Muslim Commercial Bank Limited

Muslim Commercial parsimonys desire limitedMCB deposit is the abbreviation of Muslim Commercial Bank Limited and it was established by the Adamje group on 9 July 1947, under the Indian follow Act, Vll of 1913 as a association limited. This strand is established in view to provide the banking inst exclusivelyment to the condescension community of the South Asia. This bank was nationalized in 1974 and at that time president of Pakistan was Zulfikar Ali Bhutto. This was the first bank to be privatized in 1991 and the bank was purchased by the Nishat throng. In the 2008, the Nishat convocation holds the majority of the sh bes of this Bank. At that time MR. Atif Bajwa is the president of the Bank and that person is previously working with the Citi Bank.Nishat Group was founded in 1951. Nishat Group is the leading and most widely separated line of reasoning Groups in Pakistan. The presence of Nishat Group in the measurable business sectors of the surface argona like Banking, Textile, cement and insurance. Mian Muhmmad Mansha is the proprietor of the Nishat Group. The comp whatsoever has fixed and current assets of everywhere 300billion and this company were included in one of the top five companies of the Pakistan. Mian Mansha played a very important economic consumption in the success of the bank. The Govt. of the Pakistan gave him Sitara-e-imtiaz and this is the most prestigious civil award of the sphere. If we cope a look on the total asset of the bank that is 72,052,258 in border 2010 and if we take a look on the previous assets that was 69,740,013 we estimate that the bank is re eithery working with a fast pace. And the profit after taxation of the company in March 2010 is 4,141,151 and at the end of the 2009 it was 4,134,971.Muslim commercial Bank agreement to buy the Royal Bank of Scotland but it fails to acquire congruous pass from State Bank of Pakistan.Profitability of MCBMCB is the Pakistans fourth largest bank in term of assets base 5.9 billion US dollar. The bank has the almost 1082 setoffes including 11 Muslim banking branches and over 300 ATM machines.During the last Fifteen year bank has concentrated on appendage done improving draw quality, investment in engineering and people, utilizing its extensive branch network and managing the risk management.MCB has established business in SriLanka and Bahrain and freshlyly established Rep. Office in Dubai. The bank has too formed a private company in Hong Kong in partnership with the Standard Charter bank, handling trade transactions in Asian-Pacific region. MCB also incorporated a leasing company in Azerbaijan in 2009.Fully ingested Subsidiaries of MCB areMuslim Commercial fiscal Services (private) LimitedMNET Services (private) LimitedMCB Trade Services LimitedMCB Asset Management Company LimitedMCB Leasing CompanyBusiness Strategy of MCBThe business strategy of MCB is to provide financial solutions in major segments for its customers. The bank has also established an Islamic Banking unit to offer Shariah complaint products and services, in six cities and the future plan is to establish more than branches of Islamic banking and its branches is as practically as the handed-down banking branches move over in the country.Nishat TextileNishat Mills limited was founded in 1951. He has one of the largest Textile setup in the country. They pretend hobby production facility270,000 Spindles740 loomsDying and printing ability of 7 million metersCementD.G Khan Cement Company Limited (DGKCC) is a unit of the Nishat Group and it is the largest Cement manufacturing company in the Pakistan with the capacity of 5500 tons clinker per day. They distribute their product in both nationwide and as soundly as internationally due to his consistent quality. This company is listed on all the stock exchanges of the Pakistan. Nishat Group also setup a new Cement manufacturing plant with a capacity of 6700 tons per day near kalar kahar, Distt. Chakwa l. After the completion of this plant this forget be the largest plant of the country. financial ServicesMCB is the largest private bank in the country with a 1200 branches in Pakistan and they operate internationally. MCB was also the first bank of the country that is listed on the London stock exchange in October 2006.Values of MCB Bank pursuance are the vales of MCB BankIntegrity inductionExcellenceCustomer CentricityRespectIntegrityWe are the trustee of public fund and serve our community with integrity. We intend in being the best at always doing the right thing. We deliver on our responsibility and commitment to our customer as well as our colleagues.InnovationWe encourage and reward people who challenge the status quo and think beyond the boundaries of the conventional. Our team work together for the smooth and efficient implementation of ideas and initiatives.ExcellenceWe take personal responsibility for our role as leaders in pursuit of excellence. We are the performance driven, result oriented organization where merit is the only beat for reward.Customer CentricityOur customers are at the heart of everything we do. We thrive on the challenge of understanding their needs and aspiration, both realized and unrealized. We make every effort to blow over customer expectation through superior services and solution.RespectWe respect our customer values, beliefs, culture and history. We value the checkity of gender and diversity of experience and educational activity that our employees bring with them. We create an environment where each individual is enabling to succeed.Online servicesFollowing are the online services that offer by the MCB Bank.Million of BranchesATMsCall shopping centreBill PaymentFunds transferMCB Limited Announcing his Million of Branches in the CountryMCB Limited has announced Mobile Banking facilities for its customers in July 2009, first time in Pakistan.Speaking on the event, Mr. Atif Bajwa, notch CEO of MCB Bank said that MC B Mobile was a first step in ensuring the cost effective delivery of financial service. He added that when the State Bank of Pakistans advent the Branchless Banking procedure, development of many new financial products and services were already in progress at MCB. These products is non developed only for the MCB customers, but they also watch that most of the people have prompts nowadays but they have no door to the banks through the mobiles so MCB Bank Limited introduce that system that help their customers to access their accounts easyHe further added, casingrs of MCB Mobile are just not restricted to reflection account balances or requesting mini-statements, they easily manage mass of birthments, like pay utility bills, recharge their both pre paid and mark paid connections and make payments of post paid spots through their mobile phones, they can even transfer the amount from one account to an early(a) in few minutes.Mehreen Ahmed, Group Head of Consumer Banking, also speaking on the event, that MCB Mobile was developed to offer customers dissimilar facilities to access their account end-to-end a week from their mobile phonesMCB Bank enlighten the Wide MobilizationMobilization has been started in MCB Bank at 5 April 2009. The objective of the team is together bank and makes ensure that maximum chip of members of MCB login and use MCB Mobile.Remote banking team trained the peoples of MCB and how to use the MCB mobile to ensure that this is very made across the country wide branches.MCB Limited sponsors 2nd Mobile-Commerce Meeting in KarachiMCB is the sponsors of the 2nd Annual Mobile Commerce meeting held in Karachi at 11 March 2009. The discussion was attended by a chassis of different Banks, Telcos and Technology.Mr. Atif Bajwa, Head of MCB Bank Limited, delivered a key note that is the Banks and Telecommunication Companys work together and to bring revolution in that field. He gives offer to the telecommunication companies coif to join t he hands of MCB mobile banking to produce something new that no longer be in Pakistan.MCB meets the Chairman PTAA team of the bank that lead by Mr. Qasif Shahid Head of the remote banking system met with Dr. Yaseen the chairman of Pakistan Telecom Authority in February 2009.The meeting was attended by many of high ranking officers of PTA and members from all 5 Telecommunication Companies.Key issues about the successful development of Mobile Banking in Pakistan were discussed in that meeting. All the 5 Telecommunication companies are agreeing to make a projection force that made a road map for Mobile Banking. These task forces have been created and complete their tasks under the supervision of PTA.MCB link up with Fundamo Mobile BankingMCB Bank has linked up with Fundamo for its Mobile Banking solutions in January 2009.FundamosFundamo is the Enterprise financial services platform. Fundamo is the worlds largest mobile financial service provider they have the expertise to build tec hnologies, and they have experience and vision as well.VisionFundamo is the global mobile financial solution provider. The company was established in 2000 and looking towards providing financial services through mobile phones in both developing and developed countries.LeadershipThe company has created its lead position due to the history of innovation and successful development. This knowledge ensures that its customers will always hit their target markets. With over 30 successful development projects in over 20 countries Fundamos technology and development strategy is proven.ExpertiseFundamos lead team has healthy background knowledge in the financial services industry and has the strict design principles required for secure banking system, and they also taking favour of its unique character in mobile phone. This new style of financial system represents a motiveful banking system due to its simplicity and uniqueness.Collaborating for successAn important element of Fundamos is to collaborate with the specialist organization to effectively and efficiently meet the need of the client in the rapidly moving mobile financial service market.Global coverageFundamos is now a global company with a 20 clients in different countries. Fundamos has a direct business as well partner business operations in many early(a) countries.Fundamo SolutionsEnterprise Edition.Mobile wallet.Mobile Banking.Mobile Money Transfer.Fundamo is working in Pakistan through their prescribed partners Access Group (Pvt) Limited.Bottom of FormLoading Loading What can u do with the MCB mobile service?Account BalanceMini parameterTransfer of fundsPurchase mobile Top-Ups through MCB Mobile servicePay your Mobile BillsPay utility BillsMake Visa Credit notice paymentsDonationServicesBalance inquiryYou can check your account balance any time.Mini-StatementYou can access the transactions of last six months from your bank account at any time, making it easier for you to manage your account.Fund T ransfersYou can send coin to anyone through MCB Bank account. The receiver of the money does not have to be a registered with the MCB Mobile user. You can receive money by giving the complete number that contain 16-digits or the ATM bank note number of the receiver.Purchase Airtime for Prepaid ConnectionsNow you can easily purchase prepaid airtime from these mobile companiesMobilinkUFoneZongWarid ZemTelenorPay Postpaid Mobile billsNow you can forget to pay your bill to the franchise because MCB gives you the opportunity to pay the bill through MCB Mobile at any time without any difficulty.MobilinkUFoneZongWaridTelenorPay the amount of BillsMCB Mobile gives you facility to make payments of utility bills. likeElectric citySui GasWater ChargesTele phone billsMake payments of MCB Visa Credit wagYou can now easily pay your Visa Credit flier payments through MCB Mobile. Now you can pay token(prenominal) payment or the full amount.Report a baffled ATM cardIf you lost your ATM card d uring the usage you can inform to the bank immediately and the bank will deactivated that card. And issue new card on the demand of the customer but this is only for the register customers.DonationsYou can make donations to any charity through the use of MCB Mobile service at heart a second. Donations to the Prime Ministers Fund are being accepted through this service. More charities will be added.Questions that mostly people askedFollowing question asked by the people. Who is eligible to register for the services?Do I need a special mobile connection?Is number portability supported for MCB Mobile?Do I need special mobile phone (handset)?Can I still register if I dont have Internet on my phone?How can I activate GPRS/Internet?What is bank charging for it?Are there any other charges?Is this service safe to use?How do I register?What happens after I register?What are the payment limits?If I forget my Mobile PIN?Where do I find the terms conditions?Where can I get more information ab out the MCB Mobile?ATMs ServiceMCB ATM smart card works anytime, anywhere in Pakistan abroad. MCB smart card is accepted over 4000 ATMS nationwide. MCB enables you to access fast cash, account balance require, transfer of funds etc through 450 ATMs in the country.MCB bank offers different type of ATM cardsATM Regular CardATM Gold CardATM Regular CardATM Regular or classic card allow you to withdraw 15000 per day and token(prenominal) three withdraw in a day.ATM Gold CardATM Gold card allow you to withdraw up to 25000 per day and minimum of six withdraw in a day. The other condition is that the cardholder has to make two transactions to withdraw the 25000 amount.Call CenterMCB provide the call circle around facility to their customer through which you can take help from representatives. Those are available at any time. They can help you as well as give guidelines. You can all so take help about their credit card problems.MCB offers following servicesGeneral InquiresFinancial Serv icesNon- Financial ServicesGeneral InquiresFollowing are the general inquiresATM locationsAccount opening proceduresMCB Bank ChargesAll MCB Product related informationMCB Merchant locationsFinancial ServicesFollowing are the different Financial ServicesInquiry of account balanceRequest for transfer of fundsDetails of Debit Card transitionsDetail for last five transitionsRequest for all Credit CardsBlocking Service of ATM Card throughout the dayPayment for all the BillsPurchase vouchersNon Financial ServicesFollowing are the Non Financial ServicesRequest for Credit Card address changeVirtual Banking activation bearing registrations 24 hours a dayMobile Banking activationCall 111-000-MCB (622)Bill PaymentsMCB give you the services through which you can pay your bills and recharge your mobile accounts. So we save our time through this and pay our bills easily. MCB smart card holder can also pay their bills easily.Bills Payment FeaturesFollowing are the FeaturesPay your Bills throughout the weekMake full or half payment. Full payment is required only for PTCLRecharge your prepaid accountPay as a register or non register user. This will help you to avoid the time delay.SWOT ANALYSISStrengthLong EstablishmentLong establishment is one of the strength of MCB over private banks. Due to this it earn a name in the market,The biggest InfrastructureMCB has the biggest infrastructure among the entire private bank. So it is making business from one corner of the country to another corner of the country.Other factors areBrand image because of Muslim word in the name in an Islamic country.In a growing economy of Pakistan.Has strong market presence.Mainly operating by Mansha Group.Offers a wide variety of services to its customer and has a customer bank of round about 4 million.The bank has efficient IT infrastructure and network of online services.MCB is working in Pakistan over 60 years of success.MCB capitulation under the big 5 domestic banks of Pakistan.Bank is continuou sly foc development on developing new and innovative products to attract the target market.Asset drill is very good.GPRS enable banking.WeaknessesIn the changing environment where MCB has some strength it has some weaknesses also, some of the weak factors areNone Professional lagMCB keeps non master key staff even on higher post who is promoted from the typist and clerical area after a long time.Nationalization EffectWhen MCB was nationalized by BHUTTOs Govt. it was the glooming rate of flow of MCB. During that period, MCB suffered a lot.Govt. InfluenceNon-professional and bureaucratic people were placed at the top mgt level who knows nothing about the banking and they damage the re givee of the bank in the markets as well.Lack of dynamismWhen a newly person employed in the bank they want to leave the bank very soon. Because the promotion period of the bank is so late till you retire. So lake at dynamism comes to the personality. He is no further creative in his life. So increas ing age of the staff is one of the weaknesses of the bank because banks needs young and creative person who have the ability to meet the changing response of the environment.Advances to non productive unitsDuring the nationalized period, a lot of amounts are forwarded to the non productive unit just on political bases. Most of the advances are not still paid and not even written off.Other factors arePolitical instabilityInternal political issuesLess job satisfaction of employees.Customers facing problems of NADRA verification while opening their accounts because its process is time consuming.To give everyone equal protocol is lacking among employees customers having account with small amount and not giving same services like hatching to others who have high account.Lack of organizational loyalty among employees.Promotion is generally on seniority bases.External EnvironmentOpportunityHaving an edge over the other commercial banks, MCB has greater profit, greater growth rate and mar ket share than other commercial banks.PrivatizationAfter privatization bank deposits has accelerated tremendous speed because it gave the opportunity to get rid of critical influences and to put the bank on the professional root.Other factors areTo go globalLow exposure to consumer banking providing opportunity to explore the segment.Emergence of Islamic banking in the country and MCB is increasing its Islamic banking operations.SBP police to allow Islamic banking business separately.Free staff training facilities offered.Greater profitability can be achieved through strong internal control.Elimination of risk of fraud through professional training.Opportunity to open a branch in rural area to increase its branch network and gain more profit.New schemes for deposit and finances should be introduced regularly. banesPrivate BanksLike citi bank and ABN amro are entering in the market with a greater power and strength in terms of brand name.Govt. PoliciesMCB faces the great threat from the Govt. policies like as finance the non productive units housing etc. so the bank does not feel the freedom in operating on its own view point, which is a threat for the bank. Because the bank is purely commercial so it should have autonomy to make its own decisions.Other factors areIncreasing competition in banking sector of Pakistan.Strong competition.Rising deposit rates.Foreign banks in the market having more marketing budget.People losing trust in banks.Participation of foreign banks in local market that can hurt the market share.Restructuring of privatized banks. gent ANALYSISPoliticalPolitical instability in Pakistan can lead to changes in laws and policies which can be in favor or against the banking sector.Economic saving of Pakistan is facing issues about employment, inflation, illiteracy, which hinder business growth.SocialCultural issues can be there but still as there are international companies there, therefore, cultural issues are not prominent.TechnologyPeople ar e highly skilled and MCB can introduce new technology to increase competencies.Porters ModelThe founding of much of the thinking on competitive advantage has been the writing of Michael Porter. Porter in his book COMPETITVE STRATEGY techniques for analyzing industries and competitors (1980) introduced his model of competitive rivalry.Competitor rivalries are agonistic rivalryThreat of potential new entrant to the sectorThreat of substitution product or services to the existing tradeThe Bargaining power of purchasersThe Bargaining power of suppliersThreat of potential entrantsCompetitiveRivalryBargaining power of buyerBargaining power of supplierThreat of substitutionThreat of New EntrantsThe threat of new entrant relates to the ease with which a company can enter a given trade sector. Barrier to launching into a particular market include the need for capital, knowledge and skills. The barrier to admittance, for example, in banking industry if a bank is working in particular area where any other bank is exist or any other branch is exist in the same city. Then the competition is exit and threat is exist for the bank that already exists. With the entrants of competitor your business is really suffer to overcome their competitor you have to introduce new strategies and make plans.IT can be a barrier to enter to a given market place. Existing players in the sector may well have a substantial in IS / IT, including for character the use of EDI to co ordinate their supply chain. This experience and investment can be difficult for the new entrant to check off. The converse is that development in IT and e- concern may leave existing players with a heavy investment in expensive, old technologies giving the new entrants the opportunities to enter the market with fresh ideas and a business plan facilitated by a new generation of IT provision. Internet e- commerce is a technology that can facilitate new entrants to existing markets without the need to match the IT a nd infrastructure investment of the existing players.Threat of SubstitutionSubstitution is a threat to existing players where a new product becomes available that supplies the same function as the existing product or services. If we take the examples of banks if any commercial bank is not providing good services to their customers are not giving proper care to the customers then the customers go for the substitute where they find good services and where bank provide or give values to their customer as a priority.The IT industry has itself substitute many products previously used in business with the replacement of the typewriter by the word processor being but one example of the e- commerce technologies, internet e- commerce has the potential to make significant inroads in the traditional retail sector with online banking.Bargaining power of BuyersFor a business to be profitable the cost of producing and distributing its product has to be less then price it can fetch in the market p lace. Where there are a number of competitors in the market or the surplus of supply the buyer is in a strong position to sight for a low price and for other favorable conditions of trade. Over recent years the large retail chains have developed a strong bargaining position.The bargaining strength of the buyer is of to the lowest degree threat to the low cost producer that organization can agree to tight terms of trade that competitor firms could not profitably match. The other defence is to have a branded product that the store will feel obliged to stock because their customers expect it.Bargaining power of suppliersThe organization whilst onerous to get an adequate price from its buyers will be looking to get favorable terms from its own suppliers. The organizations ability to get a good deal is the mirror image of its positions with the buyers. If the supply is plentiful or there are several suppliers it should get a good price. If the product is scarce or the number of suppli ers that are able to meet its needs is limited then the supplier is in a more favorable position.Competition between Existing PlayersThe net force is the competition between existing players in the market. The competition is to get the buyers and to trade at a price that produces an acceptable profit. That competition is won on the basis of the generic competition advantage of price, differentiation or focus. The competitive position of each organization is determined in part as least by the deal it is able to make with its suppliers. The competitive position of each organization is not absolute in most markets the factors that lead to a successful deal in one place at a given time will not necessarily be replicated in the next bargain that is to b struck.Impacts of E- BusinessFollowing are the impacts that E- business have o the bankNew sales melodic phrase damage leadershipReduced entry costNew opportunitiesInformation SystemEfficient quality controllingEasy fraud detection in t ransactionEasy data savingEasy data recoveryEasy management of business transactionNew sales channelE- Business is the new way of sale channel in the market. You can introduce any kind of your new product on your official website. The internet completely changes the selling process for both the buyers and sellers. electronic commerce users found that they can reduce the cost of sale through the internet. Internet is a very well media to advertise their product because if you launch your own site this is very help full for you because it is easier to buy anything from the site rather to go there and then decide. You can easily access the site and it is reformatory for customer point of view because it takes less time and your required thing is at your door. Last many years advertising through internet is increase very rapidly manufacturers put every information about the product on the site so you can read it easily and you get acquainted(predicate) with the new product features. A mazon.com is the retail store for selling books through internet. Amazon is the most successful internet business launches ever. In MCB as they launch their mobile banking service customer feel much satisfaction because before launching this service or before online banking customers have to go to the bank for balance inquire are for any other service. After this service customer can check and access their account at their home and can send their money anywhere in the country easily. MCB mobile banking is the new way of doing business and they can send SMS to their users for the latest services that they introduced in the market.CUsersTahirDesktopmarketing.jpgCUsersTahirDesktopresearch2.jpgCost Leader ShipCost leadership is a concept used in business strategy and it is developed by Michael Porter. It describes the competitive advantage in the firm. Cost leadership basals reducing the cost of operation in the industry. The cost leadership is often determined by company efficiency, s ize, scale, scope, and cumulative experience. A cost leadership means to increase the level of production well defined scope and other economics and producing high quality products by using high technologies. In the last few years many companies used strategy mix to achieve market leadership. Companies that wish to follow the cost leadership strategy must maintain constant efforts to reduce the cost. Cost reduction strategies includeEstablishing tight control of productionMinimize the cost of saleLike the multinational bank MCB launched their online services like mobile banking. This is launched to reduce the luxuries and to introduce the branch less banking that mean it reduce the cost of branches for example if they remove the branches that mean saving of cost in term of removing employees and cost of electricity and many other expenses of branches.CUsersTahirDesktophourglass-703070.jpgReduced Entry CostReduced Cost of entry means introduce the new product to the market. Cost of e ntry includes the cost of all research, development, production, testing, marketing, advertising and distribution of the new product. Developing a website is reduced all these cost because internet provide you an easy access to every information so if you want to increase the production capacity you can find the new production techniques on the net. And you can adopt that according to your need.If we take advertising websites and online other sources like newspapers, magazines reduced the cost of advertising very much. In traditional way of doing advertising like print the papers and join the local media this will charge you high cost at limited area coverage. unless the internet is away that give you an opportunity to advertise the product on a larger scale.If we talk