1. In the name of Allah Who is the most beneficent & the most merciful

2. Sonia Anis mc090205046 MBA Finance

3. Muslim Commercial Bank Limited
Internship Report On
Muslim Commercial Bank Limited
MCB

4. Introduction to MCB
A bank is a financial institution which deals with money and credit. It is an intermediate between two parties. A bank is a firm that takes deposits from household, firms and makes loans to household and firms.

5. History
Muslim Commercial Bank Ltd. Unfold 57-years’ growth. MCB is not an overnight success story. The bank started corporate life in Calcutta on July 9, After the partition of the Indo-Pak Subcontinent, the bank moved to Dhaka from where it commenced business in August In 1956, the Bank transferred it Registered office to Karachi, where the Head Office is presently located. Main Muhammad Mansha Chairman and chief executive of MCB

6. P S MCB Product & Services Auto Loan Business Sarmaya
Tractor finance scheme
MORTGAGE S
MCB ATM Services
MCB Mobile Banking
MCB Call Center
Basic Banking Account (BBA)
Current Account
Saving Account
Business Account D

7. Competitors Add Your Title Allied Bank Limited United Bank Limited
Askari Bank Limited

8. Business volume Authorize capital Deposits Advances Investment
Description
2007
2008
2009
Authorize capital
Deposits
Advances
Investment
Borrowing
Reserve
Profit after tax
6500
292,098
330,274
367,604
218,960
262,510
253,149
113,089
96,256
167,134
394,068
22,663
44,662
5,130
9,193
15,779
15,265
15,374
15,495

9. Organizational Hierarchy Chart
President
Chairman
Vice president
Senior Vice President
Chief Financial Advisor
Audit Committee
Regional Manager
Branch Manager

10. Traning Program
Joining
Adjoining

11. Collect External information
Working Departments
1st week
Customer service
2nd week
Account
3rd week
Remittance
Department
Clearing
4th week
Cash
5th week
Collect External information
6th week

12. Activity
Leverage
Liquidity
Ratios
Market
Profitability

13. Liquidity Ratios

14. Current Ratio Muslim Commercial Bank Limited 2007 2008 2009
Ratio Analysis
Muslim Commercial Bank Limited
Current Ratio = Current assets
Current Liability
2007
2008
2009
Current
Ratio /
2.81 /
2.11 /
2.94

15. Quick Ratio (Acid Test)
Ratio Analysis
Muslim Commercial Bank Limited
Current Ratio = Current assets- prepaid Expenses
Current Liability
2007
2008
2009
Quick Ratio /
2.81 /
2.11 /
2.94

16. Muslim Commercial Bank Limited
Working Capital Ratio
Ratio Analysis
Muslim Commercial Bank Limited
Working Capital ratio = Current Assets - Current Liability
2007
2008
2009
Working Capital Ratio

17. Working of Current Assets
2007
(Rs)
2008
2009
Cash and balances with treasury banks
39,631,172
38,774,871
Balances with other banks
4,043,100
6,009,993
Landings to financial institutions
4,100,079
3,000,000
Other assets – net
19,810,476
23,040,095
Total

18. Working of Current Liabilities
2007
(Rs)
2008
2009
Bills payable
10,551,468
8,201,090
Other liability
21,345,781
15,819,082
Total

19. Leverage Ratios

20. Muslim Commercial Bank Limited
Debt Ratio
Ratio Analysis
Muslim Commercial Bank Limited
Debt Ratio = Total Debt / Total Assets
2007
2008
2009
Debt Ratio /
0.86 /
0.868
/509,223,727

21. Working of Total (Liability) Debt
Total debt
2007
(Rs)
2008
2009
Bills payable
10,551,468
8,201,090
Borrowing
22,663,840
44,662,088
Deposit and other account
330,181,624
367,604,711
Other liability
21,345,781
15,819,082
Deferred tax liabilities – net
437,137
3,196,743
Sub-ordinate loan
479232 -
Total
385,179,850
439,483,714

22. Working of Total Assets
2007
(Rs)
2008
2009
Cash and balances with treasury banks
39,631,172
38,774,871
Balances with other banks
4,043,100
6,009,993
Lending to financial institution
4,100,079
3,000,000
Investment
96,631,874
167,134,465
Advances
262,135,470
253,249,407
Other asset
19,810,476
23,040,095
operating fixed Assets
17,263,733
18,014,896
Deferred tax Assets -
Total

23. Muslim Commercial Bank Limited
Debt / Equity Ratio
Ratio Analysis
Muslim Commercial Bank Limited
Debt to Equity Ratio: = Total liabilities (Debt) / Shareholder equity
2007
2008
2009
Debt / Equity Ratio /
6.44 /
6.59 /
0.63

24. Working of Shareholder Equity
= Total Assets – Total Liabilities

25. Muslim Commercial Bank Limited
Times Interest Earned
Ratio Analysis
Muslim Commercial Bank Limited
Time Interest Earned Ratio = (EBIT) / Interest expenses
2007
2008
2009
Time Interest Earned
/ 7,865,533
3.70
/11,560,740
2.89
/15,841,463
2.46

26. Interest / markup Expenses are available in P&L Account
Working of EBIT
EBIT
2007
(Rs)
2008
2009
Profit before tax
21,867,566
23,154,945
Add) interest / markup expenses
11,560,740
15,841,463
Total
Interest / markup Expenses are available in P&L Account

27. TOTAL CAPITALIZATION RATIO
Ratio Analysis
Muslim Commercial Bank Limited
Total Capitalization Ratio = Long term debt / Long term debt + Share holder equity
2007
2008
2009
Total Capitalization ratio
/ /
0.02 / /
0.13 / /
0.04

28. Working of long term liabilities
Year 2007
(Rs)
Year 2008
Year 2009
Sub-ordinates loans -
Deferd tax liability
437,137
3,196,743
Liabilities against assets subject to finance lease
479232
Total

29. Activity Ratios

30. Muslim Commercial Bank Limited
Total Assets Turnover
Ratio Analysis
Muslim Commercial Bank Limited
Total Assets Turnover = Sales / Total Assets
2007
2008
2009
Total Asset Turnover /
0.07 /
0.09 /
0.10

31. Muslim Commercial Bank Limited
Fixed Assets Turnover
Ratio Analysis
Muslim Commercial Bank Limited
Fixed Assets Turnover = Sales / Total Fixed Assets
2007
2008
2009
Fixed
Assets Turnover /
1.98 /
2.31 /
2.86

32. Sale is the value of "Net Sales" or "Sales" from the company's income statement
Total Fixed Assets Total fixed assets are the value of all the assets which is not current assets. Total Fixed assets are available in the balance sheet.

33. Profitability Ratios

34. Muslim Commercial Bank Limited
Net Profit Margin
Ratio Analysis
Muslim Commercial Bank Limited
Net Profit Margin = Net Income / sales *100
2007
2008
2009
Net profit Margin
20,808,390 /
0.65 or 65.4%
20,526,669 /
0.51 or 51.2%
24,710,953 /
0.47 or 47.8%

35. Working of Net Income Net Income 2007 2008 2009
Net mark–up / interest income after provisions
24,463,963
28,452,223
Add) Non–mark–up / interest income
5,791,440
5,642,885
Less)
Non–mark–up / interest expenses
8,387,837
10,940,163
Profit before tax
21,867,566
23,154,945
Less) taxes
6,492,966
7,659,648
Profit after tax
15,374,600
15,495,297
Less) other expenses
5,152,069
9,215,656
Net income
20,526,669
24,710,953

36. Muslim Commercial Bank Limited
Return on Assets
Ratio Analysis
Muslim Commercial Bank Limited
Return on Assets = Net income after tax / Total Assets * 100
2007
2008
2009
Return on Assets
/ *100
3.71%
/ *100
3.46%
/ *100
3.04%

37. Working of Net income after tax
2007
2008
2009
Net mark–up / interest income after provisions
24,463,963
28,452,223
Add) Non–mark–up / interest income
5,791,440
5,642,885
Less)
Non–mark–up / interest expenses
8,387,837
10,940,163
Profit before tax
21,867,566
23,154,945
Less) taxes
6,492,966
7,659,648
15,374,600
15,495,297

38. Operating Income Margin
Ratio Analysis
Muslim Commercial Bank Limited
Operating margin = operating Income / Net sales*100
2007
2008
2009
Operating income margin
24,369/
7.66 %
25,910 /
6.47%
30,620 /
5.93%

39. Operating Income = Available in Six year Analysis of the company

40. Return on Operating Assets
Ratio Analysis
Muslim Commercial Bank Limited
Return on operating Assets = sales / operating assets
2007
2008
2009
Return on operating Assets /
1.97 / /
2.85

41. Working of operating Assets
2007
2008
2009
Capital work–in–progress
233390
510,226
1,099,749
Property and equipment
16,562,309
16,666,905
Intangible asset
183073
191,198
248,242
Total
17,263,733
18,014,896

42. Muslim Commercial Bank Limited
Return on Equity
Ratio Analysis
Muslim Commercial Bank Limited
Return on Equity = Net income after tax / Total Equity* 100
2007
2008
2009
Return on equity
/ *100
33.6%
/ *
100
29.4%
/ *
25.4%

43. Working of Total Equity
2007
2008
2009
Share capital
6,282,768
6,911,045
Reserves
36,768,765
38,385,760
Un appropriated profit
9,193,332
15,779,127
Total
52,244,865
61,075,932

44. Gross Profit Margin Ratio = Gross Profit / Net Sales
Ratio Analysis
Muslim Commercial Bank Limited
Gross Profit Margin Ratio = Gross Profit / Net Sales
2007
2008
2009
Gross Profit Margin /
0.75 /
0.71 /

45. Working of Gross Profit
2007
2008
2009
Mark–up / return / interest earned
40,043,824
51,616,007
Less) Mark–up / return / interest expensed
11,560,740
15,841,463
Total
28,483,084
35,774,544

46. DuPont Return on Assets
Ratio Analysis
Muslim Commercial Bank Limited
DuPont Return on Assets = Net Income * Sales_____
Sales Total Assets
2007
2008
2009
DuPont return on assets
20,808,390/ * /
0.65*0.07
0.04
20,526,669 / *
/ *0.09
0.03
24,710,953 / * /
0.47*0.10

47. Market Ratios

48. Muslim Commercial Bank Limited
Dividend Per Share
Ratio Analysis
Muslim Commercial Bank Limited
Dividend per share = Dividend paid to share holder
Average common share outstanding
2007
2008
2009
Dividend per share /
400.0 /
125.9 /
219.7

49. Dividend paid to share holder Source: Cash flow statement of MCB Average common share outstanding source: financial statement analysis notes of MCB Note # 32 page # 106

50. Muslim Commercial Bank Limited
Earning Per Share
Ratio Analysis
Muslim Commercial Bank Limited
Earning Per share = Profit Available to shareholders or Net income after tax
No of shares outstanding
2007
2008
2009
Earning per share
20,808,390 /
22.09
20,526,669 /
22.25
24,710,953 /
22.42

51. No of shares outstanding = Net income after tax EPS EPS is available in balance sheet Net income is available in P&L account of the MCB

52. Muslim Commercial Bank Limited
Price Earning Ratio
Ratio Analysis
Muslim Commercial Bank Limited
Price Earning Ratio = Current market Share price / Earning Per Share
2007
2008
2009
Price Earning ratio
18.11 * 22.09
400.0
5.66 *22.25
125.9
9.80 * 22.42
219.7

53. Working of Price Earning Ratio
EPS is available in balance sheet
PE Ratio is available in year analysis of the company.
Current market Share price = PE * EPS

54. Conclusion
The overall analysis shows that MCB is in good condition throughout the analysis years 2007
In the next year 2008 & 2009, there is decrease in the value of profit as compare to previous year. During this year the operating cost was max and its operational profit was minimum as compare to previous year .The reason behind this due to uncertainty in the process of increase in payables, increase in capital work in progress and less investment during this year.
Earning per share is also increase during these years for the stocks holders and the persons interested in MCB investment.
Insufficient Staff in branches

55. Recommendation
MCB Should focus more on training needs of staff in line with practical banking, especially IT based products
Bank should acquire modern automation system to provide efficient and prompt service to the customers
Before lending loan to the client or financing a project a team of expert should physically visit the site and then evaluate its feasibility for investment. If the investment and project is profitable then should go on otherwise should not invest.
Increase in Mobile Banking including ATM , online Banking etc.
Take step to increase the profit.
Investment in assets should be appropriate.

56. Thank You !