INTERNSHIP REPORT ON MCB BANK LIMITED

BRANCH CODE 1878 (ZAIDA)

By

DANYAL AHMAD

Reg. NO:20-03252-09528

Internship report submitted to The University of Swabi, Khyber Pakhtunkhwa,

in partial fulfillment of the requirements for the degree of (BS COMMERCE)

BACHELOR OF STUDIES IN COMMERCE

Government College of Management Sciences Swabi

Affiliated with

THE UNIVERSITY OF SWABI KHYBER PAKHTUNKHWA

(2020-2024)
 INTERNSHIP REPORT ON MCB BANK LIMITED
BRANCH CODE 1878 (ZAIDA)

By

DANYAL AHMAD

Reg. NO:20-03252-09528

Internship report submitted to The University of Swabi, Khyber Pakhtunkhwa,

in partial fulfillment of the requirements for the degree of (BS COMMERCE)

BACHELOR OF STUDIES IN COMMERCE

Approved by:

PROF. ZIA UL ISLAM Internal Supervisor

External Supervisor

MR. FAZAL ULLAH Head of Department

MR. MUHAMMAD WAQAS Internship Coordinator

Government College of Management Sciences Swabi

Affiliated with

THE UNIVERSITY OF SWABI KHYBER PAKHTUNKHWA

(2020-2024)
 LIST OF TABLES
Table No. Title Page No.

Table 1. Common Size Analysis..................................................................................... 23

Table 2. Profit and Loss Account.................................................................................... 25

Table 3. Current Ratio..................................................................................................... 27

Table 4. Assets Turn over Ratio...................................................................................... 28

Table 5. Investment Deposit Ratio.................................................................................. 29

Table 6. Advance in Deposit Ratio................................................................................. 30

Table 7. Interest Earned Ratio......................................................................................... 31

Table 8. Gross Profit Margin Ratio................................................................................. 32

Table 9. Net Profit Margin Ratio..................................................................................... 33

Table 10. Return on Investment Ratio............................................................................... 34

Table 11. Return on Equity................................................................................................ 34

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 LIST OF FIGURES
Fig. No. Title Page No.

Fig 1. Organizational Structure of MCB ...................................................................... 8

Fig 2. Current Ratios ................................................................................................... 27

Fig 3. Assets Turn Over Ratio .....................................................................................

28

Fig 4. Investment Deposit Ratio.................................................................................. 29

Fig 5. Advance in Deposit Ratio ................................................................................. 30

Fig 6. Interest Earned Ratio .........................................................................................

31

Fig 7. Gross Profit Margin Ratio..................................................................................32

Fig 8. Net Profit Margin Ratio......................................................................................33

Fig 9. Return on Investment Ratio................................................................................34

Fig 10. Return on Equity………....................................................................................35

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 DECLARATION

I hereby declare that the internship report submitted to Internship Coordinator,

Department of Management Sciences University of Swabi, is my own original work. I am
aware of the fact that in case my work is found to be plagiarized or not genuine, the
aforesaid has the full authority to cancel my work and I am liable to penal action.

DANYAL AHMAD

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 Dedication

First of all, I would like to present my gratitude to the Allah (SWT) on this
occasion, to my parents, and teachers and all those whom love, encouragement, and help
is always with me, at every step in my life. With parent’s prayers, love and support, the
completion of this internship report became possible. I want to dedicate this report to my
parents, as they always supported and encouraged me through this whole journey with a
lot of love, gratitude and respect.

I am also thankful to all the staff members of MCB Bank Ltd. at ZAIDA Branch.

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 EXECUTIVE SUMMARY

The banking structure in Pakistan comprises of State Bank of Pakistan, all Commercial
Banks in Pakistan, exchange banks, savings banks, cooperative banks, specialized credit
institutions and so on. The state bank of Pakistan is the central bank of the country and was
established on July 01, 1948. The network of bank branches now covers a very large segment of
national economy. The State Bank of Pakistan issues the shares of these periodically. Bank
employees and other common people can also purchase these shares and earn profit. In 1956,
MCB bank Ltd transferred its registered office to Karachi, where the Head Office is presently
located. In April 1991, MCB bank Ltd became Pakistan’s first privatized bank. The corporate
branch at Shahrah-e-Faisal Karachi (SFK) branch is the corporate branch of MCB in Karachi. The
bank is using SWIFT for transfer of information about imports and exports. MCB bank Ltd Zaida
branch has Currently Following three Departments General Banking Department, Advances
Department & Remittance department. To open an account the customer has to meet the general
banking manager with an introducer. The procedure begins with the account opening form to the
customer file i.e. customer’s master file. Before closing any account, bank send letter to the
account holder for informing him that his account is going to be closed. There is need an approval
from higher authority to close any account. Current deposits are those which are payable to bank
whenever demanded by the customer. Bank does not pay any profit on current deposits. The
following are the financial products/services of MCB, PLS Account, Saving 365 Account,
Khushali Bachat Account, Term/ Fixed Deposits and others like, credit cards, traveler cheques
etc. In Remittance department like any other bank MCB also have instruments for transferring of
money, Telegraphic Transfer, Mail Transfer. In cash department both deposits and withdrawals
go side by side. This department works under the accounts department and deals with cash
deposits and payments. This department maintains the following sheets, books, and ledger of
account cash received voucher sheet, cash paid voucher sheet, Paying-in-slip, Cheque book, Cash
balance book. vi Bank provides this facility to the people who need advance money to meet their
requirements. Party dealing with other banks financial condition of borrower business and as a
first step credit proposal is being made. MCB provides advances, which are of two types, Secured
Advances, and Unsecured Advances. MCB usually classified advances in to following types
Agricultural Advances, Commercial Advances, Industrial Advances. Commercial Advances are
of following types Demand Finance, Cash Finance, and Finance against imported goods, Banks
Agriculture division deals with the agriculture advances. Bank provides the Agriculture Advances
in order to enhance and support the agriculture sector of the country. In short, the report provides
detailed overview of MCB bank limited. It is divided into five chapters. Chapter one provides
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background of preparing this report, its scope, limitations, methodology used, and scheme of
report. Second chapter sheds light on the History and functioning of MCB. Chapter three, in
particular, contains information about the departments of the branch of MCB where I have been
placed during the period of my internship. Fourth chapter presents SWOT and Financial analysis
of the bank, and final chapter concludes the report with some valuable suggestions and
recommendations.

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 Acknowledgement

No one is perfect in all the aspects of his life; humans have a mind with limited capabilities. It is
the guidance from the Almighty Allah that shows man the light in the darkness and the person
finds his way in that light. Without the light from the Allah, a person is nothing but a helpless
creation.

The teachings of the Holy Prophet Muhammad (PBUH) were also the continuous source of
guidance for me especially his order of getting knowledge and fulfilling one’s duty honestly, was
key motivational force for me.

With prayers of my parents and support of my teachers, I got enough strengths to complete this
report. I pay high regards to them. I am particularly thankful to my supervisor Prof. Zia ul Islam,
course coordinator Mr. Muhammad Waqas, and Principal Mr. Fazal Ullah, for their help and
support.

I am also thankful to all my friends and class fellows who helped me and provided me support to
complete this hard task.

DANYAL AHMAD
BS(Commerce)

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