Professional Documents
Culture Documents
Summit Bank (Internship Report) .Odt
Summit Bank (Internship Report) .Odt
Limited
Submitted By: Hafiz Shahid
Farooq
Session: 2012-16
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 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.
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TABLE OF CONTENTS
ORGANIZATIONAL STRUCTURE..................................................................................................................................................... 10
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 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.
4
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:
Management Team:
Mr.Zahir Esmail
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Chief Operating Officer,
SME & Commercial Banking Divisions
Mr Gulraiz Khan
Group Head Co-ordination&Control Department
Mr Asif Qasim
Head of Treasury Division
Mr Asadullah Khawaja
Head of Audit
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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.
(BRANCH PROFILE)
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
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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.
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
12
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:
Types of Banks
Central bank or state bank.
Commercial bank.
Exchange bank.
Industrial bank.
Agriculture bank.
Investment bank.
Saving bank.
Central Bank
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.
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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.
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History & Introduction of Summit Bank:
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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 8 th, 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.
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)
Charitable institutions
Local bodies
Autonomous corporations
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Limited companies
Mahana Amdan
Rs.100,000 to Rs.20 million.
Rate of Profit:
For individual, Corporate & Financial Institutions.
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Project & Structured Finance
Leveraged Buyouts
Privatization
Mergers
Corporate Restructuring
Syndicated Loans
Project Finance
Private Equity
Equity De-Listing
Acquisitions
Electronic Banking
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
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Utility Bill Payments*
Prepaid Ufone Balance Recharge
Postpaid Ufone Bill Payment
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.
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.
*=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
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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.
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.
o Date.
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 Country.
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.
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Chapter
4
(Internship Experience)
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:
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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:
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.
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
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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.
Chapter
5
34
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.
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
Pledge
Security against moveable property, in which ownership and documents
of title of good transfer to bank.
Remittances
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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.
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.
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.”
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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.
The customer fulfils the application form which includes the following
details:
o Transaction Details.
Mode of Payment.
The filled form along with the cheque is given to the remittance officer
who verifies the form through the following stamps:
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
40
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 Applicant’s Details.
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 stamping is done on the form and the remittance officer signs the
form.
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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.
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
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
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.
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SWIFT Code
The SWIFT code is 11 characters made up of:
46
(Ratio Analysis)
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.
30385841 35490705
2014 12.85%
Debt-Equity Ratio
Interpretation
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.
35490705 35490705+35490705
2014 11.39%
39479376 39479376+39879376
2015 10.88%
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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.
-0.748295
2014 2156512 2881902
-0.46231
2015 2156512 (0.748295)
0.0949042
2014 3368218 35490705
0.07313
2015 2887135 39479376
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.
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Sales
-48.69%
2014 1038204 1063737
-36.14%
2015 1043411 2887135
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
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
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
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system the 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.
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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:
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.
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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
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.
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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:
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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
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