Muslim Commercial Bank (Internship) 2 Chapter -1

Chapter – 1

INTRODUCTION

1.1              Background of Study:

           

For the first time banking system was started in 2000 B.C. In these Greek banking institutions were popular, and with the passage of time the need was felt to establish banks and so in the middle of 12^th century banks were established at Venice and Geneva. The origin of modem banking started in Europe in the 14th century.

Internship at banks has almost become a cliché. Over the past decade a trend has been established by the business and public administration students regarding internships at banks. Thus it can be very convenient for anybody to view this report as any other report on any other bank. This misconception has been the biggest challenge and motivating force to take up this study. My efforts have been directed at maintaining a qualitative difference from a routine study.

The picture of the banking sector in Pakistan is not a rosy one like the overall economy. There have several intermittent socio-political crises over the past few years. Banks in general have had to bear the brunt of the polices of politicians and economic managers of our country. Banks have been largely used as an instrument of manipulation rather than as a tool for financial stabilization. The liquidity crunch of our banks has been a direct consequence of loan defaults by the high and might of our society.

These rough conditions provide me with an excellent opportunity to explore the path to survival for a financial institution while all the others around it are falling like ninepins. The study is particularly aimed at the contributions of MCB to an unstable economy and at the urgent need of whole scale rationalized reforms.

1.2              Purpose of Report:

Commercial banks are profit-seeking institutions. They have been the most effective mobilizes of saving and have been providing short-term requirements of profit earnings concerns. The purpose of his report is to explain the various operations of MCB Melody Branch and how day-to-day activities are performed.

1.3 Scope of Report:

This report explains the operations of only one of the branches of MCB, which is MCB Melody Branch, located in Melody Islamabad

1.4 Limitations Of Report:

It is to admit that the study attempts only those aspects, which are closely relevant to the purpose of the study. Facts and figures, which otherwise might be equally important, but not having a direct bearing on the conclusions arrived at is this study, have been ignored.

The most important limitation from which the study suffers is the non-availability of information in a manner required for analysis and the secrecy of the Bank. Another important limitation of the study is time constraint. Six months period, with intervals, is too less to study the operations of the Bank thoroughly.

1.5 Methodology of Report:

The report is aimed at tow level, the first at the branch level and the second for the organization as whole. No secondary data is available at the branch level hence all the observation of the report are the result of primary data gathered from the bank from the following sources.

The secondary data is collected from the following source.

I. Interviews.

2. Personal Observations.

3. Brochures.

4. Review of annual report 2007 - 2008

5. Bank Manuals.

6. Journals & Newspapers

7. Internet

1.6 Scheme of Report:

This report is partitioned in four sections containing following chapters.

 Section I:

Chapter I: Introduction.

In this chapter background of banking, history of MCB, purpose, scope, methodology and scheme of the report is described.

Section II:

Chapter 2: MCB Historical Background

Chapter 3: Organizational Structure.

Chapter 4: Products and Services.

Chapter 5: Departmentation.

Chapter 6: Human Resource Management.

Section III:

Chapter 7: Operation Analysis

Chapter 8: Financial Analysis

Section IV:

Chapter 9: Findings and Recommendations.

Chapter 10: Implementation! Action Plan