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Internship Report on MCB Bank Ltd
Introduction of MCB Bank Limited
MCB is one of the top banks of Pakistan with a deposit base of Rs.
491 Billion and total assets over Rs.653 Billion. Inorporated in 194!"
MCB soon earned the rep#tation of a solid and #nadvent#ro#s
finanial instit#tion $ana%ed b& e$i%rant e'e#tives. In 19!4" MCB
was nationali(ed alon% with all other private setor banks. )he Bank
has a #sto$er base of appro'i$atel& 4 $illion" a nationwide
distrib#tion network of over 115* branhes and over 6!6 +)Ms in the
$arket. Before ta' profit 31.4,3 billion whih is lar%est a$on% all
banks in Pakistan.
Vision Statement
o )o be the leadin% finanial servies provider" partnerin% with
o#r #sto$ers for a $ore prospero#s and se#re f#t#re.
Mission Statement
o -e are a tea$ of o$$itted professionals" providin% innovative
and effiient finanial sol#tions to reate and n#rt#re lon%ter$
relationships with o#r #sto$ers. In doin% so" we ens#re that
o#r shareholders an invest with onfidene in #s.
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Historical Overview
Formation:
o MCB /for$all& M#sli$ o$$erial bank li$ited0 Bank
i$ited o$pleted his 65 &ears in the field of bankin% 2#ite
s#essf#ll&. MCB was for$ed in 1946 in Cal#tta. )he
re%istered offie of the bank transferred to arahi in
194,.ow its prinipal offie is shifted at ahore and re%istered
offie at Isla$ +bad.
Change of ame:
o )he na$e of bank has been han%ed fro$ M#sli$ Co$$erial
Bank td to MCB Bank td.
Shifting of Head Office:
o In **, the head offie of MCB was shifted to ahore in a
newl& onstr#ted b#ildin%" na$el& MCB o#se" loated at 7ail
Road" fro$ arahi.
Main !roducts and Services
"e#osito Bank aepts deposits whih are $aintain b& the bank in different
kinds of ao#nts. MCB bank offers these ao#nts for depositin%
the f#nds.
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Current $ccount
o MCB Bank offers a variet& of #rrent ao#nts to ater to the
ever&da& transational needs of vario#s #sto$ers.
Savings $ccount
o MCB savin%s ao#nts offer attrative profit rates as well as
fle'ibilit& to transat.
%erms "e#osit
o MCB )er$ 8eposits offer attrative short to $idter$
invest$ent options with fle'ibilit&" onveniene and se#rit&.
Loans and $dvances
o Banks %rant loans to the spenders so MCB bank also %rant
different kids of loan to different #sto$ers
Consumers Loans:
o MCB bank offer loans for personal #se to the individ#als or %ro#p
of people it will be %ranted on the ino$es of the desired
individ#als.
Commercial and Cor#orate:
o
MCB also offer o$$erial loans to the individ#al and %ro#p of people it will %ranted on the in three wa&s as #nder
o Hothecation: In this ase ownership and possession in na$es
and hands of lient.
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o !ledge: In this ase ownership and possession in na$es and hands
of bank.
o Mortgage: In this ase ownership in na$es of bank b#t possession
in hand of lient.
'unning Finance:
o It will be iss#e on h&po bases and personal %#arant& is re2#ired for
it.
'unning Finance Instant:
o It will be iss#e on pled%e bases and personal %#arant& is re2#ired
for it.
Cash Finance:
o It will also iss#e on pled%e base pled%e and personal %#arant& is
also re2#ired for it.
Cash for Cash:
o It will also iss#e on pled%e bases b#t in this ase pled%e assets
$#st be li2#id and personal %#arant& is also re2#ired for it.
"emand Finance:
o It will be iss#e on $ort%a%e bases and personal %#arant& is also
re2#ired for it.
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Others !roducts and Services
MCB Visa Credit Card
o MCB offers a o$plete s#ite of Classi" :old and Platin#$
;isa Credit Cards fo#sin% on providin%" s#perior servie"
travel privile%es < shoppin% pleas#re.
MCB Smart Card
o MCB =$art Card is the ke& that enables aess to onvenient
bankin% servies.
MCB 'u#ee %ravelers Che(ue
o R#pee )ravelers Che2#e" bein% the $arket leader" is the $ost
widel& aepted wa& to pa& ash for travelrelated p#rposes.
MCB $%Ms
o MCB has one of the nation>s lar%est +)M networks with over
45* +)Ms and still %rowin%.
MCB Mo)ile $%M
o MCB Mobile +)M not onl& provides world lass bankin%
servie b#t also provide onveniene.
MCB SMS Banking
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o =M= an&ti$e to %et infor$ation re%ardin% balane" $ini
state$ents and redit ard related infor$ation one &o#r ard is
linked.
MCB Mo)ile
o MCB Mobile is a 2#ik eas& and se#re wa& to rehar%e $obile
phones" transfer $one&" pa& bills and do $#h $ore.
MCB Call Center
o )here?s no easier wa& to bank than the new enhaned 4@!
MCB Call Center" whih blends innovation and onveniene to
provide Bankin% =ervies that %o be&ond e'petations.
MCB Investment Services
o MCB Invest$ent =ervies offer distrib#tion of $#t#al f#nds
$ana%ed b& the leadin% f#nd $ana%ers of Pakistan
MCB $dvisor& Services
o MCB also provide finanial advisor& servies" o$$erial
str#t#rin% s#pport and aess to apital reso#res to help
o$panies s#essf#ll& finane their b#siness@proAet.
MCB Lockers
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o okers of different apaities are available nationwide.
MCB Banc assurance
o MCB Ban ass#rane has reated a onestop shop for all &o#r
finanial and ins#rane needs.
MCB Local 'u#ee "rawing $rrangement
o )ransation Bankin% 8epart$ent at MCB provides oal
R#pee 8rawin% +rran%e$ent" a prod#t for s$all banks and
finanial instit#tions.
MCB Home 'emittance
o MCB o$e Re$ittane provides a fa#ltless inflow of forei%n
re$ittanes redited in the benefiiar&?s ao#nt within
$in#tes.
MCB *(uit& Ca#ital 'aising
o MCB offer apital for their lients b& offerin% o$$on or
preferred e2#it& to p#bli or private investors" thro#%h initial
p#bli offers" offers for sale" ri%hts iss#es and private e2#it&
plae$ents
MCB Islamic Banking
o MCB Isla$i Bankin% provides Reba ree and =arah
Co$pliane servies to a variet& of #sto$er se%$ents
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Organi+ational Structure
Introduction
o )o the best of $& knowled%e and fro$ different so#res here #nder
str#t#re of Mana%e$ent of MCB Bank is e'plained below.
Chairman
o Mian Moha$$ad Mansha
Vice Chairman
o Mr. =. M. M#neer
!resident , C*O
o Mr. M..+. s$ani
Chief Financial Officer:
o Mr.=al$an Dafar =iddi2i
!rinci#al Office:
o MCB 15 Main :#lber%" ahore
'egistrars and Share 'egistration Office:
o MCB 15 Main :#lber%" ahore
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M@s. ) +ssoiates /Pvt.0 i$ited
=tate ife B#ildin% o.3"
8r. Dia#ddin +h$ed Road" arahi
Hierarch& of Management
ere #nder hierarh& of MCB Bank i$ited is listed in
downward inte%ration /fro$ #pper to lower hain of o$$and0
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Cor#orate !rofile
ames "esignations
Board of "irectors
Mian Moha$$ad Mansha Chair$an
Mr. =. M. M#neer ;ie Chair$an
Mr. M..+. s$ani CEF @ President and Me$ber
Mr. )ari2 Rafi Me$ber
Mr. =hah(ad =alee$ Me$ber
Mr. =ar$ad +$in Me$ber Me$ber
8ato seri Is$ail =hah#din Me$ber
Mian Ra(a Mansha Me$ber
8ato> Moha$$ed #ssein Me$ber
Mr. +ftab +h$ad han Me$ber
Mr.Man(ar M#shta2 Me$ber
Mian $er Mansha Me$ber
Mr.+h$ad +l$an +sla$ Me$ber
$udit Committee
Mr. )ari2 Rafi Chair$an
8ato =eri Is$ail =hah#din Me$ber
8ato> Moha$$ed #ssein Me$ber
Mr. +ftab +h$ad han Me$ber
Mr.+h$ad +l$an +sla$ Me$ber
Mr. Malik +bd#l -aheed Me$ber
Human 'esources Committee
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Mian Moha$$ad Mansha Chair$an
Mr.+h$ad +l$an +sla$ Me$ber
Mian Ra(a Mansha Me$ber
Mr. =hah(ad =alee$n Me$ber
Mr. M..+. s$ani Me$ber
'isk Management - !ortfolio
'eview Committee
Mian $ar Mansha Chair$an
Mr. Man(ar M#shta2 Me$ber
Mr. =ar$ad +$in Me$ber
M+ s$ani Me$ber
Mian $er Mansha Me$ber
Committee on !h&sical !lanning.
I% S&stem - Contingenc&
$rrangements
Mr. =ar$ad +$in Chair$an
Mr. =. M. M#neer Me$ber
Mr.$ar Me$ber
Mian Ra(a Mansha Me$ber
Mr. +bd#l arid Bin +lias Me$ber
Mr. M..+. s$ani Me$ber
Business Strateg& - "evelo#ment
Committee
Mian Moha$$ad Mansha Chair$an
Mr. =. M. M#neer Me$ber
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8ato? M#ha$$ad #ssain Me$ber
Mian Ra(a Mansha Me$ber
8ato =eri Is$ail =hah#din Me$ber
Mr.+h$ad +l$an +sla$ Me$ber
Mian $er Mansha Me$ber
Mr. M..+. s$ani Me$ber
'isks faced )& the )ank
S&stematic 'isk:
o In finane ter$s s&ste$ati risk are $arket risk" a%%re%ate risk" or
#ndiversifiable risk" is the risk assoiated with a%%re%ate $arket
ret#rns. )his risk sho#ld not be onf#sed with s&ste$i risk
bea#se risk of loss fro$ so$e shatterin% event that ollapses theentire finanial s&ste$.
/ns&stematic 'isk:
o In inane ter$s #ns&ste$ati risk are speifi risk" idios&nrati
risk" resid#al risk" and diversifiable risk these are the o$pan&
speifi risk in a portfolio whih is #norrelated with a%%re%ate
$arket ret#rns. ere #nder so$e of these risk are as #nder
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Credit 'isk:
o MCB fae redit risk it arises fro$ dealin%s with individ#als"
orporate" finanial instit#tions" soverei%ns et.
o Market 'isk:
o MCB fae $arket risk whih arises fro$ han%es in $arket
rates s#h as Interest Rates" orei%n E'han%e Rates and E2#it&
Pries et.
Li(uidit& 'isk:
o MCB fae also li2#idit& risk it ter$s as the abilit& to f#nd
assets and $eet obli%ations as the& beo$e d#e.
O#erational 'isk:
o MCB also fae operational Risk s#h as loss res#ltin% fro$ an
inade2#a& or a fail#re asribable to people" proesses"
tehnolo%& or e'ternal events.
Com#liance 'isk:
o MCB also fae the o$pliane risk that is si$ilarit& between
the o$pan& poliies" r#les" and har%es et with =BP
%#idelines.
'e#utational 'isk:
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o In $& opinion MCB $a& not fain% rep#tational risk that is past
bad ond#ts b& the bank and has %ood reor%ani(ation a$on%
the all o$$erial banks whih are operatin% in Pakistan.
Securit& risk:
o MCB and its e$plo&ees also fae se#rit& risk it is a risk bein%
o#r ille%al ativities of individ#als or %ro#p fro$ and o#tside
the or%ani(ation.
Securit& s&stem
+bove $entioned se#rit& risk is $iti%ate b& establishin% a se#rit&
s&ste$. In Branh offie where I work has se#rit& s&ste$ whih are
as #nder
Securit& 0uard:
o In plae of MCB where I spend $& si' weeks in trainin% has a
se#rit& depart$ent" se#rit& %#ards are hired for $iti%atin% the
se#rit& risk.
MCB Com#uteri+ed Card:
o Ever& one in head offie has a o$p#teri(ed ard on whih his
detail are printed b#t also it serve as se#rit& ode that witho#t
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it ever& door is losed for &o# bea#se a hip is in plae in this
ard.
Management Information S&stem
MCB has %ood infor$ation s&ste$ in plae whih provides
infor$ation needed to $ana%e or%ani(ations effetivel&. )hese are
re%arded to be a s#bset of the overall internal ontrols proed#res in a
b#siness" whih over the appliation of people" do#$ents"
tehnolo%ies" and proed#res #sed b& $ana%e$ent ao#ntants tosolve b#siness proble$s s#h as ostin% a prod#t and servie.
MCB #se MI= s&ste$ all over the Pakistan between Its branhes
na$in% =GMBF= and na$in% FC= within CRC8. )hese are
FR+CE based software.
*m#lo&ees Integrit&
Inte%rit& of e$plo&ees is si%nifiant and the $ost i$portant ele$ent
bea#se witho#t it the b#siness owner annot o#nt on reeivin% the
res#lts e'peted and pro$ised. MCB has proper ode of Ethis and
ond#t si%ned b& all the e$plo&ees? ats as a %#ide for the$ in
dishar%in% their d#ties and sets o#t the standards of %ood bankin%
pratie.
In MCB Bank hi%h de%ree of %ood %overnane" transparen&" #lt#re
of e'ellene and ao#ntabilit& as well as ens#rin% the hi%hest level
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of professionalis$. Controls and Co$pliane is an inte%ral internal
f#ntion and are is taken to ens#re that all ativities are arried o#t in
aordane with prevailin% re%#lations so that the interests of all o#r
stakeholders are proteted.
Loaning s&stem
ere #nder the proed#res #sed b& the MCB Banks for advanin%
loans to the #sto$ers here #nder
Customer:
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o + #sto$er is a person whih want to obtain loan fro$ bank he
ontat with the loanin% and advanes offier in branh where his
ao#nt is open. + #sto$er an be a ons#$er" o$$erial or
orporate.
Branches:
o MCB has lar%e n#$ber of branhes all over the Pakistan these
initiall& response to #sto$er and also has diret ontat with the
#sto$er. )he& fill the all neessar& file work with the #sto$er
nor$all& these do#$ents are obtained
o + /oan +ppliation or$0
o BB= /Borrower Basi at =heet0
o CIB /Credit Infor$ation B#rea#0
o CIC /Co$p#teri(ed ational Identit& Card0
o In Case of Cons#$er" Ino$es =tate$ent of the Cons#$er and
ollateral do#$ents are also obtained.
o In Case of Co$$erial and Corporate Partnership 8eed"
Me$orand#$s of the Co$pan&" inanial =tate$ent fro$
approved a#ditor and ollateral do#$ents are also obtained
$##roving $uthorit&:o +fter o$pletin% the neessar& re2#ire$ents branhes forward
these do#$ents to the approvin% a#thorit&. )hese do#$ents are
heked b& the a#thorit& and forward to the le%al depart$ent.
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Legal "e#artment:
o In this depart$ent le%al aspet of loan is overed and ativities like
hekin% or reviewin% the le%al owner of the ollaterals are
perfor$ed.
Credit 'isk Control "ivision
o +fter the le%al depart$ent all the ativities are perfor$ed b& the
CRC8 and loan iss#in% order is $ade after reviewin%" $aintainin%
do#$ents and ontrol after the loan.
o +ll the ori%inal do#$ents are a%ain reviewed b& the 8./8o#$ent
nit0
o IB or$s /Isla$i Bankin% or$s0 are prepared b& the 8.
/8o#$ent nit0
o Fn the bases of +F/+pproval of inane0 whih is iss#ed b& the
approvin% a#thorit& a +/ailit& +dvisin% etter0 is prepared b& the
M /Monitorin% nit0o )hen three set of + and IB or$s are sent b& CRC8 with the help
of C= /C#sto$er =ervies nit0 to branhes and ori%inal do#$ents
are sent to the C /C#stodial nit0.
o )hese three sets are one for #sto$er" seond for branh and third for
the CRC8 whih is also plaed in C.
o +fter the si%nat#re of #sto$er set of these do#$ent are retained b&
the eah part&.
Loan 0ranted:
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inall& loan %ranted b& the bank after o$pletin% these proess 8+C
/8isb#rse$ent +#thorin% Certifiate0 is iss#ed b& the approvin% a#thorit&
and sent b& the C= to branhes then branhes release approved a$o#nt.
'oles - 'es#onsi)ilities
1. Branch Manager
+ Branh Mana%er is a sole in har%e of branh bankin%. In MCB a
branh $ana%er is responsible for %rowth in deposits" advanes sales
et. e also pla&s vital role in s$ooth workin% of branh" ontrol over
e'penses %enerate ino$e. e $akes it possible that servies are
bein% provided to the satisfation of #sto$ers.. Branch O#eration Manager
)he role of operation $ana%er is ver& i$portant. +n operation
$ana%er is ontroller of branh internal workin%. e has to ens#re
that total workin%@ativities are bein% done aordin% to presribed
proed#res set down b& the bank. e also has to settle all a#dit iss#es
and staff $atters. e also keeps reord of se#rit& stationar&. Iss#es
he2#e books" R)Cs and other se#rit& do#$ents. e is also
#stodian of +)M ards.
3. Credit Officer
+ redit offier is the in har%e of branh advanes he $aintains
reords of loans. e proesses redit proposals $aintains redit files
he2#es the banks h&potheated@pled%ed stoks. e also looks after
le%al ases@iss#es.
4. Clearing Officer
+ learin% offier proesses learin%. e also keeps reord of o#t
station he2#es" inward learin%. e also works as dispather@reeiver
of dark.
5. 0eneral Banking Officer
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:eneral bankin% offier perfor$ postin% of vo#hers in o$p#ter
s&ste$s@led%ers. e also assists the #sto$ers in fillin% of deposit
slips and other appliations.
61 Customer Services Officer
C#sto$er servies offier is basiall& reeptionist. e welo$es the
#sto$ers" attends their alls@balane in2#ires. e opens the new ao#nts of
the #sto$ers. e $aintains the +)M ard reord of #sto$er.
!. Cash Officer
+ ash offier or teller reeive ash fro$ #sto$ers post their vo#hers in
the s&ste$. Make pa&$ent of he2#es ollet #tilit& bills. e keeps reords
of ash. e is also #stodian of the ash.
"e#artment of MCB:
MCB provided different servies to their #sto$er. )o f#ll& satisf& their
#sto$er" and for effiient workin%" the& assi%n different servies to
different depart$ents. ew of these %iven below
• Cash 8epart$ent
• Clearin% and Colletion 8epart$ent
• Re$ittane 8epart$ent"e#artment where internshi# was carried out:
)he depart$ent where I worked is e'plained as follows
$ccount O#ening Form
Fpenin% of ao#nt is a basi proess of branh bankin% the deposits are
bakbone of a bank and openin% of ao#nt is $aAor so#re of bank
deposits. )he ao#nt openin% for$ is a ontrat between the banker and
#sto$er. +s s#h bank has to be ver& aref#l at ti$e of ao#nt openin%
and ao#nt openin% offier ollets ertain do#$ents i.e. CIC"
o#pation proof" b#siness proof" re%istration ertifiate in ase of ao#nts
of re%istered for$s@o$panies et.
-henever a #sto$er desire to open an ao#nt with the bank" he fills in
ao#nt openin% for$ and hands it over to #sto$er servies offier /C=F0.
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)he C=F heks the +F %ets neessar& infor$ation fro$ the #sto$er
and prepare Hnow Go#r C#sto$er /GC0 profile and refer the operation
$ana%er or $ana%er. Mana%er or operation $ana%er hek the +F and
GC" reonfir$ the ontents and after entire satisfation %ives his approval
for the openin% of ao#nt. )hen C=F entire the for$ in the s&ste$ branh
operation $ana%er approves it and speifi n#$ber is allotted to the
#sto$er whih is alled ao#nt n#$ber. In MCB a sin%le ao#nt openin%
for$ is #sed for an& t&pe and nat#re. )here are so$e t&pes of ao#nt %iven
below
1. Individual $ccount
=in%le 7oint
. Business $ccount
=ole proprietorship
7oint stok o$pan& /P#bli@Private0
Partnership /Re%istered@#nre%istered0
=oieties
+ssoiation@Cl#b@)r#st
+#tono$o#s Bodies
:ovt. Instit#tion /ederal@Provinial0
at#re of ao#nt has alread& dis#ssed in $ain prod#ts and servies
hapter.
Cash "e#artment
)he $ain f#ntion of this depart$ent is Pa&$ent and reeipt. It ollets and
pa&s $one& to the #sto$ers" on behalf their ao#nt" thro#%h he2#es or
an& other instr#$ents.
)here are three $ain f#ntions of the ash depart$ent
• Pa&$ent
• Clearin%
• Reeipts /Colletion of $one& fro$ the #sto$er in their ao#nts"
Colletion of tilities bills0
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Clearing and Collection "e#artment:
Clearin% i$plies a s&ste$ b& whih banks e'han%e he2#es and other
ne%otiable instr#$ents drawn on eah other within a speified area and
thereb& se#re pa&$ent for their lients thro#%h the learin%ho#se at
speified ti$e in an effiient wa&.
)he $aAor operation of learin% depart$ents is related to the hek
verifiation. )his is divided as follows
• )ransfer of he2#es
• Clearin% of he2#es
)he proed#res for he2#es transfer and learane are as follows
%ransfer of Che(ues
It deals within the interbank transfer of he2#es. =#ppose a person J
%ives a he2#e of MCB to another person G who also has an ao#nt
in MCB" the learin% depart$ent will handle it. )he learin%
depart$ent si$pl& debits one ao#nt and redits the other one.
Clearing Of Che(ues
It also deals with the he2#es of other banks. =#ppose an BP
ao#ntholder %ives a ross he2#e for MCB. =i$ilarl&" MCB
ao#ntholders %ive he2#e to people havin% ao#nts in other
banksK these all banks need to lear their overall balanes with eah
other.
Credit de#artmentCredit depart$ent is ver& i$portant depart$ent responsibilities of this
depart$ent are
1. to proesses loan proposals@appliations.
. )o $aintain reord of loan do#$ents and files.
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3. )o verif& reords of ollateral se#rities do#$ents et.
4. )o $onitor h&potheated@pled%ed stoks of borrowers offered to
bank as pri$e se#rities.
5. )o $onitor borrowers ao#nt ativities and proper #tili(ation of
f#nds.
6. )o $ake follow #ps and reoveries a%ainst over d#e loans.
!. )o take appropriate le%al ation a%ainst the defa#lters.
FI$CI$L $$L2SIS:
Hinanial state$ent is an& written report that p#rports to show the
finanial ondition of an or%ani(ation. It $a& inl#de balane sheet"ino$e state$ent" ash flow state$ent" and a report of han%es in net
worth.or stakeholders of a b#siness" anal&sis of the finanial
state$ents is the pri$ar& wa& to ritiall& e'a$ine its finanial
position" in order to seek answers to var&in% 2#eries.
P#bliation of finanial state$ents is a stat#tor& re2#ire$ent for
orporations hiefl& addressed to stakeholders o#tside the b#siness"
albeit the& serve the $ana%e$ent for internal ontrol in $an& wa&s.
)he fat that the a#dit arried o#t to #nover an& $aterial irre%#larit&"
is based on si$ple of ite$s" leaves so$e roo$ for inred#lit&. )he
inanial =tate$ent of a bank parti#larl& need %rate are in anal&sis"
as the nat#re and sope of assets and liabilities differs fro$ that of
$an#fat#rin% onerns. or e'a$ple verifiation and val#ation of
plant and $ahiner&" stok and tools et. is %ro#nded on so$e basi
so#res as ontrar& to verifiation and val#ation of deposits" advanes"
and invest$ents.
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!ur#ose of Financial Statement $nal&sis:
+nal&sis is %enerall& direted towards delvin% into three broad aspets
of a b#siness" whih are the drivin% fores behind the stakeholders?
deisions.
)hese are
1. =olven& of the b#siness.
. =tabilit& of the b#siness.
3. Profitabilit& of b#siness.
)he solven& of a b#siness $eans its abilit& to $eet its liabilities as it
nat#re.)he solven& of the b#siness is anal&(ed b& the $eans of finanial
state$ents presentl& and also in an& f#t#re adverse b#siness ondition.
=tabilit& of b#siness is $eas#red b& its abilit& to $eet interest and
priniple pa&$ent re2#ire$ents on o#tstandin% debt and also its
abilit& to pa& dividends to its stokholders re%#larl&.
Profitabilit& is $eas#red b& the s#ess of a b#siness in $aintainin%
and inreasin% the owner?s e2#it&. )he nat#re and a$o#nt of earnin%
as well as their re%#larit& and trend are all si%nifiant in this appraisal.
LIMI%$%IO OF FI$CI$L S%$%*M*%:
inanial state$ents are based on historial ost onvention. )he& do
not portra& the real or $arket val#e of ite$s on the fae finanial
state$ents. )he reditabilit& of finanial state$ents is onfined to the
a#dit arried o#t" and $ost a#dit evidene is pers#asive rather than
onl#sive. inanial state$ent does not dislose an& si%nifiant
f#t#re events or ontin%enies. inanial state$ent does not o$pare
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the at#al fi%#res with an& standard set. L#alitative infor$ation abo#t
the b#siness is not fo#nd in finanial state$ents.
Balance Sheet for MCB Bank
Ltd (MCB) All Values in Millions PKR (expect
Per Share) ! "#$$ ! "#$$ ! "#$#Period End Date 12/31/2011 12/31/2010Asset Cash % &ear Cash Ite's *+,$" -*#.,//Inter 0anking Assets $1*.1,## $.*"/,$
Inter 0anking Assets #.*1",/+ $++*.+,"#&et Loans ""-*+/,/ "-/*-.-,/Long23er' In4est'ent 1*+-/,+ $"*#",#1&et ixed Assets "$*$.,1+ "#*-","other Assets .*-+#,./ $*1"","
Total Assets 656,324.81 570,481.86Liailities ! Shareholders"
E#$it% Custo'er 5eposits /+*#.$,/1 /"#*--1,$$
S3 Borro6ing % Repos "$*--",$ "$*##",+other Short23er' Lia0ilities $1*/-+,$. $.*#+#,Long23er' In4est'ent +*$##,. "-*.1/,-+other Long23er' Lia0ilities .*/+,$# -*$/.,
Total Liabilities 564,670.50 488,482.74 3otal Pre7erred 89uit: # #Minorit: Interest /+",- ",Share Capital % APIC $1*"1.,1# $*#/,.1Retained 8arning % other 89uit: "*1-,#$ ./*.+$,-
Total Equity 91,654.31 81,999.13Total Liabilities & Other
Equity 656,324.81 570,481.86
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&nco'e State'ent for MCB
Bank Ltd (MCB) All Values in Millions PKR (expect
Per Share) ! "#$$ ! "#$#Period 8nd 5ate $";$;"#$$ $";$;"#$#&et Interest Inco'e /-*.1,1/ *"-",/+
3rading Account Pro
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ilute/ E +e%ore O (te*s 20.$8 18.35ilute/ E 20.$8 18.355iluted @eighted A4gas Shares +$+,1. +$+,1.
S3O% $nal&sis
or a better strate%i $ana%e$ent" or%ani(ations need to %o for
sannin% the internal as well as the e'ternal so#res on whih the
overall b#siness lies. )he first and the fore$ost onern of the
or%ani(ation are to see its internal apabilities and the thin%s whih
an be the proble$ in ahievin% their tar%ets" %oals and ai$s. I
ond#t the =-F) anal&sis of the MCB Bank and $& findin%s are
here #nder e'plained.
Strengths
o =afe and se#re invest$ents vent#re
o Innovative and new tehnolo%& adapter
o E$plo&ee =atisfation
o -ell E2#ipped and f#ll& se#re environ$ent
o Moderni(ed bankin% /online Internet0
o Co$plete s#pervision at ever& level
o B#siness ontin#it& $ana%e$ent and i$ple$entation of advane
$odel #nder Basel II
3eaknesses
o -eak or%ani(ational #lt#re /need a paradi%$ shift to i$prove
or%ani(ational str#t#re0
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o R Poliies /appraisal" o$pensation" areer plannin%0
o etworkin% proble$s re%ardin% +)M
o -eak MI= interonnetivit& a$on% the 8ivision
o o $obile +)M servies in r#ral areas
O##ortunities
o Infor$ation )ehnolo%& /MI=0
o Establishin% $ore orei%n Branhes
o
oal =et#p sho#ld be e'panded.o Internet Bankin%
o =o$e $ore innovative prod#ts and servies sho#ld be introd#ed.
o Centrali(ation
%hreats
o
8ownsi(in% is potential threat for MCB e$plo&ees and the& arelosin% their onfidene towards bank perfor$ane
o iere o$petition
o Chan%in% environ$ent of bankin%
o Instable :ovt." eono$ial and politial onditions are a %reat
threat.o Entrane of international banks
o atest MI= is available in $arket whereas MCB is apitali(in% in
s&$bols
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Conclusion
)he work within eah #nit is not divided properl& when an e$plo&ee
is absent another e$plo&ee /who is alread& over b#rdened b& own
Aob0 is %iven absentee?s whole work instead of dividin% it a$on%
e$plo&ees.
+o$$odate $ana%e$ent is re2#ired.
Internees are not onsidered part of the or%ani(ation so are not allotted
as s#h assi%n$ents.
)here?s no proper arran%e$ent for %#idane of internees.
-orkin% ho#rs are 2#ite lon%K $ostl& e$plo&ees have to sit even after
the offie ho#rs to o$plete their work. /E.%. branhes s#ddenl&overb#rden the$ for there learanes and the& have to $ana%e it0
Ineffiien& of I) depart$ent /+t ti$es s&ste$ software is not in
workin% order whih a#ses dela& in work" and I) is not effiient to
help0
Rotation on d#ties witho#t proper trainin%
o refresher o#rses
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'ecommendations
-ork load sho#ld be e2#all& divided a$on% the e$plo&ees
+o$$odation sho#ld be properl& $ana%ed.
Internees sho#ld also be onsidered part of the or%ani(ation" and
sho#ld be %iven so$e pratial work as well in order to %ive the$ a
$ore detailed knowled%e re%ardin% work.
)o $aintain the onfidene of e$plo&ees" $ana%e$ent sho#ld take
neessar& $eas#res to inrease the pa& sale of e$plo&ees" s#h as
providin% $ore failities and bon#ses.
I) depart$ent sho#ld be $ade effiient. Co$p#ter software sho#ld be
well $aintained and $onitored in order to prevent dela&s in work.=oftware proble$s sho#ld be $ana%ed.
Refresher o#rses $#st be ond#ted in order to train the e$plo&ees.
Rer#it$ents sho#ld be stritl& on $erit basis and ind#tion sho#ld be
after proper and e'tensive trainin%.
Proper attention sho#ld be paid to #p%rade #sto$er servies
espeiall& in r#ral areas.
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Bank sho#ld adopt the %lobal or%ani(ational bankin% str#t#re to $eet
the international standards of bankin% setor...