Internship with MCB Bank Limited

Internship with MCB Bank LimitedExecutive SummaryMCB was built-in in 1997 and was later on privatized by the Government of Pakistan. The Nishat Group bought the study shargons of the trust and got the rights to control the entrusts operations. After the privatization of the jargon, MCB has executed different policies to make it one of the best banks of Pakistan they introduce new products and function and emergence its operations by col new kickoffes in Pakistan. Internship cookery is necessary for the degree of MBA as per HEC requirement. It is necessary for me to complete an internship session of nigh 6 to 8 weeks in each organization. I gravel got a shit chosen the banking sector because its my priority to get the wrinkle in banking sector and its also relevant to my bea of pursuit and specialization.I did my eight weeks internship at MCB Morgah branch, Rawalpindi. My drub at MCB was truly an interesting experience. The branch I have chosen for internship is not a very macroscopical branch it has only four departments which includes client service department, alter department, remittance department and hard cash department.I have work in whole the departments but major work in done in first three departments as internee is not al lower-rankinged to work freely in cash department as per the shape of the bank. This report gives an insight of the departments in which I work.In MCB different sheaths of accounts are fan outed according to the needs of customers. During my internship project for MCB I experienced more(prenominal) new things that I had never experienced before being a student, this document provided details of my achievements in term of practical implementation and understanding of works environment in MCB. I have also learnt the work of the photocopier as I am assisting the officers so its in my duties to do the photocopy as requested. I would worry to highlight this that my experience with MCB was very memorable and full of learning, where I found a lot of in digitation.MCB is amongst the pioneer in introducing the new technology-based banking services. The human resource department of MCB is acting an important role in its growth.INTRODUCTION1.1 HISTORICAL BACKGROUND OF MCBMCB is among the leading banks of Pakistan who has deposit base of Rs. 400 Billion and total assets over Rs.600 Billion. Built-in 1947, MCB in short earned the name of a steadfast and conservative financial institution controlled by the expatriate executives. In 1974, MCB was nationalized.The Bank has a customer base of nigh 4 million, a nationwide distribution ne twork of over 1,150 branches and over 600 ATMs in the market.MCB Bank Limited which was previously known as Muslim mercantile Bank Limited is not an overnight success story. It was integrated by the Adamjee Group on July 11, 1947 under the Indian Companies Act, VII of 1913 as a unavowed busheled family. The bank was established with a view to provide banking facilities to the pipeline people of the South Asia. After the partition of the Indo-Pak subcontinent, the bank moved to Dhaka from where it commenced business in August 1948. In 1956, the bank shifted its registered office to Karachi. Thus, the bank inherits a 60 years legacy of belief of its customers. MCB was the first bank which is privatized in 1991 the bank was purchased by Nishat Group. Nishat Group is one of the leading business groups in Pakistan.http//www.bankalfalah.com/images/man7.jpgMian Mohammad Mansha is the Chairman of the group he has played active role in success of MCB. In acknowledgment of Mr. Manshas contribution, the Government of Pakistan has cognizantd him with Sitara-e-Imtiaz, which is one of the some prestigious civil awards of the country.1.2 OBJECTIVES OF MCBCDocuments and SettingsAdministratorMy DocumentsMy PicturesMission_Insert_globe.jpg1.2.1 VISION STATEMENTTo be the leading financial services provider, partnering with our customers for a much pro sperous and secure future1.2.2 MISSION STATEMENTWe are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-run relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us.1.2.3 CORE VALUES OF MCBThe core values of MCB are as fallows1.3 ORGANIZATIONAL STRUCTUREFor lucky handling of the branches, MCB has been categorized into three segments with different people handling each category. These categories areCorporate BankingCommercial BankingConsumer Banking1.3.1 ORGANIZATIONAL STRUCTURE OF MCB SEGMENT WISE solicitude OF MCBMIAN MOHAMMAD MANSHACHAIRMANS.M. MUNEERV CHAIRMANMOHAMMAD AFTAB MANZOORC EXECUTIVETARIQ RAFIDIRECTORSHEIKH MUKHTAR AHMEDDIRECTORMOHAMMAD ARSHADDIRECTORSHAHZAD SALEEMDIRECTORRAZA MANSHADIRECTORSARMAD AMINDIRECTORMIAN UMER MANSHADIRECTOROVERSEAS BRANCHESMCB has 7 overseas branches furthermore, the bank has nearly proposals under consideration to open more branches in some European countries and as well as in japan chinaTOTAL NO OF BRANCHES7COLOMBO1MARDANA1PETTAH1OBU BAHRAIN1WELLAWATTE1EPZ1KANDY11.4 PRODUCTS AND supporterS OF MCBPHONE BANKINGMCB swank CARDMOBILE BANKINGMCB TRAVELLER CHEQUESSMS BANKINGMCB MONEYGRAMCORPORATE FINANCINGMCB INVESTMENT BANKINGMCB FULL DAY BANKINGMCB TRANSACTION BANKINGMCB LOCKERSMCB SAVING 365 business relationshipMCB REMIT EXPRESSMCB SAVING XTRA ACCOUNTMCB ISLAMIC BANKINGMCB CURRENT ACCOUNTMCB INTERNET BANKINGMCB BUSINESS ACCOUNTMCB EASY BILL PAYMCB FOREIGN CURRENCY ACCOUNTMCB CAR 4 UMCB throwING CAPITALMCB ATMMCB DIMINISHING MUSHARIKA(NEW)MCB VISA PLATIUMMCB GURANTEE(NEW)MCB PRIVILIGE BANKINGMCB ISTISNA POST SHIPMET(NEW)MCB BANCASSURANCEMCB DREAM WEDDINGMCB RETIRE EASYMCB PROTECTION PLANMCB LIFE PARTNERMCB energetic CASH FUNDMCB KHUSHALI BACHAT ACCOUNTMCB BASIC BANKING ACCOUNTMCB PRIVATE LIMITED ACCOUNTMCB PUBLIC LIMITED ACCOUNT2. LEARNING AND EXPERIENCE2.1 INETERNSHIP SELECTION AND precept F OR SELECTIONInternship training program during Master in Business administration Program is necessary for the degree of MBA as per HEC requirement. It is compulsory for me to do internship of somewhat 6 to 8 weeks in any organization. I have chosen the banking sector because I want to gain the practical knowledge to the highest degree the pay and its in my priority to get the job in bank and its also relevant to my area of interest and specialization. I choose MCB because of its prestigious name and reputation. An another(prenominal) solid reason of choosing MCB is that my Uncle is also working in MCB, so I have a reference too.2.2 INFORMATION ABOUT MY BRANCHI did my internship in MCB Morgah, Rawalpindi whose branch code is (1389).This branch is previously known as Al-Shifa Branch because this branch is previously in Al-Shifa Eye Hospital recently it was shifted out of the hospital to main(prenominal) Morgah Chowk. This branch is not a very big branch having only four main depar tments. This is ONLINE branch but have no ATM is installed on it. Its main account holders include Pakistan Oil Field, Fauji Foundation University it has both students fees bill account and faculty accounts.2.2.1 MANAGEMENT OF MY BRANCHMr. ABDUL GHAFOORBRANCH private instructorMr. BASEER NASIROPERATIONAL MANAGERMr. HAMMADCLEARING OFFICERMr. MOHSINCASH OFFICERMr. MANSOOR-UL-HASSANMARKETING OFFICERMiss BEENISHG/L OFFICERMr. ARSHADSECURITY GUARD2.2.2 DEPARTMENTS IN WHICH I WORKI did internship in the MCB online branch for the period of 2 calendar months. During the internship, I have worked at different departments, which are as follows,Customer Service Department illumination Department absolution Department cash in Department.2.2.3 MY JOB DISCRIPTIONMy job is to assists the staff members of the branch at different positions.I have not given any separate job and no separate task has been assigned to me.I benefactored the staff in the routine matters like filling of different forms, halt filling, photocopying, opening of an account, stamping on vouchers etcBank is a very difficult type of organization and a very sensitive place to work confidentiality and trust is es directial. That is the reasons due to which many areas are still reach less for internees like cash operations, computing device operations and issues like that.2.3 DETAILS OF TRAINING DEPARTMENT WISE2.3.1 CUSTOMER SERVICE DEPARTMENTIn this department I was under the supervision of Mr. Mohsin, who is Customer Relational Officer. In this department Mr. Mohsin has taught me how to deal with the customers, how to fill the account opening forms, KYC forms and to check the balance from the symbolization software though I am not allowed checking the balance because of secrecy problems.LEARNING TASKS PERFORMED IN CUSTOMER SERVICE DEPARTMENTThe major task makeed by me in this department is that I have opened the accounts of faculty members of FAUJI FOUNDATION UNIVERSITY by personally visiting the uni versity.I have learnt near the opening of an account, the documents required for the opening of the account i.e Personal ID pecker, Next of kin ID card, valid mailing address, Salary slip in case of salaried person, NTN in case of business account etcI have come to know about the nature of different accounts and come to know that which account is suitable for which type of the customer like BBA account for salaried persons.How to communicate with the customers and tell the customer about his/her quires and tell the customer about the new products and services offered by the bank.I have learnt how to check the balance from the SYMBOL software though I am not allowed to check the balance in the absence of CRO.How to write a cheque, fill the deposit slip for the cheque and to fill the form for the ONLINE transfer of fund.How to tell the balance on the telephone afterwards proper verification.How to reactivate the sleeping Account.I have learnt about the procedure for the issuance o f ATM card. How to maintain the ATM cards in proper order.2.3.2 CLEARING DEPARTMENTIn clearing department I worked under the supervision of Mr. Hammad and learned a lot from him I have learnt about the inward and outward clearing.2.3.2.1. MEANING OF CLEARINGIn clearing the banks exchange cheques and other negotiable instruments drawn on each other within a specific area and in this manner skillful payment for their customers through the Clearing House at precise time in an well-organized way.2.3.2.2 PARTIES INVOLVED IN CLEARINGThere are basically two parties involved in clearing.1. NIFTNIFT stands for National Institutional Facilitation Technologies. It is the facility given by the SBP to a private organization named NIFT. The duties of the NIFT includes, to see the cheques, demand drafts, Pay orders and Travelers Cheques, etcetera from all the branches of different banks within city through its carriers and send them to the branches for clearing.2. CLEARING HOUSEIt is a place wh ere cheques are presented, collected from the bank branch. It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse.2.3.2.3. TYPES OF CLEARINGThere are basically two types of clearing.OUTWARD CLEARINGIn outward clearing when cheque is received two copies of voucher are prepared, one c opy and instruments along with clearing stamp, realization stamp, add list and two vouchers of clearing abstract are sent to NIFTINWARD CLEARINGIn Inward clearing instruments received from NIFT are posted in Computers after checking.2.3.2.4. INSTRUMENTS employ FOR CLEARINGFollowing are the Instruments used in clearing department.Transfer,Transfer Delivery,Clearing,Cheque collectionPay in slip.2.3.2.5. DIFFERENT REASONS OF CHEQUES DISHONOUR FROM CLEARINGIn inward clearing sometimes cheques are not passed due to some reasons then cheques are sent back to NIFT along with cheque return memo. Some of these reasons areCheque is returned because some time it is incom pleteCheque is returned if the clearing stamp is required.One another main reason of cheques return is incompleteness or difference in boxershorts sign from specimenOne reason of returning of cheque is that drawer stop the payment.Cheques are also returned because of insufficient funds etc.LEARNING IN CLEARING DEPARTMENTMy learning in clearing department was of spare-time activity thingsI have learnt about the clearing procedure, types of clearing inward outward clearing.I have learnt how to check the cheques.I have learnt the different reasons of returning of cheques from NIFT.I have learnt how to prepare the sheets for clearing.I have learnt how to maintain clearing register.I have also learnt about the instruments used in clearing.I have come to know that the cheques are cleared on the next day.Once the NIFT department collect the instruments, any instruments received after that will be cleared after two days.2.3.3 remitment DEPARTMENTBank Alfalah Remittance2.3.3.1 MEANING OF REMITTANCERemittance is the transfer of resources from one place to another or from one person to another. It is an important facility provided by the banks to its customers as well as to its non-customers. Since it is not a free service it is a source of income for the bank. In Morgah branch the head of Remittance Department is Mr Hammad.2.3.3.2 PARTIES INVOLVED IN REMITTANCEThe spare-time activity four parties are involved in remittance areRemitterRemitteeIssuing bankPaying bank2.3.3.3. TYPES OF REMITTANCERemittance is classified into following four typesINWARD REMITTANCE The instruments received for paymentOUTWARD REMITTANCE Instruments issues to the responding branches.INLAND REMITTANCE Those instruments which are issue within the country.FOREIGN REMITTENCE Instruments issue from one country to another country.2.3.3.4. INSTRUMENTS USED IN REMITTANCEDemand Draft (DD)Telegraphic Transfer (TT)Pay Order (PO)Call Deposit Receipt (CDR)Rupees Traveler Cheque (RTC)MY LEARNING IN REMITT ANCE DEPARTMENTI have learned the following tasks in this department,My learning includes how to fill the forms of TT, DD, MT etc.I have worked during the Holy month of Ramzan. Zakat is deducted in this month so the bank gives the facility of CDR to its loyal customers who dont want to give zakat. I have also learnt how to make (CDR).I have learnt about the different instruments used in remittance.I have come to know about the different types of remittance.2.3.4 CASH DEPARTMENTCDocuments and SettingsAdministratorMy Documentsdollar-pakistan.jpgThe cash department is the most important and confidential department of the bank. In cash department both cash deposits and withdrawals go side by side. In this department I havent perform any task but I have learnt different thing about this department. This department is involved in two activities Cash Deposits and Cash payments. The officers in this department are called tellers and there are two tellers in Morgah branch Mr. Ahsan and Mr. S abir. The Books maintained in the cash department are as fallowCash Receipt BookCash Payment BookCash Balance BookMY LEARNING IN CASH DEPARTMENTI have not performed any task in this department but my learning in cash department includesIn this department I come to know about the Strong Room. Strong room is the room where cash is deposited and stored. The keys of this room are kept by Manager, Operational Manager and the cashier.MCB has three categories of cash which are choose Cash, Soiled Cash and Unsorted Cash. Sorted cash is issued to the customer, soiled cash is basically destroyed cash which is not issue to customer but sent to enjoin bank for reissuance.Every Bank has a cash limit which it can store after banking hours like in Morgah branch cash limit is 5 Millions. This amount of cash is insured by the state bank.I have learnt to fill the deposit slip and how to write a cheque for cash withdrawal.The cheque books are kept in the strong room. Internees are not allowed to go in this room.SWOT ANALYSIS OF MCBCUsersusmanDesktopswot_img2.gif2.3.1 INTERNAL ANALYSIS OF MCB intragroup analysis of the MCB is the analysis of its strengths and helplessnesses. MCB can enjoy Competitor advantage on other by increasing its strength and by making strategies to minimize its weakness Following are the main strengths and weaknesses of MCB.STRENGTHS OF MCBStrength can be defined as an area where a company is best at doing something as its competitors do. MCB enjoys the following strengthsMCB was the first privatized bank because of which it has competitive advantage over other nationalized banks as it is free to make any market oriented strategy without political and regimen pressure.MCB is that it is the oldest private bank that has more than 1100 branches with online branches approx 650. It is the third largest bank in Pakistan.MCB is a well traditional bank who has a long record of over 60 years of experience and profitable operation. In MCB the default rate of the customers are very low than other banks like (The bank of Punjab) etc.MCB was the first bank who introduced e-banking and its Traveler cheques have been market leader for the past seven yearsMCB has allot with the challenges of latest technology by introducing the products like Virtual banking, Mobile banking etc. MCB has been updated with the market.MCB have diversification of products and services for every(prenominal) type of customers like Privilege account, Debit card, Visa card, Car financing ,Agriculture financing etcMCB invest large about of money on training and development of employees so as to make them talented enough to cope up with the upcoming challenges.MCB has the competitive advantage on the other banks because of its reputation as Award Winning Bank. MCB win the award of Best Domestic Bank in 2000 and 2001 by euro money.MCB now make a contract with Cirrus who is a subsidiary of MasterCard. This contract with Cirrus will enable the ATM card holder to use his acc ount even when he is out of the country.MCB have faster banking services that are making it more prominent in the banking industry especially in Operations and Foreign exchange. The customer elects this bank not only because of its faster speedy service rather due to reasonable service charges.MCB not only provides high quality services but it also look for the comfort and ease of the clients, MCB always preferred their customers.WEAKNESS OF MCBWeakness is defined as an area in a company where the company is not as good at doing something as its competitors do. MCB has the following weaknessesIn MCB most of the employees lack administrative training as they are not properly educated. Due to seniority, they have moved up to the Grade-I, II or III positions having hardly masters degrees. Most of the senior staffs are computer shy and unable to operate the computers because of which they cannot apply the modern and innovative techniques of management in decision making.The advertisem ent campaign of MCB is very weak or you can presuppose you hardly see any advertisement. They have to focus on this aspect as electronic media make great impact on the customers mind as the latest marketing campaign of HBL in which they have used a very famous character of Mr Bean. MCB should advertise about their products so that customer gets aware about their products.As recently MCB become Centralized which have positives as well as negative aspects as now for account opening form is sent to Head Office Karachi because of which customers have to wait a lot and the account opening procedure become so much tougher that customers prefer to open their accounts to other banks whose account opening procedure is easier.Another weakness of MCB is the Favouritism and Nepotism in advancement or you can say it is the weakness of almost every organization in Pakistan but for betterment of MCB they have to recruit the employees on the basis of merit.The overseas branch network of MCB is li mited. It has only seven overseas branches whereas HBL has cardinal overseas branches and NBP has fifteen overseas branches so MCB has to open more branches so as to compete with its competitors.The employees in MCB are not satisfied with the reward administration. Rewards should be given after the performance appraisal. Employees of MCB at branch level are not rightly motivated to do their work with full concentration they take the all routine activities as a boring job.The ATM network of MCB is largest ATM network in Pakistan but still there are authorized areas that dont have the ATM. Most of the branches of MCB are computerized but still there are some important branches that dont have computers.The software used by MCB for online purpose is SYMBOL which is excellent but sometime because of link down or disconnection many customers face problems.Another main issue which the employees of MCB face is regarding the work timing. On record the work time is from 9 to 5 but official ly they usually go home after 7 or even after 8 because of which their productivity decreases. There is no separate time for discharge because of which the employees health and efficiency decreases.2.3.2 EXTERNAL ANALYSIS OF MCBMCB has to monitor its environment constantly to cope up with new developments and changes in the environment. A change in the external environment may be every an opportunity or threat. In either case the MCB has to properly use it strengths to avail the opportunities and avoid or minimize the off-putting effects of threats. Following are the main opportunities and threats of MCB.OPPURTUNITES OF MCBIn MCB context following are the opportunities MCB haveMCB can boost its Rupee Travellers Cheques (RTCs) sales by searching for new market segments.MCB can launch new debit card system or can convert the existing ATM cards into a complete debit card.Leasing sector in Pakistan is growing rapidly for the oddment three to four year which gives the bank an opportuni ty to go ahead in this area.MCB can go for the new products launch by different banks like HBL ATM bill payment, UBL Omni Dukan, UBL Business Partner, UBL Selah Mila etcMCB can open new overseas branches to expand its branches and operations to compete with its competitors.MCB can finance to small industries and handicrafts industries and can launch more effective and new well managed online banking system.MCB can also increase Islamic banking to boost the business of the bank.MCB can also go for the student finance service and it can also introduce mobile ATM.THREATS OF MCBThreat can define as a change in external environment which if not met with proper strategies will result in loss of revenues. In the context of MCBs external environment the following potential threats existMCB greatest threat is from other private commercial banks with sound success e.g. UBL, Alfalah, and HBL etc.The threat which every organization including MCB in Pakistan is facing is of the political and eco nomic instability. Changes in the government policies have badly upholded the banking business as the banks have to wait to get permission of state bank.The war against terrorism has negatively affect Pakistans economy, which may affect MCB.Another threat for MCB is from the prosperous foreign banks. MCB have to upgrade its system and should launch new and innovative products so compete with its foreign competitors.Pakistan is an Islamic state where mostly people are Muslims and are abide by the religious laws which dont allow them to use some features of banks like Interest on deposits so they dont prefer banking culture.The new product like UBL Selah Mila is a great threat to MCB as they are giving discounted mark ups to those customers who have good credit history and nerve-wracking to get the customers of MCB.The decrease in the purchasing power of the customers in the current economic situation affects the banking sector too much and the result is the low investment from the investors in new projects.RECOMMENDATIONSRecommendations are basically pinning out the weaker areas of the organization and develop strategies to overcome these weaker areas by giving suggestions. After working as an internee in MCB for the period of two months I am able to make the following recommendations for the bank.The most important area where MCB has to improve is its advertisement. MCB should give proper advertisement of its products extensively to create awareness about the products and to capture the large market share.MCB should decorate the branches as the most of the modern banks attract customers with their modern office looks and fresh environment.MCB should recruit the applicants on the basis of merit and skills. The HR department of MCB should not recruit the applicants on the basis of Favoritism and Nepotism.HR department of MCB should give proper training to its employees so that they can cope up with the future challenges and they should arrange different works hops for the employees on better communication of staff with customers. In MCB training should be provided with job rotation so as to make the employees talented enough to do others work in case of emergency.MCB should introduce the new, better and transparent reward system because it is very important requirement in order to reduce the problems regarding employee retention and employee motivation.MCB should announce the proper time for Launch Break, so that the employees do their work more efficiently.The staff should be given some sort of decision making authority that enables the employees involvement and boosts employees trust and confidence.MCB should also introduce new and innovative products so as to compete with its competitors.ATM machine must be maintained accurately to make it more convenient for the customers and to decrease the work load of the employees especially in the salary days.MCB should solve the problems regarding the link down and disconnection of SYMBOL softw are in order to provides more convenience to customers. The employees of MCB need more computer training.CONCLUSIONSMCB is using the SYMBOL software which is very efficient. The computerized branches have enhanced the performance of the bank. The bank provides a favorable environment for career growth. The bank gives too low rate of interest on deposits because of which customers are shifting to other banks. Recently MCB bank has implemented the centralized system which decreases the efficiency because of delay in work and low employee involvement. The procedure for the accounts opening is too lengthy as now forms are sent to Karachi Head office for approval. The large branch network, ATM institution and diversified products provide the bank a competitive advantage. The main focus of the bank is their customers and they are providing the customers different diversified products with minimum service charges.Finally I concluded that MCB is the very good organization for the long carr ier working. The branch officers are very efficient, skillful, loyal and competent. The officers of my branch are very hard working usually they work more than their working hours which show their loyalty and commitment towards MCB. I found myself very lucky to work with one of the prestigious bank and to get the practical knowledge about MCB and its present scenario. It was a very challenging and informative experience. I came to know about the working of the banking sector and whatsoever I have learned was very enlightening. I come to know many things like opening of an account, closing of an account, how to active the dormant account, about the clearance and remittance procedure etc. I came to know the actual working of bank and whatever I studied in the university was a great help and I was able to apply my theoretical knowledge by implementing it during the internship.