Internship Report on Muslim Commercial Bank (MCB) 2009

EVOLUTION OF BANKING

The word 'Bank' is said to have been derived from the words Bancus or Banque or Bank. This history of banking is traced to as early as 2000 B.C. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmiths. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money found it safe and convenient of deposit their valuables with them. The first stage in the development of modern banking, thus, was the accepting of deposits of cash from those persons who had surplus money with them.
The goldsmiths used to issue receipts for the money deposited with them. These receipts began to pass from hand to hand in settlement of transactions because people had confidence in the integrity and solvency of goldsmiths. When it was found that these receipts were fully accepted in payment of debts; then the receipts were drawn in such a way that it entitled any holder to claim the specified amount of money from goldsmiths. A depositor who is to make the payments may now get the money in cash from goldsmiths or pay over the receipt to the creditor. These receipts were the earlier bank notes. The second stage in the development of banking thus was the issue of bank notes.
The goldsmiths soon discovered that all the people who had deposited money with them do not come to withdraw their funds in cash. They found that only a few persons presented the receipts for encashment during a given period of time. They also found that most of the money deposited with them was lying idle. At the same time; they found that they were being constantly requested for loan on good security. They thought it profitable to lend at least some of the money deposited with them to the needy persons. This proved quite a profitable business for the_ goldsmiths. They instead of charging safe keeping charges from the depositors began to give them interest on the money deposited with them. This was the third stage in the development of banking.

DEFINITION OF A BANK:
The term 'bank' is being used for a long time, yet it has no precise definition. The basic reason is that the commercial banks perform not just one but many types of functions. The term bank has been defined differently by different authors. Some are as follows:
According to Crowther,
"Bank is a dealer in debts—his own and of other people."

According to G.W. Gilbert,
"A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another."

According to Banking companies ordinance 1962
u/s3(B) of Banking Companies Ordinance 1962 "Banker means person transacting the business of accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise and includes any Post Office Savings Bank."




















COMMERCIAL BANKING IN PAKISTAN
The interesting point which I observed during the span of mine internship was the historical background of Banking & Financial sector which is the one in which great improvement and growth is observed since the formation of Pakistan. For studying the growth of this sector we can divide it into three stages, which are as follows:
a) Pre-Nationalization Era
b) Nationalization Era
c) Post Nationalization Era

A) PRE NATIONALIZATION PERIOD:
There were only two Muslim banks in Indo Pak before partition, they were;
Habib Bank Ltd. (estd. in 1941 at Bombay) & Australia Bank Ltd. (estd. In 1944 at Lahore). All other banks, at that time, were either owned by Hindus or Foreigners.
At the time of partition there were 631 bank branches in area which came under Pakistani control. But due to blood shed and violence at large scale, mostly branches were closed and the disparity can be assessed from the fact that on July 1948 there were 195 branches with deposits of Rs.88 crore (880 million) only. Also a factor lagging in Pakistani industry was a central bank of its own, by that time Reserve Bank of India was acting as central bank for both countries and same currency notes were used in both territories. But Reserve Bank of India was biased and Set down Pakistan on many occasions such as the issue of funds transfer etc.
In this period drastic steps were taken in government sector for the improvement of overall position. The private sector also responded to these changes and some very positive changes were observed. Some of the steps taken by the government in this regard were as under:
1) Inauguration of State Bank of Pakistan (SBP) on 1st July, 1948.
2) Setting up of National Bank of Pakistan in November, 1949 to control the 'jute' export in East Pakistan and to act as agent of SBP.
3) Larger powers were given to SBP through SBP Act (1956) for controlling purposes.
4) Banking Companies Ordinance 1962 for protection and guidance to banks.
5) Establishment of specialized banks, such as ADBP (1952);
a) HBFC (Nov, 1952);
b) P1CIC (Oct, 1957)
c) IDBP (Aug. 1961);
d) NDFC (Jan, 1973).
These were the steps, which built a strong banking sector in Pakistan. This is also obvious from the facts that by 1973 there were almost 10 foreign banks were working in Pakistan and all over deposit position was around Rs.2300 crore (23,000 million). A bird eye view of 5 top banks was as given below:
BANK POSITION IN 1973

BANK NO. OF BRANCHES DEPOSITS
HBL
667
6,160

NBP
579
5,660

UBL
497
5,670

MCB
506
1,640

ABL
145
570


B) NATIONALIZATION PERIOD
On January 01, 1974 all Pakistani banks were nationalized through Nationalization Act 1974. Under this law all Pakistani banks became a public property. All small banks were merged in bigger banks to create 5 major Pakistani banks Pakistani banks. These banks were to control by Pakistan Banking Council. There are still controversies about this act of government as whether it contributed in success of failure of banks. However the major changes after nationalization were as follows:
¶ Working of banks was extended to under developed areas.
¶ Market expansion for credit and deposits.
¶ Decrease in service level of bank officers.
¶ Decrease in profitability as well.
However the effect of expansion was enormous and it can also be depicted with the help of table 2 which shows the deposit & branch positions of different nationalized banks.


BANK POSITION IN 1992

Bank No. of Branches Deposits (Rs. In Millions)
HBL
1926
153,431

NBP
1448
128,679

UBL
1684
87,482

MCB
1288
50,013

ABL
750
33,757

TOTAL
7096
453,362


C) POST NATIONALIZATION ERA
In 1990 the government decided to denationalize all the nationalized institutes. Some was also suggested in banking sector. For this purpose, amendments were made to Nationalization Act 1974 and two nationalized banks were privatized. Along with this a permission to open banks in private sector was also granted. The rules regarding establishment of new banks and for incoming foreign banks were also
Relaxed.
The-three privatized banks are;
a) MCB taken up by a private group in April, 1991
b) ABL taken up by its own employees in September, 1991.
c) UBL taken up by UAE party in 2002.
After these changes a large number of private and foreign banks started their operations in Pakistan and the present status can be seen from the following figures:

SCHEDULE BANKS
Category No. of Banks
Nationalized Commercial Banks 3
Private / Privatized Commerce Banks 18
Public Sector Specialized Banks 4
Foreign Banks 19
Total Schedule Banks 44
In addition to above mentioned scheduled banks there are 7 Development Financial Institutes, 14 Investment Banks and Modarbah Companies.


MUSLIM COMMERCIAL BANK LTD.
(HISTORICAL BACKGROUND)
Now let us discuss the historical background of Muslim Commercial Bank Limited. Before separation of Indo Pak, the need for more Muslim banks was felt. And Muslims having strong financial capacity were thinking to invest in this sector as well. This was the idea which paved the way for setting up Muslim Commercial Bank Ltd known as MCB. This was the third Muslim bank in the subcontinent.

HISTORY
This bank was incorporated under companies’ act 1913 on 9th July, 1947 (just before partition) at Calcutta. But due to changing scenario of the region, the certificate of incorporation was issued on 17th August, 1948 with a delay of almost 1 year; the certificate was issued at Chitagong. 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.
After some time the registered office of the company was shifted to Karachi on August 23rd, 1956 through a special resolution, now recently the Head office of MCB has been transferred to Islamabad in July, 1999 and now Head office is termed as Principle Office.
This institute was nationalized with other on January 1st, 1974. At that time it had 506 branches and deposits amounting to Rs. 1,640 million. Although. MCB has a reputation of a conservative bank but nationalization also left its effects on this institute as well and by end of year 1991 in which it was privatized the total number of branches were 1.287 and deposits amounting to as high as Rs. 35,029 million.
When privatization policy was announced in 1990, MCB was the first to be privatized upon recommendations of World Bank and IMF. The reason for this choice was the better profitability condition of the organization and less risky credit portfolio which made'' it a good choice for investors. On April 8th, 1991, the management control was handed over to National Group (the highest bidders). Initially only 26% of shares were sold to private sector at Rs. 56 per share.

DEVELOPMENTS
After privatization, the growth in every department of the bank has been observed. Following are some key developments:
1) Launching of different deposit schemes to increase saving level.
2) Increased participation on foreign trade.
3) Betterment of branches and staff service level.
4) Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time in Pakistan.
5) Extended use of information technology which is evident from the fact that there are 768 fully automated branches, 243 online branches (integrated networking), 151 ATMS in 27 cities nation wide and a M.C.B continuously innovate new product.































MANAGEMENT OF THE ORGANIZATION


MANAGEMENT OF THE BANK

Mian Mohammad Mansha Chairman
S.M. Muneer Vice Chairman
Mohammad Aftab Manzoor President & Chief Executive

Tariq Rafi Director
Sheikh Mukhtar Ahmed Director
Mohammad Arshad Director
Shahzad Saleem Director
Raza Mansha Director
Sarmad Amin Director
Mian Umer Mansha Director

AUDIT COMMITTEE

Mian Mohammad Mansha Chairman
Shaikh Mukhtar Ahmed Member
Shahzad Saleem Member

CHIEF FINANCIAL OFFICER

Ali Amin

COMPANY SECRETARY

Tameez-ul-haque

ORGANIZATIONAL STRUCTURE
As MCB is a banking company listed in stock exchange therefore it follows all the legalities which are imposed by concerned statutes Mr. Muhammad Mansha is chairman & chief executive of the company with a team of 10 directors and 1 vice chairman to help in the business control and strategy making for the company.
Operational Management of the bank is being handled by a team of 10 professionals. This team is also headed by Mr. Muhammad Mansha. The different operational departments are Consumer Banking & IT div; Financial & Inter branch div; Banking operations div; HR & Legal div; financial control & Audit div; Credit management div; Commercial Banking div; Corporate Banking div; Treasury management & FX Group and lastly Special Assets Management (SAM) Group.
For effective handling of branches, it has been categorized into three segments with different people handling each category. These categories are:
a) Corporate Banking
b) Commercial Banking
c) Consumer Banking

A) CORPORATE BANKING:
These are branches which have an exposure of over Rs. 100 million. Usually includes multinational & public sector companies.

B) COMMERCIAL BANKING;
The branches which has a credit exposure of less than Rs. 100 million but having a credit portfolio of more than Rs. 20 million (excluding staff loans)
Usually branches in large markets and commercial areas come under this category.

C) CONSUMER BANKING
These are the branches which have exposure up to Rs. 20 million and these include all the branches which are neither corporate nor commercial branches.
Recently the organizational structure was re-designed as follows:
Province wise branches

Corporate Consumer Commercial
20 branches 637 branches 383 branches



NUMBER OF BRANCHES IN DIFFERENT LOCALITIES

Punjab 632
Sindh 232
NWFP 123
Blochistan 34
Azad Kashmir 19
Domestic 1040
Overseas 4
EPZ 1
Total 1045

Sri Lanka 3
Bahrain 1

Furthermore, the bank has some proposals under consideration to open more brances in some European countries and as well as in japan & china

HIERARCHY OF MANAGEMENT
















MEDIOCRE LEVEL MANAGEMENT


The organization chart within a department and in different offices is as follows:

Divisional Heads ………..…………………… Head Office
Regional Head (EVP) ………..…………………… Regional Office
Zonal Head (VP) ………..…………………… Zonal Office
Branch Manager ………..…………………… Branch
(VP, AVP, GRADE 1, 2, 3)



FIELDS OF ACTIVITIES OF MCB
The purpose of banks is to provide some services to the general public. And for this purpose different banks provide different services to the people in different forms. The Muslim Commercial Bank (MCB) is a commercial bank, in modern time commercial banks play a very important role and their functions are manifold. The main functions and services which Muslim Commercial Bank Limited provides to different peoples are as follows.

1) Open Different accounts for different peoples
2) Accepting various types of deposits
3) Accepting various types of deposits
4) Granting loans & advances
5) Undertaking of agency services and also general utility functions, few of those are as under:
a) Collecting cheques and bill of exchange for the customers.
b) Collecting interest due, dividend, pensions and other sum due to customers.
c) Transfer of money from place to place.
d) Acting an executor, trustee or attorney for the customers. ‘Providing safe custody and facilities to keep jewellery, documents or securities.
e) Issuing of travelers cheques and letters of credit to give credit facilities to travel.
f) Accepting bills of exchange on behalf of customers.
g) Purchasing shares for the customers.
h) Undertaking foreign exchange business.
i) Furnishing trade information and tendering advice to customers.

For proper functioning of branches and the over all bank has been divided in different departments. These departments handle different jobs so that division of work is there for improvement of functions and also it is easy to control the situation. The general division in a branch is as follows:

1) Cash department
2) Deposit department
3) Advances & credit department
4) Foreign exchange department
Technology department (new addition in order to cop with the growing needs of day to day technology requirements)


CASH DEPARTMENT

The following books are maintained in the Cash Department:
1. Receiving Cash Book
2. Paying Cash Book
3. Token Book
4. Scroll Book
5. Cash Balance Book
When cash is received in counter, it is entered in the Scroll Book and Receiving Cashier Book. At the close of the day, these are balanced with each other.
When the cheque or any negotiable instrument is presented at counter for payment, it is entered in the token book and token is issued to the customer. The token clerk and the Cashier make entries in the paying book and payment is made to payee. At the close of day, the Token Book and Paying Cashier Book are balanced.
The consolidated figure of receipt and payment of cash is entered in the cash balance book and drawn closing balance of cash.
Opening Balance + Receipts - Payments = closing Balance.
This is very important department because cash is the most liquid asset and mostly frauds are made in this department, therefore, extra care is taken in this department and nobody is allowed to enter or leave the area freely. Mostly, cash area is grilled and its door is under supervision of the head of that department. All the books maintained in this department are checked by an officer.


DEPOSIT DEPARTMENT
Bank deals in money and they are merely mobilizing funds within the economy. They borrow from one person and lend to another, the difference between the rate of borrowing lending forms their spread or gross profit. Therefore we can rightly state that deposits are the blood of the bank which causes the body of an institution to get to work. These deposits are liability of the bank so from point of view of bank we can refer to them as liabilities.
The total deposits of MCB are growing since its inauguration but after privatization there is a sharp incline in over all deposits of the bank. The increase in deposits is also a cause of increase on total number of accounts; bank has progressed in both aspects.

TYPES OF DEPOSITS
Deposits can be segregated on two bases, one is the duration in which there funds are expected to be with the bank and second is the cost of getting these funds. So divide deposits in two classes according to duration of deposits i.e.
1) Time deposits / liabilities
2) Demand deposits / liabilities
And on the basis of the cost to acquire these funds, a deposit can be classified as any one of following four, High Cost Medium Cost, Low Cost No Cost.
Banks has different kinds of deposit schemes in order to induce deposits. These schemes are a mixture of the above mentioned two types of deposits with an addition of different services & requirements such as minimum balance' requirement, mode of transaction, basis for calculation of profit, deductions, additional benefits, eligibility for different groups.
In the similar fashion, MCB has a large variety of deposit schemes and some of them are as follows:

CURRENT A/C (CD):
In this type of accounts the client is allowed to deposit or withdraw money as and when he likes. He may, thus, deposits or withdraws money several times in a day if he likes. There is also no restriction of amount to be deposited or withdrawn. However, there is requirement of minimum balance maintenance of Rs. 1000/-. Usually this type of account is opened by the businessmen. No profit is paid by the bank and no service charges are deducted by the bank on current deposits account. These types of deposits are also exempt from compulsory deduction of Zakat.

PLS SAVING BANK A/C (SA):
This type of account is for those persons who want to make small savings'. This type of account is opened with a minimum deposit of Rs. 1000/-. Under this scheme deposits can be made only up to a-costing amount and withdrawals are allowed twice a week or 8 times a month. If a big amount is required a seven days notice is required before the withdrawal. The profit is paid on these accounts on the minimum balance during a month for the whole of that month. Zakat & other withholding taxes are deducted as per rules of the government.

KUSHALI BACHAT A/C (KBA):
This is an advance form of PLS saving a/c, in this type of account. The minimum balance requirement for this type is Rs. 2500/-. There is also restriction on the number of withdrawals as well, i.e. up to 4 times in a calendar month. For maintaining this extra balance the customer gets the benefits of profit calculation on daily product basis and also free service of standing instructions of paying utility bills and HBFC installments. All other rules of saving account are applicable.

PLS 365 SAVING A/C:
This is a special type of saving account in which customer maintains a minimum balance of Rs. 300,000- and in turn he gets the benefits of daily profit calculations and also there is no restriction on the maximum number of withdrawals as was there in the case of KBA. There is also another advantage of this scheme that if balance on a particular day falls below the minimum balance then only the product of that day is ignored whereas in KBA, if balance falls below the minimum limit then all the products for that month are ignored on in other words no profit is paid for that month.

NOTE:
PLS Saving, Kushali Bachat & PLS 365 saving accounts can be opened in foreign currency also. Before nuclear tests of 1998 these accounts were opened in four major currencies but now these are only opened in USD ($). However, now bank discourages the opening of foreign currency accounts because no forward cover risk is provided by State Bank of Pakistan (SBP) and all the loss in case of devaluation or depreciation in local currency has to be born by bank himself. This increase in cost has left foreign currency account of no use, therefore, now bank prefers to accept deposits in local currency rather in foreign exchange.

KHANUM BACHAT SCHEME:
This is a type of term deposit, in this type of deposit an account is deposited and monthly payments of Rs. 1000/- are made by the account holder in this account for a minimum of 10 years. After the expiry of term, he receives his funds along with profit for the tenor. The distinctive feature of this product is that profit is calculated on monthly basis and charged to account on end of each half /ear. Then profit is also calculated on that amount of profit which is credited to the customer's account. So we can say that in this type of account there is a concept of accumulated profits on profit. This ends in getting a heavy return for the depositor at the end of tenor for his small savings. This product was actually introduced to promote saving habits in the people. Zakat and withholding taxes are deducted as per rules only at the time of maturity while making payment to the customer.

HAJJ MUBARIK SCHEME:
This is also very closely related with Khanum Bachat scheme. This was designed to help the persons who are willing to offer Hajj but are unable to save required funds. In this deposit schemes, 2 or 3 years agreement is entered with a customer. During this time he keeps on depositing monthly deposits and his account is charged with the accumulated profits calculated on 6 monthly basis. The scheme is so designed that total amount to be received at the end of this scheme comes equal to the anticipated cost of offering Hajj at the end of tenor. Zakat & withholding tax are deducted at the time of payment.

MONTHLY KUSHALI SCHEME:
This scheme is similar to CGC in the sense that an initial deposit is made in this case also but instead of lump sum payment at the end of the tenor, the person gets a monthly profit on his deposits. Under this scheme, the bank has guaranteed minimum rate of 1% per month but usually this rate is more than 1% per month. Zakat & withholding tax are calculated as per rules laid down by the government.

PLS TERM DEPOSIT RECEIPTS (TDR’S)
This is a type of term deposit in which a receipt is issued for varying tenors ranging from 1 month to 5 years or more. These are in the form of receipts and profit on these receipts is paid biannually. These receipts are encashable after expiry of the period for which they were issued. Different profit rates are applied to different type of TDRs.

SPECIAL NOTICE DEPOSITS (SND):
Under this deposit scheme, a deposit is received from the depositor under the condition that he will intimate the bank before a certain period in case of withdrawals. There are two types of SNDs, they are 7 days and 30 days notice deposits. The profit is paid on these deposits but it is nearly equivalent to saving account rate.

FUNCTIONS
This was a brief review of different types of deposit schemes. The Deposit Department handles the account opening, profit payment and accounting of all types of deposit schemes.

ACCOUNT OPENING:
Account opening is an agreement in which customer offers his funds and bank accepts these funds, therefore the nature of relation between a banker and customer is of a contractual one and all the conditions applicable to this contract act are also applicable.

PROCEDURE FOR OPENING:
Procedure for opening of account is as follows:
A person, who wants to open any kind of account, has to fill in a printed form which is provided by the bank, free of cost. Separate account opening forms are used for different types of accounts.
Bank usually requires that new depositor must be introduced by some one. An introducer can be any person known to the bank but preferably it should be a customer of the bank. However, the manager can open the account by his own introduction.
If the manager is satisfied, it will obtain the full signature of the customer- on the form and specimen signature card, makes the first deposit, and issues the cheque book.
The following are given to the customers:
Pay-in-slip is the proof of deposit. For every payment which is. to be deposited in the bank, the pay-in-slip is to be filled up. The object of this book is to provide the customer with the bank's acknowledgment for receipt of money to be credited this account.
Cheque Book contains a number of cheques. It enables a customer to make withdrawal from this account or make payment of various parties by issue of cheque.
Pass Book is a copy of the customers account as appears in the books of the bank. Balance is recorded in this book by the Clerk.
NOTE:
1) In case of partnership account partnership deed should be attached.
2) In case of companies memorandum and article of association, certificate of incorporation, certificates for commencement of business, list of directors and board resolution for opening of account is also obtained from the customer.
3) Accounts of Trusts, Executors & Administrators can also be opened but with the prior approval of the Head Office.
Profit payment & calculation is done in accordance with the rules of each type of deposit scheme-by the deposit department. The products for each deposit scheme are calculated separately and added till the end of 6 month period. Then the sum total of these products is multiplied with the respective profit rates which are issued by the Head Office at the end of each half yearly closing. The profit provisions for each type of deposits are also calculated on monthly basis by the same department in order to calculate the net profit or loss position of the branch.
Accounting entries are also made in the respective books of account by this department. However, in small and medium size branches, the accountant performs the book keeping duties for all kinds of ledgers.


CLEARING DEPARTMENT

Every banker acts both as a paying as well as a collecting banker, It is however an important function of crossed cheques. A large part of this work is carried out through the bankers clearing house.
A clearing house is a place where representative of all banks of the city get together and settle the receipts and payment of cheques drawn on each other. As the collecting banker runs certain risks in receipt of their ownership the law has provided certain protections to the banks.
The Negotiable Instrument Act, 1881, lays down hat drawer or holder of a cheque or draft may cross the instrument generally or specially. It further lies down that a crossed cheque can only be paid to a banker, who collects it for a customer in good faith and without negligence.

TYPES OF CHEQUES COLLECTED
Transfer cheques: are those cheques, which are collected and paid by the same branch of bank.
Transfer delivery cheques: are those cheques, which are collected and paid by two different branches of the same bank situated in the same city.
Clearing cheques: are those cheques, which are drawn on the branches of some other bank of the same city or of the same area, which is covered by a particular clearing house.
Collection cheques: are those cheques, which are drawn on the branches of either the same bank or of another bank, but those branches, are not in the same city or they are not the members of clearing house.

FUNCTIONS OF CLEARING SDEPARTMENT:
1. To accept Transfer, Transfer delivery, clearing and collection cheques from the customers of the branch and to arrange for their collection.
2. To arrange the payment of cheques drawn on the branch and given for collection to any other branch on MCB or any other members or sub member of the local clearing house.
3. To collect amount of cheques drawn on members, sub-member of local clearing house, sent for collection by MCB Branches, not represented at the local clearing house.

COMMON PROCEDURE FOR ALL CHEQUES:
i) Receiving and scrutinizing the cheques and other deposit instruments, and the pay-in-slip at the counter.
ii) Fixing the stamps.
iii) Scrutiny and receipt by the authorized officer.
iv) Returning the counter file to the depositor.
v) Certificate and confirmation by the officer in charge of the department. ,
vi) Separating the cheque into transfer, transfer delivery, and clearing cheques.

SCRUTINY OF CHEQUES
a) The instrument should be neither stale/ nor post-dated.
b) If the instrument is crossed not negotiable it can be for the third party (an endorsee of an order cheque, or a holder of bearer cheque).
c) The Instrument should not bear any unauthorized alternation.
d) The instrument should not be mutilated.
e) The amount in words and figures should be same.
f) The instrument should be drawn on any local branch.
g) If cheque is "crossed Account Payee's" only or "Payee's Account", it should only be accepted for collection for the payee's account.
h) The cheques or drafts should not be crossed specially to any other bank.
i) A cheque payable to a firm should not be accepted for credit to a partner's account.
j) A cheque payable to one of the joint account holders should not be collected for the joint account without the payee's endorsement, or consent.
k) A cheque drawn by a customer in the capacity of agent, Attorney, or Manager of his company or firm, should not be collected for credit to his personal account.
l) Pay orders, although negotiable should not be collected for third parties.
m) Do not collect an instrument in the account of an agent or of the servant of the payee or endorsee of the instrument.
n) “Not transferable" instruments, like Telegraphic Transfer, or Mail Transfer Receipt, Pay-slips, and Treasury Receipts, should be collected for a person other payee.
o) If an account is new or the balance or operation of the account is not satisfactory, satisfy your self about the title of the customers to the instruments before accepting the deposits.
p) Branch agent's permission should be obtained before accepting a third party cheque or draft for the credit of the member.
q) If the payee is a Government Department, Government Official, or a trust account the instrument cannot be collected, but for the payee's account.
r) If the payee of an instrument is UBL, it can be collected for credit of the drawers account, or the amount of the instrument may be utilized as desired by the drawer in writing.
s) Cheque payable to a trust, account should not be collected for credit to a trustee's account.
t) All the endorsement should be regular, and no endorsement should be missing.
Note: No charges are charged by the bank for this purpose.

LEDGERS OF DEPOSIT DEPARTMENT:
The following types of ledgers are concerned with deposit departments:
1. Saving Ledgers
2. Current Ledgers
3. Profit & Loss Sharing Ledgers
4. Fix Deposit Register
5. S.N.T.D. Register
6. Call deposit register
7. Cumulative deposit certificate register
8. Cash book
9. Daily profit and loss summary book
10. Officer spaceman signature book
11. Voucher register
However, in computerized branches all these ledgers are no more there but only day books are maintained. The rest of the work is done on computers.


ADVANCES DEPARTMENT

Advances are the most important source of earning for the banks. MCB is also giving full attention towards this aspect and it is also obvious from the growing portfolio of advances and from very low delinquency rate. The credit portfolio of this institution is in a very much better shape than other financial institutions of Pakistan and the credit goes to the management and the staff who are concerned about the quantity and quality as well.
1) Loans
2) Cash Credits
3) Overdraft

1) LOANS:
Loans are monetary assistance by a financial institution to a business, individual etc. The loans are granted by the bank in lump sum, so these types called fixed or demand loans. Interest is charged on the whole amount of a fixed loan.
The borrower withdraws whole the amount of loan. This type of loan is normally granted against security of gold documents.
In case of demand loans against gold or documents, a demand promissory note for the amount of loan is taken from the borrower loans are granted under;

A) LOAN AGAINST GOLD:
Under this type of loan, which is granted to the borrower the Head Cashier estimates the value of Gold or Gold ornaments through an agent (Gold smith) and keeps a margin of 40 to 50 percent. After the opening the gold loan account a token is given to the borrower, which is a bank receipt.
On repayment of loan, the gold or ornaments held as security for it, together with the demand promissory note duly discharged is returned to the borrower and his receipt for the gold ornament taken in the demand loan ledger. This receipts states that he ornaments returned are complete and in order. Part delivery of ornaments is given against part payment of a loan but care is taken that the ornaments still in banks possession fully covers the balance of the loan outstanding. The interest gold loan is to be applied with quarterly.

B) LOAN AGAINST PLEDGED OF STOCK:
In case of advancing such types of loans, the following precautions are dept in the mind:
i) Stock pledged must be readily saleable
ii) Products should be readily saleable
iii) Advance should be within the borrows means

REQUIREMENT FOR LOAN:
For granting loan to any party or individual, the bank checks following particulars of the client:
1) Credibility
2) Feasibility Report
By Credibility, bank Judges the credibility of the client by his past bank record, CBI report etc. it is very important in making decision about giving him loan.
Feasibility report is on the running or proposed business of the client. The report enables the bank to judge the likely return of the business.

2) CASH CREDIT
Cinder such cash account is opened in the name of the customer who borrows from the bank. Customer is granted a loan up to a certain limit, sanctioned by the head office, from which he can draw when he requires and interest is charged on the amount actually utilized by the customer. In order to avoid the danger of idle fund, the bank charges a certain rate of interest, even if the customer does not withdraw any amount. The rate charged by the bank on cash credit in 46 paisa per thousand on daily basis.
The credit is usually given against the securities of goods or merchandize as follows:

1. ADVANCES AGAINST PLEDGE STOCK IN TRADE OR PRODUCTS
When a cash is granted against the pledge of stock or product, cash credit form is taken, from the certain products or stock, but the actual pledge is created when the stock or finished product are placed under the bank's lock or the document of title are duly endorsed to the bank by the borrower.

2. HYPOTHECATION OF STOCK ON FINISHED PRODUCTS:
The difference between pledge and hypothecation is that under a pledge the borrower's goods are placed in the bank's possession under own lock, whereas, under a hypothecation, they remain in the possession of the borrower or guarantor and are merely charged to the bank under documents signed by them. Even though the documents empower the bank to take possession of the goods hypothecated, but it is possible that the borrower may actually resist any attempt.

3. MORTGAGES OF PROPERTY:
Title deeds of immovable property are accepted by the bank only as collateral security or alternatively as unauthorized security.

MODES OF CREDIT FACILITIES
There are two types of facilities

A FUNDED FACILITY
1) Running finance
2) Cash finance
3) Demand finance
4) Payment against documents
5) Finance against imported merchandise
6) Finance against trust receipt
7) Export finance
8) Foreign bill purchased
9) Others

NON FUNDED FACILITY
1) Letter of credit
2) Letter of guarantees
3) Bid bonds
4) Performance bonds
5) Other facilities



REMITTANCES

DEMAND DRAFT
1) Demand draft is a written order drawn by a branch of a bank upon the branch of same or any other bank to pay certain sum of money to or to the order of specified person
2) Demand draft is a negotiable instrument.
3) Legal provisions are same as that of cheque.
4) It is to be ensured that purchaser can at least sign.
5) Thumb expression is not accepted on DD
6) The following are the parties.
a) purchaser
b) issuing branch
c) drawee branch
d) payee
A demand draft may be issued against the written request of the customer before issuing it must be seen that the demand draft is in order.

SCRUTINY OF APPLICATION
The DD application must be scrutinized by the counter clerk in respect of following points.
A There should be branch where payment is to be made.
B full name of payer should be mentioned
C amount in words and figures must be same
D application to be signed by the purchaser

TELEGRAPHIC TRANSFER
■ Transfer of funds from one branch to another branch of the same bank or upon other bank under special arrangements.
■ Telegraphic transfer is not negotiable
■ The funds are not payable to bearer
■ Minor cannot avail this facility


PARTIES
Following are the parties involved
■ Applicant
■ Drawing branch
■ Drawee branch
■ Beneficiary
Full name of the beneficiary or account number should be mentioned in the application form.
■ Instruction regarding mode of payment should be obtained.
■ A record in the remittance outward register should be maintained.
■ All the remittance must be controlled through number.

MAIL TRANSFER
■ Transfer of funds from one branch to another branch of the same bank with in or out side the city is called mail transfer.
■ Mail transfer is not negotiable
■ The procedure is same as for DD
■ All precautions must be observed


PAY ORDERS
■ Pay order is meant for bank own payment but in practice they are also issued to customers.
■ A pay order is written authorization for payment made in a receipt form issued and payable by the bank. To the person named and address.
The following are the parties
A purchaser
B issuing branch
C payee
■ Charges must be recovered at prescribed rate.
■ Pay order should be prepared like demand draft.
■ A record of all issued and paid should be maintained.
■ Credit voucher should be prepared


TECHNOLOGY DEPARTMENT

Technological advancements are also affecting the banking industry. The foreign banks have a competitive edge over all local banks in their technologies' advancements and automated systems. Local banks have also realized the gravity oil this situation and are striving to add computerized systems to their branches
MCB is ahead of all other local banks in this field and now it is in a position to even compete with foreign banks. There are more than 1045 branches of MCB all over Pakistan and out of these more than 300 branches are fully computerized Almost all .the branches of big cities are computerized; therefore, the need for a technology department at each branch is growing. Now a day, a computer division is working in each city to provide service to ad the branches of that area.
MCB has also introduced the now concept of online banking. There are now more than 250 branches linked through this system and they can transact with each other directly using computer systems at their own branches. Now customers do not have to wait long for their transactions and can operate their account through all the online branches.

ATM NETWORK:
ATM stands for Automatic Teller Machine. This machine is used to transact in one's account without intervention of humans. These machines are basically used for taking cash, confirming balances and requesting statements / cheque books.
MCB has the largest ATM network in the country at the moment with almost one ATM at each online branch and also ATM terminals at International Airports. This network covers more than the 27 cities of Pakistan including the provincial capitals and large commercial cities of the country.
ATMs are operated through a card issued to the valued customers and by application of Personal Identification Number (PIN number). A person can withdraw from any machine across Pakistan with having an account in only one branch of MCB. This was only possible with the help of online system. In this system all the machines are linked to central banking host at IRM division Karachi through either satellite or telephone controller. This system identifies the card holder and his PIN Number.
Now MCB has also entered into a contract with Cirrus which is a subsidiary of MasterCard. This contract will enable an ATM card holder to use his account even when he is out of country at all the ATMs where Cirrus logo is displayed.
Green Cards are ordinary cards with a maximum withdrawal facility of Rs. 10,000/- in a day. The annual fee for this card is Rs. 300/- only.
Gold Cards are special cars with maximum withdrawal limit of Rs. 25000/- in a day. These cards are issued to the persons having more than Rs. 500000/- as their average balance.
International Cards are issued in collaboration with Cirrus and are useable all over the world with maximum withdrawal facility according to the standards of Cirrus.

MCB WEB SITE
MCB has also initiated its own website on internet with the address.
www.mcb.com.pk











MISCELLANEOUS

PRODUCTS AND SERVICES OF MCB
Following are some products of MCB that are introduced by Musing Commercial Bank after privatization.

1) MCB RUPEE TRAVELLER CHEQUE:
MCB Rupee Travelers Cheques are as good as cash, infact better. Better because with Rupee Travelers Cheques you have the power to purchase and a feeling of security that should you lose them, you will get a refund.
MCB Rupee Travelers Cheques are accepted at major shops, travel agents, hotels, business establishments and MCB branches all over Pakistan. You don't have to be an MCB account holder to buy the Rupee Traveler Cheques. Anybody can purchase them. It's a safe and convenient way to conduct everyday business. At a time when thefts and robberies are on the increase, you are better off carrying Travelers Cheques rather than money.

2) MAHNAMA KHUSHALI SCHEME:
A 5- year fixed Deposit Scheme, targeted to persons with small savings who would desire a regular monthly return on their investment.

SALIENT FEATURE:
a) Minimum amount of investment shall be Rs.0.010m and the maximum amount of investment would be Rs. 1.000m.
b) Khushali Certificates can be purchased by individuals (singly or jointly) or by the Proprietorship/Partnership concerns or Companies, etc. in their name
c) The Khushali Certificate will be of five years maturity.
d) The interim rate of profit offered will be minimum 1% per month. If the profit declared by the bank is higher, additional profit will be paid.
e) Zakat will be deducted wherever applicable on yearly basis whether you will be receiving your profit or encashing your certificates.
f) As per Government Directions, tax on the profit / return is to be deducted by MCB branches at the time of payment.

3) MCB KHUSHALI BACHAT ACCOUNT:

FEATURES:
a) 8% rate of return per annum.
b) Returns calculated on daily.
c) Average balance and paid half yearly.
d) Introduced first time in Pakistan.
e) The facility of helping account holders pays utility bills (electricity, telephone and gas) through their account. No queues. No delays.

4) PRIME CURRENCY ACCOUNT SCHEME:
Launched to attract deposits in foreign currencies. US Dollars, Pound Sterling, Euro and Japanese Yen.

FEATURES:
a) Owing foreign currency account under the Prime Currency Scheme allows you to earn attractive rates of interest in foreign currency.
b) You have a choice between opening this account in your personal name and opening it under joint names.
c) Whether you are a resident or a non-resident Pakistan, MCB Prime Currency Scheme invites all to operate a foreign currency account.
d) Foreign nationals and foreign companies can also open a foreign currency account under the Prime Currency Scheme.
e) Your foreign currency account can be opened in four global currencies: The United States Dollar, the Pound Sterling, the Japanese Yen and the Euro.
f) Travellers Cheques and Foreign Currency Notes can also be issued to holders of persona! and Joint accounts.
g) Remittance from abroad, Travellers Cheques, Foreign Currency Notes and Foreign Exchange generated by encashing F.E.B.Cs may be deposited in these accounts.
h) Rupee Loan facility will also available against this account.
i) You can draw any amount of foreign exchange from your foreign currency account and transfer or remit the amount freely to any part of the world without any restrictions.
j) The restrictions imposed by the State of Pakistan for the opening of foreign currency accounts in case of passport; Work-permit and resident Visa have been withdrawn. Your account will be restriction free.
k) The Prime Currency Scheme is exempt from al! forms of taxes including Income Tax, Wealth Tax and Zakat deductions.
l) MCB Prime Currency Scheme is a world in itself.
MCB - committed to working for your convenience - offers the foreign currency account facility at more seventy of its branches all over Pakistan.

5) HAJJ MUBARAK SCHEME
A saving scheme, of 2/3 years duration, for the convenience of persons, with a limited income, who desire to perform Hajj was introduced.
Under the 2 years scheme, a monthly deposit of Rs.1800 is required, whereas under the 3 years scheme, the required monthly deposit is only Rs.1200.

6) CAPITAL GROWTH CERTIFICATE SCHEME:
For long term depositors under which the amount deposited almost doubles at the end of 5 years. For the scheme, the minimum amount of deposits is Rs. 10000 while there is no maximum limit. In case of premature encashment of the certificate, the depositor will profit at the same rates as that of PL Saving Account.

7) FUND MANAGEMENT SCHEME
This scheme is offered to corporate and customers and is aimed at providing better rate of return up to 15% per annum. One of the objectives of the scheme is to develop secondary market for Government Securities.

8) CONSULTANCY SERVICES:
In the process of privatization of public sector units, prospective buyers need professional assistance and MCB, with its expertise, offers to them specialized service for valuation of the market value of the industrial unit, preparing bid documents and arranging finance for the purchase of the unit.


9) SELF SUPPORTING SCHEME:
For the benefits of genuine worker/borrowers who are poor and needy and for small entrepreneur the bank as evolved a self supporting scheme: maximum amount of loan Rs.25000 and minimum Rs.5000 per individual. Loan will be totally free of mark-up.
10) FAX PRESS
This product was first of its kind introduced by using modem technology of The Fax Machine. It facilitates speedy transfer of funds within Pakistan. The service guarantees transfer of from one city to another, within an hour.

11) NIGHT BANKING SERVICE:
For the convenience of the account holder, service has, especially, been introduced at busy commercial centers. Traders and other clients can now make deposit, with case, at such centers up to 8.00PM.

12) UTILITY BILLS COLLECTION
With the aim of extending this service to wider range of customers, the number of MCB branches collecting Utility Bills more than 900.
1. MCB Mobile
2. Islamic Banking Services
13. MCB MOBILE
Banking at your fingertips. Dial in anytime to get information regarding balance and mini statements.

14. PYARA GHAR
Flexible and competitive home financing facility with options of home purchase, construction and renovation.

15. ISLAMIC BANKING SERVICES
Islamic banking services through exclusive units/branches offering a range of liability and asset based Sharia compliant products like Musharika, Murabaha, Ijara and Istasana.

16. MCB CAR CASH
Car financing and leasing at competitive rates with flexible options Carcash finances both semi-commercial and non-commercial vehicles for personal and business use.

17. MCB LOCKERS
The best protection for your valuables. Lockers of different capacities are available nationwide.

Objectives of MCB
The following are the objectives of Muslim Commercial Bank Limited.

CREATING AND MANAGING VALUES.
The first objective of Muslim Commercial Bank Limited is to create and mange the values, which is one of the back bone of the objectives of any well organized and managed organization.
HUMAN CAPITAL.
The second objective of Muslim Commercial Bank is to take care of the Human capital which is a necessary thing for the development and prosperity of any well established organization.
BEST PLACE TO WORK.
The third objective of Muslim Commercial Bank Limited is to make it a place which is much feasible and comfortable for employees of the bank. The MCB is always conscious in developing such place where employees of the bank feel easiness.
TECHNOLOGY.
The forth objective of Muslim Commercial Bank Limited is to bring new and latest technology in the operations of the bank. At MCB, technology has a direct relation with your needs; it is a means for creating value and convenience for the customer. Over the last few years MCB has invested heavily into strengthening its technology backbone. Today it is leading the way in banking technology and setting new standards for the banking industry; penetrating into the local market, listening to the needs of the people and educating them of simple financial products and services that create both value and convenience. MCB’s strength lies in providing a technological base at the grass roots level of the society with a challenge to educate and assimilate such systems across vast cultural and economic backgrounds. With over 768 automated branches, 243 online branches, over 151 MCB ATMs in 27 cities nationwide and a network of over 16 banks on the MNET ATM switch, MCB continuously innovates new products and services that harness technology for the customer’s benefit.
UNDERSTANDING & RELATIONSHIP.
The fifth and very important objective of Muslim Commercial Bank Limited is to create such an environment which is suitable for creating understanding and relationship between the employees, thus going towards the way of development and prosperity. Over the years, MCB has fostered strong bonds with its customers. Understands them; their needs. They feel comfortable with MCB; it’s their bank; it responds to them; listens to them; partners with them; grows with them. At MCB, banking is all about being there for people, making a home in their hearts-continuously building relationships on mutual trust and confidence. We understand that relationships are about expectations-our products and services are based on your customers, expectations. Be it financing for personal or business related needs, funds transfer and trade related facilities or need for different types of deposit accounts, MCB offers you a variety of products and services customized to satisfy your individual needs.
UNDERSTANDING CONVENIENCE.
The next objective of Muslim Commercial Bank Limited is to make understanding a convenient thing for the whole environment of the bank, for the purpose of boosting up its values and prosperity in such a competitive environment. Convenience is what the customer is looking for; and this is what we at MCB are continuously striving to provide. Whether it is the 24 hours cash convenience of our ATM network or the easy availability of financing requirements or simple opening of account, MCB has tailored its products and services to make your life easier. MCB knows the particular needs of its diverse customer base d continuously develop products and services that fulfill these needs.
UNDERSTANDING RELIABILITY.
The last but not least objective of Muslim Commercial Bank Limited is to make an environment which have an understanding of reliability in the whole structure of the bank. With a strong financial base, a promising team and the right resources, MCB has proved to be a reliable partner indeed. MCB understands the special needs of the business, trading and agricultural sectors. Strategically located branches in small towns and cities provide warm services and advice to the small businessmen and local traders. MCB speaks their language; it understands their needs and provides tangible results. By responding in a timely manner with a flexible approach, MCB provides its clients with the reliable financial service and support they require to successfully achieve their business objectives. With a solid foundation of over 50 years in Pakistan and having recently completed 10 successful years of privatization, MCB is strongly positioned to lead the banking sector in the new millennium. You can feel safe in our hands.


BRANCH NETWORK
The following is the Branch Network of Muslim Commercial Bank Limited.
Sector wise position of circle,
As on 30-12-2002
Consumer Sector 810 Branches.



Commercial Sector 210 Branches



Corporate Sector 20 Branches


Overseas Branches 4
EPZ Branch 1
Total Branches 1045

INFORMATION ABOUT MY BRANCH

I did my internship in Muslim Commercial Bank Limited Grain Market Branch, Renala Khurd.And some important informations about my branch which I observed are as follows:

MANAGEMENT OF THE BRANCH

BRANCH MANAGER GHULAM MUJTABA
ACCOUNTANT MUHAMMAD SADIQUE
GRADE ONE OFFICER MALIK TUFAIL
CASHIER WAHEED AHMED
HEAD CLERCK M. SHAFIQUE
JUNIOR CLERCK M. ASIF
PEON JAMEEL
SECRITY GUARD M. ASLAM
SWEEPER IFTIKHAR AHMED
TRAINEE ABDUL SATTAR AMIR

OTHER GENERAL INFORMATION

DEPOSITS:
The total deposits of this about to 207.10 million.

NUMBER OF ACCOUNTS:
Accounts in this branch of MCB are as follows:

CURRENT ACCOUNT:
Total numbers of current accounts are 1049.

PLS ACCOUNT:
Total numbers of profit and loss accounts are 2120.

KHUSHALI BACHAT ACCOUNT:
These are about to 600 accounts.

REMITTANCE:
Total remittance of this branch is 26.22 million.

NO. OF VOUCHERS:
The vouchers which are transacted in this branch are as follows:
TYPES DEBIT CREDIT
Transfer 961 901
Clearing 591 810
Cash 1754 1389
Rate of interest 4.45%
Maximum 9%

That gives to this year.

RATE OF INTEREST:
The rate of interest provided by such bank is minimum 4.45% and maximum 9%.

FINANCING:
Mainly, the short term financing schemes are being dealt here.

CAPITAL:
Capital of branch is treated in its Head Office.

REVENUES:
The total revenues of this branch are near to 11.25 million.


WORK DONE BY ME

In the Muslim Commercial Bank Ltd. I really enjoyed working with the staff of Ghalla Mandi Branch Renala Khurd and having a wish to be employee of MCB. It was almost impossible to work in all the departments within that limited time. But on my request, the staff of the branch provided me the opportunity to work in the different departments for the sake of practical knowledge. I feel highly indebted to work in the Renal Khurd Branch on the request of the manager of that branch Ch. Abdul Sattar, because I learnt a lot in that branch.
During my internship training in the MCB as I early mentioned that I have worked in different departments & seats and learnt the followings.

UTILITY BILLS COLLECTION

Muslim Commercial Bank Ltd. collects utility bills on behalf of WAPDA, Sui Gas Companies, and Pakistan Telecommunication Corporation Limited by putting the stamp on the utility bills “Paid”, Date of payment, Signature of the officer receiving the utility bills. After receiving utility bills a list is made on the form which is called Bills scroll form. One copy of the scroll is with the bank for evidence whereas the original copy with the receipt of the bills is sent to the billing department of the respective corporation. The bank charge commission on the bills.

OPENING NEW ACCOUNT BASICS

During the span of mine internship in MCB I learned and observed a lot of about the opening of an account. Basically I think that the opening of an account is the establishment of a contractual relationship between the banker and the customer. By opening an account at a bank a person becomes a ‘customer’ of a bank. Further I am going to express the basic requirements and steps involved in the opening of an account.

INVESTIGATION

Before opening an account MCB as like the other banks in Pakistan ascertain whether or not the person who is going to open the account is a desirable customer or not. Then MCB determine the prospective customer’s integrity, respectability, occupation and the nature of business by the introductory references given at the time of account opening. Negligence in this informal preliminary investigation may result in serious consequences not only for the banker concerned directly but also for other bankers and the general public who may be affected indirectly. In Ladbroke & Co. V Todd (1914), the banker did not obtain introduction at the time of opening the account, and it was construed a negligence within Section 82 of the Bills of Exchange Act 1882.
In order to further strengthen and streamline this process, the Federal Ombudsman of Pakistan, vide his ruling on complaint No. II/31/5186, has directed the banks to retain with the account opening form a Photostat copy each of the National Identity Cards of the person desiring to open an account as well as that of the introducer. As per these directions, the concerned Branch Managers are required to obtain the original National Identity Cards along with their Photostat copies and then return the original after attesting the authenticity of the retained copy.

HOW TO OPEN AN ACCOUNT (IN GENERAL)
Before opening an account in MCB I observed that the following points must be considered in this regard.
1. Another account holder of the bank should properly introduce the new customer.
2. The account holder should sign the account opening form in the presence of bank officer and the signature is duly verified.
3. A copy of identity Card is required by Bank.
4. Against submission of the Bank’s prescribed application form, duly introduced in the manner provided and on supplying such document, as may be required and account may be opened. The Bank reserves to itself the right to refuse to open and account without assigning any reason.
5. Each account shall be allotted a distinct number that is to be quoted in all correspondence with the bank relation to the account.
6. Minimum amount to open an account is required regarding the nature of account.

PROCEDURE TO OPEN AN ACCOUNT
According to my practice in MCB, when a customer wants to open an account, the bank officer gives him an application form. All information, which is necessary to be known by the bank, are requirements of the application form. Form also requires the essential documents to be attached by the customer.
Basically following information is required to open an account with MCB
1. Title of Account
2. Full Name of Applicant
3. Occupation
4. Address
5. Telephone No.
6. Currency of account
7. Nature of Business
8. Introducer’s Name, Address & Signatures
9. Special instruction regarding the account
10. Initial Amount of the Deposit
11. Signature of the applicant

PROCEDURE TO HONOUR A CHEQUE

During my internship training in the Muslim Commercial Bank Limited, I observed and found Cheques are received for the following purposes.

i) For Cash payments
ii) For transfer(from one account to another account)
iii) For Clearing

I) FOR CASH PAYMENTS

Cheques which are presented on Bank counter must be checked in the following way:
1) Date.
2) Signature of Drawer.
3) Signature of Payee.
4) Whether Bearer has cancelled.
5) Whether Payee account duly is there.
If condition 4&5 exist then check the signatures of Drawer.
6) Match the figure and wordily amount of cheque.

When all above matters are satisfied then come to the Token register and check:
1) Token number.
2) Cheque number.
3) Amount of cheque.
4) Particulars.

Two stamps are put on cheque.
a) Cash Payment (on the face of cheque).
b) Stamp for Token (on the back of cheque).

On stamp which is put for token their details are as follows:
• Token number.
• Time of giving token to client.
• Signature of token giver.

Note:
Payment is also made when cheques of same branch account is presented for transfer to other account in same ranch along with cheque for payment.

II) CHEQUE FOR TRANSFER:
When cheques are presented to be sent for collection and drawn on bank situated within the city then there are three stamps to be put on face as well as on back of cheque.

a) Crossing Stamp (face).
b) Transfer Stamp (face).
c) Bank Manager Stamp (back).
Only in MCB branches.

CHEQUES FOR CLEARING:

There are two stamps put on each cheque, sent for clearing:
a) Crossing Stamp.
b) Manager Stamp.

CHEQUES IN COLLECTION:
When cheques received in clearing are intra city then these are controlled under CC.
First of all, these cheques are recorded in day book then allotted number and then serial number. Then a performa is prepared in which Bank on whom was drawn, cheque number, amount, beneficiary name are recorded. After completing that performa cheque is posted along with performa.

CLEARING

Following information is entered in clearing register.
a) Name of favoring party.
b) Name of bank on whom drawn.
c) Branch.
d) Cheque number.
e) Amount.
Clearing is sent after entering in register. In clearing register future date and day is putted. Cheques and vouchers are then separated and Cheques are sent for clearing.
Clearing credit vouchers are entered on clearing sheet. Such credits are balanced by giving debits to cheques received in clearing from other branches. At the beginning of the day clearing return sheet is received. Vouchers are made if
1. Clearing received is more than clearing delivered then Credit voucher.
2. Clearing delivered is more than clearing received then Credit voucher.
On the same day, credit vouchers sent for clearing are entered on the sheet's credit side.
Cheques are sent to NIFT after taking them on calculator, their total amount along with total number of instruments. A summary is prepared and sealed after noting the number of seal in summary.
Telephonic Transfer
DD- Demand Draft
PO- Payment Order
For TT, the account of beneficiary must be there in branch. DD is also prepared and beneficiary can get payment.
First of all, Performa is filled by purchasing party along with cheque or cash payment. When cheque is received it is first posted in computer section in order to check the balance of account. After posting the bank officer calculate tax if National Tax number is not there. i.e.
Rs.100000 @0, 1%
More than Rs.40000 @0.4%
Commission and postage charges are also calculated. These are paid in cash or otherwise by cheque.

ISSUANCE OF CHEQUE BOOK
During my period of internship in MCB i observed that when a account is opened then a cheque is issued to thecustomer for drawing his money at per rules. Following procedure is adopting for the issuance of cheque.
When a customer opens an account with the bank, he is provided with cheque book for withdrawals from account. However, the first cheque book is given to the customer only when all the required documents are checked. A cheque book contains ten, twenty five, fifty or hundred leaves. The cheque book also carries a requisition slip for the issuance of the new cheque book. This slip is duly filled and singed by the customer. The signature of the customer is verified by the bank and new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the book of the bank. Along with the signature, person should also write his full name & address.
Usually only one cheque book is issued at a time, however big concerns who need a number of cheque books at a time, may ask the bank to stock as number of cheque books in their name and to point their name on these cheque books.
Bank debits the client’s account for excise duty of Rs.2.50/- per cheque and keeps the cheque book ready for the customer, as on his advice.
The officer keeps and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. The account number for which the cheque book is issued and the number of leaves are also recorded in this register when the cheque book issued an entry is passed in the cheque book issue register.

RUPEE TRAVELLER CHEQUES: RTCS
When RTCs are to be issued payment is received in cash or by cheque, tax @0.03% is charged id National Tax number is nor available. RTCs are issued in consecutive number of face value of
v Rs.1000
v Rs.5000
v Rs.10000
v Rs.50000
v Rs.100000
Specimen signatures of buyer are taken and clearing slip is in four pages. One is sent to Head office, one to RTC division, one for bank record and one for client.
If client wants immediate payment of RTCs then he will bring RTCs with two signatures, one copy of deal and ID card copy. Payment is made. RTCs can be endorsed to other party. Once receiving party will pay the RTCs along with credit vouchers in their relevant account with Bank. Payment will be credited to account of paying party.


FINANCIAL ANALYSIS





BALANCE SHEET (ASSETS)
AS ON 31ST DECEMBER 2000-01-02

Rupees (000)
Item 2000 2001 2002
Cash and balance 12571424 212559900 17867991
Balance with other bank 4757413 3025689 2154190
More at call and short notice 6064332 15470519 33874620
Investment 36480913 55432235 89609821
Advance 86312721 46584120 78923737
Fixed assets 3482950 3659646 3825045
Other assets 13862305 11400906 8883163
Total 174715063 187053515 235138567











MUSLIM COMMERCIAL BANK LIMITED
BALANCE SHEET (LIABILTY)
AS ON 31ST DECEMBER 2000-01-02

Rupees (000)
Item 2000 2001 2002
Deposit & other account 135990147 154544451 182705716
Borrowing from bank 5856198 8946624 21987824
Bills payable 7803443 8097178 6261957
Others 8438055 8578240 9045634
Share capital 2202855 2423140 2665455
Preserve 12277630 2278980 3026517
Un-appropriated profit 3185 283940 621985
Surplus on revelation of fixed assets 1188122 1900962 5384934
174715063 187053515 235138567











MUSLIM COMMERCIAL BANK LIMITED
BALANCE SHEET (ASSETS)
HORIZONTAL ANALYSIS
AS ON 31ST DECEMBER 2000-01-02

Rupees (000)
Item Increase (Decrease Increase (Decrease)
Amount %age Amount %age
Cash 8688476 69.11 (339109) (15.95)
Balance with other bank (1731724) (36%) (871499) (28.80)
Money at call and short notice 4618425 42.55 18404101 118.96
Investment 12321288 28.58 341775896 61.65
Advance (9773140) (113.31) 2339617 3.05
Operating fixed assets 55290 1.53 165399 4.51
Other assets (1803004) (13.65) (2517743) 22.8










MUSLIM COMMERCIAL BANK LIMITED
BALANCE SHEET (LIABILITIES)
HORIZONTAL ANALYSIS
AS ON 31ST DECEMBER 2000-01-02

Rupees (000)
Item Increase (Decrease)
2000-2001 Increase (Decrease)
2001-2002
Amount %age Amount %age
Deposits and other account 18554304 13.64 28161265 1822
Borrowings (7944051) 47.03 13041200 145.76
Bills payable 293735 3.76 (1835221) 22.66
Other liabilities 142064 1.68 467394 5.44
Share capital 220285 9.99 242315 10
Reserve fund & other reserves 1350 0.5 747537 32.81
Un-appropriated profit 2800775 8814.9 338045 119.05
Surplus on revaluation of fixed assets 791889 71.40 3483972 183.27












MUSLIM COMMERCIAL BANK LIMITED
BALANCE SHEET (ASSETS)
VERTICAL ANALYSIS
AS ON 31ST DECEMBER 2000-01-02

Rupees (000)
Items 2000 2001 2002
Cash 7.21% 1137% 7.60%
Balance with other bank 2.73 1.61 0.92
Money at call and short notice 6.22 7.75 14.41
Investment 24.71 29.67 38.11
Advance 49.50 41 33.56
Operating fixed assets 2.07 1.95 1.62
Other assets 7.57 6.10 3.78
Total 100% 100% 100%











MUSLIM COMMERCIAL BANK LIMITED
BALANCE SHEET (LIABILITIES)
VERTICAL ANALYSIS
AS ON 31ST DECEMBER 2000-01-02

Rupees (000)
Items 2000 2001 2002
Deposits and other account 77.84% 82.62% 78.85%
Borrowings 9.67 4.78 9.49
Bills payable 4.47 4.32 2.70
Other liabilities 4.83 4.59 3.90
Share capital 1.26 1.30 1.15
Reserve fund & other reserves 1.30 1.22 1.30
Un-appropriated profit .0018 .15 .27
Surplus on revaluation of fixed assets .63 1.02 2.32
Total 100% 100% 100%













MUSLIM COMMERCIAL BANK LIMITED
PROFIT AND LOSS ACCOUNTS (INCOME)
FOR THE PERIOD ENDED DECEMBER 2000-01-02

Rupees (000)
Items 2000 2001 2002
Interest / return earned 1424242 17033225 15385869
Fees, commission 909045 868637 907071
Income from dealing foreign currency 609838 687854 503593
Dividend income 158909 243994 297748
Other income 1085614 400140 881746
Total 16887648 19233850 17976027













MUSLIM COMMERCIAL BANK LIMITED
PROFIT AND LOSS ACCOUNTS (EXPENSES)
FOR THE PERIOD ENDED DECEMBER 2000-01-02

Rupees (000)
Items 2000 2001 2002
Cost / return on deposit 7238680 7544897 6074682
Administrative expense 7128658 7331623 8077395
Provision for diminution the value of investment 46048 62064 -
Provision against non-performing advance 601799 1704944 -
Other provisions 30000 40000 -
Bad debts 483943 448999 721105
Other charges 36725 147 1313
Profit before tax 1321795 2101176 3101020
Taxation 587066 993000 1362426
Total 17474714 20226850 19337941












MUSLIM COMMERCIAL BANK LIMITED
PROFIT AND LOSS ACCOUNTS (INCOME)
HORIZONTAL ANALYSIS
FOR THE PERIOD ENDED DECEMBER 2000-01-02

Rupees (000)
Item Increase (Decrease) 2000-2001 Increase (Decrease)
2001-2002
Amount %age Amount %age
Interest / return earned 2908983 20.60 (1647356) (9.67)
Fees, commission etc. (40408) (4.44) 38434 44.42
Income from dealing foreign 78016 12.79 (184261) (26.78)
Dividend income 85085 53.54 53754 22
Other income (685204) (63.11) 481606 120.35












MUSLIM COMMERCIAL BANK LIMITED
PROFIT AND LOSS ACCOUNTS (EXPENSES)
HORIZONTAL ANALYSIS
FOR THE PERIOD ENDED DECEMBER 2000-01-02

Rupees (000)
Item Increase (Decrease) 2000-2001 Increase (Decrease)
2001-2002
Amount %age Amount %age
Cost/return on deposit 306217 4.23 (1470215) 19.48
Administrative expense 202965 2.84 745772 10.17
Provision for diminution 160126 34.78 (62064) (100)
Provision against non-performing advances 1103145 183.30 (1704308) (100)
Other provisions 1000 33 (4000) (100)
Bad debts (34944) 7.22 272106 606
Profit before tax 779381 58.96 999844 47.58
Tax 405934 69.14 369426 37.20












MUSLIM COMMERCIAL BANK LIMITED
PROFIT AND LOSS ACCOUNTS (INCOME)
VERTICAL ANALYSIS
AS AT DECEMBER 2000-01-02

Items 2000 2001 2002
Interest earned 83.6% 88.56% 85.60%
Fees, commission etc. 5.38 4.52 5.04
Income for dealing foreign currency A/C 3.61 3.58 5.04
Dividend income 0.94 1.27 1.66
Other income 6.43 2.08 4.91
Total 100% 100% 100%











MUSLIM COMMERCIAL BANK LIMITED
PROFIT AND LOSS ACCOUNTS (EXPENSES)
VERTICAL ANALYSIS
AS AT DECEMBER 2000-01-02


Items 2000 2001 2002
%age %age %age
Cost / return on deposit 41.42 37.30 31.41
Administrative expense 41 36.25 41.76
Provision for diminution the value of investment 0.26 0.306 00
Provision against non-performing advance 3.44 8.42 00
Other provisions 0.17 0.20 00
Bad debts 2.76 2.25 3.72
Other charges 0.21 00 .006
Profit before tax 4.56 10.39 16.35
Taxation 3.35 4.90 7.05
Total 100% 100% 100%








PERFORMANCE 1993-2002

The following figures will give an idea of the progress made after privatization.
(Rs. In million)
1993 2002
Authorized share capital 2000 3500
Paid-up share capital 663 2665
Reserve funds & other reserves 12010 3027
Total assets (excl. contra) 75427 235139
Deposits 62783 182706
Advances 30753 78924
Investments 27864 89610
Imports 32734 48842
Exports 16931 28284
Home remittance 3023 32962
Pre-tax profit 346 3103
No. of branches 1290 1045
No. of employees 13768 10926
No. of accounts 3411427 4463530




BALANCE SHEET (ASSETS)
HORIZONTAL ANALYSIS
COMMENTS

■ Cash is increased in 2001 but decrease in 2002; it shows that the liquidity position of the bank is going to be weak, so it is alarming sign for the bank. Therefore bank should take necessary steps according to the position.
■ There is decreasing trend in balance with other banks which is a negative sign.
■ Increase in money at call and short notice, it means that customers of bank are very punctual in making payments. Therefore it is good sign for the bank.
■ In the field of investment there is increasing trend with the passage of time. It is common term of finance” more investment more return.
■ As we know that main source of profit of a bank is the difference between the percentages of interest, Banks pay less rate of interest than receiving the interest from the customers. In this case advance to customers very low in 2001 but increase in 2002. It means that MCB is running very well.
■ MCB is in a position that it is earning more and more profit with passage of time. Then bank can purchase more and more fixed assets, and it is bank is doing. Assets of the banks are increasing day by day by purchasing the assets. More assets mean that bank has more capacity to pay off its liabilities. There is increasing trend in field of fixed assets. It is due to purchase of new assets.
■ Other assets have a decreasing trend which is not a positive sign. Decrease in assets decrease the worth of organization


LIABILITIES

■ There is increasing trend in deposits and other accounts which shows the credibility of the bank.
■ Borrowing is decreasing in 2001 but there is increasing trend in the year 2002. Although it is seeing that bank’s borrowing is increasing with the passage of time which is not a good sign but there is a positive thing in this behalf, usually banks borrow money at that time when they would have to give it for earning more profit, I think the Muslim Commercial Bank doing the same thing for increasing its profits.
■ Bills payable increase in 2001 but decrease in 2002 positive sign.
■ Other liability has an increasing trend not good because increase in liability decreases the liquidity position of the bank.
■ Share capital increase that shows the creditability of bank.
■ The Muslim Commercial Bank Limited is increasing its reserves and Un-appropriated profit in order to increase its lending power, which is good sign, because according to the prudential regulations of State Bank of Pakistan, a bank can lend money (per party exposure) equal to the 30% of its assigned capital plus reserves.


MUSLIM COMMERCIAL BANK LIMITED
PROFIT AND LOSS A/C
HORIZONTAL ANALYSIS
INCOME
■ Interest income decrease in 2002 will great proposition which is not favorable. It means that interest received by the bank is decreasing with the passage of time. It is not good for a banking company.
■ As we all know that banks provide many services for their customers and also act as a agent of the customer. The banks receive fee and commission after their services; it is a main source of bank to receive fee and commission from their customers. In case bank is taking more fees as compared to previous years. This is good for the bank.
■ In foreign currency dealing and dividend there is huge increasing trend which shows the investment of bank in healthy organization.
■ Other income decrease in 2001 but this increase mean positive situation.

EXPENSE
■ Return on deposit decreases which shows good sign and it is due to decrease in return rate.
■ Adm and diminution and provision against non performing loan decreasing turned that is favorable.
■ Bad debts increased with huge amount not positive sign.
■ Profit before taxation has increased with greater proportion.
■ Tax increases which are not bad because it is interrelated with profit, if profit increased, tax also increase.


VERTICAL ANALYSIS
INCOME
■ Interest earned decrease which is negative sign.
■ As we know that banks provide many facilities other than money lending and borrowing. Banks receive fee, commission etc. for these services. Therefore fee and commission income are increasing which is good and favorable signs.
■ Divided income increased but it is very small.
■ Other income increase with great proportion good sign.

EXPENSES
■ Return on deposit decrease good sign because it increases the profit.
■ Administration expenses are increased but no alarming rate.
■ Position against non performing loan us zero which show bank have good customer.
■ All provision is zero which sows the good credit policy.
■ Bad debt and other charges increased but the situation is not alarming.
■ Profit increased.
■ Tax is increased but it is interrelated with profit.




















OVERALL REVIEW

The Bank has now completed more than 12 years, since its privatization and it is, indeed, gratifying to note that during this period, MCB has performed well and has sustained its growth in all the major sectors. The well deserved credit, for this good performance and progress, must surely go to the Bank’s management, its Directors and, in no small measure, to the entire MCB team for its dedication, concerted efforts and excellent team spirit.
MCB has been a pioneer among the banks in Pakistan, particularly in introducing a number of innovative banking products and services. For the first time in the history of Pakistan, these multifarious products mostly in the shape of saving schemes have been introduced by MCB with brand names. This has set the trend and many other banks, both local and foreign, have since followed in MCB’s footsteps, by launching new products and services, on similar lines.



RATIOS ANALYSIS

Ratio analysis is an important and age-old technique of financial analysis. Ratios are important and helpful in the reference that:
¶ These simplify the comprehension of financial statement and tell the whole story of changes in the financial conditions of the business.
¶ These provide data for inter-firm comparison. The ratios highlight the factors associated with successful and unsuccessful firms, also reveal strong and weak firms.
¶ These help in planning and forecasting these can assist management in its basic functions of forecasting, planning, coordination and control.
¶ These help in investment decision in case of investor and lending decision in case of Bankers etc.
However, the ratios are only indicators, they cannot be taken as final regarding good or bad financial position of the business other things have also to be seen.

RATIO ANALYSIS

1. RETURN ON EQUITY
Rs. (000)
2000 2001 2002




13.14% 16.09% 14.86%


2. RETURN ON ASSETS
Rs. (000)
2000 2001 2002




0.42% 0.59% 0.73%






3. EARNING PER SHARE
Rs. (000)
2000 2001 2002




3.33 4.57 6.52


4. RETURN ON DEPOSIT
Rs. (000)
2000 2001 2002




0.54% 0.71% 0.95%

5. CASH / DEPOSIT RATIO
Rs. (000)
2000 2001 2002




2.56% 2.25% 2.33%

6. TOTAL ASSETS / NETWORK
Rs. (000)
2000 2001 2002




31.23 times 27.16 times 20.09times

7. RETURN ON DEPOSIT
Rs. (000)
2000 2001 2002



24 times 22 times 15 times

8. INTEREST EXPENSES / TOTAL EXPENSES RATIO
Rs. (000)
2000 2001 2002




41% 37.30% 31%


9. INTEREST INCOME / TOTAL INCOME RATIO
Rs. (000)
2000 2001 2002




83% 88% 85%

10. NET PROFIT MARGIN
Rs. (000)
2000 2001 2002




4.35% 5.76% 9.67%

11. AVERAGE PROFIT PER BRANCH
Rs. (000)
2000 2001 2002




Rs. 607214 Rs. 1044463 Rs. 1663726


1. RETURN ON EQUITY
This ratio is more meaningful for share holders who are interested to know the profit earned by the company because the dividend paid from available profit higher ratio means factor of production fully utilized and good position. Here ratio is increased in 2001 but again decrease in 2002. And I think that the Bank improved its return on equity ratio in the year 2001. But it again fall down in the year 2002, which is an alarming sign for the Bank.

2. RETURN ON ASSETS
This ratio has an increasing trend. It means the assets of the business are fully utilized in more and efficient way and also shows the favorable trend of the business. This ratio of the bank was too low in the year 2000, but it improved in the year 2001, and it was much good in the year 2002.

3. EARNING PER SHARE
This ratio got really improved as it has gone with the increase in profit. Earning per share is a good measure of profitability when compared with similar other business. Here increasing EPS, which will surely increase share price. This ratio has the same trend as the return on the assets. And is improving in the every succeeding year.

4. RETURN ON DEPOSIT
Return on deposit is increasing trend which is favorable. This ratio shows with the increase of deposit the profit margin also increases. Increase in return on deposit is positive sign. This ratio has the same trend as the above mentioned ratio of return on equity has which is a good sign for the Bank.

5. CASH / DEPOSIT RATIO
Cash deposits ratio means liquidity position of the bank. This ratio is very low means that Bank has no idle fund but even low ratio bank has not liquidity problems. Bank meets all its financial problems. This shows the strategic policy of the bank and efficiency of the bank.

6. TOTAL ASSETS / NET WORTH
This ratio shows the decreasing trend. But it is not had position because net worth of the bank increasing day by day. Increase in net worth shows that bank is on sound footing. And I think that this will provide benefit to the bank in the long run.


7. TOTAL DEPOSIT / NET WORTH
This ratio has also decreasing trend but decreasing is due to increase in net worth. And it will provide benefit to the Bank in the long run and in the coming years.

8. SOLVENCY RATIO
This ratio shows that the assets of the bank have increased more as compared to its liability which is good effect on the solvency of the bank. Solvency means the ability to meet its obligation: with the passage of time it is increasing which is good sign.

9. INTEREST EXPENSE / TOTAL EXPENSE RATIO
A decrease figure shows that deposits are getting low. The reason is the decrease in the return on deposit. When decrease return then people prefer to invest in business for more earning. This decrease in the interest expenses is due to the decrease in the borrowings of the bank. or it might be due to decrease in the payable interest rate to the lenders.

10. INTEREST INCOME / TOTAL INCOME RATIO
A little decrease figure rather than stagnant figure showing same amount of income generation. Although the rate of markup come down but it has no bad effect on the earnings of the bank. This ratio shows that interest income as compared to the total income of the bank is decreasing. But it does not mean that it is a bad effect. Because it might be due to increase in the other Income of the bank which is too a Good affect for the bank.

11. NET PROFIT MARGIN
This is being improved yearly. Although bank is earning huge income but its expenses increased quite a bit simultaneously. Ultimately result is increase in the net profit of the bank. And it means that bank has an improving trend from the point of view of the income and will be improving in the coming years.

12. AVERAGE PROFIT PER BRANCH
The average profit per branch is increasing rapidly every year. It is healthy good and encouraging for bank. This ratio of the bank shows that it profit of the branches is increasing in the coming years. if it was one time in the year 2000, then it was two time in the year 2001 and three times in the year 2002.


RECOMMENDATION

From the Quantum of the profit and its financial data it can be easily judged that after privatization, MUSLIM COMMERCIAL BANK is performing well. Its deposits are growing day by day and so its profitability. The controlling body is responsible for the productive performance of the Bank.
Following are my observation and suggestion to improve the efficiency for the development of the economy.
A big portion of the home remittance is sent by Pakistan working capital through Muslim Commercial Bank Limited. As we know a big portion of this amount is wasted purchasing of luxuries. The people motivated to save money by offering the deposit through various investment schemes. The rate of profit should increase 1% or 2% than other banks and it would be profitable step for bank.
There is a criticism on the banking management that the salaries of the employees are decreasing in every succeeding year. And I think this will shake the confidence and working habit of the employees.
There is another recommendation about the bank that there is no proper timing of the bank and there is made an unnecessary delay in the banking transactions, which might not be a good sign for the bank from future prosperity point of view.
Staff turnover particularly of trained staff result in financial and other losses. The amount spent by the bank on employment, induction and training of outgoing officers constitutes to beat till another officer should ready prove this work. The exodus of bank officer in the past has worsened the situation.
Most of the bank employees, are sticking to one seat only with the result that they become master of one particular job and loose their grip on other banking operation. In my opinion all the employees should have regular job experience all out-look towards banking. The promotion policy should be adjusted.
Refresher Courses for the staff are most important in any international organization. Alt the employees should have these courses according to their requirement. Foreign experts can also be called for this purpose.
Every year some of the employees should be sent for training to other countries and employees from other branches should be brought here. Some more reading material should be provided. The purpose should be to educate the employees with the advance studies in their field. The employee should be provided the opportunities to attend and participate in seminars and lectures on banking.
Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank.
As such system should be designed that every employee who has some problems with his officers can communicate it to the higher management and some steps must be taken to improve that.
Recruitments should be strictly on merit basis and induction should be after proper and extensive training.
Old and lazy staff should be replaced by young, qualified and energetic staff.
Foreign branches should be opened in order to capture the international market and to earn international repute for the bank.
Working environment, equipment, furniture and staff dressing should be according to the modern banking style.
Proper attention should be paid to upgrade customer services.
Bank should adopt the global organizational banking structure to meet the international standards of banking sector.



















CONCLUSION

It is evident from this report and the financial statements of MCB that it is making progress by leaps and bounds. The profits of MCB have grown considerably during the last few years and this trend is expected to continue into the future. Therefore, we conclude that MCB has a very prosperous present and future, which assures the shareholders of wealth maximization. Side by side of it I think that if bank would be able to cover and control on the above mentioned recommendations then it would be in such a situation that will really lead it towards the road of prosperity, development and integrity. And with the above mentioned sentences I think there is too fault of the customers and in order to make the proper working of the bank the customers should also cooperate with the bank which will be really a good, ambitious and diligent condition for the bank. And then bank will be really in such a situation and position to compete its competitors in the country as well as on international level.