Internship Report on Soneri Bank 2012

INTERNSHIP REPORT

ON

SONERI BANK LIMITED

SUBMITTED BY:

WASIM RIAZ

R.NO 7871

M.COM (FINANCE)

SESSION 2010-2012

COLLEGE OF COMMERCE

GOVERNMENT COLLEGE UNIVERSITY

FAISALABAD

Dedication

In The Name Of Allah the Most

Beneficent and the Merciful

I dedicate this report to my parents, thank you for being a pillar of strength for me

When I was weak. Thank you for not throwing me away when I disappointed you.

Thank you for loving me.

Finally, I dedicate this report to My Teachers for not only being our teacher but our

mentor as well and teaching us everything that we must know to be the knights of the

business empire. I would also like to dedicate this report to all my respectable

teachers.

Preface

Getting practical knowledge in one of the major aims of M.COM program.

Department of Commerce Govt.College University Faisalabad, followed

Policy of assigning different practical.

Assignments to its students so a touch of real working environment can be given to the

students apart from classroom studies to widen their perspective.

In this context, respectable teacher Mr. Raheel mumtaz has assigned me to do

internship in Soneri Bank.

This internship report consists of two findings to work in the different departments of

bank and gathered useful information from different sources. ; I hope that the readers

of this report will get valuable information about

Soneri Bank Limited.

Acknowledgement

All prays goes to Allah almighty. To write an acknowledgement after the completion of

An enormous task as always been more enormous than the task itself. But with the

firm

Determination and noble passion of hard working, nothing remains difficult.

I am grateful to our honorable teacher Mr. Raheel mumtaz who assigned me this

report, which would be very helpful for my future in practical life. I gain a lot from this

interesting earning job.

I want to thank all those personalities, who have been a source of guidance during the

Internship. I acknowledge them with thanks for their help. My deep gratitude also goes

to Soneri Bank Limited Jaranwala management.

Rana Muhammad Raffi (Branch Manager)

Muhammad Asghar (Operations Manager)

Needless to say that all shortcoming of this report will remain my responsibility.

EXECUTIVE SUMMARY

The banking structure in Pakistan comprises of the following types, State Bank of

Pakistan, Commercial bank of Pakistan, Exchange Bank, Saving Bank,

cooperative banks, specialized credit institutions.

SONERI BANK LIMITED Incorporated on September 28, 1991 the first branch of

Bank formally opened doors for operations in Lahore on April 16, 1992 followed by

Karachi Branch on May 09, 1992. The bank now operates with 216+ branches

spread all over Pakistan including the Northern Areas of the country where no other

private bank has ventured so far. Expansion of branches is based on a policy of

maintaining a balance between the urban and rural areas with a view to offering

services even in the remote areas of

Pakistan.

In six week internship program, I have worked in different departments like

General banking, trade department and credits department. I have learned about the

banking from experienced managers running these departments.

This report contains the information about SBL that I have gathered during my six

weeks internship period. This report basically deals in General banking, trade and

credits where I worked.

The bank is using SWIFT for transfer of information about imports and exports. SBL

Multan branch basically cover three departments like General Banking Department,

Trade department and credit department.

To open an account the customer has to meet Operations Managers with an

introducer. The introducer must have an account in bank, or introducer might be the

employee of the bank. Soneri bank strictly followed the account opening procedure.

The bank cant open an account of customer before the verifications comes from

NADRA. SBL has different types of account like, Basic Banking A/C. Current account,

PLS and Soneri PLS A/C.

They store all the information of their customers in data base. After entering data, they

assigned customer an ID is known as Customer Relationship Management ID.He

told me with the help of this ID their different branches can easily get information about

customer account.

In clearing and remittances section they have very efficient system. They clear the

cheque through NIFT (National Institute of Facilitation Technology) where SBP

exits. In remittances they told me about T.T D.D.and pay orders. Now people prefer

D.D instead of T.T. D.D is a banker instrument and draft used for outside the city. It

is valid for six month. Bank use pay order, when the payment is to be made with in

a city.

In trade the bank has good repute as compare to other in Multan. The leading

industries of Multan are trading through SBL.

In corporate finance the bank deals only worthy enough industries.

In consumer finance bank management always try to satisfy them. Bank offer

different products for its customers like

· Ghar Finance

· Car Finance

· Generator Finance

· Soneri personal finance

At the end of this report, on the basis of my observations during internship, financial

analysis and SWOT analysis of SBL is provided. Suggestions are also recommended

as per learning from analysis. This report will provide better and comprehensive

learning about Soneri Bank Limited.

TABLE OF CONTENTS

Dedication I

Preface II

Acknowledgement III

Executive Summary

IV

Chapter 01 Overview of Soneri Bank Limited

1.1 Bank Introduction

1.2 History

1.3 Vision Statement

1.4 Mission Statement

1.5 Organization Nature

1.6 Distinctive Characteristic

1.7 Board of Directors

Chapter 02 Organizational structure/ hierarchy

2.1 Management 2.2 Organizational Structure

2.3 Hierarchy 2.4 Company description Chapter 03 Products Information

3.1 products

3.1.1 Saving account

3.1.2 Term deposit

3.1.3 Current account

3.1.4 Basic banking account

3.1.5 Ikhtiar account

3.2 Services

3.2.1 Online banking

3.2.2 SMS Alert

3.2.3 SME FINENCE

3.2.4 Agriculture finance

3.2.5 Lockers

3.2.6 Consumer finance

3.2.7 Electronic banking

3.2.8 Internet banking

3.2.9 Cheque free banking

3.2.10 Telephone banking

3.2.11 Utility bills services

3.3 Departments of SBL

3.3.1 General Banking

3.3.1.1 Account Opening

3.3.2 Clearing

3.3.3 Remittances 3.3.4 Cash Department

Chapter 04 Activities I Performed As an Internee

4.1 Field Of Activities 4.2 Work Done By Students

4.3 Dilemmas Faced By Organization

Chapter 05 SWOT Analysis

5.1 Strengths

5.2 Weaknesses

5.3 Opportunities

5.4 Threats

5.5 Conclusion of SWOT Analysis

Chapter 06 Financial Analysis

6.1 overview of financial analysis

6.2 Horizontal Analysis

6.3 Vertical Analysis

6.4 Ratio Analysis

Chapter 07 Conclusion

7.1 Conclusion

Chapter 08 Suggestions and Recommendation

8.1 Suggestions

8.2 Recommendation

8.3 References

8.4 Appendixes

CHAPTER NO.1

1.1 BANK INTRODUCTION

Soneri bank Limited is engaged in banking service, and operate more than 216+

branches including Islamic Banking Branches in Pakistan. The bank operates in four

segment corporate finance, trading and sales, retail banking and commercial banking.

Corporate finance includes syndicated financing and services provided in connection

with mergers and acquisitions, underwriting, privatization, securitizations, debt, equity,

syndication, Initial public offers (IPO) and secondary private placement. Trading and

sale segment includes fixed income, equity, foreign exchange, commodities, credit,

funding, own position securities, brokerage debt and prime brokerage. Retail banking

segment includes retail lending and deposit, banking services, private lending and

deposit, trust and estates investment advice and merchant/ commercial/ corporate

cards. Commercial banking includes project finance, real estate, export finance, trade

finance, factoring and leasing. The essence of the bank’s business philosophy is to

cater to the banking requirements of small & medium sized entrepreneurs, providing

them qualitative & competitive services with emphasis on encouraging exports. Nearly

forty percent of our credit portfolio is related to export financing and credit decisions are

taken within 48 hours.

Picture shows (seated from left) Mr.Amin Feerasta, Senior EVP, Soneri Bank Limited

(SBL),Mr.Humayun Bashir, CGM, IBM, Mr. Atif Bajwa, President & CEO, SBL,

Mr.Muhammad Haider Devjiane, EVP & CIO ,SBL , and Mr. Qamar Wahab, Senior

EVP , SBL, along with Mr.Muhammad Ovais, CEO, Selling Business Systems

(Standing second from left) with respective teams

1.2 History of SONERI BANK LIMITED

Directors from international financial institution to open the market and involve the

private sector in the economy of the country got the leading investors from private

sector and one of them was the “Rupali Group”. This group belongs to “Feerasta

Family”. This group started its business before 1971 partition of East Pakistan and

come to West Pakistan after 1971.

SONERI BANK LTD was incorporated on 28th September 1991, the first branch in

Lahore was opened in 16th April 1992 and second branch in Karachi came into

business on 9th May 1992. The head office is in Lahore and the central office is in

Karachi.

The authorized and subscription capital is Rs.300 million Out of which Rs.150 was

million was distributed by Feerasta Family and Rs.150 million worth share was offer to

general public.

There was over subscription of 28 times more than the number of shares offer for

subscription and the over subscription NRPs was 3 times more. The bank currently

operates 216 branches, spread all over Pakistan including the Northern Areas of the

country. The bank’s expansion policy is based on the principle of maintaining a balance

between the urban and rural areas. This created its own challenges and opportunities,

and forced them to evolve an outward-looking strategy in terms of their market

emphasis.

As a result, Soneri Bank developed a geographically diversified assets base instead of

a concentrated and heavy reliance on business in the major commercial centers of

Karachi and Lahore, where most other banks have their operational Head Offices.

Pleasant and sophisticated atmosphere has been provided in the branches which are

fully air conditioned and computerized.

The bank after eight months of functioning published its first Balance Sheet as on 31st

December, 1992 responding with great satisfaction to the confidence reposed in it by

its shareholders.

Among the new banks, Soneri is a front runner and continuous to make rapid strides in

respect of deposits. The bank is now in the process of consolidation with ‘care and

caution’ and steady growth on sound footings with best possible services for its

customers as the guiding principles.

The Rupali Group has an investment of more than Rs.10 billion in industrial sector

other than “SONERI BANK LTD”…

1.3 VISION STATEMENT

“To provide quality services to its customers through adoption of best practices and

full exploitation of I.T advancement, culminating at a leading position amongst its

peer banks”

“Stronger banking relationships, increasing customer confidence”

1.4 MISSION STATEMENT

To develop Soneri bank limited into an aggressive and dynamic financial institution

having the capabilities to provide personalized service to the customers with cutting

edge technology and a wide range of products, and during the process to ensure

maximum return on assets with ultimate goal of serving the economy and society.

“We have more time for you”

1.5 Nature of the Organization

Soneri Bank Limited offers a range of business for their customers;

1.5.1 Retail Banking

1.5.2 Corporate Banking

1.5.1 RETAIL BANKING

· Refers to banking in which individual customers use local branches of larger

commercial banks for their financial activities.

· Banking institutions execute transactions directly with consumers, rather

than corporations or other banks.

· Services offered include;

o Savings and checking accounts

o Mortgages

o Personal loans

o Issuance of debit/credit cards

o Certificates of deposit (CDs

1.5.2 CORPORATE BANKING

· Corporate Banking offers tailor made products / solutions as required by

corporate customers which includes:

o Funded facilities, ranging from short to medium and long term

lending.

o Trade related financing.

o All sorts of non-funded facilities / services which include

Cash receipts / payments, Remittances, Collections,

guarantees, letter of credit etc.

o Customized products / solutions.

· SBL covers cash management, foreign exchange, business-to-business

payments, trust, custody, commercial lending, trade finance, and other

corporate banking issues.

1.6 Distinctive Characteristic

Soneri Bank offered the following unique services to their customers which are

given below.

· Full range of corporate and retail banking services with special emphasis to

provide qualitative and competitive services to small and medium

entrepreneurs.

· Highly professional and efficient treasury operations and a world wide

network of correspondents. A complete range of products for trade Finance,

one of their core banking activities.

· Funds transfer services through On-Line banking and the bank own ATMs

network, cheque-free banking and Soneri VISA Debit cards are just a few of

their value added services.

· A wide range of attractive saving schemes to suit all segments of investors,

Consumer finance Schemes and Islamic Banking products catering to the

needs of a variety of consumers.

· Future products include unique Investment plans under Banc

assurance business in collaboration with M/s. New jubilee Life

Insurance Company.

1.7 BOARD OF DIRECTORS

1.7.1 BOARD OF DIRECTORS

S.No. Name of the Director Designation

01. Mr. Alauddin Feerasta Chairman

02. Mr. Mohammad Aftab Manzoor President & CEO

03. Mr. Nooruddin Feerasta Director

04. Mr. Inam Elahi Director

05. Mr. Muhmmad Rashid Zahir Director

06. Mr. S. Ali Zafar Director

07. Mr. Manzoor Ahmed Director

(NIT Nominee)

08. Mr. Shahid Anwar Director

(NIT Nominee)

1.7.2 SUB COMMITTEES OF THE BOARD

1.7.2.1 Audit Committee of Board

S.No. Audit Committee of Board Designation

01. Mr.Nooruddin Feerasta Chairman

02. Mr. Inam Elahi Member

03. Mr. Muhammad Rashid Zahir Member

04. Mr. Shahid Anwar Member

05. Mr. Muhammad Altaf Butt Secretary

1.7.2.2 Credit Committee of Board

S.No. Credit Committee of Board Designation

01. Mr. Alauddin Feerasta Chairman

02. Mr. NooruddinFeerasta Member

03. Mr. Mohammad Aftab Manzoor Member


05. Mr. Muhammad Altaf Butt Secretary

1.7.2.3 Risk Management Committee of Board

S.No. Risk Management Committee of Board Designation

01. Mr. Inam Elahi Chairman


03. Mr. Shahid Anwar Member

04. Mr. Javed H. Siddiqi Secretary

1.7.2.4 Human Resource Committee of Board

S.No. Human Resource Committee of Board Designation

01. Mr. Manzoor Ahmed Chairman



04. Mr. Shahid Anwar Secretary

05. Ms. Anita Lalani

Chapter 02

2.1 THE MANAGEMENT

2.1.1 MANAGEMENT TEAM

S. No Management Team Designation

01. Mr.Mohammad Aftab Manzoor President & Chief Executive

02. Mr. Amin A. Feerasta Head of Establishment

03. Mr. Nemat Ali Head – International Division

04. Mr. Abdul Aleem Qureshi Head of Retail Banking

05. Mr. Shahid Abdullah Country Treasurer

06. Mr. Zafar Abrar Naqvi Head Credits

07. Mr. Iqbal Zaidi Head Compliance & Controls Group

08. Mr. Bilal Asghar Head of Corporate & Investment Banking

09. Mr. Sheikh Muhammad Moeen Chief Financial Officer

10. Ms. Anita Lalani Head Human Resources

11. Mr. Muhammad HaiderDevjianie Chief Information Officer

2.1.2 MANAGEMENT COMMITTEE

S. No. Management Committee Designation

01. Mr. Mohammad Aftab Manzoor Chairman

02. Mr. Amin A. Feerasta Member

03. Mr. Nemat Ali Member

04. Mr. Abdul Aleem Qureshi Member

05. Mr. Shahid Abdullah Member

06. Mr. Zafar Abrar Naqvi Member

07. Mr. IqbalZaidi Member

08. Mr. Bilal Asghar Member

09. Mr. Sheikh Muhammad Moeen Member

10. Ms. Anita Lalani Member

11. Mr. Muhammad HaiderDevjianie Member

12. Abbas Hatim Secretary

2.1.3 EXECUTIVE CREDIT COMMITTEE

S. No. Executive Credit Committee Designation

01. Mr. Mohammad AftabManzoor Chairman


03. Mr. Nemat Ali Member

04. Mr. ZafarAbrarNaqvi Member/ Secretary

05. Mr. IqbalZaidi Member


2.1.4 ASSETS AND LIABILITY COMMITTEE

S. No. Assets and Liability Committee Designation




04. Mr. Shahid Abdullah Member/ Secretary

05. Mr. Zafar Abrar Naqvi Member



08. Mr. Javaid Hussain Siddiqui Member

2.1.5 INVESTMENT COMMITTEE

S. No. Investment Committee Designation






06. Mr. Muhammad Imran Khan Secretary

2.1.6 I.T. STEERING COMMITTEE

S. No. I.T. Steering Committee Designation





05. Mr. Muhammad Haider Devjianie Member

06. Mr. Siraj BaquerJaffri Member/ Secretary

2.1.7 CREDIT RISK MANAGEMENT COMMITTEE

S. No. Credit Risk Management Committee Designation



03. Mr. ZafarAbrarNaqvi Member


05. Mr. Javaid Hussain Siddiqui Member/ Secretary

2.1.8 MARKET RISK MANAGEMENT COMMITTEE

S. No. Market Risk Management Committee Designation




04. Mr. Javaid Hussain Siddiqui Member/ Secretary

05. Mr. Affan Shamim Member

2.1.9 CHIEF FINANCIAL OFFICER

Mr. Sheikh Muhammed Moeen

2.1.10 COMPANY SECRETARY

Mr. Muhammad Altaf Butt

2.2 Organizational Chart

2.2.1 Designation Vice:

BOARD OF DIRECTORS

CHAIRMAN

DIRECTOR

CHIEF EXECUTIVE OFFICER

CHIEF FINANCIAL OFFICER

GENERAL MANAGER GENERAL MANAGER

SOUTH NORTH

EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

GRADE I OFFICER

GRADE 2 OFFICERS

GRADE 3 OFFICERS

JUNIOR OFFICER

NON-CLERICAL STAFF

EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT ASSISTANT VICE PRESIDENT

GRADE I OFFICER

GRADE 2 OFFICERS

GRADE 3 OFFICERS

JUNIOR OFFICER

NON-CLERICAL STAFF

2.2.2 Departmental Chart:

MAIN

BRANCH

GENERAL ADVANCES

BANKING

INTERNATIONAL BANKING

DEPARTMENT

DEPARTMENT

DEPARTMENT

CLEARNING

DEPOSIT

ACCOUNTS

REMITTANCE CONSUMER

CORPORATE

DEPARTM-

DEPARTM DEPARTME-

DEPARTMENT FINANCE SECTOR

ENT

-ENT

NT

DEPARTMENT

ADVANCES

GOVT BILLS

SECURITIES

DEPARTMENT

DEPARTMENT

IMPORT FOREIGN

EXPORT

CURRENCY

DEPARTMENT

DEPARTMENT

DEPARTMENT

2.3 Hierarchy

2.3.1 Top Level Management

Chief Executive Officer

Executive Vice president

Senior Vice president

Vice president

Group Vice President

Assistant Vice President

Manager

Deputy Manager

Assistant Manager

Officer

Deputy Officer

Assistant

2.3.2 Middle and Lower Management

DIRECTORS

AUDITORS SECRETARY

SEVP

EVP

VP

AVP

GRADE 1

GRADE 2

GRADE 3

2.3.3 Branch Hierarchy

Chief/Branch Manager

Manager Operation

Managers

Deputy Managers

Assistant Managers

Officers

Deputy Officers

Assistant Officers

2.4 Company Description

Soneri Bank Limited provides a range of banking products and services in Pakistan.

The company operates through four segments: Corporate Finance, Trading and Sales,

Retail Banking, and Commercial Banking. The Corporate Finance segment provides

syndicate financing; and services in connection with mergers and acquisition,

underwriting, privatization, securitization, research, debts, equity, syndication, IPO, and

secondary private placements. The Trading and Sales segment includes fixed income,

equity, foreign exchanges, commodities, credit, funding, lending and repos, brokerage

debt, and prime brokerage services. The Retail Banking segment offers retail lending

and deposits, banking services, trust and estates, private lending and deposits, trust

and estates investment advice, merchant/commercial/corporate cards, and private

labels and retail services. The Commercial Banking segment includes project finance,

real estate, export finance, trade finance, and factoring, leasing, lending, guarantees,

bills of exchange, and deposits services. In addition, it provides Islamic banking and

electronic banking services. The company offers its products and services through a

network of 216+ branches and 243+ automated teller machines. Soneri Bank Limited

was incorporated in 1991 and is based in Lahore, Pakistan.

Chapter no.3

3.1 Products

3.1.1 Saving Account

3.1.1.1 PLS Saving

PLS Savings Bank Account is a simple, straight forward Savings Bank Account with a

great convenience for individuals (in single or joint names) minors (to be operated by

the guardian) charitable institutions, provident fund and other funds of benevolent

nature local bodies, autonomous corporations, limited companies, firms associations,

educational institutions, etc.

The account may be opened with any amount; however accounts with average monthly

balance below Rs.5000- on any day shall be subject to Service Charges as per our

Schedule of Charges in force..

The PLS Savings Account entitle Account Holder to avail amazing facilities such

as:

1.Chequing Account facility with no limit on a number of transactions.

2.Free Cash Deposit and Withdrawal facilities through your bank branch

3. Free Clearing facility to deposit cheques of other banks within the city

4. Online Funds Transfer through Cheques to any account across Pakistan through

your bank branch

5. Online Cash Deposit, Withdrawal and Funds Transfer through cheques from any of

our branch across Pakistan

6. Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers

and Free Rupee Traveler’s Cheque through your bank branch

7. Standing Orders facilities

8. Safe Deposit Locker at designated branches

9. Statement of Account on six monthly basis

10. All purchases and cash withdrawals made with the Soneri Banking Cards is

deducted directly from your bank account

11. Free Cash Withdrawal on ATMs owned by Soneri Bank

12. Govt. Withholding Tax apply on all cash withdrawals and profit credited into account

13. Zakat is deductable from Account however Zakat exemption forms are

accepted…………

SPECIAL NOTICE DEPOSITS

Period Rate of Return

7 days 6.00% p.a

30 days 8.00% p.a

3.1.1.2 Soneri Savings

Soneri Savings Account is a flexible and fast growing cumulative profit account with a

great convenience for individuals (in single or joint names), minors (to be operated by

the guardian), charitable institutions, provident fund and other funds of benevolent

nature local bodies, autonomous corporations, limited companies, firms associations,

educational institutions etc. The rate of Profit in this savings scheme increases as your

balance increases without demanding and negotiating with us. The account may be

opened with any amount.

Soneri Savings Bank Account entitles Account Holder to avail amazing facilities

such as:

1. Chequing Account facility with no limit on a number of transactions

2. Free Cash Deposit and Withdrawal facilities through your bank branch



your bank branch




and Free Rupee Traveler’s Cheque through your bank branch

7. Standing Orders facilities

8. Safe Deposit Locker at designated branches

9. Statement of Account on six monthly basis

10. All purchases and cash withdrawals made with the Soneri Visa Debit Cards is


11. Free Cash Withdrawal on ATMs owned by Soneri Bank

12 .Govt. Withholding Tax apply on all cash withdrawals and profit credited into account

13. Zakat is deductable from Account however Zakat exemption forms are accepted

Provisional Rates

ANNUALISED RATES OF EXPECTED PROFIT FOR DIFFERENT TYPES OF PLS

DEPOSITS

Effective: July 01, 2012.

Period: July- December, 2012.

1. Operational facility like Current Accounts without any restriction on amount and

number of Cheques.

2. Profit paid on monthly basis on daily products.

Balance Rate of Return p.a

Up to Rs. 100,000 6.00 %

Over Rs. 100,000 but up to Rs.1.0 Million 6.50 %

Over Rs. 1.0 Million but up to Rs. 10.0 Million 7.50 %

Over Rs. 10.0 Million but up to Rs. 50.0 Million 8.50 %

Over Rs. 50.0 Million 9.00%

3.1.2 Term Deposit

3.1.2.1 Term Deposit Account

Term deposit is offered by Soneri Bank to Individuals (in single or joint names), Minors

(to be operated by the guardian), Charitable Institutions, Provident Fund and other

funds of benevolent nature local bodies, Autonomous Corporations, Limited Companies,

Firms, Associations, Educational Institutions etc who have the intention of retaining their

savings for a fixed period thereby earning a higher rate of profit. The Term Deposit

allows you to save a fixed amount in Pak Rupee for a set period ranging from 1 month

to 60 months at a provisional and attractive profit rate. The depositor has the option to

reinvest the deposit automatically with or without profit.

Upon maturity, your deposit is automatically renewed for the same tenor at the

prevailing profit rate unless you instruct otherwise.

Pre-matured encashment is allowed without any penalty however you will receive profit

less than originally contracted.

Govt. Withholding Tax apply on all cash withdrawals over Rs. 25,000/- and profit

credited into account

Zakat is deductable from Account however Zakat exemption forms are accepted

Provisional Rates


DEPOSITS.

Effective: July 01, 2012

Period: July- December, 2012

Term Deposits (11/11 Scheme) Minimum Deposit Rs 25,000/= Deposits Held as on

01-05-2011 Onwards.

Tenor

Monthly

Intervals

Quarterly

Intervals

Six Monthly

Intervals

Yearly

Intervals

At Maturity

1 Month

8.00% --- --- --- 8.00%

3 month 8.44 % --- --- --- 8.44 %

6 month

8.84 % 8.90 % --- --- 9.00 %

1 year

10.25 % 10.34 % 10.48 % --- 10.75 %

2 years 9.98 % 10.07 % 10.19 % 10.45 % 11.00 %

3 years

9.73 % 9.81 % 9.93 % 10.18 % 11.25 %

3.1.2.2 Diamond Deposit Certificate

Soneri Diamond Deposit Certificates provide investment opportunities to small and

medium income group investors, Charitable / Benevolent Funds, Trusts, Societies,

Associations and Clubs with an attractive return.

1.Certificates are issued for fixed periods of 1, 2 and 3 years.

2.Annualized Rates of expected Profit: from 10.50 % p.a. to 10.75 % p.a.

3.Profit paid at monthly intervals calculated from date of deposit.

4.Minimum Investment Rs. 25,000/-

5.Financing facility upto 90 % of Deposit available.

Provisional Rates


DEPOSITS.

Effective: July 01, 2012

Period: July - December, 2012

Term %age

1 Year 10.50%p.a

2 Year 10.60%p.a

3 Year 10.75%p.a

3.1.3 Current Account

Current is a nonprofit account, flexible account with a great convenience for individuals

(in single or joint names), minors (to be operated by the guardian), charitable

institutions, autonomous corporations, limited companies, firms, associations,

educational institutions, etc.

Current account may be opened with any amount; however accounts with average

monthly balance below Rs.10, 000- on any day shall be subject to Service Charges as

per our Schedule of Charges in force..

Current Account entitles account holder to avail amazing facilities such as:

1.Chequing Account facility with no limit on a number of transactions

2.Free Cash Deposit and Withdrawal facilities through your bank branch

3.Free Clearing facility to deposit cheques of other banks within the city

4.Online Funds Transfer through Cheques to any account across Pakistan through your

bank branch

5.Online Cash Deposit, Withdrawal and Funds Transfer through cheques from any of


6.Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers

7.RupeeTraveler’sCheque through your bank branch

8.Import, Export and other business transactions

9.Standing Orders facilities

10.Safe Deposit Locker at designated branches

11.Statement of Account on six monthly basis

12.All purchases and cash withdrawals made with the Soneri Banking Cards is


13.Free Cash Withdrawal on ATMs owned by Soneri Bank

14.Facility of Running Finance can be requested for specific purpose against collaterals

and nominal markup rates being charged on quarterly basis

15.Govt. Withholding Tax apply on all cash withdrawals

16.All purchases and cash withdrawals made with the Soneri Visa Debit Cards is

deducted directly from your bank account..

3.1.4 Basic Banking Account

Soneri Bank Limited introduces Basic Banking Account Scheme with effect from July

01, 2006. Salient feature of the Scheme are:

1.Basic Banking Accounts may be opened in the Pak Rupees by individuals including

minors under guardianship.

2.The accounts may be opened by initial deposit of any amount.

3.No minimum balance requirement is applicable.

4.Basic Banking Account is non-profit bearing account.

5.4 withdrawals from a Basic Banking Account through cheques in one calander month

are free of service charges. Additional withdrawals through cheques in a calander of

month shall be subject to service charge @ Rs. 25/- per additional cheque.

6.Soneri Banking Cards for the use of Bank's Electronic Banking Service are issued

without charges for one time issuance of the cards.

7.unrestricted number of withdrawals from the account through ATMs are permissible

subject to applicable per day withdrawal limit for amounts in force.

8.Cash withdrawals from Soneri Bank's ATMs are free of Service Charge. Use of

another bank's ATMs shall be subject to Service Charges applicable.

9.Basic Banking Account holders may also use Soneri Bank's other Electronic Banking

Services subject to completion of applicable formalities which shall be subject to

applicable Service Charges.

10.Account have -NIL- balances for six consecutive months shall be closed without prior

intimation

11.Statement of Accounts are provided once a calander year at the year end.

12.ndividuals who already maintain PLS Saving Accounts/ Current Accounts with Soneri

Bank's branches may convert their accounts into Basic Banking Account. Please

contact any Soneri Bank branch for further details.

13.Govt. Withholding Tax apply on all cash withdrawals

3.1.5 Ikhtiar Current Account

Ikhtiar current is a nonprofit account, flexible account with a great convenience and

Multiple FREE Services for individuals (in single or joint names), minors (to be operated

by the guardian), charitable institutions, autonomous corporations, limited companies,

firms, associations, educational institutions, etc.

Ikhtiar current account may be opened with minimum amount of Rs. 50,000/-. To avail

free facilities maintenance of balance on or above Rs. 50,000/- is mandatory.

Ikhtiar Current Account entitles account holder to avail amazing facilities such

as:

1. Chequing Account facility with no limit on a number of transactions

2. Free Cash Deposit and Withdrawal facilities through any bank branch


4. Free issuance of Pay orders


your bank branch




8. RupeeTraveler’sCheque through your bank branch

9.Import, Export and other business transactions

10.Standing Orders facilities

11.Safe Deposit Locker at designated branches

12.Statement of Account on six monthly basis

14.No one-time and annual fee on VISA Classic Debit Card

15.All purchases and cash withdrawals made with the VISA Classic Debit is deducted

directly from your bank account

16.Free Cash Withdrawal on ATMs owned by Soneri Bank

17.Free SMS Alerts on cash deposits, withdrawals, funds transfers, inward cheque

clearing returns and Purchase transactions etc.

18.Facility of Running Finance can be requested for specific purpose against collaterals

and nominal markup rates being charged on quarterly basis

19.Govt. Withholding Tax applies on certain transactions

3.2 Services

3.2.1 Online Banking

On-Line Banking Services are available for all chequing account holder of our Soneri all

branches.

Services

Cash Payments of cheques drawn on any of our all branches.

Cash Deposits in to customers account maintained at any of our all branches.

Government Taxes/Duties

Cash Cheques or Cheques Applicable Government Taxes/duties

Under Collection if payable recoverable as per rules to third parties

Cash withdrawals

Per day Cash Withdrawals limit is restricted to Rs. 200,000.

Cash Cheques tendered by other than the account holders in person are subject to levy

of Govt. Taxes as per rules.

Cash Deposits

Deposits made by third parties into accounts of customers maintained at all branches

are subject to recovery of applicable with-holding tax, as per rules from the depositors.

Cheques under Collection

Proceed of Cheques drawn on our all branches are immediately credited to depositors

account subject to fulfillment of other conditions governing payment of cheques.

Govt. Taxes as per rules are recoverable on outstation collection cheques.

3.2.2 SMS Alert

Soneri Bank Limited now introduces to its ATM/ VISA Debit Card holders SMS Alert

Service, the best feature for warning about fraudulent transactions conducted against

Cards. Now you shall receive SMS Alerts on your mobile number registered with the

bank of all purchase transactions immediately after it has been made. Remember, an

early intimation can save you a lot of trouble later, and also protect your hard-earned

money.

It is very easy to sign up for our SMS Alert Service. Just fill the form available in our all

Branches or call us at the following numbers for your SMS Alert Activation:

111-SONERI (766-374) 0800-00500

3.2.3 SME Finance

Soneri Bank Limited, arguably at the forefront of commercial excellence, has

strengthened its product profile by introducing the following cost effective innovative

tailor made small and medium enterprises (SMEs) financing options on flexible terms to

its most discerning customers need. The Market segment for this business is primarily

SMEs and the bank stands committed to contribute in the process of national

development with an explicit focus in providing quality finance solutions.

SONERI SARMAYA SCHEME

SONERI AASAN SCHEME

SONERI TEJARAT SCHEME

3.2.4 Agriculture Financing

Following agriculture finance facilities are provided by Soneri Bank Limited at its

selected branches.

Production Loans;

Production loans are offered to meet the input and other working capital requirements

for farming, orchards and nursery, tunnel farming, storage of raw material,

transportation marketing grading and packing etc., by farmers.

Note: Financing facilities for all other purposes as detailed in SBP’s list of eligible items

for Agricultural Credit are also available.

Development Loans;

Development loans are offered for the purchase of tractors, trolley, thrashers, ploughs,

cultivators, laser levellers, combine harvesters, processing machinery, transport for

delivery of dairy, poultry, fisheries. Installation of tube-wells, turbine, land levelling, soil

improvement, land reclamation, seed processing units and for godowns, silos and cold

storages.

Livestock;

To meet the fixed cost and working capital requirements for cattle farming, cattle feed

units, dairy farming, poultry farming; poultry feed units and fish farming.

Repayment Period;

Principal amount of Finance plus mark-up thereon is repayable depending upon nature

of business ranging from one to five years. Revolving facility is also available under

specific terms.

Mark-up Rate;

All Type of Agriculture Loans uptoRs. 100,000/- 6M Kibor + 2%

Production Loan under Revolving Credit Scheme 6M Kibor + 3%

Working Capital for Live Stock i.e.(Dairy, Fisheries and Poultry etc) 6M Kibor + 3.5%

Development Loan (All kinds) 6M Kibor + 4%

3.2.5 Lockers

Specially designed lockers of various sizes to meet the requirements of applicants are

available at our designated branches. The lockers may be operated during the banking

hours of the branch.

ELIGBILITY

Only Account holders of our branches are eligible to apply for renting the Safe Deposit

Lockers.

3.2.6 Consumer Finance

3.2.6.1 Soneri Car Finance

Purpose of Finance;

Un-registered cars for private use.

Un-registered light commercial vehicles for private use.

Eligible Borrowers;

Salaried Persons

Self Employed Professionals

Business Persons

Financing Amount;

Upto Rs.1.5 Million

Down Payment;

Minimum 20% of the vehicle price.

Tenure;

Maximum repayment period is 5 years.

Mark-up Rate ;

1 year KIBOR + 4.5% p.a., to be revised on each anniversary of finance.

http://www.soneribank.com/Soneri-Car-Finance

Processing Fee;

Rs. 3500/- per approved application

Service Length;

Minimum 2 years of confirmed service with present employer in case of Salaried Person

Age;

At the time of Application for finance, applicant’s age must not be more than;

55 years in case of Salaried Person.

60 years in case of Self Employed / Business Person.

Debt Burden;

Total monthly repayment installments not to exceed 40% of the net income (taking into

account other financing facilities availed from other Banks/DFIs). .

Pre-Payment Penalty;

2% pre-payment penalty on outstanding principal amount of finance being pre-paid. .

Late Payment Charges;

Rs. 500/- per installment per month.

Insurance of Cars / Motor Vehicles;

Cars / Motor Vehicles financed are to be comprehensively insured with any of the

Insurance Companies listed on the approved panel of Soneri Bank.

Insurance Premium is payable up-front for each year during the life of the loan.

Charges;

Documentation Charges (at actual).

Income Estimation Charges (if applicable).

Subject to fulfillment of eligibility criteria.

** Subject to change from time to time.

3.2.6.2 Soneri Ghar Finance

Purpose;

Purchase / Construction of Property for self-occupancy.

Extension / Renovation on self occupied residential Property.

Product Categories;

Purchase of pre-constructed Residential Property.

Construction of residential property on self owned plot of land.

Extension / Renovation on self owned& occupied property.

Balance Transfer Facility (BTF) for any of the above finance.

Eligible Borrowers;

Salaried Persons

Self Employed Professionals

Business Persons

Financing Amount;

Purchase: UptoRs. 10 Million

Construction: UptoRs. 10 Million

Extension / Renovation: UptoRs. 03 Million

Balance Transfer Facility: UptoRs. 10 Million

Tenure;

Purchase: Upto 20 Years

Construction: Upto 20 Years

Extension / Renovation: Upto 07 Years

Balance Transfer Facility: Upto 20 Years

(Calculated from the date of original finance)

Mark-up Rates;

1 Year KIBOR + 4% p.a., to be revised on each anniversary of finance.

Processing Fee;

0.5% of Finance Amount, Min. Rs. of 2,500/=

Service Length;

Minimum 5 years of confirmed service with present employer in case of salaried person.

Age;

At the time of maturity of the Finance, applicant's age must not be more than;

60 years in case of Salaried person.

65 years in case of self Employed / Business person.

Debt Burden;

Total monthly repayment installments not to exceed 40% of the net income (taking into

account other financing facilities availed from other banks/DFIs).

Moratorium;

A moratorium of 12 months is allowed in case of finance for Construction

Pre-Payment Charges;

2% of the outstanding amount being prepaid


Rs. 500/- per Installment per month.

Insurance;

Mortgage Protection Insurance cover through Bank’s designated Insurance

Company.

Insurance premium on the insurance cover payable upfront each year

Charges;


Valuation Charges (at actual)

Legal Opinion Charges (at actual)

Income Estimation Charges (if applicable)

* Subject to fulfillment of our eligibility criteria.

** Subject to change from time to time.

3.2.6.3 Soneri Personal Finance (Currently only offered in Northern Areas)

Purpose of Finance;

To meet medical expenses for self or dependants of applicants.

To meet educational expenses of applicant’s children.

To meet travel expenses for self and family members.

To meet renovation expenses of self owned residential property.

To meet advance rent payment for rented residential property occupied by the

applicants.

To meet domestic needs.

Financing Amount;

Upto Rs.0.5 Million

Eligible Borrowers;

Salaried Persons

Tenure;

Maximum repayment period of 5 years

Mark-up Rate;

1 Year KIBOR + 8% p.a., to be revised on each anniversary of finance

Processing Fee;

Rs. 2,500/=

Service Length;

Minimum 2 years of confirmed service with present employer

Age;

At the time of maturity of the finance, applicant’s age must not be more than 60 years

Debt Burden;

Total monthly repayment installments not to exceed 40% of the net take home salary

(taking into account other financing facilities availed from other Banks/DFIs).

Pre-Payment Charges;

5% of the outstanding amount being prepaid


Rs. 500/- per installment per month.

Personal Loan Insurance;

Amount of Finance insured against life of borrowers, free of cost.

Charges;


* Subject to fulfillment of eligibility criteria.

**Subject to change from time to time.

*** total amount availed from other Banks / DFIs should not exceed the total clean finance

exposure.

3.2.7 Electronic Banking

3.2.7.1 ATM / VISA Debit Card

SONERI Debit Card brings to you the ultimate facility of spending and making

payments. You are privileged to avail the unmatched opportunities and benefits of the

CLASSIC Card and GOLD Card. With the ‘Buy Now – Pay Now’ facility,

you pay directly from your bank account. Use your SONERI Debit Card

wherever you are and whenever you want.

Safer than Carrying Cash

Pay dining, shopping, traveling, hotel and other bills at over 24 million outlets

displaying sign locally and internationally

Worldwide cash withdrawal facility at over 1 million ATMs displaying the sign

Ease of Cash withdrawal on 1 LINK and ATM networks across Pakistan

Credit facility available for GOLD Card Holders

Accessibility of multiple accounts from a single card

Makes money management easier

24/7 Automated Telephone Banking

24/7 Call Centre facility

Cheque-free banking

Funds Transfer facility between participating 1LINK member banks

Attractive rewards on spending

Soneri Gold & Classic

Debit Card

SCHEDULE OF CHARGES

VISA GOLD Debit Card

Description Charges

Joining Fee NIL

Annual Charges Rs. 550 Per Card

Supplementary Card Charges Rs. 500 Per Card

Card Replacement Charges Rs. 500 Per Card

PIN Re-issuance Charges NIL

VISA CLASSIC Debit Card

Description Charges

Joining Fee NIL

Annual Charges Rs. 250 Per Card

Supplementry Card Charges Rs. 150 Per Card

Card Replacement Charges Rs. 300 Per Card

PIN Re-issuance Charges NIL

ATM Cash Withdrawal

Description Charges

Local (at Soneri ATM) Charges NIL

Local (at 1-LINK/M.Net ATMs)

Charges Rs. 15 Per Card

International Transactions (ATMs

Displaying PLUS Logo)

Rs. 300Per Transaction or 3% of

transaction amount whichever is higher

Purchase: (Point of Sale Terminal)

Description Charges

Local NIL

International Rs. 300 Per Transaction or2.5% of transaction amount

whichever is higher

ATM Funds Transfer

Description Charges

Within any Soneri Bank Branch Rs. 25 Per Transaction

With any participating 1-Link Member Bank Rs. 50 Per Transaction

Other Charges

Description Charges

*Arbitration fee on disputed transaction Rupee equivalent of US $ 500

*Document Retrieval Charges Local Rs. 250 per retrieval

*Document Retrieval Charges

International

Rupee equivalent of US $ 10 per

retrieval

3.2.8 Internet Banking

You can Pay Utility Bills, Transfer Funds, and access your Account information

Anywhere Round-the-clock through SoneriDirect Internet Banking.

Features :

View your balance of account, latest transactions using Today’s Transaction

menu

View your Statement of Account. You can view them online, download them in

printable format

You can pay the utility Bills for you and your dear ones

Transfer Funds 24/7 from SoneriDirect

Receive SMS ALERT on your Financial Transactions done from SoneriDirect.

(For SMS ALERT Registration, Please call at 0800-00500 / 111-SONERI

(766374) or contact your Bank Branch)

Fund Transfer :

Transfer funds to any Soneri bank account

Transfer funds to any 1-LINK participating member bank’s account

Bill Payment :

Telecom/Mobile : Ufone, Warid, Telenor (Post Paid, prepaid)

Electricity : KESC, LESCO, GEPCO, HESCO.

GAS : SSGC,SNGPL.

History :

View history of your Soneri Internet Banking activities using History Menu (for the

requests sent using Internet Banking Only) It includes:

Funds Transfer History

Bill Payment History

Login History

Upcoming Attractions :

Cheque Book Request

Physical Account Statement Request

3.2.9 Cheque Free Banking

No Cheque book

300,000/ Per day

Time Saving

No Signature required

No charges Can be used at POS Terminal deployed branches

At present, our cardholders (ATM/Debit Cards and Soneri Banking Cards) may

withdraw cash through use of their cards at ATM of 1-Link Switch and M.Net Switch

member banks. However due to constraints on Cash Dispensing capacity of ATMs,

Soneri Banking Card holders may draw only up to Rs. 25000/- per day from ATMs.

Recognizing the fact that our customers do not always carry with them the cheque

books issued to them for operation on their account and that they may need to withdraw

cash in excess of the per day withdrawal limit for ATMs, Soneri Bank has introduced

CHEQUE FREE BANKING whereby our cards holders may withdraw cash up to a

maximum of Rs.300, 000/- per day through use of their cards at Point of Sale Terminals

installed at our designated branches.

Eligibility:

If you are having Soneri Banking Card, if you are maintaining a Soneri Bank PKR

Current or Savings account Single or Joint account with either signatory authorized to

operate the account, a further supplementary card can also be issued to the second

account holder. All Soneri Banking Card holders use debit card facility.

Service Availability:

CHEQUE FREE BANKING is available at branches equipped with point of sale (POS)

Terminals offering the following services during the counter hours on real time basis:-

Balance Enquiry:

The POS Terminal may also be used for Balance Enquiry of accounts linked to the card.

Cash Withdrawals:

CHEQUE FREE BANKING shall be made available through POS Terminal installed at

dedicated cash counters at branches manned by a cashier.

3.2.10 Telephone Banking

You can conduct your banking from any where and at anytime you want.

Dial 111 SONERI (111-766374) to reach our Customer Services Call Center.

With Telephone Banking, You can access all the information you need without making a

trip to the branch. This means no Parking to find, no traffic to flight and no standing in

line. At home, at work or on the go, all you need is a touch-tone telephone, your card

number and the T-PIN to access your bank account, 24 hours a day, 7 days a week.

ELIGBILITY:

If you are having Soneri Banking Card, if you are maintaining a Soneri Bank PKR

Current or Savings account Single or Joint account with either signatory authorized to

operate the account, a further supplementary card can also be issued to the second

account holder. All Soneri Banking Card holders use debit card facility.

AVAILABLE SERVICES:

Balance Enquiry

Today's Transaction by Voice

Instant statement of Account through Fax

Request for Computer Generated Statement of Account

Request for cheque book

Stop mark of lost Soneri Banking Card

Change your T-PIN

Latest Forex Rates

Product Information

Interactive voice prompt in English or Urdu language will guide you through the process.

Soneri Banking Card holders will have access to Telephone Banking basic facilities at

no additional cost.

Service Provided:

Request of checkbook

Lost Card Report

Balance Inquiry

Request of detailed statement By Fax

T-Pin Change

Request of detailed Statement

3.2.11 Utility Bills Payment

Soneri Bank VISA Debit Card holders can pay their bills using Soneri Bank Internet

Banking, Call Centre and ATM Services.

No need to stand in a bank queue.

No need to carry cash.

Easy way of paying bills for you and your dear ones.

Bills once paid are automatically registered in our system.

24 hours a day, 7 days a week service from any where across Pakistan or

worldwide.

Available Services : Service is currently available for payment of:

KESC, LESCO, GEPCO, HESCO.

SNGPL, SSGC.

Warid, Ufone, Telenor (Prepaid and Postpaid).

Easy Steps for Utility Bills Payments through Internet Banking:

Log on to www.soneribankonline.com.pk

or simply click on the SoneriDirect logo available our website

Enter User name and Password for SoneriDirect

Click on Bill Payment option

Select Billing Type Telephone/Electricity/Gas

Select the Company enter Consumer Number or Mobile number

Enter four digit F-PIN (generate your FPIN before any transaction for the security

purpose)

Confirm your transaction

Confirmation SMS and Email would be sent on your registered* Mobile Number

and Email Address

Easy Steps for Utility Bills Payments through Call Centre:

Call 0800-00500 or 111-766-374 from the same number available in our records

Enter your Soneri Visa Debit Card number. and T-PIN for the validation purpose

Press 0 to talk to the Phone Banking Officer

Ask Phone Banking officer to pay your desired Utility Bills

Confirmation SMS would be sent on your registered* Mobile Number

Easy Steps for Utility Bills Payments through ATMs:

Insert your Soneri Visa Debit Card in any Soneri ATM

Enter your ATM PIN code

Select Smart Option Utility Bill Payment

Select Utility Company Enter Consumer Number or Mobile Number

Confirm your transaction

Get a transaction receipt and Confirmation SMS on your registered* Mobile

Number

For the SMS Alerts Registration, simply call 0800-00500 or 111-766-374 from

your given number or you may contact your respective branch…

3.3 Departments of SBL

3.3.1 General Banking

3.3.1.1 ACCOUNT OPENING

Account opening are following form:

For single, sole proprietorship & joint personal

For partnership, limited Company, trust, clubs etc.

Necessary Requirements for Opening an Account for Single, Sole Proprietorship & Joint

Personal.

Copy of CNIC.

There must be account in the same branch of introducer.

KYC.

For sole proprietorship NTN certificate is required.

World Check.

Sole proprietorship submits the letter head.

Note:

After receiving verification from NADRA the people have opened the account.

Necessary Document for Partnership, Limited Company, Trust, Clubs:

All partners submit attested photocopy of CNIC.

Attested photocopy of partnership deed duly signed by all partners.

Firm’s registration attested photocopy should be submitted to registrar of firm.

Submit the authority letter in inventive in good deed of the person allowed to

maneuver on the account of the firm.

KYC is required.

NTN certificate is also required.

World Check.

3.3.2 Clearing

The second most significant of general banking is clearing. In clearing some vital

terminologies come which are

Banker cheques

Types of clearing

Standing Instruction

Daily Fund Transferring

IBDA

OBC

IBC

1) Banker Cheques

In the bankers cheque all the expenses of the bank are record on daily bases. Such as:

OCS charges

TCS charges

Stationary

standard water

Utility Bills

Generator Diesel

2) Types of Clearing

Main clearing type is:

Normal clearing

Special clearing

Intercity clearing

Normal Clearing

There are two type of normal clearing:

Internal cheque

External cheque

Internal Cheques:

It is that type of normal clearing in which are specified by the customer of the equivalent

branch. The clearing department test out the position of the account if the position of

account would be ok, then they credited the account of the next party and debited the

account of their customer.

External Cheques:

The cheque comes from the other bank in the same city is called external cheque.

These cheques are delivering by NIFT. Clearing department check the position of the

account holders. If the of the position account is ok, then they pass the transaction. In

case of not they return the cheque to NIFT.

Special Clearing:

NIFT given these cheques to bank and inform the bank to transfer the amount to

specific account. Bank is answerable to pass the transaction according to the instruction

given by the customer. Bank Charges on special clearing is Rs.600. The bank debits

these charges from customer account.

3) Standing Instruction

In this the customer gives the standing instructions to the banker. According to the

instruction given by the customer cash will be transfer to next part’s account.

Example:

If customers instruct the bank if his utility bills come, bank has right to obtain these bill

sand pass the transaction, or any others vouchers of customer etc.

4) Daily Fund Transferring

This is the account in which the bank transfers the funds to customer’s main account

where account holder wants.

Example:

Batta has an account in many cities like (Peshawar, Header Abad, Lahore, Rawalpindi

,and Karachi) .The Account’s manager of the company instruct the bank that banks

should transfer their fund to their main account in Rawalpindi. So HQ-Soneri Bank

instruct their branches that they should transfer the funds of Batta to company’s main

account in Rawalpindi.

5) IBDA (Bank Debit Adjustment)

In case of mutual expenses the head office have right to debit the account in IBDA.

When they have debited their account the Head office sends IDBA note to its branch.

For example:

Soneri G.M Abad had sent request for generator. Soneri Head Quarter has purchased

the generator on the behalf of G.M Abad branch, and debited the account of G.M Abad

Branch with that amount.

6) OBC (Outward Bills for Collection)

The bank sends outward bill collection to another bank in case where state bank is

notexist.OBC send by one bank to another bank, where State Bank is not exists.

7) Inward Bills for Collection (IBC)

The bank sends inward bills collection to another bank where state bank does not exist

.For other bank OBC would be IBC If one bank sends OBC to other bank.

Realization and Un-Realization:

Three steps are there in realization of cheque in clearing.

Shadow

Realized

Unrealized

Shadow:

Shadow just record and till the cheque is not clear.

Realized:

After receiving a notice of clearing from other bank then bank realized entry.

Unrealized:

We removed cheque from the shadow in case if cheque is not clear, then we unrealized

the cheque.

3.3.3 Remittances

Instruments of Negotiability:

The Draft on Demand(D.D)

The Pay orders

The ATM Cards

3.3.3.1 The Draft on Demand:

The large organization and even the large amount are sending through on D.D because

both parties are not certain due to risk. Therefore the customer request for D.D after

verifying the status of account of the party who is make this note in the favor of other

party. The bank is responsible for the payment to the party after issuing the draft.

NOTE: The validity of draft is six month and it is used for outside the city.

3.3.3.2 Pay Order

In case of uncertainty between parties then they requested for pay order instead of

cheque. Pay order reduce the risk. After cheque pay order is the most frequently using

bank’s instrument. After verifying the status of account of the party who is makes this

note in the favor of other party. The bank is responsible for the payment to the party

after issuing the pay order .NOTE: The validity of draft is six month and it is used for

outside the city.

3.3.3.3 ATM & CREDIT Cards

Soneri Banking Card offers well-located and 24-Hours-a-day, 365 days a year right to

use to ATMs crossways the country. When itinerant within Pakistan, make use of the

Card at Soneri bank’s own system of ATMs and thousand of ATMs displaying moreover

the 1-link or M-Net symbols.

Eligibility:

The account holder of Soneri bank can as well be valid for a Debit Card services. If

account holder is have Soneri Banking Card, if account holder is maintaining a Soneri

bank PKR Current or Savings account Single or Joint account with also participant

allowed to operate the account, a more supplementary card can also be issue to the

next account holder. All Soneri Banking Card holders use debit card facility.

ATM Access across All over Pakistan:

The services of cash withdrawals and Balance inquiry exist by at all of the ATM in

Pakistan.

Available Services:

Cash Withdrawal:

The owner of ATM card is able to withdraw cash as of your account(s) up to Rs.25,

000per day in multiples of Rs.500, and Rs.1, 000 currency notes.

3.3.4 Cash Department

In cash department these following books are maintain:

Receiving cashier books

Token Book

Paying cashier Book

Scroll Books

Cash Balance Book.

The transitions record in scroll book and cash receiver book when cash received at

counter. These books are balanced with each other at end of the day. The cheque or

any negotiable instrument when presented at counter for payment, they will be

record the entry in the token book and token is issued to the client. The token and

cashier make entry in the payment book and after that payment is made to the

payee. At the closing of the day, the token book and paying cashier book is

balanced .The consolidate figure of receiving and payments of cash is enter in the

balance book and drawn closing balance of cash .

Ending balance = opening balance + receipt – payment

The cash department is a crucial department. Since cash is the mainly liquid asset and

generally frauds are prepared in this department, therefore, further be concerned is

taken in this department and no one is permitted to enter or put down the area freely.

Mostly, cash area is grilled and its door is under the supervision of the head of that

department. The check the books preserve in this department.

Chapter no.4

4.1 Field Of Activities (Job Description)

I worked at Soneri Bank Limited, JARANWALA. As an internee. The bank Manager

told me about the rules and regulations and a brief history of the bank. Later on, he

told me the basics of some operations of the departments in the bank. Though, I was

supposed to serve in all possible departments, yet I served the Accounts department

the most.

4.2 Work Done By Students

During my six week internship, I fulfilled my assigned duties with integrity. I fulfilled all

my duties on time. At the accomplishment of each duty, my work was appraised by the

Branch manager. The duties that I have accomplished during the internship period are

given below.

· Opening new account of individuals customers

· Checking the balance of remittances ledgers.

· Passing the entries of daily fund transfers

· In clearing department, I checked the cheque of different banks and of the

customers.

· Passing entries of Utilities bills in credit or debit memo.

Well management allowed as working on those areas where the chances of errors are

less. During my internship, I’ve found that in banking sector concentration and

consistency is of utmost importance. Your little mistake can create big problem.

4.3 Dilemmas Faced By Organization

All these problems are faced by the SBL branch Jaranwala.

· Software security is not good. It is open to all restriction. Internal control is not

efficient. Use of Flash drive can cause virus in the system.

· In SBL non availability of IT professionals.

· No proper appraisal to evaluate performance of employees.

· Employees are not holding the proper position.

· Finance manager & IT professional is a same person.

· Sale promotion/marketing department are same in the SBL.

· Employees are not cooperative with the trainees / internees.

· There is too much manual work as compared to others bank.

· They introduced there DOT net software last year, so employees are not

complete trained.

· There is no CRO (customer relation officer) in the branch who proper guide the

new coming customers.

Chapter no.5

SWOT ANALYSIS

There are following strength weakness opportunity and threats for SBL;

5.1 Strength:

Loyal workforce and satisfied Customers.

SBL collaborate with different cellular companies to provide bank statement on

their customer’s cell phone.

The Pakistan Credit rating Agency Limited (PACRA) has maintained banks

credit rating. SBL has been awarded an “AA-” for long term and “A1+” for the

short term and “A+” for the Term Finance. Certificates reflecting bank’s well

maintained risk profile with preserved sound asset quality.

In order to maintain an effective communication of information regarding the

need of valued client bank has designed its website to be user friendly as

possible.

ATM card facility has proven to be success. The ATM Card can be used at

any branches who are the member of 1-Link agreement to withdraw money.

The Soneri ATM Card is also the Soneri Debit Card.

Providing superior service, innovation, specialized products and professional

guidance is the main objective of the Bank.

Branches are also being opened in distant areas like Gilgit and Remote areas

are being linked online. The Bank has its own WEB SITE which customer

can visit to acquire information about the Bank.

5.2 Weaknesses:

As per bank policy, advertising and publicity is not extensively emphasized.

Through advertisement customers could be kept abreast with the product and

services.

The main focus of SBL is major cities of Pakistan. It’s direly needed to extend

its network and people should be educated about the functioning of bank.

Poor employee development and promotion. During the training the trainer

couldn’t gave them proper information. So the trainee faces problem.

Defensive approach in lending.

bank are in any other country. So the bank has

to incur additional cost for correspondent banking.

5.3 Opportunities:

In the prevailing scenario, SBL should penetrate further and capture

various corporate customer as well as retail customer by expanding their

network.

In addition to the excellent routine banking, it has earned a good name by

offering special products like Soneri car finance, ghar finance and personal

finance. So the penetration of these products could enhance the market

share

SBL can enjoy handsome return its funding base by investing in capital

markets in the foreign countries.

If SBL focusing on advertisement it would be good for organization, because

promotions makes people know about the products of SBL.

Management should also open new branches is rural areas to capture market

share.

5.4 Threats:

Some developments in the external environment represent threats. Soneri Bank

is as such facing no large threats. Except that there are very large numbers of private

banks in the market which are providing the same services to its customers. They can

overcome this threat by:

· Delivering the benefits better than any actual or potential competitors.

· Target market be located and reached with a cost effective media.

· Bank can introduce new capabilities.

By offering products at the reasonable prices to which the common man should

have easy excess.

5.5 CONCLUSION OF SWOT ANALYSIS

Since SBL has decent strengths and opportunities in the market, its market share is

increasing and it is expanding its branches rapidly. So I concluded that SBL is adopting

and implementing on Growth Strategy.

Chapter no.6

6.1 Overview of FINANCIAL ANALYSIS

Financial Analysis refers to the assessment of a business to deal with the planning,

budgeting, monitoring, forecasting, and improving of all financial details within an

organization.

There are two types of analysis used in a business: Horizontal and Vertical.

Horizontal Analysis:

This method of analysis is simply comparing the same item in a company's financial

statements from two or more comparable periods, and then calculating the difference.

Vertical Analysis:

This type of analysis illustrates the relationship of certain components compared to the

whole, or the financial stability of a company. There are several different types of ratios

or indexes that may help us determine where the company currently stands in

relationship to where it wants to go.

The most common form of Vertical Analysis is using percentages to show one

account's relationship to another.

Soneri Bank Limited

Balance Sheet

As on the Year Ended December 31st

PARTICULARS YEARS YEARS YEARS

Assets: 2009 2010 2011

Cash and balances with treasury banks 6,471 7,248 8,959

Balances with other banks 1,497 1,400 879

Lending to financial and other institutions 2,755 2,582 813

Investments- net 29,537 34936 4,5776

Advances- net 48,727 54676 6,5340

Fixed assets 3,334 3,469 3,834

Deferred tax assets- net 108 385 362

Other assets- net 2,880 3,411 3,769

95,310 108,106 129,732

Liabilities:

Bills payable 1,763 1,858 1,571

Borrowings 9,386 12,371 14,557

Deposits and other accounts 73,548 82,017 99,734

Sub-ordinated loans 1,198 1,197 898

Liabilities against assets subject to

financial lease ----------- ----------- -----------

Deferred tax liability- net ----------- ----------- ----------

Other liabilities 1,612 1,745 1,995

83,507 99,188 1,18,755

Net Assets 7,803 8,918 10,977

Presented by

Share Capital 5,019 6,023 8,028

Reserves 2,004 2,029 1,183

Inappropriate profit 158 329 1,026

Surplus on revaluation of assets-net

of tax

622 536 740

7,803 8,917 10,977

Soneri Bank Limited

Income Statement

For the Year Ended December 31st

Rs In Millions

2009 2010 2011

Mark-up/return/interest earned 9,337 10,250 12,895

Fees .commission and exchange income 673 603 915

Capital gained dividend income 120 175 428

Other income 375 450 612

Total income 10,505 11,478 14,850

Mark-up/return/interest expense 6,603 7,204 8,997

Operating expenses 2,079 6,682 3,503

Provisions 1,633 1,452 1,272

Taxation 45 15 294

Total expenses 10,360 11,353 14,066

----------------------------------------------------------------------------------------------------------------

Profit after taxation 145 124 784

6.2 Horizontal Analysis

Soneri Bank Limited

Balance Sheet

Horizontal Analysis

As on the Year Ended Dec 31st

2009 2010 2011

Assets:

Cash and balances with treasury banks 100% 112% 138%

Balances with other banks 100% 93.5% 58.71%

Lending to financial and othr institutions 100% 93.7% 29.5%

Investments- net 100% 118% 154.9%

Advances- net 100% 112% 134.7%

Operating assets 100% 104% 114%

Deferred tax assets- net 100% 356% 535.1%

Other assets- net 100% 118% 130.8%

100% 113% 136.11%

Liabilities:

Bills payable 100% 105% 89%

Borrowings 100% 131% 155%

Deposits and other accounts 100% 112% 135%

Sub-ordinated loans 100% 99.9% 75%


financial lease ---------- ----------- -----------

Deferred tax liability- net --------- ----------- -----------

Other liabilities 100% 108% 123%

100% 118% 142%

Net Assets 100% 114% 140%

Presented by

Share Capital 100% 120% 160%

Reserves 100% 101% 59%

Unappropriated profit 100% 208% 649%

100% 86.1% 118%

Surplus on revaluation assets-net of

Tax 100% 114% 140%

Interpretation of Horizontal Analysis of Balance Sheet of Soneri Bank

Limited:

Horizontal Analysis of the Bank Balance Sheet has been prepared by taking the year

2009 as the base year ad the remaining years as compared to the base year. The

most liquid asset of the Bank such as cash and balances with treasury Bank has

increased from the year 2009 to 2010 that is 96% in 2009 and 110% in 2010, where as

other liquid assets such as balances with other Banks and lending to financial and

other institutions have shown a decreasing trend such as balances with other Banks is

90% in 2009 and 34% in 2010 and lending to financial institutions is 126% in 2009 and

87% in 2010. The reason for this declining trend might be the uncertain political and

law and order situations in Pakistan. All other assets such as mark-up accrued in local

currency, rent and repayments, suspense account, stamps on hand etc shows a

increasing trend as well as fixed assets, advances and investment also have shown a

positive trend. The overall effect is increased in total assets.

Liabilities especially current liabilities have shown a significant increase in 2008 to

2009. Bills payable increases from 76% in 2009 to 107% in 2010 and similarly

Borrowings from 144% to 160% and Deposits and other accounts from 102% to 122%.

This increase in current liabilities depicts that the Bank is performing its operations

successfully. Percentage of sub-ordinate loans almost same in both the years. Other

liabilities also increase from 139% to 167%. In the end the net assets increased from

108% to 118%. Soneri Bank Limited shows progress in all fields including the financial

position due to this the market share of Soneri Bank also increases.

Soneri Bank Limited

Income Statement

Horizontal analysis


Rs In Millions

2009 2010 2011

Mark-up/return/interest earned 100% 110% 138%

Fees .commission and exchange income 100% 89.59% 135%

Capital gained dividend income 100% 146% 357%

Other income 100% 120% 163%

Total Income 100% 109% 141%

Mark-up/return/interest expensed 100% 109% 136%

Operating expenses 100% 321% 168%

Provisions 100% 89% 78%

Taxation 100% 33.3% 653%

Total expenses 100% 109% 136%

Profit after taxation 100% 85.5% 540%

Interpretation of Horizontal Analysis of Income Statement of Soneri Bank

Limited:

Horizontal Analysis is done by taking the year 2009 as the base year and the

remaining years of the bank income statement when compared with the years 2010

and 2011 shows the following results the net mark-up interest income is 152% for 2010

and 141% for 2011 the percentage shows a negative trend the income decreases due

to the increase in interest expense for the bank this interest is paid by the bank on

different deposit offered to the public. Non mark-up interest income also decrease from

105% to 82% the non mark-up interest income is a major source of the bank income

and includes fee, commission, dividend income, income for dealing in foreign

currencies and other incomes. There is increase in interest expense as compared to

2010 i.e. in 2010 the interest expense is 151% and 161% in 2011. Profit after taxation

is 70% in 2010 and decreased in 2011 to 15% which is much lesser as compared to

2010. So the overall profit for the bank increases from 68% to 73% the major source of

increase in bank’s profit in 2011 is increase in unappreciated profit brought forward,

transfer from surplus on revaluation of fixed assets-net of tax.

6.3 Vertical Analysis

Soneri Bank Limited

Balance Sheet

Vertical Analysis

As on the Year Ended Dec 31st

2009 2010 2011

Assets:

Cash and balances with treasury banks 6.8% 6.7% 6.91%

Balances with other banks 1.6% 1.3% 0.68%

Lending to financial and other institutions 2.9% 2.3% 0.63%

Investments- net 31.% 32.3% 35.29%

Advances- net 51.1% 50.6% 50.36%

Fixed assets 3.5% 3.2% 2.95%

Deferred tax assets- net 0.1% o.36% 0.27%

Other assets- net 3.0% 3.15% 2.91%

100% 100% 100%

Liabilities:

Bills payable 1.85% 1.72% 1.21%

Borrowings 9.85% 11.4% 11.2%

Deposits and other accounts 77.1% 75.8% 76.8%

Sub-ordinate loans 1.26% 1.11% 0.69%


financial lease ----------- ----------- -----------

Deferred tax liability- net ----------- ----------- -----------

Other liabilities 1.6% 1.61% 1..54%

91.8% 91.7% 91.54%

Net Assets 8.18% 8.25% 8.46%

Presented by

Share Capital 5.27% 5.57% 6.19%

Reserves 2.10% 1.88% 0.91%

Inappropriate profit 0.17% 0.30% 0.79%

Surplus on revaluation of assets-netof

Tax 0.64% 0.50% 0.57%

8.18% 8.25% 8.12%

Interpretation of Vertical Analysis of Balance Sheet of Soneri Bank Limited:

The financial position of the Soneri Bank is continued to be excellent. The Vertical

Analysis of the Balance Sheet of Soneri Bank shows fluctuation in its assets and

liabilities but also shows a positive trend. When different items of the Balance Sheet

are compared with total assets the following results is obtained. The cash and balance

ratio is 7.6% in 2009 and 6.9% and 6.8% in 2010 and 2011, balances with other banks

shows the negative trend and decreases from 5.7% to 4.8% in 2010 and 1.6% in 2011,

similarly lending to financial institution also shows a negative trend. The advances

were 52.2% in 2009 and increased in 2010 to 58.8% and then decreased in 2011 to

51.1%. The Vertical Analysis of the fixed assets shows the similar trend, 2.8% in 2009

and increased in 2010 to 3.9% and then decreased in 2011 to 3.5%, the increase in

advances in 2010 was due to the increase in loans, cash credits and running finance.

Bills payable as the percentage of current assets is 2.1% in 2009 and 1.5% in 2010 but

slightly increases in 2011 to 1.6%, the increase is due to increase bills payable in

Pakistan while outside the Pakistan there are no bills payable. Borrowing increases

from 7.6% in 2009 to 14.4% in 2010 and then decreases to 9.8% in 2011, the increase

in 2010 was due to the increase in borrowing outside the Pakistan. As compared to

2011 the deposits decrease in 2010 from 78.3% to 76.1% but increase in 2011 to

77.2%, the reason for this increase in deposit is increase in saving and current

deposits. Other liabilities also have shown an increase from 1.3% to 1.6% in 2010 and

1.7% in 2011.

Shared holders Equity is 8.1% in 2009 and it increases in 2010 to 8.6% and then

decreases to 7.5% in 2011. However the overall trend is positive and strengthens the

banks financial positio

Soneri Bank Limited

Income Statement

Vertical analysis


Rs In Millions

2009 2010 2011

Mark-up/return/interest earned 88.88% 89.30% 86.84%

Fees .commission and exchange income 6.41% 5.25% 6.16%

Capital gained dividend income 1.14% 1.58% 2.88%

Other income 3.5%7 3.92% 4.12%

Total Income 100% 100% 100%

Mark-up/return/interest expensed 62.8% 62.76% 60.59%

Operating expenses 19.79% 23.37% 23.59%

Provisions 15.55% 12.65% 8.57%

Taxation 0.43% 0.13% 1.98%

Total expenses 98,62% 98.91% 94.73%

Profit after taxation 1.38% 1.09% 5.27%

Interpretation of Vertical Analysis of Income Statement of Soneri Bank Limited:

The vertical Analysis of the Income Statement indicates that the Net Mark-up for the

Soneri Bank is favorable and increases from 64% to 71% and then decreases to 70%

in 2011, the increase is due to the higher interest rate this is a positive trend because a

bank principle revenue source is usually interest from loans and interest. Total non-

mark-up interest income as a percentage of profit shows a decreasing trend and

decreases from 92% to 70% in 2010 to 58% in 2011, usually falling interest rates are

positive for a bank’s interest and because of this bank profit increases. Taxation for the

bank increase from 2009 to 2011 Soneri Bank has already achieved its target which is

settled done by the higher authorities of the bank. The bank income statement shows

that the bank net income for the year 2011 has increased as compared to previous

year. The soneri bank has achieved broad based growth in non-interest income during

the year just ended with all categories but mortgage banking income showing

improvements.

6.4 Ratio Analysis (Rs in Millions)

6.4.1 ROA

RETURN ON ASSETS =

Net Profit after Tax

× 100

Total Assets

Year 2009 (000) 2010 (000) 2011 (000)

Net Profit after Tax 145 125 784

Total Assets 95,310 1,08,106 1,29,732

Ratios 0.15% 0.12% 0.60%

Interpretation:-

The return of assets ROA is an important ration to calculate the firm’s profitability. It

also tells that, how efficiently and effectively the organization is using his assets. The

higher value of net income gives better return on assets. The increasing trend of this

ratio shows that, the bank is using his assets efficiently and earning good revenue.

6.4.2 ROE

Net Profit after Tax

RETURN ON EQUITY=

× 100

Equity

Year 2009(000) 2010(000) 2011(000)

Net profit after tax 145 125 784

Equity 7,181 8,381 10,237

Ratios 2.02% 1.49% 7.66%

Interpretation:-

The ROE share capital is actually the total called up value shares of any organization.

The shareholders are very interested in this ratio because with the help of this ration

they come to know that, how much profit is earned by equity. The decreasing trend of

return on total equity is not a good sign for the bank.

6.4.3 ROI

Return on investment = Net profit after tax x 100

Investment

Year 2009(000) 2010(000) 2011(000)


Investment 29,537 34,986 45,776

Ratios 0.49% 0.36% 1.71%

Interpretation:-

The ROI is the most important ratio of all. It is the percentage of return on funds

invested in the business by its owners. In short, this ratio tells the owner whether or not

all the effort put into the business has been worthwhile. If the ROI is less than the rate

of return on an alternative, risk-free investment such as a bank savings account, the

owner may be wiser to sell the company, put the money in such a savings instrument,

and avoid the daily struggles of small business management.

6.4.4 RFA

Return on fixed assets = Net profit after tax x 100

Fixed assets

Year 2009 (000) 2010 (000) 2011 (000)

Net Profit after Tax 145 125 784

Fixed Assets 3,334 3,469 3,834

Ratios 4.35% 3.60% 20.45%

Interpretation:-

The RFA is an important ration to calculate the firm’s profitability. It also tells that, how

efficiently and effectively the organization is using his assets. The higher value of net

income gives better return on assets. The increasing trend of this ratio shows that, the

bank is using his assets efficiently and earning good revenue.

6.4.5 NPM

Net Profit Margin = Net profit after tax x 100

Interest income

Year 2009(000) 2010(000) 2011(000)


Interest income 9,337 10,250 12,895

Ratios 1.55% 1.22% 6.07%

Interpretation:-

The Net profit margin tell that, either our markup covers our expenses or not which are

provided on goods and services. It also relates to company pricing policy and markup

matters. The decreasing trend of this ration is also not a good sign for the bank

6.4.6 IITI

INTEREST INCOME TO TOTAL INCOME=

Interest Income

× 100

Total Income

Year 2009(000) 2010(000) 2011(000)

Total Income 3,902 4,275 5,853

Interest Income 9,337 10,250 12,895

Ratios 41.79% 41.70% 45.38%

Interpretation:-

From an investor’s point of view, the organization IITI is more important and investors

can easily understand the firm’s profitability. In financial year 2009 it 41.79% but in

financial years 2009 its decreases and in 2011 it increases as 45.38%.

6.4.7 ROA

RETURN ON ADVANCES=

Interest Income

× 100

Total Loans

year 2009 (000) 2010 (000) 2011 (000)

Interest Income 9,337 10,250 12,895

Advances/total loan 48,727 54,676 65,340

Ratios 19.16% 18.75% 19.74%

Interpretation:-

This ratio measure that the performance or efficiency of management in

converting the return in the advances.

6.4.8 ATTD

Advances to Total Deposit = Advances x 100

Total deposits

Year 2009(000) 2010(000) 2011(000)

Advances 48,727 54,676 65,340

Total deposits 73,548 82,017 99,734

Ratios 66.25% 66.66% 65.51%

Interpretation:-

This ratio measure that the performance or efficiency of management

in converting the deposits in the advances.

6.4.9 DTAR

DEBT TO TOTAL ASSETS RATIO=

Total Debt

× 100

Total Assets

Year

2009(000)

2010(000)

2011(000)

Total Debt 88,129 99,725 1,19,495

Total Assets 95,310 1,08,106 1,29,732

Ratios 92.46% 92.24% 92.10%

Interpretation:-

A metric used to measure a company's financial risk by determining how much of the

company's assets have been financed by debt. Calculated by adding short-term and

long-term debt and then dividing by the company's total assets.

6.4.10 ATAR

ADVANCES TO TOTAL ASSETS RATIO

Advances

× 100 =

Total Assets

Year 2009 (000) 2010 (000) 2011 (000)

Advances 48,727 54,676 65,340

Total Assets 95,310 1,08,106 1,29,732

Ratio 51% 50% 50%

Interpretation:-

From an investor’s point of view, the organization earning per share (EPS) is more

important and investors can easily understand the firm’s profitability. In financial year

2009 it 51% but in financial years 2009 its increases and in 2011 it decreases as 50%..

6.4.11 ITAR

Investment

INVESTMENT TO TOTAL ASSETS RATIO =

× 100

Total Assets

Year 2009 (000) 2010 (000) 2011 (000)

Investment 29,537 34,986 45,776

Total Assets 95,310 1,08,106 1,29,732

Ratio 31% 32% 35%

Interpretation:-

From an investor’s point of view, the organization earning per share (EPS) is

more important and investors can easily understand the firm’s profitability. In financial

year 2009 it 31% but in financial years 2009 its decrease and in 2011 it increases as

35%.

6.4.12 EPSBT

Earnings per share before tax= Net profit before Tax

Number of Shares Issued

Year

2009(000)

2010(000) 2011(000)

Ratio 0.38%

0.23% 1.34%

Interpretation:-

From an investor’s point of view, the organization earning per share

(EPS) is more important and investors can easily understand the firm’s profitability. In

financial year 2009 it 0.38% but in financial years 2009 its decrease and in 2011 it

increases as 1.34%.

6.4.13 EPSAT

Earnings per Share after Tax= Net profit after Tax

Number of Shares Issued

Year 2009(000) 2010(000) 2011(000)

Ratio 0.29% 0.17% 0.96%

Interpretation:-

From an investor’s point of view, the organization earning per share (EPS) is more

important and investors can easily understand the firm’s profitability. In financial year

2009 it 0.29% but in financial years 2009 its decrease and in 2011 it increases as

0.96%.

Chapter no.7

7.1 Conclusion

As I have studied and analyzed SBL I found out that this a good bank as its working,

management is concerned. First of all the reason of this is that there is no directive

style in the management of Soneri Bank and which shows that there is decentralization

in the Bank and every branch manager can take decision according to the situation.

Soneri Bank is providing their customers with wide range of services including online

banking, phone banking and some of their new products in the pipeline; include ATM

network etc shows that Soneri Bank is taking good care of their customers. Soneri

Bank made heavy investments, towards enhancing its capabilities in the area of

automation and technology. Soneri Bank is well positioned to meet client needs, with

improved competitive advantage.

The essence of there business philosophy is to cater to the banking requirements of

small & medium sized entrepreneurs, providing them qualitative & competitive services

of conventional and all Islamic banking with emphasis on encouraging exports.

There success is because of having branches in many northern areas but they should

increase the number of branches to readily accessible to wide range of people in this

competitive environment, of this new products and services.

And from the financial and when I conduct comparative analysis with other banks I

found that it is somewhat better than others, and from the analysis of previous year I

concluded that it is improving and in 2011 profits are more than the previous year. So I

can say that Soneri Bank is performing very well.

Soneri bank Limited is engaged in banking service, and operate more than 216

branches including four Islamic Banking Branches in Pakistan. The bank operates

in four segment corporate finance, trading and sales, retail banking and

commercial banking.

Within the span of 19 years, SBL has become the one of the largest private bank in

the country. There are about 112 correspondent banks in 31 countries of the world.

Its capital and reserves level is increasing day-by-day. Their main objective is to

provide professional, personalized and efficient service to the clients at all the times.

SBL is always looking forward to provide new and better services than their

competitors.

They have told me that two more branches will be operational by the end of this year.

SBL is adopting and implementing on Growth Strategy. These branches are located in

commercial areas. . They have clearly defined values and norms and they strictly

practice their norms and values.

To develop Soneri bank Limited into an aggressive and dynamic financial institution

having the capabilities to provide personalized service to the customers with cutting

edge technology and a wide range of products, and during the process to ensure

maximum return on assets with ultimate goal of serving the economy and society.

We have more time for you!

Chapter no.8

8.1Suggestions

There are following suggestions for SBL,

· The life cycle of an organization is comprised of threats as well as opportunities.

If we say, today the rates of challenges are too high but simultaneously the rate of

opportunity is also too high. It is obligatory to try to make progress with consistency

as well as to adapt changes with the need of time, in order to cope up with both

conditions.

· In the prevailing scenario, SBL should penetrate further and capture various

corporate customer as well as retail customer by expanding their network.

· In addition to the excellent routine banking, it has earned a good name by

offering special products like Soneri car finance, ghar finance and personal

finance. So the penetration of these products could enhance the market share.

· SBL has launched another division know as Islamic Banking. This new aspect

will also attract a large number of people, who don’t want to deal with interest

bearing bank.

· If SBL focusing on advertisement it would be good for organization,

because promotions makes people know about the products of SBL.

· Management should also open new branches is rural areas to capture market

share.

· SBL can enjoy handsome return its funding base by investing in capital markets

in the foreign countries.

· If management of SBL giving facility of night banking to its customer. I

think it would also attract the other bank customers.

· Well at the same time SBL has some threats with different product line of their

competitors. Now what they have to do? They just reduce their mark up rate as

compare to their competitors. By doing this they may capture big market share. In

long run it would also beneficial for the bank.

· They must focus on their own Marketing team, rather than outsourcing, their

own Marketing team launches new ads.

· In Jaranwala I have seen that the huge customer traffic in trading area

(Corporate section) rather than retail customer. The management should launch

new offers for their old customer as well as dissatisfied customers of other

banks.

· Management should give their customer good mark up rate.

8.2 Recommendations

With the help of SWOT analysis we can see that the bank’s strength are much more

than its weakness but still there is room for some of improvements and innovations.

1- Marketing:

Soneri Bank Limited should have a separate marketing department. They should

advertise their products through media i.e. Radio and Television and through Banners,

neon signs.

2- Product development:

Soneri Bank Limited should concentrate on product development innovations

schemes.

3- Customer Feedback:

Feedback from customers should be taken on regular basis on the products that are

presently offered. Suggestions for improvement should also be asked for. Bank should

ask its valued customers to apprise them of any problem they face, listen to their

complaints and should have a positive attitude towards the customer feedback.

4- Customer Record:

Percentage of customers using the products and other financial services should be

taken, and of those customers who are turning over.

Such products should be offered which commensurate customer needs and facilitates

their relationship with the bank.

5- Innovations:

Each branch on its part should promote its products with value added innovative and

appealing marketing strategies that compliment customer needs

6- Reward and incentives:

Reward and incentives should be given to employees. Annual increment should be

applied with the New Year. Special allowances or bonus should be given to those

employees whose performance is better than others.

7- Employees Benefits:

Services of employees should be acknowledged and they should be rewarded either

through cash allowances or promotion.

8- Job Rotation:

Employees should be rotated on different jobs after the passage of certain time period.

9- Interaction with Employees:

Management should have strong and healthy interaction with the employees. They

should have a friendly attitude to them in order to increase their productivity.

10- More Branches:

Bank should increase its branches at the international level. Which not only increase

the number branches but also improve the Pakistan image in the international market.

8.3 References

Financial Statements 2009,2010,2011 of Soneri bank

www.soneribank.com www.microstrategy.com/financial-analysis

www.accounting-and-bookkeeping-tips.com/learning-

accounting/financial-analysis.htm

www.investopedia.com/terms/p/portfoliomanagement.asp

www.finance-lib.com/financial-term-capital-lease.html

forextrading.about.com/od/forexglossary/g/liquidity.html

8.4 Appendixes:

.

.

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Internship Report on Soneri Bank 2012

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