MCB Islamic

INTRODUCTION

Learning and gaining knowledge through studies from an institute and applying that knowledge into an organization are two very different things. During my studies, my main objective was to learn everything that I could so that I could use that knowledge for a better cause in future, like for advancement in career. But when I came to MCB for internship, I observed that it really didn‟t matter at first what my skills were, what mattered was my behavior and how cooperative I was with all the staff members. Small tasks which didn‟t really required much skill like making entries in registers and binding the printings of the posting in the files were given to me to check how much was I interested in finishing the tasks that were assigned to me. Once they found me hardworking and determined towards learning, they started assigning me complicated tasks which explained to me the different process going on in the bank. I have divided this report into three chapters. The first chapter explains the introduction of the organization, its products and services, SWOT analysis and the different departments of the branch and their working. The second chapter explains the tasks done by me on weekly basis and finally I have concluded the report with some recommendations for MCB Islamic Banking and IBIT and some of the new things that I learned from my internship.

Institute of Business & Information Technology

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EXECUTIVE SUMMARY

MCB Bank Limited (Formerly Muslim Commercial Bank Limited ) has a solid foundation of over 60 years in Pakistan, with a network of over 1000 branches, over 400 MCB ATMs in 41 cities nationwide and a network of over 12 banks on the MNET ATM Switch. MCB's operations continued to be streamlined with focus on rationalization of expenses, re-alignment of back-end processing to increase productivity, enhancement of customer service standards, process efficiency and controls. The Bank has taken the lead in introducing the innovative concept of centralizing Trade Services in the country by providing centralized foreign trade services to branches with a view to improve efficiency, expertise and reduce delivery cost. During my internship in MCB I worked in Remittances, Advances and Operations department and I successfully completed all the task/duties that were assigned to me. During the course of internship I learned about different functions performed by Remittances, Advances and Operations department and bank as a whole. I also learned bank‟s correspondence with their cus tomers and within branches. I learned about documentation requirements and record keeping for different activities and processes.

































MCB BANK LIMITED MCB is one of the leading banks of Pakistan incorporated in 1947. MCB was nationalized in 1974 along with all other private sector banks. It was privatized in 1991 when Nishat Group bought a majority stake in the bank. MCB‟s shares are traded on all three exchanges of Pakistan and its global depositary receipts are listed on the London Stock Exchange. Malayan Banking Berhad (“Maybank”), the largest bank in Malaysia by total assets, has a 20% equity interest in MCB.

During the last fifteen years, the Bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its loan book through improved risk management processes.

MCB MCB is Pakistan‟s fourth largest bank by assets having an asset base of PKR 445 billion at December 31, 2008 on a consolidated basis and the largest bank by market capitalization. The Bank has a nationwide distribution network of over 1,050 branches. * In 2008, MCB reported an after tax profit of PKR 15.3 billion on a consolidated basis.

















MISSION & VISION

Vision statement: “To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.”

Mission statement: “We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so, we ensure that our shareholders can invest with confidence in us.”

MCB TOWER: A Vision of the Future: Future: The modern, urbane architecture and intelligent design of MCB Tower reflects MCB‟s pioneering role in the banking arena, providing cutting edg e, innovative banking solution, leading with an edge of technology.

Setting Ever-Higher Standards: Towering at 116 meters, with 29 levels and 3 basements, MCB tower is the tallest building in Pakistan. It is a sound representation of MCB‟s leadership position in the banking sector, testified by fou r “best bank in Pakistan” Euro

















Manifestation of Strong Foundation: MCB tower is a manifestation of MCB‟s strong foundation with over 50 years of banking excellence and represents its commitment towards always staying a step ahead.

Understanding At all levels: From individual customers to corporate and commercial clients, MCB‟s flexible solutions reach out to a diversified audience is reflected in all levels of MCB tower.



















CORPORATE PROFILE OF MCB Board of Directors: 

Mian Mohammad Mansha

Chairman

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S.M. Muneer

Vice Chairman

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Mohammad Aftab Manzoor

President & Chief Executive

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Tariq Rafi

Director

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Mohammad Arshad

Director

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Shahzad Saleem

Director

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Sarmad Amin

Director

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Mian Umer Mansha

Director

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Aftab Ahmed Khan

Director

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Atif Yaseen

Director

Advisor 

Raza Mansha

Audit Committee 

Mian Mohammad Mansha

Chairman

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Mian Umer Mansha

Member

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Aftab Ahmed Khan

Member

















AWARDS WON BY BY MCB Euro money Awards:

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Best Bank In Asia Award 2008

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Best Bank In Pakistan Award 2006

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Best Domestic Bank Award 2000

Asia Money Awards:

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The Best Domestic Commercial Bank Award 2005

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The Best Domestic Commercial Bank Award 2004

















PRODUCTS & SERVICES OF MCB BANK LIMITED MCB is catering to the growing needs of its customers by providing new products and services. The products and services that are being offered by MCB for consumer banking are:

1. ATMs

:

MCB has the nation's largest network of over 197 ATMs and is still growing. The customers can get 24 hour convenience of cash withdrawal, mini statements, and bill payment and funds transfer services. The bank provides 24 hours banking services through the largest ATM network in Pakistan covering 24 cities with over 262 locations.

2. Mobile Banking

:

Banking at fingertips, the customers can dial in anytime to get information

















4. Smart Card: MCB Smart cards work on ATMs and Point of Sale terminals at merchant locations & offer the following features: 

Purchasing

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Bill payments

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Funds transfer

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Cash withdrawals

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Balance inquiry

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Mobile banking

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Mini statement

5. Rupee Traveler Cheques: MCB Rupee Travelers Cheques are as good as cash, in fact better. Better because with Rupee Travelers Cheques the customers have the power to purchase and a feeling of security that if the customer loses it, he/she can get a refund. MCB Rupee Travelers Cheques are accepted at major shops, travel agents, hotels, business establishments and MCB branches all over Pakistan. The

















6. Bill payment MCB also provides the facility of utility bills payment to its customers. The customers can deposit their utility bills in any MCB branch that is near their homes.

7. Virtual Banking: MCB Virtual Internet Banking offers the customers the convenience to manage and control their banking and finances; when they want and where they want. MCB‟s Virtual Internet Banking Banki ng facility is: 

Simple

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Secure

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Free of cost.

MCB Virtual Internet Banking allows the customers to access banking services, 24 hours a day, 7 days a week and throughout the year.

What do they Offer? MCB Virtual Internet Banking offers a wide range of online services which makes banking accessible anytime and from anywhere. 

Detailed Account Summary of all listed accounts.



















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Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary to the corporate employees, who maintain accounts with MCB.

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Cheque Book Request for any of your listed accounts.

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Payment/Transfer Alerts for reminding, in advance, prior to the processing of specified payments and transfers.

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Personal Alerts for reminding of pre-specified events and occasions.



















HIERARCHY OF MCB AJMAL HOUSE BRANCH

CHEIF MANAGER

MANAGER OPERATIONS

MANAGER CREDITS

FOREX CASH OFFICER

OFFICER



















MCB ISLAMIC BANKING Islamic Banking Division was formed with effect from 1st January 2003, which in a short span of time, has developed sufficient expertise, necessary infrastructure, information technology, and manpower to run Islamic Banking Operations and offer Islamic Banking Products.

PROHIBITION OR RIBA ACCORDING TO QURAN & HADITH Riba (Interest) in Quran:



















SAYING OF HOLY PROPHET



















MISSION & VISION OF MCB ISLAMIC BANKING MISSION STATEMENT: To play a dynamic role in promotion of Islamic Banking and win

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customers trust by providing Shariah compliant financial services”

VISION STATEMENT: “To become a leader among Islamic Banks of the country in the coming years capturing major share of the domestic Islamic financial market” .

SHARIAH ADVISOR: Dr. Muhammad Zubair Usmani, working as Shariah Advisor in MCB Islamic bank since July 2000 is a prominent scholar having Ph.D. degree in Islamic Finance as





















LEGAL ADVISOR: M/s Mohsin Tayebaly & Co., Advocates & Legal Consultants, has vetted all documentation. The Co. for this purpose not only has expertise in legal and corporate affairs but also have competent lawyers possessing knowledge of Shariah.

HOW IS THE RETURN HALAL? Care would be taken in ensuring that both the arrangements of accepting





















DIFFERENCE B/W ISLAMIC & CONVENTIONAL BANKING CONVENTIONAL BANKING

ISLAMIC BANKING

The functions and operating modes of

The functions and operating modes of

conventional banks are based on fully

Islamic banks are based on the

manmade principles.

principles of Islamic Shariah.





















It can charge additional money

The Islamic banks have no provision to

(penalty and compounded interest) in

charge any extra money from the

case of defaulters

defaulters. Only small amount of compensation and these proceeds is given to charity. Rebates are given for early settlement at the Bank's judgment.

Very often it results in the bank's own

It gives due importance to the public





















SWOT ANALYSIS OF MCB ISLAMIC BANKING STRENGTHS: MCB is the first Pakistani privatized bank and because of its quality management, marketing, innovation in products and services. Owing to all such factors it has established a good reputation in the banking market. The name of MCB makes us recall the highly cooperative and professional individuals ready to





















OPPORTUNITIES: There are too many people in Pakistan who want to deposit their money in Islamic mode of financing due to their religious points of view. MCB as a bank that offers both conventional and Islamic banking can cater a huge customer market. But for that MCB has to advertise its Islamic banking products effectively so that customer would come to know that that it differs from conventional banking and how it is Halal.























“AL“AL-MAKHRAJ” RIBA FREE ISLAMIC INVESTMENT / DEPOSIT SCHEME























INVESTMENT DECISIONS: Funds will be managed by MCB, acting as Mudarib on a discretionary basis i-e the investment decisions will be completely of MCB management.























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Minimum Initial Deposit: Rs. 5000

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Islamic Tools used in designing the product: Mudaraba/ Musharaka.

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Product to be availed by: Individuals & Joint Account Holders (Local)























IANAT ACCOUNT























AL-MAKHRAJ TERM DEPOSIT DEPOSIT

















































































































































































































































































































































































































































































































NEW THINGS LEARNED 

I learned about the different banking processes.

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Since the branch was for the individual as well as for the corporate clients, this gave me the opportunity to learn the banking requirements of both type of clients.

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I learned about the importance of customer delightness for a bank.

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I learned about the different problems that the customers face regarding banking.

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I learned about how to deal with the day to day operations in a bank and the ways to deal with them efficiently.

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I learned the importance of interaction with the co-workers that helps to create a better working environment

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And lastly, I learned that if you want to perform better you have to love your job, only then you can achieve the heights of success.

















SUGGESTIONS FOR IBIT All that I am appraised appraised today is owed to my grooming grooming in IBIT. IBIT. This institute has given me knowledge and confidence that has helped me to adjust in the working environment of today. But nothing is perfect, so to improve the quality standards of IBIT I‟d like to give the following recommendations.

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Most of all, the department needs to spread awareness about its products in the market because most people take our degrees of BBIT and MBIT as degrees in IT and not business studies. This can be done by arranging seminars in the department and inviting people from the market.

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I would suggest that the strictness in speaking English language should be enforced. This will help to develop confidence in the students for giving presentations and will also help them in their professional lives.

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Extra-curricular activities like debates, dramas and sports day are regularly arranged by other departments of the university but unfortunately we don‟t see these things happening frequently in our department. These activities will not only help to keep the students motivated and build confidence in them but will also enhance the image of the department in the university.

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The capacity of the computer lab cannot accommodate all the students of the department. The students face problems, especially during the preparation of their reports. The capacity of the lab should be enhanced immediately.

















RECOMMENDATIONS FOR IBITians WHO APPLY FOR INTERNSHIP INTERNSHIP IN MCB

MCB is a great organization to do internship. You get to learn so many things that are routine for the staff but new concepts for you. Since MCB‟s horizon for the products and services is vast, it is a great opportunity to learn about the diversity of banking procedures in MCB. When you work in a bank like MCB, you understand what it like is to be really dealing with customers face to face daily. The environment in the branch truly represented the whole organization in front of me and all other internees. The tasks that were assigned to me were a great learning experience which I could never get merely through studying books. I would highly recommend MCB for internship for future students of IBIT.

































Customer Vouchers: It is used to pass any entry regarding the customer account means whenever we are going to make a change in customer account we have to use these vouchers. 

It has 2 copies first for office use and 2 nd carbon copy for the customer. Debit voucher is used to deduct money from the account and credit voucher is use to add money into the account.

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If we receive CBT favoring any customer of our branch then we have to fill a credit voucher to add money into his account.

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If we charge any commission or transfer money to other bank on the instruction of bank we have to fill a debit voucher to deduct money from customer ‟s ‟s account.



















Income and expense Vouchers There are other vouchers which are use to post income or expense of branch. Like if any charges recovered from customer then first we debit customer account through above voucher then fill income voucher to record that as income.

















INTER BANK CREDIT ADVICE:

MCB Islamic

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