MCB Free Internship Report

Introduction To Bank mcb

Muslim Commercial Bank is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks. This led to deterioration in the quality of the Bank’s loan portfolio and service quality. Eventually, MCB was privatized in 1991.




During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its non-performing loans via improved risk management processes
 
 
Vision Statement of MCB


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



Mission Statement OF MCB

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 in us with confidence.



Our Values

These are the standards and principles which determine our behavior and how we interact with our customers and each other:



1. Integrity

We are the trustees of public funds and serve our community with integrity. We believe in being the best at always doing the right thing. We deliver on our responsibilities and commitments to our customers as well as our colleagues.

2. Respect


We respect our customer’s values, beliefs, culture and history. We value the equality of gender and diversity of experience and education that our employees bring with them. We create an environment where each individual is enabled to succeed.



3. Excellence

We take personal responsibility for our role as leaders in the pursuit of excellence. We are a performance driven, result oriented organization where merit is the only criterion for reward.



4. Customer Centricity

Our customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspirations, both realized and unrealized. We make every effort to exceed customer expectations through superior services and solutions.



5. Innovation

We encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our teams work together for the smooth and efficient implementation of ideas and initiatives.



Departments of MCB

I did internship in Gulshan market branch which had the following departments. There was staff shortage hence a few persons were performing all duties. Therefore, there was overlapping of duties.

Organizational Structure of the MCB Branch

However there were following departments.


Ø Current Saving Department

Ø Accounts Department

Ø Remittance Department

Ø Clearing Department

Ø Cash Department

Ø Advances

Ø Customer Relation Department
Account Opening


Application Form

· The customer would like to open his account is required to meet with the manager or second officer, who will give him an “APPLICATION FORM.



Specimen Card

As I have already mentioned about “Signature Specimen Card”. This card contains two signatures of an applicant, applicant A/c no, A/c type, branch code, title of A/c, it will be attached with an application form. Banker uses this card at the time when he receives the cheque; he compares customer’s signature with the signature on the cheque for avoiding fraud.

Manager has every right not to accept this contract if he is not satisfied by the details provided by the customer.



Account Opening Register

· The manager records the necessary details into this register and allots an a/c number from this a/c opening register. This register is maintained for each type of account and the a/c numbers are allotted serially. After opening a saving and current account every applicant’s data is entered into the computer to maintain a safe record and application form is properly filled so that it can be available when necessary.



Cheque Book

· Cheque book is issued to the customer when. the bank accepts the A/C opening application form and letter of thanks is received.



Types Of Customers

Individual

· Only one person can operate this a/c. We can call it a personnel or individual a/c.

· Followings are required to open it.

Ø Signature of customer on back of AOF.

Ø N.I.C photocopy attached

Ø Mention next of kin (nominee)

·
Joint

· In case of joint A/c, applicant mentions that how much person will operate the A/c. Instruction are given for joint A/c such that the account shall be operated by



Any one of us or survivor

· In first case if one of the a/c holders died then the other can operate the a/c individually.



Any two/All of us jointly

· In second case if one of the a/c holders died then the other partner can’t operate this a/c individually without having permission from the court.

· Requirements

Ø Sign of both customers on back of AOF

Ø Sign on joint A/C # mandate

Ø Name and A/C # of introducer

Ø NIC copies of both members.

Ø Mode of operation.



Partnership A/C

· For partnership a/c, along with the application form signature card.Other documents are also needed such as

Ø Partnership deed certified copy

Ø NIC photocopies of all partners.

Ø Partnership mandate for account signed by all the partners

Ø A letter duly signed by all the partners containing the operating instructions of the account also has to be taken.

· In case of addition or withdrawal of any partner a new agreement will be required.



Company Account

For company accounts following documents are required: -

Ø Copy of certificate of incorporation

Ø Memorandum of Association

Ø List of Director’s

Ø Copy of board resolution

Ø Certificate of Commencement of Business

Ø Copies of NIC of Director’s

Ø Company’s Balance Sheet



Letter of Thanks

Bank prepares ‘Letter Of Thanks’ for the new customer. This act promotes good will among the customer.



Pay–In Slip

This slip is used for depositing the additional amount. The bank will accept the Pakistanis notes. All cheques and other instruments should be crossed before they are deposited for credit into the account. There shall be no restriction on number of withdrawals in current account. An account holder wishing to close his account must surrender the unused cheques to the bank. The current account is computerized, thus it generate the statement of account for all account holders periodically. Incidental charges of Rs.50 are beard by the account holder if its credit balance is less than Rs.10000.



Closing of an Account

There are no. of reasons of closing an account. Some are listed below:

Ø If customer desires to close his account

Ø In case of death of one account holder

Ø Bankruptcy of the account holder

Ø If an account contain nil balance or not up to the requirement of rules.

Before closing any account, bank send letter to the account hold for informing him that his account is going to be closed. There is need an approval form higher authority to close any account.



Payment of Cheques

The first work that was assigned to me was Scrutiny of cheques. It is considered, as the simplest work in consumer banking operations, but actually it is not that simple. The cheques that are presented for either payment or for deposit are the main points where most of the frauds occur. There are few points to be noted while scrutinizing a cheque for payment or deposit,

Ø Date of the cheque

Ø Signatures of drawer

Ø Signature of Presenter

Ø Amount in figures and words

Ø Branch stamp

Ø Account number of the drawer

Ø Crossing in favor of any other person

The cheques which are presented for deposit in accounts of customers for them a pay-in-slip is to be filled in and the cheque is presented along with that slip. As the cheques are taken for deposit in customer’s account, a Cheques Receipt Summary is prepared in which cheques are entered according to their category, i.e., Transfer Delivery, Clearance or Collection.

Call Deposit Receipts are also issued to the customers especially before the holy month of Ramzan. The reason is that customers convert their savings from saving account to the PLS account. The reason for this activity is that the customers want to take out there money from the accounts in order to skip the deduction of Zakat. For this purpose, CDR’s were issued having both applicant and beneficiary the same person.

CDRs are issued to the contractors favoring building departments in order to get tenders for various buildings.



Types of Accounts

Current Account

The current account is the most common account and the most preferred amongst business concerns. The theoretical explanation for this would be that they can function more efficiently but since in reality there are no restrictions on any with drawl the only reason we could think of is that current account facilitates online banking which saves time (which in this ultra competitive business world the most precious resource) to a considerable extent. In case of a current account the client does not earn any interest. Current account enables the client to do cash transactions in a more efficient manner.



Features

A sum of Rs. 10000/= in cash as initial deposit is required for opening a current account and the same may be maintained as minimum average running credit balance. No profit is paid on credit balances held in current accounts. The bank reserves the right to allow opening of current a/c at its description. All deposits and withdrawal from a current a/c takes place only at the branch where the account is being maintained. Current a/c cannot be overdrawn, except by prior agreed agreements with the bank. The correspondence relating to current A/Cs should be addressed to manager of the branch where the account is being maintained.

The account holder can draw sums from his account by means of cheque supplied to him by the bank for that particular account. Account holder should take well care of the chequebooks issued to them.



Saving Account

Individuals who wish to earn profit/interest on their investment normally maintain the profit and loss sharing account but in order to earn interest the client is required to keep his/her deposits with the bank for some time. In theory there are some restrictions on withdrawal of money from a Profit and Loss Sharing account but in general banking practice there is no restriction on any with drawl from a Profit and Loss Sharing account. The interest/profit is paid half yearly.



Profit and Loss Sharing Account

PLS saving account having a running minimum credit balance of RS.10000. The bank would be within its rights to make investment of credit balances in the PLS saving accounts in any manner at its sole discretion and to make use of the fund to the best of its judgment in the banking business under the PLS system.



Profit/Loss

The profit/loss will be credited/debited on the basis of its net working results at the end of each half-year. Calculation of products on PLS saving A/c will be made for each calendar month on the lowest credit balance of an account between the close of business on the 6th day and the last day of the month.



Rules for PLS

Ø Account holder can only withdraw sums from his account by means of cheques supplied to him by the bank for that particular account.

Ø Post dated and stale cheques willl not be paid.

Ø The bank reserve to itself the rights to close any account without previous notice any account which has not satisfactory account credit balance.

Ø If the account holder withdrawals the money under 7 days notice, the profit loss earning products will be computed on the monthly minimum balance. Zakat is deducted every year on non-exempted accounts.



Saving 365 Gold

This account is newly developed of MCB and it provides flexibility of saving account to business people. Profit on deposits will be payable on daily product basis on balance of RS. 500,000/- and above. However, if balance in the account falls below RS. 500,000/- on any day, the product will be ignored. There will be no restriction on withdrawal from the account. Zakat and withholding Tax is also applicable on the account opened under this scheme.

Ø Minimum balance is Rs.500,000/=

Ø Below minimum balance, profit calculation ignored

Ø Profit calculated on daily basis

Ø Profit paid on annually basis

Ø Zakat deducted on @ 2.5%

Ø The higher the balance, higher the rate is offered.

Ø Profit calculated on daily basis.

Ø Profit paid into your account every month



Term Deposits

Term deposits are fixation of certain amount of money for a specific span of time. The instrument term deposit is like a slip containing issuing bank name, a/c # to operate on computer, deal #, customer name, reference #, date of issue, amount, rate maturity date etc.



Accounts Department

Every transaction which takes place recorded in the computer so all transactions in different departments are forwarded to account department. Since all vouchers from different departments are forwarded to accounts department so this department tallies all such transactions with current department after maintaining the ledger of each department. The branch where I worked Mr Azeem-ud-din Bukhari was performing these activities. I was not allowed to use software but I observed all the fuctions performed by him. Following are different functions performed by this department:

Ø Preparation of Financial Statements for different time span

Ø Maintain all accounts of different departments

Ø Calculation of profit on different schemes

Ø Calculation of markup on different advances

Ø Preparation Different types of reports for State Bank

Ø Daily position of cash & every accounts

Ø Matching daily summaries of all departments with ledger

As swift software is used therefore all these tasks have become quite simple just it requires posting and then all tasks can be performed by giving computer commands.


 
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