University of Education

Township Campus, Lahore

Department of Economics and Business Administration

PROJECT REPORT
MUSLIMCOMMERCIALBANK

A REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND

BUSINESSADMINISTRATIONUNIVERSITYOFEDUCATION, TOWNSHIPCAMPUS,
LAHORE IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THEDEGREEOFBACHELOR’S IN BUSINESS ADMINISTRATION (4YEARS)

Submitted By:
BSF1704121
M. Shahab Siddique
2017-21
21 September-2021

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 University of Education
TOWNSHIP Campus, Lahore
Department of Economics and Business Administration

LETTER OF UNDERTAKING

This project report was submitted by Muhammad Shahab Siddique S/o

Muhammad Siddique Roll No. BSF1704121 for the partial fulfillment of the requirements
for the degree of:
BBA
Session (2017-2021)
With specialization in
FINANCE

And is hereby accepted by the evaluation committee.

Internship Supervisor ________________________

HOD / Coordinator ________________________

External Examiner ________________________

Principal ________________________

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 ACKNOWLEDGEMENT

In the name of ALLAH, the most kind and most merciful. First of all, I’m grateful to
ALLAHALMIGHTY, who bestowed me with health, abilities, and guidance to complete the
project in successful manner, and without HIS help I was unable to perform this task. More than
anybody else, I would like to acknowledge my report supervisor, Dr. Muhammad Naeem a
teacher of Economics and business department for his never-ending support and untiring efforts.
He was always there to guide me whenever I felt stuck off and his encouragement always worked
as morale booster form. I have found him very helpful while discussing the tricky issues in this
dissertation work.

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 EXECUTIVESUMMARY

MCB is one of the leading banks of Pakistan incorporated in 1947 MCB Bank has made
significant contributions in building and strengthening both corporate and retail banking sector in
Pakistan. 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 mainly worked
with the following departments: GENERAL BANKING, CREDIT and RMs, these departments
have been discussed in detail and all the policies and procedures have been described thoroughly.
The report covers various features of knowledge. It starts with the brief history of Bank, covers
current status, mission statement, vision statement, the bank position today .The next section of
critical analysis contain all the related information about the human resource management of
Muslim commercial bank which include all the process of job activity, task, human requirement,
skill needed in any branch. Concisely this portion provides or enhances reader viewpoint
regarding policies procedures rules and requirements of human resource management. The report
covers various features of knowledge. It starts with the brief history of Bank, covers current
status, mission statement, vision statement, the bank position today. This term report is an
essential part of the course Organizational behavior because through this, students come to know
the real difference between theory and practice, and they are also introduced to the outside
business world. An important requirement of this study program is to compile a report about the
activities of that organization in which the student has studied the organization behavior MCB
bank is doing the day and the night struggle to achieve their purposes. These control costs and

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increase efficiency and effectiveness. It introduces the innovative concept to centralized services
foreign trade branch to improve efficiency competition and reduce shipping costs. Hence the
project report on MCB is presenting true picture of this organization. In coming pages of this
project report on Muslim commercial bank (MCB) readers could be able to understand how to
write an effective internship report on MCB with in timetable. During my internship in MCB
(Muslim Commercial Bank), I worked in clearing department, Customer service office
department, Remittance department and foreign exchange department. I also learned general
banking including Term deposit receipt, Deposit at call receipt, fixed deposits, Pay orders and
Demand drafts etc. For the duration of my internship, I learned about different kinds of tasks
performed in remittance department, clearing department, customer service office department,
foreign exchange department. I also learned about the communications of bank with customers
and other banks. I also gain knowledge about documentation and keeping records of different
procedures and activities specially marketing facilities. At the end the report is done through
deep study and training in MCB bank with professional staff, the recommendation needed are
provided at the end of the report which a subsidiary branch Needed .This report will provide a
complete and clear image about Muslim Commercial Bank.
(PhPBB3, 2014)

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 Table of Contents

ACKNOWLEDGEMENT .................................................................................................................. 3
EXECUTIVESUMMARY ................................................................................................................. 4
1. INTRODUCTIONTO BANKING SECTOR ............................................................................... 12
2. OVERVIEW OF THE ORGANIZATION ................................................................................... 13
2.1 BRIEF HISTORY, VISION, AND MISSION OF THE MUSLIM COMMERCIAL BANK
13
2.1.1 VISION STATEMENT ................................................................................................... 13
2.1.2 MISSION STATEMENT ................................................................................................ 13
2.1.3 BRIEFHISTORY ............................................................................................................. 13
DEVELOPMENT PHASE ....................................................................................................... 14
NATIONALIZATION PHASE ................................................................................................ 14
PRIVATIZATION PHASE ...................................................................................................... 14
PRESENT POSITION OF MCB .............................................................................................. 15
2.2 INTRODUCTION OF MCB, ITS CORPORATE OBJECTIVES AND MARKET
STANDING ............................................................................................................................ 16
2.2.1 INTRODUCTION OF MCB ........................................................................................... 16
2.2.2 CORPORATEOBJECTIVE ............................................................................................ 16
WORKING CAPITALFINANCE ............................................................................................ 16
TERM LOANS ......................................................................................................................... 17
BANK GUARANTEES/LETTERS OF CREDIT .................................................................... 17
2.3 POLICIES OF MCB ............................................................................................................... 17
PRIVACY ................................................................................................................................. 17
THE INFORMATION WE COLLECT.................................................................................... 17
HOW WE USE INFORMATION ............................................................................................ 18
DISCLOSURE OF INFORMATION ....................................................................................... 18
MAINTENANCE OF INFORMATION .................................................................................. 18
2.4. COMPETITORS ..................................................................................................................... 18
2.5 BUSINESS VOLUME ........................................................................................................... 19

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 2.6 PRODUCTLINE OF MCB ..................................................................................................... 19
2.6.1 MCB BUSINESS ACCOUNT: ....................................................................................... 20
2.6.2 MCB 365 SAVINGS GOLD ACCOUNT: ...................................................................... 20
2.6.3 MCB SALARY CLUB ACCOUNT: .............................................................................. 20
3. ORGANIZATIONAL STRUCTURE OF MCB .......................................................................... 20
3.1 ORGANIZATIONAL HIERARCHY .................................................................................... 20
3.1.1 CHART ............................................................................................................................ 21
3.2 NUMBEROF EMPLOYEES .................................................................................................. 21
3.2.1 BOARDOFDIRECTORS ................................................................................................ 21
3.2.2 KEY MANAGEMENT ................................................................................................... 22
3.2.3 AUDIT COMMITTEE MEMBERS ................................................................................ 22
3.2.4 HUMAN RESOURCE COMMITTEE MEMBERS ....................................................... 22
3.2.5 RISK MANAGEMENT AND PORTFOLIO REVIEW COMMITTEE MEMBERS .... 22
3.2.6 BUSINESSS TRATEGY AND DEVELOPMENT COMMITTEE MEMBERS ........... 23
3.2.7 COMMITTEE ON PHYSICAL PLANNING, IT SYSTEMS AND CONTINGENCY
ARRANGEMENTS MEMBERS .................................................................................... 23
3.2.8 SBP REPORT COMPLIANCE MONITORING COMMITTEE MEMBERS ............... 23
3.2.9 CHIEF FINANCIAL OFFICER ...................................................................................... 24
3.2.10 COMPANY SECRETARY ........................................................................................ 24
3.2.11 AUDITORS ................................................................................................................ 24
3.2.12 LEGAL ADVISORS .................................................................................................. 24
3.3 MAINOFFICES ...................................................................................................................... 24
REGISTERED OFFICE ........................................................................................................... 24
SHARESREGISTRAR ............................................................................................................. 24
3.4 BRIEF INTRODUCTION OF ALL DEPARTMENT ........................................................... 24
3.4.1 REMITTANCE DEPARTMENT .................................................................................... 24
3.4.2 ACCOUNTS DEPARTMENT ........................................................................................ 25
3.4.3 CREDITDEPARTMENT ................................................................................................ 25
3.4.4 FOREIGN EXCHANGE DEPARTMENT ..................................................................... 26
3.4.5 INTERNAL CONTROL DEPARTMENT ...................................................................... 26
3.4.6 COMMERCIAL BANKING GROUP ............................................................................ 26

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 3.4.7 CONSUMER BANKING GROUP ................................................................................. 27
3.4.8 CORPORATE BANKING GROUP ................................................................................ 27
3.4.9 ISLAMIC BANKING GROUP ....................................................................................... 28
3.4.10 TREASURY AND FOREX GROUP ......................................................................... 28
3.4.11 ASSETS MANAGEMENT GROUP ......................................................................... 29
3.4.12 AUDIT & RAR GROUP ............................................................................................ 29
3.4.13 OPERATIONS GROUP ............................................................................................. 29
3.4.14 HUMAN RESOURCE GROUP ................................................................................. 29
3.4.15 BUSINESS DEVELOPMENT AND NEW INITIATIVES ...................................... 29
3.4.16 INFORMATION TECHNOLOGY GROUP ............................................................. 30
3.4.17 COMPLIANCE GROUP ............................................................................................ 30
3.4.18 RISK MANAGEMENT GROUP ............................................................................... 30
3.4.19 INVESTMENT GROUP ............................................................................................ 31
3.4.20 INTERNAL CONTROL GROUP .............................................................................. 31
3.5 COMMENTS .......................................................................................................................... 31
4. PLAN OF INTERNSHIP PROGRAM ......................................................................................... 32
4.1 BRIEF INTRODUCTION OF THE BRANCH ..................................................................... 32
FUNDED FACILITIES ............................................................................................................ 32
NON-FUNDED FACILITIES .................................................................................................. 32
5. TRAINING PROGRAM .............................................................................................................. 33
5.1.1 ACCOUNT OPENING DEPARTMENT ........................................................................ 33
5.1.2 ACT AS A CSO:.............................................................................................................. 33
5.1.3 CLEARANCE DEPARTMENT: ..................................................................................... 33
5.1.4 DEPARTMENT............................................................................................................... 34
5.1.5 LOCKER PROCESSING ................................................................................................ 35
6. STRUCTURE OF YOUR CONCERNED SPECIALIZATION DEPARTMENT ...................... 35
6.1 DEPARTMEN THIERARCHY ............................................................................................. 35
6.2 NUMBER OF EMPLOYEES WORKING UNDER FINANCE / MARKETING / HR
DEPARTMENT...................................................................................................................... 35
6.2.1 BRANCH MANAGER: .................................................................................................. 35
6.2.2 BRANCH OPERATION MANAGER ............................................................................ 36

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 6.2.3 TELLER SERVICE SUPERVISOR ............................................................................... 36
6.2.4 GENERAL BANKING OFFICER: ................................................................................. 36
6.2.5 CASHIER ........................................................................................................................ 36
6.2.6 TELLER SERVICE OFFICER ....................................................................................... 36
6.3 MENTION ANY SUB-DEPARTMENT IF EXISTS UNDER FINANCE/ MARKETING /
HR DEPARTMENT ............................................................................................................... 36
7. MARKETINGFUNCTION .......................................................................................................... 37
8. HUMAN RESOURCE MANAGEMENT.................................................................................... 38
VIRTUAL HUMANRE SOURCES ......................................................................................... 39
E-RECRUITING....................................................................................................................... 39
HUMAN RESOURCES INFORMATION SYSTEMS ........................................................... 40
TRAINING ............................................................................................................................... 40
8.1 PROCESSES IN HUMAN RESOURCE MANAGEMENT ................................................. 40
10. FINANCIAL ANALYSIS ...................................................................................................... 42
Ratio Analysis of company report (2016-18)Short term solvency ratios/liquidity ratios ......... 43
CURRENTRATIO .................................................................................................................... 43
Analysis: ................................................................................................................................... 44
LONG TERM SOLVENCY RATIOS/ LEVERAGE RATIOS ............................................... 44
TOTAL DEBT RATIO ............................................................................................................. 44
Analysis: ................................................................................................................................... 46
Analysis: ................................................................................................................................... 46
Analysis: ................................................................................................................................... 48
MACRO LEVEL RATIOS ....................................................................................................... 49
Analysis: ................................................................................................................................... 49
Analysis: ................................................................................................................................... 50
PROFITABILITY RATIOS ..................................................................................................... 50
GROSS PROFIT MARGIN ...................................................................................................... 50
Analysis: ................................................................................................................................... 50
11. CRITICAL ANALYSIS ......................................................................................................... 52
11.1 HUMAN RESOURCE PLANNING AND FORECASTING ......................................... 52
11.1.1 HR PPROCESS: ......................................................................................................... 52

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 11.1.2 ZERO-BASE FORECASTING: ................................................................................ 52
11.1.3 BOTTOM-UP APPROACH: ..................................................................................... 52
11.1.4 USE OF MATHEMATICAL MODELS.................................................................... 53
11.1.5 SIMULATION ........................................................................................................... 53
11.2 JOB ANALYSIS.............................................................................................................. 53
11.2.1 IDENTIFY CANDIDATES: ...................................................................................... 53
11.2.2 SOURCESOFCANDIDATES ................................................................................... 53
11.2.3 EXTERNAL SOURCES ............................................................................................ 54
11.3 RECRUITMENT AND SELECTION ............................................................................. 54
11.3.1 RECRUITMENT ........................................................................................................ 54
11.3.2 SELECTION .............................................................................................................. 54
Modes of Interview: .................................................................................................................. 55
11.3.3 TESTING ................................................................................................................... 55
TYPES OF TESTS: .................................................................................................................. 56
11.3.4 MCBRECRUITSCANDIDATESINTHREECADRES.............................................. 56
11.3.5 Final Selection ............................................................................................................ 56
11.4 ORIENTATION .............................................................................................................. 57
11.5 TRAININGANDDEVELOPMENT ................................................................................ 57
Organizational Analysis involves determining: ........................................................................ 58
PERSONANALYSISINVOLVES: .......................................................................................... 58
TRAININGMETHODSUSEDBYMCB ................................................................................... 58
11.5.2 EMPLOYEE DEVELOPMENT ................................................................................ 59
11.6 PERFORMANCE MANAGEMENT .............................................................................. 59
SETTING PERFORMANCE STANDARDS .......................................................................... 59
11.7 PERFORMANCEAPPRAISAL ...................................................................................... 60
11.8 EMPLOYEE COMPENSATION AND BENEFITS ...................................................... 60
11.8.1TYPES OF COMPENSATION AND BENEFITS ........................................................ 60
11.8.2 COMPENSATIONANDBENEFITSINMCB ............................................................ 61
11.8.3 RESIGNATION ......................................................................................................... 62
11.8.4 RETIREMENTS ......................................................................................................... 62
12. SWOTANALYSIS ................................................................................................................. 62

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 12.1 STRENGTHS: ................................................................................................................. 62
12.2 WEAKNESS:................................................................................................................... 63
12.3 OPPURTUNITIES: ......................................................................................................... 64
12.4 THREATS: ...................................................................................................................... 64
13. CONCLUSION ....................................................................................................................... 65
14. RECOMMENDATION .......................................................................................................... 65
15. REFERENCES ....................................................................................................................... 66
16. ANNEXES .............................................................................................................................. 67
FINANCIAL ANALYSIS ........................................................................................................ 67

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1. INTRODUCTIONTO BANKING SECTOR

A bank is a financial institution that accepts deposits from the public and creates credit. Lending
activities can be performed either directly or indirectly through capital markets. Due to their
importance in the financial stability of a country, banks are highly regulated in most countries.
Most nations have institutionalized a system known as fractional reserve banking under which
banks hold liquid assets equal to only a portion of their current liabilities. In addition to other
regulations intended to ensure liquidity, banks are generally subject to minimum capital
requirements based on an international set of capital standards, known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in the prosperous cities of Renaissance
Italy but in many ways was a continuation of ideas and concepts of credit and lending that had
their roots in the ancient world. In the history of banking, a number of banking dynasties–
notably, the Medici’s, the Fugger’s, the Welders, the Bahrenberg’s, and the Rothschild’s – have
played a central role over many centuries. The oldest existing retail bank is Banca Monte
deiPaschi di Siena, while the oldest existing merchant bank is Barenberg Bank. The concept of
banking may have begun in ancient Babylonia and Old sangvi, with merchants offering loans of
grain as collateral within a barter system. Lenders in ancient Greece and during the Roman
Empire added two important innovations; they accepted deposits and changed money.
Archaeology from this period in ancient China and India also shows evidence of money lending.
More modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in
the center and north like Florence, Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi
families dominated banking in 14th-century Florence, establishing branches in many other parts
of Europe. One of the most famous Italian banks was the Medici Bank, set up by Giovanni
diBeci de' Medici in 1397. The earliest known state deposit bank, Banco di San Giorgio (Bank of
St. George), was founded in 1407 at Genoa, Italy. Modern banking practices, including fractional
reserve banking and the issue of banknotes, emerged in the 17th and 18th centuries. Merchants
started to store their gold with the goldsmiths of London, who possessed private vaults, and
charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths
issued receipts certifying the quantity and purity of the metal they held as a Bailee; these receipts
could not be assigned; only the original depositor could collect the stored goods .Sealing of the
Bank of England Charter (1694), by Lady Jane Lindsay, 1905.

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Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led to
the development of modern banking practices; promissory notes (which evolved into banknotes)
were issued for money deposited as a loan to the goldsmith. The goldsmith paid interest on these
deposits. Since the promissory notes were payable on demand, and the advances (loans) to the
goldsmith's customers were repayable over a longer time period, this was an early form of
fractional reserve banking. The promissory notes developed into an assignable instrument which
could circulate as a safe and convenient form of money backed by the goldsmith's promise to
pay, allowing goldsmiths to advance loans with little risk of default. Thus, the goldsmiths of
London became the forerunners of banking by creating new money based on credit. The Bank of
England was the first to begin the permanent issue of banknotes, in 1695. The Royal Bank of
Scotland established the first overdraft facility in 1728. By the beginning of the 19th century a
bankers' clearing house was established in London to allow multiple banks to clear transactions.
The Rothschild’s pioneered international finance on a large scale, financing the purchase of the
Suez Canal for the British government.

2. OVERVIEW OF THE ORGANIZATION

2.1 BRIEF HISTORY, VISION, AND MISSION OF THE MUSLIM
COMMERCIAL BANK
2.1.1 VISION STATEMENT
To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future. (Bank, 2021)
2.1.2 MISSION STATEMENT
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.(Bank,2021)
2.1.3 BRIEFHISTORY
The history of MCB can be divided in to four main Phases:
• Development Phase
• Nationalization Phase
• Privatization Phase
• Present Position of MCB

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DEVELOPMENT PHASE
MCB Bank Limited was incorporated by the Adam jee Group on July 9, 1947, under the Indian
Companies Act, VII of 1913 as a limited company. The bank was established with a 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 10each.
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. This parathion of East Pakistan www.vchowk.com (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 in1974.
PRIVATIZATION 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, 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
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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. Banks
(Nationalization) (Second Amendment) Ordinance 1991 was also promulgated to pave the way
for privatization of banks in Pakistan. 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 success.
PRESENT POSITION OF MCB
MCB has significant contributions in building & strengthening both corporate and retail banking
sector in Pakistan. MCB Bank Ltd in 2009 delivered a profit before tax of Rs. 23.2 billion
registering a growth of 6% over last year. This growth is directly attributable to an increase
of14% in CASA deposits, 21% in revenues and a tight control on expense base enabling to retain
position as one of the most profitable banks in the country. In 2009, MCB delivered a superior
return on equity of 27.4% and assets crossed the Rs. 500billionmarks. This performance is all the
more remarkable keeping in view the economic & political challenges faced by the country
during this past year and miscreant created issues that MCB specifically grappled with for a
largepartoftheyear.MCBfundamentalbeliefisthatafinancialservicescompanycanonlysucceedif it
meets its customers’ needs. If they can understand customer’s financial objectives and offer them
the right products and services so that they can be financially successful, then MCB Bank will
continue to build on its leadership position and provide requisite returns to its shareholders.
During 2009, MCB took several initiatives that brought even closer to their customers. With the
launch of MCB Privilege, MCB became the first local bank to offer a dedicated proposition for
the affluent segment; to meet the growth and protection needs of customers, we introduced Bank
assurance and Investment Products in many of our branches; to enhance transactional
convenience for customers, and MCB became the first Pakistani bank to launch mobile banking.
These coupled with several other initiatives enabled us to continue on the path of growing
customer base and profitability. Last year, to expand and reach customer proposition, MCB
alsoreachedanagreementwithRBSPakistantoacquiretheirbusiness.Unfortunately, and the deal did
not go through, but bank continue to invest organically to further strengthen businesses.

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2.2 INTRODUCTION OF MCB, ITS CORPORATE OBJECTIVES AND MARKET
STANDING
2.2.1 INTRODUCTION OF MCB
MCB Bank Limited is the largest private sector bank in Pakistan with over 1200+ branches
nationwide. Currently MCB is the largest issuer of cards in Pakistan, with an astounding card
base of 2.5 million cards (debit, credit, prepaid and smart cards) in the market. MCB has been in
the card acquiring business since 2003 and currently has a merchant base of around 10,000where
all international & local Visa/ MasterCard/ China Union Pay credit & debit cards are accepted.
MCB now offers payment gateway for the rising Pakistani E-Commerce Industry, by providing
our existing and new merchants with a secure and efficient card processing
serviceonlinethroughMCBeGate.MCBeGateisaservicedesignedtoofferonlineshoppingconvenienc
e to the card holders and merchants whereby, card holders can make online real-time purchases
through the merchant’s website. A cardholder can use any Visa or MasterCard issued by any
bank both locally and international for making payments to the online merchants. MCB e-Gate is
backed by MIGs (MasterCard Internet Gateway Services) that provides 3D secure
solution.(Bank,2020)

2.2.2 CORPORATE OBJECTIVE

Our specialized corporate finance teams offer credit solutions tailored to meet working capital
and term loan requirements for corporate. We are committed to understand financing needs of
our customers and to deliver cost effective and practical solutions to your banking needs in the
shortest time possible. We provide a wide array of business financing solutions including but not
limited to the following:

WORKING CAPITALFINANCE

Based on customer requirements, we offer tailored working capital facilities in addition to

traditional financing solutions for pre/post shipment export, import and receivables financing.
Our customized trade finance products are structured given your specific requirements which
may be used to improve liquidity, cost efficiency, transfer risk or to meet other requirements of
either party depending on risk evaluation.

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TERM LOANS

MCB Bank offers medium- & long-term loan facilities to finance capital expenditure related to
your core business. These include but are not limited to term loans to meet your BMR financing
requirements sand project finance.

BANK GUARANTEES/LETTERS OF CREDIT

MCB Bank offers LG/SBLC facilities on behalf of our valued corporate clients. Due to our
exceptional ratings, our guarantees are accepted and used in business/trade transactions without
limitation. Our corporate banking teams are based in Karachi, Lahore, Islamabad, Faisalabad
&Multan. (Bank, 2021)

2.3 POLICIES OF MCB

We advise all visitors and clients to read and understand our privacy policy, and to check it
periodically for any updates or revisions. If you have any questions about the content of our
statement, please feel free to contact us at: [email protected] Privacy Policy governs the
manner in which MCB Bank Limited gathers, uses, maintains and discloses information
collected from users of this Website (each, a “User”).

PRIVACY

Users’ privacy is very important to MCB Bank Limited. The Bank is committed to safeguard the
information Users entrust to us.

THE INFORMATION WE COLLECT

MCB Bank Limited may collect personally identifiable information from Users in a variety of
ways, including, through online forms for ordering products and services, and other instances
where Users are invited to volunteer such information. MCB Bank Limited may also collect
information about how Users use our Web site, for example, by tracking the number of unique
views received by the pages of the Website or the domains from which Users originate. We may
use “cookies” to track how Users use our Web site. (A cookie is a piece of software that a Web
server can store on the Users’ PC and use to identify the User should they visit the Website
again). While not all of the information that we collect from Users is personally identifiable, it
may be ‘associated’ with personally identifiable information that Users provide us through our

17
website.

HOW WE USE INFORMATION

MCB Bank Limited may use personally identifiable information collected through our website to
contact Users regarding products and services offered by the Bank and otherwise to enhance
Users’ experience with MCB Bank Limited. We may also use information collected through our
website for research regarding the effectiveness of the Website and the marketing, advertising
and sales efforts of MCB Limited and its partner companies.

DISCLOSURE OF INFORMATION
MCB Limited may disclose information collected from Users to trusted affiliates, independent
contractors, and business partners (If any) who will use the information for the purposes outlined
above. We may also disclose aggregate, anonymous data based on information collected from
Users to investors and potential partners. Finally, we may transfer information collected in
connection with a sale of our product and services.

MAINTENANCE OF INFORMATION
Information about Users that is maintained on our systems is protected using industry standard
security measures. However, we cannot guarantee that the information submitted to, maintained
on, or transmitted from our systems will be completely secure.

2.4. COMPETITORS
The top 10 competitors in MCB Bank's competitive set are.

1. HBL

2. JSB

3. Ummah Finance

4. BOP,BAFL

5. Faysal Bank

6. Meezan Bank

7. Soneri Bank

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 8. AlRayan Bank

9. Gatehouse Bank

(OWLER, 2021)

2.5 BUSINESS VOLUME

• Local Branches are 1,376
• Foreign Branches are 11 (Including 1EPZ branch)
• Subsidiaries MCB Financial Services Limited Holding:100%

Profile: Float, administer and manage modaraba funds and acts as trustees of various mutual
funds.

• MNET Services(Private)LimitedHolding:100%

Profile: Service providers for Electronic Transactions to various financial institutions/banks

MCB Islamic Bank Limited Holding: 100% Profile: Islamic & Shria’h compliant banking.

• MCB- Arif Habib Savings & Investments Limited Holding:51.33%

Profile: Asset management, investment advisory, portfolio management and underwriting.

“MCB Leasing” Closed Joint Stock Company, Azerbaijan Holding: 99.94% Profile: Leases
various types of industrial equipment, public transports, and real estate and retail auto leases.

• Financial Management Services(Pvt) LimitedHolding:95.90%

Profile: Provision of Financial Services. With reference to significant holding, the following
entities are associates of the Bank; Adamjee Insurance Company Limited Holding: 20.00%
Euronet Pakistan (Private) Limited Holding: 30.00%

(CHIEFFINANCIALOFFICER, 2021)

2.6 PRODUCTLINE OF MCB

CB’s Deposit menu offers products & convenience for SME’s & other business entities. While
companies can choose from the vast list of products depending upon its need and requirement,
3products have been designed specifically to cater financial requirements of business entities
which are:

19
2.6.1 MCB BUSINESS ACCOUNT:
A Current Deposit Account that offers a wide range of unlimited free transactions and services to
cater to the business needs such as intercity withdrawals / deposits, Funds Transfer, Cheque
book, Banker’s Cheque, Duplicate Bank Statements, E-Statements, Rupee Traveler Cheques
(RTCs), etc.

2.6.2 MCB 365 SAVINGS GOLD ACCOUNT:

Offers exclusive rates for the high savers without any transaction restrictions.

2.6.3 MCB SALARY CLUB ACCOUNT:

A unique product offering targeted towards organizations to manage payroll by getting the
employee accounts opened with MCB Bank. MCB Salary Club Account has both Current and
Savings variants on which the employees can avail free benefits & discounts on various services.

3. ORGANIZATIONAL STRUCTURE OF MCB

3.1 ORGANIZATIONAL HIERARCHY
Bank is a financial institution and generates more revenue for the country and safe the
economyofthecountry.TheadoptedstructureofMCBisfullfillingtherequirementsoftheorganizations.
anorganizationalstructurethatclearlyassignsresponsibilities,authority and reporting relationships;
ensuring that delegated responsibilities are effectively carried out; setting appropriate internal
control policies; monitoring the adequacy and effectiveness of the internal control system
through evaluation and validation by internal auditors.

20
3.1.1 CHART

3.2 NUMBEROF EMPLOYEES

3.2.1 BOARD OF DIRECTORS

• Mian Mohammad Mansha, Chairman

• S.M. Muneer, ViceChairman

• Mr. Tariq Rafi, Director

• Mr. Shahzad Saleem, Director

• Mr. Sarmad Amin, Director

• Dr. Muhammad Yaqub, Director

• Dato’ Mohammed Hussein, Director

• Mian Raza Mansha, Director

21
 • Aftab Ahmad Khan, Director

• Mian Umer Mansha, Director

• Mr. M. AliZeb, Director

• Dato’ Seri Ismail Shahudin, Director

• Mr. M.U.A. Usmani, (President/CEO)

3.2.2 KEY MANAGEMENT

3.2.3 AUDIT COMMITTEE MEMBERS

• Tariq Rafi– Chairman

• Dr. Muhammad Yaqub

• Dato’ Mohammed Hussein

• Aftab Ahmad Khan

• Muhammad Ali Zeb

• Malik Abdul Waheed

3.2.4 HUMAN RESOURCE COMMITTEE MEMBERS

• Mian Mohammad Mansha Chairman

• Dr. Muhammad Yaqub

• Mian Raza Mansha

• Mr. Shahzad Saleem

• Mr. M.U.A. Usmani

3.2.5 RISK MANAGEMENT AND PORTFOLIO REVIEW COMMITTEE MEMBERS

• Mian Umer Mansha Chairman

• Mr. Tariq Rafi

22
 • Mr. Sarmad Amin

• Mian Raza Mansha

• Mr. Shahzad Saleem

3.2.6 BUSINESSS TRATEGY AND DEVELOPMENT COMMITTEE MEMBERS

• Mian Mohammad Mansha Chairman

• Mian Raza Mansha

• S.M. Muneer

• Mian Umer Mansha

• Dr. Muhammad Yaqub

• Mr. M.U.A. Usmani

• Dato' Mohammed Hussein

3.2.7 COMMITTEE ON PHYSICAL PLANNING, IT SYSTEMS AND CONTINGENCY

ARRANGEMENTS MEMBERS
• Mr. Sarmad Amin Chairman

• Mian Raza Mansha

• Mr. Tariq Rafi

• S.M. Muneer

• Mr. M.U.A. Usmani

3.2.8 SBP REPORT COMPLIANCE MONITORING COMMITTEE MEMBERS

• Dr. Muhammad Yaqub

• Mr. Aftab Ahmad Khan

• Mr. M.U.A.Usmani

23
3.2.9 CHIEF FINANCIAL OFFICER
• Mr. Salman Zafar Siddiqi

3.2.10 COMPANY SECRETARY

• Mr. Abdu’sS.Sami

3.2.11 AUDITORS
• KPMG Taseer Hadi &Co.

• Chartered Accountants

3.2.12 LEGAL ADVISORS

• Khalid Anwer &Co.

• Advocates & Legal Consultants

3.3 MAINOFFICES
REGISTERED OFFICE

Islamabad.

PRINCIPAL OFFICE

Lahore.

SHARES REGISTRAR

Karachi.

CORPORATE OFFICE

Lahore.

3.4 BRIEF INTRODUCTION OF ALL DEPARTMENT

3.4.1 REMITTANCE DEPARTMENT

The Remittance department deals with the transfer of money from one place to another. Funds
transfer facility or remittance of funds is one of the key functions of the banks all over the world.
Remittances through banking channels save time, costs less and eliminate the risks involved in

24
Physical transportation of money from one place to another. Muslim Commercial Bank of
Pakistan transfers money in the following ways.

▪ Pay Order ▪ Pay Slip

▪ Demand Draft ▪ Call Deposit Receipt
▪ Mail Transfer ▪ Letter of Credit
▪ Telegraphic Transfer ▪ Travelers Cheque

3.4.2 ACCOUNTS DEPARTMENT

Opening of account is the most important department of the Branch as this is a contract between
the customer and bank. All future transaction/operation are carried out as per this contract
andanydeviationmayjeopardizethebank’sinterest.Theopeningofanewaccountistheestablishmentof
customer banker relationship. By opening an account at a bank, a person becomes a customer of
the bank. The customers can open following accounts:

▪ Current Account(CDA/C)
▪ Profit and loss sharing Account (PLSA/C)
▪ Basic Bank Account(BBAA/C)
▪ Fixed Deposit(FDR/TDR)

3.4.3 CREDIT DEPARTMENT

The bank is profit seeking institution. It attracts surplus balance from the customer at low rate of
interest and makes advances at a higher rate of interest to the individuals and business firms.
Credit extensions are the most important activity of all the financial institutions, because it is the
main source of earnings. Advances department is one of the most sensitive and important
department of the bank. The major portion of the profit is usually earned through this
department. The job of this department is to make proposals about the loans; the credit
management division of head office directly controls all the advances. The advances Department
receive application from intending borrowers. After receiving application, the advance
department processes it further. After analyzing and detailed investigation, they decide whether
to approve the loan or not. Some loan approvals are made by the Manager of the branch with in

25
his powers as prescribed by the bank’s higher authorities, while some loan applications
aresubmittedtohigherauthoritiesfortheirapproval.Someadvancesareofthefollowing nature.
▪ Loan against Gold
▪ Agriculture advances to farmers
▪ Medium term advance for working capital
▪ Long term advance for setting industry
▪ Short term advance to businessman

3.4.4 FOREIGN EXCHANGE DEPARTMENT

This department mainly deals with the foreign business. The main functions of these departments
are:

▪ L/C dealing.
▪ Foreign currency accounts dealing.
▪ Foreign Remittance dealing.

3.4.5 INTERNAL CONTROL DEPARTMENT

Role of branch compliance department is to reconcile the prescribed frequencies, investigate
long pending reconciliation item, and ensure correct treatment every half-year and clearing
system service branch-in major cities. Internal control is the integration of the activities, plans,
attitudes, policies and efforts of the people of the bank working together to provide reasonable
assurance that the organization will achieve its objectives and mission.

3.4.6 COMMERCIAL BANKING GROUP

The Group focuses on revenue growth and profitability while through cross sell and optimization
of branch banking platform. With its large network of branches, Commercial Banking Group
posted robust growth by increasing their deposit volume. The Group enhanced their sales model
through the introduction of a direct sales force team and personnel bankers in many branches
while continuing to strengthen their customer services quality. The year witnessed a successful
restructuring of the SME & Mid-market segment with continued optimism of the benefit
accruing in the upcoming times.

26
3.4.7 CONSUMER BANKING GROUP
The strategic focus of the Group to enhance cross sell, strengthen customer propositions and
improve customer service. Emphasis will be on rapid expansion of the new initiatives such as
MCB Privilege, Bank assurance, Investment Services and Alternate Distribution Channels. In
parallel, the Group will remain committed to product development & refinement of processes for
continuous growth of deposits & customer base. The Consumer Banking Group on its path of
expanding the product suite and customer base. MCB Mobile, the first of its kind, mobile
payment solution was launched enabling customers to access their accounts and make payments
using their mobile phones. With the launch of MCB Privilege, MCB also became the first local
bank in Pakistan to start a dedicated offering for the affluent segment through three dedicated
Privilege Centers in Karachi, Lahore & Islamabad. A specialized Investment Services Unit was
established to develop and distribute specialized investment products catering to the growth
needs of affluent/mass affluent segments. There was increased focus on enhancing cross sell to
deposit customers by expanding the footprint of Banc assurance. Functionality, reach, as well as,
penetration of Alternate Delivery Channels was enhanced. A significant milestone in 2009 was
the transformation of the call Centre from a service center to a transactional phone banking
facility. Given the high interest rate environment and tight economic conditions, 2009 remained a
cautious year for the consumer financing business. Only selective lending was carried out in
segments that have performed well historically. With close monitoring of NPLs, the focus
remained on collection & recovery and portfolio management during the year.

3.4.8 CORPORATE BANKING GROUP

Corporate Banking Group's scope of work was expanded with the inclusion of International
Division and Investment Banking, which were absorbed to create better control and synergy. The
group managed to maintain the quality of their risk assets and derived comfort from the fact that
corporate non-performing loans constituted only 1% of the total corporate portfolio as compared
to industry percentage of 4%. The group embarks with cautious optimism with strategic thrust
being on building fee-based income and trade business by cross selling to the existing customer
base. Information technology led changes in Transaction Banking (TB) related Products led to a
quantum jump in volumes and income, as a result of automation of payments and collections
systems.

27
3.4.9 ISLAMIC BANKING GROUP
MCB Islamic Banking managed to maintain its profitability while ensuring quality of its earning
assets despite tough market conditions & deterioration in assets quality of banking industry.
Islamic Banking further strengthened its market outreach by increasing its deposit base and
equity. MCB-IB plans to improve its assets & liability product range. Strategic initiative for
further increase in dedicated branches and capitalizing on existing outreach of MCB Bank has
been undertaken for capturing Islamic banking business.

3.4.10 TREASURY AND FOREX GROUP

Treasury & FX remained focused on its customer orientation and enhanced its coverage to a
broader customer base. The portfolio of customers grew not only through the Treasury
Marketing Unit's own efforts but also as a result of a better cross-sell platform fully supported by
the Wholesale, Commercial, and Consumer and Financial Institutions businesses. Fixed Income
sales showed substantial improvement over the past year's performance and remained an area of
focus. The Treasury Money Market business worked towards gradually enhancing the
investment portfolio's duration over the course of the year. This effort was granted greater
buoyancy by the stable deposit growth shown by the bank during the year and the portfolio was
almost entirely funded through the bank's own sources and decreased whatever little dependence
there was on the inter-bank money market. The enhanced duration of the portfolio ensured that
the deposit-taking areas of the bank were able to pay superior rates of return to customers and
was a key support factor in the overall growth of the bank's balance sheet. The Foreign Exchange
business continued to grow over the course of the year in spite of substantial volatility in the
inter-bank markets owing to the turbulent economic situation facing the country. Overall, the
Treasury & FX Group turned in a very strong performance and ensured its continued support for
the rest of the bank's businesses. The Treasury followed through on the vision of the Bank's
management and deployed a Treasury Marketing Unit in Lahore which supports the bank's client
base in key centers such as Islamabad, Rawalpindi, Lahore, Faisalabad etc. Further efforts in this
regard are continuing and in the coming year Treasury will add at least one more marketing desk
in a major city broadening its coverage even further.

28
3.4.11 ASSETS MANAGEMENT GROUP
Bank's Special Asset Recovery outfit (SAMG) role further prominence. SAMG, posted cash
recovery in excess of Rs. 1 billion. It is foreseen that the asset remedial management function
would continue to play a visibly pronounced role at least in the medium-term scenario.

3.4.12 AUDIT & RAR GROUP

Audit Group has performed consultative role in addition to the assurance services that it is
geared to provide. The Group has strengthened itself to cater to the requirements of Bank's
Whistle blowing Program. Training & Quality Assurance Department, developed within the
Group, ensures that the audit assignments qualify the high standards that have been defined for
the Group. Audit Group is now equipped both in terms of human resource and methodology and
is committed towards optimization of its operations.

3.4.13 OPERATIONS GROUP

Operations group made significant progress through centralization, strengthening of the Bank's
processes through compliance with the COSO based Internal Control Framework, Business
Continuity Management and Staff Training & Development. Strong operational support was
provided to the businesses to ensure the launch of new products, channels and services including
Banc assurance, Privilege Banking, Mobile Banking, Phone Banking, and Trade Products &
Cash Management as well as in the migration of core banking application across all branches in
the country.

3.4.14 HUMAN RESOURCE GROUP

The Human Resources Group has worked towards instilling systematic processes to build a
performance-based culture based on internal equity. Alongside aligning the bank with best
practices, this is surely to bring about an efficient and motivated workforce. The Group will be
further developing staff through a focus on career development and training to truly brand MCB
as an employee-focused organization.

3.4.15 BUSINESS DEVELOPMENT AND NEW INITIATIVES

The Group, in close coordination with the Board and senior management, led the bank-wide
strategic planning exercise to refine and revalidate MCB's 2012 strategy. Program Alpha, an
initiative tasked with transforming branches into efficient sales and service centers was very

29
Active. The Group also set-up a bank-wide Central Business Intelligence Unit responsible for
supporting the retail bank in its sales and performance MIS needs. BDNI will continue to ramp
up on Program Alpha and BIU coverage and will work closely with all bank groups to ensure
strategy delivery.

3.4.16 INFORMATION TECHNOLOGY GROUP

The major focus was on the completion of the roll-out of the Core Banking System (Symbols)
which heralds a new era for the bank. Apart from the roll-out, the Group focused on up gradation
of network technology, revision of security framework and provision of disaster recovery for the
critical business applications, deployment of a new Payments and Collection system moving
MCB to the 3rd market position (from 7th) and launched its Mobile Banking platform fully
integrated with MCB systems. Information Technology governance model has been introduced
to ensure quality selection, monitoring and delivery of all high value projects.

3.4.17 COMPLIANCE GROUP

Compliance Group focus on pro-actively identifying and resolving any regulatory gaps,
particularly related to Know Your Customer (KYC) and Anti-Money Laundering (AML). To
create awareness across the bank regarding KYC &AML regulations, over eighty training
sessions were conducted by the group in 39 cities / regions training approximately 2,600 staff.
Other initiatives were undertaken in the shape of “Compliance Newsletter” and “Regulatory &
Legal update”. The Bank is now moving towards a solution-based monitoring and has already
acquired “Name filtering” solution while an AML solution is in the process of being finalized for
implementation which will better equip the bank in curbing any unscrupulous transaction.

3.4.18 RISK MANAGEMENT GROUP

Prudent and effective risk management is and has always been a significant success factor in
steering the Bank's march towards strong profitability and market leadership. The Bank employs
the function of risk management as an important tool in implementation of its long-term vision.
MCB has successfully created a culture based on modern techniques that allows risk
management and business units to create more shareholder value through a better understanding
of our Bank and our customers. The Risk Management framework combines core policies, by
procedures and process design with oversight and is supported by risk monitoring across the
bank. Elements of risk management framework are reviewed and updated in order to align us

30
Long-term strategy in the field with lessons learned through the Bank's own experiences and
international best practices also kept compliant with the local regulations and selected
international best practices, particularly those relating to implementation of Basel-II.

3.4.19 INVESTMENT GROUP

The principal purpose of an investment group is the underwriting of new securities issued by an
investment bank's clients. An investment bank may also provide other services, such as
professional advice, working with mergers& acquisitions, and private wealth management.

3.4.20 INTERNAL CONTROL GROUP

The Bank's internal control structure comprises of the Board of Directors, Senior Management,
Risk Management Group, Compliance & Control Group, Financial Control Group, and Self-
Assessment Process within business groups and Internal Audit. The Management is responsible
for establishing and maintaining a system of adequate internal controls and procedures for
implementing strategy and policies as approved by the Board of Directors, designed to provide
reasonable assurance as to the integrity and reliability of those controls and reports produced
there from; developing processes that identify, measure, monitor and control risks incurred by
the Bank; maintaining an organizational structure that clearly assigns responsibilities, authority
and reporting relationships; ensuring that delegated responsibilities are effectively carried out.

3.5 COMMENTS
The banks may choose to make its existing products distinctive or to introduce new products.
It is often easier to benefit from adverse changes made by other banks than to attract customers
by innovations. A short-term promotional technique is to offer price incentives, for example, low
interest rates on advances or limited issue high profit bearing term deposits. Longer term, a Loss
Leader may be offered. For example, profit bearing current accounts are not very lucrative, but
any bank cannot afford not to offer these. The reduced profits can be augmented by profits made
on other products.
It is also possible to attract/retain personal customers by investment in new technology like

ATMs and Telephone Banking facilities, which made the services quicker, easier, cheaper and
more flexible.

31
4. PLAN OF INTERNSHIP PROGRAM
4.1 BRIEF INTRODUCTION OF THE BRANCH
MCB Bank Limited is the largest private sector bank in Pakistan with over 1200+ branches
nationwide. Currently MCB is the largest issuer of cards in Pakistan, with an astounding card
base of 2.5 million cards (debit, credit, prepaid and smart cards) in the market. MCB has been in
the card acquiring business since 2003 and currently has a merchant base of around 10,000
where all international & local Visa/ MasterCard/ China Union Pay credit & debit cards are
accepted. In MCB Kot Lakhpat branch and all over the country, now offers payment gateway for
the rising Pakistani E-Commerce Industry, by providing our existing and new merchants with a
secure and efficient card processing service online through MCB e-Gate. MCB e-Gate is a
service designed to offer online shopping convenience to the card holders and merchants
whereby, cardholders can make online real-time purchases through the merchant’s website. A
cardholder can use any Visa or Master Card issued by any bank both locally or international for
making payments to the online merchants. MCB e-Gate is backed by MIGs (Master Card
Internet Gateway Services) that provides 3D secure solution.MCB Bank offers an array of
lending products catering to your business needs in affordable & convenient ways, under
international & local regulatory framework. We provide funded & non-funded finance facilities
to take care of short-term & long-term business needs of all segments including Small and
Medium Enterprises (SMEs), middle markets & agriculture sector.

FUNDED FACILITIES

Working Capital Financing

Export

Re-Financing (under State Bank of Pakistan Scheme)

Agriculture Financing

Term Loans

NON-FUNDED FACILITIES
Letters of Credit Stand by Letter of Credit Guarantees

32
5. TRAINING PROGRAM
Training refers to the process of imparting specific skills. According to Reynolds et al
(2004,pp.1) training is defined "as a set of activities which react to present needs and is focused
on the instructor and contrast with learning as a process that focuses on developing individual
and organizational potential and building capabilities for the future". Training is essentially a
management tool derived to foster, develop, and increase skills and knowledge base of
employees and also employers with a view to ultimately increasing both the employees and
organizations performance in terms of efficiency, effectiveness, and overall productivity.

5.1.1 ACCOUNT OPENING DEPARTMENT

While working in account Opening Department, I made documentation of customers who want
to open their accounts in MCB bank. Firstly, I saw their valid CNIC, if they haven’t a valid
CNIC, there should be NADRA Token & amp; a valid CNIC of their family member is also
required.

Secondly, I asked them about their sources of income and checked their income proofs like job
visiting card, in case of partnership of business, partnership deed is required, or any other thing
mentioned by customers. Thirdly, I filled their account opening forms and arrange all documents
like, copy of CNIC of customer and his family member, Signature specimen Card, Cheque book
issuance slip, ATM form, Verysis, KYC Form etc. Finally, I send these forms to BOM for the
signs of officials. These forms send to head office after proper documentation.

5.1.2 ACT AS A CSO:

I also act as a Customer Service Officer and perform different task e.g., Deal the customer and
guide them where want to go according to their related branches and areas. Issue statements to
the customers on their demand and for the clearance purpose. Tell their account balances using
bank specials software for this task on BT (branch transaction) as per customer request, Flooring.

5.1.3 CLEARANCE DEPARTMENT:

I made local clearing as well as intercity clearing. During this period, I perform following tasks:

• Make entry in excel sheet

• Stamping of clearing with the date of one day later
• Stamping of “Payees account credit”

33
 • Make bundle cover in which Istateno of instruments & amp; total number of Cheques
while making intercity clearing:

• Make entry in intercity clearing register

• Make stamping

• Cheque book Issuance while performing this task:

Firstly, I made the entry of new Cheque book in checkbook issuance register when it comes from
head office

• I made entry of Cheque book in excel sheet.

• I attach the request slip with Cheque book.

• When a person comes to receive its Cheque book.

• I detach the request slip at the time of issuance.

• Attach it with the daily vouchers.

• Receive sign of customer on Cheque book issuance register.

• Remittance.

5.1.4 DEPARTMENT
While working in remittance department, I made CDR (call deposit receipt) & amp; TDR (term
deposit receipt).

• Firstly, I fill the form according to customer’s requirement.

• Get sign of customer and give customer copy to him.
• Make entry in register.
• Get sign of official.
I also get information about:
• Pay Orders
• Demand Drafts
• Foreign remittance
• Mail transfer

34
5.1.5 LOCKER PROCESSING

While performing locker processing, I perform following tasks:

• I fill up the form of locker according to the customer’s requirement.

• Attach the copy of CNIC of customer.
• Attach Signature Specimen Card with form.

6. STRUCTURE OF YOUR CONCERNED SPECIALIZATION

DEPARTMENT
6.1 DEPARTMEN THIERARCHY

BRANCH
MANAGER

BRANCHOP
ERATIONM
ANAGER

TELLERSER
VICESUPER
VISOR

GENERAL GENERAL GENERAL TELLER

BANKING BANKING BANKING CASHIER SERVICE
OFFICER OFFICER OFFICER OFFICER

6.2 NUMBER OF EMPLOYEES WORKING UNDER FINANCE /

MARKETING / HR DEPARTMENT
There are total 8 employees working in the operation department who are enthusiastic with their
work and giving a respective and loyal performance to bank. The 8 employees are divided into
categories who has a specific role to perform, and the branch is centralized according to the
policies of MCB.

6.2.1 BRANCH MANAGER:

Directing all operational aspects including distribution, customer service, human resources,
administration, and sales in accordance with the bank's objectives. Providing training, coaching,
35
development, and motivation for bank personnel.

6.2.2 BRANCH OPERATION MANAGER

Branch Operations Manager is responsible for the entire operation of a branch; from ensuring the
attainment of sales goals to overseeing everyone provides excellent customer service. Branch
operations managers also ensure that the branch office has all the tools and infrastructure needed
to keep it in working order.

6.2.3 TELLER SERVICE SUPERVISOR

Teller supervisors work and oversee other tellers, who are responsible for handling the basic
financial transactions of customers, including cashing checks, making deposits and withdrawals.

6.2.4 GENERAL BANKING OFFICER:

The primary responsibility is to provide support to the branch by managing core branch functions
for servicing customers in accordance with the high standards of service quality of the bank. The
Officer is responsible for the day-to-day interaction with customers of a fast-paced branch. And
there are currently 3 General Banking Officer are operating in the department to improve the
company outcome.

6.2.5 CASHIER
Welcoming customers, answering their questions, helping them locate items, and providing
advice or recommendations. Operating scanners, scales, cash registers, and other electronics.
Accepting payments, ensuring all prices and quantities are accurate and proving a receipt to
every customer.

6.2.6 TELLER SERVICE OFFICER

Provides account services to customers by receiving deposits and loan payments; cashing checks;
issuing savings withdrawals; recording night and mail deposits; selling cashier's checks,
traveler's checks, and series e bonds; answering questions in person or on telephone; referring to
other bank services.

6.3 MENTION ANY SUB-DEPARTMENT IF EXISTS UNDER FINANCE/

MARKETING / HR DEPARTMENT
“There is no any sub-department is working under any of Human Resource, Finance and
Marketing department.”

36
7. MARKETINGFUNCTION
Also known as the 4P’s of the company or the industry which can be defined as, which a
company uses to formulate a product/ service offering for its customers. Marketing mix strategy
is created using the 4Ps of marketing- Product, Place, Price, Promotion and 7Ps in case of
service- Physical Evidence, People, and Process. The term Marketing Mix is attributed to Neil
Bordon. The term is named marketing mix because it suggests how a marketer mixes various
elements (Product, Price, Place, Promotion etc.) in order to make a relevant/ just right offering to
the customer. The main objective of marketing mix strategy is to make the right product at
correct price at the right place with right promotion. This strategy has been one of the popular
marketing topics in business. Let us talk more about the various elements in the marketing mix.
There are two types of marketing mix-Product Marketing Mix (4Ps). When a company is
offering products or goods, it comes under the purview of the product marketing mix. It talks
about the product strategies, pricing strategies, place where the products are distributed and
promotional strategies. Elements of a product marketing mix can be explained in detail as below:

1) PRODUCT: It is the main part of the offering, the product itself. It is most important aspect
of the mix. Product is something which has some functional value and can be used by the
customer to achieve something. A marketer needs to define his product very carefully thinking
about its value, it’s USP, features, competition etc.

2) PRICE: Pricing the second most important element in our marketing mix. This is value we
will get in exchange for our product. This is what the customer will pay in return for the utility of
the product. Pricing is mainly determined by the cost of the product and also how much the
customer would be willing to pay. If we price it too high no one buys, if we price it too low,
company makes losses. So, we have to devise the right pricing strategy to make our marketing
mix perfect.

3) PLACE: Also called the Distribution. If we are making a product as the right price, that is not
enough, we need to make it available at the right place too. The customer mostly would not come
to you until and unless our product and price is unbeatable. The product needs to be where
customer is likely to buy. If we are soft drink manufacturer and the product is not available in

37
Grocery stores, supermarkets, restaurants etc. then the first two elements of marketing mix are of
no use and the offering fails.

4) PROMOTION: Also referred to as Communication about the product. This is the 4th
element in marketing mix which means the communication done about the product to the
customer. Advertising on TV, print and digital media would come under promotion.

8. HUMAN RESOURCE MANAGEMENT

Human resource management (HRM or HR) is the strategic approach to the effective
management of people in a company or organization such that they help their business gain a
competitive advantage. It is designed to maximize employee performance in service of an
employer's strategic objectives. Human resource management is primarily concerned with the
management of people within organizations, focusing on policies and systems. HR departments
are responsible for overseeing employee-benefits design, employee recruitment, training and
development, performance appraisal, and reward management, such as managing pay and benefit
systems. HR also concerns itself with organizational change and industrial relations, or the
balancing of organizational practices with requirements arising from collective bargaining and
government allows. The overall purpose of human resources (HR) is to ensure that the
organization is able to achieve success through people. HR professionals manage the human
capital of an organization and focus on implementing policies and processes. They can specialize
in finding, recruiting, training, and developing employees, as well as maintaining employee
relations or benefits. Training and development professionals ensure that employees are trained
and have continuous development. This is done through training programs, performance
evaluations, and reward programs. Employee relations deal with the concerns of employees
when policies are broken, such as cases involving harassment or discrimination. Managing
employee benefits includes developing compensation structures, parental leave programs,
discounts, and other benefits for employees. On the other side of the field are HR generalists or
business partners. These HR professionals could work in all areas or belabor relations
representatives working with unionized employees. HR is a product of the human relations
movement of the early 20th Century, when researchers began documenting ways of creating
business value through the strategic management of the workforce. It was initially dominated by
transactional work, such as payroll and benefits administration, but due to globalization,

38
company consolidation, technological advances, and further research, HR as of 2015 focuses on
strategic initiatives like mergers and acquisitions, talent management, succession planning,
industrial and labor relations, and diversity and inclusion. In the current global work
environment, most companies focus on lowering employee turnover and on retaining the talent
and knowledge held by their workforce. New hiring not only entails a high cost but also
increases the risk of a new employee not being able to adequately replace the position of the
previous employee. HR departments strive to offer benefits that will appeal to workers, thus
reducing the risk of losing employee commitment and psychological ownership.

VIRTUAL HUMANRE SOURCES

Technology has a significant impact on HR practices. Utilizing technology makes information

more accessible within organizations, eliminates time doing administrative tasks, allows
businesses to function globally, and cuts costs. Information technology has improved HR
practices in the following areas:

E-RECRUITING

Recruiting has mostly been influenced by information technology. In the past, recruiters relied
on printing in publications and word of mouth to fill open positions. HR professionals were not
able to post a job in more than one location and did not have access to millions of people,
causing the lead time of new hires to be drawn out and tire some. With the use of e-recruiting
tools, HR professionals can post jobs and track applicants for thousands of jobs in various
locations all in one place. Interview feedback, background checks and drug tests, and on
boarding can all be viewed online. This helps HR professionals keep track of all of their open
jobs and applicants in a way that is faster and easier than before. E-recruiting also helps
eliminate limitations of geographic location. Jobs can be posted and seen by anyone with internet
access. In addition to recruiting portals, HR professionals often have social media presence
through websites such as LinkedIn, allowing them to attract employees through the internet. On
social media, they can help build the company's brand by posting company news and photos of
company events.

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HUMAN RESOURCES INFORMATION SYSTEMS

HR professionals generally handle large amounts of paperwork on a daily basis, ranging from
department transfer requests to confidential employee tax forms. Forms must be on file for a
considerable period of time. The use of Human Resources Information Systems (HRIS) has
made it possible for companies to store and retrieve files in an electronic format for people
within the organization to access when needed, thereby eliminating the need for physical files
and freeing up space within the office. HRIS also allows for information to be accessed in a
timely manner; files can be accessible within seconds. Having all of the information in one place
also allows for professionals to analyze data quickly and across multiple locations because the
information is in a centralized location.

TRAINING

Technology allows HR professionals to train new staff members in a more efficient manner. This
gives employees the ability to access on boarding and training programs from virtually
anywhere. This eliminates the need for trainers to meet new hires face-to-face when completing
necessary paperwork for new employees. Training in virtual classrooms makes it possible for HR
professionals to train a large number of employees quickly and to assess their progress through
computerized testing programs. Some employers choose to incorporate an instructor with virtual
training so that new hires are receiving training considered vital to the role. Employees have
greater control over their own learning and development; they can engage in training at a time
and place of their choosing, which can help them manage their work-life balance. Managers are
able to track the training through the internet, which can help to reduce redundancy in training
and training costs.

8.1 PROCESSES IN HUMAN RESOURCE MANAGEMENT

Each organization works towards the realization of one vision. The same is achieved by
formulation of certain strategies and execution of the same, which is done by the HR department.
At the base of this strategy formulation lie various processes and the effectiveness of the former
lies in the meticulous design of these processes. But what exactly are and entails these processes.
Let’s read further and explore.

The following are the various HR processes:

40
 • Human resource planning (Recruitment, Selecting, Hiring,

Training, Induction, Orientation, Evaluation, Promotion and Layoff).

• Employee remuneration and Benefits Administration
• Performance Management.
• Employee Relations.

The efficient designing of these processes apart from other things depends upon the degree of
correspondence of each of these. This means that each process is subservient to other. You start
from Human resource Planning and there is a continual value addition at each step. To
exemplify, the PMS (performance Management System) of an organization like Infosys would
be different from an organization like Wal-Mart. Let’s study each process separately. Human
Resource Planning: Generally, we consider Human Resource Planning as the process of people
forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion and
Layoff.

Recruitment: It aims at attracting applicants that match a certain job criteria.

Selection: The next level of filtration. Aims at short listing candidates who are the nearest match
in terms qualifications, expertise and potential for a certain job.
Hiring: Deciding upon the final candidate who gets the job.
Training and Development: Those processes that work on an employee onboard for his skills
and abilities up-gradation.
Employee Remuneration and Benefits Administration: The process involves deciding upon salaries
and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivate or in any job and
therefore the importance of this process. Performing employees seek raises, better salaries and bonuses.
Performance Management: It is meant to help the organization train, motivate and reward workers. It is
also meant to ensure that the organizational goals are met with efficiency. The process not only includes
the employees but can also be for a department, product, and service or customer process; all towards
enhancing or adding value to them.

Nowadays there is an automated performance management system (PMS) that carries all the
information to help managers evaluate the performance of the employees and assess them
accordingly on their training and development needs.

41
Employee Relations: Employee retention is anuisance with organizations especially in
industries that are hugely competitive in nature. Though there are myriad factors that motivate an
individual to stick to or leave an organization, but certainly few are under our control. Employee
relations include Labor Law and Relations, Working Environment, Employee health and safety,
Employee-Employee conflict management, Employee-Employee Conflict Management, Quality
of Work Life, Workers Compensation, Employee Wellness and assistance programs, Counseling
for occupational stress. All these are critical to employee retention apart from the money which
is only a hygiene factor. All processes are integral to the survival and success of HR strategies
and no single process can work in isolation; there has to be a high level of conformity and
cohesiveness between the same.

10. FINANCIAL ANALYSIS

MCB (PVT) LIMITED

BALANCE SHEET
As at June 30,2021
2020 2019 2018
Particular/Detail
ASSETS Amount in Rs.
NON-CURRENT ASSETS
Property, Plant & Equipment 156030961 166999945 14999945
Long Term Investments 70000 64000 74000
156100961 167063945 15073945
CURRENT ASSETS
Stores, Spares & Loose Tools 31501 - -
Stock in Trade 680307 774690 574690
Trade Debts 1804600 1515839 2515839
Loans & Advances 396556 504665 494665
Trade Deposits 100000 - -
Other Receivable’s 5504 2339 2539
Tax refunds due from Govt. 156683 253414 233414
Cash & Bank Balances 105629 176346 186346
3280780 3227293 4007493
TOTAL ASSETS 159381741 170291238 19081438
EQUITY & LIABILITIES
SHARES CAPITAL & RESERVES
Authorized Share Capital
15000000(June30,2014:15000000)@Rs.10/-e 150000000 150000000 150000000

Issued, Subscribed & Paid-Up Capital 149580000 149580000 149580000

Accumulated Loss -437533976 -420911735 -420911735
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 Total Equity -287953976 -271331735 -271331735
LIABILITIES
NON-CURRENT LIABILITIES
Long Term Deposits - 20041401 20041401
Deferred Liabilities 184104 179682 179682
CURRENTLIABILITIES
Trades and Other Payables 70062641 62099023 59099023
Accrued Interest/ Markup 162944113 155705135 125705135
Short term Borrowings 39137524 18749706 19749706
Current portion of long term financing 32991000 32991000 33991000
provision of taxation–net 606816 856410 756410
305742094 270401274 239301274
TOTALLIABILITIES 159381740 170291237 19081438

MCB(PVT)LIMITED
PROFITANDLOSSSTATEMENT
For the Year ended June 30,2021
2020 2019 2018
Particular/Detail
Amount in Rs.
Sales–Net 7740037 9514091 8814091
Cost of Sales 24895413 27275159 25275159
Gross Profit 32635450 36789250 34089250
Other Income 6410910 12456675 12056675
Distribution Cost 3223286 3068791 2968791
Admin expenses 3602629 4057378 3557378
Other Operating Expenses - 1488978 1388978
Finance Cost 7251970 -7249972 -7539972
Profit before Taxation 53124245 50611100 46521100
Taxation 1390986 3055119 2955119
Profit for the Year 54515231 53666219 49476219

Ratio Analysis of company report (2016-18)Short term solvency ratios/liquidity ratios

CURRENTRATIO

Current Assets
Current Ratio 0.010730547 0.011935199 0.01683
Current
Liabilities

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2020 = Current Assets/ Current Liabilities= 0.01073

2019 = Current Assets/ Current Liabilities= 0.01193

2018= Current Assets/ Current Liabilities= 0.01683

Analysis:

The Current ratios of the company are shown, and the current ratio decreased in 2020 as
compared to the previous two year (2019 & 2018). The change between 2020, 19 and 18 vary
in between 0.02. It is showing the liquidation of the company and it’s not bad. Company can
increase this ratio by increasing its Current Assets.

CASH RATIO

Cash Current
Cash 0.000345484 0.000652164 0.000779
Liabilities
Ratio

2020 = Cash/ Current Liabilities = 0.0003

2019 = Cash/ Current Liabilities = 0.0006

2018 = Cash/ Current Liabilities = 0.0007

Analysis:

The Current ratios of the company are shown, and the current ratio decreased in 2020 as
compared to the previous two year (2019 & 2018). The change between 2020, 19 and 18 vary
in between 0.0010. It is showing the liquidation of the company and it’s not bad. Company
can increase this ratio by increasing its Current Assets.

LONG TERM SOLVENCY RATIOS/ LEVERAGE RATIOS

TOTAL DEBT RATIO

T. Assets
T. Debt -0.806693629 -0.593339377 -0.59334
Ratio T. Equity
Total Asstes

44
2020 = Total Assets – Equity/ Total Assets = 0.806

2019 = Total Assets – Equity/ Total Assets = 0.593

2018 = Total Assets – Equity/ Total Assets = 0.593

Analysis:

The Current ratios of the company are shown and the current ratio increased in 2020 as
compared to the previous two year (2019 & 2018). The change between 2020, 19 and 18 vary
in between 0.9. It is showing the liquidation of the company and it’s not bad. Company can
increase this ratio by increasing its Current Assets.

EQUITYMULTIPLIER

T. Assets
Equity Multiplier -0.553497275 -0.627612682 -0.0704
T. Equity

2020 =Total Assets /Total Equity = 0.55

2019 =Total Assets/ Total Equity = 0.62

2018 =Total Assets Total Equity = 0.070

Analysis:

The Current ratios of the company are shown and the current ratio decreased in 2020 as
compared to the previous two year (2019 & 2018). The change between 2020, 19 and 18 vary
in between 0.7. It is showing the liquidation of the company and it’s not bad. Company can
increase this ratio by increasing its Current Assets.

INTEREST COVERAGE RATIO

Earning before I &

Interest Coverage Ratio 38.19178985 16.56599956 15.74255
T Interest

45
2020 = EBIT/Interest= 38.19
2019=EBIT/Interest=16.56
2018=EBIT/Interest=15.74

Analysis:

The Current ratios of the company are shown, and the current ratio increased in 2020 as
compared to the previous two year (2019 & 2018). The change between 2020, 19 and 18 vary
in between 39. It is showing the liquidation of the company and it’s not bad. Company can
increase this ratio by increasing its Current Assets.

ABSOLUTELIQUIDRATIO

Cash+Bank+Mkt.Securities
Absolute Liquid 0.000345484 0.000652164 0.000779
Current Liabilities
Ratio

Analysis:

2020= Cash + Bank + Mkt. Securities/ Current Liabilities = 0.00034

2019= Cash + Bank + Mkt. Securities/ Current Liabilities = 0.00065
2018= Cash + Bank + Mkt. Securities/ Current Liabilities = 0.00077
ASSET MANAGEMENT TURNOVER RATIOS

INVENTORYTURNOVERRATIO

CGS
InventoryT/ORatio 36.59438018 35.20783668 43.98051
Inventory

46
2020 = Cost of Goods Sold/Inventory = 36.59

2019 = Cost of Goods Sold/Inventory =35.20

2018 = Cost of Goods Sold/ Inventory = 43.98

Analysis:

The Current ratios of the company are shown, and the current ratio decreased in 2020 as
compared to the previous two year (2017 & 2016). The change between 2020, 19 and 18 vary
in between 44. It is showing the liquidation of the company and it’s not bad. Company can
increase this ratio by increasing its Current Assets.

RECEIVABLE TURNOVER RATIO

Sales Account
Receivable Turnover Ratio 1406.256722 4067.589141 3471.481
Receivable

2020=Sales/ Account Receivable=1406.2

2019=Sales/ Account Receivable=4067.5

2018=Sales/ Account Receivable=3471.4

Analysis:

The Current ratios of the company are shown, and the current ratio decreased in 2020 as
compared to the previous two year (2017 & 2016). The change between 2020, 19 and 18 vary
in between 4100. It is showing the liquidation of the company and it’s not bad. Company can
increase this ratio by increasing its Current Assets.

DAYSIN RECEIVABLE

365
Days in Receiveable 0.259554315 0.089733743 0.105142
ReceivableT /O Ratio

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2020=365/ Receivable T/o Ratio= 0.259

2019=365/ReceivableT/ oRatio=0.089

2018=365/Receivable T/oRatio=0.105

Analysis:

The Receivable Turnover Ratio of the company has decreased in 2020 as compared to 2019
and 2018. This is why the company debt to equity ratio is decreased because increase in
debts borrowing and then increase in credit sale which is not a good thing for company.
Because now company is taking more time to recover its debts as compared previous year.
Now outsiders are using company’s finances not the company.

DAYS SALES IN PAYABLE

365
Days Sales in 573.8083662 250.9111932 285.2066
Payable PayableT/ORatio

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2020 =365/ Payable T/o Ratio = 573.80

2019 =365/ Payable T/o Ratio = 250.91

2018 = 365/ Payable T/o Rati = 285.20

Analysis:

The Payable Turnover Ratio of the company has increased in 2020 as compared to 2019 and
2018 which is not a good thing for company because now company is paying its so early as
compared previous year. This is because company wants to increase its credibility. So, this
shows the weakness of the company decrease in receivable turnover and increase in payable
turnover.

MACRO LEVEL RATIOS

TOTAL ASSET TURNOVER RATIO

Revenue
Asset Turnover Ratio 0.04856288 0.055869527 0.46192
Total Assets

2020= Revenue/Total Asset=0.048

2019 = Revenue/Total Assets= 0.055

2018= Revenue/Total Assets= 0.46

Analysis:

The Current ratios of the company are shown and the current ratio decreased in 2020 as
compared to the previous two year (2019 & 2018). The change between 2020, 19 and 18 vary
in between 0.56. It is showing the liquidation of the company and it’s not bad. Company can
increase this ratio by increasing its Current Assets.

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 CAPITALINTENSITY RATIO

Total Assets
Capital Intensity Ratio 20.59185777 17.89884478 2.164879
Revenue

2020=Total Assets/Revenue=20.59
2019=Total Assets/Revenue=17.89
2018 =Total Assets/Revenue=2.16
Analysis:

The capital intensity ratio is increased in 2020 so it signifies that now more assets are
required to generate the sale.

PROFITABILITY RATIOS

GROSS PROFIT MARGIN

Gross Profit Ratio Sales-CGS -2.2164462 -1.8668171 1.86682

Sales

2020 = Revenue-CGS/ Revenue = -2.21

2019 = Revenue –CGS/ Revenue = -1.86

2018 =Revenue -CGS/ Revenue=-1.86

Analysis:
The Gross Loss of the company is increased in 2020 because if sales decrease on the other
hand the cost of goods sold is also decreased.

NET PROFIT MARGIN

Net Profit
Net Profit 7.043277829 5.640709028 5.613309
Revenue

2020 =Net Profit/ Revenue = 7.04

2019 = Net Profit/ Revenue = 5.64

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2018 =Net Profit/ Revenue = 5.61

Analysis:

ThenetLossofthecompanyhasincreasedin2020 as compared to2019and 2018.

Return on Assets

Net Profit After Tax

ROA 704.3277829 -254.6184496 254.618
Revenue

2020 =Net Profit after Tax/Revenue = 704.32

2019 =Net Profit after Tax/Revenue = 254.61

2018 = Net Profit after Tax/Revenue = 254.61

Analysis:

The Return on Assets of the company has increased in 2020 as compared to 2019 and 2018
because now they are not using their assets efficiently and cost of finance is also increased,
and they have decreased the time for account receivable and increased the time for paying
account payable.

Return on Equity
Net Profit After
ROA Tax 704.3277829 -254.6184496 254.618
Revenue

2020 =Net Profit after Tax/ Revenue = 18.93

2019 = Net Profit after Tax/Revenue = 8.928

2018 =Net Profit after Tax/Revenue = 8.92.

Analysis:

The Return on Assets of the company has increased in 2020 as compared to 2019 and 2018.
Because finance cost is increased and debt to equity ratio is increased so the portion which is

51
 borrowed for business is not paid yet so that return on equity is increased.

11. CRITICAL ANALYSIS

11.1 HUMAN RESOURCE PLANNING AND FORECASTING
• Employee Recruitment and Selection
• Training and Development
• Performance Management
• Employee Compensation and Benefits
• Organizational Career Management

Human resource planning and forecasting includes the specific and interrelated activities that to
gather constitutes HRP system:

11.1.1 HR PPROCESS:
• These are steps of HR Pin Muslim Commercial Bank.
• Determining the Objectives.
• Defining skills required to meet the objectives.

• Determine additional human resource requirements.

• Develop actions to meet the anticipated HR needs.

The purpose of forecasting of human resources is to estimate labor requirements at some future
times period. Such forecasts are of two types.

1. The external and internal supply of labor

2. The aggregate external and internal supply of labor

11.1.2 ZERO-BASE FORECASTING:

This method uses the MCB’s current level of employment as the starting point for determining
future staff needs in MCB.

11.1.3 BOTTOM-UP APPROACH:

It is the forecast method in which each successive level of the MCB, starting with the lowest and
forecasts its employee requirements in order to ultimately provide an aggregate forecast of
employee needs.
52
11.1.4 USE OF MATHEMATICAL MODELS
Mathematical models are also used for forecasting HR requirements. It defines relationship
between demand and the number of employees supplied.

11.1.5 SIMULATION
It is a technique for experimenting with a real-world situation through a mathematical model
representing that situation

11.2 JOB ANALYSIS

After planning it is analyzed that which position is going to be filled and their requirement is
analyzed by job analysis:

11.2.1 IDENTIFY CANDIDATES:

MCB identifies its candidates by developing the criteria of job description and job specification
and acting upon these criteria job vacancy ads are spread through different Medias like
newspapers and internet.

11.2.2 SOURCESOFCANDIDATES
I. Transfers:

The employees are transferred from one department to another according to their efficiency and
experience.

II. Promotions:

The employees are promoted from one department to another with more benefits and greater
responsibility based on efficiency and experience.

III. Upgrading And Demotion of present employees according to their performance.

IV. Retired and Retrenched Employees may also be recruited once again in case of shortage
of qualified personnel or increase in load of work. Such people save time and costs of the
organizations as the people are already aware of the organizational culture and the
policies and procedures.
V. The dependents and relatives of Decreased Employees and Disabled Employees are also
done by many companies so that the members of the family do not become dependent on
the mercy of others.

53
11.2.3 EXTERNAL SOURCES

1. Press Advertisement
2. Educational Institutes
3. Placement Agencies
4. Employment Exchanges
5. Unsolicited Applicants
6. Employee Referrals/ Recommendations

11.3 RECRUITMENT AND SELECTION

11.3.1 RECRUITMENT
Recruitment and selection in MCB have many processes and steps that must be followed. Decide
what positions to fill, through personal planning and forecasting
• Build a pool of candidates for these jobs, by Recruiting internal or external candidates.
• Have candidates’ complete application form and perhaps undergo initial screening
Interviews.
• Use selection tools like tests, background investigations, and physical exams to identify
viable candidates.

11.3.2 SELECTION
a) SCREENING AND SHORT LISTING
Many candidates apply for job in response to vacancy ads by submitting their CVs. Selection
board goes through those CVs and selects those candidates who initially fulfill criteria of
selection board. After prescreening selection board short lists, the candidates who are considered
most suitable for job at initial level on the basis of their resume

b) TEST/ INTERVIEW
In this process short listed candidates are called for test and interview according to nature of their
applied jobs. Selection Interview: Selection interview is conducted for short listed candidates. A
selection interview is the procedure designed to predict future job performance on the basis of
applicant’s oral responses to oral inquiries. Formats Used in Selection Interview:

• Structured/ Directed

54
• Unstructured/ Non directed

Modes of Interview:

Penal interview: An interview in which a group of interviewers questions the applicant.

Structured sequential interview: An interview in which the applicant is interviewed

sequentially by several persons; each rates the applicant on a standard form.

c) TYPES OF QUESTIONS:
Situational: A series of job-related questions that focus on how the candidate would behave in a
given situation.

Job related: A series of job-related questions that focus on relevant past job- related behaviors
These types of questions are asked from those candidates who have past experience of job.

Stress: An interview in which the interviewer seeks to make the applicant uncomfortable with
occasionally rude questions that supposedly to spot sensitive applicants and those with low or
high stress tolerance. These sorts of questions are asked according to high designation of
candidate.

Puzzle questions: Recruiters for technical and finance job use questions to pose problems
requiring unique solutions to see how candidates think under pressure.

11.3.3 TESTING
Organizational performance always depends in part on subordinates having the right skills and
attributes. Keep in view this point MCB tries its level best to hire highly skilled and suitable
employee for each job. For judging these skills MCB conducted some tests of employees on the
basis of.

(i) Reliability (ii) Test validity

The consistency of scores obtained by the same person when retested with the identical or
equivalent tests is called reliability and the accuracy with which a test and interview what it
purports to measure or fulfills the function it was designed to fill is referred as validity.

55
TYPES OF TESTS:

Generally, two types of tests are taken MCB:

• Tests of Cognitive ability (mental ability, eye hand co-ordination)

• Physical test

Cognitive Test Abilities Consists of.

Intelligence Tests: Tests of general intellectual abilities that measure arrange of abilities,
including memory, vocabulary, verbal fluency, and numerical ability are intelligence tests.

Aptitude tests: Tests that measure specific mental abilities, such as inductive and deductive
reasoning, verbal comprehension, memory, and numerical ability are aptitude tests.

Stress: An interview in which the interviewer seeks to make the applicant uncomfortable with
occasionally rude questions that supposedly to spot sensitive applicants and those with low or
high stress tolerance. These sorts of questions are asked according to high designation of
candidate.

Puzzle questions: Recruiters for technical and finance job use questions to pose problems
requiring unique solutions to see how candidates think under pressure.

Tests of Physical Abilities: Tests that measure static strength, dynamic strength, body
coordination, and stamina are physical. Job related to guards and deliverers go through this sort
of test.

11.3.4 MCBRECRUITSCANDIDATESINTHREECADRES
• Probationary Officers(entry point for fresh graduates)
• Management Trainees
• Contractual Appointments

11.3.5 Final Selection

After going through all the processes, the best candidates according to MCB’s selection boards
are selected. The candidates, who are finally selected, are offered appointments as probationary
officers, after signing the following bonds
56
 • Bank’s Secrecy Bond
• Bank’s Security Bond
• Service Agreement Bond

11.4 ORIENTATION
Just after final selection and before starting of training process orientation is conducted
forselectedemployeesinorientationnewemployeesareprovidedwithbasicbackgroundinformationab
outthe MCB the basic contents of successful orientation are:

• Information on employee benefits

• Personnel policies

• The daily routine

• Company organization and operations

• Safety measures and regulation

11.5 TRAININGANDDEVELOPMENT
“Trainingistheorganizedprocedurebywhichpeoplelearnknowledgeand/or skills for a definite
purpose”.

MCB has a mix of training

methodologiesforitsemployees.Wecanbroadlycategorizethesem

ethodsintofivegroups:

• Needs analysis: Identify job performance skills needed, assess prospective trainee’s skills,
and develop objectives.

• Instructional design: Produce the training program content, including workbooks, exercises,
and activities.

• Validation: Presenting the training to a small representative audience.

• Implement the program: Actually, training to the targeted employee group.

57
• Evaluation: Assesses the program’s successes or failures.

11.5.1 (A)TRAININGNEEDSASSESSMENT
Needs assessment-Organizational Support-Organizational analysis-Task and KS Analysis-Person
analysis

Instructional Training Validity

 Effective training practices involve the use of an instructional systems design process.
The instructional systems design process begins by conducting needs assessment.
 Needs Assessment refer to the process used to determine if training is necessary!
 Because needs assessment is the first step in the instructional design process:
 If it is poorly conducted, training will not achieve the outcomes or financial benefits the
company expect

Organizational Analysis involves determining:

 The appropriateness of training, given the business strategy

 Resources available for training
 Support by managers and peers for training.

Task Analysis involves:

Identifying the important tasks and knowledge, skill, and behaviors that need to be emphasized in
training for employees to complete their tasks.

PERSONANALYSISINVOLVES:

Determining whether performance efficiencies result formal act of knowledge, skill, or ability (a
training issue) or from a motivational or work design problem.

TRAININGMETHODSUSEDBYMCB

• On-the-job Training

• Off-the-job Training

• Apprenticeship Training
58
 • Informal learning

• Effective lectures

•
11.5.1 (B) PROGRAMSFORTRAININGANDDEVELOPMENT
The Bank has the latest state-of-the-art training facilities at its Training &Development Center
(TDC) and a dedicated training team to look after most of the training needs of its employees.
MCB uses following programs for training and development

• Management Trainee
• Management associate
• Cash officers
• Internships

11.5.2 EMPLOYEE DEVELOPMENT

Employee development is a joint, on-going effort on the part of an employee and the
organization for which he or she works to upgrade the employee's knowledge, skills, and
abilities. Successful employee development requires a balance between an individual's career
needs and goals and the organization's need to get work done. Employee development programs
make positive contributions to organizational performance. A more highly skilled workforce can
accomplish more, and a supervisor's group can accomplish more as employees gain in experience
and knowledge.

11.6 PERFORMANCE MANAGEMENT

It is the description of job-relevant strengths and weaknesses of an individual or a group. Setting
and clearly communicating performance standards and expectations, observing and providing
feedback, and conducting appraisals enable you to achieve the best results through managing
employee performance.

SETTING PERFORMANCE STANDARDS

In MCB, performance expectations are the basis for appraising employee performance. Written
performance standards let supervisor compares the employee's performance with mutually
understood expectations and minimize ambiguity in providing feedback. Having performance
59
standards is not a new concept; standards exist whether or not they are discussed or put in
writing. When observed an employee's performance, supervisor usually makes a judgment about
whether that performance is acceptable. How do you decide what's acceptable and what's
unacceptable performance? The answer to this question is the first step in establishing written
standards.

11.7 PERFORMANCEAPPRAISAL
MCB Pakistan’s performance appraisal system is based on a combination of ‘MBO‘ and
'Enabling Traits' approaches, under which 60% weight age is given to performance goals
discussed and laid out in the beginning of the year.

Another 40% weight age is assigned to enabling personality factors, which are clarified to all
employees by their supervising officers at the start of each year. The system and process flow of
the appraisal process is modified, improved and upgraded from time to time in line with the
Bank's requirements, as well as with industry practices. HR Department notifies all units of the
Bank of the PA system and procedure currently in use. Units are also notified deadlines for goal
setting, form filling, monitoring and final appraisals.

11.8 EMPLOYEE COMPENSATION AND BENEFITS

An organization reward system is a program or scheme which provides incentives for those
individuals or groups who perform well in the organization. This reward system in actual
motivates employees to perform well by attracting with well-designed incentive packages. It
includes anything an employee values and desires that an employer is able and willing to offer in
exchange for employee contribution. Compensation is payment to an employee in return for their
contribution to the organization, that is, for doing their job. Compensation includes topics in
regard to wage and/or salary programs and structures.

11.8.1TYPES OF COMPENSATION AND BENEFITS

For employers, compensation costs must be at a level that both ensures organizational
competitiveness and provides sufficient rewards to employees for their knowledge, skills,
abilities, and performance accomplishments. Balancing these face that the employer can attract,
retain, motivate (ARM) and reward the performance of employees requires considering several
types of compensation.

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11.8.1 (A) FINANCIAL BENEFITS
• Life Insurance
• Disability Insurance
• Medical Allowances
• Pension Plans
• Severance Pay
• Conveyance Allowance
• Bonuses
• Profit Sharing

11.8.1 (B)NON-FINANCIALBENEFITS
Sound Working Environment

• Training and Development

• Job Security
• Pick and Drop Facility
• Sick Leave/Vacations
• Flexible Work Arrangement
• Flex Hours

11.8.2 COMPENSATIONANDBENEFITSINMCB
MCB awards their employees a lucrative (attractive) compensation in return of their tough
mental labor. Apart from basic salaries they are offered many other benefits like:

• Utility Allowance
• Medical Allowance
• Overtime Allowance
• Education Allowance
• House Rent Allowance
• Bonuses

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11.8.3 RESIGNATION
This is the most common way of separation. Employee leaves his job and employment with his
employer to pursue better opportunities; a better position at a better compensation package in a
branded company (or better known company) in a same city and country or in a different city or
different country. So, an employee resigns for:

• Better compensation and benefits

• Higher position/level
• Challenging role
• Tomovefromanunknownorlowlybrandedcompanytoahighlybrandedandreputedcompany
• For foreign or international assignment.

11.8.4 RETIREMENTS
Employees at all levels in MCB get retirement after either the completion of 30years in service
or reaching an age of 60 years. The bank operates the following staff retirement benefit schemes
for its employees:

For employees who did not opt for the new scheme, the bank operates the following:

I. Approved contributory provident fund

II. An approved gratuity schemes

12. SWOT ANALYSIS

12.1 STRENGTHS:
• One of the main strengths of MCB that I think is the faster banking services and more
prominent in banking industry especially in operations and Foreign Exchange. Speedy
services and reasonable services charges are attracting the people to do their business with
MCB.
• MCB has fully computerized control on its banking system due to this facility the MCB is
in the list of highly auto mated bank.
• Internal control and monitoring of the MCB Bank is very effective Quality Control Expert
visits twice a week at bank branches which helps the employees to improve their work.
• Due to fast banking services, prominent banking services and fully computerized computer
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 system resulted in joining of experienced people, advanced management, advance setup
and facilities gave MCB an edge over its competitors.

• Most private banks have still not online all of their branches in Pakistan, but the MCB has
all its branches online. They have wide area network in all over Pakistan, so that they cover
a lot of portions of cash transactions and make customer satisfied
• The Bank has very strict rules and regulations about the customer's complaints. The
customers are treated as very special persons in the Bank.
• MCB has got the Strongest Bank in Pakistan Award 2010.
• MCB also got the Leadership Achievement Award 2010.
• MCB has been awarded as Euro money Award 2008 for the “Best Bank in Asia.
• Best Bank in Pakistan Award: MCB has been awarded the best bank in Pakistan
since2000,2001,
• 2003, 2004,and 2006

12.2 WEAKNESS:
• MCB offers different types of products to the customers therefore majority of people are
not well aware about the products of MCB. For examples if a person wants to open an
account with MCB say it is current, but he does not know what type of Current Account he
should open does not know this the major weakness for the MCB.
• No entertainment facilities are available in the bank when customer visits Bank and wait
for a longer time. These facilities can be the Newspaper. Magazines, etc.
• Outlook of the MCB branches is not attractive to the people.
• In this era of competition most of the banks advertising their different products and services
but no commercial I have seen on any channel regarding their products and services.
• Equality should be observed throughout banking system. There should no discrimination
among the customers. As I observed at the branch where I worked wealthy customers were
given the more entertaining services while the customers who have low investment with the
bank waited for long for their turn.
• At private local banks there is normally transfer of employees after a normal period of one
and a half years or two years while at MCB branch where I did my internship most of the
employees are working more than three years. Job Rotation help the employees to learn
about different segments of the business which I think is missing at MCB.
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12.3 OPPURTUNITIES:
• MCB has got the Strongest Bank in Pakistan Award 2010.MCB also got the Leadership
Achievement Award 2010.MCB has been awarded as Euro money Award 2008 for the
“Best Bank in Asia.
• Best Bank in Pakistan Award: MCB has been awarded the best bank in Pakistan since2000,
2001, 2003, 2004, and 2006.
• These awards create an edge in the mind of people to invest and borrow from this bank.
• Before privatization people were not satisfied with the services of the bank. After the
privatization people have different alternatives to invest and borrow from. The MCB
duetoitsover10 years performance it has the opportunities to attract the customers

12.4 THREATS:
• The decreased purchasing power of consumer in the current economic situation of the
country affecting the business activity speed too much and the result is the low investment
from the investors in new projects can create problem for the hank because it is working a
lot in trade.
• The Competition has become severe by the entrants of so many banks. So to exist one will
have to prove himself in its services through excellent management and will have to satisfy
its share holders. Otherwise, it will he out the market
• New Privates Bank coped with emerging new Technology of IT. This ease of entry in the
market is the threat to the MCB bank.
• Change in government policies has affected the banking business. Still banks have to wait
to get permission from the State Bank of Pakistan. The freezing of foreign currency
accounts is a vital example of letting people not to trust on banks.

64
13. CONCLUSION
With Cooperation of all branch members, I have been able to learn and experience many new
things related to the banking sector and the banks workings. I am able to handle the public with
respect to many different workings on many different instances and also in account opening for
customers and can handle many other tasks as well.

Finally, I concluded that MCB is a good organization for a person for his long-term career
workings. Overall working and environment of the bank is very comfortable, and the staff is very
helpful and respectful of each other, and it still maintains a professional environment.
Management of the bank is very strong.

Employees of MCB Kotlakhpat Garden branch work more than their working hours and all the
workings take place in a very friendly atmosphere that does not induce pressure on the person
working there. It also shows their loyalty and commitment to the organization. This branch of
MCB relatively small and has climbed its way up very quickly and all that only because of the
employee’s efforts and consideration for each other.

14. RECOMMENDATION
• The following suggestions can be recommended to overcome flaws in MCB and to improve
the efficiency for the development of the bank employees Training Programs must be
introduced on continuous basis so that the employees will have understanding with the
latest developments especially with the customers.
• Bank should introduce incentive plans for employees on regular basis so that if employees
will work whole-heartedly for the welfare of their organization. Incentives should be given
on the basis of qualification, hard work, and experience etc. Fresh graduates must be
recruited because the combination of fresh and experienced can produce better results and
will improve the efficiency of management.
• Such system should be designed that every employee who has some problems with his
officers can communicate it to the higher management. This will help in resolving the
conflicts. Recruitments should be strictly on merit basis and induction should be after
proper and extensive raining.

65
 • Working environment, equipment, furniture and staff dressing should be according to
modern banking style. Proper attention should be paid to upgrade customer services.

15. REFERENCES
(CHIEFFINANCIALOFFICER),H.
K.(2018,December).GoogleDrive.Retrievedfrommcb.pk/assets/documents/:https://ww
w.mcb.com.pk/assets/documents/MCB-Bank-IR-Presentation-December-2018.pdf

Bank,M.(2019,september13).MCBBank.Retrievedfrommcbbank(pvt)ltd.:https://
www.mcb.com.pk/about-mcb/vision-mission

OWLER.(2018).Owler.RetrievedfromOwler:https://www.owler.com/company/mcbbankPh

PBB3.(2014).CHOWK.RetrievedfromVCHOWK.COM: www.vchowk.com.

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16. ANNEXES
FINANCIAL ANALYSIS

MCB (PVT) LIMITED

BALANCE SHEET
As at June30, 2021
2020 2019 2018
Particular/ Detail
ASSETS Amount in Rs.
NON-CURRENTASSETS
Property, Plant & Equipment 156030961 166999945 14999945
Long Term Investments 70000 64000 74000
156100961 167063945 15073945
CURRENTASSETS
Stores, Spares & Loose Tools 31501 - -
Stock in Trade 680307 774690 574690
Trade Debts 1804600 1515839 2515839
Loans & Advances 396556 504665 494665
Trade Deposits 100000 - -
Other Receivables 5504 2339 2539
Tax refunds due from Govt. 156683 253414 233414
Cash & Bank Balances 105629 176346 186346
3280780 3227293 4007493
TOTALASSETS 159381741 170291238 19081438
EQUITY&LIABILITIES
SHARESCAPITAL&RESERVES
Authorized Share Capital
15000000(June30,2014:15000000)@Rs.10/-e 150000000 150000000 150000000

Issued, Subscribed & Paid-Up Capital 149580000 149580000 149580000

Accumulated Loss -437533976 -420911735 -420911735
Total Equity -287953976 -271331735 -271331735
LIABILITIES
NON-CURRENTLIABILITIES
Long Term Deposits - 20041401 20041401
Deferred Liabilities 184104 179682 179682
CURRENTLIABILITIES
Trades and Other Payables 70062641 62099023 59099023
Accrued Interest/Markup 162944113 155705135 125705135
Short term Borrowings 39137524 18749706 19749706
Current portion of long term financing 32991000 32991000 33991000
Provision of taxation-net 606816 856410 756410
305742094 270401274 239301274
TOTALLIABILITIES 159381740 170291237 19081438

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MCB(PVT)LIMITED
PROFITANDLOSSSTATEMENT
FortheYearendedJune30,2018
THANKYOU
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