Internship Report On: Summit Bank Limited

Submitted By: Hafiz Shahid Farooq

Roll No: (M12BBA047)

Session: 2012-16
Hailey College Of Banking And Finance
University Of The Punjab Lahore.

2
 (Acknowledgement)

All gratitude and thanks to almighty “ALLAH” the gracious, the most merciful and
beneficent who gave me courage to undertake and complete this task. I am very
much obliged to my ever caring and loving parents whose prayers have enabled
to reach this stage.

I am grateful to almighty ALLAH who made me able to complete the work

presented in this report. It is due to HIS unending mercy that this work moved
towards success.

I am highly indebted to Branch Manager, Mr. Abdul Azeem Baig for providing me
an opportunity to learn about the Banking system of “Summit Bank” which is vital
ingredient of B.B.A (Hons) Program. I am very grateful to my trainer Mr. Rizwan
Ahmad, (Operations Manager), for providing me guidelines for the completion of
this report.

I am grateful to Ms. Tehreem Ijaz (Account Opening Officer) without her support
I may not be in a position to have a successful internship program.

I feel great pride and pleasure on the accomplishment of this report.

 TABLE OF CONTENTS
ORGANIZATIONAL STRUCTURE 10

Remittances Department 31

Chapter 41

7 41

(SWOT ANALYSIS) 42

Suggestions: 45

Conclusion: 46

(EXECUTIVE SUMMARY)

The Pakistan operations of Rupali Bank Limited were acquired by Arif Habib
Securities Limited under the Scheme of Amalgamation approved by the State
Bank of Pakistan. The name of Rupali Bank Ltd was subsequently changed to
Arif Habib Rupali Bank Ltd and then finally to Arif Habib Bank Ltd in October
2007. On 31st March 2010, Suroor Investments Ltd, a company incorporated in
Mauritius, acquired 59.41% stake in Arif Habib Bank Ltd from Arif Habib
Securities Ltd, and on 18th August 2010, Arif Habib Bank Ltd was rebranded
as Summit Bank Ltd.
Suroor Investments Ltd, also entered into share purchase agreements (SPAs)
with majority shareholders of MyBank Ltd and Atlas Bank Ltd, who after
completion of the transactions have merged in Summit Bank Ltd expanding the
Bank’s geographical outreach with a network of 188 Real – Time Online
branches across the country. In line with the management’s vision of making this

4
bank a front runner amongst its peer banks, this merger has brought synergies
and access to a wider range of markets and customers.
Risk management is an integral part of the Bank’s strategic decision making
process which ensures that the Bank’s corporate objectives are consistent with
the appropriate risk return trade-off. The Bank’s risk management philosophy is
that all risks taken must be identified, measured, monitored and managed with
in an efficient risk management framework and that return must commensurate
with the risk taken.
Commercial banks play a key role in the economy both at a national and global
level. The importance of commercial banks include the fact that they serve as a
trusted and safe place where the funds of people and businesses can be kept
on their behalf, reducing the necessity to keep large sums of money on the
private or business premises. On the international level, commercial banks serve
as a source for transferring money from one country to another, eliminating the
need to travel with money.

The Bank is promoting a culture of excellence, leadership and customer focus to

achieve high levels of operating efficiency as well as the ability to deliver
outstanding services to customers. The Bank is further strengthening its
Compliance Culture and improving all processes, procedures and systems to
attain sustained growth and profitability. With fresh capital injection and the
introduction of Islamic Banking, it is expected that bank’s overall performance
will improve significantly.
The Management recognizes that it needs to invest in continuing training and
development of the Bank employees at all levels. In addition the Management is
committed to continuously improving the work environment and in rewarding
good performance by the employees so as to retain high quality human resource.
I have also mentioned the vision and mission of Summit BANK Limited along
with main objectives of branch where I did my internship.
My internship report introduction, History, Hierarchy Chart, Product and services,
Brief Introduction of all departments, My personal practical work in Summit
BANK Limited, SWOT analysis of the branch where I did my Internship, Ratio
analysis and interpretation, Balance sheet and profit and loss account
statement, Future prospects of the Organization, Conclusion,
Recommendation for Improvement.

(ORGANIZATIONAL STRUCTURE)

● Board of Directors:

Mr. Nasser AbdulahHussainLootah Chairman

Mr. Husain Lawai President & CEO
Mr. Nasim Baig Director
Mr. Asadulah khawaja Director
Mr. M. Farid-Uddin Director
Mr. Dr. Ahmed Khalil Director

6
 Mr. Shehryar Farooq Director

● Management Team:

Mr. Husain Lawai

President & CEO

Mr.Syed Muhammad Anwar Lutfullah

Consumer Head Operations Information Technology,
Consumer, Brach Banking & Corporative Communication

Mr.Zahir Esmail
 Chief Operating Officer,
SME & Commercial Banking Divisions

Mr. Ahsan Raza Durrani

Group Head Corporate and Investment Banking,
Financial Institution & Capital Market

Mr Gulraiz Khan
Group Head Co-ordination&Control Department

Mr. Pervez Mobin

Head of Human Resource Division

Mr Asif Qasim
Head of Treasury Division

Mr Syed Asif Ali

Head of Risk Management Division & Head of Credit
& Credit Administration & CAD

Mr Irfan Saleem Awan

CFO & Company Secretary

Mr Asadullah Khawaja
Head of Audit

8
 VISION AND MISSION:

Vision:
To be the preferred provider of financial products & services to the markets.

Mission:
● To be a financial institution based on Trust, Integrity, and Good
Governance.
● To deliver financial solutions to our customers.
● To provide equal opportunities & professional working environment to our
employees.
● To provide fair return to our shareholders on their investment.
● To serve the community at large.
● To discharge corporate social responsibility.

(BRANCH PROFILE)

Branch Code 1-3-9

Branch Name Summit Bank Garden Town Branch, Lahore

Branch Address 19A Ali Block New Garden Town , Lahore

Branch Manager Mirza Abdul Azeem Baig

Phone 04235911361-4

Fax 04235911365

Operations Manager Mr. Rizwan Ahmad

10
Teller Mr. Amir Chohan

Relationship Managers Mr. Majid Nazir

Customer Service Officer Ms. Samia Parvez / Mr Adeel Azam

Account Opening Officer Ms. Tehreem Ijaz

Business Developing Officer Mr. Sajjad Ali

Credit Rating of Summit:

JCR-VIS has maintained the credit ratings of the bank“A” for medium to long
term, and “A-2” for the short term.

R
History

ORGANIZATIONAL STRUCTURE
The organisational structure of Summit Bank is functional. Summit Bank has
nationwide network of branches. Most of the departments have been divided on
the basis of functions.
Although the current structure of the organization promotes economies of scale
because all employees are located in the same department and share the same
resources but this structure has also restricted coordination among the
departments and hence lead to a lesser degree of innovation.
In order to have a flat, fast and agile corporate structure, the operating model of
the Bank was restructured in line with internationally acceptable banking
standards. A number of policies and procedures including the prudent risk
management have been put in place.
 Structural Dimensions

Formalization:
Summit bank is highly formalized. The reason is that the customers are to be
satisfied and the management can’t bear any negligence in the customer’s
records. To have a proper and quick database of customers, formalization is
there. High formalization in Summit bank is specified to every employee in the
departments but there is no rigidity found in this context, every employee is
volunteer to help other. Some rules are there, like to maintain the record of
customer first or to deal customer fairly, no smoking and the things which irritate
the customers are not allowed, things are to be done properly and in pleasant
manners and procedures are there to perform those rules.

Specialization
In today’s dynamic environment and tough competition, banks need efficiency
and have to perform specialized tasks. There are many departments in Summit
Bank and jobs are divided among the employees of each department.
Specialization among the department is there. As every department is
performing its task separately, the employees are highly efficient in performing
their work in the specialized environment.

Standardization
In Summit Bank, standardization is there. There are standard rules and
procedures defined by the top management for the execution of tasks. The
organization of the standards keeps every employee aware of the procedures
adopted during different situations.

Hierarchy of Authority
Hierarchy of authority of Summit bank is short because there are so many people
working under the supervision of one person. So the span of control is wide.

12
 Centralization
In Summit bank the Centralization is high and the goals are set by the top
management and low-level management just works according the guideline
provided by the top management.

Complexity
Complexity refers to the variety in the tasks performed. In Summit bank the
vertical complexity is low and the horizontal complexity is high because of variety
of activities performed and the number of departments there in bank.

Professionalism
Professionalism is high in Summit Bank. When new employees are being hired
they are provided with 3 months training (probation) under the Shadow of
experienced and skilled researchers in terms of education, career development
and above all, ethics training and also by existing employees.

Chapter
2
What Is Bank?
It has not so far been decided as to how the word ‘Bank’ originated. Some
authors opine that this word is derived from the words ‘Bancus’ or Banque’ which
mean a bench. Other authorities hold the opinion that the word ‘Bank’ is derived
from the German word ‘Back’, which means ‘joint stock fund’. It is therefore, not
possible to decide as to which of the opinion is correct, for no record is available
to ascertain the validity of any of the opinions:
In the words of G W Gilbert
“A banker is a dealer in capital or more properly a dealer in money. He is an
intermediate party between the borrower and lender. He borrows one party and
Lends to Another”
Types of Banks
● Central bank or state bank.
● Commercial bank.
● Exchange bank.
● Industrial bank.
● Agriculture bank.
● Investment bank.
● Saving bank.

Central Bank

14
Every country has its central bank or state bank. Its major function is to carry out
a country’s monetary policy with an aim to safeguard its financial and economic
stability. It has the monopoly of note issue. It is also the custodian of money
market. State bank is the Banks bank and lender to the government.

Commercial Bank
Commercial banks are profit earning concerns. They receive deposits and
advance loans to the borrowers. They greatly help in financing for internal and
external trade of the country.

Exchange Bank
The main function of the exchange bank is to finance the foreign trade by the
purchase and sale of foreign currencies in the form of drafts, bills of exchange,
telegraphic transfers. They also perform the function of commercial bank.
Receiving deposits and advancing loans.

Industrial Banks
Commercial bank cannot afford to block their funds in long term investments.
The industrial banks receive long term deposits and finance the industries by
providing them long term credits. In Pakistan the Industrial bank named as
Industrial Development Bank of Pakistan (I.D.B.P) was established in 1961 for
this purpose.

Agricultural Bank
Agricultural bank provides short and long period loans for financing agriculture.
The agriculturists need short and long term loans for meeting their day to day
and long term requirements for making permanent improvement in the land. In
Pakistan Agricultural Bank is named as Agricultural Development bank of
Pakistan (A.D.B.P) and it was established in 1961.
Investment Bank
The main function of investment bank is the merchandising of shares and other
Securities.

Saving Banks
These are the institutions which are sponsored by the government for having
facilities to the people and small means. These banks collect small saving of
people and allow them to withdraw in small amounts. Also another institution i.e.
National Savings is working in the same capacity.

State Bank of Pakistan

The State Bank of Pakistan is the central bank of the country. Usually the starting
point for a central bank is a banking system that is already in place - the banking
system necessitates the presence of a central bank. But the State Bank of
Pakistan (SBP) is unique in the sense that it started its function in a newly born
country, where it also had to shoulder responsibilities of developing and
rehabilitating a banking system and the economy, in addition to the traditional
central banking functions. Performance of the Bank since its inception in 1948,
as reviewed in subsequent pages, shows that it has faced all the challenges with
a great zeal and commitment. The founders of the Bank set a multi-dimensional
target before it that included not only regulation of the monetary and credit
system but also the growth of this system. The vision of its founders was a stable
monetary system in Pakistan with fuller utilization of the country’s productive
resources (SBP Act, 1956).

16
Chapter
3
History & Introduction of Summit Bank:

UAE-Based group Suroor Investment has taken over Summit Bank, a

microfinance specialist in Pakistan. This acquisition follows the takeover of
following three commercial banks in Pakistan:
ArifHabib Bank,Atlas Bank&MyBank.

Suroor Investment is trying to get a foothold in the busy Pakistani market, which
has more than 30 commercial banks.

18
The takeover of three commercial banks – Arif Habib Bank, Atlas Bank and
MyBank – by Suroor Investment has been followed by acquisition of a
microfinance bank in Pakistan.
Suroor Investment, a United Arab Emirates-based group, has acquired a
microfinance bank and an announcement in that regard will be made soon, said
Summit Bank Senior Vice President Anwar Lutfullah in a talk with The Express
Tribune after a press briefing on the re-launch of Summit Bank, formerly Arif
Habib Bank.
The group made a decision about entering the crowded market of Pakistan which
has more than 30 commercial banks with an aim of making a mark in the financial
sector, said Summit Bank Chief Executive Officer Husain Lawai.
In December 2008, Suroor Investment made its first step in the domestic
financial sector by acquiring ArifHabib Bank followed by Atlas Bank. MyBank
merger with the two banks has been approved by both the bank’s shareholders
and the transaction is expected to be completed by March, said Lawai.
Suroor Investment has invested around $125 million in Pakistan’s financial
sector over the last four years while another $50 million is on the cards, he said.
E-Banking comes to the country
“We will not ‘copycat’ services offered by local banks,” Lawai said while unveiling
a plan to become the first bank to offer e-banking services. E-banking will be
online in two months, he added.
Customers will be able to transfer funds, pay utility bills, re-charge mobile phones
among other e-banking services from their offices and homes, he said.
The bank will not only focus on e-banking but also aims to establish 50 new
branches every year. It currently has a network of 80 branches in 20 different
cities.
Mergers were not easy as 200 employees were laid off, mostly from Atlas Bank,
who had been recently recruited for a new department which the new
management had no plans of opening, informed Lawai.
However, these former employees have been kept on the priority list and will be
considered when the bank starts fresh recruitment. From next year, the bank will
add 250 people to its workforce annually, he said.
The bank’s customer deposits have gone up to Rs62 billion and advances top
Rs44 billion following the mergers.
Published in The Express Tribune, February 8th, 2011

The Summit Bank Limited has completed acquisition of MyBank Limited’s 59.3
per cent shares for Rs2.5 billion on Wednesday.
Summit Bank Limited bought 314.7 million shares of issued paid-up capital of
MyBank at Rs8 per share, according to a notice sent to the Karachi Stock
Exchange.
The share price of MyBank closed at Rs2.05 during trade at the Karachi Stock
Exchange – much lower than the price paid.
In December 2008, UAE-based group Suroor Investment made its first step in
the domestic financial sector by acquiring ArifHabib Bank followed by Atlas Bank
and now MyBank. The three banks have been merged and re-launched as
Summit Bank.

Suroor Investment made an investment of more than $125 million over the last
four years to enter the domestic financial sector. They also plan to make an
additional investment of $50 million.

20
These shares have been acquired from Iqbal Ali Mohammad and other
shareholders, according to the notice.
As a result of the change in shareholding of MyBank Ltd, seven new directors
have been elected. The move is, however, subject to approval from the State
Bank of Pakistan.
Summit Bank’s stock fell Rs0.15 to close at Rs2.65, while MyBank’s stock rose
marginally by Rs0.05 to close at Rs2.05 during trade at KSE on Wednesday.

Deposit Products:

● Current Account
Summit Bank Current Account is a convenient and secure way of holding
your money in local and foreign currencies

● Saving Account
Summit Bank’s Savings Account is the most convenient way to manage
your savings in local and foreign currencies. This Savings Account has
been designed to provide you with easy access to your money, as well as
a higher rate of profit

● Term Deposits
Term Deposits are offered by Summit Bank to the following categories of
customers:
● Individuals (single or joint)
● Minors (to be operated by the guardian)
● Charitable institutions
● Provident fund & other funds of benevolent nature
● Local bodies
● Autonomous corporations
 ● Limited companies

● Mahana Amdan
Rs.100,000 to Rs.20 million.

Rate of Profit:
For individual, Corporate & Financial Institutions.

Term Deposits Expected Rate of Profit

3 Months 8.50%
6 Months 9.75%
1 Year 10.00%
2 Year 10.50%
3 Year 11.00%

● Daily Product Account

A unique account where your money begins earning interest as soon as

you make a deposit. Interest is calculated on your daily closing balance
and credited to your account monthly, which means you make money
from the day of initial deposit to the day that you withdraw your funds
Hamara.

● Hamara Faimly Saving Account

22
 Summit Bank brings a solution to assure parents of their commitment to
their children. With more values, more expertise and more solutions,
Summit Bank innovates a saving account that serves the entire family.
Get your entire family to bank with Summit Bank, and enjoy vast privileges
and unique benefits that go hand in hand with Summit Innovations.

● Summit Advantage Account

Summit Advantage Account is a unique combination of exceptional
returns on your investment coupled with a facility to avail up to 70%
financing; and that’s not all, it comes with an added advantage of no
additional mark up!!!

Corporate and Investment Banking

Our Corporate & Investment Banking Group focuses on attracting and serving
Blue Chip Customers. Our forte is providing exemplary customer service using
the “Single Window” concept and “Product Superiority.

Our specialist area in Investment Banking

 ● Project & Structured Finance
● Syndications & Debt Capital Market
● Equity & Advisory
● Bonds Structured Finance
● Leveraged Buyouts
● Privatization
● Equity Underwriting & Placement
● Mergers
● Corporate Restructuring
● Syndicated Loans
● Project Finance
● Private Equity
● Equity De-Listing
● Acquisitions

Electronic Banking

Summit Bank is one of the leading banks in Pakistan in terms of electronic

banking. We offer our customers a diverse range of electronic services and
convenient banking options through various different channels, such as ATMs,
mobile phones and Internet.

24
Our Mobile Banking allows customers to avail a variety of banking services of
purely SMS-based technology, including mobile balance recharge and utility bill
payments, as well as account information.
Internet Banking is another channel on which we offer extensive banking
services. Customers can view account information, pay bills, transfer funds, and
conduct many other transactions through their account(s). A fast, secure and
convenient way to bank.

Internet Banking
Summit Bank offers a secure, fast and convenient Internet Banking channel with
a range of services. It will change the way you bank today.
Internet Banking ensures that you have convenient access to your account and
banking services, no matter where you are.

Contact Center
Summit Bank’s Contact Center is state-of-the-art, based on the world’s leading
technologies. For any queries, concerns or complaints, you can call our Contact
Center toll free, at 0800-24365 – 24 hours a day, 365 days a year.
An interactive voice response (IVR) system allows you to bank directly and
independently, without even speaking to our Phone Banking Officers.

Un-Payments
With a Ufone connection and a Summit Bank account, you can avail convenience
like no other.

You can easily utilize the following services from your mobile:

● Balance Inquiry
● Mini Statement
 ● Utility Bill Payments*
● Prepaid Ufone Balance Recharge
● Postpaid Ufone Bill Payment

Mobile Balance Recharge

Anywhere, anytime, every network! Summit Bank’s Mobile Balance Recharge
service, the first of its kind, is the easiest and quickest way of recharging your
own and your friends’ and family’s mobile airtime.

Bill Payments
Summit Bank Bill Payments is an electronic bill payment service for your
convenience. So you can pay your utility bills in a smart and hassle-free manner!
You can pay your bills over SMS, Internet Banking, at any Summit Bank ATM,
or by calling our Contact Center at 0800-24365.

Inter Bank Funds Transfer

With our IBFT facility, you can easily transfer funds to accounts in other banks
using our ATM or Internet Banking.

Summit Bank IBFT enables you to send and receive funds on a real-time basis
to and from any account holder of 1-Link IBFT participating member banks.

E – Statement
E – Statements a convenient facility, through which you can choose to receive
your account statements over email, so you can access your statement
whenever you choose, wherever you go. The paperless service allows you to
save account records without any paperwork.

Channels of Foreign Remittances

26
Amanat Cash
Summit Bank is affiliated with PRI (Pakistan Remittance Initiative – A joint
venture of ministry of finance and State Bank of Pakistan) with 165 own branches
and 850+ partner payout locations nationwide. All branches are online.
Summit Bank Ltd has the ability to transfer funds into beneficiary’s account
instantly through IBFT and RTGS enabled Banks (which covers +90% account
holders in Pakistan). Funds will be directly credited to beneficiary accounts
FAST, FREE & in secure manner.

Amanat Cash Services include the following

1. Cash to Account (INSTANT BANK TRANSFER)

2. Cash-to-Cash Money Transfer (Instant. Cash over Counter)
3. 9 am to 8 pm remittances disbursement services at select branches in all
major cities to facilitate the beneficiary to collect the payments over the
counter, which no other bank offers.
4. Cash-to- AMANAT Card* (Remittance Card Service for the Beneficiary)
5. Cash-to-Cash Home-delivery Service*.

*=The system also generates SMS to the Beneficiary intimating him/her about
the incoming remittance. Another SMS is sent to the remitter as soon as the
payout to the beneficiary is successfully done. A dedicated call center is available
for customer support and International Remittance Partner support. The service
is offered free to the customers availing pay-in and payout services

Western Union
We offer Cash over the Counter services in association with Western Union in
order to provide quick and convenient delivery of cash. No matter where you are
around the globe, if there is a Western Union in sight, you can most easily
transfer funds to your loved ones. This payment can easily be picked up in a
matter of moments at dedicated Western Union counters in our branches. No
account at Summit Bank is required for this service.

Western Union Money Transfer

The Western Union Company, under the Western Union, OrlandiValuta and Vigo
brands, touches people around the world with 379,000 Agent locations in 200
countries and territories. Hundreds of millions of people currently live outside of
their home countries and use Western Union services to remain connected to
their families and homelands. Western union money transfer is a fastest way to
receive money worldwide.
There are other banks and institutions that are dealing in Western Union. They
include National Bank of Pakistan, Pakistan Postal Service, Dollar East, and
Master Currency etc. SUMMIT acts as agent between the sender and the
receiver. Only receiving money option is there in SUMMIT.

Procedure of Payment
The Western Union is a counter payment which means that the sender of the
money does not need to have an account with SUMMIT. The procedure followed
by the remittance officer in this context is as follows:
● The person who wants to receive money is given the Western Union
Money Transfer form.

● The person fulfils the following details on the form:

o Date.

28
 o MTCN (Money Transfer Control Number). It is a unique number
which is given to the person remitting the money abroad by the
money exchanger of that particular country.

o Sender Name. The name of the sender must include the surname.

o Sender Country.

o Amount in PKR (Approximate Amount).

o Receiver Contact.

When the customer completes the form, the remittance officer asks for the
photocopy of the valid identity card of the receiving person. If the ID card is not
available, the photocopy of the passport is taken from the customer. The officer
then makes the needed entries in the Western Union software which is installed
at SUMMIT. The entries are made in the software in the form called as “To
Receive Money”. After making the entries, the print out of the form is taken, the
officer signs the western union form. The money transfer form is kept by the bank
for its own record purposes. The customer is given the “To Receive Money” form
and the customer puts his/her signatures on the form and takes the payment
from the counter by presenting such form and photocopy of ID card.
At the remittance department, my supervisor also told me how to issue a term
deposit receipt because this was also the responsibility of the remittance officer.

Express Money
SUMMIT bank also offers foreign remittance n transfer of money through another
safe mode that is express money. The express money is a counter payment
which means that the sender of the money does not need to have an account
with SUMMIT.
 Chapter
4

30
 (Internship Experience)

Softwares of Summit, I Worked and Learned

H+ Banking Software
In Summit bank I was told about H+ banking software .It covers complete general
online Banking. However they don’t allow to use software to internship person.
It provides a centralized System of record keeping; with the help of this software
bankers perform all of their transactions in a swift way. In this software my area
of work includes:

● Preparation of customer account statements

● Preparation of withholding tax certificate.
● Preparation of Profit certificate.
● Preparation of Export certificate.
● Customer account balance.
● Verification of signature.
● Customer personal information.
● Dormant activation.
● CNIC updates.
● Vouchers for lockers, cheaque books, TDR etc.

Auto Banker app ab2 Software

Atlas Bank used Auto Banker app ab2 software before its merger with ArifHabib
bank and My bank. The Summit Bank’s branch in which I did my internship is
Atlas Bank branch previously, that’s why it’s an opportunity for me to learn how
to operate Auto banker App ab2 software as well. Bank obtains past record from
this software as per requirement. This software is good and easy to handle as
compare to other banking soft wares. As summit bank was established at 26-01-
2011 that’s why Bank takes record up to 26-01-2011 from this software and
remaining from H+ software. With the help of this software I can perform following
activities:

● Preparation of withholding tax certificate.

● Preparation of Profit certificate.
● Preparation of Export certificate.
● Preparation of customer account statements
● Verification of signature.
● Customer account balance.
● Customer personal information

Departments of Summit Bank, I Worked & Learned

Reception
I started my internship from desk officer, Customer Care on front desk, learn how
to interact with the customer and clients of bank and and other visitors, resolve
their queries. Learn how to tackle various types of people tactfully &
sympathetically.

Cash Department
I was introduced with cash department of bank in early days of my internship
program. I got information about handling of cash, deposits, cheques, and
withdrawals. Got understanding how cheques are received and encashed, how
these transactions are entered in system.

32
Main Teller
For banking operations & its growth main teller plays a vital role, In SUMMIT
(concerned Branch) I come to know how to handle cash; ATM, Local/Foreign
Currency, Remittances, payment of utility Bills etc and how to facilitate
customers while performing this job.

Universal Teller
I also worked with universal teller, In SUMMIT (concerned Branch) this job is
done by MR. Amir Chohan, while working with him; I learned concepts of
Clearing, Outward Bank Clearing (OBC), Inward Bank Clearing (IBC), Demand
Draft (DD), Pay Order (PO).

Loans
I also worked in credit department of Summit bank to know about the different
policies of bank regarding loans etc. I learned that in what ways we investigate
about clients who are going to take loans. Our Regional Manager Mr. Majid Nazir
helped me a lot.

TDR
I also got information about term deposit receipts, various deal settlement, how
these Registers are maintained &what formalities are involved in this procedure.

Lockers
I also got information about lockers handling, various formalities involved like key
deposits, rents and their file maintenance in excel and their data entry in
software.
Bookkeeping
In this area, I did various duties for record keeping in the bank. I performed many
tasks such as filing of account opening forms, filing of all bills, filing the clients
data safe & sound in the bank. Record completion and maintenance of
insurance, ATM balancing, sorted unsorted, LESCO, SNG, PTCL for audit
purpose.

Account Opening
I came to know various compulsory requirements for opening of account for
individuals, sole proprietor, and private limited company. Also properly arranged
accounts opening forms according to the account numbers.

34
Chapter
5
Trade
Trade is about trade related business of Summit Bank.
1. Deal settlement with customer
2. Trading Documents
3. Export form
4. Documents of the title of the goods
5. Verification of E-forms

Invoice, packing list, GSP, form E-bill of ladings, airway bills shipping bills,
covering letters.

Return Mail
Its segment conferred as Return Mail through Bank SOP,preparation and
maintenance of return mail registers like A/c opening form, bank statement, and
other correspondence on MS-Excel.

Stop Payment
When there is some issue with customer stop payments &Verification of stop
payment files for audit purpose.

Zakat
Bank maintains Verification of Zakat declaration files for audit purpose. Learned
procedure by which account holders submit their Zakat declaration forms and
got status of Zakat exempted individuals.

Security Against loans

36
In Summit Bank various securities required by bank from those clients who
took loans from Summit bank for different tenures.

Securities include:

● Banker’s Lien
Banker’s right to withhold the property until the loan is fully repaid.

● Hypothecation
Strongest security on part of banker in which both ownership and
documents of title of goods remain with customers.

● Mortgage

Security against immoveable property, in which ownership remain with

customer but documents of title of good transfer to bank.

● Pledge
Security against moveable property, in which ownership and documents
of title of good transfer to bank.

Remittances
Various remittances from foreign countries through Western Union.
Zoha Money. Amanat Cash, Express Money. And their complete record keeping
on MS-EXCEl in order to identify business of bank for a particular tenure.

Inter Office Memorandum

● Understanding of inter office memorandum subjected….. approval for
disbursement of amount to legal heirs of deceased account…..after
 person’s demise, as per bank policy n court order, which documents
required…
● Copy of legal opinion.
● Copy of succession certificate.
● Copy of court order.
● Attested copy of CNIC of all legal heirs.
● Fatwa certificate from registered Masjid.
● Attested copy of death certificate.
● Statement of account from date of account opening.
● Understanding of complete mechanism telegraphic transfer, swift codes
involved, & other formalities.

Others
● Return mail and customer call back CBC for return mails.
● loan settlement against hypothecation n mortgage, their annual renewal,
various legal documents involved & other document of title of good.
● remittance towards Germany against TT (Telegraphic Transfer) In
Foreign Currency.
● E-form, I-form, F-form & various schedules, their complete handling,
endorsement through SBP. These forms indicate our foreign currency
remittance, our business for the period of one month.
Opening Doors To Limitless Possibilities
Summit Bank open door to limitless possibilities for our stakeholders by
providing banking solutions that deliver results through meticulous planning,
focus on specific objectives, setting priorities right, and putting in place strategies
and processes that help yield better growth with higher return.

38
Remittances Department
“It refers to the transfer of money from an individual, usually a person who has
emigrated from his/her city or country of origin, to another individual, usually a
relative who remains at home.”

Remittances are financial flows arising from the movement or transfers of money
from one place to another within or outside the city or country.
Remittances contribute to economic growth and to the livelihoods of needy
people worldwide. Moreover, remittance transfers can also promote access to
financial services for the sender and recipient, there by increasing financial and
social inclusion.
Remittance includes the following things:
Pay Orders.
Demand Drafts.
Traveler’s Cheque.
Tele-graphic Transfer through SWIFT.
Western Union Money Transfer.
Pay Orders
Pay order abbreviated as “P.O” is a negotiable instrument (such as a draft) which
instructs a payer bank to pay a certain sum to a third party within the city. It is a
payment instrument which is used by the banks to settle payment obligations on
behalf of their customers. This instrument is guaranteed by the bank for its full
value and is similar to a demand draft.
In SUMMIT, P.O is payable at any of the SUMMIT bank’s branch in Pakistan.
Payment through pay order is a confirmed payment. The reason is that when
pay order is made, the applicant who has an account with the SUMMIT bank is
debited and the amount is added to the pay order account. And from that
account, the beneficiary account is credited for the amount of pay order.
SUMMIT only issues “Payee Account Only” pay orders. Pay orders in cash are
not issued in SUMMIT.
 Validity
Pay order is valid for 6 months after the date of issue. If the customer does not
claim the payment within 6 months of the issue then the amount of the pay

order is included in the “Unclaimed Account” and the amount stays there for 10
years.

Procedure for the Issuance of Pay Order

When a customer comes for the issuance of pay order, the processing steps
includes the following:

● The customer is given the “Funds Transfer- Application Form”.

● The customer fulfils the application form which includes the following
details:

o Transaction Details.

▪ It includes Amount in Figures and Words.

▪ The desired Currency.

▪ Mode of Payment.

o Beneficiary Details (In whose favour P.O is issued).

o Applicant’s Detail (Who Requests for P.O).

● The filled form along with the cheque is given to the remittance officer
who verifies the form through the following stamps:

o Sign Verification (Where the customer has done the Signatures)

on the application form.

40
 o Transfer Posted (Means amount is transferred from the Applicants
account to the Beneficiaries Account).

o Time Stamp (Contains the Date and the Time of Receiving of

Application).

The remittance officer then makes the necessary entries in the system by
debiting the account of the applicant and crediting the account of the beneficiary.
The commission is deducted at the time of issuance of the P.O.

The commission charges are flat Rs. 80/-which are charged to the applicant’s
account. After the entries, the P.O is ready to be given to the customer.
Demand Draft
A demand draft referred to as “DD” is a banker’s own draft drawn upon another
banker as per agency arrangement (or) upon one of its own branches payable
on presentation by the drawee bank.
Telegraphic Transfer through SWIFT
It is largely the obsolete method of transferring funds through a telegraph or
telex link from one country to another. With the help of this service a customer
can transfer money to the bank account of a beneficiary in most foreign countries
of the world also called wire transfer; it has been replaced by secure cable and
wireless telecommunications networks. In SUMMIT, the transfer of funds through
this medium is implemented through SWIFT which is the standard in all banks of
the industry. The telegraphic transfer is of two types:
● Local TT.

● Foreign TT.

Local TT
In local telegraphic transfer, the funds are transferred from one city to another.
The local transfer system is not been used in SUMMIT. The method was that the
customer who wanted to avail this facility was given the funds transfer
application. The person who wanted to remit the money used to provide the
details of the receiving person. The transaction was done between the banks.

The bank remitting the money used to credit the account of the person sending
the money and the paying bank used to debit such account and made payment
to the receiving person. The payments were done on the counters. The NIC of
the persons were taken in that kind of transactions. This system has not been

used today because the SBP has started restricted the counter payments due to
the fraudulent nature of the transaction.

Foreign TT
The foreign telegraphic transfer means the transfer of funds to a foreign country.
Both inward and outward is done at SUMMIT. The foreign TT is done through
SWIFT which is acting as a quickest mode for the transfer of funds to abroad.
The TT is only done account to account in SUMMIT. The procedure for the
foreign TT followed by the remittance officer is explained as:
● The customer comes to the bank for the purpose of TT.

● The customer is given the Funds Transfer Form on which the customer
provides the details like:

o Amount of the Transaction in Words and Figures.

o The Desired Currency.

o Beneficiary Details to who the funds are to be transferred.

o Beneficiary Bank’s details in the abroad.

o Applicant’s Details.

42
 ● After filling out the information, the customer signs the form and hands it
over to the remittance officer along with the cheque.

● The remittance officer in the scrutiny process assures himself that the
requirements of the Anti- Money Laundering (AML) regulation of the SBP
in this context are fulfilled.

● The name of the person who is remitting is confirmed from the Office for
Foreign Asset Control (OFAC) list.

● The Know Your Customer (KYC) requirements are duly accounted for.

● The remittance officer makes sure that the purpose of the remittance must
be provided by the customer.

● The charges of TT are deducted from the account which is flat 16 US

dollars.

● The stamping is done on the form and the remittance officer signs the
form.

● The form also gets signed by the operations manager.

The completed form along with the cheque is sent to the SUMMIT head office
where all the SWIFT operations are taken place. The head office makes all the
dealing with the correspondent banks in abroad for the purpose of TT.

The Role Of Swift In Telegraphic Transfer

SWIFT stands for the Society for Worldwide Interbank Financial
Telecommunication, a member-owned cooperative through which the financial
world conducts its business operations with speed, certainty and confidence.
Over 8,300 banking organizations, securities institutions and corporate
customers in more than 208 countries are the members of SWIFT and every day
exchange millions of standardized financial messages.
Its role is two-fold. They provide the proprietary communications platform,
products and services that allow its customers to connect and exchange financial
information securely and reliably. They also act as the catalyst that brings the
financial community together to work collaboratively to shape market practice,
define standards and consider solutions to issues of mutual interest.
SWIFT enables its customers to automate and standardize financial
transactions, thereby lowering costs, reducing operational risk and eliminating
inefficiencies from their operations. By using SWIFT customers can also create
new business opportunities and revenue streams.
SWIFT has its headquarters in Belgium and has offices in the world's major
financial centers and developing markets.

SWIFT is solely a carrier of messages. It does not hold funds nor does it manage
accounts on behalf of customers, nor does it store financial information on an
ongoing basis. As a data carrier, SWIFT transports messages between

two financial institutions. This activity involves the secure exchange of

proprietary data while ensuring its confidentiality and integrity.

Services Provided by SWIFT

SWIFT network provides the following services to the banks:
● The exchange of real-time messages using XML standards.

● The exchange of bulk messages (e.g. non-urgent and low value

payments).

● A secure browser for accessing account information.

Joining SWIFT
In Pakistan the banks get the membership of SWIFT through State Bank of
Pakistan. The Financial documents along with the registration application are

44
submitted to State Bank and from where these are transferred to the SWIFT.
After verification SWIFT gives the membership to the Bank.
Following are the steps below to learn how to join SWIFT, connect to the SWIFT
network and become fully operational.

Procedure
Every client has its own SWIFT BIC code, in order to identify Financial
Institutions. BIC stands for Bank Identifier Code. To transfer messages securely
and efficiently, the client bank connects through SWIFTNet network by the
assigned SWIFT BIC code.SWIFT clients can configure their existing email
infrastructure to pass email messages through the highly secure and reliable
SWIFTNet network instead of the open Internet. SWIFTNet Mail is intended for
the secure transfer of sensitive business documents, such as invoices,

contracts and signatories, and is designed to replace existing telex and courier
services, as well as the transmission of security-sensitive data over the open
Internet.

SWIFT Code
The SWIFT code is 11 characters made up of:

4 characters: Bank code (only letters).

2 characters: 3166-1 alpha 2 country code (only letters).
2 characters: location code (letters and digits).
3 characters: Branch code, optional (xxx for primary office) (letters and digits).
46
 Chapter
6

(Ratio Analysis)
CURRENT RATIO:

Current Ratio = Current Assets

Current Liabilities

Year Current Assets Current Liabilities Current Ratio

30007749 29729953
2014 1.01
 34065470 34827251
2015 0.98

Current Ratio

Interpretation
In 2014 Bank had 30007749 of current assets for every Rs 29729953.

of current liabilities. In 2015 bank has Rs. 34065470 of current assets for every
Rs. 34827251 of current liabilities. As current ratio is decreasing so bank is in a
bad position n suffering fromloss.

DEBT- EQUITY RATIO

Debt-Equity Ratio =Total Debt

Total Equity

Year Long-Term Debt Total Equity Debt-Equity Ratio

30385841 35490705
2014 12.85%

2015 35333510 39879376 12.21%

Debt-Equity Ratio

Interpretation

48
In 2014, the firm has Rs. 0.93 in debt for every Re. 1 in equity. In 2015, the firm
has Rs. 0.61 in debt for every Re.1 in equity.

Debt is increase as compare to previous year is not good for the company.

Long-Term Debt Ratio

Long-Term Debt Ratio = _____Long-Term Debt_______

Long-Term Debt + Total Equity

Year Long-Term Debt Total Equity +Long term Long-Term Debt

Debt Ratio

35490705 35490705+35490705
2014 11.39%

39479376 39479376+39879376
2015 10.88%

Long-Term Debt Ratio

Interpretation
A firm’s accounts payable may be more of a reflection of trade practice than debt
management policy. It is sometimes also called as the firm’s total

capitalization and the financial manager will frequently focus on this quantity
rather than on total assets.

Times Interest Earned Ratio

 Times Interest Earned Ratio = ____EBIT____
Interest Charges

Year EBIT Interest Interest Coverage Ratio

-0.748295
2014 2156512 2881902

-0.46231
2015 2156512 (0.748295)

Times Interest Earned Ratio

Interpretation
In 2014, the interest bill of firm has covered -0.748295 times over. In 2015, the
interest bill of firm has covered -0.46231 times over.
TOTAL ASSET TURNOVER

Total Asset Turnover = ___Sales___

Total Assets

Year Sales Total Assets Total Asset Turnover

0.0949042
2014 3368218 35490705

50
 0.07313
2015 2887135 39479376

TOTAL ASSET TURNOVER

Interpretation
In 2014, for every rupee in assets, the firm generated Rs. 0.949042 in sales. In
2015, for every rupee in assets, the firm generated Rs. 0.07313 in sales.

NET PROFIT MARGIN

Profit Margin = Net Income

Sales

Year Net Income Sales Profit Margin

-48.69%
2014 1038204 1063737

-36.14%
2015 1043411 2887135

NET PROFIT MARGIN

 Interpretation:
In 2014, for Net loss margin is -48.69 % to sales, the firm generated -36.14%%
in profit. In 2015, Net loss ratio decrease is suitable for Bank.
RETURN ON INVESTMENT

Return on Investment (ROI) = Net Income After tax

Total Assets

Year Net Income/loss Equity+L.Tdebts Return On

After Tax Investment

5482956 -4.62%
2014 (24155503)

35490705 -2.64%
2015 (1392355)

RETURN ON INVESTMENT

Interpretation:

In 2014, the firm has -4.62% loss per rupee of assets. In 2015, the firm has -
2.64% loss per rupee of assets. Loss is decreasing and firm is becoming
stable.

52
Chapter

7
 (SWOT ANALYSIS)
Strengths:
✔ Summit bank has achieved marked success in its strategy of expanding and
diversifying its customer base and launching new and innovative financial
products.
✔ Bank has undoubtedly become one of the most progressive and well-
networked banks in Pakistan.
✔ Bank has also invested heavily in information technology resources, which has
now allowed the bank to develop one of the most comprehensive and
advanced systems available. With the help of this system, Bank has now
achieved an "online" status via real time facilities and features available
through nationwide network. With a team of highly qualified professional,
Summit Bank is able to use its real time system resources to provide customers
with a comprehensive account of their transactions on a daily basis. With the
new improved system, Summit Bank is able to map all transactions and is able
to provide all necessary details to cash management clients.
✔ With One-link network of ATMs, it is easy for the customers to get their cash
from any ATM machine of the partner banks with minor charges to be paid for
transactions. Thus if ATM machine at Summit Bank is not working, then it’s
possible to draw cash from any other ATM of the partner bank. Now ATM card
is accepted on more than 100 ATMs in all major cities across Pakistan.
✔ Bank has been successful in employee retention, customer satisfaction and
high profit generation. Happy employees help create happy customers. Good
reputation of the bank is because of good behavior and response of the
employees.

54
✔ Good and friendly attitude of the workers is the result of excellent management
of bank. The entire environment of the bank gives the impression that
customers are very important to the bank. They are offered seats even when
they come for a small purpose.
✔ Summit Bank provides excellent trade related facilities, for an appropriate
period, in line with working capital cycle, to assist in financing imports/exports.
It works closely with customer to determine their needs based on the type of
goods involved, and their terms of trade. Additionally, its range of options will
ensure that customer will enjoy the most appropriate financing instrument to
meet his business needs. Bank works with customers to understand the
working capital needs of their company to facilitate the financing of their entire
trade cycle. It also provides the structured solutions for exporters of
commodities or capital goods to emerging markets. Exporters can raise
offshore finances on competitive terms against the underlying terms in their
export contracts.
✔ Customers are allowed to give suggestions regarding banking services. If there
is any complaint by the customer the bank authorities investigate the reasons
for complaint. Complaint monitoring system is an excellent one Summit Bank
that shows that bank values more to its customers.
Strengths Related To Summit Internet Banking
✔ Internet Banking allows us to access our Summit Bank current, savings and
other accounts securely over the Internet.
A. Here's a list of what we can do using Summit Bank Internet Banking:
✔ View Account Balances
✔ View Statements
✔ Download Statements

✔ View Status of Processed and Pending Cheque

✔ Cheque Blocking
✔ Transfer Funds between your Accounts
✔ Submit Request for Pay Order and Cheque Book
✔ Register Complaints and View their Status
✔ Receive e-Alerts on Credit/Debit Transactions on Accounts
✔ Receive e-Alerts regarding requests and complaints

If you forget either your user ID or password before successfully logging in for the
first time, you will have to call our Call Center at 0800-24365 for user ID information
and/or password change, or if you are outside Pakistan, call 00-92-213-2463516.

A. Access to your personal and account details are controlled via the login process.
It is therefore essential that you do not divulge or write down your user ID or
password. Take great care when logging in. You must change your password in
case of suspicion or you can contact our Call Center immediately at 0800-24365.

A. Summit Bank Customer Support will never send emails that ask for confidential
information. If you receive an email requesting your Internet Banking security
details, you should not respond. Please forward it to us at
adc@summitbank.com.pk. If you are concerned that you may have divulged your
security details, please contact our Call Center at 0800-24365.

A. We at Summit Bank take the security of your personal and transaction details
very seriously. When calling the CallCenter, you will be verified by your response
to random questions about your personal information by the CallCenter officer.

Weaknesses:
✔ Summit bank has the centralized system of processing trade related
transactions. Any customer who wants to export or import any product needs
spontaneous transactions to take place. But due to centralized system the

56
 approval of all the transactions has to taken from head office. Although this
system is good on part of bank but not favorable on part of customer, as the
processing time for transactions lengthens which create bad impact on
customers.
✔ Credit setup at Summit bank is such that the credit customer is handled at
different counters. Such segmentation of credit approval processing is useful
for handling credit related tasks but customer who comes to the bank for getting
credit facility doesn’t understand it. He wants that he must be handled at one
place. So the lengthy process of credit approval creates a feeling of
dissatisfaction among customers.
✔ Organizational structure of Summit bank is Functional based. Functional
structure groups the members of organization based on their work activity.
Every employee is responsible for his own operations and no co-ordination
exists among departments.
✔ The advertising media used by Summit Bank for publicity include mostly
newspapers and journals. Although this media is good one in attracting
customers to bank with FAYSAL Bank, but the most powerful media is of
television through which people within Pakistan as well as outside Pakistan can
have instant information about new products and developments of Summit
Bank with just a click of TV button.
✔ As Summit Bank is a merger of Atlas ArifHabib n My Bank so this
amalgamation cause management & hierarchy issues Conflicts has been
aroused due to this reason.
✔ All three banks use different banking software its difficult to keep banks on a
single track.
✔ Employees job rotation cause psychological effect on employees, many
employees are fired as well.
Opportunities:
✔ Summit Bank is now looking in to new ways of providing banking service to its
customers. New concept of mobile banking has been introduced by the bank,
 which will prove to be a remarkable success in the field of consumer banking
group.
✔ Competition in the field of consumer banking has been intensified as large
consumer banks continued to play a significant role in terms of products and
services. Summit Bank is preparing for this competition by establishing a
dynamic platform that will enabled it to launch a series of new products in years
to come. This dynamic platform will be supported with a robust operational
infrastructure and delivery mechanism.
✔ For banking industry acquisitions are the best way and Summit Bank has
adopted this strategy for the acquisitions of funds and for strengthening and
expanding itself through affiliation with leading international brands and
acquiring the operations of leading banks. It’s the fastest growing bank in
✔ Pakistan and it will prove to be the largest bank by continuing its strategy of
merging and acquisitions. Acquisition of My Bank operations in Pakistan are
the recent acquisitions by Summit Bank.
✔ Summit Bank is an active player in the loans business. Its strength in loaning
stems from its ability to forge strong relationships not only with borrowers but
also with bank investors. Bank can capture more markets by introducing new
products for business community, as it is the only group, which can contribute
more towards increasing the assets of the bank. The products, which the bank
currently offering includes, Daily product, summit advantage account,

Summit wedding planner, Hamara family saving Account, And many others .
Bank can touch new customer segments through these products.
✔ Bank enjoys large network of Bank branches across Pakistan even in emote
areas of country.
✔ Due to its large chain Bank has gained instant popularity in a financial region
of Pakistsn.
✔ Bank provide job and internship opportunities as well.

58
 Threats:
✔ Although merging and acquisitions are a good way of expanding the operations
but at the same time competition and challenges also increase. Bank is
required to maintain competitive rates and facilities for its depositors and its
borrowers. Bank has to maintain a balance between its liabilities and assets
structure.
✔ Currently Bank is suffering from loss and if this situation continues even for a
little period bank’s survival will be questionable.
✔ Bank’s management is involved in centralization of branches, for the sake bank
is not in a position to hit new horizons and to mobilize deposits.
✔ Previously Bank is involved in aggressive loans payment even deposit/loan
ratio is 80:90 instead of 40:60 as recommended by SBP.
✔ Bank is suffering from constant threat deposit break down from other banks as
bank is involved in its replenishment.
✔ The sad part is that our industrial base isn't growing and industrial demand for
credit is, therefore, low. Banks is aggressively lending in the consumer sector.
Industrial sector is the most powerful sector which can contributes towards
assets of bank. But in Pakistan due to instability in economic condition this
sector is not flourishing too much. As a result the rate of industrial loaning is
also very low. If bank continues in advancing consumer loans then it will
become a threat for the assets of bank and resources of the bank will continue
to be wasted.

Recommendations:

✔ As bank is a result of merger of three banks so bank should minimizes the

time of replenishment of bank & should centralize all systems, procedures
and operations on priority bases and try to hit new horizons in financial region
of the world.
✔ Banks should emphasis on Research n development (RND) and
Management Information System (MIS), and introduce structural reforms in
the organization.
.
✔ As currently bank is suffering from loss, so bank should mobilize its deposits
and make a balance in its deposits and loan ratio.

✔ Bank should held meetings at branch levels and in this meeting every
employee is required to give suggestions for deposit mobilization, and not
only the suggestions but they must contribute their part for betterment of the
bank.

✔ Bank must introduce customer care reforms.

✔ Bank should enhance industrial credits instead of consumer loans.
✔ Bank should reformulate rates structure.
✔ Bank should ensure right sizing n avoid extra expenditures.
✔ Bank should ensure steady cope with leading commercial n investment
banks.
✔ Bank should improve its advertising media, bank should start advertisement
through TV. N radio and also with business papers.
✔ Bank should heir well qualified, specialist and professionals on job.
✔ Bank should trigger its trade related activities as it will bounce its profits and
enhance its popularity at international platform.
✔ Every branch should involve in opening of LC’s and expending the range of
customers who are running their business in foreign countries.
✔ Because of merger employees are involved in psychological issues, for the
sake bank should emphasis on Human Resource Management (HRM).

60
✔ Banks should emphasis on security system and ensure 0% frauds,
irregularities and lack of commitment both on account of customers and also
clients.
✔ Bank should provide proper and on time benefits, incentives, promotions and
increments on merit after appraisals.

Suggestions:
Bank must let potential customers know that all attractions for banking exist. This
is done by advertising on television and obtaining press coverage, in conjunction
with direct mail, window displays, leaflet in branches and in appropriate other
locations (such as hotels, shops, etc.) and including leaflets in statement of
accounts sent to existing customers in the hope that they will tell potential
customers about the services provided by our bank.
Financially unsophisticated people might feel bank accounts, cheque books,
credit cards, etc. are difficult to understand and to keep control thereof. Some
personal sector customers prefer not to come to branch. They increasingly want
to deal with the bank in other ways, such as home banking or use of

Automated Teller Machines (ATMs), which need to be at the branch or some

important shopping plazas.
It is widely known that there is a substantial Black Economy in Pakistan, Where
people earn income that is undisclosed to the revenues authorities. Payments
for goods and services in the black economy are necessarily in cash, because
transactions by cheque are more likely to be exposed to the revenue authorities.
Some people will therefore avoid bank accounts to preserve secrecy of earnings.
One way to retain the personal sector customers is to offer a wide range of
services such as tax advice, free life insurance equivalent to amount deposited,
shares portfolio management, fund management facility, etc., complimentary to
the core services. Banks must have a slightly different mix of services. Banks
must have a slightly different mix of services and mean of providing these such
that customers can choose the mix that suits them best.
Arguably, there has been a little encouragement from banks to persuade people
to open a bank account. Opening hours are restricted, and there is a commonly
held belief that banks operate for their convenience and not for the convenience
of the customers.
Logic leads to promotional campaign through employers who are customers of
the banks and their employees are paid in cash. Such business accounts should
be encouraged to open the accounts of their employees with the banks. It might
be worth offering free banking for a specific period to new accounts or simply
publicizing the services available by means of posters at the employer’s
premises.
It might be possible to attract another type of personal customers through
business accounts, namely directors and denier employees, etc. Again an
incentive package could be put together.
The banks may choose to make its existing products distinctive or to introduce
new products. It is often easier to benefit from adverse changes made by other
banks than to attract customers by innovations.

A short term promotional technique is to offer price incentives, for example, low
interest rates on advances or limited issue high profit bearing term deposits.
Longer term, a Loss Leader may be offered. For example, profit bearing current
accounts are not very lucrative but any bank cannot afford not to offer these. The
reduced profits can be augmented by profits made on other products.
It is also possible to attract/retain personal customers by investment in new
technology like ATMs and Telephone Banking facilities, which made the services
quicker, easier, cheaper and more flexible.

62
Conclusion:
SUMMIT bank will remain an aggressive and innovative financial institution and
continue to adhere to the tradition of understanding its customer’s needs and
looking for new ways to serve them. Further integration and productivity gains
will result in stronger performance in terms of revenue as well as service quality
in the coming years. The strong leadership of Board and management and the
relentless effort of the staff at SUMMIT bank will be able to offer more superior
products and services to customers and to contribute more to economic and
social development of Pakistan while developing a bigger future for it.

GLOSSARY
Bearer Cheque:
If the drawer orders the bank to pay a stated sum of money to the bearer, it is
called a bearer cheque. Any person who lawfully possesses a bearer cheque is
entitled to receive payment of that cheque.

Clearing:
The word clearing has been derived from the word “clear” and is defined as:
A system by which banks exchange cheques and other negotiable instruments
drawn on each other within a specific area and thereby secure payment for their
clients through the Clearing House at specified time in an efficient way.
Crossed Cheque:
The amount of this cheque is not paid at counter. The amount of this cheque is
transferred to the person’s account whose name is specified on the cheque. Two
parallel transverse lines are drawn across the face of the cheque.
Inward Clearing:
Those Cheques and other negotiable instruments which are drawn on BAL Urdu
Bazar Branch Lahore, sent by other banks, constitutes the inward clearing of JS
bank limited. After having all the stamps and dates of cheques confirmed, the
concerned drawer’s accounts are debited in BAL Urdu Bazar Branch Lahore.
Inter City Clearing:
The cheques that are presented in inter city clearing are of another city and
received by air. In this type of clearing the bank confirm at that time that the
cheques are clear or not and give to the rider.
Issuing Bank:
The bank that sends or affects the remittance, through demand drafts,
telegraphic transfers, or Mail Transfers.

OBC:
When an instrument is drawn on a bank, which is located outside the city, its
proceeds can be collected through a mechanism called Outward Bills for
Collection (OBC).
Outward Clearing:
When cheques and other negotiable instruments drawn upon other banks like
City Bank, MCB, ABN-AMRO or Askari Bank of the same city (Lahore) are
presented in BAL Urdu Bazar Branch to deposit them in the respective payee’s
accounts, these instruments are lodged in outward clearing of BAL Urdu Bazar
Branch.
Order Cheque:
The amount of this cheque is payable to the person whose name is written on
the face of the cheque. The amount is paid at counter after identification of that
person.
Paying Bank:

64
Paying Bank also knows as the drawee branch. The branch on which the
instrument is drawn. It has to make the payment (usually located in a different
city country).
Pay order:
Pay order is a negotiable instrument made by the bank, on account of a
customer, to pay on order the specified amount to the directed person (payee)

Remittances:
Remittance is transfer of funds from one place to another or from one person to
another.
Remitter:
One who initiates, or requests for a remittance. The remitter comes to the issuing
or originating branch, asks for a remittance to be made, and deposits the money
to be remitted. The bank charges him a commission for this service. He may or
may not be the branch’s customer.
Remittee:
A Remittee is also called the beneficiary, or the payee. The person in whose
name the remittance is made. A remittee is also the one who receive the
payment.
Same Day Clearing:
The cheques that are presented in same day clearing are the local cheques and
these cheques are clear in same day. Basically it is the benefit that are provided
to customer.

SWOT:
SWOT analysis is a process to identify where we are strong and where we are
vulnerable, where we should defend and where we should attack. It tells us our
strengths, our weaknesses, the opportunities which prevail in the market and the
threats which we may face from our competitors and other from other potential
factors.

BIBLIOGRAPHY

● Internet www.summitbank.com.pk
● Annual Reports of summit for the year 2013-2014
● Brochures and journals of summit
● Managerial Staff of summit
● Various Manuals
● Dignified staff of branch
● Relationship managers

66