-1-
INTRODUCTION OF MCB Incorporation: MCB Bank Ltd formerly known as Muslim Commercial Bank Limited was incorporated by the Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited company. The bank was established with a view to provide banking facilities to the business community of the sub-continent. The bank was nationalized in 1974 during the government of Zulfikar Ali Bhutto.MCB earned Revenue of PKR 31.787 billion and Net Income of PKR 15.266 billion in 2007..
Privatization: This was the first bank to privatized in 1991 and the bank was purchased by a consortium of distinguished Pakistani corporate groups led by Nishat Group.Nishat Group is one of the leading and most diversified business groups in Pakistan. The group has strong presence in the most important business sectors of the country such as banking, textile, cement and insurance. Mian Muhammad Mansha is the head and chairman of the group .He is regarded as one of the richest persons in Pakistan. He owns textile mills, the Muslim Commercial Bank and is a major player in cement. . He was awarded the Tamgha-e-Imtiaz civil award by President Musharraf on March 23, 2004..
Network: MCB is the fourth largest bank of Pakistan.Its wide network include fully facilitated branches all all over Pakistan.It covers 125 cities,comprising of 978 branches out of which 262 have the ATM machines.
Milestones: MCB has been awarded as a Euromoney Award 2008 for the " Best Bank in Asia".In 2006 MCB yet again received the esteemed Euromoney Award for the “Best Bank in Pakistan”. It is the only bank to receive the Euromoney Award for Excellence for the sixth time in the past seven years. MCB Continues to shine as once again Asia Money declares MCB as "The Best Domestic Commercial Bank in Pakistan" for the year 2004 and 2005.
-2-
Mission Statement MCB Bank’s team of committed professionals is dedicated to maintaining long term customer relationships through outstanding service and convenience… We see that MCB’s mission statement emphasizes on committed, skilled professionals. Such professionals are responsible to being the best financial services in most effective and efficient way. By using b readth of experience, capabilities and skills, they create value for all stakeholders that include clients, investors, employees, and society as a whole.and thus make long term profitable relationship with customers. Although the present world is so dynamic,but key to success remains constant: focus on customer needs, spirit of innovation,creative ideas and expertise combined with technology. MCB Bank Limited has a highly talented management team that loves and enjoy the challenges of solving problems and taking the initiative to continually learn.MCB’s team is fully fully dedicated towards its mission statement and passion passion to be customer focused.It is committed to • • • • • • •
pLan ahead of time kEeping a steady course. tAking on challenges aDding values to MCB’s services sEcuring common interest bRidging the distances aSsociating with you..
Thus having a true true sense of a successful leader..
-3-
CONTENTS OF MISSION STATEMENT Concern for growth,survival:
MCB is dedicated to maintain long term profitable relationships with customers. Concern for customers: MCB is fully intented to be customer oriented by p roviding them maximum satisfaction through outstanding service and convenience. Concern for employees: MCB has always welcomed and motivated motivated energetic, passionate and committed professionals.MCB consider its employees as Human Asset,the most important of all of its assets. Profitibility Concern: MCB believes in earning profit by providing best services to their customers. End users: The end users include salaried class,businessmen,students,industrialist,farmers,working class,businessmen,students,industriali st,farmers,working women etc. Market: MCB is the fourth largest bank of Pakistan that prevails through out the country ,comprises of more than 900 countrywide branches.Also its penetrating in international market.It has 9 branches in different countries and the journey is still going on. Major products and Services: The outstanding services mentioned in mission statement include the following Mobile Banking: MCB Mobile Banking gives easy and quick access to account at any time.Using it,a customer can Check his h is balance,View the last 4 transactions just by sending an sms.This service is provided free of cost. •
•
Virtual Banking:
MCB Virtual Internet Banking offers opportunity to access to account using internet ,while being in any part of world.Whether customer is in country or abroad,it provides full control over the account and other transactions.
-4-
` MNET : It enables all the member banks to share their electronic networks by their ATM’s at more than 600000 ATM machines worldwide. •
•
Call Center:
The state of the art MCB call center ensures maximum customer care.Customer can ask any query,problem and can also give feedback via call center.
Islamic Banking: Its intended to play a dynamic role in promotion of Islamic Banking and win customers c ustomers trust through providing financial services according to Islamic Islamic Principles. •
MCB Car 4 U: It provided an easy opportunity to get car,at very adequate terms and conditions. •
•
MCB ‘Pyara Ghar’:Its the your new most sensible option for purchasing, building, or renovating /existing home. It offers you a range of financing options to help you realize your dreams.
-5-
Major Major Plans Plans of 2007 2007 Credit expansion: In 2007 MCB’s majorly focused on credit expansion.Here it points to get back the trapped and bad debts.Major portion of money that any customer places into bank is again invested by the bank either into state bank or by giving loans to other people.Because of soft policy of state b ank,bank issued billions of Ruppees as loans but problems started rising when obstacles appeared in getting back the borrowed money.So MCB decided to stricken its policy about loans,and also to retake the trapped amount.
Improving Management: Management is the back bone of each organization.The success of the organization is depend upon the performance of the management.In 2007 MCB also focused on the management’s improvement.Following are the steps that were decided to be taken Fresh Graduates: MCB expelled the old people by golden shakehand process and appointed new young professionals people.This step is o ne of the major reasons for better services provided by the bank. Training Courses: MCB conducted training courses in order order to improve skills of staff and also to keep them in touch with the latest business matters.
Advance Technology : Technology plays plays a very important role in the development of any organization.Because with the use of latest technology they improve improve their performance. In 2007 MCB made a plan to improve their technology.It is noteworthy to mention that MCB declared 2007 as Year OF Technology. For this purpose MCB made plan to adopt state of the art softwares and providing training to their employees.Its also include making strong computer network between their branches. .The major reason was that Due to improvement in the technology technology check and balance system could improve.Accuracy also improves improves due to improvement improvement in technology. MCB made plan to arrange make online various conferences .The reason was to reduce the cost and to make participation of maximum zonal areas.MCB also decided to launch
-6Symbol System Technology.By that,a check of MCB can b e used in any branch of any bank though out the country.
Services Improvement: In 2007 ,MCB planned to amend overall culture of the bank.It planned to adopt an organized,regular and mannered culture.The main focus was transferred to to Customer Orientation.So Orientation.So the plan was to improve quality in their their services and products.For this purpose MCB fixed a lot of money for the training of their employees and also giving different different incentives to their employees for motivation.Special motivation.Special focus was imposed on ATM machines and other services like Car4U,MCB sabzazar,MCB Mobile banking,MCB Pyara Ghar .
Discipline: In 2007,MCB also focused for the improvement of discipline.To achieve this objective,new rules and regulations were decided to to be introduced.Employees were expected to strictly follow the rules and regulations.New policies were made regarding to dress code,Time,manners and way to treat the customers.
-7-
IMPLEMENTATION OF ABOVE PLANS All of the plans discussed above were practically implemented.Special internal auditors and external teams were sent to all the branches throughout the country to audit and check the performance.Strict rules made in case of violence,effective training,proper communication were among the reasons that resulted in complete implementation of these plans. According to Mr Malik Abbas,the Manager whom we met and had interview,all of the above made plans were 100% implemented.He calls it a milestone in the history of MCB.He thinks it to be very rare is organizational history that how such challenging plans were successfully successfully implemented.He gives major credit to hardworking employees,their learning skills,determination and will power.
CONTRIBUTION OF IMPLEMENTED PLANS The implementation of the above made plans resulted in in very positive and pleasing outcomes.The most note worthy point was total change in MCB’s organizing and managerial structure that finally gave a very positive touch to MCB’s culture.The previous culture was completely vanished and new customer oriented and innovative culture completely prevailed the whole of the organization. Mr Abbas claims that this new vision of MCB has amazed people by its services and outlook.This new version became popular very soon and was highly appreciated by the people.A sudden increase was seen in complimentary feedback.This directly resulted into increase in customers by upto 70%.It compelled MCB’s management to open more branches,even branches were launched in remore areas.And also to update the existing branches with state of the art facilities and latest technology.It eventually resulted into increase in value and goodwill of MCB, and finally more profit that are the ultimate stratigies of any organization.
-8-
CULTURE OF MCB
Innovation:
MCB declared innovative and extensive portfolio of investment products in order to achieve leadership position among financial institutes.A complete new look in MCB’s culture is majorly because of innovation.
Stability:
MCB has stable and well organized environment.It is highly rule oriented.Every employee is bound to obey rules regarding Dress,Time,Behaviour towards customers.
Orientation towards employees:
MCB considers its employees employees as the Human Asset,the Asset,the most important asset of the whole organization.So in order to retain this asset as such,MCB’s management fully encourages and motivates their employees.Special packages,rewards,bonuses etc are awarded to deserved employees ,and this also motivates the other employees.
Orientation towards customers: MCB not only focuses on to earn profit.But it also focuses on to increase the customer satisfaction by providing them best services.For this purpose employees of MCB meet their customers with good care,special attention and responsibility.They listen their problems and solve them as early possible.In this way they create a good image of MCB in the mind of customer.Which is very helpful for attracting the new customers. MCB also focuses on to provide complete information to their customers.For this purpose the employees of MCB create a good communication with their customers.If any customer do not understand English or Urdu then they try to communicate with their customer in their mother language and provide complete information to him.Except this MCB also expand a lot of money each year on the advertisement.The main purpose of these advertisement is to provide complete information to their customers.
-9Easy Goingness: MCB do not allow any relaxation with their employees within working hours.However,adequate time has been fixed for refreshment,tea,meal etc. Also the employees are bound to come and leave at fixed time.However in emergency cases,employees are fully coorporated.During the banking ho urs it not allow for the employees to meet with their friends and members.The main purpose of these rules and regulations to create improvement in their services. During our group visit we found that the behavior of the branch manager and their employees is very good with their customers and also with us.It also create a good image of the MCB in the mind of customers.If any customer came in their busy time then they treat them in politely manner. Collaboration:
In MCB we see, if there is any problem occur.Then branch manager call a meeting of their employees and get their suggestions. In the end manager take the action which is best in his view.The culture is very collaborative.The ideas and information is shared and decisions are mostly made in collaboration with employees.
- 10 -
SUGGESTIONS
•
There should be decentralization in the structure of MCB bank.
•
Human Resourse Department must exist at atleast every zonal branch.
•
Management should make the market survery time to time,after regular intervals to have latest and authentic information about ab out market and other influencing factors
•
Marketing campaign should be more strong so that people could fully get aware awa re about MCB and its services.
•
For opening account in bank,to bank ,to pay or get services from MCB,there must be online confirmation of NIC from NADRA.
•
In every branch,there must be separate refresh room for female employees..
•
MCB comprises of more than 900 branches b ranches but only 262 have facility of ATM machines.The remaining branches should also be facilitated with ATM machines as soon as possible.
•
MCB should make more investment in Islamic Islamic banking and open atleast one Islamic Banking branch in every city of country.
- 11 -
CONCLUSION •
We have concluded that MCB is fully committed,motivated and aimed to do exactly what is mentioned in its mission statement.
•
MCB has ability to face the challenges of present dynamic world.
•
Skilled and highly talented staff are keen to provide best services to the customers in most efficient and effective way.
•
MCB management imposes close observation on any uncertain,ambiguous events.Necessary steps are briskly adopted to reduce risk and uncertainity.
•
MCB management is fully aware of present Banks Crises.And has taken necessary steps to satisfy all of its customers about various rumors that are in the air.
•
MCB aims to build long term relationships with customers,thus making profitable relationship with them.
•
MCB pays full concern towards towards its employees.Its rewards and motivates them by rewarding different bonuses.
•
MCB is making progress by leaps and bounds.Innovation boun ds.Innovation in collaboration with creative ideas is taking it to new heights,enabling it to touch climax.
•
MCB management also seems interest to prevail over international market.
•
MCB has always showed full responsibility towards various societal activities.
•
Finally we conclude that MCB’s journey towards success of heights is going on…If it keep on moving as so,soon it will touch maximum fame..Even beyond the imagination…
