Internship Program From Mcb Bank Limited Of The Adamjee Group PDF

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Internship report on MCB bank PAKISTAN, Internship report on MCB bank PAKISTAN...

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MCB

1. Introduction Internship training program is necessary for completion of our degree. It’s necessary for me to complete my internship program about six week in any manufacturing or service concern industry accordingly with our specialization. So, I choose banking sector because I have interest in this sector and also the reason behind choosing this sector is, mostly teachers during their lectures use example related banks. The basic objective is how to implement my bookish knowledge in a practical manner. This internship will help me in future because it makes me punctual and now I can understand how employees work in a stress environment.

2. Overview of the organization: 2.1 Brief history: MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947 in Kolkata in Bengal, under the Indian Companies Act, VII of 1913 as a limited company. Due to changing scenario of the region, the certificate of incorporation was issued on 17 August, 1948 with a delay of almost 1 year; the certificate was issued at Chittagong. The first Head office of the company was established at Dacca and Mr. G.M. Adamjee was appointed its first chairman. It

was

incorporated

with

an authorized capital of Rs. 15 million. The Bank

transferred its registered/Head office from Dhaka to Karachi on August 23, 1956 through a special Resolution.

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MCB NATIOINALIZATION: In January 1974, the government of Pakistan nationalized MCB following the banks (Nationalization) Act 1974, subsequently, in June 1974, Premier Bank limited merged with MCB. PRIVATIZATION: A wave of economic reforms swept Pakistan in the late 1990’s introducing the need for privatization of state owned banks and companies in April 1991, MCB because Pakistan’s first privatized Bank, the government of Pakistan transferred the management of the Bank to Nishat Group, group of leading industrialists of the country by selling 26% shares of the Bank. With a view to broaden equity holding the government sold 25% of the paid up capital to the general public. In terms of agreement between the government of Pakistan and the Nishat Group additional 24% shares have been purchased by the group making their holding 50%. As of June 2008, the Nishat Group owns a majority stake in the bank. 25% was retained by the government. Now it is fully privatized. Mian Muhammad Mansha is the Chairman of the group (and also MCB) and has played instrumental role in its success. In recognition of Mr. Mansha’s contribution, the Government of Pakistan has conferred him with "Sitara-eImtiaz", one of the most prestigious civil awards of the country. Pakistan’s fourth largest bank is MCB. MCB is largest by assets having an asset base of US$6.7 billion, the largest by market capitalization having US$4.1 billion, and customer base of approximately 4 million. The Nationwide distribution network of MCB is 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs, in a market with a population of 160 million.

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MCB 2.2

Nature of the organization

Muslim commercial bank is the service concern organization. They give a lot of services to their customers that can satisfied them and reduce their time consumption by using such services like; ♦ Receiving Deposits ♦ Advances of Money ♦ Safe Custody ♦ Transfer of Money ♦ General Utility Services

2.3 Business volume, reward honors & success stories etc during last 5 year MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974, MCB was nationalized along with all other private sector banks. The Bank has a customer base of approximately 4 million, a nationwide distribution network of over 1100 branches and over 450 ATMs in the market.

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MCB Our pillars of strength stand on a foundation of leadership

♦ Strongest Bank in Pakistan award 2010 by Asian Banker

♦ Leadership achievement award 2010 by Asian Banker

Euro money Awards       

Best Bank Award 2008 Best Bank Award 2006 Best Bank Award 2005 Best Bank Award 2004 Best Bank Award 2003 Best Bank Award 2001 Best Domestic Bank Award 2000

Asia Money Award  Best Domestic Commercial Bank Award 2005  Best Domestic Commercial Bank Award 2004 Mobile World Congress has nominated MCB Mobile, a service launched by the MCB Bank in 2009, as the best across the world. The nomination was an acknowledgment for the recently launched innovative mobile banking solution by the MCB Bank and GSM Association (GSMA), said a press release. MCB Bank Limited President and Chief Executive Officer Atif Bajwa said that the bank remains committed to broaden the access of financial services to a sizable population in Pakistan owning mobile phones and without bank accounts. “This nomination is a source of great pride not just for the MCB bank, but for the country, as well,”

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MCB 2.4 Product/service lines: Products and Services  During my stay I observer that a large verity of products and services are offer by the MCB Bank Deposits: ♦ Bank accepts deposits which are maintain by the bank in different kinds of accounts. MCB bank offers these accounts for depositing the funds. Current account: ♦ Current deposits are those which are payable to bank whenever customer demand. ♦ Bank does not pay any profit on current deposits. ♦ Minimum Amount for account activation is Rs 1,000/- in cash as well as Rs 10,000/- require as a minimum balance in current account. ♦ No limitation on deposit and with drawl of amount. ♦ No Zakat deducted on current account as per the Zakat & usher ordinance. ♦ Individual, firms, club, society, association can be open this account. ♦ Issuance of cheque book charges on this account is Rs. 300/-. Business Account: ♦ A Non-profit bearing account for Businessmen who can maintain high deposits and get waivers on POs, DDs, Cancelations, recurring cheque books, multiple bank statements and more

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MCB ♦ Minimum balance that require for this account is 50,000/- as well as account activation requirement is 1000/-. ♦ No Zakat deducted on this account ♦ Free PO, DD, Cancellations, recurring cheque books ♦ Unlimited withdrawal and deposit on this account ♦ Individual, firms, clubs, society, association can open this account Basic banking account:

♦ A Non-profit bearing account for small depositors who cannot maintain a minimum balance in their accounts and who wish to carry out the basic banking needs. ♦ No Zakat deducted on this account ♦ Only Individual can open this account ♦ On this account there are some transactions limit like 2 free over the counter deposit and with drawl (per month) ♦ No minimum balance is required for this account but amount Rs. 1000 is require as an account activation requirements.

Current life account:

♦ A Non-profit bearing account with the benefit of Free Life Insurance Cover. More the balance maintained, higher the cover

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MCB ♦ Account activation requirement is 1000/- and minimum balance that require fir this account is 25000/♦ Unlimited deposit and with drawl is allow ♦ Only individual can open this account ♦ No Zakat deducted on this account ♦ Life insurance cover: Double the amount of last three months average balance Condition: ♦ Death of the customer is natural or accidental ♦ At the time of death the customer’s age is between 18-60 ♦ Balance does not fall below 25000/- on any day in the last three months ♦ In the case of non completion of 3 month, the number of days completed will be considered and the average of day completed will be taken

New foreign currency current account: ♦ A Non-profit bearing Foreign Currency account with absolutely no transactional restrictions ♦ Account activation requirement is 500 USD and minimum balance is required for this account is 500 USD. ♦ Unlimited withdrawal and deposits are allowed ♦ No ATM, virtual banking, call center, mobile banking services is given on this account ♦ No Zakat deducted on this account ♦ Individual, firms, clubs, society, association can also be open this account

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MCB Saving Accounts: 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, Profit and Loss Sharing Account ♦ A plain Savings account for everyone with no transactional restrictions ♦ Minimum balance for account activation if 1000/- as well as minimum balance for running account is 10,000/-. ♦ Profit will be given on the expected rate of return. ♦ Profit pay out on semi annually basis ♦ Zakat is deducted on this account as per Zakat & usher ordinance ♦ Withholding tax is deducted on profit as per government’s policies. ♦ Unlimited with drawl and deposit ♦ Individual, firms, association, clubs, and society can also be open this account Khush-hali Bachat Account

♦ A Daily Product for small Investors with semiannual returns and no restriction on transactions. ♦ Account activation requirement is 1000/- on the other hand minimum balance is required for this account is 20000/♦ Zakat is deducted as per Zakat and usher ordinance

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MCB ♦ Withholding tax apply on profit as per government ‘s policies ♦ Profit on the base of expected rate of return ♦ Unlimited with drawal and deposit on this account ♦ Only Individual can open this account.

365 saving gold account:

♦ A Daily Product for high net worth customers with monthly returns and higher profit on higher deposits as well ♦ Account activation requirement is 1000/♦ Minimum balance requirement is 500,000/♦ Profit is given up to 8.23% as per expected rate of return ♦

Profit pay out on monthly basis

♦ ATM, virtual banking, mobile banking, call center is available ♦ Individual, firms, clubs, associations, society can be open this account ♦ Zakat is deducted on this account as per Zakat and usher ordinance ♦ Withholding tax is deducted on profit as per government’s policies

Saving xtra account: ♦ A product offering high rate of return: higher the deposit, higher the returns with 3 free cash withdrawals over the counter per month. ♦ Account activation requirement is 1000/♦ Minimum balance requirement is 100,000/♦ Profit up to 8.5% as per expected rate of return ♦ Profit pay out on monthly basis ♦ Transaction limit is 3 over the counter with drawl per month

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MCB ♦ ATM, virtual, mobile banking, call center are available on this account ♦ Zakat id deducted on this account ♦ Withholding tax on profit as per government policies ♦ Individual, clubs, societies, associations, firms can also open this account

365 saving account: ♦ A Daily Product for Medium net worth customers with monthly returns and higher profit. ♦ Account activation requirement is 1000/♦ Minimum balance requirement is 300,000/♦ Profit is given 5% as per expected rate of return ♦ Profit pay out on the base of semi annually ♦ Zakat is deducted on this account ♦ Withholding tax on profit as per government policies ♦ ATM facilities, virtual banking, mobile banking, cal center are available on this account ♦ Individual, clubs, societies, associations, firms can also open this account

Term deposit

Flexi deposit account: Min Deposit Requirement Profit Profit Calculation Permissible Currency

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PKR 500,000 expected rate of return Based on 365 days a year PKR

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MCB Tenors Available

1 month, 2 months, 3 months, 6 months, 9 months, 1 year, 2 years, 3

Profit Payment Options

years and 5 years Quarterly, Semi Annually, Annually

Zakat

and Maturity. Zakat is deducted as per the Zakat

Withholding Tax

& Usher Ordinance, 1980 Withholding Tax is deducted on Profit as per the Government’s

Eligibility

policy. (Existing Account Holders) Individuals, Firms and Companies. It is a mandatory requirement for booking a Term Deposit to

Mahana profit account: Min Deposit Requirement Profit Profit Calculation Permissible Currency Tenors Available

PKR 500,000 expected rate of return Based on 365 days a year PKR 2 months, 3 months, 6 months, 9 months, 1 year, 2 years, 3 years and 5

Profit Payment Zakat

years Monthly Zakat is deducted as per the Zakat &

Withholding Tax

Usher Ordinance, 1980 Withholding Tax is deducted on Profit as

Eligibility

per the Government’s policy. (Existing Account Holders) Individuals, Firms and Companies. It is a mandatory requirement for booking a Term Deposit to have a checking account (Current/Savings) in the Bank.

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MCB Remote charges: Call center: Features i. MCB Mobile Registration/Activation/De registration ii. Virtual Banking Activation/Blocking iii. Debit Card Activation/Blocking iv. Internal Funds Transfer v. Utility Bill Payments vi. Mobile Postpaid Bill Payments/Top ups vii. Credit Card Bill Payments viii. TPIN Maintenance/Issuance All customers having singly operated

Eligibility

accounts in MCB Bank Limited

ATM (automatic transfer of money) Feature:

♦ Fast Cash ♦ Cash Withdrawal ♦ Funds Transfer from one registered account to another ♦ Mobile Banking Registration ♦ Virtual Banking Registration ♦ Utility Bill Payments

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MCB ♦ Mobile Bill Payments ♦ Mini Statement ♦ Balance Inquiry ♦ MCB ATM/Smart Card PIN Change ♦ Block Smart Card ♦ PIN Reset for MCB Mobile users ♦ IDP Relief Fund Collection ♦ Credit Card Cash Advance transaction

Smart card: Feature:

♦ Secure and convenient deposit access instrument for payments ♦ 24 hour access to deposit account ♦ Bill payments ♦ Cash withdrawals ♦ Fund transfers ♦ Statement Requests ♦ Utility Bill Payments ♦ Account enquires ♦ MCB remote banking channels registration through remote banking channels

Prepaid visa card:

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MCB A Prepaid Card is pre-funded reload-able card that is easy to use and is safer than cash. It is operating in a similar fashion to debit card accounts but with greater flexibility and lesser risk. Visa prepaid cards can be used to access previously deposited funds in a Prepaid account. The funds in the account may be spent by the cardholder through purchase transactions or cash withdrawals.

Acceptability: MCB VISA Prepaid Card can be used to withdraw cash, shop, dine, fuel and make online payments locally and internationally at more than 29 Million outlets including 35000 local merchants in 160 countries worldwide. Each purchase is debited directly from your card balance, making it easy for you to be Cash free.

Eligibility: Prepaid Card issuance is based on the providing following mandatory requirements. Copy of CNIC is mandatory requirement which is acceptable after original seen.

Virtual banking:

Features: ♦ Detailed Account Summary of all listed accounts. ♦ Mini-statements/ Statement-by-Period ♦ Transfer of Funds ♦ Scheduled Payments ♦ Payment of utility bills, credit card bills ♦ Donations ♦ Bulk Salary Transfer for Corporate Customers

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MCB ♦ Cheque Book Request ♦ Personal Alerts ♦ Buy Internet Hours ♦ Mobile Recharge facility for all mobile companies ♦ Purchase Mutual Funds & Stocks

Mobile banking: Features:

♦ Non Financial ♦ Do a Balance Inquiry ♦ View Mini-Statement ♦ Turn your Smart Card off ( card will activate after EOD) ♦ Receive Transaction Alerts via Push SMS ♦ Add/Remove Frequent Payees ♦ Financial ♦ Make Utility Bill payments for KESC ,HESCO ,IESCO, SSGC, SNGPL & PTCL ♦ Make MCB VISA Credit card bill payments ♦ Transfer funds to any MCB Account ♦ Buy Mobile pre-paid top ups for all Telecom companies ♦ Make a Mobile post paid bill payment for Telecom companies ♦ Make donations ♦ Purchase Insurance Eligibility:

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MCB ♦ MCB Account Holder ♦ Active ATM/Smart Card ♦ Cell Phone Number ♦ Customer data registered at call center

Loans and Advances ♦ Banks grant loans to the spenders so MCB bank also grant different kids of loan to different customers Consumers Loans: ♦ MCB bank offer loans for personal use to the individuals or group of people it will be granted on the incomes of the desired individuals.

Commercial and Corporate: ♦ MCB also offer commercial loans to the individual and group of people it will granted on the in three ways as under:

♦ Hypothecation: In this case ownership and possession in names and hands of client. ♦ Pledge: In this case ownership and possession in names and hands of bank. ♦ Mortgage: In this case ownership in names of bank but possession in hand of client.

Running Finance: ♦ It will be issue on hypo bases and personal guaranty is required for it.

Running Finance Instant:

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MCB ♦ It will be issue on pledge bases and personal guaranty is required for it.

Cash Finance: ♦ It will also issue on pledge base pledge and personal guaranty is also requiring for it.

Cash for Cash: ♦ It will also issue on pledge bases but in this case pledge assets must be liquid and personal guaranty is also required for it.

Demand Finance: ♦ It will be issue on mortgage bases and personal guaranty is also required for it. MCB Rupee Travelers Cheque ♦ Rupee Travelers Cheque, being the market leader, is the most widely accepted way to pay cash for travel-related purposes. MCB Investment Services ♦ MCB Investment Services offer distribution of mutual funds managed by the leading fund managers of Pakistan

MCB Advisory Services ♦ MCB also provide financial advisory services, commercial structuring support and access to capital resources to help companies successfully finance their business/project.

MCB Lockers ♦ Lockers of different capacities are available nationwide.

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MCB MCB Home Remittance ♦ MCB Home Remittance provides a faultless inflow of foreign remittances credited in the beneficiary’s account within minutes.

MCB Equity Capital Raising ♦ MCB offer capital for their clients by offering common or preferred equity to public or private investors, through initial public offers, offers for sale, rights issues and private equity placements

MCB Islamic Banking ♦ MCB Islamic Banking provides Reba Free and Sarah Compliance services to a variety of customer segments

2.5 PESTL analysis: A broad view of market is important when management is interested in introducing better services for customers. Rapid technological change, global competition and the diversity of buyers preferences in many markets require the constant attention of the...