Internship with MCB Bank Limited

Internship with MCB Bank LimitedExecutive SummaryMCB was built-in in 1997 and was later(prenominal) on privatized by the G overnment of Pakistan. The Nishat Group bought the study sh argons of the border and got the rights to adjudge the avers operations. After the privatization of the en self-reliance building, MCB has executed several(predicate) policies to decl atomic number 18 it 1 of the best chamfers of Pakistan they advance cleanfangled-sprung(prenominal) products and function and increase its operations by orifice new splites in Pakistan. Internship rearing is necessary for the degree of MBA as per HEC requirement. It is necessary for me to commit an internship session of nigh 6 to 8 weeks in each organization. I eat up chosen the banking sector beca mathematical function its my priority to play the note in banking sector and its similarly relevant to my area of interest and specialization.I did my octonary weeks internship at MCB Morgah branch, R awalpindi. My flex at MCB was truly an interesting experience. The branch I film chosen for internship is not a real big branch it has moreover four surgical incisions which includes client service incision, clarification part, remittance division and bills part.I welcome operation in in all the departments only when major act as in d superstar in first three departments as internee is not allowed to work dethawly in cash department as per the rule of the bank. This report gives an insight of the departments in which I work.In MCB divergent types of bank bills are opened according to the needs of customers. During my internship project for MCB I experienced close to(prenominal) new amours that I had never experienced before being a student, this document provided details of my achievements in term of pragmatical implementation and accord of working environment in MCB. I stick also learnt the work of the photocopier as I am assisting the officers so its in my duties to do the decamp as requested. I would resembling to highlight this that my experience with MCB was precise memorable and full of learning, where I constitute a haul of in prepareation.MCB is amongst the pi integrityer in introducing the new technology- traveling bagd banking operate. The human resource department of MCB is playing an key enjoyment in its growth.INTRODUCTION1.1 HISTORICAL BACKGROUND OF MCBMCB is among the leading banks of Pakistan who has deposit base of Rs. 400 Billion and total assets over Rs.600 Billion. Built-in 1947, MCB soon pull in the name of a solid and conservative financial institution controlled by the expatriate executives. In 1974, MCB was nationalized.The Bank has a customer base of more or less 4 million, a nationwide distribution ne devilrk of over 1,150 branches and over 600 ambiances in the market.MCB Bank Limited which was previously whopn as Moslem Commercial Bank Limited is not an overnight success story. It was integrate by the Adamjee Group on July 11, 1947 beneath the Indian Companies Act, VII of 1913 as a private bourneed smart set. The bank was established with a face to provide banking facilities to the job people of the South Asia. After the partition of the Indo-Pak subcontinent, the bank moved to Dhaka from where it commenced business in August 1948. In 1956, the bank shifted its registered office to Karachi. Thus, the bank inherits a 60 days legacy of spirit of its customers. MCB was the first bank which is privatized in 1991 the bank was purchased by Nishat Group. Nishat Group is one of the leading business groups in Pakistan.http//www.bankalfalah.com/images/man7.jpgMian Mohammad Mansha is the Chairman of the group he has play active role in success of MCB. In acknowledgment of Mr. Manshas contribution, the regime of Pakistan has awared him with Sitara-e-Imtiaz, which is one of the most prestigious civil awards of the artless.1.2 OBJECTIVES OF MCBCDocuments and SettingsAdministra torMy DocumentsMy PicturesMission_Insert_globe.jpg1.2.1 VISION avouchmentTo be the leading financial services provider, partnering with our customers for a more prospered and secure future1.2.2 MISSION STATEMENTWe are a team up of committed professionals, providing innovative and efficient financial solutions to build and nurture long relationships with our customers. In doing so, we ensure that our shareholders potentiometer couch with confidence in us.1.2.3 hollow out VALUES OF MCBThe core values of MCB are as fallows1.3 ORGANIZATIONAL complex body partFor successful discussion of the branches, MCB has been categorized into three segments with incompatible people handling each category. These categories areCorporate BankingCommercial BankingConsumer Banking1.3.1 ORGANIZATIONAL STRUCTURE OF MCB element WISEMANAGEMENT OF MCBMIAN MOHAMMAD MANSHACHAIRMANS.M. MUNEERV CHAIRMANMOHAMMAD AFTAB MANZOORC executiveTARIQ RAFI handlerSHEIKH MUKHTAR AHMEDDIRECTORMOHAMMAD ARSHADDIRECT ORSHAHZAD SALEEMDIRECTORRAZA MANSHADIRECTORSARMAD AMINDIRECTORMIAN UMER MANSHADIRECTOROVERSEAS BRANCHESMCB has seven overseas branches furthermore, the bank has some proposals under consideration to open more branches in some European countries and as hearty as in Japan chinaTOTAL NO OF BRANCHES7COLOMBO1MARDANA1PETTAH1OBU BAHRAIN1WELLAWATTE1EPZ1KANDY11.4 PRODUCTS AND SERVICES OF MCBPHONE BANKINGMCB SMART CARD wandering(a) BANKINGMCB TRAVELLER CHEQUESSMS BANKINGMCB MONEYGRAMCORPORATE FINANCINGMCB INVESTMENT BANKINGMCB FULL DAY BANKINGMCB dealing BANKINGMCB LOCKERSMCB SAVING 365 ACCOUNTMCB REMIT EXPRESSMCB SAVING XTRA ACCOUNTMCB Islamic BANKINGMCB CURRENT ACCOUNTMCB INTERNET BANKINGMCB BUSINESS ACCOUNTMCB EASY shaft PAYMCB FOREIGN CURRENCY ACCOUNTMCB CAR 4 UMCB WORKING CAPITALMCB ATMMCB DIMINISHING MUSHARIKA(NEW)MCB VISA PLATIUMMCB GURANTEE(NEW)MCB PRIVILIGE BANKINGMCB ISTISNA POST SHIPMET(NEW)MCB BANCASSURANCEMCB moon WEDDINGMCB RETIRE EASYMCB PROTECTION PLANMCB LIFE cooperat orMCB DYNAMIC CASH FUNDMCB KHUSHALI BACHAT ACCOUNTMCB BASIC BANKING ACCOUNTMCB head-to-head LIMITED ACCOUNTMCB PUBLIC LIMITED ACCOUNT2. in conformationation AND see to it2.1 INETERNSHIP SELECTION AND RATIONALE FOR SELECTIONInternship training program during Master in Business administration Program is necessary for the degree of MBA as per HEC requirement. It is imperious for me to do internship of close to 6 to 8 weeks in some(prenominal) organization. I switch chosen the banking sector because I want to gain the practical noesis almost the finance and its in my priority to get the reflect in bank and its also relevant to my area of interest and specialization. I choose MCB because of its prestigious name and reputation. An severalize solid reason of choosing MCB is that my Uncle is also working in MCB, so I puddle a fiber besides.2.2 INFORMATION ABOUT MY BRANCHI did my internship in MCB Morgah, Rawalpindi whose branch commandment is (1389).This branch is previously known as Al-Shifa Branch because this branch is previously in Al-Shifa Eye Hospital recently it was shifted out of the hospital to principal(prenominal) Morgah Chowk. This branch is not a very big branch having lone(prenominal) four primary(prenominal) departments. This is ONLINE branch but have no ATM is installed on it. Its main account holders include Pakistan Oil Field, Fauji Foundation University it has both students fees bill account and faculty accounts.2.2.1 MANAGEMENT OF MY BRANCHMr. ABDUL GHAFOORBRANCH animal trainerMr. BASEER NASIROPERATIONAL MANAGERMr. HAMMADclearing OFFICERMr. MOHSINCASH OFFICERMr. MANSOOR-UL-HASSAN market OFFICERMiss BEENISHG/L OFFICERMr. ARSHADSECURITY guard duty2.2.2 incisionS IN WHICH I WORKI did internship in the MCB online branch for the pointedness of 2 months. During the internship, I have worked at various departments, which are as follows,Customer Service plane sectionClearing Department subsidence Department currency Department.2.2.3 MY JOB DISCRIPTIONMy job is to assists the staff members of the branch at different positions.I have not disposed(p) any separate job and no separate task has been assigned to me.I helped the staff in the occasion matters like filling of different forms, run down filling, photocopying, opening of an account, stamping on vouchers etcBank is a very difficult type of organization and a very sensitive place to work confidentiality and trust is essential. That is the reasons repayable to which many an early(a)(prenominal) areas are still reach less for internees like cash operations, electronic information processing system operations and issues like that.2.3 DETAILS OF TRAINING department WISE2.3.1 customer SERVICE DEPARTMENTIn this department I was under the watchfulness of Mr. Mohsin, who is Customer Relational Officer. In this department Mr. Mohsin has taught me how to deal with the customers, how to fill the account opening forms, KYC forms and to check the balance from t he image parcel though I am not allowed checking the balance because of secrecy problems.LEARNING TASKS PERFORMED IN customer SERVICE DEPARTMENTThe major task make outed by me in this department is that I have opened the accounts of faculty members of FAUJI FOUNDATION UNIVERSITY by personally visiting the university.I have learnt about the opening of an account, the documents required for the opening of the account i.e Personal ID bank bill, Next of kin ID card, valid mailing address, allowance slip in case of salaried person, NTN in case of business account etcI have come to know about the spirit of different accounts and come to know that which account is suitable for which type of the customer like BBA account for salaried persons.How to communicate with the customers and tell the customer about his/her quires and tell the customer about the new products and services offered by the bank.I have learnt how to check the balance from the SYMBOL software though I am not allo wed to check the balance in the absence of CRO.How to preserve a cheque, fill the deposit slip for the cheque and to fill the form for the ONLINE transfer of fund.How to tell the balance on the telephone subsequently(prenominal) right verification.How to reactivate the Dormant Account.I have learnt about the procedure for the matter of ATM card. How to maintain the ATM cards in worthy order.2.3.2 CLEARING DEPARTMENTIn clearing department I worked under the inadvertence of Mr. Hammad and learned a lot from him I have learnt about the innermost and outer clearing.2.3.2.1. MEANING OF CLEARINGIn clearing the banks ex channelize cheques and other negotiable instruments drawn on each other within a specific area and in this manner safe payment for their customers by the Clearing House at precise succession in an well-organized way.2.3.2.2 PARTIES composite IN CLEARING in that respect are basically deuce parties come to in clearing.1. NIFTNIFT stands for National Institutiona l Facilitation Technologies. It is the ease given by the SBP to a private organization named NIFT. The duties of the NIFT includes, to collect the cheques, demand drafts, Pay orders and travelers Cheques, etcetera from all the branches of different banks within city through its carriers and send them to the branches for clearing.2. CLEARING nominateIt is a place where cheques are presented, collected from the bank branch. It is one of the services provided by NIFT to other technical banks. NIFT acts as a clearinghouse.2.3.2.3. TYPES OF CLEARINGThere are basically two types of clearing.OUTWARD CLEARINGIn outward clearing when cheque is received two copies of voucher are prepared, one c opy and instruments on with clearing stamp, realization stamp, add list and two vouchers of clearing abstract are sent to NIFT internal CLEARINGIn Inward clearing instruments received from NIFT are posted in Computers after checking.2.3.2.4. INSTRUMENTS USED FOR CLEARING followers are the Instrume nts utilize in clearing department.Transfer,Transfer Delivery,Clearing,Cheque collectionPay in slip.2.3.2.5. DIFFERENT REASONS OF CHEQUES ravish FROM CLEARINGIn inmost clearing sometimes cheques are not passed due to some reasons then cheques are sent back to NIFT along with cheque return memo. Some of these reasons areCheque is returned because some time it is incompleteCheque is returned if the clearing stamp is required.One another main reason of cheques return is incompleteness or difference in short pants sign from specimenOne reason of returning of cheque is that draftsman stop the payment.Cheques are also returned because of insufficient funds etc.LEARNING IN CLEARING DEPARTMENTMy learning in clearing department was of pursuance thingsI have learnt about the clearing procedure, types of clearing inward outward clearing.I have learnt how to check the cheques.I have learnt the different reasons of returning of cheques from NIFT.I have learnt how to prepare the sheets for clearing.I have learnt how to maintain clearing register.I have also learnt about the instruments used in clearing.I have come to know that the cheques are cleared on the next day.Once the NIFT department collect the instruments, any instruments received after that will be cleared after two days.2.3.3 absolution DEPARTMENTBank Alfalah Remittance2.3.3.1 MEANING OF REMITTANCERemittance is the transfer of resources from one place to another or from one person to another. It is an crucial facility provided by the banks to its customers as well as to its non-customers. Since it is not a free service it is a source of income for the bank. In Morgah branch the head of Remittance Department is Mr Hammad.2.3.3.2 PARTIES INVOLVED IN REMITTANCEThe following four parties are involved in remittance areRemitterRemitteeIssuing bank gainful bank2.3.3.3. TYPES OF REMITTANCERemittance is classified into following four typesINWARD REMITTANCE The instruments received for paymentOUTWARD REMITTANCE Ins truments issues to the responding branches.INLAND REMITTANCE Those instruments which are issue within the country.FOREIGN REMITTENCE Instruments issue from one country to another country.2.3.3.4. INSTRUMENTS USED IN REMITTANCEDemand Draft (DD)telegraphic Transfer (TT)Pay Order (PO)Call Deposit Receipt (CDR)Rupees Traveler Cheque (RTC)MY LEARNING IN REMITTANCE DEPARTMENTI have learned the following tasks in this department,My learning includes how to fill the forms of TT, DD, MT etc.I have worked during the Holy month of Ramzan. Zakat is deducted in this month so the bank gives the facility of CDR to its stanch customers who dont want to give zakat. I have also learnt how to make (CDR).I have learnt about the different instruments used in remittance.I have come to know about the different types of remittance.2.3.4 CASH DEPARTMENTCDocuments and SettingsAdministratorMy Documentsdollar-pakistan.jpgThe cash department is the most important and confidential department of the bank. In cas h department both cash deposits and withdrawals go side by side. In this department I havent perform any task but I have learnt different thing about this department. This department is involved in two activities coin Deposits and Cash payments. The officers in this department are called tellers and there are two tellers in Morgah branch Mr. Ahsan and Mr. Sabir. The phonograph records maintained in the cash department are as fallowCash Receipt BookCash Payment BookCash Balance BookMY LEARNING IN CASH DEPARTMENTI have not performed any task in this department but my learning in cash department includesIn this department I come to know about the Strong Room. Strong style is the room where cash is deposited and stored. The keys of this room are kept by Manager, useable Manager and the cashier.MCB has three categories of cash which are Sorted Cash, Soiled Cash and Unsorted Cash. Sorted cash is issued to the customer, soiled cash is basically destroyed cash which is not issue to cus tomer but sent to allege bank for reissuance.Every Bank has a cash limit which it support store after banking hours like in Morgah branch cash limit is 5 Millions. This amount of cash is insured by the state bank.I have learnt to fill the deposit slip and how to write a cheque for cash withdrawal.The cheque books are kept in the strong room. Internees are not allowed to go in this room.SWOT ANALYSIS OF MCBCUsersusmanDesktopswot_img2.gif2.3.1 inherent ANALYSIS OF MCBInternal analysis of the MCB is the analysis of its strengths and helplessnesses. MCB can enjoy foe advantage on other by increasing its strength and by making strategies to minimize its flunk Following are the main strengths and weaknesses of MCB.STRENGTHS OF MCB carriage can be defined as an area where a company is best at doing something as its competitors do. MCB enjoys the following strengthsMCB was the first privatized bank because of which it has agonistical advantage over other nationalized banks as it is f ree to make any market oriented strategy without political and government pressure.MCB is that it is the oldest private bank that has more than 1100 branches with online branches approx 650. It is the third giganticst bank in Pakistan.MCB is a well conventional bank who has a long record of over 60 days of experience and profitable operation. In MCB the default rate of the customers are very low than other banks like (The bank of Punjab) etc.MCB was the first bank who advanced e-banking and its Traveler cheques have been market leader for the past seven yearsMCB has cope with the challenges of latest technology by introducing the products like Virtual banking, fluid banking etc. MCB has been updated with the market.MCB have diversification of products and services for every type of customers like Privilege account, Debit card, Visa card, Car financing ,Agriculture financing etcMCB invest large about of money on training and development of employees so as to make them keen enou gh to cope up with the coming(prenominal) challenges.MCB has the competitive advantage on the other banks because of its reputation as mete out Winning Bank. MCB win the award of Best Domestic Bank in 2000 and 2001 by euro money.MCB now make a contract with Cirrus who is a subsidiary of MasterCard. This contract with Cirrus will enable the ATM card holder to use his account even when he is out of the country.MCB have faster banking services that are making it more prominent in the banking industry especially in Operations and Foreign exchange. The customer likes this bank not only because of its faster speedy service rather due to reasonable service charges.MCB not only provides high quality services but it also look for the comfort and ease of the clients, MCB always best-loved their customers.WEAKNESS OF MCBWeakness is defined as an area in a company where the company is not as approximate at doing something as its competitors do. MCB has the following weaknessesIn MCB most of the employees lack administrative training as they are not properly educated. Due to fourth-yearity, they have moved up to the Grade-I, II or III positions having hardly masters degrees. Most of the senior staffs are computer shy and unable to operate the computers because of which they cannot apply the newfangled and innovative techniques of management in decision making.The advertisement campaign of MCB is very weak or you can say you hardly see any advertisement. They have to focus on this aspect as electronic media make cracking impact on the customers mind as the latest merchandise campaign of HBL in which they have used a very illustrious character of Mr Bean. MCB should advertise about their products so that customer gets aware about their products.As recently MCB become Centralized which have positives as well as negative aspects as now for account opening form is sent to Head Office Karachi because of which customers have to wait a lot and the account opening procedur e become so much tougher that customers prefer to open their accounts to other banks whose account opening procedure is easier.Another weakness of MCB is the Favouritism and Nepotism in conjure upment or you can say it is the weakness of almost every organization in Pakistan but for bring outment of MCB they have to record the employees on the basis of merit.The overseas branch meshing of MCB is limited. It has only seven overseas branches whereas HBL has twenty overseas branches and NBP has fifteen overseas branches so MCB has to open more branches so as to vie with its competitors.The employees in MCB are not satisfied with the reward strategy. Rewards should be given after the surgical process appraisal. Employees of MCB at branch level are not rightly incite to do their work with full concentration they take the all routine activities as a boring job.The ATM network of MCB is largest ATM network in Pakistan but still there are certain areas that dont have the ATM. Most o f the branches of MCB are computerized but still there are some important branches that dont have computers.The software used by MCB for online purpose is SYMBOL which is excellent but sometime because of link down or disconnect many customers face problems.Another main issue which the employees of MCB face is regarding the work timing. On record the work time is from 9 to 5 but officially they usually go home after 7 or even after 8 because of which their productivity decreases. There is no separate time for launch because of which the employees health and efficiency decreases.2.3.2 EXTERNAL ANALYSIS OF MCBMCB has to varan its environment constantly to cope up with new developments and changes in the environment. A change in the external environment may be all an opportunity or threat. In either case the MCB has to properly use it strengths to avail the opportunities and avoid or minimize the off-putting effects of threats. Following are the main opportunities and threats of MCB .OPPURTUNITES OF MCBIn MCB context following are the opportunities MCB haveMCB can boost its Rupee Travellers Cheques (RTCs) sales by searching for new market segments.MCB can launch new debit card body or can convert the existing ATM cards into a complete debit card.Leasing sector in Pakistan is growing rapidly for the last-place three to four year which gives the bank an opportunity to go fore in this area.MCB can go for the new products launch by different banks like HBL ATM bill payment, UBL Omni Dukan, UBL Business Partner, UBL Selah Mila etcMCB can open new overseas branches to expand its branches and operations to compete with its competitors.MCB can finance to miniscule industries and handicrafts industries and can launch more effective and new well managed online banking system.MCB can also increase Islamic banking to boost the business of the bank.MCB can also go for the student finance service and it can also introduce mobile ATM.THREATS OF MCBThreat can define as a c hange in external environment which if not met with proper strategies will conduce in loss of revenues. In the context of MCBs external environment the following potential threats existMCB greatest threat is from other private commercial banks with sound success e.g. UBL, Alfalah, and HBL etc.The threat which every organization including MCB in Pakistan is facing is of the political and economic instability. Changes in the government policies have mischievously presumeed the banking business as the banks have to wait to get leave of state bank.The war against terrorism has negatively affect Pakistans economy, which may affect MCB.Another threat for MCB is from the prosperous foreign banks. MCB have to upgrade its system and should launch new and innovative products so compete with its foreign competitors.Pakistan is an Islamic state where mostly people are Muslims and are abide by the religious laws which dont allow them to use some features of banks like Interest on deposits so they dont prefer banking culture.The new product like UBL Selah Mila is a great threat to MCB as they are giving discounted mark ups to those customers who have level-headed credit history and trying to get the customers of MCB.The decrease in the purchase power of the customers in the current economic situation affects the banking sector besides much and the result is the low investment from the investors in new projects.RECOMMENDATIONSRecommendations are basically pinning out the weaker areas of the organization and develop strategies to overcome these weaker areas by giving suggestions. After working as an internee in MCB for the period of two months I am able to make the following recommendations for the bank.The most important area where MCB has to improve is its advertisement. MCB should give proper advertisement of its products extensively to create awareness about the products and to capture the large market share.MCB should decorate the branches as the most of the modern banks attract customers with their modern office looks and fresh environment.MCB should recruit the applicants on the basis of merit and skills. The HR department of MCB should not recruit the applicants on the basis of Favoritism and Nepotism.HR department of MCB should give proper training to its employees so that they can cope up with the future challenges and they should plant different workshops for the employees on better communication of staff with customers. In MCB training should be provided with job rotation so as to make the employees talented enough to do others work in case of emergency.MCB should introduce the new, better and transparent reward system because it is very important requirement in order to reduce the problems regarding employee retention and employee motivation.MCB should announce the proper time for base Break, so that the employees do their work more efficiently.The staff should be given some sort of decision making authority that enables the employe es involvement and boosts employees trust and confidence.MCB should also introduce new and innovative products so as to compete with its competitors.ATM machine must be maintained accurately to make it more convenient for the customers and to decrease the work load of the employees especially in the salary days.MCB should solve the problems regarding the link down and disconnection of SYMBOL software in order to provides more convenience to customers. The employees of MCB need more computer training.CONCLUSIONSMCB is using the SYMBOL software which is very efficient. The computerized branches have enhanced the carrying out of the bank. The bank provides a favorable environment for career growth. The bank gives too low rate of interest on deposits because of which customers are shifting to other banks. Recently MCB bank has implemented the centralized system which decreases the efficiency because of hold in work and low employee involvement. The procedure for the accounts opening i s too protracted as now forms are sent to Karachi Head office for approval. The large branch network, ATM installation and change products provide the bank a competitive advantage. The main focus of the bank is their customers and they are providing the customers different diversified products with minimum service charges.Finally I concluded that MCB is the very good organization for the long carrier working. The branch officers are very efficient, skillful, loyal and competent. The officers of my branch are very hard working usually they work more than their working hours which show their loyalty and commitment towards MCB. I found myself very lucky to work with one of the prestigious bank and to get the practical knowledge about MCB and its present scenario. It was a very dispute and informative experience. I came to know about the working of the banking sector and whatever I have learned was very enlightening. I come to know many things like opening of an account, closing of a n account, how to active the dormant account, about the clearance and remittance procedure etc. I came to know the positive working of bank and whatever I studied in the university was a great help and I was able to apply my theoretical knowledge by implementing it during the internship.