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    Internship Report on MCB bank ltd

    Submitted by

    Syed Usman Nisar

    L1F11BCOM001

    Session !011 " !01#

    F$CUL%& OF COMM'RC'

    UNI('RSI%& OF C'N%R$L )UN*$B

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    1"$ +hayaban"e"*innah Road, *ohar %o-n Lahore,

    )akistanInternship Report on MCB bank ltd

    Submitted by

    Syed Usman Nisar

    L1F11BCOM001

    Session !011 " !01#

    Super.ised by

    )ro/ a2as 3aki

    $ )ro4e5t submitted in partial /ul/illment o/ the re2uirements /or the de6ree o/

    Ba5helors o/ Commer5e

    Fa5ulty o/ Commer5e

    UNI('RSI%& OF C'N%R$L )UN*$B

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    Undertakin6

    I certify that the internship report titled Internship Report on Muslim Commer5ial Bank is

    my own work. The work has not been presented elsewhere for assessment.

    Signature of Student: ________________________

    Name of Student: ___________________________

    egistration Number of Student: _______________

    !

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    Internship Report Completion Certi/i5ate

    It is certified that the work contained in this report titled Internship Report on Muslim

    Commer5ial Bank has been carried out and completed by "r. Syed #sman Nisar$ egistration

    No. %&'&&()*"++&! under my super,ision during his (achelors of )ommerce.

    -rade warded Internship In/charge

    ___________________ _________________

    01aminer2s Signature 34rof. 5a6as 7aki8

    _________________

    4rof. "uhammad 9har Ikram hmadean

    'aculty of )ommerce

    #ni,ersity of )entral 4un;ab

    %ahore

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    $5kno-led6ements

    5rite acknowledgement here. )ontribution of the persons who helped in the conduct of the study

    and in presentation of the manuscript should be properly acknowledged in order of their

    contribution.

    =

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    $bstra5t

    ")( is one of the eminent banks in 4akistan which has made truly a tremendous progress in a

    moderately shorter timeframe. It was found in &>

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    Table of )ontent

    Table of Contents

    )hapter &..........................................................................................................................................&

    Cision Statement:.........................................................................................................................&

    "ission Statement:......................................................................................................................&

    Distory of (ank...........................................................................................................................E

    ")( (ank Today....................................................................................................................

    "anagement %e,el................................................................................................................&+

    *rgani9ational Structure of ")(..........................................................................................&&

    Duman esource 'unctions.......................................................................................................&E

    Structure of the "arketing epartment.....................................................................................&=

    'unctions of the "arketing epartment................................................................................&=

    )hapter E:.......................................................................................................................................&?

    Strategic nalysis of )ompany:................................................................................................&?

    "acro nalysis:.....................................................................................................................&?

    4est nalysis *,er,iew:........................................................................................................&?

    4est nalysis of ")(............................................................................................................E&

    "icro nalysis:......................................................................................................................E!

    4orter 'i,e 'orces "odel......................................................................................................E!

    S5*T nalysis.....................................................................................................................E=

    S5*T nalysis Guadrant )ombination 3S5*T "atri18.....................................................!&

    Industry nalysis...................................................................................................................!>+$ ")( was the first to be pri,ati9ed

    upon recommendations of 5orld (ank and I"'. The purpose behind this decision was the better

    producti,ity state of the association and less risky credit portfolio which madeBB it a decent

    decision for financial specialists. *n pril eighth$ &>>&$ the administration control was gi,en

    o,er to National -roup 3the highest bidders8. t first ;ust E@K of shares were sold to pri,ate part

    at s.=@ per offer.

    $/ter )ri.ati7ation

    Ten years after pri,ati9ation$ ")( 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 rationali9ed the cost structure in order to remain a low cost

    producer.

    fter pri,ati9ation$ the growth in e,ery department of the bank has been obser,ed. 'ollowing are

    some key de,elopments:

    %aunching of different deposit schemes to increase sa,ing le,el.

    Increased participation on foreign trade.

    (etterment of branches and staff ser,ice le,el.

    &E

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    MCB Bank %oday

    ")( today$ speaks to a bank that has de,eloped with time$ e1perience and 4akistan.

    noteworthy money related organi9ation$ in degree and si9e$ it symboli9es a completely

    de,eloping tree e,ergreen$ solid$ and immo,ably established.

    %he Business

    ")( is in it2s o,er =+ years of operation. It has a network of o,er &$+++ branches all o,er the

    country with business establishments in Sri %anka and (ahrain. The branch break/up pro,ince

    wise is 4un;ab 3=?K8$ Sindh 3E&K8$ 4 3&>K8 and (aluchistan 3!K8 respecti,ely.

    ")( has an edge o,er other local banks$ as it was the first pri,ati9ed bank. The State (ank of

    4akistan has restricted the number of branches that can be opened by foreign banks$ an

    ad,antage that ")( capitali9es because of its e1tensi,e branch network.

    'ourteen years after pri,ati9ation$ ")( 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 rationali9ed the cost structure in order to remain a low cost

    producer.

    ")( now focuses on three core businesses namely )orporate$ )ommercial and )onsumer

    (anking. )orporate clientele includes public sector companies as well as large local and

    multinational concerns. ")( is also catering to the growing middle class by.

    &!

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    )ro.idin6 Ne- $sset and Liability )rodu5ts

    The (ank pro,ides E< hour banking con,enience with the largest T" network in

    4akistan co,ering E? cities with o,er &=& T" locations. The (ank2s upee

    Tra,eller )he6ues ha,e been market leaders for the past si1 years and ha,e recently

    launched their -ift )he6ue Scheme.

    ma;or achie,ement of ")( is that the state bank of 4akistan has issued a license to

    ")( to start Islamic banking. Now ")( is setting up a & stIslamic banking branch at &st

    floor shaheen comple1$ arachi. This comple1 starts working from September &$ E++!

    &

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    O.er.ie-

    Core Values

    1 Inte6rity

    5e are the trustees of public funds and ser,e our community with integrity. 5e belie,e in being

    the best at always doing the right thing. 5e deli,er on our responsibilities and commitments to

    our customers as well as our colleagues.

    ! Inno.ation

    5e encourage and reward people who challenge the status 6uo and think beyond the boundaries

    of the con,entional. *ur teams work together for the smooth and efficient implementation of

    ideas and initiati,es.

    ':5ellen5e

    5e take personal responsibility for our role as leaders in the pursuit of e1cellence. 5e are a

    performance dri,en$ result oriented organi9ation where merit is the only criterion for reward.

    ; Customer Centri5ity

    *ur customers are at the heart of e,erything we do. 5e thri,e on the challenge of understanding

    their needs and aspirations$ both reali9ed and unreali9ed. 5e make e,ery effort to e1ceed

    customer e1pectations through superior ser,ices and solutions.

    &=

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    # Respe5t

    5e respect our customers2 ,alues$ beliefs$ culture and history. 5e ,alue the e6uality of gender

    and di,ersity of e1perience and education that our employees bring with them. 5e create an

    en,ironment where each indi,idual is enabled to succeed.

    &@

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    PRESIDENT

    EXECUTIVE VICE PRESIDENT

    SENIOR EXECUTIVE VICE PRESIDENT

    SENIOR VICE PRESIDENT

    OFFICERS GRADE

    I II III

    VICE PRESIDENT

    ASSISTANT VICE PRESIDENT

    CASHIER

    ASSISTANTS

    PEONS

    Or6ani7ational 9ierar5hy o/ MCB

    Or6ani7ational Setup o/ MCB

    &?

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    Ceo, s Messa6e

    5e at ")( (ank %imited belie,e that e,ery employee is uni6ue and possesses

    distincti,e talents that we ,alue and nurture. ")( (ank is home to an e1clusi,e group of

    committed and dedicated indi,iduals who ;ointly$ with their dedication$ honesty$ inno,ation and

    teamwork$ contribute towards our collecti,e success. *ur organi9ation has a long and healthy

    tradition of pro,iding e1ceptional ser,ice and preser,ing strong relationships with both our

    internal and e1ternal customers. Therefore$ at ")( (ank$ we inspire e,ery indi,idual to play a

    significant role in our continued success by creating ma1imum economic ,alue for our clients

    and shareholders$ while maintaining the highest human ,alues and principles.

    ")( (ank is one of the leading financial ser,ices pro,iders in 4akistan and as one of the largest

    and oldest banking entities in the countryA we not only embrace and cherish our heritage and

    traditions$ we stri,e for growth and change as well. *ur goal is to create and promote long term

    relationships with our customers by catering to all their financial needs$ including traditional

    banking ser,ices$ insurance and in,estment ad,isory$ coupled with an e1ceptional le,el of

    customer ser,ice.

    *ur ob;ecti,e at ")( is to ensure that we ha,e moti,ated$ professional and customer/centric

    employees on board who help us deli,er the promise of being the Bmost credible bankB across the

    industry.

    )resident < C'O

    MCB Bank Limited

    &F

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    Mana6ement Le.el

    The organi9ation chart within a department and in different offices is as follows:

    i,isional Deads Dead *ffice

    egional Dead 30C48 egional *ffices

    7onal Dead 3C48 7onal *ffice

    (ranch "anager (ranch

    3C4$ C4$ -0 &$ E$ !8

    &>

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    Or6ani7ational Stru5ture o/ MCB

    s ")( is a banking company listed in stock e1change therefore it follows all the

    legalities which are imposed by concerned statutes "r. "uhammad "ansha is chairman L chief

    e1ecuti,e of the company with a team of &+ directors and & ,ice chairman to help in the business

    control and strategy making for the company.

    *perational "anagement of the bank is being handled by a team of &+ professionals. This team

    is also headed by "r. "uhammad "ansha. The different operational departments are )onsumer

    (anking L IT di,A 'inancial L Inter branch di,A (anking operations di,A D L %egal di,A

    financial control L udit di,A )redit management di,A )ommercial (anking di,A )orporate

    (anking di,A Treasury management L 'M -roup and lastly Special ssets "anagement 3S"8

    -roup.

    'or effecti,e handling of branches$ it has been categori9ed into three segments with different

    people handling each category. These categories are:

    a8 )orporate (anking

    b8 )ommercial (anking

    c8 )onsumer (anking

    E+

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    9uman Resour5e Fun5tions

    The human resources department 3D8 supporter the importance of the indi,idual while

    thinking strategically .D con,eniences the establishment of an atmosphere in which people

    ha,e the incomes to continuously grow in moti,ated for carry on impro,ement for the

    remunerations of all stakeholder.

    Situated as strategic business unit within the commercial structure of the ")( $the D $s has

    as its prime responsibility to gi,e to the organi9ations efficiency by attracti,e its people and line

    up the strategies and actions and system to the policy of the business .it is through this that the

    D adds ,alue to the institution.

    The human resources department 3D8 con,eniences and partner with its customers 3mcb staff8

    in applying the planned strategy through.

    )apability grounded D systems.

    4olicy and actions

    0,ol,ing abilities

    ppearance organi9ation

    )lear and e1posed statement

    emuneration and appreciation

    0mployee happiness

    Cariety

    greement

    E&

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    human resources outlet is to assurance the important ser,ices$ progresses and policies are in

    place to succeed employee to accomplish at their finest$ be safe and satisfied with their work and

    be properly de,eloped .human resources is also ,ital to settle that employees energy in an

    atmosphere which is in unity with the department2s ,alues$ the related legislati,e re6uirements

    and public ser,ice ,alues and best training

    Duman resources area office is liable for the administration of the human resources role for the

    department of human ser,ices .this entail of responsibility for human resources systems$ policy

    and training through the branch. The branch is planned to importance on planned human resource

    work$ the super,ision of departmental mangers and human resources staff in areas and di,isions

    Duman resources ha,e a number of areas of focus including:

    0mployee relation

    0mployee security

    "anagerial facilities

    rrangement and concert

    *rgani9ational capability

    *rgani9ation growth and maintenance

    The human resources branch managers a number of organi9ation/wide schemes through the

    department in the abo,e areas$ in association with human resources staff in area and programs.

    EE

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    The branch e,erything closely through manufacturing relation branch 3situated within financial

    and commercial facilities di,ision8 in e,ol,ing and applying enterprise negotiating agreements

    and issue resolution with mergers co,ering the department2s employees.

    E!

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    Stru5ture o/ the Marketin6 =epartment

    The marketing department of ")( bank is e1tremely coordinated. It is ,ery much organi9ed as

    appeared in the ,arious hierarchical chart. The marketing department is situated in head office. It

    is comprised of ,ery e1pert indi,iduals .it is blend of those indi,iduals who got ad,ancement

    from the deals 5hatBs more$ some are enlisted from the e1pert business sector of sa,ing money.

    Fun5tions o/ the Marketin6 =epartment

    4olicies are consistent and persistent due to unstable political -o,ernment and military

    inter,entions. 0,ery one or second year$ new or amended policies are in place. In such a highly

    unstable and unpredictable financial en,ironment$ the role and responsibility of marketing team

    become ,ery important.

    'ollowing are the functions of marketing team:

    &. 0,ery year$ there is a corporate ob;ecti,e of ")( bank. It is both strategically as well as

    financial. s per the ob;ecti,es set the marketing team de,elops or design marketing strategies to

    meet these commercial and strategic ob;ecti,es.

    2.The research conducted is anal!ed and used to de"elo# #roducts

    !. If there is a new situation as per the new need in financial sector the marketing team

    dds new line e1tension in the product or launches new products

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    =. New strategies are made increase the market share of consumer finance as well as commercial

    finance.

    @. New campaign on media$ net and on branch are designed

    ?. New broachers are designed printed and circulated in the branches

    F. s per the new situation due to the increasing interest rate$ ")( has also increased interest

    rate and its offerings on the sa,ing accounts.

    E=

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    )hapter E:

    Strate6i5 $nalysis o/ Company8

    Ma5ro $nalysis8

    )est $nalysis O.er.ie-8

    The 40ST analysis is a useful tool for understanding market growth or decline$ and as

    such the position$ potential and direction for a business. 40ST analysis is a business

    measurement tool. 40ST is an acronym for 4olitical$ 0conomic$ Social and Technological

    factors$ which are used to assess the market for a business or organi9ational unit.

    40ST analysis is a business measurement tool. 40ST is an acronym for 4olitical$ 0conomic$

    Social and Technological factors$ which are used to assess the market for a business or

    organi9ational unit.

    The 40ST analysis headings are a framework for re,iewing a situation$ and can also$ like S5*T

    analysis$ and 4orterBs 'i,e 'orces model$be used to re,iew a strategy or position$ direction of a

    company$ a marketing proposition$ or idea. )ompleting a 40ST analysis is ,ery simple$ and is a

    good sub;ect for workshop sessions. 40ST analysis also works well inbrainstormingmeetings.

    #se 40ST analysis for business and strategic planning$ marketing planning$ business and product

    de,elopment and research reports.

    40ST analysis is one of the ma;or tools that help in determining the e1ternal factor influence

    upon the optimum performance of organi9ation. 40ST combines following e1ternal factors that

    may ha,e effects on business performance$ whether e1ternally or internally. 40ST analysis

    categori9es following these points

    )olitical

    'conomical

    Social

    %echnological

    E@

    http://www.businessballs.com/swotanalysisfreetemplate.htmhttp://www.businessballs.com/swotanalysisfreetemplate.htmhttp://www.businessballs.com/portersfiveforcesofcompetition.htmhttp://www.businessballs.com/workshops.htmhttp://www.businessballs.com/brainstorming.htmhttp://www.businessballs.com/swotanalysisfreetemplate.htmhttp://www.businessballs.com/swotanalysisfreetemplate.htmhttp://www.businessballs.com/portersfiveforcesofcompetition.htmhttp://www.businessballs.com/workshops.htmhttp://www.businessballs.com/brainstorming.htm
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    E?

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    )oliti5al

    4olitical factors are basically to what degree the go,ernment inter,enes in the economy.

    Specifically$ political factors include areas such as ta1 policy$ labor law$ en,ironmental law$ trade

    restrictions$ tariffs$ and political stability. 4olitical factors may also include goods and ser,ices

    which the go,ernment wants to pro,ide or be pro,ided 3merit goods8 and those that the

    go,ernment does not want to be pro,ided 3demerit goods or merit bad8. 'urthermore$

    go,ernments ha,e great influence on the health$ education$ and infrastructure of a nation.

    %abor %aws

    )onsumer 4rotections %aws

    Ta1 egulations 0mployment %aws

    0n,ironmental %aws

    '5onomi5al

    0conomic factors include economic growth$ interest rates$ e1change rates and the

    inflation rate. These factors ha,e ma;or impacts on how businesses operate and make decisions.

    'or e1ample$ interest rates affect a firmBs cost of capital and therefore to what e1tent a business

    grows and e1pands. 01change rates affect the costs of e1porting goods and the supply and price

    of imported goods in an economy.

    There are certain factors that sum up o,erall economic scenario for a firm to operate in.

    0conomic policies

    'luctuations in e1change rates

    0ffects of 5orld 0conomies

    International (usinesses and Trade

    So5ial

    Social factors include the cultural aspects and include health consciousness$ population

    growth rate$ age distribution$ career attitudes and emphasis on safety. Trends in social factors

    EF

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    affect the demand for a companyBs products and how that company operates. 'or e1ample$ an

    aging population may imply a smaller and less/willing workforce 3thus increasing the cost of

    labor8. 'urthermore$ companies may change ,arious management strategies to adapt to these

    social trends 3such as recruiting older workers8.

    %e5hnolo6i5al

    Technological ad,ancements are approaching to the highest fre6uencies now a day. n

    organi9ation lacking in technological ad,ancement is highly ,ulnerable to threat of becoming an

    obsolete amongst modern manufacturing and business concerns.

    Technological ad,ancements can be further classified in to following categories

    Technological d,ancements

    %ife cycle of Technology

    Spending on technology

    Training and e,elopment

    E>

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    )est $nalysis o/ MCB

    Political

    4olitical instability within 4akistan can lead to changes in law and policies which can be

    in fa,or or against the banking sector.

    (anks are strongly affected by the political and legal considerations and this en,ironment

    composed regulatory agencies and go,ernment law that influence and limit ,arious organi9ations

    and indi,iduals. "ostly these laws create new opportunities for business.

    (usiness legislation has following main purpose.

    To protect the banking companies from unfair competition. To protect consumers from unfair business practices adopted by banking companies.

    To protect the interest of the society from unbridled business beha,ior.

    Economical

    0conomy of 4akistan is facing issues about employment$ inflation$ illiteracy$ which

    hinder business growth.

    So the banking market re6uires better consumer market in ,olume along with higher borrowing

    power. The a,ailable borrowing power depends on.

    Sa,ing rates

    )onsumption patrons

    ate of interest

    (udget deficit

    01change rates

    )ost of li,ing

    Inflation

    Social

    )ultural issues can be there but still as there are a number of multinational companies

    nearby$ therefore$ cultural issues are not prominent.

    !+

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    society is shaped by beliefs$ norms and ,alues. 4eoples in a society consciously and

    unconsciously interact with.

    Themsel,es

    *thers *rgani9ation

    Society

    Technological

    4eople are highly skilled and ")( can introduce new technology to increase

    competencies.

    'orces of technological ad,ancement ha,e played most dramatic role in shaping the li,es of the

    peoples. The rate of change of technology has greatly affected the rate of growth of economy.

    New technology is creating deep rooted affects which could be obser,ed in long run. The

    impro,ement techni6ues in,ol,ed in online banking. In brief 40ST analysis affects o,erall

    banking companies and pro,ides us the information about the e1ternal macro condition.

    !&

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    Mi5ro $nalysis8

    )orter Fi.e For5es Model

    1. Barriers to Entry:

    The ")( is pro,iding ,alue added ser,ices to its customers. *n the other hand market is getting

    more saturated and other organi9ations are getting in,ol,ed in the bank operations. 'or e1ample$

    Telenor is offering 0asy 4aisa$ etc. t the beginning all the functions like money e1change$

    currency con,erter$ '*0M$ money transfer$ etc were relates to bank but now a day other

    organi9ations are becoming more speciali9ed in these and hence resulted in declining of profit

    3commission income or ser,ice charges8.

    2. Bargaining Power of Supplier:

    (ecause of concentrated competition and new entrance of foreign banks in the industry the

    in,estors are becoming more conscious in pro,iding the funds for deposits. The funds are

    dispersed among the banks because e,ery bank in the industry wants to capture these funds

    3from potential in,estors8 hence to increase its market share and to generate more and more

    profit. It is the fact that supplier2s funds are more critical to market success. ue to which the

    bargaining power of supplier has been increased.

    'inancial statements of ")( re,eal that deposits with the bank are decreased from F!K to ?>K

    during the last se,en years.

    3. Bargaining Power of Customers:

    )ustomers can be powerful when the switching cost is ,ery low and in the banking sector the

    customer2s needs includes fa,orable profit on in,estment and getting banking ser,ices with low

    cost. ll the banks in 4akistan are competing for healthy market share so they are trying to

    pro,ide the better ser,ices from other banks by gi,ing more incenti,es on their ser,ices as a

    !E

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    result of which the bargaining power of customers has been increased. Dence the ")( is facing

    great difficulty in sustaining his competiti,e position in the market and this is done by pro,iding

    more are more ,alue added ser,ices to its customers.

    . !"aila#ility of Su#stitute Pro$uct:

    Substitute products are also a,ailable in the market like "obi)ash ser,ices by "obilink -S"$

    0asy 4aisa by Telenor 4akistan both are used for transfer of money between two customers.

    There is also an e1ample of 4ay4al$ lert 4ay$ etc are best alternati,es for the transferring of

    money all across the globe with minimum charges or ser,ice fee. ll these substitute products

    are creating a big hurdle in earning commission and generating re,enue for the bank.

    %. &i"alry among the Competitors:

    The intensity of competition in an industry depends upon bulk of factors such as number of

    competitors$ the presence of e1it barriers$ degree of product differentiation and growth rate.

    Taking only one factor in due consideration the degree of product differentiation it can be seen

    that all the banks are pro,iding same kind of ser,ices but with different names. It means that the

    degree of differentiation for the products is near to 9ero and it is fact that when the degree of

    product differentiation is less the competition is high because customer2s switching cost

    eliminates. 'or e1ample$ N(4$ #(%$ Summit (ank$ (* etc are offering the ser,ices for

    transfer of money with the help of Mpress "oney. nd some other banks like (ank l/Dabib$

    (ank lflah etc are using "oney -ram for the same acti,ity.

    !!

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    SO% $nalysis

    S5*T analysis is a key measurement tool that helps in determining key factors$ which

    can make a difference between success and failure of a business concern.

    Theoretically S5*T analysis may be defined in the following ways$

    '! S()T analysis *Strengths+ (ea,nesses+ )pportunities+ an$ Threats- is a strategic

    planning tool+ useful for planning an$ $ecisionma,ing at multiple le"els within an

    institution+ organi/ation or #usiness.0

    S5*T analysis within an organi9ation can be carried out on a single product$ place or on the

    whole industry. The main purpose of the S5*T analysis of an organi9ation is to de,elop the

    understanding regarding internal and e1ternal factors$ whether these factors fits best with the

    core competencies of the organi9ation or not.

    Fi6ure 1 SO%

    !

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    Stren6ths >Internal?

    The ma;or distinguishing factors$ that gi,es competiti,e edge o,er the others.

    4olitical support

    'unding a,ailable

    "arket e1perience

    Strong leadership

    eakness >Internal?

    The ma;or factors that can lead towards diminishing performance of an organi9ation$

    5ith respect to other enterprises.

    4ro;ect is ,ery comple1

    %ikely to be costly

    "ay ha,e en,ironmental impact

    Staff resources are already stretched

    Opportunity >':ternal?

    ll the possible e,ents$ which may go in the fa,ors of organi9ation.

    4ro;ect may impro,e local economy

    5ill impro,e safety

    4ro;ect will boost companyBs public image

    !=

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    %hreats >':ternal?

    ll such contributing factors$ that ultimately leads to reduced performance.

    0n,ironmental constraints

    Time delays

    *pposition to change

    !@

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    =etermination o/ 'lements o/ SO%

    The first step towards S5*T analysis is to determine key elements of each sub part of

    S5*T analysis. This means$ all the possible sum of Strengths$ 5eaknesses$ *pportunity and

    Threats$ which an organi9ation possess are to be determined.

    Strengths

    The main strength of the bank lies in its ser,ices. The other fact that contributes is

    approaching to each segment of society .another positi,e concern that becomes the strength of

    the bank is its inno,ation some others are as follows

    (ank reputation Technical management skills

    )ustomer satisfaction

    4romotion effecti,eness

    Team based approach

    Guest for 6uality

    0mployee respect and dignity

    %arge network of branches

    (ea,nesses

    ")( has some weakness within the organi9ation which is discuss under as follows.

    %ess producti,ity from staff

    *,erburdened staff

    %ate sitting trend

    %ack of organi9ation de,otion

    ttitude of seniors towards to ;uniors

    %ack of leadership 6ualities

    )pportunities

    ")( bank may impro,e its upee Tra,ellers )he6ues 3T)s8 sales by through for new

    market positions. It can familiari9e debt card system or may adapt the current T" cards into a

    whole debt card. Douse financing sector can be targeted to ma1imi9e the profit.

    !?

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    ")( bank enter into contract with other banks to use each other $s T"s which will result in an

    increased accessibility to ")( customers and customers of other banks as well as all around the

    world settlements money are strictly obser,ed so as the money paid may not fall in hands of thus

    termed e1tremists for that all predictable money filtering done D#NI0S ha,e been still there is

    an opportunity for ")( to spread its branch network to se,eral countries highlighting mostly on

    introducing electronic fund transfer ser,ices.

    ifferent banking courses can be offered for impro,ing of banking staff.

    "anagement skills

    #pdate courses

    'oreign training

    IT courses

    Threats

    0,ery organi9ation has threats from internally and e1ternally and ")( also ha,e some

    kind of threats.

    )ompetitions are increasing day by day

    Increasing interest rates

    Instability of go,ernment policies

    0ntrance of foreign banks in local market

    5eak economic condition of 4akistan

    #nregistered business concern

    !F

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    !>

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    SO% $nalysis @uadrant Combination >SO% Matri:?

    Stren6ths AS

    (ank reputation

    Technical

    management skills

    )ustomer

    satisfaction

    4romotion

    effecti,eness

    Team based

    approach

    Guest for 6uality

    0mployee respect

    and dignity

    %arge network of

    branches

    eaknesses A (

    %ess producti,ity

    from staff

    *,erburdened staff

    %ate sitting trend

    %ack of organi9ation

    de,otion

    ttitude of seniors

    towards ;uniors

    %ack of leadership

    6ualities

    Opportunities A )

    "anagement skills

    #pdate courses

    'oreign training

    IT courses

    S) Strate6ies

    ")( should train

    their team by latest

    management skills.

    They should send

    their employees for

    foreign training

    and demos.

    ")( should start a

    program for IT

    () Strate6ies

    %ess producti,e staff

    can be trained and

    become effecti,e

    staff.

    %eadership 6ualities

    can be de,eloped by

    foreign trainings.

    *,erburdening and

    late sitting trend can

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    courses for all

    employees.

    be changed by

    management skills to

    upper le,el

    management.

    %hreats A T

    )ompetitions are

    increasing day by day

    Increasing interest rates

    Instability of

    go,ernment policies

    0ntrance of foreign

    banks in local market

    5eak economic

    condition of 4akistan

    #nregistered business

    concern

    ST Strate6ies

    )ustomer

    satisfaction and

    team based

    approach can

    minimi9e the fear

    of competitors.

    %arge network of

    branches and

    skilled management

    can cater the 5eak

    economy and

    instability threat.

    (ank reputation

    and customer

    satisfaction can

    attract more

    customers which

    (T Strate6ies

    ather than late

    shifts$ management

    should introduce two

    shifts for employee

    satisfaction and to

    minimi9e the threat

    of competitors.

    (y train the upper

    le,el management

    their attitude can be

    changed towards

    ;uniors which can

    help them caters the

    threats collecti,ely.

    ")( should raise the

    salary packages for

    the middle le,el and

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    Industry $nalysis

    ':ternal Fa5tor '.aluation >'F'? Matri:

    01ternal 'actor 0,aluation 30'08 matri1 method is a strategic/management tool often

    used for assessment of current business conditions. The 0'0 matri1 is a good tool to ,isuali9e

    and prioriti9e the opportunities and threats that a business is facing.

    01ternal factors assessed in the 0'0 matri1 are the ones that are sub;ected to the will of social$

    economic$ political$ legal$ and other e1ternal forces.

    *pportunities

    ll e,ents that may be go in fa,our of the organi9ation.

    Threats

    ll e,ents which would be lea,e negati,e impact on organi9ation.

    0'0 ")(

    ey 01ternal 'actors 5eight ating 5td

    Score

    Opportunities

    &. -o,ts help to up lift economy +.&= ! +.!+

    E. i,ersification towards Islamic banking +.&= ! +.!+

    !. "icro 'inancing for 'armers +.+= ! +.&=

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    &. (anking acti,ities influenced by 4olitics +.&= E +.!+

    E. 0nergy crisis hits the industry performance

    badly

    +.+= & +.+=

    !. Inflation ates +.&+ E +.E+

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    Competiti.e )ro/ile Matri:8

    $BL MCB

    CSFs >5ontd? t Ratin

    6

    td

    S5ore

    Ratin

    6

    td

    S5ore

    Finan5ial

    )osition

    +.&

    =

    < +.@+ < +.@+

    Ser.i5e

    @uality

    +.&

    +

    ! +.!+ < +.

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    Internal Fa5tor '.aluation Matri:

    Internal 'actor 0,aluation 3I'08 matri1 is a strategic management tool for auditing or

    e,aluating ma;or strengths and weaknesses in functional areas of a business.

    The I'0 "atri1 together with the 0'0 matri1is a strategy/formulation tool that can be utili9ed to

    e,aluate how a company is performing in regards to identified internal strengths and

    weaknesses of a company. The I'0 matri1 method conceptually relates to the (alanced

    Scorecardmethod in some aspects.

    IF' A MCB+ey Internal Fa5tors ei6ht Ratin6 td

    S5ore

    Stren6ths

    &. %arge online (ranches Network +.&+ ! +.!+

    E. %arge T" network +.&= ! +.

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    E. %imiyed co,erage of rural areas +.&= E +.!+

    !. Digh Non/performing %oans +.+= E +.&+

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    S)$C' Matri:8

    Internal Strate6i5 )osition ':ternal Strate6i5 )osition

    Competiti.e $d.anta6e >C$? Industry Stren6th >IS?

    "arket Share /E

    *nline networksHT"s /&

    Technological nowledge /&

    )ustomer Ser,ice /E

    )ustomer %oyalty /!

    ,erage: /&.F

    -rowth 4otential 'S?

    eturn on sset =

    %e,erageHebt billion as at ecember !&$ E++> to s. >!= billion as atecember !&$ E+&

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    of holding the highest )S base$ supporting its lower cost of deposits. The (ank has been

    strategically tapering off its high cost deposit. .The )S base has more than doubled in last @

    years$ increasing from s. !+= billion in E++> to s. @E@ billion in E+&from in,estments has increased to @&.>&K 3E++>: E@.>K8.

    O The regulatory re,isions co,ering minimum deposit rate during the commentary period

    has ad,ersely affected the (ank2s net interest margin. The said impact was diluted by impro,ing

    the )S base o,er period taking it to an all time high of >&K as at ecember !&$ E+&

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    O The fee$ commission and brokerage block of the (ank has been constantly increasing

    o,er the years with ma;or contributions coming from commission earned on card business$

    bancassurance business$ remittances and intercity H intra/city cash transfers.

    O The e6uity in,estment base of the (ank has been pro,iding outstanding di,idend yields

    with di,idend income and capital gain pro,ing to be the second highest contributor to

    nonmarkup income. uring the past @ years$ appro1imately s. ? billion has been earned by way

    of )apital -ains.

    Operatin6 ':penses

    O *wing to the strengthened risk management framework$ the pro,ision charge of the

    (ank has been on a declining trend o,er years. The pro,ision and write/off charge was reported

    at s. ?. which was reduced substantially to s. E>&" for the year

    E+&E. 'or the year E+&! L E+& billion and

    s. &.< billion respecti,ely based on the reco,eries posted classified ad,ances. It is pertinent to

    add that the (ank carries an unencumbered general pro,ision of around +.&K of gross ad,ances

    and has not taken the benefit of 'SC in pro,ision calculation for the year E+&

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    Compariti.e $nalysis8

    Fi6ure ; Comparati.e $nalysis o/ Balan5e Sheet

    =@

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    Fi6ure # Comparati.e $nalysis o/ )ro/it and Loss

    =?

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    9ori7ontal $nalysis =es5ription8

    sset base of the bank has increased considerably o,er the past @ yearsA highest increase was

    obser,ed in E+&E where assets increased by &?K$ mainly contributed by in,estments in terms of

    ,olume. *n an annuali9ed basis$ the asset base has recorded an increase of &!K o,er the last si1

    years. Dighest increase in in,estment base was reported in E+&& of K$ followed by E?K

    increase reported for E+&E.

    The deposit base of the (ank has increased considerably o,er the years growing from s. !@F

    billion in E++> to s. @FF billion in E+&< translating into an annual growth of &!K o,er past @

    years. 06uity of the bank has also posted healthy increase due to higher profitability in past @

    years$ translating into &

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    %rend $nalysis8

    Fi6ure H %otal $ssets %rend $nalysis

    Fi6ure J %otal =eposits %rend $nalysis

    @+

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    Fi6ure In.estments %rend $nalysis

    Fi6ure Gross $d.an5es %rend $nalysis

    @&

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    Fi6ure 10 Fund Based In5ome %rend $nalysis

    Fi6ure 11 Non Markup In5ome %rend $nalysis

    @E

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    Fi6ure 1! )ro/it a/ter %a: %rend $nalysis

    Fi6ure 1 )ro/it Be/ore %a: %rend $nalysis

    @!

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    )hapter !:

    Re5ommendations8

    0fficient cost/control procedures may limit the growth of operating e1penses leading to

    higher operating profit margin. (anks poorly managed their operating e1penses. 'urther

    impro,ement may be necessary to enhance *0 de,elopment.

    The bank should emphasis on the organi9ation of effecti,e training and de,elopment

    programs for its new as well as e1isting employees so that these are gradually updated

    regarding the recent de,elopments in the field of banking.

    In griculture loan Sector$ ")( mainly ser,ing in 4un;ab pro,ince. griculture loans

    facility should be pro,ided to all other pro,inces of 4akistan as well.

    ")( should pro,ide greater facilities to its employees$ and gi,e them bonuses for their

    hard work and 4romotions as well. There is a criticism on the banking management that

    the salaries of the employees are decreasing in e,ery succeeding year. nd I think this

    will shake the confidence and working habit of the employees

    The bank should keep on filling the gap between customer and the bank through

    consumer friendly attitude and efficient ser,ices. They should work on building

    relationship with the customers.

    0mployees inside the branches should change their attitude toward the customer. It has

    been obser,ed that customer do not get the same warm welcome and importance that he

    wants and he is been pro,ided by other emerging banks. They should start thinking about

    changing their attitude from now.

    'oreign branches should be opened in order to capture the international market and to

    earn international repute for the bank.

    %ending focus must be on pri,ate sector instead of public sector.

    S"0 sector must be gi,en priority in all financial matters.

    Institutionali9ation of Duman esource "anagement 3best man should be posted to best

    assignment$ refreshing courses$ seminar on emerging banking and customer ser,ices.

    @

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    esearch and e,elopment facilities 3omestic market research$ economic analysis$

    strategic insight of ma;or economic and financial accords$ international markets

    knowledge$ rigorous planning and de,elopment$ loss L pre,ention mechanism8

    There should be central compliant cell in ")( in order to reduce people complaints and

    foster the ratios of producti,ity.

    Scope of In,estment (anking is ,ery much high now in economy. )oncrete efforts

    should be made to initiate in,estment/banking operations.

    @=

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    Internship $5ti.ities

    $% Auto&s Pa O'(% Auto&s Partial Pa o'

    )% PG Pa O'*% PG Partial Pa o'+% P, Pa o'-% P, Partial Pa o'.% Re#a/ent Schedule o0 Car * U1% Dis2ursal ,etter OF Car * U3% Re#a/ent Schedule o0 P,$4%Dis2ursal ,etter OF P,$$%Fresh Insurance Polic$(%Insurance Rene5al$)%Insurance Re0und$*%Co/#laints$+%Ser"ice Related$-%Sta' Related$.%Insurance Co% Related$1%Collateral Docu/ents$3%NOC(4%E6cise 7le($%Authorit ,etter((%Handed O"er Instru/ents 8P ,9()%:isc Acti"ites(*%Auto&s Pa o' Procedure(+%Auto&s Partial Pa o' Procedure(-%PG Pa O' Procedure(.%PG Partial Pa o' Procedure(1%P, Pa o' Procedure(3%P, Partial Pa o' Procedure)4%Install/ent Re0und)$%Insurance Clai/ Che;ue 8The0tistration =oo?)1%Du#licate S#are @e)3%Pa order Deli"er Status*4%Personal ,oan Case status*$%O#enin> o0 Ne5 ISI Ae*)%Collateral Docu/ents re/inders collections**%Insurance Rene5al /ent o0 Docu/ents o0 PG*-%,ist o0 docu/ent < le>al docu/ents o0 PG

    @@

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    *.%ron> Deductions < ron> :a##in> a0ter Paid o'*1%Re"ised Schedule not recei"ed*3%A##lication Status+$%A1(%:NTD =loc? Re/o"al1)%Credit Card Clearance ,etter< NOC1*%Credit Card Related Co/#laints1+%Insurance Related Co/#laints1-%Acti"ation < Deacti"ation o0 S:S < Insurance1.%Acti"ation < Deacti"ation o0 Auto De2it 0acilit

    @?

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    Con5lusion8

    The banking system and particularly ")( as a whole$ remains healthy despite the economy

    going through a period of economic difficulty. ")( absorbed the build/up of non/performing

    loans in the system while maintaining profitability and robust balance sheets. "uch of the credit

    for this must go to the S(4 for the policies it has pursued o,er the last decade to ensure that

    banks are ade6uately capitali9ed and adhere to prudent risk management.

    The ob;ecti,es were targeted towards customers$ impro,ed management policies$ strong policy

    framework$ impro,ed go,ernance structure$ strategic in,estment initiati,es and implementation

    of cost effecti,e measure across bank. The group structure of the bank indi,idually worked hard

    in achie,ing the milestones under continuous monitoring and super,ision of the senior

    management and (oard.

    The bank displayed e1traordinary results in both financial and non/financial terms. 5ith the

    banking industry reco,ering at a steady pace since the E++? crisis$ ")( ensured a,ailing all

    possible positi,e opportunities and deli,ered substantial profits ensuring sound asset growth

    'inancial year E++> ")( stood up to the challenges and produced significant increases in ma;or

    areas of its business while maintaining higher profitability$ stronger asset base with

    corresponding increase in e6uity. The sector also made positi,e reco,eries while heading towards

    its actual position prior to E++? and E++F financial market crisis.

    I found out that this a good bank as its working$ management is concerned. 'irst of all

    the reason is that there is no directi,e style in the management of ")( and which shows that

    there is decentrali9ation in the (ank and e,ery branch manager can take decision according to

    the situation.

    @F

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    ")( is pro,iding their customers with wide range of ser,ices including online banking$ ,irtual

    banking and some of their new products in the pipelineA include T" network etc. shows that

    ")( (ank is taking good care of their customers. ")( (ank made hea,y in,estments$ towards

    enhancing its capabilities in the area of automation and technology. ")( is well positioned to

    meet client needs$ with impro,ed competiti,e ad,antage.

    'rom the financial statement analysis and its comparison with other banks I found that it is

    somewhat better than others$ and from the analysis of pre,ious year I concluded that it is

    impro,ing and it is earning more profits as compare than the pre,ious year. So I can say that

    ")( (ank is performing ,ery well.