EXECUTIVE SUMMARY

According to our internship program, I completed my six weeks internship at Soneri Bank Limited, Thokar Niaz Baig LHR Branch. Soneri Bank Limited is playing an important role in the financial and economic development of Pakistan. The banking structure in Pakistan comprises of the following types, State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving banks, Cooperative banks, specialized credit institutions. The state bank of Pakistan is the Central bank of the country and was established on July 01, 1948. The network of bank branches now covers a very large segment of national economy. The State Bank of Pakistan issues the shares of these periodically. Bank employees and other common peoples can also purchase these shares and earn profit. I have given the working of each and every department in which I worked and learned during my internship.

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ACKNOWLEDGEMENT
In the name of ALLAH, the most Beneficial and the most Merciful, HE is the one who gave me courage and made me the super creature with great knowledge and able me to accomplish this work. Success is hard to achieve and I thanks to Allah Almighty for giving me valor to finish this internship report successfully. The internship has given me an opportunity to learn a lot about practical life and this will be memorable for me in the whole future academic and professional life. I hope that this experience will h elp me throughout my life. I pay special gratitude to my internship teacher sir Saleem Anjum who led me through this task whenever I needed his guidance. Hope for his guidance for the future projects as well. I express my fondest affection for my parents who prayed for my success and encouraged me. I appreciate and acknowledge the patience, understanding and love provided by them. It is of course the reward of their good wishes and kind blessings. The acknowledgement will remain incomplete without special thanks to my co-interns for their excellent cooperation and nice companionship during the internship. I am indebted to all the staff of Soneri Bank Limited, Thokar Niaz Baig Branch LHR who appreciated all my work, supervised me, provided their assistance to me when I needed and inculcated their knowledge in me. Without their cooperation, I would never have been able to complete this Internship contentedly and with pleasure.

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INTRODUCTION
A bank is a financial institution which deals with money and credit. It accepts deposits from individuals, firms, and companies at a lower rate of interest and gives at a higher rate of interest to those who apply for loan. The difference between the terms at which it borrows and those at which it lends from the source of its profit, it is also called the spread. A bank, thus, is a profit earning institute. Any bank that performs this functioning is called the commercial bank.

“A bank is a firm which collects money from those who have it spare. It lends money to those who require it.”

Soneri Bank Limited was formally incorporated on September 28, 1991. The first Branch commenced operations in Lahore on April 16, 1992, followed by the launch of Karachi's first Branch on May 09, 1992. The bank currently operates 186 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. Soneri Bank Limited is one of the fastest growing financial institutions of Pakistan. Bank continues to build a track in its quest for excellence. Soneri Bank Limited continually endeavors to develop a wider spectrum of innovative financial products based on consumer needs. The aim is to ensure customer satisfaction by providing high quality banking products and services. This is made possible by the professionalism of employees, all of whom are provided with the requisite training and opportunities to enable them to realize their full potential.

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Contents
EXECUTIVE SUMMARY ............................................................................................................................1 ACKNOWLEDGEMENT ………………………………………………………………………………….2 INTRODUCTION ..........................................................................................................................................3 TABLE OF CONTENT …………………………………………………………………………………….4 PROFILE OF THE BANKING INDUSTRY .................................................................................................6 PROFILE OF THE COMPANY ....................................................................................................................7 THE MANAGEMENT: ..............................................................................................................................8 VISION STATEMENT OF THE COMPANY ............................................................................................10 MISSION STATEMENT OF THE COMPANY..........................................................................................10 POLICIES OF SONERI BANK LIMITED: .............................................................................................11 CORE VALUES OF SONERI BANK LIMITED: ...................................................................................12 COMPETITIVE STRATEGY OF SNBL: ................................................................................................13 HIERARCHY MANAGEMENT OF THE COMPANY ..........................................................................15 HUMAN RESOURCE POLICIES OF THE COMPANY .......................................................................16 MARKETING STRATEGIES OF THE COMPANY ..............................................................................17 INFORMATION TECHNOLOGY ..........................................................................................................18 INDUSTRY BUSINESS PROCESS ............................................................................................................21 BANKING BUSINESS PROCESS ..........................................................................................................21 BUILDING A BETTER BANKING BUSINESS PROCESS ..................................................................21 BUILD INTELLIGENCE AND AGILITY INTO PROCESS WITH PEGA BPM .................................21 COMPANY BUSINESS PROCESS ............................................................................................................24 COMPANY DEPARTMENTAL FUNCTIONS ..........................................................................................24 GENERAL BANKING ............................................................................................................................24 CLEARING ..............................................................................................................................................25 REMITTANCE .......................................................................................................................................27 DEMAND DRAFT ...............................................................................................................................27 PAY ORDER ........................................................................................................................................29 MAIL TRANSFER ...............................................................................................................................30 RECEIPTS AND PAYMENTS ....................................................................................................................32 7. STOP PAYMENT .................................................................................................................................33

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.......................................41 TYPES OF ACCOUNTS .........................................................................................................33 ACCOUNT OPENING...................................................................................................................65 SWOT ANALYSIS OF BANKING INDUSTRY .........................................76 CONCLUSION ...........40 CUSTOMER SERVICE: ............................................................................................36 Sole proprietorship .......................34 Salaried Individuals ..........................36 Self-Employed/Business men ........37 Trusts .........................................................................................................................................................................................................................36 Clubs/Societies/Associations ...................................................................................................................................................69 THREATS: ....................................................................................................................................................75 RECOMMENDATIONS FOR THE COMPANY .............................39 POSTING OF CHEQUES/OTHER INSTRUMENTS AND FIXATION OF STAMP AS PER NATURE OF PAYMENT .....................................................................................................................................................................................................................................................................................................................48 EXPORT REFINANCE SCHEME ...................78 Internship Report Page 5 ....................56 CREDITS AND CREDIT ADMINISTRATION DEPARTMENT ......39 SCRUTINY OF CHEQUES ..........................................36 Limited Company ...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................70 IDENTIFICATION OF PLAUSIBLE PROBLEMS ................................................................42 FOREIGN TRADE ....................................................................................................................................................................................................................................................................................68 OPPORTUNITIES:.........................................................................................................................................................................................................................68 STRENGTHS: ................................................................................................................................................................................................ACCOUNT OPENING DEPARTMENT .....................................36 Minor Account ....................................................................68 WEAKNESSES: ....................................................................................................................................................65 FOREIGN REMITTANCES.........................................................................................................................................70 SWOT ANALYSIS OF COMPANY ...............................................63 FOREIGN CURRENCY ACCOUNTS DEPARTMENT ........................................................................61 STEPS INVOLVED IN PREPARATION OF CREDIT LINE PROPOSAL ......................................................................................................................................................................................60 Features of credit department ....................................................................................37 LETTER OF THANKS ..................................

. Banks also may offer investment and insurance products..... They securely save the money of depositors.. banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits.. which they were once prohibited from selling. Many management positions are filled by promoting experienced. because these occupations are large and have high turnover........ there are still key distinguishing traits... Banks also may offer investment and insurance products.......... some of the traditional distinctions between banks.........APPENDICES . office and administrative support workers constitute 2 out of 3 jobs. These banks come in a wide range of sizes.. such as checking accounts....... offer a full range of services for individuals.....80 PROFILE OF THE BANKING INDUSTRY In the banking industry..... and cashier’s checks...... hold reserve deposits of other domestic banks and the central banks of other countries..... Internship Report Page 6 . Banks safeguard money and valuables and provide loans....... There are several types of banks. and issue the currency we use... As a variety of models for cooperation and integration among finance industries have emerged.. credit. investment loans.. and securities firms have diminished... Although some of the differences between these types of banks have lessened as they have begun to expand the range of products and services they offer. and payment services.. and lines of credit... provide checking services...... insurance companies....... businesses... which they were once prohibited from selling.S..... The establishments in the credit intermediation and related services industry provide banking services to the general public. and lend the funds raised from depositors to consumers and businesses for mortgages.. and Credit Intermediation and Related Activities... money orders. Federal Reserve System that manage the Nation’s money supply and international reserves.... which differ in the number of services they provide and the clientele they serve. Commercial banks... In spite of these changes. Many job opportunities are expected for tellers and other office and administrative support workers............ technically skilled professional personnel..... and governments.... which dominate this industry.. Banking is comprised of two parts: Monetary Authorities—Central Bank.............. The former includes the bank establishments of the U.. tellers account for about 3 out of 10 jobs............

Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area that provide banking services to individuals. banking services. own position securities. guarantees. PROFILE OF THE COMPANY Soneri Bank Limited (the Bank) is engaged in banking services. lending. Global banks are involved in international lending and foreign currency trading. such as those who work for the same company or belong to the same labor union or church. bills of exchange and deposits. initial public offering (IPO) and secondary private placements. and some formerly Internet-only banks are opting to open branches. Savings banks and savings and loan associations. funding. brokerage debt and prime brokerage. private lending and deposits. with some success. often at a lower interest rate than that demanded by other financial institutions.from large global banks to regional and community banks. research. commodities. In recent years. Members pool their savings and. privatization. Trading and sales includes fixed income. underwriting. many traditional banks have also expanded to offer online banking. trust and estates. merchant / commercial / corporate cards and private labels and retail. trade finance. Banks have become more oriented toward marketing and sales. Retail banking includes retail lending and deposits. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of individuals. are the second largest group of depository institutions. As of December 31. Most credit unions are formed by people with a common bond. when they need money. lending and repos. 2010. The Bank operates in four segments. However. sometimes called thrift institutions. Credit unions are another kind of depository institution. employees need to know about all types of products and services offered by banks. foreign exchanges. leasing. they may borrow from the credit union. Commercial banking includes project finance. Internship Report Page 7 . As a result. equity. online Banks—which provide all services entirely over the Internet—have entered the market. factoring. debts. syndication. equity. export finance. credit. trust and estates investment advice. in addition to the more typical banking services. Corporate banking includes syndicated financing and services provided in connection with mergers and acquisition. securitization. it operated 184 branches. which many individuals and small businesses prefer. Community banks are based locally and offer more personal attention. banking service. real estate.

5 Percent Cash Dividend 20 Percent Bonus Shares 10 Percent Interim Bonus Shares 10 Percent Final Cash Dividend 25 Percent Bonus Shares Internship Report Page 8 .19.040 6.10 billion i. 200 million approximately in various industrial & commercial projects of the country.860 335 24.$.115 1999 1.797 7.S. of Accounts 95.112 Rs. THE Financial Highlights (Rs.THE SPONSERS: The Sponsor Directors are from M/s.730 382 31.36 Pay out to share-holders has been 1993 1994 1995 1996 1997 1998 1999 10 Percent Right Shares 15 Percent Bonus Shares 15 Percent Cash Dividend 17.01 1998 970 11. Rupali Polyester Limited who enjoy excellent reputation in the country both professionally and financially and who have invested over Rs. Share-Holders Equity Deposits Financing to Customers Investments Total Assets Pre-Tax Profit Import & Export Business Break-up Value of Share (Face Value Rs.631 6.574 22.103 12.e.262 7. in Millions) .142 14.116 17. U.687 75.10/= each No.

Treasury. Foundation courses for the new entrants in banking are a continuing feature in our academy. The bank was able to handle trade finance business of over Rs. (approx. He has a team of professional and experienced bankers to assist him. U. Safar Ali K Lakhani. 31 billion in 1999. 600 million) HUMAN RESOURCE DEVELOPMENT AND TRAINNING PROGRAM: Great emphasis is laid on the development of human resources. has had extensive exposures to domestic and international banking both at home and abroad. The bank regularly sends officers and executives to attend Banking Seminars both inside the country and abroad. providing them qualitative & competitive services. Because the soneri bank provides its employees chances of further training according to its plans and policies after selection and recruitment. and Retail Banking Services with emphasis on Trade-related services to importers and exporters.S. SERVICES: Soneri Bank offers a full range of Corporate. Internship Report Page 9 . The essence of business philosophy is to cater to the banking requirements of small & medium sized entrepreneurs. INTERNATIONAL RELATIONS: The extensive correspondent network in just eight years of operations and the excellent relations maintained have proved valuable in bank's efforts in conducting international banking business. a carrier banker with experience spread over a period of more than 35 years.$. Emphasis is on encouraging exports and major portion of the advances portfolio of the bank is related to export financing Mindful of the requirements of automation the bank has started Soneri Tele-Banking Service & in the first phase installed two ATMs at important locations in Karachi while the work for connecting the branches on line for customers convenience is being actively pursued.THE MANAGEMENT: The President & Chief Executive of the Bank Mr.

‖ MISSION STATEMENT OF THE COMPANY ―To develop Soneri bank into an aggressive and dynamic financial institution having the capabilities to provide personalized services to 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‖ Internship Report Page 10 .VISION STATEMENT OF THE COMPANY ―To provide visionary services and dynamic banking solutions to cater the needs of all our stakeholders.

POLICIES OF SONERI BANK LIMITED: SNBL since its establishment has been providing excellent services all because of the strengthened policies and strategies set out by its Broad and Management.Os) is being hired.OBJECTIVES OF SONERI BANK LIMITED: SNBL as being privately owned.D. these policies cover all grounds of good banking. following is the road map to their success:  Customer satisfaction will always remain the number one benchmark. growth of business and to capture maximum potential market. This can be done through Liquidity Management and Credit Risk Management. the primary objective is maximum net profit. Provide convenience to its clients. Consumer durable financing. To meet customer satisfaction and get maximum potential from the Market. just because SNBL is continually achieving its objectives. Well-integrated branch network that offers greater potential for servicing a larger client based through high value products. Optimize utilizations of assets. the aim is to maximize value for clients by offering high quality financial solutions that best meet their current needs and long-term goals. To develop a wider spectrum of innovative financial products based on the consumer needs. These objectives are:          To get maximum net profit by keeping and maintaining different kinds of institutional and individual account. The operating results of SNBL shows an impressive improvement compared to the last financial year and the improving return on assets indicate the increasing operational and administrative efficiency. To maintain sufficient resources over a long period of time and utilize them in productive way. Products must get considerable success in the market. Bank is continuously looking for expansion in terms of deposits so highly dedicated Business development Officers (B. Page 11   Internship Report . Long term planning.

energetic. The corporate policy focuses on striking the optimum balance in organizational workflows and processes. excellent benefits and caring leadership. The policies include. able to achieve a specific level of performance at every layer of the organization. an intensive branch network will be established all around the Country. CORE VALUES OF SONERI BANK LIMITED: SNBL is firmly grounded with a corporate philosophy that incorporates five solid values. Internship Report Page 12 .     To promote strong and ethical business practices in the industry by focusing more on effective collaboration with stakeholders. Bank is. competitive salaries.  MERITOCRACY: At every level. SNBL forms a network of a well-integrated team. abides by:  HUMALITY: Bank encourages a culture of mutual respect and treats team members and customers both with humility and care. based on objective criteria throughout all the layers of the organization.  INTEGRITY: Integrity means a synergic approach towards abiding the core values. from selection to advancement. and offer them an inspiring work environment. Soneri has designed a consistent system of human resource practices. which each individual associated with the bank. The Bank is fully aware that branch network has direct impact on the business so. therefore. United with the force of shared values and integrity. well-trained and productive employees. employ and retain an unparalleled workforce of highly motivated. These values and business principles provide the framework within which they carry out their operations. SNBL is committed to the personal welfare and professional development of all team members and sharing expertise and operational excellence across the groups.

 TEAM WORK: SNBL team strives to become a cohesive and unified force. COMPETITIVE STRATEGY OF SNBL: The strategy used by the management to position SNBL in such a way that it will have distinctive advantage over its competitors. and to respect and reward the agents. to offer you.  DIFFERENTIATION: The strategy an organization follows when it wants to be unique among its competitors with unique products and value added services. Internship Report Page 13 .  TARGET MARKET: The target market. the customer. This force is derived from participative and collective endeavors. foreign trade etc).  COST LEADERSHIP: SNBL adopted the strategy to be the cheapest services provider (the cheapest rates for the services of Remittance. a common set of goals and a spirit to share the glory and the strength to face failures together. leaders and creators of change. is not only the conventional consumers but the corporate sector as well. The entire department heads work with their subordinates as team members they provide them help and guide them to achieve their goals. and the lowest interest rates for their products.  CULTURE OF INNOVATION: The Bank aims to be proactively responsive to new ideas. and a level of service beyond one’s expectations. of SNBL.

Internship Report Page 14 . UNIQUE PRODUCTS AND SERVICES: SNBL plans to introduce innovative and flexible financial products and services.  LOWEST RATES: The rates will be surely charged less than the competing products of other banks.

HIERARCHY MANAGEMENT OF THE COMPANY President Board of Director Member Executive Board Regional Chief Zonal Chief Branch Manager Officer Grade I Officer Grade II Cashier Clerks Peon Internship Report Page 15 .

Treasury / Dealing.HUMAN RESOURCE POLICIES OF THE COMPANY People oriented Deployment. Grooming and etiquettes programs: Grooming and etiquettes programs are being conducted for front-line employees and also for employees selected for overseas posting in order to improve their service levels and qualitative interaction with customers and various stakeholders better. HRNes (Human Resource Network for Employee Services) "HRNes" covers the entire gamut of human resources management function in the Bank currently being performed and also includes many new sub-functions. SEED (Self efficiency and effectiveness development) programmed being run for frontline staff of the Bank in order to improve their service skills and servicing efficiency. etc. for grooming of Branch heads. Wealth Management. It comprises of four broad modules encompassing different functions. Some of the prominent HR policies put in place are HR Resourcing policy      Promotion policy for officers Transfer policy for officers Promotion policies for clerical and subordinate cadre Overseas selection policy Talent identification & Grooming programs Various programs are being run by the Bank for grooming of officers in specialized areas of Credit. Promotion and selection policies: Bank has formulated and put in place well documented and comprehensive deployment. Internship Report Page 16 . Forex. promotion and selection policies oriented towards identifying the best talent and providing opportunities for fast-track growth and development.

MARKETING STRATEGIES OF THE COMPANY Bank is amongst first in the industry to complete an all-inclusive rebranding exercise wherein various novel customer centric initiatives were undertaken along with the change of logo.. Online and other facilities such as online payment of direct and indirect taxes and certain State Government taxes. overseas and subsidiary operations. Extension Counters in Pakistan. New Technology Platform: Bank has made substantial progress in its end-to-end business and IT strategy project covering the Bank’s domestic. managerial and leadership skills. People initiatives were blended with IR initiatives to create an effectively harmonious workplace. Initiatives have been taken to provide corporate customers with facilities like direct salary upload. where everyone prospered. viz. trade finance and State Tax payments etc. Bank has introduced Mobile banking. utility bills. according cross border and cross cultural work exposure to its managers. overseas business and five sponsored Regional Rural Banks are on the Core Banking Solution (CBS) platform. People Initiatives: Bank is endowed with a competent and motivated employee base which is engaged in handling the extensive business operations of the Bank across the globe. Bank has a wide network of ATMs across the country and has also launched mobile ATMs in select cities. hiring diverse functional specialists to support line functionaries and complementing the technical competencies of its people by imparting conceptual. The major ongoing initiatives of the Bank are detailed below: Business Process Reengineering (BPR): Bank had initiated a major Business Process Reengineering to give a big boost to sales growth by enhancing customer satisfaction and by making possible alternate channel migration thus reinventing itself to challenges of the 21st century. All Branches. online shopping. donation to temples and institutional fee payment. gave the Bank competitive advantage. Strategic HR interventions like. Bank has been providing to its customers Internet Banking. The initiatives include setting up of specialized Branches and Retail Loan Factories/ SME Loan Factories with an assembly line approach of processing loans for speedy disbursal of loans. rail tickets. Internship Report Page 17 .

The Future: Revolutionary and discontinuous changes in the operating environment are stark reminders that business success is 'impermanent'. INFORMATION TECHNOLOGY The importance of information technology can hardly be denied in modern businesses. that they have to keep abreast with all these changing technologies. Thus the Bank has firmly positioned itself as a technologically advanced customer-centric bank. particularly in terms of reducing cost of power and processing capabilities and in making an organization a successful unit in a true sense. but also having long lasting impacts on the external environment of an organization. Bank’s constant endeavor to delight its customers.Marketing Initiatives: Ever since it’s reinforced by alternate delivery channels such as internet banking. mobile banking etc. Bank continuously attempts to adapt to the dynamic economic environment while engaging in long term relationships to provide superior customer service. and robust delivery outfits like Retail Loan Factories. ATMs. Information technology is revolutionizing not only the internal environment of an organization. In this modern era more and more organization are diverting towards GLOBALIZATION. which is built on its strong fundamentals will make it stronger. and the only thing that could give them stand in this change and challenging environment is the recognition of fact. It is argued that IT is much more different and pervasive than the earlier technologies. Recognizing the Internship Report Page 18 . more resilient and enable to achieve its vision of to be the Most Admired Bank. and City Sales Office etc. because in the last two centuries IT has had dramatic impacts in almost every aspect of an organization. Bank’s constant endeavor to strengthen its branch/ATM network combined with well-informed staff offering personalized service at its various touch points have enhanced customer interactions and satisfaction. Bank has achieved substantial progress in technology and is continuously integrating multiple platforms of technology to generate synergies. SME Loan Factories.

T to achieve dramatic improvements in terms of:    Increased efficiency & effectiveness Reduced need for people to perform repetitive work Higher level jobs requiring training and development To keep abreast with changing technologies the bank is relying heavily on the extensive usage of computing resources and technologies. but it is suffering from some serious deficiencies that can cause great havoc to the sensitive business of banking. Network control software is not restricting the operator access from performing certain unauthorized tasks. The networking system is one of these facilities that is connecting not only the internal structure of a bank. These problems are:       Performance of control functions by non-qualified operators. In specific terms. Network standards and protocols are not documented and made available to the operator. but also linking different branches nationally as well as internationally. Page 19 Internship Report . Control functions are not being separated and rotated on regular basis where the situation warrants so.dynamic nature of information technology SNBL is restructuring its banking infrastructure through I. bank’s Information system is meeting almost all the requirements of the bank. Network access by the security engineers is not closely monitored and reviewed to detect any unauthorized access. the bank is using network environment for these reasons:     Hardware Sharing Data and Information Sharing Software Sharing Facilitated Communications DEFICIENCIES IN INFORMATION TECHNOLOGY: No doubt. Network control software is not maintaining the Audit Trail of operators’ activities.

Impersonation or masquerading Internal users’ sniffing and spooning. Virus infection. Data encryption no doubt used by the bank but not up to that extent where it should be. Destruction of logging and auditing data. Lahore in which I have stayed during my internship. Internship Report Page 20 . RISK OF THESE DEFICIENCIES:        Loss of data and program integrity through unauthorized changes. Now in the next section. Lack of current data protection through inability to maintain version control. Violation of software licenses because of unlicensed and excessive numbers of software copies. I am going to give insight to different cells of SNBL ThokarNiazBaig Branch.

saving millions. you can build a better banking business process in key areas such as: Internship Report Page 21 . and agile enough to keep pace with a dynamic operational environment. Pharmaceutical firms use it to get life. Even sports teams are getting in on the action. The recognized leader in business process management. BUILD INTELLIGENCE AND AGILITY INTO PROCESS WITH PEGA BPM For more than 25 years. and agility of their business processes. Pega systems delivers financial services solutions that enable domestic and global banks to reach new levels of customer satisfaction. operational excellence. The inefficiencies need to be moved. Leading banks use business analytics to predict and prevent credit frauds.saving drugs to market more quickly. intelligent enough to successfully balance business objectives with customers’ desires. effectiveness. The typical banking business process often fails the test. struggling to adapt to shifting marketplace demands and regulatory requirements. using business analytics to determine both game strategy and optimal ticket prices. which will drive out cost and improve agility. Pega BPM is distinguished by powerful and flexible business rules capabilities that support the creation of highly intelligent business processes. Process then need to be modeled and simulated. Retailers use business analytics to predict the best location for store and how to stock them. major financial institutions have relied on Pegasystems to help them adapt to a changing marketplace.INDUSTRY BUSINESS PROCESS BANKING BUSINESS PROCESS Banks are highly focused on business process improvement. Lending institutions of all stripes are looking to build a better banking business process. redundancies and interdependencies. Existing processes and services need to be documented with a focus on identifying commonalities. With Pega financial services software. Doing this will provide the foundation for business and IT transformation. and by revolutionary automated programming technology that enables business users to drive banking business process change with minimal involvement from over-stretched IT staff. BUILDING A BETTER BANKING BUSINESS PROCESS Today’s retail and wholesale banks face unprecedented operational pressures that test the efficiency. and business agility.

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Know the true cost of your print infrastructure. supplies. We thoroughly analyze your current print processes – whether centralized ordistributed across local offices -. Internship Report Page 23 . residential mortgage processing. Optimize your print environment to use less paper. branch or back-office customer service and operations environment. service and power consumption – we can help banks operate more efficiently. and broad-scale document printing. 2.mortgage and loan processing. Reduce cost and waste stemming from preprinted inventories and obsolete collateral. From job submission and high-quality color to complete finishing and distribution.like pitch books. By drastically reducing paper. Based on your specific requirements. equity credit lines and personal loans. Digitization and electronic transfer of documents dramatically reduce the need for manual intervention in client account opening. copiers. better serve your clients and manage your bottom line. we can manage all of your office devices—printers. Whether it’s your corporate office. As more financial services firms decrease their carbon footprint. support and training that go along with them.to help you make a real impact on your sustainability goals. By reducing the time and expense required to onboard a client – as well as the costs around equipment. maintenance. client-facing staff and revenues. Enjoy more sustainable operations. We can help manage your internal and outsourced document production -. 1. REDUCES COST we help financial institutions improve and streamline processes that impact clients. we’ll help you remove process steps. power and equipment. we design the optimal document output environment for you.while providing a single point of control. 4. By optimizing your centralized operations. we can take your operations to the next level. client presentations and marketing materials -. This helps you boost productivity and reduce costs by as much as 30% over time. We also manage the supplies. the print environment is an optimal place to start to achieve a measurable impact. customized solutions. we can deliver highly flexible. 3. fax machines and scanners—regardless of manufacturer or model. Minimize or eliminate the need to courier documents between locations for processing.

convenient and hassle free banking experience every time. spread all over Pakistan including the Northern Areas of the country. COMPANY DEPARTMENTAL FUNCTIONS I did my internship in Soneri Bank Limited Thokar Niaz Baig Branch Lahore. These are General Banking Department Trading Department Credit Department GENERAL BANKING General banking is the basic department of every bank. And I spent most of my internship period by working and assisting in general banking. General banking is basically consumer banking.COMPANY BUSINESS PROCESS Soneri Bank Limited was formally incorporated on September 28. We take great pride in offering services even in the remote areas of Pakistan. The bank currently operates 191 branches. The bank’s expansion policy is based on the principle of maintaining a balance between the urban and rural areas. effectively providing them qualitative & competitive services with emphasis on encouraging exports. This internship period comprises of 6 weeks. The essence of our business philosophy is to cater to the banking requirements of small & medium sized entrepreneurs. 1992. Our fully airconditioned and computerized branches provide a pleasant. 1991. followed by the launch of Karachi's first Branch on May 09. Internship Report Page 24 . Now I am writing about the departmental functions of the company from my learning. Nearly forty percent of our credit portfolio is related to export financing and credit decisions are taken within 48 hours. I work in almost all departments and learn about them and their working. The first Branch commenced operations in Lahore on April 16.in this branch basically there are three main departments in which the other departments lies or relates to them. 1992.

drafts and other banking instruments drawn on each other deposited by their customers or received for collection or clearance.‖ Internship Report Page 25 . Cash paid voucher sheet. The clearing in Karachi at SONERI BANK or other banks is being done through NIFT (National Institute of Facilitation Technology). Paying-in-slip. Cheque Book. In this department I learned that how the clearing and transfer of money from one branch to another branch takes place. Cash balance book. Following are the job responsibilities in this department:a) Clearing of inwards and outwards cheques b) Payment of IBC (Inward Bills For Collection) c) Lodgment of LBC (Local Bills for Collection). ―Clearing is a system by which banks exchange cheques and other negotiable instruments drawn on each other within specified areas and thereby secure payment for their clients through clearing house at specified time.Functions of General Banking Cell 1) 2) 3) 4) 5) 6) 7) Clearing (inward & outward) Remittances General ledger transactions Issuance of Lockers Cash receipt and payment Cash management Stop Payments CLEARING I worked one week in this department. OBC (Outward Bills for Collection) and their Realization. Clearing arrangements are made so that banks exchange and settle for local cheques. The banker's clearing is supervised by State Bank of Pakistan.

cheque number. The details of the cheque i. These cheques are then prepared to be sent to the clearing house. These cheques are received along with a deposit slip. Internship Report Page 26 . the account number and the name of the Drawee’s bank are entered. because it takes one day for a cheque to get clearance. SNBL sends the cheques through NIFT (National Institutional Facilitation Technologies Pvt. One part of the deposit slip is returned to the customer with a clearing stamp on it. PROCESSING OF RETURN CLEARING If there is any particular missing in the cheques. Exchange and settlement of cheques and other instruments is done in the clearing house.e. The signatures are also verified. then they are returned back to the clearing house along with the memo that contains reasons of return by selecting the specific reason. The cheques are then sort out as local and outstation. the amount. Limited). A slip and a sheet are along with the cheques to ensure that all the cheques are being entered and sent. These cheques are received and then sort out. The process of sorting out includes checking of all the necessary and required particulars. PROCESSING OF INWARD CLEARING (Payments) Inward cheques are for payment on behalf of your account holder to the account holder of another bank. Cheques are received from the clients. The date of clearing is one day ahead of the current day.Clearing can be distinguished into two categories outward clearing & Inward clearing: PROCESSING OF OUTWARD CLEARING (Collections) Outward cheques are those cheques that are presented in the bank for collection.

Pay Order III. In cash department both deposits and withdrawals go side by side. Mail Transfer In remittance department like any other SONERI BANK also have instruments for transferring of money. I. and from place to place. books. or upon another bank under special arrangements to pay a Internship Report Page 27 . This department works under the CD In charge and deals with cash deposits and payments. Soneri bank provides remittance facility to its customers. DEMAND DRAFT  Demand draft is a written order. Following were the job responsibilities during my internship period in this department. These cheques are returned to the customers and charges of Rs. but these are not used so much now -a-days.PROCESSING OF CHEQUES RETURNED The cheques of the customers that are being returned by the Drawee’s bank due to any reason stated in the cheque returning memo are given back to presenting back in the clearing house. Responsibility of DD Advice and its Payment. and ledger of account cash received voucher sheet. drawn by one branch of a bank upon another branch of the same bank.200. constitute the concept of a remittance. Telegraphic Transfer. Remittance is very important service provided by banks to customer as well as non-customer. REMITTANCE Transferring of funds from person to person. It is not a free service hence is a continuous source of income for the bank and includes the following modes. Issuance of Telegraphic Transfers and their feeding in Computer. If there are more than one cheques of the same customer then he is charged only Rs. Even that some banks have ended these types of remittance. Mail Transfer. Demand Draft II.    Issuance of Demand draft and their Computer feeding. This department maintains the following sheets.200 are collected for it.

It should be properly filled in and signed by the purchaser. Drawee Branch: Is one on which a draft is drawn. IV. Issuing or Drawing Branch: This issues a draft on another branch.  Before issuing the demand draft it must be seen that the cheque is in order and sufficient amount is available in the account of the drawer. whereas the cheque is to be as a debit voucher.  It is to be insured that the purchaser of Demand Draft is able to at least sign his name.  Demand draft is a negotiable instrument.certain sum of money to or to the order of a specified person. The followings are the parties to a Draft: I. To avoid complications DD are not to be issued to Minors. Application form should be used as a credit voucher.  Thumb impression is not to be accepted on DD.  Demand draft is neither issued payable to bearer nor drawn on branches situated within the same city. Purchaser: Is a person. Payee: Is a person named in the Demand Draft to whom or to whose order the money is directed to be paid. The printed number of the cheque in such cases should be reported on the application form of the customer. firm. If the manager is satisfied with the creditability of the customer. II. he may issue a demand draft on application and subsequently must obtain a cheque. PROCEDURE FOR ISSUANCE OF DRAFTS  An application on printed form is obtain for issue of demand draft.  If the customer has no account in a bank then he may also apply for a demand draft by providing cash at counter. Internship Report Page 28 . company or local authority. A person unable to sign and not having an account may be advised to apply for DD through a literate person to sign on his behalf. III.

made in a receipt form issued and payable by the bank.Entries of DD Entry in Issuing Bank Customer A/c Debit Head Office --------------------------------------------------------------------------------- Credit Entry in Drawee Branch Head office DD Payable ---------------------------------------------------------------------------------- Debit Credit Entry when customer will draw amount from DD DD payable Customer A/c Debit Credit ---------------------------------------------------------------------------------- PAY ORDER  Pay order is meant for bank’s own payments but in practice these are also issued to our customer for making payments.  Pay order cannot be issued to a minor. So in that case pay order is given to that customer and he can Internship Report Page 29 . Sometime bank don’t want to give its deposits to customer.  It is issued by and drawn upon and payable by the same branch of the bank.  It is neither transferable nor negotiable and as such it is payable to the payee named therein. to the person named and addressed therein on his giving a proper discharge thereon.  A pay order is written authorization for payment.

Following are the parties to a pay order: I. The mail transfer instrument is not delivered to the applicant. by giving instructions to the bank. firm . Payee: is a person named therein. ABL then the process of clearing will be adopt. When customer wants to cash the pay order then the amount of the pay order will be debited from the bank. Issuing / paying branch: This issues / pays on presentation. If pay order submit to other bank like MCB. A bank's customer can very easily remit the funds from one place to another. The amount is directly credited to the beneficiary's account. Entries of issuance “pay order” Customer Pay order payable Debit Credit --------------------------------------------------------------------------------Entry when customer get amount from ―pay order‖ Pay order payable Customer Debit Credit --------------------------------------------------------------------------------- MAIL TRANSFER Transfer of funds from one branch to another branch of the same bank within or outside the city or upon other bank under special arrangement for the payment to the beneficiary through Mail/ Courier services is called MAIL TRANSFER. This type of remittance facility is provided only if the beneficiary is the customer of the bank. but instead it is sent by the issuing office to the beneficiary's branch.use it for making payments. Purchaser: Is a person . company or local authority II. A fund application is submitted by the customer. III. Internship Report Page 30 .

  Mail transfer is not negotiable. There is a list of general ledger transactions statements that consists of debit and credit statements. Today banker’s cheque is its modern type which is drawn by the bank to the other ban k out of city or in a city which is confirm payment. GENERAL LEDGER REPORT General ledger transactions consist of general ledger report . including the bank charges. The customer can either deposit cash or get his account debited by the amount that is to be remitted. In this way all the credit and debit transactions are nilled by the debit and credit transactions of same amount. The effect of a transaction is nilled by the opposite transaction of same amount. The funds remitted by Mail transfer are not payable to bearer.Credit balance of the customer can also be transferred from one branch to another with the help of this instrument. The advice is given to dispatch department for onward transaction. The particulars of mail transfer are recorded in a mail transfer register. So the effect of all transactions becomes zero. Mail Transfer advice is prepared and the test number if written on the MT advice. But now-a-days these types of remittances are not used by the banks. Like TT. The debit statement is the nilled by the credit transaction of same amount. ISSUANCE OF LOCKERS SNBL provides safe deposit locker facility to its customers for saf e keeping of their valuables like precious documents. securities and jewelry etc Thokar niaz baig branch has two sizes of lockers. funds can be remitted by MT for the credit of the payee’s Account or the payee / beneficiary can be advised to receive the amount from the Drawee branch either on cash on proper identification. Internship Report Page 31 .

CASH MANAGEMENT This is done by balancing all the cash receipts and payments in the branch. Internship Report Page 32 . Keeping in view the importance of online banking facilities to get a competitive edge the SNBL provides the online banking facilities. 6.Medium In this locker the customer has two options.1700 on it. Cheques are received and payment is made against them.2000 and annual rent of Rs. One is the key deposit of Rs.2000 and annual rent of Rs. It also includes transactions with other branches and internal transfer of funds. 000 which is refundable at the time of return.30. The signatures of the cheque are being verified by the CD in charge or manger operations. 000 which is refundable.40. SNBL also provides On Line Banking facilities to its customers. One is the key deposit of Rs. The other is the key deposit of Rs.3500 on it. The second is the key deposit of Rs. On line banking is becoming an important element of the modern banking the on line banking is a time saving and quick process of receiving and making payments. RECEIPTS AND PAYMENTS Separate counters for depositing cash or cheques and payment of cash against instruments are present in the branch. On line banking mean that transfer of payments and receipts on line. Large In this locker the customer also has the two options. The account holder enjoys the online facility and the receiver can receive amount just in few minutes. This branch after confirming the balance from their account will make the payment to that person instead of receiving that payment in two or three days through clearing.

Internship Report Page 33 . SNBL thokarniazbaig branch has an account opening department that provides services to new as well existing customers. STOP PAYMENT The department also makes arrangements for stop payment of cheques on the request of the client. That is why such departments are maintained by all the banks in all their branches. It provides a wide range of services to its customers and is strongly oriented towards providing banking services to the needs of a business. This Branch is having about 2000 accounts but there was only one officer. how to fill Account Opening Form. Understanding the customer requirements and guiding them accordingly is the basic function of this department. The request of stop payment is made in the following case  The cheque has been stolen or lost  To cancel the cheque.7. In order to fulfill this objective the first step is the opening of new accounts and maintaining the existing ones. The department of account opening is the major source of doing so. Mr. The reason is that it serves as a first step in establishing customer-bank relationship. what are the facilities that an account Holder can enjoy etc. The main objective of any bank is to attract as many new accounts and deposits as possible. what types of account Bank is offering to the customers. and the client will request the bank not to make the payment if presented. I learnt how to handle different customers. NaumanAkhtar to handle this tough work. and handle to the counterpart. He has to deal different people. My experience in this department was really very good. ACCOUNT OPENING DEPARTMENT Account opening department is the most important department in any commercial bank's operations. which has already been written out. what are the required documents that should be with you in order to open an account. I have learnt the procedure that an Account Opening Officer has to follow in order to open and maintain an Account.

3. When a person wants to open an account with the bank he is required to fill an account opening form. And after that these forms are authorized by the Branch manager and then further proceedings takes place.C no. Information about the account holder's successor is also to be fille d in the account opening form. This information is required to obtain the legal successor appointed by the account holder. 4. N. There are various steps involved in opening of an account. 6. PROCEDURE ACCOUNT OPENING FORM: A printed account opening form along with the requisition slip and the signature card is given to the customer. Internship Report Page 34 . Along with this account opening form certain documents are to be attached to start a customer-bank relationship. Account Opening Issuance of Cheque Books Scrutiny of cheques Posting of Cheques Account Closing Customer Service ACCOUNT OPENING It is the first and major function of the department. There are certain formalities to be fulfilled before opening an account depending upon the nature of account and the nature of the customer... telephone no. address. 5. The conditions for opening the account are also attached with the form.I. It includes information regarding the customer's name. 2.Functions of Account Opening Department 1.

if NIC is not available Vernacular Form if signature are not in English Any photo ID in CNIC is not carrying a photo Three passport size photographs with thumbs impression for illiterate individuals or having shaky signatures Undertakings of signature differ with CNIC signatures.INTRODUCTION: The customer whose account is to be opened has to be introduced by an existing account holder of the bank. he is opening the account in his real name.e. The main purpose of getting the introduction o f the account opener is to      Avoid any serious consequences Desirability of the customer Respectability Occupation and nature of business of the customer To get maximum information about the customer REQUIRED DOCUMENTS:       Photocopy Computerized NICs of All concerned parties. Introducer is not a guarantor. The introducer should known of the account opener and should know that the customer is bonafide i. Photocopy Passport. Internship Report Page 35 . The introducer is the person who makes an introduction of the account opener by signing on his account opening form. His only responsibility is to locate the customer if any problem comes up.

designation and period of employment on the letter head and signed under rubber stamp of company/ organization/ firm/ proprietor etc  Attested copy of service card or any other acceptable evidence of service.  Attested photocopies of Computerized CNICs of all the directors Internship Report Page 36 . letter from the proprietor confirming proprietorship (Format available on request) A letter head along with a rubber stamp for proof of business or any other acceptable evidence for verifiable source of income Sole proprietorship  Letterhead from the proprietor confirming proprietorship(Format available)  Rubber stamp of the company  Copy of CNIC  Copy of NTN Minor Account  Form B (Birth Certificate)  Guardian’s NIC Limited Company  Board Resolution resolving to open an account and specifying the persons authorized to operate the account.ADDITIONAL REQUIREMENTS: Personal (Individual or Jointly) Salaried Individuals  Employment certificate by the employer acknowledgement the individual as an employee along with his salary. including. but not limited to a certificate from the employer Self-Employed/Business men  Copy of NTN certificate of the individual   For Sole Proprietorship.

Attested copy of Computerized NICs of all partners Rubber stamp of partners Partnership Mandate on letter head to operate the Account Attested copy of registration certificate (Form-c).for registered firms only Attested copy of NTN Certificate Clubs/Societies/Associations  Certified copies of rules/ by-laws  Certified copies of Certificate of Registration  Resolution of the Governing body/Executive Committee for opening of account authorizing the persons to operated the account and attested copy of the authorized person  An undertaking by all the authorized person on behalf of the institution mentioning that any change will be informed to the banker immediately Trusts  Attested copy of certificate of Registration  Attested copies of Computerized NICs of all the trustees  Certified copy of instrument of Trust (notary public)  Board Resolution resolving to open and operate the account Internship Report Page 37 .      Certificate of Incorporation Memorandum and Articles of Association (First and last page signed and stamped by CEO or Company Secretary) List of Directors on Company’s Letter Head duly signed by Chief Executive or Company Secretary Latest Copy of Form-29 duly attested by SECP Rubber stamp with designation on all documents Certificate of commencement of business (Public limited Company only) Partnership       Attested copy of Partnership Deed duly verified by notary public and signed by all partners of the firm.

The account is then entered into the bank's system and processed for getting the account number and the customer number. Certified copy of By-laws FILLING OF KYCS: KYCs (know about your customer) are the bank documents that contain the complete information’s of customers that include their personal information. The signatures are also verified and a signature card is maintained for the purpose of future verification if required. Internship Report Page 38 . job and business and their total annual income and the amount of their total wealth in case of business. In SNBL this verification is done by operations manager. VERIFICATION OF DOCUMENTS AND ISSUANCE OF ACCOUNT NUMBER: The documents provided by the account opener and their KYCs are verified by the department head. And before it all the process of verification of documents and their stamping is done. about their work. MINIMUM CASH REQUIREMENT: After providing the properly filled form and all the necessary documents the account holder has to deposit the minimum cash requirement for opening a specific account according to bank's rules. This system number comprises of following components Branch code: Account type code: Customer number. The customer's account is opened after following the above stated procedure .

After the customer brings the letter of thanks to the bank he fills in the requisition slip for obtaining a cheque book and receives the cheque book. The cheque is out of the cheque book(s) issued. SCRUTINY OF CHEQUES On completion of formalities referred above the cheque is handed over to the ledger keeper and other instruments to the concerned departments. The cheque book is of three types. Page 39 Internship Report . Ledger keeper will again scrutinize check and verify the points as given below:The account on which cheque is drawn is neither closed nor dormant or inoperative.      It bears token stamp on the reverse. The account number.LETTER OF THANKS: After this process a letter of thanks is sent to the customer in order to verify that the address provided by him is correct. This makes him the account holder of the bank and now he is able to operate his account. The signature of drawer is there. title of account is there. ISSUANCE OF CHEQUE BOOK: At the time of account opening a slip is also filled for the receiving of cheque book. 1) 25L 2) 50L 3) 100L When one cheque book is finished the customer has to fill up a requisition slip at the end of the cheque book and apply for a new cheque book. The cheque is of our bank and the branch.

    Is not un-dated. No. the amount does not exceed the credit balance of the account (or the un-drawn portion of the sanctioned drawing power in case of cash finance account or current account) having approved running finance facility. ―Transfer Delivery‖ stamp is affixed. Alternations/mutilations/cuttings/over-writings. it should be ensured that the cheque is being posted to the correct account. Where the cheque has been presented through clearing. The funds are available/sufficient to honor the cheque i. Internship Report Page 40 . Crossings of other bank (if any) are properly cancelled. In case it is drawn on account marked as similar account. (if any) is confirmed by the drawer under his full signatures. The collecting bank’s discharge is in order. Amount in words and figures tallies. The ledger keeper shall sign on the cheque with the narration ―Entered‖ to signify that it has been posted after proper checking and is in order. it bears crossing and clearing stamps of the same bank with date. post-dated.e.          POSTING OF CHEQUES/OTHER INSTRUMENTS AND FIXATION OF STAMP AS PER NATURE OF PAYMENT After proper scrutiny the cheque is posted in the ledger/card folio number/sheet number of the account is entered on the top left corner of the cheque and ―Pay Cash‖ or ―TRANSFER‖ stamp as the case may be is affixed on the face of the cheque. In case cheque is presented in transfer delivery. previous entry in the ledger is un-authenticated. under lien or the account holder is deceased. There is no legal bar for the payment of cheque account is not attached. Endorsement made thereon is prima facie in order. stale or out of date. Payment of the cheque has not been stopped by the drawer.

This is a sort of clearance from all the departments. Unused cheque containing........ For closing an account the customer is required to  Submit a signed account closure request REQUEST FOR CLOSURE OF ACCOUNT I/We am/are maintaining account no..........with you.. leaves is also enclosed................ACCOUNT CLOSING: It is the third function of this department.......   Surrender the cheque book with the bank Pay a statutory fee of Rs........ In the end the account opening form is filed in the closed accounts file.. Titled ........ The cheque book is then destroyed..... It is the customer service provided by the bank which ensures loyalty of customers and new accounts and deposits............ I/We request you to please close my/our account...... CUSTOMER SERVICE: This function is also performed by account opening department.... 220 to the bank The account opening officer gets an annexure approved by all the departments and then closes the account.. The following services are provided by the account opening department Internship Report Page 41 .... Account closed log file is printed in order to complete the process of closing an account.... Any service that a customer requires should be provided in order not only to satisfy him but also delight him.

000 that are deposited in the account at the time when the account is opened. The account holder can done unlimited transactions and can withdraw or deposit money without any limit in a day during the banking hours. 2. Cheque clearing inquiries Account number confirmation Issuance of statements The bank provides statements of accounts on the requirement and instruction of the customers. 10. 5. TYPES OF ACCOUNTS Soneri Bank Limited is currently offering following deposit accounts: 1. 7. 6. 3. 4. 8.      Balance confirmation The account opening officer is responsible to provide answer to inquiries about balance on telephone as well as personal visits of the customers. Normally the bank sends the statement of account after every six months but if desired by the customer the statement can be sent on quarterly basis monthly basis or even weekly basis. Current Account P&L Saving Account Basic banking Account Soneri Saving Account Soneri Sahara Account SoneriIkhtiar Account Running Finance Account Foreign Currency Account CURRENT ACCOUNT Current account is Non interest bearing checking account and is opened and used for business purpose and is opened by an amount of Rs. Internship Report Page 42 .

P&L SAVING ACCOUNT Profit & loss saving sharing account is for salaried persons whose salaries are not so much. 000). SONERI SAHARA ACCOUNT Soneri Sahara account is for senior and old age citizens and retired persons.000 with no minimum balance requirement.000. 1. 100. Internship Report Page 43 . And in soneri saving account the account holders receive profit at the rate of 5% on 100. Maximum 2 deposits & 2 withdrawals through cheque are allowed.Rs. Basic banking account is Non interest bearing checking account. Like curr ent account Basic banking account holder’s account numbers also starts from 0205.5% on above than Rs.000 . Pls saving account holder’s accounts number starts from 0101. 000. Soneri Sahara accounts starts from 0108.1000. 7% on the deposit of (Rs.000 – 5000. But no online facility is provided. 8% on (Rs. SONERI SAVING ACCOUNT Soneri saving account holder’s accounts numbers starts from 0102. . Basic banking account is also for small businesses and salaried persons but there is a limit of transactions in this account in a day. 5000 only.5000. Minimum account opening requirement is Rs. So that they can save some part of their income for th eir future uses. There is no restriction on ATM withdrawal. 1000. BASIC BANKING ACCOUNT Initial deposit for account opening is Rs. 000) and 9. In this account they receive profit at the rate of 5% annually according to the interest rates and terms and conditions of the state bank of Pakistan and their company.

Telegraphic Transfers  Rupee Travelers’ Cheque through your bank branch  Import.000. 0118 and 0119.SONERI IKHTIAR ACCOUNT Soneriikhtiar account is for corporate businesses that open by the deposit amount of Rs. those are    Free Cash Deposit and Withdrawal facilities through your bank branch Free Clearing facility to deposit cheques of other banks within the city Online Funds Transfer through Cheques to any account across Pakistan through your bank branch  Online Cash Deposit. FOREIGN CURRENCY ACCOUNT Foreign currency accounts holder’s account numbers starts from 0219. Running finance account starts from the serial number of 081. Demand Draft. COMMON BENEFITS OF THESE ACCOUNTS Following are the combined benefits of all the accounts that an accountholder can avail. Withdrawal and Funds Transfer through cheques from any of our branch across Pakistan  Remittance facilities such as Payment Orders. RUNNING FINANCE ACCOUNT Running finance account is for those account holders who need some finan ce in order to run or setup their business. Export and other business transactions  Statement of Account on six monthly basis  Usage of Electronic Banking through: o ATMs across Pakistan owned by Soneri Bank and other banks o Free 24-hours Telephone Banking and Call Centre facility Internship Report Page 44 . 50.

and prevents customer from the risk of keeping money in pocket. These charges are separate for both classic and gold card Internship Report Page 45 . Classic Gold The form is authorized by the branch and operations manager and is being processed and finally customer can receive it within the four working days of the bank after fulfilling the receiving criteria. II.father’s name. ATM DEPARTMENT ATM is the automatic teller machine that provides facility to withdraw cash any time from the atm machine.o Free 24/7 Online Funds Transfer to any customer of Soneri Bank through ATMs owned by Soneri Bank o 24/7 Online Inter Bank Funds Transfer through ATMs owned by Soneri Bank to any account of increasing list of enabled 1 LINK member banks o Utility Bill Payments through ATM. And is a convenient source of withdrawing money ATM department is responsible for the issuance of new ATM card and after that issue of atm in this regards. Internet Banking and Call Centre o Free 24/7 Internet Banking    All purchases and cash withdrawals made with the Soneri Banking Cards is deducted directly from your bank account Free Cash Withdrawal on ATMs owned by Soneri Bank Facility of Running Finance for specific purpose against collaterals and nominal markup rates being charged on quarterly basis etc. There are some charges of atm card that are detected annually. account number and other information and for what type of card the customer is applying for because atm card is of two types I. In order to have a new atm card the customer has to apply for the card at the time of account opening by filling an atm form that contains his\her name.

And with classic card the customer has a limit of withdraw money until Rs25000 in a day not more than it. Daily Reports Activity Verification 2. which summarizes and consolidates all the accounts of different department. 200 annually in advance excluding the money transactional tax. 1. The accounting system used in SNBL is given in a manual. And the Accounts Department of SNBL performs the following activities. Rectification of Errors Internship Report Page 46 . I learnt the items of the Balance Sheet of Bank and saw the format of different reports. I used to help department in Daily Activity checking. sorting and counting of vouchers and how to calculate the deprecations of all fixed assets. the customer has to contact to the ATM officer and the officer will give card to the customer after the recei ving criteria is done. And with gold card the withdrawal limit is until Rs.500 that is other than the transactional taxes. The basic purpose for maintaining an accounting system is to ensure consistency in record keeping and accounts.For classic card the customer has to pay a fee of Rs. which states all the accounting practices to be adopted while recording any transactions. All officials helped me to understand his work. The basic requirement for any accounting system is that it should be in accordance with the GAAP (Generally Accepted Accounting Principles). 000 in a day and its annual charges are Rs. It was one of those Departments in which Customer interaction is not involve rather paper interaction is important.50. ACCOUNTS DEPARTMENT The most important aspect in record keeping of a bank is its accounting system. An account department is actually a concluding department. They told me about the reports that he has to prepare & the purpose of those reports. In case if the machine has captured the card. There are two choices available to an organization for an accounting system.

These errors might be some mistakes in the face of the instrument or the signature requirements HEAD OFFICE RECONCILIATION There are number of transactions which take place between. RECTIFICATION OF ERRORS If there is any error found out during activity verification.3. Activity checking is the manual checking of all the debit and credit posted vouchers. The voucher are sorted into the different heads according to their nature and then different bunches are made which are then checked by the responsible officer. At the end of the day a report is prepared containing the figures and name of b unches and voucher in each bunch. 5. In order to be balance with the head office the account department did reconciliation in order to be in balance with the head office at the end of the day. It is a type of check on the employees which shows the efficiency and accuracy of the employees. 6. The other report that is prepared after checking the activity that contains all the discrepancies of the activity and the number of employee who did the mistake.Old Accounts Contracts (forward contracts) Reporting ACTIVITY VERIFICATION The different department of the branch does their work through out the day the employees post their vouchers in the computers and also prepare the vouchers manually. The vouc her of the today will be checked tomorrow according to the activity generated by the computer and manually prepared voucher. It makes the more accurate work of the employees. Internship Report Page 47 . Foreign Exchange. 4. it is rectified and communicated to the respective departments. Head office/Branch reconciliation Reconciliation with state Bank of Pakistan.

Foreign accounts are convertible on floating rate available to the bank. The bank also pays an advance fee for this which is charge to the whole quarter. Furthermore SONERI BANK also deals with foreign exchange. Current account. It is important for the proper management control. Term deposit. REPORTS Report generation is one of the most important functions of the accounts department. Internship Report Page 48 . saving bank account. At the end of the quarter the SNBL will purchase from SBP at the decided Rate and transfer (Sell) to the Head Office at the current rate prevails in the market. The amount in the old account will be paid in form of rupees. and Foreign Bills for Collection. The daily statement of SBP is matched with the balance with SBP in order to be in balance with SBP. Foreign currency accounts & the foreign currency department deals with these types of accounts. The period is normally one quarter. This contract can also be roll over at the end of the period. Foreign Remittances. FORWARD CONTRACT (OLD FOREIGN CURRENCY ACCOUNTS) There are two types of account operate in foreign currency the accounts which were frozen by the Government in 1998 after nuclear tests are called frozen (old accounts) and accounts which are opened after that are called New FCA.STATE BANK OF PAKISTAN RECONCILIATION The SBP is the central bank of Pakistan therefore each schedule bank will be controlled by the SBP therefore a number of transactions occur with State Bank of Pakistan. foreign Currency Accounts. Whenever any amount in dollar comes state bank purchase it from the bank and enter into a forward contact that mean that bank will repurchase these Dollar after certain period at decided rate. Letter Of Credit facility is being provided by SONERI BANK in foreign exchange. FOREIGN TRADE Trade department deals with imports and exports at national and international level I have not worked in this department so much I just learn about the working of this department. The difference between the selling price (to the head office) and purchase price (from the SBP) will adjust as exchange difference account.

Negotiation Payment of Doc.      Importer Issuing Bank (importer's bank) Advising bank or Correspondent bank Exporter Beneficiary bank (exporter's bank) Internship Report Page 49 . IMPORTS         L.This provides these following services. Negotiation Reporting to SBP on Form ―E‖ IMPORT L/C CYCLE There are primarily five parties involved in the whole process of an L/C.C Opening L.C Advising L.C Amendment Advising L.C Confirmation Processing Doc.C Amendment L.C Settlement Acceptance Booking Acceptance Payment Forward Booking Forward Take up Reporting to SBP on ―I‖ Form EXPORTS         Issuance of Export Forms Certification of ―E‖ Form L.

makes his approval on it. The exporter endorses it i. STEP 6: The exporter's bank informs the exporter about the L/C and then the exporter starts producing the goods or ships the goods. whatever the case may be. STEP 7: Internship Report Page 50 . import registration etc. One copy is sent back to the exporter and one is taken to the bank. form I. and opens the L/C . STEP 3: The issuing bank or the importer's bank inspects the Performa invoice and other documents like the application. STEP 5: The correspondent bank advises the L/C to the exporter's bank. STEP 2: Exporter sends Performa invoice to the importer through fax or mail. STEP 4: Now the issuing bank sends this L/C to its correspondent bank in the exporter's country.STEP 1: A deal between the importer and the exporter is made.e.

the bill of lading. If immediate payment is not made by the importer to the bank. STEP 9: The issuing bank after receiving the documents informs the importer and tells him to make the payment.The exporter provides the documents of shipment e. The importer after that gets the goods released from the port. Internship Report Page 51 . pre -shipment report etc to his bank and gets the payment after deduction of some pre determined charges. STEP 8: Now the exporter's bank will send those documents to the issuing bank to get the payment.g. Another option is that the beneficiary bank might negotiate the documents with some other bank. The importer makes the payment with some pre determined charges and gets the shipping documents from the bank. then the bank might keep the imported goods in its possession till he makes payment.

IMPORT L/C CYCLE

Performa Invoice

IMPORTER
Performa Invoice

EXPORTER

Funds P/I

B/L

L/C Advised

ISSUING BANK

Bill of Lading

BENEFICIARY BANK

Funds

L/C Advised

C/L

CORRESPONDENT BANK

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EXPORT L/C CYCLE

It is the reverse of the import cycle. Following steps are involved in the export cycle of L/C:

STEP 1:
When L/C is received by the exporter's bank, it advises the L/C to the exporter and by doing so it becomes the Advising Bank. A photocopy of the Original L/C is prepared and sent along with the Cover note stating that the Original L/C is with the bank and the exporter may collect it after paying the Advising charges.

STEP 2:
After the exporter gets hold of the L/C, the next step is to issue E -Forms. E- Form is in Quadruplicate and is issued when the exporter submits an application to the bank. E -Form contains the following information:          Export Registration Number Type of Goods Quantity of Goods Port of shipment Port of Destination Value of Goods Mode of shipment (Air/Sea) Tenor (Sight/DA) Term of payment

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STEP 3:
Once E-Form is issued to the exporter/it is to be certified by the State Bank of Pakistan within 14days after the date of its issuance. And the goods must be shipped within 21 days after the date of certification of E-Forms. All the details about the goods mentioned in the E-Form are then entered in to the E-Form register. It includes:  E-Form #

 Name of the Exporter  Value of the L/C  Port of destination  Mode of shipment E-Form further states that the maximum number of days for which L/C can be opened is for 180 days. After filling in all the details the register is sent for the final approval by the head of the department.

STEP 4:
After the verification of E-forms, the next step for the exporter is to manufacture the goods according to the specifications mentioned in the L/C. The documents to be submitted by him include:

 BILL OF LADING:
It is a receipt issued by the Shipping Company, which undertakes to ship the consignment to a stated destination signed by or on behalf of the master of the ship.

 PACKING LIST:
It shows the details about the goods, method of packing, the net and the gross weight of each individual item and the total weight of the consignment. Internship Report Page 54

 COMMERCIAL INVOICE:
It is a document, which describes the goods, unit and/ or total price, shipping terms, buyers and seller's references, etc.

 CERTIFICATE OF ORIGIN:
It is a document, which confirms that the goods have been made or manufactured in a stated country. In Pakistan, it is issued by Chamber of Commerce and Industry. This document is not compulsory but should be provided if demanded.

STEP 5:
When the bank receives documents, the bank scrutinizes these documents. This is done to check whether the documents are in accordance with the L/C or not. If these documents don't match the specifications mentioned in the L/C, documents are said to be Discrepant. Exporter is informed about it and is asked to provide the relevant documents free of discrepancies. It is the choice of the exporter to either negotiate the documents or to send them for collection.

COLLECTION:
If the documents are sent for Collection, then the bank sends the documents on behalf of the Exporter and waits for the bill of exchange to mature on a specified date.

NEGOTIATION:
Negotiation can be defined as: A method of finance in international trade whereby the banker will discount an exporter's bill of exchange and therefore credit his account with the face value of the bill less interest and other charges. After the documents are negotiated, amount is paid to the exporter and Internship Report Page 55

This is done solely to keep the bank on safe side in case the party defaults. III. documents and the number of copies and the maturity date. the bank then awaits the payment. Usually the documents sent consist of: I. V. the documents are mailed to the L/C opening bank. in that instance. II. value of L/C. if a party comes to the bank for the first time to do business then margin required by the bank may be 100%. MARGIN REQUIREMENT: Margin required by the bank from a company depends upon the relationship between the company and the bank. it may not ask for any margin. STEP 6: At the end. Incase. A Cover Page is prepared which shows the name of the Exporter's bank. On the other hand. Income on courier. if the bank has a long standing relationship with a company. EXPORT REFINANCE SCHEME In order to avail the facility of export refinance the exporter should be registered with the Export Promotion Bureau and Chamber of Commerce. with holding tax and margin is deducted from the exporter's account. 3 Bill of Ladings 2 Bills of exchange Commercial Invoice (number as required) Certificate of Origin Packing list Commercial Invoice When the documents are sent to the importer. VI.finally the documents are lodged. Internship Report Page 56 . IV.

   Original Letter of Credit or Contract Demand Promissory Note Undertaking stamp Paper (Rs. The Commercial bank has to present as evidence before the State Bank the following documents showing that it has financed the exporter.In Export Refinance three parties are involved EXPORTER Exporter Exporter Financed Bank Refinanced STATE BANK OF PAKISTAN COMMERCIA L BANK Application for Finance Application for Refinance Under Export Refinance the Exporter goes to the bank with a request to finance him showing the evidence that he has been given an order to manufacture goods and export it.100/-) Internship Report Page 57 . The bank finances the exporter after and then the bank goes to State Bank of Pakistan asking for a refinance.

This happens when the exporter shows the original L/C or the contract to the bank.REFINANCE: The State Bank of Pakistan provides refinance for a period of six months and it has been divided into two parts REFINANCE PART 1 PART 2 Pre-shipment Post shipment PART 1:  PRE-SHIPMENT: It means the finance needed to prepare the consignment before shipment is made.100/-. which costs Rs. The bank keeps the Original L/C under lien along with the Demand Promissory note and an undertaking stamp paper. When the bank finances the exporter the Internship Report Page 58 .

which are exported to foreign countries through out the year by a single company EXPORT FINANCING :( EF) It includes items from the statement of Export Earning but only those items are included against which refinance has been availed by the party. At the maturity date the financing has to be returned back to the State Bank. At the date of maturity the bank has to give an Invoice. These days banks charge an interest rate of 8% form their customers and pay 6% to the State Bank of Pakistan. The State Bank issues a demand loan number to the bank signifying that this is the loan which is being granted to the bank. Duplicate Form -E Original and first copy of Bill of Lading. T his Demand loan has got a maturity date before which the commercial bank has to repay to the State Bank. At the end of year two statements are prepared for all the parties doing business with the bank.case is then referred to State Bank of Pakistan. This is given just to show that fi nance was provided to the exporter. These statements are:   Export Earning Export Financing EXPORT EARNING :( EE) It includes all those items.  POST SHIPMENT: In case of Post Shipment. PART 2: In this scheme the exporter can avail finance limit equivalent to 50% of his export performance during the preceding year. Internship Report Page 59 . when the exporter is financed the case is referred to the State Bank.

SONERI BANK usually classified advances in to following types Commercial Corporate SME Commercial Advances are of following types Demand Finance. Moreover the credit department also provides finance facilities to its customers for the following categories according to its terms and conditions and rules. Bank provides this facility to the people who need advance money to meet their requirement. which are two types. what are requirement to apply for this Product. Unsecured Advances. Where as sound marketing skills are required to actually force the walk-in customer to select Soneri Car Financing. Secured Advances. The main source of Advances department is mark up. Cash Finance. Th ese finance categories are CAR FINANCING  Learning From the Car Finance Department This department handles a large number of customers daily and.CREDITS AND CREDIT ADMINISTRATION DEPARTMENT Advances department plays a vital role in the functions of a bank. The SNBL provides loans to customers. how roper files should be maintained. what is the procedure to this department. without overstatement. Export Refinance Part I (Pre Shipment) & others. this department is the third ―busiest‖ department after the Account Opening Department. I just learn about it for the sake of report because I have not worked in this department much.. I learnt how to face the customers conveniently. Party dealing with other banks financial condition of borrower business and as a first step credit proposal is being made. what is that maximum limit. SONERI BANK provides advances. It requires constant customer interaction and requires high level of intelligence to screen the validity of the customers. still stronger skills are needed to scan the incoming customer for validity. how to apply for a car. enthusiastic and committed staff. Internship Report Page 60 . These loans are sanctioned by the head office. Its Credits department is working under the trustworthy.

Borrower’s Basic Fact Sheet for SME’s. Financial Statement of applicant. what the eligible criterion is for Home Finance Agreement. Proper judgment of securities is the most crucial event in the process of lending. Credit line proposal. Because in the case of default. Following is the further procedures of the functions of this department. How the risk can be evaluated. and against these loans kept securities. In the process of judgment they fol low the following principles: Internship Report Page 61 . what are the documents required to get this product. These are the major functions of this department. how to calculate installment. approval process. This department is giving a huge amount of return to the branch. Preparations of offer latter.RUNNING FINANCING  Learning in this department This department was at second floor of the branch. Features of credit department  It provides loans to different organizations. company and trust. and what is the procedure and activities of this department. Default mostly is the result of improper judgment. what is that maximum limit. Partnership. I learnt what the debt to equity ratio is in Home Finance. the securities are the only compensation to the bank. What are the documents that are required from different type of client like sole proprietorship. What are requirement to apply for this Finance.  Proper judgment of these securities is also its duty. HOME FINANCING  Learning in Home Finance department I saw few customers in this department.

Examples are Internship Report Page 62 . REMUNERATION 5. Non-fund Base I. Fund Based II. capacity III.1. on behalf of the customer. character II. capital 2. DISPERSAL 4. Examples of fund based facilities are       Running finance Term Finance Syndication/ Consortium Financing Negotiations of Export bills under L/C Pre shipment Finance (Packing Credit) Import Financing o Finance against imported merchandize (FIM) o Finance against trust receipt (FTR)  Contract Financing II. SUITABILITY There are basically two types of financing I. Fund Based Financial Activities These include all those facilities in which the disbursement of funds takes place from the bank to the borrower. Non-Fund Based Financial Activities These include guarantees of payment or performance of a contract. SAFETY I. LIQUIDTY 3.

Performance Bonds E. Letters of credit  Letters of guarantees A. Others STEPS INVOLVED IN PREPARATION OF CREDIT LINE PROPOSAL STEP 1: INVESTIGATING PROCESS:  Knowing the market place  Risks inherent in lending like marketability risk. Shipping Guarantees B.  Visits to the borrower's place  Plan visit and filling the visit report  Group accounts and bank exposure  Determine facility wise borrowing STEP 2: CONSIDERATION FOR LENDING:  Projected earnings from funding facility  Anticipated business related to this funding facility STEP 3: PURPOSE OF LOAN:  Reasonable  Manageable STEP 4:  REPAYMENT (SOURCES): Identification of sources of repayment Page 63 Internship Report . default risk. Advance Payment Guarantee D. Bid Bonds C. earnings fluctuation risk etc.

STEP 5: SECURITIES:  Bank deposits  Govt. securities  Property etc. STEP 7: EXISTING CHARGES:  Value of existing charges  Residual left after satisfying the existing charges . STEP 6: VALUATION OF SECURITIES:  By valuators  SNBL Bank hires the services of a lawyer and gets a legal opinion from him about any security. SECURITY DOCUMENTS:             Agreement for R/F term of short term on mark-up basis Agreement for D/F 85 T/F of s/m/1 term on mark up basis Memo of confirmation of sale and buy back Letter of set off Letter of lien Letter of lien authority to marketable securities Instrument of pledge Trust receipt Letter of continuity Promissory note Installment letter Agreement of hypothecation Page 64 Internship Report . STEP 8:  NEGATIVE COVENANTS: Restrictions on loan agreement.

e. A voucher is also prepared which shows that the transaction is authenticated. whether the client is still in the sound financial position as he was at the time of issuing credit or not. Dollar amounts are written separately while the other currencies are entere d in the other section. whether the credit limit of the client is expired or not.     Name & Address of Beneficiary Name and Address of Applicant Amount in foreign currency Amount converted in to Rupees (Figures & Words) After the applicant has filled out the form then it is entered into FDD register.  Letter of agreement/undertaking Authority to debit accrued mark-up Up to the level of approval of the credit for a client. FOREIGN REMITTANCES All the foreign remittances are carried out through Demand Draft (DD) and Telex transfer (TT). security management. It must be ensured that the applicant has enough cash in his account so as to debit his account with the amount being transferred plus the Commission of t he bank. etc. Internship Report Page 65 . remedial management. FOREIGN DEMAND DRAFT (FDD): If anybody wants to send a draft then he has to deposit a check equal to the amount being transferred. Application for the FDD is to be filled out which includes the following information. FOREIGN CURRENCY ACCOUNTS DEPARTMENT This department deals with the account of foreign currency. all the activities are done by Credit Department and afterwards all of the monitoring efforts are carried out by the Credit Administration Department i. etc. whether the client is fulfilling all the requirements which were set at the time of contract or not.

On the other hand the beneficiary's account is credited with the concerned amount. taken by the banks to ensure the safety of transactions between banks. It is a precautionary measure.   DD can’t be issued from single customer account to in favor of companies DD can be issued from companies account to in favor of single customer account It can’t be issued for a walking customer FOREIGN TELEX TRANSFER (FTT): FTT is almost similar to FDD as same procedure is followed except the fact that a when a Telex is sent a Test is applied on it. I have gone through almost all the departments except two departments and tried to understand and learn the process of all Internship Report Page 66 . Outward TT: In outward TT the bank debits the party account with the amount being sent. This in turn credits the beneficiary's account. DOCUMENTATION   Outward or Inward Diligence Form R-Form (For Encashment in PKR) In this 6 weeks period. along with the charges deducted (the party sending the amount) and asks the other bank to credit their account. TT is much faster m ode of payment as compared to DD. TYPES OF TELEX TRANSFERS INWARD TT: When a bank belonging to a foreign country says that credit this account by this much amount (from outside) and they themselves debit the party account with the stated amount and the TT charges. at soneri bank limited.

Collection Check whether the document are complete or not i. Negotiation Processing of Doc.e. Activity Checking Head Office Reconciliation State Bank Reconciliation How to approve a credit limit for a client So that is all about my learning about the departmental functions of SNBL thokar niaz baig branch.  I have also learnt how to open an account.C.the activities and these are:  Maintenance of Account opening registers and folders. copy of NIC.  To check the folders consisting of inward and outward remittances and telegraphic transfer.  Maintenance of Remittance registers.e. Inform callers about their current account position.  Counting of the total no of Cheques presented for clearing. Negotiation Payment of Doc.  Sent those Cheques to the Area Office for clearing. Internship Report Page 67 .C Opening and its purpose  Commercial Invoice and L. Clauses  Find out any mismatch between clauses and Invoice              Sequentially arrange all files and Contact Issuance of Export Forms Certification of ―E‖ Form L.  Issuance of DD and Pay orders local and foreign both. To fill incomplete forms and attached in a folder.  L. documents necessary for account opening  Phone banking i.C Confirmation Processing Doc.  Checks the Stamping on cleared Cheques and enter those cheques in record. permanent address etc.  To fill incomplete documents.

organization or operation. . stakeholders and their own employees.SWOT ANALYSIS OF BANKING INDUSTRY SWOT analyses take into account the strengths. Internship Report Page 68 . opportunities and threats facing a business. The government's regular policy has paid rich dividends with the nationalization of major private banks of Pakistan. Policy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms. A SWOT analysis of the banking industry will list these four components and illustrate for executives and management the areas the industry is performing well in not so well in. Old private sector banks also have the need to fundamentally strengthen skill levels. Extensive reach: the vast networking & growing number of branches & ATMs. risk management and the overall organizational performance ethic & strengthen human capital. The SWOT also highlights the areas where there is opportunity to develop further and areas where there is potential to be hurt in the future. The banking index has grown very fastly. STRENGTHS:   Pakistani banks have compared favorably on growth. Pakistani banking system has reached even to the remote corners of the country. Pakistani banks are considered to have clean. strong and transparent balance sheets relative to other banks in comparable economies in its region. In terms of quality of assets and capital adequacy. in terms of serving customers. enhancing the payments system and integrating regulations between commercial and co-operative banks. Bank lending has been a significant driver of GDP growth and employment. service operations.     WEAKNESSES:   PSBs need to fundamentally strengthen institutional skill levels especially in sales and marketing. weaknesses. asset quality and profitability with other regional banks over the last few years.

Structural weaknesses such as a fragmented industry structure. consumers will increasingly demand enhanced institutional capabilities and service levels from banks. actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms. lack of institutional support infrastructure. Attracting. Banks will no longer enjoy windfall treasury gains that the decade-long secular decline in interest rates provided. With increased interest in Pakistan. developing and retaining more leadership capacity       Foreign banks committed to making a play in Pakistan will need to adopt alternative approaches to win the ―race for the customer‖ and build a value-creating customer franchise in advance of regulations potentially opening up . weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs). credit and operations. At the same time. Maintaining a fundamentally long-term value-creation mindset. competition from foreign banks will only intensify. New private banks could reach the next level of their growth in the Pakistani banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/HNI segments. This will expose the weaker banks. they should stay in the game for potential acquisition opportunities as and when they appear in the near term. restrictions on capital availability and deployment.  The cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies. and in fee-based income and investment banking on the wholesale banking side. Internship Report Page 69 . restrictive labour laws. OPPORTUNITIES:  The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards. These require new skills in sales & marketing. Given the demographic shifts resulting from changes in age profile and household income. unless industry utilities and service bureaus. consumer finance and wealth management on the retail side. Reach in rural Pakistan for the private sector and foreign banks.

weaknesses. SWOT ANALYSIS OF COMPANY SWOT analysis is a process to identify where we are strong and where we are vulnerable. This analysis can be performed on a product. our weaknesses. STRENGTHS  Strong Financial Position As we can see in the financial statements of the bank. a company or even on an individual. on a service. mortgages and investment services are expected to be strong. where we should defend and where we should attack. especially retail banking. THREATS:    Threat of stability of the system: failure of some weak banks has often threatened the stability of the system. Internship Report Page 70 . With the growth in the Pakistani economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services. It tells us our strengths. which is a very positive sign. The Earning per share has been increased on a rate of about 50%. opportunities and threats of Soneri Bank. Increase in the number of foreign players would pose a threat to the government as well as the private players. the opportunities which prevail in the market and the threats which we may face from our competitors and other from other potential factors. Here we have applied this very useful technique to identify the strengths. Rise in inflation figures which would lead to increase in interest rates. the financial position of the organization is very sound and its profitability is in increasing.

It has greatly increased the customers’ confidence in the bank  Huge Expansion Plan Due to its strong financial position the bank has undergone a huge expansion plan to compete with the existing bank all over the country and with the passage of time the branch network is expanding at a very good pace. to get the economic prosperity. The bank has state of the art and purpose built branches where all the modern technologies are provided to get the efficiency of the workforce and the customer satisfaction. is fully supporting the bank management due to its policy to maximize the investment in the country.  Islamic Banking Division Internship Report Page 71 . Thus the bank is getting maximum output from its young and energetic workforce by spending comparatively less on their remunerations.  Young and Energetic Workforce As the bank is a newer one in the country.  Conducive Environment The management of the bank is very much concerned with the development of and improvement of the working environment.  Govt. Support and Encouragement The govt. Highly Qualified Employees The bank has highly qualified and skilled workforce and it has succeeded to attract the best banking professionals from across the country due to its growing pace and sound reputation.  Fastest Growing Financial Institution Due to its successful business policies and the strong financial position the bank has achieved the reputation of fastest growing financial institution in the country. the bank has an advantage over its competitors because the majority of its workforce is young and not very much over aged.

On the other hand the bank has revised its salary increments policy to decrease the increment rate.  Over work Load on Employees It was observed in the branch that as compared to huge business the bank is dealing in. And sometimes lack of experience becomes a hurdle while serving to the customers. they lack in their experience. online charges. statement charges. have to do late sittings to complete their tasks. the workload is high and the employees. especially the credit department. as a result a decreased motivation level of employees is observed. of employees is lesser and thus there is an increased workload on the employees.  Employees are not very much Motivated As discussed before. Bank losing a lot of its income likes (Cheque book charge.The bank is one of the pioneers of the commercial banks who have started the Islamic Banking along with their conventional banking.  Inexperienced workforce As the majority of the workforce consists of young professional. which have a very experienced workforce. and other things) because of management. Due to this the efficiency of the employees is reduced. It is the point where they feel difficulty while competing the other bank. the no. WEAKNESSES  Waiver of charges Currently the middle management of SoneriBankis the big reason for waiver of charges. This is a weakness of bank. Internship Report Page 72 . The bank has a separate network of its Islamic Banking Division which has 16 branches across the country and this network is also expanding at a very good pace.

 Spending Practices of Mass Internship Report Page 73 .  Mega Projects Financing As the increase in overall business activity in the country.  Huge Demand for Consumer Financing The increase in per capita income and overall economy has resulted into a great demand for the consumer financing especially for home finance and car financing and it is said that this trend will increase more in future.  Growing Trend of Islamic Banking There is a very good growth trend in the Islamic banking in the country and in the world as well.  Increased Interest Rates The SBP has revised the interest policy and the interest rates have been linked with the KIBOR rates. The rapid growth of economy has resulted in the increase in the growth rate of all economic sectors especially in the banking sector which is growing at a fastest speed than ever and in future the growth is expected to increase even a higher rate.OPPORTUNITIES  Rapidly Growing Economy At present the Pakistan’s Economy is growing on a very fast pace. Soneri Bank has the advantage of having fully fledged Islamic Banking network and the growth in this particular field can be very fruitful for the bank. the investors are launching various types of Mega Projects especially in housing and textile the bank has a great opportunity to finance these projects at very profitable term. The bank can earn a lot by focusing on its consumer financing sections. Due to which the banks interest rate has been substantially increased which will greatly increase the banks’ profitability.

the govt. Such as political uncertainty. increase in poverty etc. This trend can result into the union of some leading banks which can give tough time to the bank and it will become difficult for the bank to compete with them.  Privatization of Banks Due to its privatization policy.As the Pakistani’s are known for their extravagant practices.  Trend of Mergers There is a trend of mergers among the banks to become prominent in the market and to get the maximum market share. As a result there are permanent threats of future risks and losses for the bank. but there are many factors which results in the uncertain position of the economy. Thus it can become a threat for the bank. This can result into an unfavorable situation for the bank.  Risk of Defaults As discussed earlier that there is a trend of launching mega projects in the country. etc. is privatizing the state owned banks. Thus there is a very good scope for the bank to run successful business in such circumstances. This can result into the failure of this project which can make it difficult for the banks to recover their funds from these defaulters. The change in management may result in the increase in the efficiency and productivity of the banks. WTO. THREATS  Uncertainty of Economy Although the economy is growing at a good pace. Internship Report Page 74 . and to fulfill their funds requirements they don’t hesitate from getting loans from banks. And every one is involved in this trend without taking any measure for the successfulness of these projects.  High Rate of Inflation The inflation rate of the country has gone above the 10%.

there are following problems I have found which are directly affect on efficiency and performance of the bank. Because a single person is handling more than one departmental works as a result he/ she is unable to pay proper attention to a customer.IDENTIFICATION OF PLAUSIBLE PROBLEMS During my internship at this particular branch of SNBL. bank should tighten up control on expenditure. Internship Report Page 75 . Bank should provide similar facilities to all its branches in big cities. SHORTAGE OF STAFF There is shortage of staff in the branch which is a problem for the management and customers as well. So there should be proper planning for every work. There problems are also called as an internal problems. It will save a lot of time of the bank staff afterward during of the conduct of the account of that customer. LACK OF PROPER GUIDANCE Bank should adopt such an induction plan that when a customer opens his account with the bank. LACK OF PROPER PLANNING Bank should make a plan to gear up its recovery efforts on war footing and reorganize the recovery function of global bases. Bank should open more branches in the remote areas of the country to get deposits and idle resources. There is no any proper planning in this regard. In addition. The standard of service and other facilities are far better as compared to smaller cities. LACK OF ADOPTATION OF ADVERTISING Bank should launch advertising campaigns through out the year to promote the habits of savings in the people. So these are discussing below. he should be supplied with a booklet which enables him to know the procedure of filling the cheques and pay-in-slip etc.

The performance reward linkage should be making strong as it is said. I suggest that such an internship program highly integrative for the students of commerce education so that the students should be enquired with the knowledge of practice world .I do summarize that it would be a great help to me in selection of job or future field of work. In this way their efficiency is affected and hiring more employees can reduce their work." The SNBL should also try to make its employees happier. collection of bills. Bank should properly advertise and Communicate to public about the services provided by it. countering of cash and then entry of these. RECOMMENDATIONS FOR THE COMPANY It was an interested experience to do internship in Soneri Bank Limited.LACK OF DIVION OF WORK The billing system of bank must be improved to facilitate the customers and workers. Here I am putting some suggestions.g. So in this way more effective strategies can be formulated. Bank should give some more incentive to its employees in order to remove the conflict between lower and higher officers and should try to improve the working condition of the bank. "A happy employee delivers more than he receives from the organization. The staff was highly cooperated and due to their help I learned big deal about modern banking.  It is observed that the employees were overburdened so they have to stay at branch till late at night. which will enable the bank to compete with other banks more effectively & efficiently. The work should be divided among the staff e. The employees should be signed jobs for specific period and than they should shifted to other department so that they gain knowledge of other jobs. A research cell should continuously try to gather information about the present action so its competitors and expected future actions. The bank’s management should give more incentives and pay scale of officers should be revised & improved. Page 76      Internship Report . so that more customers will be attracted.

which are very high. Deterioration in efficiency is mostly due to promotion without merit. Audit should be held internally. IT draw backs should be improved. Special attention should be given to the behavior of the employees towards the customers. to reconstruct the personnel policies. New young talent should be introduced to inject the new ideas. efficient and qualified staff can be formulated. System and operations should be more defined and organized. There are many employees who are working on ad-hoc basis creating dissatisfaction. In this way more intelligent. as customer is the most important person for any bank. Selection should be through newspaper advertisements. Branch manager should be trained in the field of selling to serve better according to the expectation of customers. Expenditures must be control. The deserved should be made permanent employees. Rather there should be an Audit Department in the branch to make audit on daily basis. So promotions must be awarded on merit and also when due.          Internship Report Page 77 . Political influences in the bank should be eliminated. Administration drawbacks should be improved by the strict control of general issues. There is also a need of proper recruitment and selection program. The recruitment policy should be fair and transparent. This can become so helpful as different banks are having this department of their own.    There is immediate need.

Their good attitude gave me more confidence to learn more and to ask if I have any query in my mind. they work more than their working hours and it is all according to their will. They helped me to understand the activities of a bank to possible extent. However management is very demanding about the targets but good reward at the achievement of assigned targets is awarded. So far my learning is concerned. During my internship training I gathered information regarding how a successful bank operational aspect decorticated with the practical. I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with experienced cooperative & intelligent staff. Employees at Bank are quite efficient. commitment to organization. Besides their ever going activities they never get irritant by my questioning. all the employees at branch were quite cooperative. Overall working environment is comfortable. Behavior of senior executive of bank is very polite and they are caring about the individual’s career and their growth. Internship Report Page 78 . The training was beneficial because it helpful me to aware a real life working environment. Management of branch cares a lot of its employees and considers them as the Asset of bank. I had made an honest efferent to present the working & operation of Soneri Bank Limited Thokar Niaz Baig Branch Lahore in simplest way. I found my internship training at Soneri Bank Limited Thokar Niaz Baig Branch Lahore to be a very rewarding experience. It also shows their loyalty. Therefore.CONCLUSION Soneri Bank is a good Organization in the way that anybody can join it for his/ her long-term career. Bank’s employees have to bring their bank among the list of good banks.

U. Moreover I use internet to collect secondary data by surfing the following websites and links.com www.S.com/about_6700715_swotanalysis-banking-industry.google. 2008-09 Edition .   www.soneribank.html#ixzz1dqtnFoXN SWOT Analysis of Banking Industry | eHow.com/about_6700715_swotanalysis-banking-industry.Banking] SWOT Analysis of Banking Industry | eHow.ehow.com [Excerpted from Bureau of Labor Statistics.com http://www.html#ixzz1dqtROUSB Internship Report Page 79 .com http://www. Department of Labor.ehow. Career Guide to Industries.The first important thing is the discussions with the staff of the bank especially with the Operation manager of the branch.

APPENDICES Internship Report Page 80 .

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