ACKNOWLEDGEMENT
First of all I’m grateful to ALLAH ALMIGHTY, who gives me strength, ability and direction to complete the project in a successful manner, and without HIS help I was unable to perform this task.

And I would like to acknowledge my project counselor my friends they were always guide me and their encouragement always worked as morale booster for me.

I would also like to thank Mr. Muhammad Farooq Ahmad (Operations Manager of MCB) for providing me the opportunity to have an excellent learning experience during my internship. His critical comments on my work have certainly made me think of new ideas and techniques.

ABSTRACT
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 in Pakistan.

In1974 MCB was nationalize along with the other entire private sector bank with 1007 branches over 750 of automated branches, over 550 ATMs in the market. Now the MCB have 1140 branches in Pakistan and 7 branches in a foreign country, like 5 branches in Srilanka, 1 branch in Bahrain and 1 branch in U.A.E.

MCB focus on rationalization of expenses shift of backend processing to increase productivity, improvement of customer service standard, process competence and control the bank has taken the lead in introducing the innovative concept of centralizing the trade services in the county by providing centralize foreign trade services to branches with a view to improve competence, capability and reduce delivery cost.
During the course of internship I learned about different function of bank and performed remittance, account opening department, clearing department and customer service office department during internship.
Finally MCB have a team of committed professional providing innovative and efficient financial solution to create and nurture relationship with there shareholders.

CHAPTER 01
INTRODUCTION
1-1 Brief History:
MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited company. The bank was established with a view to provide banking facilities to the business community of the South Asia. After the partition of the Pak India subcontinent, the bank moved to Dhaka (then the capital of former East Pakistan) from where it commenced business in August 1948. In 1956, the bank transferred its registered office to Karachi, Where the head office is presently located. Thus, the bank inherits a 64 years legacy of trust of its customers and the citizens of Pakistan. MCB Bank is not an overnight success story. It started with a share capital of Rs 30 million which is divided into 3 million ordinary shares of Rs 10 each.

In 1960s decade, he declared as the golden period in Pakistan’s economic and financial development. But in early 1970s the scenario was changed because the separation of East Pakistan. Then with the passage of time the country condition was not good then Government has decided to nationalize the all commercial Banks. Therefore, the Muslim Commercial Bank was nationalized under the Act, 1974 promulgate on January 1, 1974. Then all small banks merged into the large banks and in 1974 the Premier bank was merged into the Muslim Commercial Bank.

In 1991 the Muslim Commercial Bank was privatized and the bank was purchased by an association of Pakistani corporate groups led by Nishat Group. The banks after nationalization came under political and bureaucratic control and deviated from normal banking practices.
Then other government also became aware of the falling standard of the banking sector and decided to privatize all the commercial banks. Banks (Nationalization) (Second modification) Ordinance 1991 was also promulgated to pave the way for privatization of banks in Pakistan.

Mian Mohammad Mansha is the Chairman of the MCB and has played instrumental role in its success.

1-2 Types of Banking:
MCB having large number of network over 1140 branches is operating all over the nation. MCB one of the leading bank of the of Pakistan with a deposit base is more than Rs. 290 billion and total asset of around Rs.400 billion MCB has earned the reputation of material financial institution over the Fifteen years of achievements and growth MCB always focus on growth through improving service quality, investment in technology and people utilizing broad branch network and developing a large and constant deposits. 
MCB consist of different work but mainly are
Corporate
Commercial
Correspondent
Consumer Banking
 Corporate customers include public sector companies which deal with heavy amount and large sector business as well as large local and multinational concerns. MCB looks with confidence and beyond, making stride towards fulfillment of its mission, “to become the preferred provider of quality financial services in the country with profitability and responsibility and to be the best place to work”.

MCB also focuses on Islamic banking system. To play a dynamic role in promotion of Islamic banking and gain customer trust by providing Islamic services to the loyal and common customer. MCB Bank Limited is public limited company listed on Karachi stock exchange, Lahore stock exchange, Islamabad stock exchange in Pakistan under the license number BCD(1)17_66 dated 8th December 1966.

Product line:
There are many products of MCB Bank with extra benefit like,
Loan & Advances:
Bank give the loans and advance payments to those customers which have not money, and give the security to the bank then bank give loans and advance payment to the customer with specific rate of interest.
There are two types of loans
Consumer loan
Commercial and Corporate loan
Chapter 02
1-3Objectives of Banking
OBJECTIVES
The primary objective of the project is to forecast or determine the actual financial status and performance of an organization. Following are important objectives of studying the organization:
To learn about Capital competence, Asset and Liability Management, Interest Rate, Liquidity, Asset Quality & Profitability of bank.

To monitor the competence and effectiveness of the internal control system and Financial Reporting Framework.

Evaluation of the company’s financial condition through the financial statements.

Analyzing savings and investment trends in banking sector.

To examine the Innovations in customer service in banking.

MCB Loan Products:
Car4U
MCB Car4U not only gets a car of your own choice but is also affordable with reasonable mark-up, flexible conditions, easy processing and above no hidden costs.

Business SarmayaThe net profit shows the successful and unsuccessful business. MCB Business Sarmaya offers finance facilities against your house, property, insure a steady cash flow for your business.

Pyara GharMCB Pyara Ghar is an ideal Home Finance from your own bank, that is bank give the home loan to the customer who purchase, rebuild and construct your home.

Easy Personal Loan
MCB Easy Personal Loan provides you with the financial advantage to do things you’ve always wanted to but never had the sufficient funds for. Buy a car. Refurnish your house. Purchase a new any instrument.
MCB AGRICULTURE PRODUCTS
MCB has been providing finance to the agriculture sector since 1973. With the help of our vast branch network, specialized staff posted in the branches, multiple and diversified product range, we cater to the financing requirements of the farming community spread throughout the country and facilitate in achieving increased productivity.

Shadabi Plan
Shadabi Plan caters the financing needs for production activities on the farm which mainly include seed, pesticides and fertilizers along with provisions for miscellaneous expenses like payment of electricity & diesel bills of tube wells, maintenance expenses for tractors and the like items as per list of Eligible items.

Khushali Scheme
Under Khushali Scheme loans/finances are allowed for farm/ non-farm credits which include fixed investments/working capital requirements. Amount of finances sanctioned depend upon the credit requirement and collateral. Financing for land leveling/development, heavy equipments, agriculture machinery, vehicles/transport for agri purpose are covered under this scheme. There may be other development projects proposed by the farmers falling with in the ambit of agri financing, which can be considered under this scheme.

Tractor Finance Scheme
To boost up the mechanized farming in the country, Tractor Finance Scheme is introduced to offer specialized services to farmers. Under this scheme, there is no requirement of minimum land holding because of multipurpose use of tractor for agriculture cum commercial. However, the repayment capacity and potential use of tractor will be evaluated at the time of loan processing.

Chapter 03
Nature of Accounts:
Deposits Accounts:
Bank accepts deposits which are continuous by the bank in different kind of accounts.MCB bank offer these accounts for depositing the funds.

Current Account
MCB Bank gives the different kind of current accounts to provide to the everyday transactional needs of various customers. The different accounts include, the Business Account offering free online transactions, Demand Drafts, Pay Orders and lots of more to meet the day to day business requirements. The Current Life Account which give the security of life insurance free of cost and extra hidden charges.

Saving Account
It offers a wide range of savings products and short term growth & transactional needs. The MCB Bank also gives the profit on saving accounts. Savings Extra is targeted for customers having Rs. 5 million deposit, 365 Gold offers profit rate on daily balance while PLS savings has a lower minimum balance requirement. In addition, a unique product: Smart Savings is an account run only via a debit card, offering a very competitive rate to small savers.

Foreign Currency Account
MCB Foreign Currency Account offers the option of earning attractive returns on your Foreign Currency Investment.

Saving 365 Gold
MCB Savings 365 Gold Account offers you a wide range of attractive profit rates. The MCB Saving 365 calculates profits on a daily product basis and gives you the facility of infinite withdrawals.

Special Term Deposits
The Special Term Deposit offers a short term investment because some customers having more money and everyday he withdrawals the money. MCB Term Deposits offer attractive short term investment options with flexibility, convenience and security.
Business Accounts
MCB Business Account lets you build your business through the accrued savings from discounted transaction fees.

Mahana Khushali BachatMCB Monthly Khushali Scheme provides you with a steady income every month. Just purchase a Monthly Khushali Certificate and you will enjoy a steady income of your total deposit every month.

MCB BANCASSURANCE
MCB Bancassurance has created a one-stop shop for all your financial and insurance needs. Whether you want to save for your child’s education or marriage, for the security of dignity after retirement or gaining maximum return on savings, MCB Bancassurance has a plan just for you.

Flexi Life
Life Partner
Edu Care
Dream Wedding
Capital Sure
Retire Easy
Income Max
Future Assure
Protection Plan
MCB Rupee Traveler ChequeIn 1993 MCB Bank introduced the safe cash payment. The purpose of this service to safe the money during travel. This is called RTC (Rupee Traveler Cheque). If a person wants to out of city then a person go to bank and get the RTC. Then person get the money in out of city through RTC.

MCB Online Services
ATMs
MCB has one of the nation’s largest ATM networks with over 550 ATMs and still growing. MCB ATMs give you 24-hours ease of cash withdrawal, mini-statement, utility bill payment, funds transfer services and much more. With MCB Mobile ATM not only do we provide you with world class banking service but we also provide convenience. Our innovative mobile ATMs ensure that you are given service close to you.

MCB Visa Credit Card
MCB offers a complete suite of Classic, Gold and Platinum Visa Credit Cards focusing on providing superior services, travel privileges and shopping pleasures. It also offers comprehensive insurance and installment plans, reward points and SMS alerts that give a different feel to the world of credit cards. Our other unique features include I Revolve, I Dial, I Switch, I Cash on Call, I Bill which makes MCB Credit Card the only card that is packed with world class features.

MCB Visa Debit Card
MCB Visa Debit Card lets you have access to the money in your account wherever you are, whenever you want, wherever you see the Visa symbol. MCB Visa debit Card is Pakistan’s first chip-based debit card with global acceptance at over 50 million merchants and close to 2 million ATMs across 200+ countries. The MCB Visa Debit Card also offers innovative promotional schemes designed to reward our customers every time they use the card at a Point of Sale (POS) for shopping, dining, fuel, travelling, etc.

Mobile Banking
MCB introduces MCB MOBILE BANKING. MCB Mobile is a quick easy and secure way to recharge mobile phones, transfer money, pay bills and do much more. No need to visit a branch or an ATM anymore, login to www.mcbmobile.com using your mobile phone and start transacting.

Bill Payments
MCB easy bill pay offers to pay your utility and mobile phone bills or re-charge your prepaid mobile phone accounts anywhere, anytime with security and peace of mind. MCB is the only bank that offers you 3 convenient options of making bill payments to PTCL, SSGC, SNGPL, KESC, Mobilink, Supernet, and Ufone.
Online Banking
MCB has a fast growing network of over 1,100 online branches in the country providing Customer’s real time online transaction facilities.

MCB MNET
MNET is an electronic inter-bank connectivity platform for online transactions on ATM and other remote banking channels. It offers other value added services that include a portfolio of e-banking and payment system products as well as management and day-to-day operations of the same. Members include 10 local and foreign financial institutions enjoying ATM sharing and value added services.

Chapter 04
MCB Management:
BOARD OF DIRECTORS
Mian Mohammad Mansha Chairman
S. M. Muneer Vice Chairman
Mr. Tariq Rafi Director
MR. Shahzad Saleem Director
Mr. Sarmad Amin Director
Dr. Muhammad Yaqub Director
Dato’ Mohammed Hussein Director
Mian Raza Mansha Director
Aftab Ahmad Khan Director
Mian Umer Mansha Director
Mr. M. Ali Zeb Director
Dato’ Seri Ismail Shahudin Director
Mr.M.U.A. Usmani (President / CEO)
KEY MANAGEMENT
Audit Committee
Members
Tariq Rafi – Chairman
Dr. Muhammad Yaqub
Dato’ Mohammed Hussein
Aftab Ahmad Khan
Muhammad Ali Zeb
Malik Abdul Waheed
Human Resource Committee
Members
Mian Mohammad Mansha Chairman
Dr. Muhammad Yaqub
Mian Raza ManshaMR. Shahzad Saleem
Mr. M.U.A. Usmani
Risk Management and Portfolio Review Committee
Members
Mian Umer Mansha Chairman
Mr. Tariq Rafi
Mr. Sarmad Amin
Mian Raza ManshaMr. Shahzad Saleem
Business Strategy and Development Committee
Members
Mian Mohammad Mansha Chairman
Mian Raza ManshaS. M. Muneer
Mian Umer ManshaDr. Muhammad Yaqub
Mr. M.U.A. UmaniDato’ Mohammed Hussein
Committee on Physical Planning, IT Systems and Contingency Arrangements
Members
Mr. Sarmad Amin Chairman
Mian Raza ManshaMr. Tariq Rafi
S. M. Muneer
Mr. M.U.A. UmaniSBP Report Compliance Monitoring Committee
Members
Dr. Muhammad Yaqub
Mr. Aftab Ahmad Khan
Mr. M.U.A. UmaniChief Financial Officer
Mr. Salman Zafar SiddiqiCompany Secretary
Mr. Abdus S. Sami
Auditors
KPMG Taseer Hadi & Co.

Chartered Accountants
Legal Advisors
Khalid Anwer & Co.

Advocates & Legal Consultants
HIERARCHY OF MANAGEMENT
2413000268605Grades of Bank
00Grades of Bank

294322519431000
2703830127000SEVP
00SEVP

294322521526500
2703830193675ESEVP
00ESEVP

294322523685500
2760345317500SVP
00SVP

294322528575000
285623038100VP
00VP

2943225-317500
278130077470AVP
00AVP

29432256477000
2703830146050Grade – 1
00Grade – 1

294322519304000
2708275274320Grade – 2
00Grade – 2

294322530226000

262699555245Grade – 3
00Grade – 3

389064531115000227457031115000227457031115000Assistant

Clerical Staff Non- Clerical Staff
BRANCH HIERARCHY
289560051435000center0Branch Manager
00Branch Manager

185293088900Operational Manager
00Operational Manager

289560035814000
184785012700General Banking Officer
00General Banking Officer

289560019113500
1841500297180Cash Teller
00Cash Teller

289560014668500
1847850252730Customer Service Officer
00Customer Service Officer

289560010223500
1847850207645Office Boy
00Office Boy

DEPARTMENTS OF MASOOM SHAH ROAD BRANCH (1186)
The departments are as under
General Banking Department
Clearing Department
Remittance Department
Credit Department
Accounts Department
Foreign Trade
Internal Control Department
CLEARING DEPARTMENT
Clearing means collection of cheques receive from our customers but drawn on other banks. Receiving the instruments deposited by customers posting the amount of instruments in credit of customer’s account if cheque returns from the concerned bank, the customer account is debited. Crossing stamp is put on the instrument and slip given to customer on receipt of the instrument. Clearing stamp and “payee account credited” are put on the instrument and the voucher. Clearing House has provided this facility. Clearing house facilitates different banks, in one city, to get their cheques drawn upon other banks to be cleared.

Cheques lodged in clearing constitute in clearing constitute two types of clearing:
Intercity Clearing
Intracity Clearing
Intercity Clearing
When cheques, TC’s and other negotiable instruments drawn upon other banks like NBP, ABN AMRO of the same city (as Lahore) are presented in Muslim Commercial bank to deposit them in the respective payee’s accounts, these instruments are lodged in outward clearing (o/w clg) of MCB bank.

Procedure of Intercity Clearing
• The name of the branch appears on its face where it is drawn
• It should not stale or post – dated or without date.

• Amount in words and figures does not differ.

• Signature of the drawer appears on the face of the instrument.

• Instrument is not mutilated.

• There should be no material alteration, if so, it should be properly authenticated.

• If order instrument suitably indorsed and the last endorsee’s account being credited.

• Endorsement is in accordance with the crossing if any.

• The amount of the instrument is same as mentioned on the paying-in-slip and counterfoil.

• The title of the account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque).

• If an instrument received other than MCB of Pakistan then special crossing stamp is affixed across the face of the instrument. Clearing stamp is affixed on the face of the instruments, paying-in-slip and counterfoil (The stamp is affixed in such a manner that half appears on counterfoil and paying-in-slip). The instrument is suitably discharged, where a bearer cheque does not require any discharge and also an instrument in favor a bank not need be discharged.

Return Intercity Clearing
• Over writing
• No stamp of clearing or if it is not clear
• No stamp of crossing or if it is not clear
Intracity Clearing
Intracity clearing means cheques drawn on us and presented by other banks. Intracity clearing Branch acts as paying banker. After realization of inward clearing, banks deposits are decreased as bank makes payment to other banks from the balances held by the branch. This realization of Intracity clearing is also referred to as responding to the clearing. Cheques and other negotiable instruments (PO, DD, PS, CDR Etc.) drawn on Muslim
Bank, sent by other banks, constitute the Intracity clearing of MCB.

Procedure of Intracity Clearing
• Instruments with schedules are received from NIFT.

• Amount of each instrument entered is in inward clearing register.

• Instruments are detached and handed over to the deposits and other respective department for checking and payment.

• In case of any instrument is returned, return memo is prepared stating the reason of the return.

• Entry is made in cheques Return register.

• Cheques return charges are recovered from the party as per charges schedule.

Checking / Return of Instruments
• Over writing
• No stamp of clearing or if it is not clear
• No stamp of crossing or if it is not clear
Chapter 05
Various Departments and Their Functions:
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 physical transportation of money from one place to another. Muslim
Commercial Bank of Pakistan transfers money in the following ways.

Pay Order
Demand Draft
Mail Transfer
Telegraphic Transfer
Pay Slip
Call Deposit Receipt
Letter of Credit
Traveler’s ChequeDemand Draft
It is used for payment made outside the city. It is writing on the name of head office accounting entry by drawing branch. When the customer purchases a draft, the drawing branch sends the advice (a copy of DD) to the drawee branch and the original copy of DD is given to the purchaser. On the arrival of advice the drawee branch debits HO account and credits the DD payable account. When the customer comes with the original DD to the drawee branch, his account is credited by debiting the DD payable account.

Pay Order
Payment Orders are issued for the money transfer with in the city. Pay order is made for local transfer of money. Pay order is the most convenient, simple and secure way of transfer of money.

Mail Transfer
A Mail Transfer is a form of remittance in which the amount remitted by a customer or a non-customer is directly credited to the account of the beneficiary with another branch. Move your money safely and quickly using MCB Mail Transfer service. And MCB also offer the most competitive rates in the market. They charges Rs 50/- exchange rate and RS 75/- postage charges on issuing mail transfer. When the money is not required immediately, the remittances can also be made by mail transfer (MT). Here the selling office of the bank sends instructions in writing by mail to the paying bank for the payment of a specified amount of money. Debiting to the buyer’s account at the selling office and crediting to the recipient’s account at the paying bank make the payment under this transfer.

Telegraphic Transfer
Telegraphic Transfer is a form of remittance, which is advised by telegram, telex or fax machines. The fundamental principles of such transfer are otherwise identical with the Mail Transfer. It is the message, which is sent from one branch to another on the order of payer to payee through wire. It is one of the quickest means to transfer fund through the use of telex/fax/internet or cable.

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 and any deviation may jeopardize the bank’s interest. The opening of a new account is the establishment of 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 (CD A/C)
Profit and loss sharing Account (PLS A/C)
Basic Bank Account (BBA A/C)
Fixed Deposit (FDR/TDR)
Account Opening
When a client comes to the bank, and makes a request for opening of an A/C. The officer says that first fill up a prescribed application form. If he/she wants to open a PLS A/C, then he/she has to fill a form according to the account.

Requirements
• ID Card of applicant
• ID Card of father, mother, brother, sister, husband or wife
• Student card (if applicant is student)
• Two photos for illiterate person or those who use Urdu signatures
Documents Attach with A/C Opening Form
• A/c opening form
• Specimen signature card
• Zakat form (for non-Muslims)
• Deposit slip
• Requisition form
Issuance of Cheque Book
After opening an A/C with the bank, the A/C holder once again makes a request in the name of bank for the issuance of a cheque book. The A/C holder mentions title of A/C, A/C number, sign it properly and mentions the no of leaves he requires
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 within his powers as prescribed by the bank’s higher authorities, while some loan applications are submit to higher authorities for their approval.

Some advances are of the following nature
Loan against Gold
Agriculture advance to farmers
Medium term advance for working capital
Long term advance for setting industry
Short term advance to businessman
FOREIGN EXCHANGE DEPARTMENT
This department mainly deals with the foreign business. The main functions of this department are:
L/C dealing.

Foreign currency accounts dealing.

Foreign Remittance dealing.

L/C Dealing
MCB is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction,
MCB Letters of Credit are the best way to do your business transactions.

Foreign Currency Account Dealing
This department deals with the foreign currency accounts which mainly include dollar account, euro account etc.

Chapter 06
Ratio Analysis:
Liquidity Ratios
Current Ratio= Current Asset / Current Liabilities
Current Asset= Cash Balance with Treasury Banks+ Balance with Other Banks+ Lending to Financial Institution+ Investment+ Advances
2013 59946150 1536946 1224638 449006019 248242965 759956718
2012 57420129 1191974 1551472 402068916 239583320 701815811
Current Liabilities= Bill Payable+ Borrowing+ Subordinated Loans+ Deposit and Other Accounts
2013 10138726 38542660 632330286 0 681011672
2012 9896284 78951103 545060728 0 633908115
Years 2013 2012
Current Asset 759956718 701815811
Current Liabilities 681011672 633908115
Current Ratio 1.11 1.1

Interpretation:
This ratio shows how many times current assets cover current liabilities and the strength of the Bank to pay immediate liabilities. It means that Bank assets are good and they can easily pay its liabilities.

Acid Test Ratio:
Acid Test Ratio= Current Asset – Inventory / Current Liabilities
Years 2013 2012
Current Asset 759956718 701815811
Current Liabilities 681011672 633908115
Inventory 0 0
Acid Test Ratio 1.11 1.1

Interpretation:
This ratio shows how many times current assets cover current liabilities and the strength of the Bank to pay immediate liabilities and there is no inventory. It means that Bank assets are good and they can easily pay its liabilities
Net Working Capital Ratio:
Net Working Capital Ratio= Current Asset – Current Liabilities
Years 2013 2012
Current Asset 759956718 701815811
Current Liabilities 681011672 633908115
Net Working Capital Ratio 78945046 67907696
04445
Interpretation:
This ratio shows the current asset of the Bank is good position. It means that Bank assets are good and they can easily pay its liabilities.

Debt Ratio:
Debt Ratio= Total Debt / Total Asset
Years 2013 2012
Total Debt 705277390 664604008
Total Asset 815508371 767074697
Debt Ratio 0.86% 0.86%

Interpretation:
Debt ratio of the Bank is suitable in both years because the Bank assets are Increase gradually. That is beneficial for Bank.

Debt-to-Equity Ratio:
Debt-to-Equity Ratio= Total Debt / Shareholder Equity
Years 2013 2012
Total Debt 705277390 664604008
S.H. Equity 97271718 88876792
Debt-to-Equity 7.25% 7.47%

Interpretation:
Debt-to-Equity ratio is suitable for the Bank because the Total Debt of the Bank is more and equity of the Bank is less. That is not good for Bank.

Time Interest Earned Ratio:
Time Interest Earned Ratio= EBIT / Interest
Years 2013 2012
EBIT 32288205 31641907
Interest 19586279 17889531
Time Interest Earned Ratio 1.64% 1.76%

Interpretation:
This ratio shows that the Bank can pay the interest to shareholders but in 2013 this ratio decrease as compared to the 2012. Therefore efficiency of the bank decreases.

Net Profit Margin Ratio:
Net Profit Margin= Net Profit / Sale x100
Years 2013 2012
NP 21495338 20673002
Sale 65064123 68356191
Net Profit Margin 33.03% 30.20%

Interpretation:
The Net Profit of the Bank has larger and the sale also increases. This is good for Bank.

Return on Asset:
ROA= Net Profit / Total Asset
Years 2013 2012
NP 21495338 20673002
Total Asset 815508371 767074697
ROA 2.63% 2.69%

Interpretation:
This ratio expresses the capacity of earning profit by a bank on its total assets employed in the business. Bank Profit increases because asset also Increase.

Return on Equity:
ROE= Net Profit / S.H.EquityYears 2013 2012
NP 21495338 20673002
S.H.Equity97271718 88876792
ROE 22.09% 23.26%

Interpretation:
This ratio expresses the return on shareholders equity. ROE is a direct measure of returns to the shareholders. It means Net Profit of the Bank increase as compared to the Shareholder equity as mention in above ratio. There is 1.17 % decrease in Return on Equity
Fixed Asset Turnover:
Fixed Asset T/O= Sale / Fixed Asset
Years 2013 2012
Sale 65064123 68356191
Fixed Asset 28595338 23738454
Fixed Asset T/O 2.27 2.87

Interpretation:
This ratio indicates how well the fixed assets are being utilized. This ratio expresses the number to times the fixed assets are being turned over in a stated period. But in 2013 the Bank less utilizes the fixed assets as compared to the 2012.
Total Asset T/O:
Total Asset T/O=Sale / Total Asset
Years 2013 2012
Sale 65064123 68356191
Total Asset 815508371 767074697
Total Asset T/O 0.079 0.089

Interpretation:
This Ratio represents the amount of revenue generated by a company as a result of its assets on hand. In this bank total assets turnover ratio is decrease because total asset increase and sale decrease.

Dividend per Share:
Dividend per Share=Dividends / No. of Outstanding Share
Years 2013 2012
Dividends 932717 1197615
Outstanding Share 10118461 9198601
DPS 0.092 0.13

Interpretation:
Bank paid the dividend in 2013 9.2% but in case 2012 bank paid the dividend 13%. The reason is that outstanding shares is increase in 2013 but decrease the dividends as compared to the 2012.

Earning per Share:
EPS= NP-Preferred Dividend / No. of Outstanding Shares
Years 2013 2012
NP 21495338 20673002
Outstanding Share 10118461 9198601
Preferred Dividend 0 0
EPS 2.12 2.24

Interpretation:
Bank has no preferred dividend because it is a public company and which provide the dividend to the common share holders. In 2013 2.12% and 2012 Bank give the dividend 2.24%.

Book Value per Share:
Book value per Share= S.H.Equity – Preferred Stock / No. of Common Shares
Years 2013 2012
S.H.Equity97271718 88876792
Outstanding Share 10118461 9198601
Preferred Dividend 0 0
B.V per Share 9.61 9.66

Interpretation:
This Ratio tells about the share which Bank give to the Share Holders. It should be maximum. Book value per share of the bank has decreased as compared to the 2012. There is minor change in outstanding shares. This is also good for Bank.

Chapter 07
What I Learned During Internship:
Chapter 08
SWOT Analysis:
Strengths:
Customized Solution
Automatic Operations
Full Day Banking
Mobile Banking
Electronic Funds Transfer
Wide Country Branches Network
Strong Potential For Growth
Steady Increase in Customer Deposit
Weaknesses:
Old Employee Appraisal System
Gap Between Employees and Customer
Lack of Proper Training
High Charges
High Employee Turnover
Less Efficiency Symbol System Due to Dis-Connectivity
Opportunity:
Overseas Operation
Growing Market
New Product and Schemes
E – Banking
Increase in Branch Network
Extra Benefit to the Employees
Improve the Banking System
Threats:
Instability
Economic Condition of Country
Competitors
Technological Factor
Political and Legal Forces
Increasing Banking Sectors
Conclusion
MCB bank is an organization is well managed with organizational structure and efficient employees due to its growth it has bright future in banking organizations.MCB 
Follow mission statement:
I have concluded that MCB is fully devoted, motivated and aimed to do exactly what is mentioned in its mission statement.

Face the challenge:
MCB has the capability to face the challenges of present self-motivated word. MCB is making progress by leaps and bounds. Innovation in collaboration with creative ideas is taking it to new heights, enabling it to touch climax.

Co-operative staff:
Model town branch of MCB have very co-operative Skilled and highly talented staff. The staff is keen to provide best services to the customers in most efficient and effective way.

Relationship with customers:
MCB aims to make long term relationships with customers, therefore building profitable relationship with them.

Orientation towards employees:
MCB considers its employees the most important asset of the whole Organization. So in order to retain this asset as such, MCB’s management fully encourages and motivates their employees. Special packages, rewards, bonuses etc are awarded to deserve employees, and this also motivates the other employees.

Good communication with there customers
Provide complete information to there customer
MCB have well organized environment
MCB do not allow any relaxation to there employees in working hours.

Behavior of the Manager as well as staff is very good.

Finally I concluded that MCB’s crossing towards success of heights is going on. If it keeps on moving as so, soon it will touch maximum recognition. Even away from the imagination.

Recommendation ; Suggestion
According to my judgment following are the recommendations and suggestions for the bank on the basis of my observations in branch and ratios analysis.

MCB should appoint at least one HRM officer at every branch for dealing HR related work.

I would recommend that every employee must work in every department for some time to insert knowledge of all the departments as job rotating. Employee should be trained with different training program.

Working capital of Muslim commercial bank is negative its means bank can not pay there short term obligations I recommended that Muslim commercial bank need to positive there working capital.

The Bank takes the all necessary steps to ease to their customer like the better environment according to their needs and wants. Customer problems are also be taking under observation like the too much time taking for the payment of the cheque.

Efficient cost-control procedures may limit the growth of operating expenses leading to higher operating profit margin. Banks poorly managed their operating expenses. Further improvement may be necessary to enhance ROE development.

MCB Islamic Banking needs a research, which should be engaged in evaluating and interpreting the ways in which the bank can flourish more and more.

In Agriculture loan Sector, MCB mainly serving in Punjab province. Agriculture loans facility should be provided to all other provinces of Pakistan as well.

MCB Bank Ltd Pakistan’s largest lender by market value should plans to expand overseas and add branches and employees at home even as economic growth slows after the worst floods in the nation’s history. Increase staff as it expands trade financing, remittances management and mobile-banking operations.

Future prospects of the organization
 “To be the leading financial services provider, partnering with our customers for a more prosperous and secure future”
MCB bank is a leading commercial bank of Pakistan. The year 2013 is expected to pose a more challenging environmental than a 2012. MCB is fully geared to not only maintain its growth pattern but would also increase its share in the industry through the introduction of a series of electronic based products, introduction of Consumer Financing to increase volumes and risk diversification.

MCB bank is in procedure of launching more innovative product which will help in MCB bank growing more.

As the size of MCB is very large and it comes under the five largest banks there are lot probabilities of growth for MCB due to its strength.

Now MCB bank open new branches
Expand there business more and more
Introduce more electronic based products
MCB focus on outstanding services
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