a safe
side in case any employee is leaving the job.
SELECTION TOOLS:
The selection tools are used in MCB according to the designation. For higher posts like
relationship manager SME they prefer batch hiring and from now onward they are conducting
tests for batch hiring and then star interview The STAR method is a structured manner of
responding to a behavioral-based interview question by discussing the specific situation, task,
action, and result of the situation you are describing. Situation: Describe the situation that you
were in or the task that you needed to accomplish.. But if a sudden need of employee is faced in
the company they just do a panel interview and hire the employee. For the other two posts
phone banking officer and counter service officer they done unstructured individual interview.
ASSESSMENT CRITERIA:
For every post they rate the knowledge skills and abilities in different ratio to assess. They
follow KSAO to assess. KSAOs are the job-related Knowledges, Skills, Abilities, and Other
characteristics that an applicant must have to perform successfully in the
position. KSAOs typically fall into two major categories – technical and behavioral. They rank
everything at different percentage. This information is collected by them through application
form. Then the selected candidates are called for interview. And after interview suitable
candidates are selected.
EVALUATION:
The evaluation is done on yearly basis .Supervisors evaluate the performance of
other employees. Performance based bonuses and promotions are given to the employees.

Page 31 of 55
 ISSUES IN AGRIBUSINESS DEPARTMENT:
While the MCB (Muslim Commercial Bank) Agribusiness Department is aimed at supporting
and fostering agricultural development in Pakistan, there are several potential issues that such a
department may encounter. It's important to note that these issues are hypothetical, and specific
challenges may vary based on the strategies and policies implemented by the bank. Here are
some common issues that financial institutions often face in the agribusiness sector:

.
Credit Risks: One of the primary challenges in agribusiness is the inherent uncertainty and risk
associated with agricultural activities. Factors such as weather conditions, pests, and market
fluctuations can impact the ability of farmers to repay loans. Managing and mitigating credit
risks is crucial for the success of the Agribusiness Department.
.
.
Small-scale Farmer Accessibility: Small-scale farmers often face difficulties accessing
financial services due to factors such as lack of collateral, limited financial literacy, and remote
locations. The Agribusiness Department may need to develop tailored solutions to reach and
serve this segment effectively.
.
.
Seasonal Cash Flow Challenges: Agriculture operates on a seasonal cycle, and farmers
typically face cash flow challenges during certain periods, such as planting and harvesting
seasons. Designing financial products that accommodate these seasonal fluctuations is essential
for the sustainability of agribusiness lending.
.
.
Technology Adoption Barriers: The adoption of modern agricultural technologies can be slow
due to factors such as resistance to change, lack of awareness, and high initial costs. The
Agribusiness Department may face challenges in promoting and financing the adoption of
advanced farming practices and technology.
.
.
Market Volatility: Agricultural commodity prices can be highly volatile, impacting the income
and profitability of farmers. The Agribusiness Department must navigate these fluctuations and
design financial instruments that provide stability and risk mitigation for both the bank and the
farmers.
.
.
Infrastructure and Supply Chain Challenges: Inadequate infrastructure, including
transportation and storage facilities, can pose challenges in the smooth functioning of the
agricultural supply chain. The Agribusiness Department may need to work with stakeholders to
address these infrastructure gaps.
.
.

Page 32 of 55
 Government Policy Changes: Changes in government policies related to agriculture, subsidies,
and regulatory frameworks can impact the operations of the Agribusiness Department. Staying
adaptable and responsive to evolving policy landscapes is crucial.
.
.
Environmental and Climate Risks: Agriculture is susceptible to climate change and
environmental risks. Unpredictable weather patterns, natural disasters, and environmental
degradation can have a significant impact on crop yields and, consequently, the ability of
farmers to fulfill their financial obligations.
.
.
Lack of Financial Literacy: Many farmers may have limited financial literacy, making it
challenging for them to understand and manage financial products effectively. The Agribusiness
Department may need to invest in educational programs to enhance financial literacy among its
clients.
.
.
Competition and Market Saturation: If other financial institutions enter the agribusiness
sector or if the market becomes saturated, MCB's Agribusiness Department may face increased
competition. Differentiating products and services to maintain a competitive edge becomes
crucial in such scenarios.
.

Addressing these issues requires a comprehensive and adaptive approach from the Agribusiness
Department. Regular assessment, stakeholder collaboration, and a commitment to understanding
the unique dynamics of the agricultural sector are essential for overcoming challenges and
ensuring the sustained success of MCB's initiatives in agribusiness.

Page 33 of 55
 Ratio Analysis

1) Net Profit Margin

Formula
(Net profit after taxation / net sale) * 100

Year 2016 Year 2017 Year 2018

15374600 /40043824*100 15495297 / 51616007*100 16873175 / 54821296*100

= 38.39 % = 30.02% = 30.78 %

Graphical Presentation of Net Profit Margin

Interpretation

Net profit margin has been decreased over the year but in year 2017 and 2018 we can say that it
is relatively stable in values.

Page 34 of 55
2) Gross spread ratio
Formula
Net interest margin / mark-up earned

Year 2016 Year 2017 Year 2018

28,483,084 / 40,043,824 35,774,544/ 51,616,007 36,833,529/ 54,821,296

=0.71 times =0.69 times =0.67 times

Working
2016
Net income margin = mark-up earned – mark-up expanses
= 40043824-11560740=28483084
(profit and loss account –unconsolidated)
2017
Net income margin = mark-up earned – mark-up expanses
= 51616007-15841463=35774544
profit and loss account –unconsolidated)
2018
Net income margin = mark-up earned – mark-up expanses
= 54821296-17987767=36833529
profit and loss account –unconsolidated)

Graphical presentation of Gross Spread Ratio

Page 35 of 55
Interpretation

Gross spread ratio is decrease in every year in its value.

3) Non interest income to total income ratio
Formula
Non interest income / total income

Year 2016 Year 2017 Year 2018

30255403 / 70299277 34095108 / 85711115 39501718 / 94323014

=0.43 times =0.39 times =0.41 times

Working
2016
Total income=interest earned + non mark-up income
=40,043,824+30,255,403 =70299277
2017
Total income=interest earned + non mark-up income
=51,616,007 + 34,095,108 = 85711115

(profit and loss account unconsolidated)

2018
Total income=interest earned + non mark-up income
=54,821,296 + 39,501,718 = 94323014
( profit and loss account unconsolidated)

Graphical presentation of Non Interest Income to Total Income Ratio

Page 36 of 55
Interpretation
Non interest income to total Income ratio is decrease in 2017 and then increase in 2018 as
compared to the previous years.

4) Spread ratio
Formula
Interest earned / interest expenses

Year 2016 Year 2017 Year 2018

40,043,824 / 11,560,740 51,616,007 / 15,841,463 54,821,296 / 17,987,767

=3.46 times =3.258 times =3.047 times

Graphical presentation of Spread Ratio

Interpretation

Page 37 of 55
Spread ratio is decrease in 2017 as compare to 2016 and then increase in 2018 but there is little
difference in values.

5) Return on Assets(ROA)
Formula
(Earning before income tax / total assets) * 100

Year 2008 Year 2009 Year 2010

33,428,306 / 443,615,904 38,996,408 / 509,223,727 44,240,842 / 567,552,613

*100 *100 *100

=7.54 % =7.66 % =7.80 %

Graphical Presentation of Return on Assets

Interpretation

Return on asset is increasing over the year and it is good sign for the organization.

Page 38 of 55
6) DuPont Return on Assets
Formula
(Net income / sale) * (sale / total assets) * 100

Year 2008 Year 2009 Year 2010

(0.383944 * 0.090267) * (0.300203 * 0.101362) * (0.307785 * 0.096592) *

100 100 100

=3.47 % =3.04 % =2.97 %

Working

2008
Net income =15,374,600 (profit and loss account -unconsolidated)
Sales = 40,043,824
Total assets = 443,615,904(balance sheet)

DuPont return on assets = (Net income / sale) * (sale / total assets) * 100
= (15,374,600/40,043,824 * 40,043,824 / 443,615,904) * 100
= (0.383944 * 0.090267) * 100

2009
Net income = 15,495,297 (profit and loss account –unconsolidated)
Sales = 51,616,007
Total assets = 509,223,727 (balance sheet)

DuPont return on assets = (15,495,297/ 51,616,007 * 51,616,007 / 509,223,727) * 100

= (0.300203 * 0.101362) * 100

2010
Net income = 16,873,175 (profit and loss account unconsolidated)
Sales = 54,821,296
Total assets = 567,552,163 (balance sheet unconsolidated)

DuPont return on assets = (16,873,175 / 54,821,296 * 54,821,296 / 567,552,613) * 100

Page 39 of 55
 = (0.307785 * 0.096592) * 100

Graphical Presentation of DuPont Returns on Assets

Interpretation

DuPont return on assets has been decrease over the years. It is due to the increase in the net
income as compared to the sales times the increase in sales over the worth of assets.

7) Return on Total Equity(ROE)

Formula
(Net income / total equity) * 100

Year 2016 Year 2017 Year 2018

15,374,600/ 52,244,865 * 15,495,297/ 61,075,932 * 16,873,175/ 69,180,011 *

100 100 100

= 29.43 % =25.37% =24.39 %

Page 40 of 55
Working

2016
Net income 15,374,600 ( profit and loss account -unconsolidated)
Total equity 52,244,865 (balance sheet unconsolidated)
2017
Net income 15,495,297(2009 profit and loss account -unconsolidated)
Total equity 61,075,932(2009 balance sheet unconsolidated)
2018
Net income 16,873,175(profit and loss account -unconsolidated)
Total equity 69,180,011(balance sheet -unconsolidated)

Graphical Presentation of Total Equity

Interpretation
Return on total equity is decrease over the year this in not worthy for the organization and it is
increase by profit by saving more and more taxes.

8) Debt Ratio
Formula
Total Liabilities / Total Assets

Year 2016 Year 2017 Year 2018

385,179,850 / 443,615,904 439,483,714 / 509,223,727 488,348,404 / 567,552,613

Page 41 of 55
= 0.87 Times = 0.86 Times = 0.86 Times

Working

2016
Total liabilities 385,179,850(balance sheet -unconsolidated)
Total assets 443,615,904(balance sheet –unconsolidated)
2017
Total liabilities 439,483,714( balance sheet -unconsolidated)
Total assets 509,223,727( balance sheet –unconsolidated)
2018
Total liabilities 488,348,404(balance sheet -unconsolidated)
Total assets 567,552,613(balance sheet –unconsolidated)

Graphical Presented of Debt Ratio

Interpretation

Debit ratio has been decrease and relatively stable in 2017 and 2018.

9) Debt / Equity Ratio

Formula
Total liabilities / total share holder Equity

Year 2016 Year 2017 Year 2018

Page 42 of 55
385,179,850 / 525,244,865 439,483,714 / 61,075,932 488,348,404 / 69,180,011

=7.37 Times =7.19 times =7.06 times

Working

2016
Total liabilities 385,179,850
Total shareholders equity 52,244,865 ( balance sheet –unconsolidated)
2017
Total liabilities 439,483,714
Total shareholders equity 61,075,932 ( balance sheet –unconsolidated)
2018
Total liabilities 488,348,404
Total shareholders equity 69,180,011( balance sheet –unconsolidated)

Graphical Presentation of Debt / Equity Ratio

Interpretation

Debt/ equity ratio has been decrease over the years.

10) Times Interest Earned

Formula
Earning before Income Tax (EBIT) / Interest Expenses

Year 2016 Year 2017 Year 2018

Page 43 of 55
33,428,306 / 11,560,740 38,996,408 / 15,841,463 44,240,842 / 17,987,767

=2.89 times =2.46 times =2.46 times

Working
2016
EBIT = profit before tax + interest expenses
=21867566 + 11560740
=33428306
Interest expenses =11,560,740
( profit and loss account –unconsolidated)
2017
EBIT = profit before tax + interest expenses
=23,154,945 + 15,841,463
=38,996,408
Interest expenses =15,841,463
(profit and loss account -unconsolidated)
2018
2010- EBIT = profit before tax + interest expenses
=26,253,075 + 17,987,767
=44,240,842
Interest expense = 17,987,767
( profit and loss account –unconsolidated)

Graphical Presentation of Time Interest Earned Ratio

Interpretation

Time interest has decrease first and then it is stable for the next 2017 and 2018 years.

11) Advance /deposit ratio

Page 44 of 55
Formula
Advance / deposit

Year 2016 Year 2017 Year 2018

262,135,470/330,181,624 253,294,407/367,604,711 254,551,589/431,371,937

=0.79 times =0.69 times =0.59 times

Graphical presentation of Advance to Deposit Ratio

Interpretation

Advance to deposit ratio is decrease over the period and it is good sigh for the organization.

12) Operating cash flow ratio

Formula
Operating cash flow / current liabilities

Year 2016 Year 2017 Year 2018

20,315,38/384742713 78,148,082/436286971 58,701,161/483414386

=0.0052 times =0.179 times =0.121 times

Page 45 of 55
Working
2016
Current liabilities = bill payable + borrowing + deposit +other liabilities
=10,551,468+22,663,840+330,181,624+21,345,781
=384742713 ( balance sheet–unconsolidated)

2017
Current liabilities = bill payable + borrowing + deposit +other liabilities
=8,201,090+44,662,088+367,604,711+15,819,082
=436286971 (balance sheet –unconsolidated)
2018
Current liabilities = bill payable + borrowing + deposit +other liabilities
=10265537+25684593+431371937+16092319
=483414386 (balance sheet –unconsolidated)

Graphical presentation of Operating Cash Flow Ratio

Operating Cash Flow Ratio

0.18
0.16
0.14
0.12
0.1 Operating Cash Flow
0.08 Ratio
0.06
0.04
0.02
0
1 2 3

Interpretation

Operating cash flow ratio first increase this is not worthy for the organization and in year 2018
it is decrease again which is good sign.

13) Dividend Per share

Formula
Total dividend / no. of outstanding shares

Page 46 of 55
 Year 2016 Year 2017 Year 2018

98,341,75/628276.8 67 355,10 / 691104.5 85,675,47 / 760215

=15.65 Rs. =9.75 Rs. =11.27 Rs.

Working
2016
Dividend paid = 9834175(cash flow –unconsolidated)
No. of outstanding shares = 6282768/10=628276.8
2017
Dividend paid = 6735510(cash flow –unconsolidated)
No. of outstanding shares = 6911045/10=691104.5
2018
Dividend paid = 8567574(cash flow –unconsolidated)
No. of outstanding shares = 7602150/10=760215
Graphical Presentation of Dividend per Share

Interpretation
Dividend per share of the company is fluctuation over the years. It depend upon the company’s
policy how much dividend it likes to share with its share holder.
14) Earning per share
Formula
Net income / number of outstanding

Year 2016 Year 2017 Year 2018

Page 47 of 55
15,374,600 / 628276.8 15,495,297 / 691104.5 16,873,175 / 760215

=24.47 Rs. =22.42 Rs. =22.19 Rs.

Working

2016
Net income = 15374600
Number of shares outstanding = 6282786 / 10 = 628276.8
2017
Net income =15,495,297
Number of shares outstanding = 6911045 / 10 = 691104.5
2018
Net income = 16873175
Number of shares outstanding = 7602150 / 10 = 760215

Graphical Presentation of Earning Per Share

Interpretation
Earning per share has decreased over the years; it is need to be increasing it by increasing the
net income.

15) Price / Earning Ratio

Formula
Market value per share / earning per share

Year 2016 Year 2017 Year 2018

Page 48 of 55
125.81 / 24.471061 219.68 / 22.421062 228.54 /22.195267

=5.14 Rs. =9.79 Rs. =10.29 Rs.

Working

2016
Market value per share = 125.81
Net income = 15,374,600
No of out standing shares = 6282786 / 10
= 628276.8
Earning per share = 15,376,600 / 628276.8
= 24.471061

2017
Market value per share = 219.68
Net income = 15,495,297
No of out standing shares = 6911045 / 10
= 691104.5
Earning per share = 15,495,297 / 691104.5
= 22.421062

2018
Market value per share = 228.54
Net income = 16,873,175
No of out standing shares =7602150 / 10
=760215
Earning per share = 16,873,175 / 760215
= 22.195267

Graphical Presentation of Price / Earning Ratio

Page 49 of 55
 Interpretation
Price earning ratio of the company has been increase over the years. It is good sign for the
organization.

SWOT ANALYSIS

STRENGTHS

 MCB is Successive and Market oriented.

 MCB investing huge sums on AGRIBUSINESS development and training.
 Customer default rate is lower as compared to other banks.
 MCB has the largest ATM network in the country.
 Meeting the challenges of latest Technology by introducing Smart card remit express,
mobile banking etc.
 One of the major strengths of MCB is that it has very stable deposit base.
 MCB is largest private bank in Pakistan with around 1000 branches, which cover almost
every part of Pakistan.
 The bank enjoys competitive advantage over other banks in Pakistan.
 The bank enjoys competitive profitability in the industry.

Page 50 of 55
 MCB has captured majority of potential customers in Pakistan.
 MCB has the accounts of big organizations like OGDCL, PTCL, EFU, PTC etc.

WEAKNESSES

 Low motivational level; non-aggressive marketing.

 Employees’ dissatisfaction due to ill treatment and improper reward system.
 Favoritism and Nepotism in recruitment.
 Interest rate is very meager.
 Decision making process is very slow.
 It is not having greater no. of branches abroad.
 Though ATM network is the largest in Pakistan, still some potential areas don’t have the
ATM.
 MCB RTC is useable only in Pakistan.
 Some management positrons needed are not professional.
 Although most of the branches are computerized now, still some important branches
don’t have computers.

OPPORTUNITIES:
 Leasing sector is growing in Pakistan for the last two to three years which provides
opportunity to MCB to go ahead in this area as well.
 MCB is providing Consumer Finances at comparatively lower rates which paves a way
to grab more customers
 Financing to small/medium cottage industries will definitely increase its advances and
profitability as well.
 Islamic Trading Based Banking can enhance the business of the bank.
THREATS:
 Other private commercial bank with sound profitability is also a threat to MCB e.g. UBL,
Alfalah, HBL etc.

Page 51 of 55
  For the last of many years, Pakistan is facing economic and political instability which is
a big threat.
 Afghan war and Iraq war has a deep effect on the economy of Pakistan, which may
affect MCB.
 Foreign banks are flourishing in field of consumer financing.
 Palestine and Israel war may effect the economy of Pakistan and as well as MCB.
People don’t prefer banking culture. They mostly prefer cash transactions.

CONCLUSIONS

N
ormally which we study the performance of Muslim Commercial Bank it is considered
that on the whole bank is contributing a lot towards the industrial development and
capital formation in the country. As it is exhibited from the data regarding the banks
financial performance as shown in this report that the bank is sharing major banking business of
the country. Further the policies and schemes as are introduced and carried on by the bank are
of great source of help in industrial and trading growth. All these things reflect the great and
valuable efforts on the part of executive command of the bank which is finally responsible for
the productive performance of the bank. But as it is said that nothing is perfect in this work.
This might stand true in the case of Muslim Commercial Bank also.
So far as my own observations are concerned. I have concluded a major drawback in the inner
current banking system. In addition to the I have also learnt some disciplinary wrong practices
on the part of staff of the bank branches.

NO QUALITY IN ATTITUDE.

The attitude of the bankers with all of their customers is not the same, they pay more attention
and good service to some of the customers and neglect a major portion of them. Some of the
customers approach to the bank officials and get their work done before others; it is not a good
practice.

NO PROPER GUIDANCE

There are so many customers who don’t know how to fill cheques, pay-in-slip, application form,
etc. They waste a lot of time of the bank stall.

Page 52 of 55
 RECOMMANDATIONS
PROPER PLANNING

Bank should make a plan to gear up its recovery efforts on war footing and reorganize the
recovery function of global bases. In addition, bank should tighten up control on
expenditure.

PROPER GUIDANCE.

Bank should adopt such an induction plan that when a customer opens his account with the bank
he should be supplied with a booklet which enables him to know the procedure of filing the
cheques, pay-in-slip etc. It will save a lot of time of the bank staff afterward during the conduct
of the account of that customer.

DIVISION OF WORK.

The billing system of MCB must be improved to facilitate the customers and workers. The work
should be divided among the staff e.g. collection of bills.
Countering of cash and then entry of these

CHECK OF EXPENDITURES.

Expenditure must be controlled. Which are very high and unnecessary

Page 53 of 55
 Reference and the Sources used

www.mcb.com.pk

www.google.com

www.sbp.com

http://www.mcb.com.pk/ir/fin_data_rep.asp

www.wikipedia.com

Annual report of MCB Bank

Page 54 of 55
 ANNEXES
From the MCB bank (Ltd) official website

http://www.mcb.com.pk/ir/fin_data_rep.asp

Page 55 of 55