TABLE OF CONTENTS
Executive Summary
Organizational Background
Brief History of MCB BANK LIMITED
MCB BANK TODAY
Vision
Statement
Mission
Statement
AWARDS
CORE VALUES
OBJECTIVES OF MCB
ORGANIZATIONAL HIERARCHY OF MCB
MANAGEMENT LEVEL
ORGANIZATIONAL
SETUP OF MCB
BRANCH NETWORK
ORGANIZATIONAL STRUCTURE OF MCB
PRODUCTS OF MCB BANK
DEPARTMENTS AT MCB BANK LTD
Clearing Process (Flow Chart)
SERVICE CHARGES
Human Resource Management
HR PLANNING
Recruitment
RECRUITMENT
& SELECTION PROCESS
CULTURE AT MCB
Organogram at MCB BANK LTD
Communication
Automation
Telephone
System
Intercom
FAX
Electric
Type Writer
Recommendations
CONCLUSION
REFERENCES
Executive Summary
This term report is an essential
part of the course Organizational behavior because through this, students come
to know the real difference between theory and practice and they are also
introduced to the outside business world. An important requirement of this
study program is to compile a report about the activities of that organization
in which the student has studied the organization behavior.
I survey organizational behavior
in MCB BANK LIMITED. This report provided me great opportunity to equip myself
with knowledge, techniques, application and tools used in an organization.
The report covers various
features of knowledge. It starts with the brief history of Bank, covers current
status, mission statement, vision statement, the bank position today and in the
past decade, hierarchy etc.
The major portion of this report
explains the organizational behavior of MCB BANK LTD. Division of departments
and their activities highlights the working of MCB BANK LTD and my learning
experience elaborates how much these visits were useful for me.
Concluding the report there are
certain recommendations and suggestions for the bank in order to have
improvements.
The source of information for the
preparation of report includes the written notes extracts from banking
literature and verbal discussion with bank officials.
We hope this report will help in
understanding various aspects and features of MCB BANK LTD. And will be equally
important for business administration students and persons making future
banking.
Organizational Background
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 provided 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.
PRIVATIZATION
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.
AFTER PRIVATIZATION
Ten years after privatization,
MCB is now in a consolidation stage designed to lock in the gains made in
recent years and prepare the groundwork for future growth. The bank has
restructured its asset portfolio and rationalized the cost structure in order
to remain a low cost producer.
After
privatization, the growth in every department of the bank has been observed.
Following are some key developments:
·
Launching of different deposit schemes to
increase saving level.
·
Increased participation on foreign trade.
·
Betterment of branches and staff service level.
·
Introduction of Rupee Traveler Cheques &
Photo Credit Card for the first time in Pakistan.
MCB today, represents a bank that
has grown with time and experience. A major financial institution, in scope and
size, it symbolizes a fully growing tree evergreen, strong, and firmly rooted. MCB is one of the leading banks of Pakistan with a
deposit base of about Rs. 280 billion and total assets of around Rs.300
billion.
The Bank has a customer
base of approximately 4 million, a nationwide distribution network of over
1,000 branches and over 450 ATMs in the market.
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.
SOCIAL SECTOR:
The bank activity participating in the Prime Minister self-employment
Scheme. The application received from various applicants is being processed on
merit and disposed off as quickly as possible.
To be the leading financial provider, partnering with our customers for
a more prosperous & secure future
We
are a team of committed professionals, providing innovative and efficient
financial solutions to create and nurture long-term relationships with our
customers. In doing so, we ensure that our shareholders can invest with
confidence in us.
|
MCB
Bank has won many awards, which is a clear proof of its good performance. It
has won Euro money awards and Asia Money awards.
► Euro money Awards
●
Best Bank Award 2008
• Best Bank in Pakistan Award 2006
• Best Bank in Pakistan Award 2005
• Best Bank in Pakistan Award 2004
• Best Bank in Pakistan Award 2003
• Euro money Award 2003 for the "Best Bank
in Pakistan".
• Best Bank in Pakistan Award 2001
• Best Domestic Bank Award 2000
► Asia
Money Awards
• The Best Domestic Commercial Bank Award 2005
• The Best Domestic Commercial Bank Award 2004
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 customer’s 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.
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.
The following are the objectives of MCB Bank Limited.
CREATING AND
MANAGING VALUES:
The first objective of MCB Bank limited is to create and
manage the values, which is one of the back bones of the objective of any well
organized and managed organization.
HUMAN CAPITAL:
The second objective of MCB 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 MCB 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 MCB 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 mean 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.
ORGANIZATIONAL HIERARCHY OF MCB
MANAGEMENT LEVEL
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)
The following is the Branch Network of MCB Bank
Limited.
Sector wise position of circle is as follows;
Consumer Sector 810 Branches
ORGANIZATIONAL STRUCTURE OF MCB
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 division, financial division &
Inter branch division, Banking operations division, HR & Legal division,
financial control & Audit division, Credit management division, Commercial
Banking division, Corporate Banking division, 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
Corporate Banking:
These are
branches which have an exposure of over Rs. 100 million. Usually includes
multinational & public sector companies.
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.
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.
1. MCB Rupee Traveler Cheques
MCB Rupee Travelers Cheques are
as good as cash, in-fact 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.
3. MCB Khushali Bachat Account
Salient Features
·
8% rate of return per annum.
·
Returns calculated on daily.
·
Average balance and paid half yearly.
·
Introduced first time in Pakistan.
·
The facility of helping account holders pays
utility bills (electricity, telephone and gas) through their account. No
queues. No delays.
4. 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.
5. 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.
6. 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.
7. Utility Bill Collection
With the aim of
extending this service to wider range of customers, the number of MCB branches
collecting Utility Bills more than 900.
8. MCB
Mobile Banking
At the forefront
of technological excellence, MCB proudly introduces MCB MOBILE BANKING. The
convenience of accessing account balance information and mini statements
whenever want or wherever may need them, with comfort and peace of mind.
MCB Mobile
Banking service is available to all MCB ATM cardholders, 24 hours - 365 days.
MOBILE BANKING AT A GLANCE
MCB Mobile Banking gives easy and quick access
to account(s) at a time find convenient, including all holidays.
·
With MCB Mobile Banking
Check
balance
View
the last 4 transactions of your MCB account(s).
·
Banking
at fingertips
Dial in anytime
to get information regarding balance and mini statements.
9. MCB
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.
10. MCB
Car Cash
Car financing
and leasing at competitive rates with flexible options Car cash finances both
semi-commercial and non-commercial vehicles for personal and business use.
11. MCB
Locker
Best protection for valuable
things. Lockers of different capacities are available in the branches but only
for valued customers.
12. MCB
Master Card
THE FUTURE OF MONEY :
Since the beginning of time, people have tried to
find more convenient ways to pay, from gold to paper money and checks. Today,
money is moving away from distinct hard currencies and towards universal
payment products that transcend national borders, time zones, and, with the
Internet, even physical space.
Plastic or "virtual" money, credit,
debit, and electronic cash products, inevitably will displace cash and checks
as the money of the future.
·
Cash Advance Facilities
Available in Pakistan and worldwide with a
network of over 1,000 branches and a team of dedicated professionals, MCB is Pakistan’s
largest private sector commercial bank. Our Consumer Banking provides customers
with innovative saving schemes, products and services. Our ATM network is the
largest in Pakistan
and our Pak Rupee Travelers Cheques are market leaders. We were the first to
introduce the photo card with the introduction of the MasterCard.
Our Corporate Banking ensures assistance from a
dedicated team of professional financial advisors for underwriting, project
finance or corporate advisory services.
When it comes to banking
practices, you can depend on us. We’ve been around for over fifty years.
13. MCB
Smart Card
MCB now
brings you MCB SmartCard -a
secure and convenient instrument of payment with unmatched functionalities. It
provides 24-hour direct access to your bank account
The convenience and flexibility of MCB SmartCard will help live a smarter life.
It not only helps you manage your expenses, but also avoids undue interest on
your day to day credit card transactions.
Your balance is always within your reach and you
spend accordingly.
MCB is the only bank to introduce a debit card
that gives the option to choose from domestic and international card for local
and global usage respectively
14. Remit
Express
Fastest to Pakistan Anywhere in Pakistan.
Fastest way of getting your money across Pakistan. Remit
Express offers low cost remittance from U.A.E. and Saudi Arabia. Your relatives,
friends or business associates receive drafts within 72 hours. MCB Remit
Express has been specifically designed to meet the needs of the expatriate
Pakistani community residing in the Gulf countries.
15. MCB Pyara Ghar
MCB gives dream home at the lowest and best
possible mark-up rates. You can choose either one of our two mark-up rate
options- fixed or variable.
Early repayment option
tailor-made to allow making partial prepayments at dates that suit.
16. MCB
Virtual
MCB Virtual provides the
continence of banking on internet. Whether we are at home, in office or doing
travel. Log on at www.mcb.com.pk and enjoy 24 hours access of all your
accounts for the largest array of service.
17. MCB
Business Sarmaya
MCB Business Sarmaya is a running
finance against your residential property. It offers running finance up to 20
millions with low markup.
18. MCB
Car 4 U
MCB car 4 u auto finance is a
power move that gets you not only a car of your own choice but leads you best
in life. It is affordable with competitive markup, flexible conditioning and
easy processing and above all no hidden cost.
! NEWLY LAUNCHED PRODUCT
Now a
day MCB is offering a new product called as “SARMAYA MEHFOOZ FUND”.
This
fund is valid up-till 17th
April, 2010. 9.5% profit ratio has been allocated for this fund.
this is a one year and 1 month investment (13 months). And no tax would be
deducted on this investment. For example if a person deposited 10,000,00 than
he will get Rs.95000 profit + his principle amount after completing 13
months.
The purpose of
banks is to provide services to the general public. And for this purpose
different banks provide different services to the people in different forms.
The MCB Bank 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 MCB 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;
·
Collecting cheques and bill of exchange for the
customers.
·
Collecting interest due, dividend, pensions and
other sum due to customers.
·
Transfer of money from place to place.
·
Acting an executor, trustee or attorney for the
customers. ‘Providing safe custody and facilities to keep jewellery, documents
or securities.
·
Issuing of travelers cheques and letters of
credit to give credit facilities to travel.
·
Accepting bills of exchange on behalf of
customers.
·
Purchasing shares for the customers.
·
Undertaking foreign exchange business.
·
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.
Remittance department
5.
Foreign exchange department
CASH DEPARTMENT
The following
books are maintained in the Cash Department:
·
Receiving Cash Book
·
Paying Cash Book
·
Token Book
·
Scroll Book
·
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 Cheques
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
ACCOUNT:
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 ACCOUNT:
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.
KHUSHALI BACHAT ACCOUNT
(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. 20000/-. 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 GOLD:
This is a
special type of saving account in which customer maintains a minimum balance of
Rs. 500,000- 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.
Term Deposits Receipts
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 en-cashable after expiry of the
period for which they were issued. Different profit rates are applied to
different type of TDRs.
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.
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
·
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 Department
·
To accept Transfer, Transfer delivery, clearing
and collection Cheques from the customers of the branch and to arrange for
their collection.
·
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.
·
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
·
Receiving and scrutinizing the Cheques and other
deposit instruments, and the pay-in-slip at the counter.
·
Fixing the stamps.
·
Scrutiny and receipt by the authorized officer.
·
Returning the counter file to the depositor.
·
Certificate and confirmation by the officer in
charge of the department. ,
·
Separating the Cheques into transfer, transfer
delivery, and clearing Cheques.
Clearing Process (Flow Chart)
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.
·
Loans
·
Cash Credits
·
Overdraft
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;
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.
LOAN AGAINST PLEDGE OF STOCKS
In case of
advancing such types of loans, the following precautions are kept in the mind:
·
Stock pledged must be readily saleable
·
Products should be readily saleable
·
Advance should be within the borrows means
REQUIREMENTS OF LOAN
For granting
loan to any party or individual, the bank checks following particulars of the
client:
- Credibility
- 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.
CASH CREDIT
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:
REMITTANCE DEPARTMENT
Remittance department performs
following functions:
·
Mail Transfer (MT)
·
Telegraphic Transfer (TT)
·
Demand Drafts (DD)
Mail Transfer (MT)
When a customer requests the bank to transfer his money
from one branch of bank to another branch of the same bank or from one city to
another city to the same bank or any other bank. Customer fills the form given
by bank. If the customer has an account with that amount as mentioned in the
application form then concerned officer will undertake the following procedure
to make the mail transfer complete.
1.
Branch Mail transfer form
2.
Receiving Branch Register copy
3.
Issuing branch register Copy
4.
beneficiary advice
5.
advice to customer
In case where
the customer is not account holder of the bank then the customer will have to
deposit the amount which he wants to transfer under Mail. Then the above said
procedure will be done.
Telegraphic Transfer (TT)
This type of
transfer is simple. After filling the application form the concerning officer
shall fill the telegraphic transfer form. Then it is sent to the required bank
which on receiving it immediately makes the payment to the customer and
afterwards the voucher are sent to that bank by ordinary mail.
Demand Draft (DD)
Demand draft is just like Cheques
and issued when the customer wants to take cash with him personally. The idea
behind is to avoid the risk and burden of currency notes in huge quantity.
Demand draft can easily be handled whatever amount it has and the money can
easily be taken from the bank when it is presented. In fact, the bank persuades
the customer to transfer money by drafts and avoid the risk of frauds involves
in MT and T.T. Draft is only issued when the bank knows customer and bank has
the confidence in him
In case of transfer of
money by drafts, the customer has to fill an application form. Then the
concerned officer fills the following forms:
1.
Customer’s advice
2.
Customer’s debit form
3.
Register copy
4.
Cover Advice
Foreign Demand Draft
Foreign Demand
Draft is just like demand draft. The only difference is that a bank issues FDD
to the bank of another country. It requires foreign exchange and it involves
seven forms, which are to be filled.
Human Resource Management
The bank’s Human Resource
Division is actively involved in implementation of policies and programs geared
to enhance the quality of work life of its team members. For this purpose
adequate attention is given to all facets of Human Resources Management.
The Training and Development Centers remain at the helm of imparting
training and related skills, not to only fresh recruiters but also existing
employees. They have in place the state-of-the-art Training and Development Center both in Lahore and Karachi for equipping the personnel of the
MCB BANK LTD with tools that help carve a brighter future. Our corporate
philosophy in this regard is that training is indispensable in not only
enhancing organization effectiveness but also individual’s job satisfaction.
The training center actively
organizes several in-house courses and conducts training of Management Trainee
Officers (MTO)/TBO’s (Trainee branch officer) batches in Lahore and Karachi simultaneously, who upon completion
of training, are placed in branches and Head Office divisions.
Human Resource Department is responsible for:
·
Planning
·
Recruitment
·
Selection
·
Socialization/Orientation
·
Training
·
Placement
·
Performance Appraisal
·
Transfers
·
Compensation
·
Motivation
·
Abiding by equally employment opportunity laws
etc.
All Units/Branches of the Bank
systematically forecast their future staffing requirements of competent high
quality staff. Such forecasting is done in the month of OCT/NOV each year.
Requirement of additional staff
is intimated to HRD through Area Manager’ officer and in the case of Head Office
Divisions/Departments, through the concerned Executive In charge’s office. Staff
hiring may be done in batches, in small group on individually.
The management of the Bank may,
at its discretion, employ expatriate. The bank comply provisions of the Emigration
Ordinance/Law when hiring such employees.
The hiring process starts from
filling out a “Staff Hiring Form” which entails the reason for hiring i.e. due
to expansion, replacement etc.
Secondly, it shows the financial
position of the branch which needs to hire employees. This is done to analyze
the performance of that branch and to see whether it really requires additional
people or not.
In this stage, a detailed study
is made, analyzing the organization chart and depicting that what are the key
positions and which ones need to be filled or requires more personnel.
Once the analysis is done, the
respective Branch Manager fills out an “Appointment Proposal Covering Sheet”
which tells whether the recruitment is to be made as an addition or as an
addition. Here one very important factor is kept in mind that the recruitments
are made under the budgeted figures for the year.
Then the proposal is signed the by authorized Branch Manger
and the Area Manger and the recruitment process is initiated.
Individual hiring is to be done from time to time when a
branches or unit has a need to induct add replacement of outgoing staff.
MINIMUM ENTRY REQUIRMENTS
·
Minimum entry requirement for employment in MCB
BANK Ltd is graduation. In officers from a recognized university of home
country or abroad. However condition of graduate waived by competent authority
to suit the requirements of the Bank.
·
Persons deputed by “External Service providers”
must possess matriculation or higher degree. However condition of matriculation
may be waived by competent authority to suits the criteria of the Bank.
Recruitment in MCB BANK LTD
is carried out through the following three streams of candidates:
Batch Trainee
Direct
Induction of Fresh Candidate
Experienced Professionals
Based on requirements of experienced staff, MCB BANK LTD
also recruits talent from the marketplace. It offers competitive salary /
benefits to worthy professionals at all levels who wish to join hands with one
of Pakistan's
fastest growing banks. From time to time, positions of experienced bankers
become available in the following areas:
·
Banking Operations
|
|
·
Trade Finance
|
|
·
Credits
|
|
·
Sales
 |
Training and Development
MCB BANK LTD management believes in developing the potential
of its employees to the fullest extent. Training & Development Center
of the Bank is housed in custom-built, state of the art facility on the 4th
floor of the Head Office building at Karachi.
The center is responsible for providing multi-level high quality training
programs for all staff members in the following areas:
Consumer banking operations
Credit marketing & credit
proposals
Credit administration/documentation
Trade finance operations
Marketing & selling skills
Customer service skills
Performance appraisal skills
Time management & personal effectiveness
Consumer banking operations Credit marketing & credit
proposals Credit administration/documentation Trade finance operations Marketing & selling skills Customer service skills Performance appraisal skills Time management & personal effectiveness
Department is unable to provide
focused training for certain groups of staff; reputable external training
providers are invited to fill the gap. It is obligatory for each staff member
of the bank to attend at least one training program.
At the time of induction, it is mandatory for
all employees to undergo an extensive on the job training for one month in a
successful branch.
Performance Appraisal
MCB BANK LTD performance
appraisal system is based on a combination of “MBO” and enabling factors’ approaches,
under which 50% weight age is assigned to performance goals discussed and laid
out in the beginning of the year another 50% weight age is assigned to enabling
personality factors, which are clarified to all employees by their supervising
officers at the start of each year.
Objectives of performance appraisal:
1) Improving the performance of the bank and its staff
members. Laying a solid foundation for relationships between staff and
management
2) Clarifying performance targets for all.
3) Using the process for career planning and professional
development of staff.
4) Review of salary, assignment and career path.
FACTORS WHICH
EVALUATE PERFORMANCE APPRAISAL
·
Sincerity with job.
·
Good performance.
·
Good customer relations.
·
Job performance.
·
Punctuality.
·
Good relations with colleagues and boss.
·
Level of commitment
●
Good decision making
Being in service industry MCB has a fast
paced work environment where early responsibilities and independent decision
making enables an individual to reach his/her desired potential. Also there is
a strong performance management system that has built a meritocracy where
highly performing potentials are duly rewarded /as a
result MCB embark upon a single minded commitment towards a Performance
driven culture.
Communication
In
house communication example: Notice board at MCB BANK LTD
Automation
A very good office environment
is supported by strong office automation. The automation includes the
installation of telephone system, telex, fax, power generator and UPS etc. Now
we shall discuss each activity performed in lieu of office automation.
Telephone System
A telephone exchange system by
Digital Communication is installed to communicate with the outside world. This
is very helpful as the most of the business these days is performed through
telephones.
Operator is responsible for the
incoming calls only. She receives all the calls and connects them to person
concerned. A staff member, who wants to call outside, has to dial `0' to clear
the line or can ask the operator to dial the number he wants. The telephone
operator dials a number for the convenience of any staff member who has to talk
urgently or is busy doing something else.
Intercom
All the staff members are connected
through intercom system. The telephone system serves as reaching out to the
employees in least possible time.
TELEX
To disseminate some urgent information, a telex system is
installed to cater the need of disseminating information.
FAX
For an instant reception or dissemination anywhere in the
world a Fax machine is installed. Faxes, these days have become an important
part of the business environment for a rapid transmission. Steps like this show
the management's commitment towards building up a strong MIS to stay in the
market as one of the better organization. A facsimile machine from XEROX is
there to serve the purpose.
Electric Type Writer
Electric typewriters are also
there for typing of different documents.
Photocopy Machine
Photocopy
machine of XEROX is installed in
order to have copies of different documents to save time and extra costs of
getting photocopies from the market. It has really facilitated the activities
being performed and saves cost and human effort
E mail
In-house communication plays a
very vital role in any organization. MCB BANK LTD has its own internal
electronic mailing system with which it communicates with all the employees of
the bank. The mailing address consists of the name of the employee followed by @mcb.com.pk
Apart from the employees
individual mailing addresses, clients may send a mail on the banks main e-mail
address. Thus in such a case if that mail is meant for a particular employee
then its hard copy (print out) is sent to him.
Notice board
A big notice board is placed in
all the branches of MCB BANK LTD. It is placed on key locations i.e. on the
left side of the entrance gate/door.
The notice board contains a copy
of the memo; information regarding any new products launched by the bank,
branch license, schedule of charges, JD’s, newly announced prize bond list,
gazzetted holidays , some good news paper cuttings etc.
Recommendations
In order to increase
the efficiency and performance of bank we recommend that:
Ø
Branch must possess sufficient number of employees
to uplift the burden of work.
Ø
System and operations should be more defined and
organized.
Ø
Sufficient steps should be taken to improve
customer services.
Ø
Proper product information should be delivered
to all the employees.
Ø
IT draw backs should be improved.
Ø
Internal audit and system should be improved.
Ø
Turn around time of the big ticket proposal
should be reduced.
Ø
Administration drawbacks should be improved by
the strict control of general issues.
Ø
Monthly intra branch meetings should be arranged
to share the current issues and problems.
Ø
Time to time employees training programs should
be arranged.
Ø
It is observed that the employees were
overburdened so they have to stay at branch till late at night. In this way their efficiency is affected and
their work can be reduced by hiring more employees.
It is evident from this report that MCB 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.
● Ayesha
Hassan
(AVP at MCB
House)
● Sadia
Naumaan
(OG III
Credit Cards Officer)
● Sara
Naumaan
(CRO at MCB
Dharampura Branch)
● Muhammad
Nawaz
(HR Officer)
No comments:
Post a Comment