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MCB Internship Report 2008

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Muslim Commercial Bank (MCB) unfolds 62 years of growth. MCB is not an overnight success

story. MCB Ltd formerly known as Muslim Commercial Bank Limited was incorporated by the

Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited

company. The bank was established with a view to provide banking facilities to the business

community of the South Asia. The bank started corporate life in Calcutta on July 9, 1947. After

the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka from where it commenced

business in August 1948. In 1956, the Bank transferred its registered office to Karachi, where

the Head Office is presently located. Thus, the bank inherits a 62-years legacy of trust in its

customers and the citizens of Pakistan.

The bank was nationalized in 1974 during the government of Zulfikar Ali Bhutto. This was the

first bank to privatize in 1991 and the bank was purchased by a consortium of distinguished

Pakistani corporate groups led by Nishat Group. As of June 2008, the Nishat Group owns a

majority stake in the bank. Founded in 1948, Nishat Group is one of the leading and most

diversified business groups in Pakistan. The group has strong presence in the most important

business sectors of the country such as banking, textile, cement and insurance.

Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played

instrumental role in its success. In recognition of Mr. Manshas contribution, the Government of

Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the

country.

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 managementprocesses.

MCB is Pakistans fourth largest bank by assets having an asset base of PKR 445 billion at 2008

on a consolidated basis and the largest bank by market capitalization. The Bank has a nationwide


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distribution network of over 1,050 branches. In 2008, MCB reported an after tax profit of PKR

15.3 billion on a consolidated basis.

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 ourshareholders can invest with confidence in us.

MCB VALUES

Integrity

We are the trustees of public funds and serve our community with integrity. We believe in being

the best at always doing the right thing. We deliver on our responsibilities and commitments to

our customers as well as our colleagues.

Respect

We respect our customers values, beliefs, culture and history. We value the equality of gender

and diversity of experience and education that our employees bring with them. We create an

environment where each individual is enabled to succeed.

Excellence

We take personal responsibility for our role as leaders in the pursuit of excellence. We are a

performance driven, result oriented organization where merit is the only criterion for reward.


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Customer Centricity

Our customers are at the heart of everything we do. We thrive on the challenge of understanding

their needs and aspirations, both realized and unrealized. We make every effort to exceed

customer expectations through superior services and solutions.

Innovation

We encourage and reward people who challenge the status quo and think beyond the boundaries

of the conventional. Our teams work together for the smooth and efficient implementation of

ideas and initiatives.


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Audit Committee

Mr. Tariq Rafi Chairman

Dr. Muhammad Yaqub Member

Dato' Mohammed Hussein Member

Mr. Aftab Ahmad Khan Member

Mr. Muhammad Ali Zeb Member

Mr. Malik Abdul Waheed Member

Human Resources CommitteeMian Mohammad Mansha Chairman


Mian Raza Mansha Member

Mr. Shahzad Saleemn Member

Mr. Atif Bajwa Member


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Risk Management & Portfolio Review Committee

Mr. Shahzad Saleem Chairman

Mr. Tariq Rafi Member

Mr. Sarmad Amin Member


Mian Umer Mansha Member

Committee on Physical Planning, IT System &

Contingency Arrangements

Mr. Sarmad Amin Chairman

Mr. S. M. Muneer Member

Mr. Tariq Rafi Member


Mr. Abdul Farid Bin Alias Member


Business Strategy & Development Committee

Mian Mohammad Mansha Chairman

Mr. S. M. Muneer Member


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Mr. Shahzad Saleem Member



Dato' Mohammad Hussein Member

Mian Umer Mansha Member


Chief Financial Officer

Mr.Salman Zafar Siddiqi

Principal Office

MCB 15 Main Gulberg, Lahore

Registrar's and Share Registration Office

MCB 15 Main Gulberg, Lahore

M/s. THK Associates (Pvt.) Limited

State Life Building No.3,

Dr. Ziauddin Ahmed Road,Karachi.


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Deposits

The MCB banking system performs various functions, out of various functions the most

important function is the opening of an account in the bank. It is very easy and simple for anyone

to open the account in the bank without any difficulty.

Procedure for Account Opening

First of all an application form is filled up which requires necessary details.

Than the signature on the specimen card.

Than allot the account number.

Than the bank issued letter of thanks to its customer.

At the last stage the cheque book is issued to the customer.

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Individual Account Holders.

Joint Account Holders.

Partnership Account Holders.

Joint Stock Company Account Holders.

Types ofAccounts

There are following types of accounts in the MCB Ltd.:

Pak Rupee Current Account

MCBs Pak Rupee Current Account offers you the convenience of unlimited withdrawals i.e.

access to your funds whenever you want without any notice. There is no limit on the number of

transactions. The following are the key points related with it:


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Low minimum balance requirements.

Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.

Use your MCB Smartcard to shop at thousands of merchants across Pakistan.

Hundreds of 9-5 full day banking branches. In addition, you have access to a countrywide ATM network convenient cash

accessibility 24 hours a day.

Pak Rupee Savings Account

MCBs Pak Rupee Savings Account offers you attractive returns on your Pak Rupee investment.

The key points are:

Low monthly average balance requirements.

Profit paid into your account every six months.

Unlimited cash deposit and withdrawal facility at hundreds of branches nationwide.

Use your MCB Smartcard to shop at thousands of merchants across Pakistan.

Hundreds of 9-5 full day banking branches.

In addition, you have access to a countrywide ATM network convenient cash

accessibility 24 hours a day.

Khushali Bachat Account

It is one of the most popular products of MCB. It is important because of the following:

Low initial deposit.

The account can be opened by people from all walks of life and still avail the facility

of profit.

Mahana Khushali Bachat

MCB Monthly Khushali Scheme provides you the following:


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A steady income every month.

Just purchase a Monthly Khushali Certificate.

You will enjoy a steady income of your total deposit every month.

Pak Rupee Term Deposit

It has the following characteristics:

Highly attractive profit rates.

Multiple tenors from one month onwards such as 1 month, 3 months, 6 months, 1

year, 2 years, 3 years, 4 years and 5 year term deposits.

Option of premature encashment.

Option for ATM debit card to access profit earned.

Option for automatic renewal of term deposits.

Saving 365

The MCB Saving 365 account says that the higher you save, the higher you go. MCB Savings

365 Gold Account offers you a wide range of attractive profit rates. The characteristics of saving

365 account are:

The higher your balance, the higher your rate.

Profit calculated on daily basis.

Profit paid into your account every month.

Open your account with Rs. 500,000/- only.

Cash deposit and withdrawal facility at hundreds of branches nationwide.

Foreign Currency Account

Enjoy the confidence of operating an international account, locally. MCB Foreign Currency

Account offers you the option of earning attractive returns on your Foreign Currency Investment.

It has the following key characteristics:


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Open your account in US Dollar, UK Pound Sterling, or Euro.

Open for as little as US$ 500 or equivalent.

Unlimited transactions at your branch.

Free Foreign Currency cash deposit and withdrawal facility.

Rate of Return directly linked with international market.

Profit paid into your account every six months.

Foreign Remittances facility available.

Countrywide network of Foreign Currency Branches.

Cash withdrawal in PKR equivalent.

Your foreign currency account is exempted from Zakat and withholding tax.

Smart Dollar Account

Discover a sensible solution that helps make more of your dollar savings. MCB Smart Dollar

Account is a sensible way to maintain or grow your US Dollar deposit across USD Current,

Savings or Term Deposits. The key points related with it are as follows:

USD Current, Savings and Term Deposit accounts.

Competitive profit rates.

Attractive incentives being offered, if you maintain the minimum amount of USD

10,000/- or above.

Free collection for crediting Foreign Currency Account.

Free Bank Statements.

Free Smartcard.

Business Account

An upwardly mobile way to bring down costs on your way up. MCB Business Account lets you

build your business through the accrued savings from discounted transaction fees, and more. The

following are the key characteristics of business account:

Higher the balance, the higher the number of free transactions.


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Open a Business Account with Rs.50,000 only.

Unlimited free cash deposit and withdrawal facility at hundreds of branches

nationwide.

When you maintain average monthly balance of Rs.100,000 or above than the following free

services will be provided by the bank:

Demand Drafts/Pay Orders.

Cancellation for Demand Drafts/Pay Orders.

Cheque Book.

International ATM Gold Card.

Saving Xtra

Grow with MCB Xtra by saving more and earning greater profit. MCB Savings Xtra Account

offers you a wide range of attractive profit rates. It has the following characteristics:

The higher your balance, the higher your profit.

Now avail attractive rates up to 8.5%.

Profit calculated on monthly basis.

Profit paid into your account semi-annually.

No joining fee on Debit/ ATM Card.

50% Discount on Lockers.

Cash deposit and withdrawal facility at hundreds of branches nationwide.

Unlimited number of ATM withdrawal transactions.

3 Free withdrawal transactions through the branch every month.

Fixed deposits

Fixed deposits are those deposits which are by the bank under the conditions that they will not be

payable on demand but will be payable under fixed or determinable future time date.


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Loan

MCB provides the facility to the people who need advance money to meet their requirements.

For getting the advance the following steps are there:

Information required by the bank.

Preparation of credit proposal.

Sanction advice.

Other terms and conditions.

Types ofLoans

Following are the types of loans through which the MCB facilitates its customers:

MCB Business Sarmaya

Good cash flow is the key to any successful business.MCB Business Sarmaya offers running

finance facility against your house/flat, insuring a steady cash flow for your business. So now

you can breathe easy, because Business set....tau Life Set.

MCB Business Sarmaya is the best Running Finance facility against your residential property

which empowers you to manage your business dealings better. So act today and get MCB

Business Sarmaya and thus improve your business, avail lucrative opportunities and expand your

business, with absolute satisfaction of cash flows. It provides the following facilities to

customers:

Running finance facility, to use as and when you want.

Financing up to Rs. 20 million.

Pay back when you want.

Only monthly mark-up payment.

Lower mark up and that too only on utilized amount.

Option to club income to avail higher financing limits.


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Loans up to 70% of the value of your house / flat.

Fast and hassle free processing of application after completion of your documents.

Doorstep service and assistance from our dedicated sales staff to fill and submit

application along with documents. Access your Business Sarmaya account through our vast ATM and branch network

anywhere in Pakistan.

Available in all major cities i.e. Karachi, Lahore, Faisalabad, Rawalpindi and

Islamabad.

Get discounts if you are already a customer of similar facility at another bank.

MCB Car4u

Life in the fast lane can be really slow without a car. MCB Car 4 U makes it a breeze to

finance/lease your new/used car. So get up to speed, because "Kahin Na Kahin Tau Hai

1 Car 4 You". Life is like a chess board. You plan your career options. You analyze your

business moves. But when you really want to improve your life, you make a power move. MCB

CAR4U Auto Finance is the power move that assists you in more ways than you ever imagined.

The key points are:

Option for financing or leasing.

Financing tenures from 1 to 7 years.

Option for new as well as used cars.

Options for local as well as imported cars.

Financing up to Rs. 2.5 million.

Option for early payment.

Option for replacement loan.

Lower mark up rates. Lower insurance rates.

Minimum 20% down payments.

Fast and hassle free processing of application.

Priority delivery on different vehicles.

No processing fee if the case is declined.


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Pay your down payment after your loan is approved.

Currently available in the major cities.

Get discounted rate if you are already our customer for Personal Loan, Pyara Ghar

or Business Sarmaya. If you are our branch customer, you can avail this facility anywhere in Pakistan.

MCB Pyara Ghar

Owning your dream home has never been easier. Some destinations require a long wait. Like

waiting for a home of your own. But with MCB Pyara Ghar it is now easy to step into your home

and start living a real life. MCB Pyara Ghar is the most sensible option for purchasing,

building, or renovating your new/existing home. MCB Pyara Ghar is an ideal Home Finance

from your own bank that lets you Purchase, Renovate or Construct your home the way you have

always wanted. Having your own home was never so easy. It offers you a range of financing

options to help you realize your dreams. After all ", Apna Ghar Pyara Ghar". It has the following

key points:

Lower mark up rates.

Financing upto 80% of the value of your house/flat.

Options to club income to avail higher financing limits.

Equal monthly installments.

Fast and hassle free processing of application.

Doorstep service and assistance from our dedicated sales staff to fill and submit

application along with documents.

Available in all major cities.

Get discounts, if you are already a customer of a similar facility at any other bank.

Running Finance

MCB provides running loans to its customers. The key points are:

The max time of repayment is one year and it is according to will of customer.


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This type of advances is given to Trade, Commerce and manufacturing general

purposes.

These finances as evident by the name are given to meet their daily needs.

The mark up is charged on daily balances.

It is drawn through cheque.

Demand Finance (DF)

The duration of DF is more than running or Cash Finance. These are made in Lump sum and are

there is a permission to repay the amount in periodic installment. Upon receipt of documents

negotiated by the seller bank, the opening bank makes sure that documents are according to

terms and conditions of the credit. Bank makes the payment to the party against document and

upon expire date, bank receives back money with mark up rate.

Export Refinance Part-1 (Pre-Shipment)

The government pursues the banks to provide the loan to the exporters to promote the

exports. The bank provides this type of advance facility to only those exporters who have not

enough money to make shipment. Bank provides the loans to the customer at the rate of

specific % for period of 150 days.Export Refinance Part-1 (Post Shipment)

This means that the customer has enough amounts to make first shipment but not more. So the

bank issues a loan to the exporter. Finance is provided by the SBP to the exporters for purchase

of raw material, its processing, Packing and shipment. In case, if the party is unable to make the

shipment within specify days of financing. The party has to pay certain amount of finance as

asked by the SBP and after specify days the rate of mark up also goes up. So usually exporters

try to make the shipment within the fixed period set by the SBP.


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Agricultural Loan

Bank provides the agriculture advances in order to enhance and support the agriculture sector of

the country. Banks Agriculture division deals with the agriculture advances. These advances are

of following types:

Farm Credit

Non Farm Credit

Farm Credit

These are the credits provided by the MCB or purchases of inputs for development of agriculture

sector. Following are two main Sub classes of Farm credit:

Production Finance

Development Finance

Non Farm Credit

The second major form of agriculture advance is Non Farm credit. These loans are provided to

boost up agriculture sector to provide the sources of earning of foreign exchange as well as to

provide employment opportunities to people. These loans are providing against mortgage of land

as security or pledge of equipment as collateral security. These are long term or medium term

investment depending upon the project. Following are the different types of small industries for

which loans are provided to improve the economy of the country.

Fish Farm

Cattle Farm

Poultry Farm

Khushali Scheme

Under Khushali Scheme loans/finances are allowed for farm/non farm credits which include

fixed investments/working capital requirements. Amount of finances sanctioned depend upon the

credit requirement and collateral. Financing for land leveling/development, heavy equipments,


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agriculture machinery, vehicles/transport for agri purpose are covered under this scheme. There

may be other development projects proposed by the farmers falling within the ambit of agri

financing, which can be considered under this scheme. It has the following features:

Short, medium and long term financing facilities are extended.

The repayment is scheduled on the basis of farmers convenience on annual/ biannual

basis.

With the MCB provides the following agriculture schemes:

Shadabi Plan

Tractor Finance Sheme

Aabiari Scheme

Growers Finance

Dairy and Meat Plan

Murghbani Scheme

Baghbani Scheme

Mahigeri Shceme

Rupee Travelers Cheque

MCB Bank has been at the forefront of providing its customers with new and innovative

products and financial instruments that are safe, secure and profitable. MCB Rupee Traveler's

Cheques were first introduced in 1993 as safe cash for traveling and travel related purposes. The

product has been extremely popular and is preferred over cash by customers while travelling and

in all walks of life. MCB Rupee Traveler's Cheques- The safest way to Carry Cash

Rupee Travelers Cheques Features are as follow:

Buy them from any of the designated branches in Pakistan.

MCB RTCs are safe to carry and can be used without any inconvenience especially

by Travelers.

At any designated MCB branch.


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In case of loss or theft, you can get the full amount back.

Due to special printing and safety precautions, Cheques cannot be duplicated.

Available in denominations of Rs 1000, Rs 5000, Rs 10,000.

Validity is up to 10 years from the date of purchase.

Customer Service Facility is available at (021) 111-000-123.

More than 900 MCB Authorized branches are selling and purchasing Cheques all

over Pakistan.

Gift Cheque

Now there is no need to worry about finding the right gift for your friends and loved ones. MCB

Gift Cheques are the perfect gift for birthdays, weddings, graduation, religious festivals and

many other occasions. Gift Cheque is beautifully packed in a Gold / Silver envelope with a

personalized Gift Card designed to suit all occasions. They are safer than cash, because they can

be replaced if lost or stolen. They are also available at all TCS Express centers round the clock.

RReemmiittttaannccee

Transfer of money or equivalent to money from one branch to another branch of the same bank

is called remittance.

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Originating branch

It is the branch from which money is send to another branch or the point of origin of remittance.

Responding branch

The branch which receives the instrument or money for remittance is known as Responding

Branch.


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Remittance is classified into following four types:

Inward Remittance

Outward Remittance

Inland Remittance

Foreign Remittance

Types of Payment

MCB uses following types of payments:

Demand Draft (DD).

Pay Order (PO0.

Electronic Mail Transfer (EMT).

Demand Draft

Demand Draft is used for the transfer of money outside station.

A draft is an instrument drawn by a bank in favor of any person on a branch of its

own bank or any other bank to pay a certain amount of money which is demanded to

the person named on it.

It is not necessary for the demand draft that applicant or recipient account should be

open in originating and responding branches.

It is one of the cheapest methods of transference of money within the country or

outside the country.

Applicant has to fill in the application form for availing the facility of demand draft.

After depositing the amount of draft, remittance officer prepares the cheque of

demand draft.


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Pay Order

Pay Order is used as an instrument for transfer of money within station or city.

Pay order is written order, which is issued and received by the same bank or drawn

and payable on same branch.

For pay order it is not necessary that applicant should be account holder.

It is used for local transference of money from one person to another.

The bank charges excise duty and flat rate from the applicant.

Electronic Mail Transfer

The transfer of money from one branch to another branch of the same bank through electronic

mail is called electronic mail transfer.

Corporate Banking

The MCB performs various functions in corporate banking. Few of these functions are:

Term Loans

You as an individual can gain and benefit the most through MCB Consumer Banking. In MCB

you get friendly, efficient and attentive personalized banking services - a unique banking

relationship experienced by each MCB client. MCB offers Short to Medium Term Finance to

meet capital expenditure and short term working capital requirements of our customers. The

loans are structured on the basis of underlying project characteristics and cash flows of the

business.


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Working Capital Loans

Based on the customer's specific needs, the Corporate Bank offers a number of different working

capital financing facilities including Running Finance, Cash Finance, Export Refinance, Pre-shipment and Post- shipment etc. Tailor- made solutions are developed keeping in view the

unique requirements of your business.

Trade Finance Services

Under Corporate Banking MCB offers trade finance services that include an entire range of

import and export activities including issuing Letters of Credit(L/Cs), purchasing export

documents, providing guarantees and other support services.

Cash Management

Our network of over 900 branches in Pakistan enables us to collect and disburse payments

efficiently with our cash management services. This also enables us to offer you a choice of

paper based or electronic fund transfer solutions including collection amounts, cross branch on-

line transactions etc.

Investment Banking

Our Investment Banking Team has emerged as a leading player in Pakistan's Investment Banking

arena. The Team handles advisory, corporate finance and capital markets related transactions.

Within these areas, the team has developed expertise in:

Private Placements

Debt/Equity Underwriting

Term Finance Certificates

Loan Syndication

Arrangement of Non- Fund Facilities


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Mergers and Acquisitions

Privatization

Corporate Advisory

MCB Services

The MCB provides following services to its customers:

MCB ATM Services

Welcome to a world of convenience with the MCB ATM Card. "It Works. Anytime, Anywhere

in Pakistan and abroad. MCB ATM Card is accepted at over 3500 ATMs nationwide. MCB has

the largest and most widespread ATM network in the country. MCB ATM Card enables you to

access fast cash, inquire account balance, transfer funds and pay utility and mobile bills/mobile

top-ups from any of over 420 MCB ATMs in the country. The MCB ATM Card has the

following two categories:

MCB ATM Regular Card

The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per day and a maximum of

3 withdrawals per day per card.

MCB ATM Gold Card

The MCB ATM Gold Card allows withdrawal up to Rs. 25,000 per day and a maximum of 6

withdrawals per day per card. The cardholder has to make at least two transactions to withdraw

the full amount of Rs. 25,000.


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General Inquires.

Financial services and non financial services.

Money Gram

Money Gram is a global leader in worldwide money transfer services, working closely with

specially chosen agents in 176,000 locations across 190 countries and territories, offering a

customer-to-customer money transfer service which is fast, convenient and trusted. They provide

a secure way to send and receive money to and from your loved ones worldwide and make sure

that your money gets to where its needed quickly. Transactions are normally available in less

than 15 minutes.

Special Features

Anyone can receive money through 100 designated MCB branches displaying the Money Gram

logo across Pakistan.

Receive Money in as little as 10-15 Minutes.

No Bank Account needed.

Fast, Secure and Easy.

Compliant with State Bank of Pakistan regulations.

MCB Bank Ltd. does not recover any charges from the Receiver against money

received through Money Gram.

How to Receive Money

Ask the person who is sending you money to give you your 8-digit reference number.

Visit a designated MCB Branch displaying the Money Gram logo. Please bring your

Computerized National Identity Card (CNIC) and your 8-digit Reference number

with you.

Complete our simple receive form and show your identification you will then be

given your money, usually in your local currency.


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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.

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.

Mission Statement

To play a dynamic role in promotion of Islamic Banking and win customers trust by providing

sharia compliant financial services.

Islamic Banking Management Committee

The bank has established an Islamic Banking Management Committee comprising of the senior

executives representing various important functions of the bank, such as, Credit & Risk

Management, Finance, Treasury, Operations, Islamic Banking Division and Sharia Advisor.

The objective of this committee is to review the products offered by Islamic Banking Branches,

and to improve them not only to make them competitive and practicable but also make them

truly Sharia Compliant.

Shariah Advisor

Dr. Muhammad Zubair Usmani, working as Sharia Advisor in the bank since July 2000 is a

prominent scholar having Ph.D. degree in Islamic Finance as well as Fazil Takhassus from Jamia


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Darul Uloom Karachi, (i.e. specialist of Islamic Fiqh and Fatawa). He has attended and

addressed several international and local seminars / conferences as guest speaker in Pakistan as

well as abroad.

He has also worked as Research Scholar and member of various forums and committees formed

for promoting the cause of Islamic Banking in Pakistan and abroad. All products are approved by

our Sharia Advisor Dr. Muhammad Zubair Usmani and these are further approved and vetted by

Dar ul Ifta, Jamia Dar ul Uloom Korangi Karachi. Majority of the products are signed by

Maulana Muhammad Taqi Usmani.

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 Sharia.

Deposit Schemes

If you are looking for a deposit opportunity where you can purse your funds and reap HALAL

returns, MCB offers following products:

Al Makhraj Saving Account

The minimum deposit requirement for Al-Makhraj Saving Account is only Rs. 5,000 and profits

can be earned semi annually.

IANAT Account

If you are looking for a chequing account that gives you the ease of doing unrestricted number of

transactions, the bank offers Al-Makhraj Ianat Account. Ianat Account may be opened with a

minimum of only Rs. 10,000. With all the features and facilities that this product offers, it is

highly recommended for management of business funds.


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Diminishing Musharika Equipment

It is a contract through which the bank and its client participate in the joint ownership of a

property. The share of the Bank is further divided into a number of units and it is agreed that the

client will purchase the banks share periodically, thus increasing his own share until all the units

of the bank are purchased by him so as to make the client the sole owner of the property.

Up Coming Products

Following are the products which are expected to be in the near future:

Diminishing Musharika Housing

Guarantee

Istisna cum Murabahah

Istisna Post Shipment

Management of Deposit Schemes

Deposits shall be managed under the Mudaraba arrangement, under which customer is the Rabb-

ul-Maal and bank is the Mudarib. Bank, being the Mudarib, shall be responsible for placing the

funds in secured as-well-as profitable Islamic ventures on the basis of Ijarah, Murabaha,

Mudaraba, etc and shall share a portion of profits as a compensation for its efforts. The profit

sharing ratio shall be announced at the beginning of month. Rabb-ul-Maal, on the other hand,

shall earn the net profit after all deductions, and this total earning of the Rabb-ul-Maal shall be

shared by the individual depositors on the basis of weightages, which shall be announced at the

beginning of the month. In the event of loss, Mudarib would lose its profit share which otherwise

would have been paid to it in the cases of profit, and Rabb-ul-Maal shall bear the net loss.


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How is the Return Halal

Care would be taken in ensuring that both the arrangements of accepting deposits from

customers, and investing that amount in Islamic Modes of Financing, are done in a strictlyShariah-compliant manner. On the basis of approval from reputed Shariah scholars, who belong

to internationally renowned university for Islamic education, products have been designed to not

only suit the needs of depositors/ borrowers but also remain strictly in compliance with Islamic

Shariah. Moreover, our Shariah Advisor, Dr. Maulana Muhammad Zubair Usmani would also

monitor our transactions on a daily basis.

Elements of Riba have been eliminated completely from the contracts so that income earned

through investments in assets is completely halal and is shared by the depositors in a Shariah-

compliant manner. A transparent system of weight ages is used to calculate the profit rates on the

basis of which profits are disbursed to each customer. These weight ages are announced by the

bank at the beginning of each month/ term and posted on the Notice Boards of Islamic Banking

Branch as well as on our website.

How to Make Deposits in these Schemes

All that shall be required to do to deposit funds with us is to fill in the form, and pay us through

any mode convenient to the customer i.e. Cash, Cheque, or Pay Order in favor of MCB Bank,

Islamic Banking Branch. Funds may be deposited at Islamic Banking Divisions branch, or at

any of the authorized MCB branches.

MCB Virtual Banking

MCB Virtual Internet Banking offers you the convenience to manage and control your bankingand finances; when you want and where you want. MCBs Virtual Internet Banking facility is:

Simple

Secure

Free of cost


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MCB Virtual Internet Banking allows you to access banking services, 24 hours a day, 7 days a

week and throughout the year.

What do MCB Offers

MCB Virtual Internet Banking offers a wide range of online services which makes your banking

accessible anytime and from anywhere.

Detailed Account Summary of all listed accounts.

Mini-statements of each of the listed accounts showing recent transaction history for

that account(s).

Statement-by-Period of each of the listed accounts, based on the period specified.

Immediate or Scheduled Transfer of Funds between your own accounts, as well as to

third-party accounts setup as beneficiaries, maintaining accounts with MCB.

Scheduling of One-Time as well as Recurring Funds Transfers.

Payment of utility bills for registered Utility Companies.

Immediate or Scheduled Bills Payment. Scheduling of One-Time as well as

Recurring bill payments. Option for Full or Partial payment based on the

payment conditions specified by a particular Utility Company.

Bulk Salary Transfer for Corporate Customers, to facilitate them in paying salary to

the corporate employees, who maintain accounts with MCB.

Bulk Funds Transfer for Corporate Customers.

Cheque Book Request for any of your listed accounts.

Payment/Transfer Alerts for reminding, in advance, prior to the processing of

specified payments and transfers.

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

Mobile Recharge facility for all Telcos.

How can someone start?

The procedure is very simple:


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Click on the register link on the MCB Virtual Banking page & complete the

application form, suggest your MCB Virtual Internet Banking User ID choices and

click submit.

Visit any MCB ATM, select the option Service Requests and on the next screen

select Internet Banking Reg. Wait a while for the Registration to complete and the

appropriate message will be displayed.

Check your registered email address for the registration confirmation containing your

Virtual Internet Banking Password and Customer number.

With your Customer Number handy, call the MCB Call Centre on (021) 111-000-622

to obtain your User ID. After verification User ID will be disclosed to you, enabling

you to start using the MCB Virtual Internet Banking service.

The virtual banking includes the users:

Individuals

Corporate

MCB Selects SYMBOLS

PAKISTAN, SINGAPORE, OCTOBER 24, 2002 - Muslim Commercial Bank largest private

bank in Pakistan and System Access, a leading global universal banking solutions provider, are

pleased to announce the signing of agreements to select SYMBOLS to run the bank's business

operations.

The Bank will be implementing the full suite of the latest version of SYMBOLS Version 8.

Muslim Commercial Bank will run SYMBOLS finance modules to deliver personalized services

to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center

will serve as its core banking transaction processing engine.

By implementing SYMBOLS, Muslim Commercial Bank aims to raise the level of its customer

service and its time to market in new product offerings for its three cores banking businesses in


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Corporate, Commercial and Consumer Banking - retaining its market leadership as Pakistan's

progressive Bank.

"On the technology front, we are impressed with SYMBOLS's multi-tier architecture. It gives us

the scalability for future growth - a critical consideration in meeting the real-time needs of our

extensive ATM network, over 1,000 branch network and growing online services. The adoption

of Java-based technology also provides an added advantage for easy integration of our legacy

systems" says Mr. Ali Munir, Senior Executive Vice President, MCB.

SYMBOLS application architecture is centered on a customer relationship management

foundation that facilitates customer knowledge, interaction, and relationship development and

better management of risk at the customer level.

Commenting on the business benefits, Mr. Ali Munir says, "The customer centric nature of

SYMBOLS allows us to enjoy a complete 360-degree view of our customers' interaction profile

across the Bank, with a consistent dialogue between our customers and the Bank across multiple

service delivery points."

"Muslim Commercial Bank requires a proven, scalable system that addresses both speed-to-

market for new products and services with excellent customer service levels across the bank inreal-time. SYMBOLS have again proved itself to satisfy every aspect of technology and

functionality as a true universal banking solution." comments Mr. Ramesh Nava, Senior Vice

President, Asia-Pacific Operations, and System Access. System Access will provide

implementation, training and support to Muslim Commercial Bank.


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ACCOUNT OPENING DEPARTMENT

y For the duration of my internship in MCB, I have learned and observed many

things about opening an account. Basically, I think that opening an account is to

establish a contractual relationship between banker and client. By opening an

account at a bank of a person becomes a "client" of a bank. In addition, I will

express the basic requirements and steps for opening account.

y Before opening an account at MCB I observed that the following points should be

considered in this regard.

y Another account holder of the bank should properly present the new client.

y The account holder must sign the account opening form in the presence of the

representative of the bank and the signature is properly verified.

y A copy of the ID card is required by the Bank.

y Against the submission of the form of Bank prescribed application duly presented

in the manner prescribed and on the provision of these documents may be

necessary and account can be opened. The Bank reserves to itself the right to

refuse to open an account without giving any reason.

y Each account is assigned a separate number must be quoted in all

correspondence with the relationship bank account.

y Minimum to open and ongoing maintenance of various types of accounts is as

follows: Rs

y Savings of 500

y Current 500

y Term deposit 1000


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Recommendations

Although the MCB Ltd. is working very efficiently and effectively since its privatization in

1991. It becomes one of the leading private banks in the Pakistan. It is contributing a lot in the

economy of Pakistan. But there still something on which the management of the MCB should

work on. The following should be needed to improve:

The employees of the bank feel the boredom of doing same tasks. So the job rotation

policy should be adopted frequently to create interesting working conditions.

The management of the bank must send its employees for different courses in the

major cities of Pakistan or even abroad. This will contribute in the employee

development and also in the organizational development.

The management should send the employees on the training. This will help the

employee to understand his work and perform his duties in an efficient way.

The incentives to the employees should and must increase on the regular basis. So it

will increase the employee retention with the bank and also increase the employee

involvement.

The management of the bank should design the proper internship program for the

graduate students and also for the post graduates in way that they can learn a lotduring their internship.

With that the internship program should be in a way that the deserving students can

get the chance for the internship.

Recently the management is closing its non profitable branches frequently. So the

management should try to minimize the problem and maximize the profit but should

not close the branches. Because this will also cause the unemployment.

The management should take care the shareholders of the bank and always keep an

eye to maximize the wealth of the shareholders.

Recently the management of the bank is not working on the policy to attract the

foreign business. The management should also work on to expand its business

internationally.

Ahmed Report

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