Internship Report on MCB Kuthery Chowk Gujrat

MCB was incorporated in 1997 and was subsequently privatized by the Government of Pakistan. The Nishat Group bought the mainstream shares of the bank and so got the rights to handle the banks operations. In view of the fact that the privatization of the bank, MCB has execute different policies to make it one of the most excellent banks of Pakistan, which incorporated introducing innovative products and services and enlarge its operations by opening new twigs in Pakistan. I did my six weeks internship at MCB Kuthery chowk Gujrat, and worked in account opening department, operations department, accounts department, Remmittance, Customer Service department. A number of the work that I did in these departments incorporated collecting cheques, filling account opening forms, activity checking and stop payments and closing of accounts. Even though there were no such huge dilemmas found in the working of MCB, there were some difficulties in schooling of the workers, encouragement methods and invention improvement. Some of the suggestions contain seminars for workers, employment alternation, and group's occupation to find modern goods and erudition curriculums for workers. Lastly MCB has seen a rapid growth in its activities by introducing a range of products and services and showing its presence in the country by opening new branches and in future should keep this momentum and always strive to become the best.

Chapter # 1 Introduction

Introduction

Chapter 1 is about introduction of report which is a part of requirement of my course BBA, degree 6 weeks internship is compulsory for students. The chapter is a concise statement of the internship organization, purpose, scope objectives and background of the study. It also includes a small introduction of organization.

Background of the study

Internship program during Bachelors in Business Administration is required for all the students as per HEC requirement. It is necessary for me to complete an internship program of about 6 weeks in any service or manufacturing industry relevant to my specialization and area of interest. So, I choose the banking sector because I have interest in this sector because my study is also related with this sector.

Purpose of the study

The internship agenda helps me to acquire practical incident in my ground of study. Ideally, internship facilitate me to utilize my knowledge and abilities get from the classroom, determine where further competence is required, renovate the bookish information into realistic life, and become better up to date with the types of work settings in which such competence can be useful and chance to choose the best way for upcoming time.

Scope

This study will assist to me about the working of Banking sector of Pakistan because the majority of our teachers during their lectures use the examples of Banks like MCB, National Bank, UBL, Bank Alfalfa and many others, Students should study about the performance of such Banks. It will help full for me in future.

Objectives

I worked as an internee in MCB. The main objectives to study in MCB were to examine the finance system of the bank, to know how bank maintain the financial system of country, to appreciate the management system of the bank which consist of knowledgeable experts of the bank and to deal with the circumstances of pressure.

Chapter # 2 Overview of the organization

Brief history

MCB Bank Limited formerly known as Muslim Commercial Bank Limited MCB Bank is not an overnight success story. It was integrated with the Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited company. The bank was establish with a vision to supply banking services to the public of the South Asia Subsequent to the division of the Indo-Pak subcontinent, the bank stirred to Dhaka from where it commenced production in August 1948. In 1956, the bank moved its registered workplace to Karachi, Where the cranium office is currently located. Therefore, the bank takes over a 59 years inheritance of trust of its clients and the civilians of Pakistan.

NATIONALIZATION

In January 1974, the Government of Pakistan state-owned MCB following the Banks Act 1974 of nationalization. MCB was neither the single bank which was publicly owned exclusively as neither it nor any other bank being merged with it due to its reliable and firm policies and its sound situation.

PRIVATIZATION

A gesture of trade and industry modifications swept Pakistan in the lattes introducing the need for privatization of state owned banks and organizations. This was the earliest bank to be privatized in 1991. The bank was purchased by a syndicate of Pakistani company groups led by Nishat Group.Nishat Group is one of the primary and mainly diversified trade groups in Pakistan. The group has well-built presence in the most significant production sectors of the country such as banking, cement, textile and insurance. The Chairman of the group (and also MCB) is Mian Mohammad Mansha and he has played influential position in its achievement and Government of Pakistan has conferred him with one of the most impressive national awards of the country named "Sitara-e-Imtiaz."

Nature of the organization

Muslim Commercial Bank is a financial institution where people can deposit their money. Muslim commercial Banks provide a system for easily transferring money from one person or business to another. By using many services that they recommend saves us an implausible amount of time and ensure us that our saving are given to a save hand. VISION: "being the leading financial services provider, partnering with our customers for a more prosperous and secure future." MISSION: "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 has developed well-built connections with its clients by considering their requirements and treating them with respect, self-respect and importance. The motivating strength behind its obligation and services is its spotlight on clients ensuring that it not only assembles, but also go beyond their prospect. They struggle to accomplish distinction by ensuring that every split second of their time is exhausted in adding value, making clear in your mind that they do things accurate, earliest time, and every time. Through the mission of quality MCB has always taken initiatives bringing banking into a new ground, from cash to the expediency of synthetic, from local office banking to internet banking and from face to face purchaser communication to online convenience. MCB nowadays focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate customers include public sector companies as well as great local and international concerns. MCB is also catering to the rising middle class by providing latest asset and liability products. Muslim Commercial Bank Limited has a solid establishment of over 63 years in Pakistan, the Bank offers full day 24 hours banking convenience with a system of more than 1000 branches and the biggest ATM network in Pakistan more than 450 ATM locations in the marketplace.

2.2 Success stories and rewards during last 5 years

The initial period of 2005 was very beneficial for MCB, because the bank has accomplished 4.2 billion of per tax profit, evaluated for the same time period with Rs. 2.2 billion. Profit after tax has more than doubled compared to the matching period for 2004 and go above Rs. 3 billion which was the highest profit in the history of Muslim commercial bank. This interprets into receiving Rs. 7.43 per share. Advance and deposit increased to Rs. 156 billion and Rs. 241 billion reflecting a growth of 14% and 10% respectively. In addition the bank's assets extended by 16% throughout the half year ended 2005 and crossed 300 billion Rs marks. Bank's capital and reserves enlarged as a result of 41% throughout the semi year, which was due to the issue of right shares and maintained earnings. Raise in equity would develop the limit of lending and would supply the opportunity for noteworthy growth of the bank's balance sheet. This would also facilitate to meet the capital obligation below Basel Accord II, which will be valuable from 2007.

Awards

Muslim commercial bank has a wonderful list of awards during the last 5 years. In 2005, 2006 and 2008 Muslim commercial bank get award of "Best Bank in Pakistan" from Euromoney than in 2005, 2006, 2008 and 2009 mcb get the award of "Best Domestic Bank in Pakistan" from Asiamoney. Again in 2008 Euromoney give the award of "Best Bank in Asia" to mcb and after this in 2009 mcb got the "Best Domestic Bank in Pakistan" award from The Asset. The Asian Banker for being Pakistan's best-performing financial institution gives the award of "The Strongest Bank" in 2010 to Muslim commercial bank.

Product/services line

Mcb provides a large scale product line to their customers for achieving the international standard of banking. There are a number of products and services like MCB FULL DAY BANKING: Mcb provides full day banking services to the customers and they can enjoy the all banking facilities in every day of week even on Saturday. ONLINE: In our daily life we are easily buying the products and services online so in banking sector mcb is also provide the online bank facilities to the customer and have 315 online branches which provide 24*7 online services. MCB SPECIAL RUPEE TERM DEPOSIT: This facility provides a large range of choices to the customer that they can open more than one term deposit accounts that suite them for their current and long term needs. 365: This is a deposit account for mcb customers which offers a good profit on daily basis and also provide the capability of decisive withdrawals. MCB LOCKERS: Mcb provides the facility of lockers for the protection of customer's expensive and valuables. MCB REMIT EXPRESS: Customers can also enjoy the facility of international remittances capability within 24 to 72 hours. MCB ISLAMIC BANKING: Mcb provides the banking facilities according to the Islamic point of view and shariah. MCB CARDS: A restricted position of sale acquiring association facilitating recognition of all main card brands. MESTRO: This facility is giving to the MCB smart card and ATM card holders and only they can enjoy this facility. CIRRUS: This is a cash withdrawal facility which is only provided to the MCB smart card and ATM card holders. They can withdraw money at more than 900000 ATMs in the whole world. MCB MOBILE BANKING: Now you can enjoy the banking facility through your mobile phones in any time. Mcb provides the information about you account and mini statements through mobile banking. MCB VIRTUAL INTERNET BANKING: This facility allows the customers to access the banking services in any time. You can get the services in 24 hours of a day, days a week and a year. MCB CALL CENTRE: This call centre is working for the customer's problems which the face in the services they only call and get the solution of their problems, information about banking services like ATM cards and other products of MCB. MCB ATM 24-HOURS CASH: Mcb provides the largest ATM networks of the nation with more than 450 ATMs services to the customers. MCB SMART CARDS: Mcb smart card is the way to get the banking services like withdraw cash, pay utility and mobile bills and lots of more and more. CORPORATE FINANCING: MCB Corporate Financing offers right to use diversified financing alternatives which includes working capital loans as well as term loans, trade finance services and investment banking. MCB EASY BILL PAY: Mcb smart card and ATM card holders can avail this facility and easily pay their utility and mobile bills through these cards. This is a very good solution to pay the bills. MNET: It is an electronic inter-bank display place for online dealings on ATM and other isolated banking conduits. Members consist of 10 local and overseas financial foundations enjoying ATM division and Value Added Services. MCB CAR 4 U: This is a auto finance loan which is very good for those people who wants to buy a car because it is affordable for all. MCB PYARA GHAR: Mcb provide this home finance facility to the customers that they can easily purchase and construct their home and for this purpose MCB provide more than 20 million to the customer. MCB RUPEE TRAVELLERS CHEQUE: Mcb is the market leader of rupee traveler's cheque. This cheque provides a safe way to transfer money from one place to another. SAVING ACCOUNT: Mcb provides a large number of saving accounts for customers to save their money for short term and give good profit on it. CURRENT ACCOUNT: A large number of current accounts are offering to the customers by mcb and also give extra facilities on that accounts like online transaction, demand draft and pay order etc. Mcb offering many more products in market like salary club, project loans, investment services, sms banking etc.

PESTL Analysis

There are many factors which influence the organization's performance and customer's profile. It is very important to identify these factors that influence buyer and the size of market overtime, so we can improve the performance of the organization. PESTL analysis is the best way to identify these factors because it includes Political and factors Economic factors Social factors Technological factors Legal factors

POLITICAL FACTORS

Political environment have a great influence on banking sector. Political unsteadiness within Pakistan can direct to changes in law and policies which can be in support or alongside the banking sector.

ECONOMIC FACTORS

Economic factors like inflation, per capital income, saving trends, exchange rates, budget deficit, rate of interest and cost of living are effect the borrowing power of the general public and we know that the banking sector requires a good customer markets with good borrowing power of the customers. Pakistan's economy facing all these problems that is why banking sector face many problems regarding business growth.

SOCIAL FACTORS

Social factors are also play an important role in the banking sector because every society is made by some values and norms and cultural issues and present in every society. These issues are also prevailing in the Pakistani society but as there are a number of multinational companies worked in it so that these issues are not well-known.

TECHNOLOGICAL FACTORS

Technology is a big challenge for every business sector because the growth of economy is greatly affected by the technology changes. In Pakistan every business sector introduces new technology and increases its profit and sales that is why MCB also introduce new and innovative technologies for competition.

LEGAL FACTORS

Legal factors are the combination of government laws and regulatory agencies that effect the organizations and individuals. These laws are mostly creating the chances of new opportunities for the organizations. Laws and regulatory agencies are made for some purpose like to protect the customers from unfair condition created by the banking sector and also play an important part in the protection of banking sector by unlawful competition.

Contribution of MCB towards economic development

Muslim commercial banks play a significant part in economic growth of Pakistan. Economic development involves speculation in different sectors of economy. The banks gather money from the public and assemble saving for speculation in developed task. The investors scrounge from banks to sponsorship the projects. Support the expansion rate during the reorientation of loan strategy. Unique resources are provided to the investors for the achievement of projects. The banks offer a certification for industrialized loan from worldwide agencies. The overseas resources stream to developing countries for speculation in projects. In addition regular banking the banks complete bureau services for the consumer. The banks purchase and sale securities and build rent payments, accept payment money and gather service bills for the Government departments. Therefore these banks keep time and power of full of activity working class. Banks assemble foreign exchange for the business deal with other countries. The capability of foreign exchange account has resulted in an augment of overseas barter assets. Through aperture a memo of recognition the banks encourage overseas deal. Banks are not merely collecting finances except for also provide like a steer to the client speculation of their money and the strategy of banks is a tool in spacious dispersion of glory in country

Chapter # 3 Organizational Structure

Organizational Hierarchy Chart

(Chairman) (Board of Directors) (Chief Executive / supervisor) (Senior vice Executive President) (Vice Executive President) (Senior vice President) (Vice President) (Assistant vice President) (OG-1) (OG-2)(OG-3) (Clerical Staff) (Non clerical Staff)

Number of Employees

Mcb provides employment opportunities to those people who are interested in banking sector according to a source of mcb total number of employees in Pakistan is about 15000. Every branch consists of at least 13 staff member one branch manager, one customer service officer, one credit manager, one general banking officer, one cashier, one cash officer, one system administrator, two gun men and two peons.

Main Offices of MCB

The head office of Muslim commercial bank is located in Karachi on Chundrigar road Mcb tower, I.I and branch office is Defence Housing Authority branch Karachi. In Punjab regional office is located in main gulberg market Lahore and branch office is in waheed palaza Lahore cantt and other one is in Garhi shahu, 86, Allama iqbal road Lahore. Another regional office is located in main Civic centre, G-6, Islamabad and another is in Peshawar.

Introduction of all Departments

In all the branches of Muslim commercial bank there are 4 main departments Deposit department Cash department Credit and Advance department Foreign exchange department

Deposit department

Bank makes transactions in money and they are simply mobilizing finances inside the financial system of the country. They lend money from one individual and give loan to another, the dissimilarity among the rate of borrowing lending shapes their spread or gross income. Consequently we can exactly shape that deposits are same like the blood of the bank which sources the dead body of an organization to get to effort and these deposits are legal responsibility of the bank so according to the bank's point of view we can submit to them like liabilities. The whole deposits of MCB are rising from the time of its launch but after the period of privatization there is a pointed decline in general deposits of the bank. It is a fact that boost in deposits is also a reason of boost on total amount of accounts so the bank has progressed in equal aspects. Generally deposits can be separated on two bases, one is the period in which their finances are projected to be with the bank and second is the rate of receiving these finances. Deposits are divided into two categories according to period of deposits Time deposits or liabilities Demand deposits or liabilities All banks have different types of deposit systems in order to encourage deposits. These systems are a combination of the above two kinds of deposits with a calculation of different services & obligations like lowest amount of balance' condition, form of operation, source for computation of profit, subtractions, extra advantages, eligibility for different sets of group. That is why MCB has a great diversity of deposit proposals. Some of these are as follow Current account PLS saving bank account Monthly khushali scheme Hajj mubarik scheme Khanaum bachat scheme PLS 365 saving accounts These are the different types of deposits this department also handles the account opening activities and clearing departments activities. Each banker take actions together as a paying as well as a collecting banker, It is on the other hand an significant job of crossed cheques. A great part of this work is approved through the clearing house of bankers. Clearing house is a place where delegate of all banks of the city get together and resolve the acceptances and payment of cheques drained on each other.

Cash Department

Cash department deals with maintenance of these books Paying cash book Token book Scroll book Receiving cash book Cash balance book While cash is received in counter of the bank, it is recorded in the Scroll Book and Receiving Cashier Book and at the end of the day; these are matched and balanced with each other. While the cheque or any other transferable tool is presented at counter of the bank for payment, it is recorded in the token book and token is issued to the client then token clerk and the teller make entries in the paying book and payment is made to payee. At the end of the working day, the Token Book and Paying Cashier Book amount are balanced. The joined figure of receipt and payment of cash is recorded in the cash balance book and drawn closing balance of cash. Opening Balance (add) Receipts (less) Payments = final / closing Balance. This is very significant section because cash is the mainly liquid asset and most of the time frauds are made in this section, consequently, additional care is taken in this section and no one is allowed to go into or depart the area liberally. Typically, cash area is grilled and its door is under management of the chief of that department. Every books maintained in this section are checked by an administrator.

Credit and Advance

Credit and advance department approves the different type of loans for different businesses and also for customer's personal use like Loans OD (overdraft) Cash credits For approving the loans form departments it is necessary to give something as collateral such as property and other types of asset. Collateral must be equal or more than the amount of loans which are given by the department. In case of giving loans every branch has a fixed limit and if the amount of loan is under the limit of the branch then it is easily approved by the bank but if the amount is greater than the limit of the branch then loan will be approved by the head office and in this situation branch collect all required documents from customer and then sent them to the head office. If head office permitted the loan then typically the period restrains a year. All this process is recorded in the bank until the customer has not refunded the amount of the loan and if he/ she will not able to pay that amount then bank has an authority to use the collateral for settlement of amount. The credit portfolio of this department is in very good shape rather than other financial institutions of our country and the credit goes to the good management.

Foreign Exchange department

This department deals with all the foreign exchange affairs like payment or retirement and foreign remittances. In the payment /retirement when transactions are completed then a conformation documents sent to the main office. Foreign exchange department deals with the all foreign currency accounts, cash deposit and remittances. Every transaction which is take place in the international banking shall be carried out at rates which are settled by the state bank of Pakistan. Rates of different foreign currencies are delivered to the branches on the same day.

Comments on organizational structure

Muslim commercial bank listed in stock exchange as a banking company and it follow all the laws and legislations which are imposed by concern decrees the chairman Mr. Muhammad Mansha who is also the chief executive of the bank with 1 vice chairman and a team of 10 directors to help in the making of different strategies and control of the business. Operational management of Muslim commercial bank is control by a team of 10 professionals. The chairman of Muslim commercial bank Mr. Muhammad Mansha is also the head of this team. Organizational structure of Muslim commercial bank is very good and effective and just because of this effectiveness, Muslim commercial bank has a very bright future in the field of banking.

PART II

Chapter # 4 Internee Work

Introduction

This chapter is the main assessment part of my report because in this part all those activities are mentioned which are performed by me during my internship in Muslim commercial bank Kutchery chowk branch Gujrat. I will try to share my all experiences and hardships of internship in this chapter. All the information regarding the branch is also given in this part of the report.

Introduction of my branch

As I mentioned that I did my 6 weeks internship in Muslim commercial bank Kutchery chowk branch Gujrat. I completed my internship with Muslim commercial bank limited Gujrat from 02- Aug- 2010 to 19- Sep- 2010. Some general information of my branch is as follow Code of the branch 1297 Name of the branch Kutchery chowk Gujrat Contact # 053-3537616 Adress of branch Kutchery chowk

Management of the branch

Management team of my branch is very talented and cooperative. Management consist of these members Syed Nadeem Raza Branch manager Amber Ahmad Branch operation manager Iram Nawaz Customer service officer Saira Bashir Cash officer Muhammad Riaz Cash officer Bushra Saleem General banking officer

Other important information

Total deposit of the branch 550 M Total number of accounts 7500 Revenue of the branch 21 M Capital of the branch set by the HO

Supervisor's detail

During my internship I worked in almost every department under the professional supervisors. In account opening department I worked under the supervision of Miss Iram she is an MBA and one of the most active employees of the branch. She is designated as customer service officer. I performed my first 3 weeks of internship activities under her supervision. She gave a lot of information and knowledge about the account opening activities and also gave an opportunity to do them by myself. She also guided me how to deal with the customers in those problems which are faced by them in account opening forms. In next week I worked in cash management department under the supervision of Miss Saira Bashir she is a graduate lady she is working in mcb from last 5 years. She guided me in this department that how to collect the utility bills, in the same week I also worked with the operational manager Mr. Amber who is an MBA along with 10 years experience in banking sector. In next few months I performed my activities under the supervision of Miss Bushra who is designated as General banking Officer of the branch. She is also an MBA and deals with all the activities of clearing and remittances. Under his supervision I performed all the function related with remittances and clearing.

4.4 Weekly time table of my work

During my internship I have worked in bill collection department, account opening department, remittance, clearing, general banking and customer service department. As I early mentioned that I worked in few departments and performed these activities. Time duration Department Tasks performed in the departments

Week I

02.08.2010 to 06.08.2010 Account Opening Department Introduced with branch employees and got common information about branch and as per the instructions of the supervisor filled the account opening forms and verified earlier accounts documents.

Week II

09.08.2010 to 13.08.2010 Account Opening Department Fill up the new account opening form of the customer, learnt stamping on account opening forms

Week III

16.08.2010 to 20.08.2010 Account Opening Department I did stamping on account opening forms which is given by my supervisor and also learnt about the documents which are required for account opening.

Week IV

23.08.2010 to 27.08.2010 Bill collection Department And Operation Department Work in the operation department. Collect the utility bills and observe the other activities of that department. Learnt about cheque and how to honor a cheque.

Week V

30.08.2010 to 03.09.2010 Clearing Learnt about clearing procedure supposedly and practically then did this procedure under the instruction of my supervisor.

Week VI

06.09.2010 to 10.09.2010 Remittances Got information of general working and about Demand draft and pay order. I also printed both many times.

Week VII

14.09.2010 to 17.09.2010 Remittances Filling deposit slips and money gram, printed D.D's and Pay Orders and During my internship period no work relative to foreign Remittances and T.T, M.T and was done in remittances department.

Description of departments

During my internship I have worked in account opening department, cash management department, clearing and remittances departments. Detailed descriptions of those departments where I have worked are as follow 4.5.1 Account Opening Department This is the main department of the bank. Account opening department perform the function of opening and closing of different types of accounts in bank. People can open their accounts in bank individually as well as a firm. Educational institutions and all other types of organizations open their accounts in the bank. Muslim commercial bank offers various accounts for their customers. People can easily open their account in the bank with their own choice like current account, saving account, PLS account, BBA account and term deposit account. In my branch Miss Iram is the head of this department. She deals with all the issues regarding account opening and closing. 4.5.2 Bill Collection and Operation Department These two departments are very important because all the bills and cheques are collected in these departments. Bill collection department collect the bills on the behalf of WAPDA, Sui GAS and PTCL. Operation departments perform many function like collecting cheques, honour the cheque and cancellation of cheque. In my branch Miss Saira is the head of cash department and operation department controlled by Mr. Amber who is the operational manager of the branch. He deals in cheques collection activities. 4.5.3 Clearing Department Each banker performs both roles as paying as well as a collecting banker; on the other hand it is an important function of crossed cheques. A great portion of this work is carried out from the banker's clearing house. A place where agent of all banks of the city interacts with each other and patch ups the receipts and payment of cheques drawn by one to the other. This department is controlled by Miss Bushra who is the General Banking officer of my branch. She deals with all the activities of clearing the cheques. There are 4 types of cheques in clearing Transfer cheques Transfer delivery cheques Clearing cheques Collection cheques 4.5.4 Remittance Department The requirement of remittance is normally felt in business life mostly and in everyday life common. A key function of any banking system is to provide a good facility of transferring funds from one customer or place to the other. The bank earns a lot of income in the form of service charges by providing these types of services to the customers. Local currency remittance is deal by this department like transfer of funds from one city to another without actually carrying the money. Following instruments are used by MCB for transferring money Pay order Demand draft Mail transfer Telegraphic transfer In my branch Miss Bushra (General Banking Officer) also deals in the remittance department as well as clearing department. She makes all the instruments of transferring funds like DD, OD, MT and TT.

Description of the activities of the departments

As I already mentioned that I have worked in above four departments during my internship. These are the activities of all those departments where I have worked 4.6.1 Activities of Account Opening Department Account opening department perform all the important activities related with account opening procedure. Account opening is a bridge between a bank and a customer. In MCB account opening department perform such activities like investigation etc. By opening an account MCB as like the other banks in Pakistan determine whether or not the individual who is going to open the account is a attractive client or not. At that time MCB verify the potential customer's honesty, morality, occupation and the nature of industry by the preliminary situations which are given at the moment of account opening. Carelessness in this casual beginning inquiry may result in serious outcomes not only for the banker troubled directly but also for other bankers and the common community who may be exaggerated indirectly. The Federal Ombudsman of Pakistan, vide his decision on grievance no. II/31/5186 In order to additional support and update this procedure, has directed the banks to keep a photocopy of computerized NIC with the account opening form of that person who is desiring to open an account as well as that of the introducer. As per these tracks, the concerned Branch Managers are essential to get the original NID along with their Photocopies and then after attesting the validity of the retained copy return the original card to the customer. After all these investigation account opening department opens the account of the applicant and give cash book to the customer. This investigation is necessary for opening a account just because of avoiding the fraud and other unlawful acts of the customers. 4.6.2 Activities of Bill Collection and Operations Department Bill collection department perform the activity of utility bills collection on the behalf of WAPDA, SUI GAS and telecommunications. This department works in the supervision of cash officer when the bills are collected than at the end of the working hours a bill collected scroll is made by the officer. Operations department deals with the most important functions of the bank. Cheques are received and honor in this department. Operation manager is the head of this department. 4.6.3 Activities of Clearing Department Clearing is a method by which banks substitute cheques and other exchangeable tools drawn on each other inside a specified district and in that way securing the payment for its customers from the clearing house. Clearing house is a general association of the banks at a set position, main purpose clearing house is equalizing the cross responsibility in the shape of cheques. When there are numerous banks in the country each will accept a number of cheques strained on other banks, deposited inside for compilation. A clearing house is an organization where these cheques are brought and the mutual claims of each bank on the other are offset and a settlement is made by the payment of differences. The process of clearing refers to the gathering of cheques strained on other banks. These cheques may be strained on United Bank Limited, Habib Bank Limited, National Bank of Pakistan, or several other bank of Pakistan. The relevant clerk assembles all cheques and enters them in the register of clearing. Then he attaches a stamp on these cheques and arranges out cheques of different banks and prepares agenda for them then these cheques are sent to clearing house. SBP has extended the tune of Clearing House. MCB will accept all the cheques strained by other banks. Lastly they replace their cheques mutuality. Muslim commercial bank ambassador will give cheques of United Bank Limited, Habib Bank Limited, Allied Bank Limited, National Bank of Pakistan, and State Bank of Pakistan to their agents, and get the cheques strained on MCB from these agents. Further they clear up their account. SBP agent will work out the balances and will clear up their account from their balances with SBP. The amounts of the cheques are credited in the depositor account on the second or third day and if the cheques are not revisited it is cleared that all the cheques are honored. 4.6.3 Activities of Remittance Department

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