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Marketing Internship Report On Muslim commercial Bank

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Prerequisite of MBA study is to undergo internship. I got the opportunity to

Join the MCB Main branch for the said purpose for a period of 8 weeks.

Practical involvement was a great experience as interactions both with the experienced executives and clients cemented the base of knowledge I have been acquiring in the classroom.

This internship report includes the material about MCB and different departments along with their working procedure.

For the completion of this project I met the various persons of these organizations. As far as my knowledge and hard work is concerned this report will provide a good in sight of MCB. I have special thanks for following persons who have encouraged & guide me lot. I learned very much under their guidance.

 

 

 

 

It is the requirement of the MBA course Virtual University of Pakistan, which all students of MBA have to spend two months in any organization to get practical exposure and to get familiarized with the ways to live in the organizational environment which is dramatically different from the educational environment. That two months period called “Internship Period “, if spent properly and sincerely, enables the students to be more confident, more knowledgeable, more responsible and, above all, more committed to its work in the practical field. I have also been assigned to do internship of eight weeks period in MCB. It has enabled me to understand the practical picture and sharpen my decision making power and utilizing the resources in an effective manner, so that my resources generate maximum profit.

In preparing this report, I have put all of my best efforts and tried my level best to give maximum knowledge. Despite of my all the coherent efforts, I do believe that there will always be a room for improvement in the efforts of learner like me.

 

EXECUTIVE SUMMARY

This internship report is very vital part of my MBA. The purpose of this report is to explore and learn the potential of Consumer Banking in Pakistan and commercial banking and to find out the challenges & opportunities faced by banking industry. In this report comparison of consumer financing products of local and foreign banks have also been done and the problems faced by borrowers and lenders have also Consumer finance was backed by the SBP to give boost to economic growth through demand-pull pressure. Various instruments of consumer finance have attractions for consumers for reasons that are dictated by personal desires, income constraints, paying capacity, social needs and access to getting loans. Rising interest rates, spiraling service charges and deterioration in quality of service are bringing down the demand for personal loans, credit cards and auto financing. Consumer banking is facing new challenges as a result of interest hikes. The real beneficiaries of consumer finance are the people who did not have capacity to purchase expensive household items in a single go but could afford them because of consumer finance, the commercial banks that have been earning large interest and huge returns on their investment in consumer finance and the economy that got impetus for growth.

Local banks are preferred by people for general banking services because of their low charges and wide branch network but for consumer banking people prefer foreign banks because of their good customer service and wide range of facilities. Despite of so many changes in consumer financing regulations bank’s customers are still facing hidden charges problem, difficulty in getting consumer loans and not highly satisfied by tenure of consumer loans.

The banking structure in Pakistan comprises of the following types, State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks, specialized credit institutions. The state bank of Pakistan is the Central bank of the country and was established on July 01, 1948. The network of bank branches now covers a very large segment of national economy.  The State Bank of Pakistan issues the shares of these periodically.  Bank employees and other common peoples can also purchase these shares and earn profit.  In 1956, MCB transferred its registered office to Karachi, where the Head Office is presently located.  In April 1991, MCB became Pakistan’s first privatized bank.

The corporate branch at Shah rah-e-Faisal Karachi (SFK) branch is the corporate branch of MCB in Karachi. The bank is using SWIFT for transfer of information about imports and exports.  MCB SFK branch has Currently Following three Departments General Banking Department, Advances Department & Foreign Exchange Department.

To open an account the customer has to meet the general banking manager with an introducer. The procedure begins with the punching of account opening form to the customer file i.e. customer’s master file.  Before closing any account, bank send letter to the account hold for informing him that his account is going to be closed.  There is need an approval form higher authority to close any account. Current deposits are those which are payable to bank whenever demanded by the customer.  Bank does not pay any profit on current deposits. The following are the financial products/services of MCB Malay Mail Scheme, PLS Account, Saving 365 Account, Capital growth certificate scheme, Fund Management Scheme, Khushali Bachat Account, Term/ Fixed Deposits and others like night banking, credit cards, traveler cheques.

In remittance department like any other bank MCB also have instruments for transferring of money, Telegraphic Transfer, Mail Transfer. In cash department both deposits and withdrawals go side by side. This department works under the accounts department and deals with cash deposits and payments. This department maintains the following sheets, books, and ledger of account cash received voucher sheet.

Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. The clearing in Karachi at MCB or other banks is being done through NIFT (National Institute of Facilitation Technology). 

Bank provides this facility to the people who need advance money to meet their requirement. Party dealing with other banks financial condition of borrower business and as a first step credit proposal is being made. MCB provides advances, which are two types, Secured Advances, Unsecured Advances. MCB usually classified advances in to following types Agricultural Advances, Commercial Advances Industrial Advances. Commercial Advances are of following types

Demand Finance, Cash Finance, Foreign bills purchased, Finance against imported goods, Finance against foreign bills, Export Refinance Part I (Pre Shipment) & others. Banks Agriculture division deals with the agriculture advances. Bank provides the Agriculture Advances in order to enhance and support the agriculture sector of the country. Farm Credit & Non Farm Credit. In foreign exchange, MCB is dealing Foreign Currency Accounts, Foreign Remittances, and Foreign Bills for Collection, Imports & Exports Foreign currency accounts & the foreign currency department deals with the following types of accounts, Dollar Khushali account, Current account, Saving bank account, Term deposit, Prime Currency Scheme. Foreign accounts are convertible on floating rate available to the bank.  Letter Of Credit facility is being provided by MCB in foreign exchange. 


Table of Contents

v     Acknowledgement ------------------------------------------------------------iii

v     Preface---------------------------------------------------------------------------iv

v     Internship certificate---------------------------------------------------------vi

v      Executive summary ---------------------------------------------------------vii

v     History of banking-------------------------------------------------------------1

v     Introduction--------------------------------------------------------------------07

v     Prominent features of MCB-------------------------------------------------14

v     Organizational structure-----------------------------------------------------18

v     General banking department-----------------------------------------------26

v     Accounts department---------------------------------------------------------27

v     Current department----------------------------------------------------------28

v     Deposit department-----------------------------------------------------------33

v     Clearance department--------------------------------------------------------44

v     RTC department--------------------------------------------------------------52

v     Remittances --------------------------------------------------------------------54

v     Advances department--------------------------------------------------------64

v     Foreign exchange departments------------------------------------------77

v     Import and Export---------------------------------------------------------82

v     Letter of Credit-------------------------------------------------------------86

v     Structure of the marketing department-------------------------------94

v     functions of the marketing department-------------------------------95

v     Structure of the sales department--------------------------------------96

v     Functions  of the sales department-------------------------------------97

v     Customer service department-------------------------------------------99

v     SWOT analysis of the organization-----------------------------------101

v     Critical analysis-----------------------------------------------------------103

v     Balance sheet -------------------------------------------------------------104

v     Conclusion ----------------------------------------------------------------106

v      Recommendation--------------------------------------------------------110

v     References-----------------------------------------------------------------113

v     Appendixes ---------------------------------------------------------------114

HISTORY OF BANKING

It has not so far been decided as to how the word ‘Bank’ originated.  Some authors opine that this word is derived from the words ‘Bancus’ or Banque’ which mean a bench.  Other authorities hold the opinion that the word ‘Bank’ is derived from the German word ‘Back’, which means ‘joint stock fund’.  It is therefore, not possible to decide as to which of the opinion is correct, for no record is available to ascertain the validity of any of the opinions.

Banking in fact is primitive as human society, for ever since man came to realize the importance of money as a medium of exchange; the necessity of a controlling or regulating agency or institution was naturally felt.  Perhaps it was the Babylonians who developed banking system as early as 2000 BC.  IT is evident that the temples of Babylon were used as ‘Banks’ because of the prevalent respect and confidence in the clergy.

At the time of independence, there were 631 offices of scheduled banks in Pakistan, of which 487 were located in West Pakistan alone.  As a new country without resources it was very difficult for Pakistan to run its own banking system immediately.  Therefore, the expert committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30th September 1948, so that problems of time and demand liability, coinage currencies, exchange etc. are settled between India and Pakistan.  The non-Muslims started transferring their funds and accounts to India.  By the end of June 1948 the number of officers of Scheduled banks in Pakistan declined from 631 to 225.  There were 19 foreign banks with the status of small branch offices that were engaged solely in export of crop from Pakistan, while there were only two Pakistani institutions, HABIB Bank of Pakistan and the Australian Bank. The customers of the bank are not satisfied with the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the Governor-general of Pakistan Quaid- I- Azam inaugurated the State Bank of Pakistan on July 1, 1948. Thus a landmark was made in the history of banking when the state bank of Pakistan assumed full control of banking and currency in Pakistan. The banking structure in Pakistan comprises of the following types. Commercial banks have been the most effective immobilizers of savings and have been providing short-term requirements of working capitals to trade, commerce and industry. Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all over the country and in some foreign countries through a network of branches.  All these commercial banks were nationalized in January 1, 1974, and were recognized and merged into the following five banks:

 

  • National Bank of Pakistan
  • Muslim commercial bank limited
  • Habib Bank Limited
  • United Bank Limited
  • Allied Bank of Pakistan

 

The state bank of Pakistan is the Central bank of the country and was established on July 1, 1948. The separation of East Pakistan and its repercussion in the form of economic depression has caused a lot of difficulties to the banking system in Pakistan.  The network of bank branches now covers a very large segment of national economy.  The numbers of branches have increased appreciably and there is now on branch of bank for every 3000 heads of population approximately.  There is done reasonable growth in deposits from the establishment of Pakistan.  Besides this growth, specialized credit and financial institutions have also developed over the years.

The Government of Pakistan in the late 90’s introducing the need for the privatization of state owned banks and companies.  The private sector has accepted the challenge and most of the banks are privatized today. The State Bank of Pakistan issues the shares of these periodically.  Bank employees and other common peoples can also purchase these shares and earn profit.  Throughout the period of banking history the banks have been expanding rapidly and achieved the desired goal of progress.

Evolution of Banking

It has not so far been decided as to how the word ‘Bank’ originated. The explanation of this origin is attributed to the fact that the Jews in Lombardy transacted the business of money exchange on benches in the market place and when the business failed, the people destroyed the Bank. Incidentally, the word ‘bankrupt’ is said to have been evolved from this practice. The opponents of this opinion argue that it was so, then how is that the Italian moneychangers were never called ‘Banchierei’ in the Middle Ages?

Other authorities hold the opinion that the word ‘Bank’ is derived from the German word back which means joined stock fund. Then ‘Back’ was Italianize into ‘Bank’.

Early Growth

Banking in fact is as primitive as human society for ever since man came to realize the importance of money as a medium of exchange. Perhaps it was the Babylonians who developed banking system as early as 2000 B.C. It is evident that the Temples of Babylon were used as ‘Banks’ because of the prevalent respect and confidence in the clergy.

King Hamurabi (1728 – 1686 B.C), the founder of the Babylonian empire, drew up accede where in he laid down standard rules of procedure for banking operations by temples and great landlords. He got his code inscribed on the block of diorite about 8 feet tall, containing about 150 paragraphs which deals with nearly all aspects of loans, interest, pledges, guarantees, natural accidents, loss, theft etc. Later on Sumerians, Babylonians, Hitties and Assyrians standardized the values of the goods in silver, copper and bronze.

It is not certain as to who invented money but history recess that king of Lydia castled electrum ingots of identical shapes and of uniform weights with a triple emblem engraved on it as an official guarantee of value in 687 B.C. In 1401 a German public bank was framed comprising the operations of discounting and transferring of money. By the 16th century, some more public banks were formed in Venice, Milan, Amsterdam, Hamburg and Nuremburg. In order to streamline Banking organizations and techniques, conferences were held in Nuremburg from 1548 to 1551 and it was agreed that the commercial interest of the time needed a bank with facilities of growth and transfer but it should not be a bank run by private individuals. Ultimately in 1587, a State Bank under the name of banco DI rialto was formed in Genoa. Later the bank of Amsterdam was also formed in 1609. This Bank had a guarantee by the State and rendered valuable services to the Netherlands traders up to the year 1795.

Similarly in 1690, the Bank of Hamburg came into existence in Hamburg with the business of accepting deposits of fine silver or of foreign money and to run accounts on these deposits. This Bank rendered great service to the merchants as well as countries it dealt with until 1873, when it was merged with the Reich bank. By the year 1700, the bank of England was not only issuing notes but also conducting accounts for customers. Its directors were conducting the business like that of limited companies. The bank had the monopoly of issuing banking notes. Up to 1813 or there about in England, the main profit of bank was derived from the circulation of notes.

Development of Modern Banking:

In 1918, it came into being eleven clearing banks of today. The effect of this historical development of banking in England has been fairly wide. First, emergences of a small number of large banks are with wide network of branches. Second, increase in the popularity of bank accounts and a large-scale use of cheques.

In 1946, the labor government nationalized the bank of England and transferred the existing stock to the nominee of British treasury. In 1955, the British Banks made a departure from traditional banking by undertaking hire-purchase finance for companies buying industrial plants and machinery and took interest on hire-purchase finance.

Banking in Pakistan

At the time of independence, there were 631 offices of scheduled banks in Pakistan, of which 487 were located in West Pakistan alone.  As a new country without resources it was very difficult for Pakistan to run its own banking system immediately. Therefore, the expert committee recommended that the Reserve Bank of India should continue to function in Pakistan until 30th September 1948, so that problems of time and demand liability, coinage currencies, exchange etc. be settled between India and Pakistan.  The non-Muslims started transferring their funds and accounts to India.  By the end of June 1948 the number of officers of scheduled banks in Pakistan declined from 631 to 225.  There were 19 foreign banks with the status of small branch offices that were engaged solely in export of crop from Pakistan, while there were only two Pakistani institutions, Habib Bank of Pakistan and the Australasia Bank. The customers of the bank are not satisfied with the uncertain condition of banking. Similarly the Reserve Bank of India was not in the favor of Govt. of Pakistan. The Govt. of Pakistan decided to establish a full-fledge central bank. Consequently the Governor-general of Pakistan Quaid-I-Azam inaugurated the State Bank of Pakistan on July 1, 1948. Thus a landmark was made in the history of banking when the state bank of Pakistan assumed full control of banking and currency in Pakistan.

The banking structure in Pakistan comprises of the following types.

1)        State Bank of Pakistan.

2)        Commercial Bank of Pakistan.

3)        Saving banks.

4)        Co-operative banks

5)        Specialized credit institutions.

Up to December 31, 1973, there were 14 Pakistan commercial banks that functioned all over the country and in some foreign countries through a network of branches.  All these commercial banks were nationalized in January 1, 1974, and were recognized and merged into the following five banks:

1)        National Bank of Pakistan

2)        Muslim commercial bank limited

3)        Habib Bank Limited

4)        United Bank Limited

5)        Allied Bank of Pakistan

The state bank of Pakistan is the Central bank of the country and was established on July 1, 1948.The separation of East Pakistan and its repercussion in the form of economic depression has caused a lot of difficulties to the banking system in Pakistan.  The network of bank branches now covers a very large segment of national economy.  The numbers of branches have increased appreciably and there is now on branch of bank for every 3000 heads of population approximately.  There is done reasonable growth in deposits from the establishment of Pakistan.  Besides this growth, specialized credit and financial institutions have also developed over the years.

The Government of Pakistan in the late 90’s introducing the need for the privatization of state owned banks and companies.  The private sector has accepted the challenge and most of the banks are privatized today. The State Bank of Pakistan issues the shares of these periodically.  Bank employees and other common peoples can also purchase these shares and earn profit. 


Bank Introduction

MCB, having a large network over 1000 branches, is proudly operating all over the nation. Not just this, along with more than 700 branches, we are constantly expanding and improving our wide branches network day by day. MCB is one of the leading banks of Pakistan with a deposit-base of about Rs. 290 billion and total assets of around Rs. 400 billion. MCB has earned the reputation of a solid financial institution over the 60 years of success and development. We always concentrate on growth through improving service quality, investment in technology and people, utilizing our extensive branch network and developing a large and stable deposit-base.

We make every effort to exceed customer’s expectations through superior and wide array of financial services and solutions. We thrive on the challenge of understanding their needs and aspirations, both realizes and unrealized, so that we can satisfy them with surety and security. Leadership is the ability to affect human behavior for achieving a designated goal. Immense desire and strong will power make affect leaders. MCB is the leading entity of the country that has always been at the forefront economical, technological, financial growth and stability.

Since our inception till now, MCB has portrayed such persons of a leader on which we are proud. In the past years, our skills, our commitment and our dedication not only helped us succeed, but also gave sustainability to our personality; we are the players in the field of economy and always try to excel and achieve our goals efficiently and effectively.

MCB has marked a trail of success in which there are many astounding accolades that makes your trust and our commitment, a winning combination. 

Our valuable customer-base of over 4 million has always trusted and believed in us. Thanks to our combined vision, we have been able to maintain the previous accounts and also the customer-base over the years. We also believe in forging and maintaining the relationships with our customer.

 

THE MUSLIM COMMERCIAL

BANK LIMITED

Muslim Commercial BANK History

MCB was founded by ISFHANI and ADAMJEE families in Calcutta on July 9, 1947. MCB is not an overnight success story rather good track of services are responsible for the leaps and bounds progress.   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 transferred its registered office to Karachi, where the Head Office is presently located.  Thus, the bank inherits a 52-year legacy of trust in its customers and the citizens of Pakistan.

Muslim Commercial Bank (MCB) unfolds 52 years of growth. MCB is not an overnight success story. The bank started corporate life in Calcutta on July 9, 1947. 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 transferred its registered office to Karachi, where the Head Office is presently located. Thus, the bank inherits a 52-year legacy of trust in its customers and the citizens of Pakistan.

Nationalization           
In January 1974, the Government of Pakistan nationalized MCB following the banks (Nationalization) Act 1947, Premier Bank Limited merged with MCB.

CHANGE OF OWNERSHIP

The performance of MCB was badly affected by bureaucrat government.

In January 1974, MCB was nationalized by Bhutto Government following the bank act 1974 subsequently in June 1974 Premier Bank Limited merged with MCB.

PRIVATIZATION

In the late 1990 after long period of time newly established Democratic Government of Pakistan have decided to sell nationalized assets of country for better utilization.  In April 1991, MCB became Pakistan’s first privatized bank.  The government of Pakistan transferred the management of the Bank to National Group, a group of leading industrialists of the country by selling 26% shares of the bank.

In terms of agreement between the Government of Pakistan and the National Group, the group, making their holding 50% has purchased additional 24% shares. Now, 25% is purchased by the Government, which shall be sold in the near future.
A wave of economic reforms swept Pakistan in the late 1990, introducing the need for privatization of state owned banks companies. In April 1991, MCB became Pakistan’s first privatized bank. The government of Pakistan transferred the management of the Bank to National Group, a group of leading industrialists of the country by selling 26% shares of the bank.
In terms of agreement between the Government of Pakistan and the National Group, the group, making their holding 50% has purchased additional 24% shares. Now, 25% is purchased by the Government, which shall be sold in the near future.

 

NEW MILLENNIUM

MCB besides being money financial organization have rendered invaluable services in the economics and social developments of our country. MCB today, represents a bank that has grown with time, experience and Pakistan. A major financial institution, in scope and size, it symbolizes a fully-grown tree.  Evergreen, Strong, and firmly rooted.

PHILOSOPHY

MCB relies on strong, lasting relationship with its customers and on its reputation for stability and security for its continued process. Its philosophy has been to adopt steady course. It has pursued small, less risky loans to consumers and business, and shied away from risky loans. MCB extends its philosophy to its technology strategy but not perusing technology for technology’s sake. However, MCB learns from the mistakes of others especially in “consumer banking”. We let others get in first, take the hit, and find out the flows. Said MCB officials - and has installed efficient and effective system for processing and delivering information.

The board of directors has the authority in guiding Bank affairs and in making general policies.  Some directors are the personnel of the MCB Bank and others are successful businessperson and executives of other major organization.  Nineteen members are included in board of directors.

Mission statement

MCB; Bank’s team of committed professionals is devoted to maintaining long term Customer relationships through outstanding service, easy transactions and convenience.

Vision statement

Challenging and Changing the Way you Bank.

Values

Trust: We are the trustees of public finds, and serve with integrity & commitment. Ethical behavior is of critical importance to us. We adopt full compliance with internal and external policies and procedures, operating within the legal framework.

Customer Focus: We continuously seek to exceed our customer’s expectations, forging and maintaining long term relationships

Innovation: We strive to be the market leaders in innovative products and services offering customized financial solutions with flawless execution

Teamwork: The diversity of our people is our strength. We inspire and challenge each other - working together to achieve synergy

Achievement: Our people are our most valuable asset. We are committed to a result oriented culture. Our goals are clear and merit is the only criterion for reward

Social Responsibility: As responsible citizens we contribute to the social welfare of the community

 

 

 

 

HEAD OFFICE AT GLANCE

I. I. CHUDRIGOR Road of Karachi has same importance in Pakistan’s economy as of the Wall Street in world economy. The divisions working under MCB Head office are as follows:

v     Administration

v     Credit Management

v     Investment Banking

v     Human Resource

v     Information Technology

v     Corporate Planning & Budgeting

v     Finance & Treasury

v     International Division

v     Inspection & Audit

v     Law Division

v     Marketing & Development

v     Trustee Division

 

Under the President an Executive Committee and a Credit Committee works. All the matter of the bank join to the board of director are presented to the executive committee which is responsible for daily operation of the bank .The request for credit exceeding the General Manager power is approved by the Credit Committee. Under the area Executive is the General Manager who is the in charge of the Circle Office. Under the General Manager is the Zonal Manager and then the Branch Manager. At present, there are 9 circles, 47 regions and 1400+ branches. Before privatization there were provincial chiefs for all the four provinces. But this management now has abolished the provincial officers and improved the efficiency of the bank.

CIRCLE OFFICE

The working of circle office is to control and regulate the functions of branches which are under in its control. The functions of circle office are to mobilize the deposits and receive reports from branches. Circle office is like a mini head office. Agents and correspondents of MCB are in all commercial cities of the world. Circle office is divided in the following division:

  • Credit  Management
  • Audit & Inspection
  • Human Resource
  • Marketing & Development

           

Province

Circles

Region

Branches

Punjab

  9

  27

  823

Sindh

  5

  12

  278

Balochistan

  1

  2

  35

NWFP & AJK

  2

  7

  235


PROMINENT FEATURES

SBP allowed exporters obtain foreign currency loans against firm contracts L/Cs and MCB made arrangements for clients to use the facility at EPZ branch, Karachi and off-Shore Banking Unit, Bahrain for the purpose. It also offered services to clients for procuring foreign currency loans from abroad.

The other significant development is the launching of the MCB Imdad-e-Bahami Scheme for “Housing Improvement” in addition to commercial lending; MCB has accepted the responsibility to offer social lending. The scheme, launched with the co-operation of the Swiss institution aims at providing easy credit to low income group is urban areas to improve their living condition. Other Prominent features are as follow:

·        Committee Structure
·        Organizational culture
·        Customer Service
·        Automation & Modernization
  • Human Resource
  • International Appearance
  • Employees Management Relation

 

COMMITTEE STRUCTURE

MCB employs a very strong committee structure to oversee decision by decentralized operations. Officers are given strict limit to authority. Within prescribed limit, officers do indeed make their own decision- but according to guidelines, procedures, and rules. Decision outside of prescribed limits is taken to high-level committees.

ORGANIZATIONAL CULTURE

Officers of the bank don’t need to spend a lot of time into whether they should consider issues or ideas. They just know their certain parameters beyond which they won’t go.

The employees in the organization are well dressed, well communicated and well co-operative. 

Officers learn what these parameters are through their experience with various committees through process osmosis. In visiting and in participating on committees, individuals get to see what their cohorts are doing. Cross - fertilization of ideas occurs and, often, morale is helped. Major corporate policy changes occur through a process of involvement by levels of management.

CUSTOMER SERVICE

Perhaps the most important yardstick for testing the success oriented organization is in the area of customer services and it is in this very sphere that MCB have made the leading strides. To eliminate delays in dealing with credit proposals, of which complaints were frequent is the past, an effective three lier system was introduced instead of six lier system. Under this new system adequate sanctioning powers were delegated to Branch, Regional and General Managers and also to the senior executives in charge of credit at the Head Office. Only proposals exceeding their powers are now considered in the credit/executive committee.

As a part of the new system, the role of the Head office was redefined from supervisory to supporting only the inspection division at the Head Office now has a supervising role for ensuring the implementation of the Bank’s Directives.

The new policy and the restructuring of the system had a two fold positive outcome. Customers were provided improved services and needed facilities. The Bank’s executives and other staff come to possess a new sense of confidence and dignity in their jobs.

Automation & Modernization

The project of on line banking has been successfully introduced and provides customer with the facility to operate from any branch in the network, so for, more than 80 branches have been connected to the MCB Data Network between/among Karachi, Lahore, Rawalpindi, Hyderabad, Multan and Islamabad.

The bank has installed a number of Automated Teller Machines (ATM) to provide 24 hours cash facility to its customer. ATMs have been installed at 40 branches in Karachi, Lahore and Islamabad. The network has been expanded to Multan and Faisalabad since 1997. The ATM at Karachi airport has also started functioning and those at Lahore and Islamabad airport have been inter-linked in 1997.

Swift

The bank has also started replacing conventional telex messaging system for fund transfer, L/C opening etc., by connecting on-line with the world wide inter-bank Financial Telecommunication Network (SWIFT). So for, MCB has on line 20 branches in Karachi, Lahore, Faislabad, Gujranwala and Sialkot on SWIFT, to meet foreign correspondence requirement.

Human Resource

The bank has five special importances to the aspect of training and career planning of its staff members. Forwards this main objective, several training courses have been organized initiating a self development process, in order to accelerate organizational growth and to further improve the Bank’s level of expertise and efficiency.

In 1998, a total of 576 courses were conducted which covered a wide variety of topics connected with banking and customer services. An aggregate numbers of 8,776 staff member participated.

Additionally 245 officers and executive took part in training courses and seminars conducted by professional institution, such as institute of Bankers Management Association of Pakistan, Pakistan Institute of Management and Pakistan Banking Council. Eight executive also participated in courses conducted is foreign countries.

The MCB executive development centre, set up in November, 1995 for used attention an the development and grooming of our executives. Eminent scholars and specialists were invited, during 1996, to apprise our executives of new concepts and techniques to keep abreast of the constant changes taking place locally and globally. A total of 54 seminars were held this year in which 518 executive participated.

International Appearance

After the closing down of the London operations prior to privatization, MCB was left with no foreign branches and operations. In 1994 as planned the bank opened up its international operations by inaugurating its branches in Dakha and Colombo. More branches are operating in Pettah, Srilanka and Chittagang. Access to Middle East and Africa is in progress.

Employees Management Relation

The employee management relations remained cordial. Up-to-now more than 290 offspring of the employees are inducted in the bank as cashier and typists on merit basis. Extensive training PROGRAMME for the employees continued to supplement their capabilities.

The management is indebted to the employees for sharing its vision and dream to make MCB the best Bank of the country that is client driven, preferred by the customers and tested on the touch- stone of customer satisfaction.


Organizational structure of MCB

Board of Directors

The board of directors has the authority in guiding Bank affairs and in making general policies.  Some directors are the personnel of the MCB Bank and others are successful businessperson and executives of other major organization.  Ten members are included in board of directors, see in a list.

Mian Muhammad Mansha        Chairman and chief Executive.

Mr. Tariq Rafi                          Vice Chairman

Directors:

Ten directors are:

1)      Mr. S. M. Muneer.

2)      Sh. Mukhtar Ahmed

3)      Mr. Muhammad Arshad

4)      Mr. Shahzad Saleem

5)      Mr. Raza Mansha

6)      Mr. Sarmad Amin

7)      Mr. Umar Mansha

8)      Dr. Aleem Mehmood

9)      Mr. Tanveer Ali Agha

10)  Dr. Najeeb Samie

 

 

 

 


 

Products and services offered by the MCB

  • Islamic banking

MCB Islamic banking provides Riba free and Shariah compliant solution to various segments in a growing number of cities. With the help of shariah specialists, lawyers and professional commercial bankers, we have the best solutions to cater to your needs in Islamic way.

  • Remit express

International remittances with a two-way messaging facility delivered at your door-step within 24 to 72 hours.

  • MCB Lockers

MCB providing the facility of lockers in the different capacities, that are available in nationwide.

  • Online

There are large networks of over 700 online branches in the country and growing. Providing customers with 24/7 real time online transaction facilities.                                        

  • MCB FULL day banking

MCB is providing the convenience of extended banking hours from 9 to 5, even on Saturday. To satisfy your banking needs at all at all full day banking branches across the country. Now MCB serve their customer a wide range of services thought the day.

  • Virtual banking

MCB provides the convenience of banking on the internet. Whether at office, home or traveling on to www.mcb.com.pk and  enjoy 24 hour access to all your account at MCB for the largest array of services such as inter bank funds  transfer, utility bill payment, mobile top ups and many more.

  • MCB call center 111-000-MCB (622)

There is not easier way to bank than the new enhanced MCB call center, which blends innovation and convenience to provide that go beyond your expectations. MCB make sure your banking needs are met 24/7 from the comfort of your very home are just a call away.

  • Personal Loan

MCB personal Loan is simply cash facility extended for personal use. It offers a fixed installment loan that provides you access to cash instantly without any collateral. Financing available is up to 5 years for amount up to Rs. 1 million

  • MCB SABSAZAR

MCB sabzazar is an agriculture financing scheme for farmers that offers two financing plans, MCB s hadabi plan for short-term financing needs and MCB Khushali plan for long-term financial needs.

  • MCB mobile banking

Banking at your finger tips, now SMS anytime to get information regarding balance and mini statements.

  • MCB ATMs on wheel

Now not only do you get a world class banking service but we make sure of your convenience. Our new classy mobile ATMs ensure that you are given a service closer to you

  • M NET

MNET is an electronic hub for ATM sharing plus other touch points. Members include 11 local foreign financial institutions enjoying ATM sharing and bureau services.

  • MCB Smart card

A secure instrument of payment is providing cash-free convenience. It is more than just an ordinary debit card, offering customers the peace of mind through unmatched and convenient services including easy bill payment, funds transfer, 24-hour cash withdrawal, balance inquiry and unlimited shopping pleasure.

  • MCB BUSINESS SARMAYA

MCB business sarmaya is a running finance facility against your residential property. It offers running finance up to 20 million with low mark up and BTF facility at competitive rate.

  • Easy bill pay

Easy bill pay a solution to pay your utility and mobile phone bills. MCB ATM card or MCB smartcard holders can easily pay their bills through MCB ATMs, MCB virtual banking and MCB call center with security and peace of mind.

  • Credit Cards

A suite of classic and gold credit cards focusing primarily on providing convenience safety, shopping pleasure and security giving a different fell to the world of credit cards through innovative features. These unique features include i-revolve which makes the variable mark-up rate available to you upon revolving and is the first of its kind in Pakistan. Other ad-ons include comprehensive insurance plans, installment plans, reward points, upfront loyalties and much more

  • HOME LOAN

\\Pyara Ghar

MCB pyara Ghar is an ideal home finance product that lets you purchase, repair or construct your home the way you have always wanted. Financing available is up to 20 years fro amount up to Rs. 20 million.

  • CAR LOAN

MCB car4U get you not only a car your own choice but leads you to the best in life. It is affordable competitive mark-up, flexible conditions, easy processing and above all, no hidden cost.

Information regarding operations of bank

  • MCB enhanced saving account.

MCB enhanced saving account is mean for small-savers who are looking for higher returns on their savings. With the benefit of unlimited accessibility, it helps them to make their savings grow.

  • BASIC ACCOUNT

It’s as simple as ABC to start banking with MCB. Look after your money the simple way, with MCB Basic Account.

  • BILL PAYMENTS
    MCB easy bill pay offers unmatched convenience to pay your utility and mobile phone bills.
    CURRENT ACCOUNT

Discover the quick, easy, and convenient way to manage and use your money with an MCB Current Account.

Start saving and discover a habit that’s worth getting into.

MCB Savings Account offers you one of the most suitable ways to manage your hard-earned money. So start saving and earning profit today.

  • FOREIGN CURRENCY ACCOUNT

Enjoy the confidence of operating an international account, locally.

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

  • SMART DOLLAR ACCOUNT

Discover a sensible solution that helps make more of your dollar savings.

MCB Smart Dollar Account is a sensible way to maintain or grow your US Dollar deposit across USD Current, Savings or Term Deposits

  • Corporate financing

Providing access to diversified financing options, including working capital loans, term loan, trade finance services and investment banking.

  • ·        MCB special Rupee Term Deposits

MCB’ special rupee term deposits offer a very attractive long-term option ease and convenience. Tenure options are available for 3 months, 6 months, 1 year and 5 years. You can avail a credit facility up to 75% of your deposit facility.

  • BUSINESS ACCOUNT:

An upwardly mobile way is to bring down costs on your way up.

MCB Business Account lets you build your business through the accrued savings from discounted transaction fees, and more.

  • SAVINGS XTRA

Grow with MCB Xtra by saving more and earning greater profit.

MCB Savings Xtra Account offers you a wide range of attractive profit rates.

  • CURRENT LIFE ACCOUNT

The coverage you need for the life you lead.

MCB Current Life gives you the peace of mind of comprehensive life insurance in a current account and fits right into your lifestyle.


GENERALBANKING Department

It is backbone of banking. It is one of the major departments of MCB. It consists of following departments:

v     Accounts Department

v     Current Department

v     Remittance Department

v     Clearing Department

v     Cash Department


ACCOUNTS DEPARTMENT

Every transaction which takes place recorded in the computer so all transactions in different departments are forwarded to account department. Since all vouchers from different departments are forwarded to current department so this department tallies all such transactions with current department after maintaining the ledger of each department.  Following are different functions performed by this department:

v     Preparation of Financial Statements for different time span

v     Maintain all accounts of different departments

v     Calculation of profit on different schemes

v     Calculation of markup on  different advances

v     Preparation Different types of reports for State Bank

v     Daily position of cash & every accounts

v     Matching daily summaries of all departments with ledger


CURRENT DEPARTMENT

This department maintains all formalities of the accounts and account holders like it account name, account holder’s name, code number and full address. Different cheques debit and credit voucher come form different departments like Token, Clearing, Remittances, Cash, Foreign Exchange, Advances and posted against different accounts.

A working Journal called Manual is prepared daily which shown the balance accounts of all parties. Mark-up and profit are calculated daily. That would be debited at credited from or to account holder’s account after specific period of time.

Markup is debit from the account after every three month profit is credited to accounts after every six month. New accounts are also opened in this department. The fund deposited in the MCB bank can be classified under the main heads:

v     CURRENT ACCOUNT

v     SAVING ACCOUNT

v     TERM /CALL DEPOSITS

 

ACCOUNT OPENING

To open an account the customer have to meet the general banking manager with an introducer (the person who is going go introduce that person in the bank) and get an application form used for account opening.  Different color-coded application forms are available for each type of account.  Along with the form a card for specimen signature is also supplied to customer. Manager has every right not to accept this contract if he is not satisfied by the details provided by the customer.  In case the contract is acceptable to both, now it is ready to open the account formally.

Procedure

The procedure begins with the punching of account opening form to the customer file i.e. customer’s master file. The manager records the necessary details into this register and allots an a/c number from this a/c opening register.  This register is maintained for each type of account and the a/c no’s are allotted serially. After opening a saving and current account every applicant’s data is entered into the computer to maintain a safe record and application form is properly filled so that it can be available when necessary. Checking officer is responsible to Tele the manual application form with the computerized a/c opening file.  For fixed deposit only that application form is needed which is prepared manually, because most of the procedure of fixed deposit is done manually? The signature specimen card contains three signatures of an applicant, applicant a/c no, a/c type, branch code, title of a/c, it will be attached with an application form.  Banker uses this card at the time when he receives the cherub; he compares customer’s signature with the signature on the cherub for avoiding fraud.

ACCOUNTS TYPES 

Though in theory there many types of accounts but commonly account operators can be classified in one of the following categories, each have different documentation requirements:

v     Single

v     Joint

v     Partnership

v     Private Limited

v     Public Limited

SINGLE

Only one person can operate this a/c.  An individual who can fulfill the requirement of bank can open this a/c.  We can call it a personnel or individual a/c. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Letter of Kinship etc.

 

JOINT

In case of joint a/c applicant mentions that how much person will operate the a/c. Instruction are given for joint a/c such that the account shall be operated by anyone or more. The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Letter Kinship, Additional Signature Form (For Joint Account), Declaration regarding the operator of account.

PARTNERSHIP

For partnership a/c, along with the application form other requirements needs satisfied.

The requirements for this type are National Identity Card Photocopy, Minimum Deposited Balance, Account Opening Form, Registration certificate, agreement among partners and Commencement of business and  private registration, resolution of board of directors, commencement of business, memorandum and articles of association and balance sheet etc.

PRIVATE LIMITED

Such type of account is opened in the name of the businesses having private limited concern and mostly medium business enterprises open such kind of accounts. All the board of directors have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the board of directors. In case of any change in directors’ bank must be informed regarding that. In case funds are borrowed by the company all the directors approval is necessary rather not only the authorized partner who can be the operator of the account.

PUBLIC LIMITED

Public Limited A/C type of account is opened in the name of the businesses having Public limited concern and mostly medium business enterprises open such kind of accounts.  All the board of directors have to submit the declaration regarding the account operator on the company pad and with the rubber stamp with the signature of the all the members of the board of directors.  In case of any change in director’s bank must be informed regarding that. In case funds are borrowed by the company all the directors approval is necessary rather not only the authorized partner who can be the operator of the account.

ACCOUNT CLOSING

There are no. of reasons of closing an account can be one of the following if customer desire to close his account, in case of death of one account holder, bankruptcy of the account holder and If an account contain nil balance or not up to the requirement of rules.

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

CURRENT ACCOUNTS

Current deposits are those which are payable to bank whenever demanded by the customer.  Bank does not pay any profit on current deposits.  There are of different scheme of saving deposits, which are classified under different duration purpose and rate of interest.  Fixed deposits are those deposits which are by the bank under the conditions that they will not be payable on demand but will be payable under fixed or determinable future time date.

FEATURES

A sum of Rs. 500/= in cash as initial deposit is required for opening a current account and the same may be maintained as minimum average running credit balance.  No profit will be paid on credit balances held in current accounts. The bank reserves the right to allow opening of current a/c at its description. All deposits and withdrawal from a current a/c will take place only at the branch where the account is being maintained. Current a/c cannot be overdrawn, except by prior agreed agreements with the bank. The correspondence relating to current A/Cs should be addressed to manager of the branch where the account is being maintained. A distinctive number will be allotted to each current account and shall be quoted on all correspondence relating to the respective account and at the time of making deposits and withdraws.

The account holder can draw sums from his account by means of cheque supplied to him by the bank for that particular account.  Account holder should take well care of the cheque books issued to them.  The account holder will pay excise duty of Rs.4 per leaf to the government.

PAY–IN SLIP

This slip is used for depositing the additional amount.  The bank will accept the Pakistanis notes.  All cheques and other instruments should be crossed before they are deposited for credit into the account.  There shall be no restriction on number of withdrawals in current account. The account holder is expected to maintain a minimum running credit balance of Rs.500/.  An account holder wishing to close his account must surrender the unused cheques to the bank.  The current account is computerized, thus it generate the statement of account for all account holders periodically. Incidental charges are beard by the account holder if its credit balance is less than Rs.500/. Service charges of RS. 20/= will be taken by the bank, if an account is closed within 6 months from the date of its opening.  


Deposit Department

Account Opening

The general banking performs various functions among them the first and most important function is A/C opening. The process of opening an account is very simple and any body who would like to open his account could do it easily without any difficulty.

Procedure for Account Opening

1) Application Form

The customer would like to open his account is required to meet with the manager or second officer, who will give him an “APPLICATION FORM” specifically used for account opening.  Separate color-coded Application Form is available for each type of account.  So that a particular colored form is given to the customer to fill in for opening a related account.

2) Specimen Card

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

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

3) Account Opening Register

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

4) Cheque Book

Cheque book is issued to the customer when the bank accepts the A/C opening application form.   

Types of Customers

1) Individual

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

2) Joint

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

a)  Any one of us or survivor.

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

b)  Any two/All of us jointly.

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

3) Partnership A/C

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

v     Registration Certificate

v     Agreement among partners

v     Commencement of business

Note

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

4) Company Account

For company accounts following documents are required: -

Private registration

Resolution of board of directors

Commencement of business

Memorandum and Articles of Association

Balance sheet

Letter of Thanks

Bank prepares two ‘LETTER OF THANKS’ one for the new customer and the other for his introducer. This act promotes good will among the customer and the introducer.

Closing of an Account

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

v     If customer desires to close his account

v     In case of death of one account holder.

v     Bankruptcy of the account holder.

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

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

Importance of Deposits for Bank

The primary economic function of the commercial bank is to receive surplus income of individuals, firms, public houses, institutions, companies and to honor cheque drawn upon it.  Deposits are to bank as a backbone is to the body of a man.  It is the lifeblood of a bank.  The deposits of a bank are useful in many ways.

The banks borrows money from the general public by accepting deposits by offering suitable rates of interest to them or simply promise to repay on demand. 

Types Of Accounts in MCB

The fund deposited in the MCB bank can be classified under the main heads:

  • CURRENT OR DEMAND DEPOSITS
  • SAVIGN DEPIOSITS
  • FIXED OR TERM DEPOSITS
  • CALL DEPOSITS              

1) Current Deposits (Or) Demand Deposits

Current deposits are those which are payable to bank whenever demanded by the customer.

Bank does not pay any profit on current deposits.

There are of different scheme of saving deposits, which are classified under different duration purpose and rate of interest.

Rules for Current Account

Current a/c holder opens Current Accounts on proper introduction only.  However, introduction of a PLS Saving Account holder of repute may be accepted at the discretion of the manager.

A) Minimum Balance

A sum is not less then RS. 1,000/- in cash as initial deposit is required for opening a current account and the same may be maintained as minimum average running credit balance.

B) Profit

No profit will be paid on credit balances held in current accounts.

The bank reserves the right to allow opening of current a/c at its description.

All deposits and withdrawal from a current a/c will take place only at the branch where the account is being maintained.

Current a/c cannot be overdrawn, except by prior agreed agreements with the bank.

The correspondence relating to current A/Cs should be addressed to manager of the branch where the account is being maintained.

A distinctive number will be allotted to each current account and shall be quoted on all correspondence relating to the respective account and at the time of making deposits and withdraws

C) Issuance of Cheque Book

The Cheque book is issued against the valid requisition slip signed by the account holder as per signature provided by the bank.  The account holder can draw sums from his account by means of cheque supplied to him by the bank for that particular account.   In drawing cheques the amount in words and figures should be written distinctively and the cheque should be drawn in such a way as to prevent the insertion of any other word or figure.  Account holder should take well care of the cheque books issued to them.  The account holder will pay excise duty of Rs.4 per leaf to the government.

2) Saving Account

Saving accounts are opened on proper introduction with sums of credit balance within certain limit for individual (single, joint) institutions, companies, educational institutions etc.

MCB has introduced various schemes under saving a/c,

v     PLS ACCOUNT

v     CAPITAL GROWTH SCHEME

v     MAHANA KHUSHALI SCHEME

v     KHANM BACHAT SCHEME

v     KHUSHALI BACHAT ACCOUNT

v     MALA MAAL SCHEME

v     SAVING 365 ACCOUNT

1. Profit and Loss Sharing Account

PLS saving is account having a running minimum credit balance of RS. 1,000/- would be eligible for sharing profit/loss of the bank.  The bank would be within its rights to make investment of credit balances in the PLS saving accounts in any manner at its sole discretion and to make use of the fund to the best of its judgment in the banking business under the PLS system.

Withdrawals

Withdrawals from PLS saving account are allowed not more than 8 times in a calendar month and for a total amount not exceeding RS. 15000/- is without the approval of bank manager.  For withdrawal of larger amount, 7 days notice in writing is required to be given.

Profit/Loss

The profit/loss will be credited/debited on the basis of its net working results at the end of each half-year.  Calculation of products on PLS saving A/c will be made for each calendar month on the lowest credit balance of an account between the close of business on the 6th day and the last day of the month.  If the balance is less than Rs.100/- the product will be nil.

Rules for PLS

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

Post dated and stale cheques shall not be paid.

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

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

2. Khanam Bachat Scheme

Target Market

Individuals planning to save funds for education & marriages of their young sons /daughters.

Individuals interested in long term deposits.

Individuals in low class middle group.

Individuals showing confidence in Bank’s long term schemes than schemes of similar maturities offered by others.

The loving parents that want best for their children.

Deposit Amount

We will have to deposit Rs 1000 on monthly basis t the time birth of your baby or at later stage. It will continue for up to 10 years without making any withdrawal.

Conditions

The account can be opened singly or jointly.

Account in the name of miner can be operated by mother, father or jointly as guardian.

No advance can be extended against a minor account.

If anybody withdraws prematurely then profit will be calculated on prevailing PLS account.

The bank reserves the right to refuse any depositor in the scheme without giving any reason.

This account can be opened in any MCB branch.

Interest

The interest is given on yearly basis.

Tax & Zakat will be deducted according to rule at the time of maturity and payment.

3. Mahana Khush-hali Scheme

Target Market

Individual interested investing for five years saving schemes.

Individuals who want monthly return on investment.

Middle class income group.

For the persons residing abroad and family in Pakistan.

For retired persons who want regular monthly return on investment.

Conditions

Minimum amount required is Rs. 25000 and Maximum is Rs 1 million.

This scheme can be adopted by individuals (Single or Joint) in their names.

This certificate will mature after 5 years.

Interest

The bank will give profit on monthly basis.

Zakat is deducted on payments and profit according to government rules.

Services

We 7 our nominee can collect cross pay order.

Profit amount can be send to you by postal money order & demand draft.

Profit will be paid from that branch where you have opened Khush-hali Account.

If a customer has a saving or current account in this bank then profit can be deposited in that account.

The following table gives the monthly returns on various amounts, based method of calculation.


AMOUNT (Rupees)

MONTHLY PROFIT Rs.

1,000,000

10,830

500,000

5,416

100,000

1,083

50,000

541

25,000

270

 
In Case of Premature Encashment

The following rates of profit will apply:

If the certificate is held for less then 90 days                              No profit

If the Certificate is held for 3 months but less than 6 months       PLS rate

If the Certificate is held for 6 months but less than 1 year           PLS rate

If the Certificate is held for 1 year but less than 2 year                PLS rate

If the Certificate is held for 2 year but less than 3 year                PLS rate

If the Certificate is held for 3 year but less than 4 year                PLS rate

If the Certificate is held for 4 year but less than 5 year                PLS rate

4. Khush-hali Bachat Account

Target Market

Individuals who want to pay dues of insurance, HBFC& installment.

Individuals living abroad but their families are in Pakistan.

Busy individuals who don’t have time to pay their dues monthly.

Special Incentives

Return is calculated on daily average balance.

Profit is paid half yearly.

It can be operated at mostly all the branches of MCB.

5. Capital Growth Certificate

MCB has a risk-free return scheme by which your capital can grow to nearly double the amount in just a few year time. All that is required is a minimum amount of deposit. At the end of the stipulated period, the bank returns close to twice as much.

Target Market

Individuals interested in medium term saving schemes.

Individuals of middle income class group.

Individuals keeping excessive balance in current accounts.

Individuals interested to save fund for lump sum, education & marriages.

Individuals seeking protection against increasing inflation rate.

Conditions

Minimum deposit will be Rs 10,000 with no limit for maximum.

Time span is minimum five years can be expanded to 5 years.

Interest

Initial Deposit
(Rupees)

Payment up to maturity (approx.)
(Rupees)

10,000/-

20,000/-

50,000/-

100,000/-

100,000/-

200,000/-

1,000,000/-

2,000,000/-

 

In case of premature encashment of certificates, the depositor will be given “PLS Saving Accounts “profit rates declared by the bank for that particular period.

Depositors will be required to fill in Account Opening Forms.

6. Fixed deposits

Fixed deposits are those deposits which are by the bank under the conditions that they will not be payable on demand but will be payable under fixed or determinable future time date.


Clearing Department

Cheques

When we talk of cheques then there are two types of cheques

1) Open Cheque

Open cheque has following properties:

The word Bearer is not crossed.

Cross stamp is not there

Cheque is not of limited companies.

Self or name should be written on the cheque.

Token

A token is given on open cheques when presented to bank for payment. In this case payment is made at the spot to the cheques holder. First of all cheque is presented to bank for payment. The name of holder, no of cheque and amount is written on the register by the bank employee & token is given to cheque holder. Then Cheque reaches the computer department. There it is again feeded in computer & it is stamped after checking the holder has enough amounts in his account or not. After feeding in computer ( debiting holder’s A/C ) , the cheque reaches the cash department where the holder can receives his cash by giving token to the cashier provided that he has enough amount in his A/C.

2) Crossed cheque

When the cheque does not fulfil the requirement of open cheque then it is known as crossed cheque.

A) Transfer Delivery

When cheque has following properties then it is preceded as Transfer Delivery.

Cheque is crossed.

Cheque is of MCB.

Cheque is from local branch.

In this situation cheques are collected separately as transfer Delivery.

Procedure

In Transfer Delivery following process is done.

First of all cheques are noted in Transfer Delivery Ledger with the date in advance because it takes one day to reach cheque issuing branch in the same city. In T.D Ledger Name of account holder, Number & amount of Cheque are written and two copies, one original and one carbon copy of voucher SF-73 B are prepared. Original copy of voucher along with cheque is send to issuing branch while carbon copy and Pay-In-Slip is with the bank.

The cheque with voucher goes to Main branch then to issuing branch and then reverse from issuing branch to main branch and then to our branch. 

B) Clearing

In clearing the cheques which are

crossed

limited company

different bank in the same city

Procedure

Such cheques are collected as clearing cheques and are noted in Clearing Ledger. Two copies of voucher SF-37 are prepared. Original voucher with the cheques are send to Main branch which then send to S.B.P in advance date. The payment is not given at hand but it is transferred to account of account holder. In case if cheque is returned due to number of reasons then the objection is finished and again send to main branch but this time a credit voucher along with original cheque is send to main branch instead of any Pay-In-Slip.

Advance Clearing

When cheque is sorted for clearing because of different branch in the same city then we note these cheques in two days advance date because it takes more time to reach that faraway branch. For example HBL is of Baha-ud-Din Zakariya University Multan.

Procedure of Payment of Cheque of Foreign Currency         

When cheques are denominated in foreign currency then procedure is not like that of ordinary cheques of Rs. First of all cheques are issued and the person give cheque to another person. When any party receives cheque in foreign currency to deposit in his account then it gives it to the ban where he has his bank account. The Bank sends this cheque to its Head Office. Head Office sends it to the country where transaction is done over that currency. Then cheque goes to New York. From there it is send to that issuing bank (domestic) from where party has received cheque whose bank whose cheque it is. N.Y is credited and that bank is debited by that amount. N.Y sends it to head office of our Bank. Then H.O is credited and N.Y is debited. Amount of Foreign currency is then sending to main or local branch where the party has its account. Now the account of that person is credited and the H.O is debited

Now there may be two cases:

v     Either account is in Pak Rs.

v     Or account is in that country

v     Or account is in Foreign Currency other than the currency in cheque.

C) Cheque Collection

When cheque is from another city then it is grouped as C.C.

Procedure

SF-37 form is used in Cheque collection. Original voucher with cheque is send to main branch. Carbon copy with Pay-In-Slip is taken by bank for record purposes.

Pay-In-Slip

Here it is very necessary to have knowledge about Pay-In-Slip

Purpose

It is used for two purposes

Whenever we want to deposit cash in our account then pay-in-slip is used by writing amount on it and depositing it to cashier along with money.

Whenever we have cheque from any party to be collected in our account we fill pay-in-slip. One part is attached with cheque and another is given to cheque holder as a receipt. 

Types

It is of two types depending upon the type of account.

Green Pay-In-Slip is used for Saving Account

Blue Pay-In-Slip is used for Current Account

Stamps Used In Bank (MCB)

Following stamps are used in for different purposes.

(1)Cross Stamp

This stamp is used to cross the cheque. Crossing can be done by 3 ways.

a) General Crossing

Sometimes the cheque is crossed by the drawing two lines on the upper left corner of the cheque without writing any sentence on the cheque.

b) Written Crossing

Cheque can also be crossed by stamping it with sentence “Pays Account Only”

c) Special Crossing

Crossing can also be done by stamping a cheque with the words “MCB GBS Branch”. This means that now cheque is in use of bank only. If it is lost or dropped then it is of no use to anybody because now it is a cheque of bank. This cheque will not be cashed any where else.

(2) “Payees Account will be credited on Realization”

This is used to stamp on the back of following instruments.

Cheque (simple). 2) Travelers Cheque. 3) Pay Order. 4) Speed Cash.

This means that the account of the payee will be credited provided that cheque is accepted by Drawer’s bank otherwise not.

(3) Disbursement Guaranteed; Payees Account will be credited on Realization

It is used to stamp on the back of following instruments

1) Demand Draft.  2) Foreign Remittance

(4) Payees Account Credited

This stamp is used on back of those cheques which are of the same branch. It is of guarantee that if there is no problem with the cheque or A/C then Payees account will be credited.

(5) Clearing Stamp

This stamp is placed in front of clearing voucher on the same day in which clearing was made (one day advance date). Or the date in which it is presented by Main branch in State Bank Of Pakistan.

(6) Round Stamp MCB

It is used in two places.

When we are dealing with C.C then we write the number of C.C which is written inside the stamp. One stamp is on cheque and other on Pays-In-Slip.

When we fill Pay-In-Slip and give it to the bank officer along with cheque then he places this round stamp on the face of one part of Pay-In-Slip and marks his signature on it and gives it to the customer as a evidence.

(7) Pay Cash

This stamp is used when cheque is not crossed, it is open cheque. The officer places this stamp on the front of cheque and writes token number on it. This means that payment in cash will be made of this cheque on presentation of token to cashier. This is like indication for cashier to pay cash.

 

Reasons for Cheque returned unpaid in Cross Cheques

Following are the reasons for the cheque return.

Cheque incomplete

Clearing stamp required. 

Drawer’s sign incomplete

Drawer’s sign different from specimen 

Post Dated   

Payment stopped by drawer.

Amount in words and figures differ.

 

 

 

Report of Lost or Stolen cheque

In case of lost or stolen incidents following procedure is performed.

Cheque no of lost cheque 

Whether it was single or double signed.

Whether it was crossed or related to someone

Phone / Fax of reporter.

NIC no of reporter.

Signature of reporter.

How cheque was lost.

FIR Lodged or not.

 

Green Sheet

At the end of banking time (1:30 o’ clock), three Green sheets are prepared for clearing, cash and account side. One Green Sheet is also prepared by clearing department.

Heads in Green Sheet

Green Sheet has following Heads:

1) Current A/C(2) Saving or PLS A/C (3) Other A/C(4) General A/C

M.T Payable                                        H.O A/C         

                                                T.T Payable                                          Other than 3,2 &1

                                                Pay order

                                                D.D Payable

 

 

Sides of Green sheet

There are two sides of green sheet:   Debit Side    &      Credit side.

Both sides should tally in figure amount. If   Debit total = Credit total then sheet is balanced and there is no mistake. It should be taken care that cheques are always debit and pay-in-slip is always credit. If voucher is of Pink colour then it will be on credit side and if it is of blue colour then it is debit side.


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