Internship Report 1

INTERNSHIP REPORT
AT

SONERI BANK
Submitted By:

OVAIS MOIN

June 12, 2010

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INDEX

HISTORY 3

ACKNOWLEDGMENT 4

INTRODUCTION OF DEPARTMENTS 5

ACCOUNTS DEPARTMENTS 6

CLEARING DEPARTMENT 12

REMITTANCE & BILLS DEPARTMENT 14

CASH DEPARTMENT 16

OTHER SERVICES 19

IMPLICATION OF INTERNSHIP ON MY CARIER 23

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History

Soneri Bank Limited was formally incorporated on September 28, 1991. The first Branch
commenced operations in Lahore on April 16, 1992, followed by the launch of Karachi's first
Branch on May 09, 1992. The bank currently operates 154 branches, spread all over Pakistan
including the Northern Areas of the country. The bank’s expansion policy is based on the
principle of maintaining a balance between the urban and rural areas.

We take great pride in offering services even in the remote areas of Pakistan. Our fully air-
conditioned and computerized branches provide a pleasant, convenient and hassle free
banking experience every time.

The essence of our business philosophy is to cater to the banking requirements of small &
medium sized entrepreneurs, effectively providing them qualitative & competitive services
with emphasis on encouraging exports. Nearly forty percent of our credit portfolio is related to
export financing and credit decisions are taken within 48 hours. That’s why we say!

We have more time for you !

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Acknowledgement

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

completion of an enormous task as always been more enormous than the task
itself. But with the firm determination and noble passion of hard working,
nothing remains difficult.

I want to thank all those personalities, who have been a source of guidance
during the Internship. I acknowledge them with thanks for their help. My deep
gratitude also goes to Soneri Bank Limited management.

Mr. Naseer Ahmed (Manager)

Mr. Noor Muhammad (Manager Operation)
Saim Ahmed (OG-III)
Muhammad Naveed (Junior Officer)
Syed Naushad Haider (Head Cashier)
Muhammad Azhar (Junior Officer)

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

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Introduction Of Departments
In Which I Worked
As An Internee
At
Soneri Bank Limited

 ACCOUNTS

 CLEARING

 REMITTANCE &BILLS

 CASH

 OTHER SERVICES

Now Each Of The Above Department Will Be Discussed Briefly:

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Accounts Department

Type A Accounts:

Type B Accounts:

Types of Account

1) Basic Banking Account

2) Current Account
3) Fixed Accounts
4) Saving Accounts
5) Other Accounts

1) Basic Banking Account:

Soneri Bank Limited introduces Basic Banking Account Scheme with effect from July 01,
2006. This is account is for salaried person account. Normally different companies, Schools, Colleges
opened their employees account in this account Salient feature of the Scheme are:
 
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 Basic Banking Accounts may be opened in the Pak Rupees by individuals including
minors under guardianship.
 The accounts may be opened by initial deposit of any amount.
 No minimum balance requirement is applicable.
 Basic Banking Account is non-profit bearing account.
 4 withdrawals from a Basic Banking Account through cheques in one calendar month
are free of service charges. Additional withdrawals through cheques in a calendar of
month shall be subject to service charge @ Rs. 25/- per additional cheque.
 Account have -NIL- balances for six consecutive months shall be closed without prior
intimation.
 Statement of Accounts is provided once a calendar year at the year ends.
 Govt. Withholding Tax applies on all cash withdrawals.
 Usage of Electronic Banking through ATM or Debit Card.
 Online Cash Deposit, Withdrawal and Funds Transfer through cheques
from any of our branch across Pakistan .
Free 24/7 Internet Banking to view Statement of Account.

Note : Not subject to Zakat .

2) Current Account:

Current is a non profit account, flexible account with a great convenience for
individuals (in single or joint names), minors (to be operated by the guardian), charitable
institutions, autonomous corporations, limited companies, firms, associations, educational
institutions, etc. This is a type of account that is for business purpose for frequent transactions .

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

 No profit is allowed on this type which is why they are also called ‘Cost free deposits’.
 It is opened with a min. initial deposit of Rs. 10000 at Soneri Bank.
 In case the deposit is lower than 10000, Rs. 50 is automatically deducted from the
account monthly.
 This is a very profitable account for banks.
 Chequing Account facility with no limit on a number of transactions.
 Free Cash Deposit and Withdrawal facilities through your bank branch.
 Free Clearing facility to deposit cheques of other banks within the city.
 Import, Export and other business transactions.
 Statement of Account on six monthly basis.
 Facility of Running Finance can be requested for specific purpose against collaterals and
nominal markup rates being charged on quarterly basis.
 Govt. Withholding Tax applies on all cash withdrawals.
 Usage of Electronic Banking through ATM or Debit Card.
 Online Cash Deposit, Withdrawal and Funds Transfer through cheques
from any of our branch across Pakistan.
Free 24/7 Internet Banking to view Statement of Account.

Note : Not subject to Zakat.

3) Saving Account:
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This is a type of account in which saving is deposited for the sake of profit. Soneri savings
account provides an opportunity to small and medium income group people, with an
attractive return.

At Soneri Bank following are applicable:

I) PLS Saving Account

 It is opened with a min. initial deposit of Rs. 5000.

 5% profit p.a. is payable semi-annually that is fixed .
 Frequent transactions are restricted.
 Rs. 50 charged monthly in case deposit lowers than Rs. 5000 any moment.
 Regular Chequing Account.
 Chequing Account facility with no limit on a number of transactions
 Statement of Account on six monthly basis
 Free 24/7 Internet Banking to view Statement of Account
 Provisional rates are announced on a six monthly basis however profit/loss
earned/incurred on PLS Savings Bank Accounts are determined by the Bank at its
sole discretion on the basis of its net working result at the end of each half-year/
year
 Calculation of products on PLS Saving Bank Accounts is computed for each calendar
month on the lowest credit balance in an account.
 Profit on Soneri Savings Accounts is credited on a monthly basis on the provisional
rate of Profit
 Standing Orders facilities.

NOTE : Zakat is deductible from Account however Zakat exemption forms are accepted.

Deposit Category Rate of Return

PLS Saving Account 5.00% p.a

II) PLS Soneri Saving Account:

PLS Soneri Savings Account is a flexible and fast growing cumulative profit
account with a great convenience for individuals (in single or joint names), minors (to be
operated by the guardian), charitable institutions, provident fund and other funds of
benevolent nature local bodies, autonomous corporations, limited companies, firms
associations, educational institutions etc. The rate of Profit in this savings scheme increases as
your balance increases without demanding and negotiating with us.

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PLS Soneri Savings Bank Account entitles Account Holder to avail amazing facilities such
as:

 Minimum balance requirement 5,000/-.

 Operational facility like Current Accounts without any restriction on amount and
number of Cheques..
 Profit paid on monthly basis on daily products.
 Chequing Account facility with no limit on a number of transactions
 Provisional rates are announced on a six monthly basis however profit/loss
earned/incurred on Soneri Savings Accounts are determined by the Bank at its sole
discretion on the basis of its net working result at the end of each half-year/ year.
 Calculation of products on Soneri Savings Accounts is computed on daily product
basis.
 Profit on Soneri Savings Accounts is credited on a monthly basis on the provisional
rate of Profit.

NOTE : Zakat is deductible from Account however Zakat exemption forms are accepted.

Balance Rate of Return p.a

Up to Rs. 100,000 5.00 %

Over Rs. 100,000 but upto Rs.1.0 Million 7.00 %
Over Rs. 1.0 Million but upto Rs. 5.0 Million 8.00 %
Over Rs. 5.0 Million but upto Rs. 10.0 Million 9.00 %
Over Rs. 10.0 Million 10.00%

4) Fixed Account:

 It is a type of account in which an amount is deposited for a fixed period of time that
earns profit as stipulated by the bank’s conditions.
 Once the money is deposited certificates are issued
 Each certificate bears a min. initial deposit of Rs. 10000 and Rs. 25000 in case of
‘Premium deposit certificates’.

At Soneri Bank, there are following types of deposits:

Notice Deposits:

In this type amount is deposited for a week or month as per terms agreed upon.
Deposit Category Rate of Return

7 Days 6.00% p.a

30 Days 8.00% p.a

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Term Deposits:
In this type, annual profit rate is allowed at the end of the month, quarter, year, two
years or three years as per terms agreed by the customer, the longer the period the higher the
profit rate. Term deposit is offered by Soneri Bank to Individuals (in single or joint names),
Minors (to be operated by the guardian), Charitable Institutions, Provident Fund and other
funds of benevolent nature local bodies, Autonomous Corporations, Limited Companies,
Firms, Associations, Educational Institutions etc who have the intention of retaining their
savings for a fixed period thereby earning a higher rate of profit. The Term Deposit allows you
to save a fixed amount in Pak Rupee for a set period ranging from 1 month to 60 months at a
provisional and attractive profit rate. The depositor has the option to reinvest the deposit
automatically with or without profit.

 Provisional rates are announced on a six monthly basis however profit/loss

earned/incurred on Term Deposits are determined by the Bank at its sole discretion on
the basis of its net working result at the end of each half-year/ year.
 Calculation of products on Term Deposit is computed on a daily product basis.

NOTE : Zakat is deductible from Account however Zakat exemption forms are accepted.

Term Rate of Return p.a

1 month 8.00 %
3 month 8.50 %
6 month 9.00 %
1 year 10.50 %
2 years 11.50 %
3 years 12.50 %

Soneri Diamond Deposit Certificates:

Soneri Diamond Deposit Certificates provide investment opportunities to small and
medium income group investors, Charitable / Benevolent Funds, Trusts, Societies,
Associations and Clubs with an attractive return.

 Annualized rate of expected return 10%, 11% and 12% on 1year, 2years and 3years
deposits respectively are applicable
 Profit is payable at monthly intervals
 In case of premature encashment, profit is payable as per rules stipulated by the bank
 Finance Facility up to 90% of deposit amount available
 The certificates are issued in multiples of Rs. 10,000/-

NOTE : Zakat is deductible from Account however Zakat exemption forms are accepted.

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Term - Diamond Deposit Certificates %age

  1 Year 10.00% p.a.

  2 Years 11.00% p.a.
  3 Years 12.00% p.a.
 

Soneri Premium Deposit Certificates:

 Annualized rate of expected return 12% p.a. is allowed after 12 months on maturity
 Requires a min. investment of Rs.25000
 In case of premature encashment, profit is payable as per rules stipulated by the bank
 It can be accepted as security against finance.
 Provisional Profit Rates are announced on a six monthly basis however profit/loss
earned/ incurred on Soneri Premium Deposit are determined by the Bank at its sole
discretion on the basis of its net working result at the end of each half year/year.
 Calculation of profit on Soneri Premium Deposit is computed on a daily product basis.
 Zakat on deposit is recoverable however Zakat exemption Forms are accepted.
 Govt. Withholding Tax applies on all cash withdrawals over Rs.25, 000- and profit
credited into account.

5) Others

Sahara Account:
It has recently been introduced. Being a saving account it is meant for Senior Citizens 60
years and above living on pensions and savings individuals (in single or joint names).
Minors may also open under the guardianship of Senior Citizens .
 No restrictions on min. or max. balance
 Expected profit rate @ 11.25% p.a. to be calculated on the min. balance during a month
 Certain service charges are waived like annual Soneri VISA Classic Debit Card fee, On-
Line Banking Service, SMS Alert Service and Internet Banking Service

NOTE : Zakat is deductible from Account however Zakat exemption forms are accepted.

Soneri Sahulat Account:

 This is a new Current Account Scheme for those customers who maintain a min. of
Rs. 50000.
 Certain service charges are waived like annual Soneri VISA Classic Debit CARD fee,
charges on issuance of Pay Order to the debit of the account, On-line Banking
Service, SMS Alert Service, Fund Transfers within Soneri Bank Branches through
internet banking service and payment of Utility Bills through our Internet Banking
Service.

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Clearing Department

Receipts & payments through cheques on behalf of customers. This is second

most important part of general banking. Clearing denotes all activities from the time a
commitment is made for a transaction until it is settled. Clearing is necessary because
the speed of trades is much faster than the cycle time for completing the underlying
transaction.

Types of Clearing

i) Inward Clearing

ii) Outward Clearing

i) Inward Clearing:
we pay through cheques on behalf of the customer. In case of insufficient balance,
the cheque is returned and Rs. 200 each is charged (Incase funds insufficient) .

Inward clearing can be further divided into three categories:

Normal Clearing (Intracity Clearing) : This is clearing within city.

Same day clearing: This is clearing within city on the same day but the cheque must bear
amount Rs. 500,000 or more.

Inter-city clearing: This is clearing outside city and the amount of charges
are Rs.75 and 16% of FED charged to the 0.2% of Commission charged on the total
Amount.

ii) Outward Clearing:

we receive through cheques on behalf of the customer. In Outward Clearing cheque
comes from different bank to Soneri bank but from the same city .

NOTE: (Clearing is preceded by NIFT (National Institutional Facilitation Technology).

NIFT acts as middleman between and among banks. Its collects cheques from different
banks, sorts them out and sends them to the bank and branch mentioned in the cheques )

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REALIZATION AND UN-REALIZATION

There are three steps in realization of cheque in clearing.

 Shadow
 Realized
 Unrealized

SHADOW

It just a record till the cheque is not clear.

REALIZED

Bank realized entry when it received a notice of clearing from other bank.

UNREALIZED

In case if cheque is not clear, then we unrealized the cheque and removed
from the shadow

Remittances & Bills Department

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Remittance
Remittance is one of the most frequently used banking services is the transfer of funds through
the banking channels, being local or outstation. Transfer of funds entails high level of
efficiency and security on part of the bank. The remittances are of two type’s i.e.
 
1) Local Remittances
2) Foreign Remittances

1) Local Remittances:

SBL offers following modes for Local Remittances:

Pay Order
           Demand Draft
Banker’s cheque

Pay Order:
Payment Order is a negotiable instrument to transfer money to other banks
within the station and is payable on demand. It is non-transferable instrument valid for three
months, making it an order by one party to make payment in favor of another party. It is also
known as Banker’s Cheque.

The customer fills an application form for Pay Order in favor of a party and submits the
amount in the cash department. It is competitively less risky. In case of cheques, the bearer
might not get the desired amount for non-having sufficient funds available to him but the Pay
Order is a secure way of having the desired amount.

Demand Draft:
Demand Draft is basically a bill of exchange, which orders to pay money on
demand to a certain person specified on the instrument, or to the order, drawn by one bank to
the branch of the same bank outside the station or on its corresponding banks. Legally, the
Negotiable Instrument Act governs the instrument. The following parties are involved:

o       Purchaser: The customer, one whose request the DD is issued

o       Drawing / Applicant Bank: The bank, which issues the DD

o       Drawer Bank: The bank on which the issued DD is drawn

o       Payee: The person entitled to receive the payment

The DD is valid for three (3) months i.e. 90 days of it being drawn.

Banker’s cheque :
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This instrument is used for payments against bank’s purchases and expenses.

2) Foreign Remittance:
SBL offers following mode for Foreign Remittance:

Foreign Demand Draft :

This instrument is used to transfer funds outside the country. Foreign Demand
Draft is basically a bill of exchange, which orders to pay money on demand to a certain
person specified on the instrument, or to the order, drawn by one bank to foreign
correspondent bank is to be sent.

Bills

Bills may be categorized into following:

BY ORIGIN:

Inland Bills

Foreign Bills

i) Inland Bill ( Direct Bill) : A negotiable instrument that is drawn and made payable
within the same country.
ii) Foreign Bill: A negotiable instrument that is drawn in a country and is made
payable outside that country

BY FUNCTION:

Actual or trade bill

Accommodations bill

i) Actual or Trade Bill: These bills are drawn in course of genuine or trade transaction.
These bills are written for value received or for some consideration.
ii) Accommodations Bill: These bills are drawn for providing financial assistance to
someone. These bills aren’t written for any actual trade dealing.

Cash Department
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The following books are maintained in the cash department :

Receiving cashier books

Token Book
Paying cashier Book
Scroll Books
Cash Balance Book.

When cash is received in counter, it is entered in the Scroll book and cash receiving
cashier book. At the close of the day these are balanced with each other. When cheque or any
negotiable instrument is presented at counter for payment, it’s entered in the token book and
token is issued to the customer.
The token and cashier make entry in the payment book and after that payment is made to the
payee. At the closing of the day, the token book and paying cashier book is balanced.

The consolidated figure of receipt and payments of cash is entered in the balance book and
drawn closing balance of cash.

Opening Balance + Receipt – Payments = Closing Balance

This is very important department because cash is the most liquid asset and mostly
frauds are made in this department, therefore , extra care sis taken in this department and no
body is allowed to entered or leave the area freely. Mostly, cash area is grilled and its door is
under the supervision of the head of that department. Officer checks the books maintained in
this department .

SUNDRY DEBTOR

Sundry debtor is also known as suspense account. Bank maintains this account to meet the
cash in emergency. Like if employee needs salary in advance due to some problem. Bank will
advance him cash. But bank will deduct this amount at the time of paying salary to him.

Some important point for SD:

At the month debit side must be equal to credit side.

At the start of next month debit side and credit would be equal to zero.

TYPES OF CURRENCY NOTES

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i) Fresh
ii) Sorted
iii) Unsorted
iv) Soiled
v) Defective

i) Fresh: Fresh notes are those which are directly issued by the State Bank of Pakistan.

ii) Sorted: Sorted notes are those which are not soiled and defective and are easily
issued to general public or customers.

iii) Unsorted: Unsorted notes are those which include soiled, defective or mutilated.

iv) Soiled: Soiled notes are oily, dirty or untidy.

v) Defective: Those notes which are marked mutilated or ragged.

Cash withdrawal:
According to State Bank 0.3% withholding tax is charged on withdrawal of more than
Rs. 25,000.

Online Cash Deposit/Withdrawal:

Inter-city cash deposit/withdrawal charges up to Rs. 500,000 are Rs.116

Intra-city cash deposit/withdrawal charges up to Rs. 500,000 are Rs. 58

Online requirements:
Copy of NIC (with original for verification)

Other Services

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Online Banking

Telephone Banking

ATM

SONERI   Debit Card

SMS Alert

Online Banking :

Telephone Banking :

ATM

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Soneri Banking Card offers convenient and 24-Hours-a-day, 365 days a year access to
ATMs across the country. When traveling within Pakistan, use the Card at Soneri Bank’s own
network of ATMs and hundred of ATMs displaying either the 1-link or M-Net symbols.

ELIGBILITY:

You can also apply for a Debit Card services. If you are having Soneri Banking Card, if you are
maintaining a Soneri Bank PKR Current or Savings account Single or Joint account with either
signatory authorized to operate the account, a further supplementary card can also be issued
to the second account holder. All Soneri Banking Card holders use debit card facility.

ATM ACCESS ACROSS ALL OVER PAKISTAN:

Now cash withdrawals and Balance Inquiry services are available by any of the ATM in
Pakistan.

AVAILABLE SERVICES:

AT ALL ATMs

Cash Withdrawal:
You can withdraw cash from your account(s) up to Rs.25,000 per day in multiples of Rs.500,
and Rs.1,000 currency notes.

Balance Enquiry:
You can see the available balance in your account displayed on the screen or obtain a printed
advice

AT SONERI BANK ATMS:

Fast Cash:
You can withdraw up to Rs.1000, 3000, 5000, 7000 and 10000 cash from your account(s).

Mini-Statement:
The ATM shall provide you with an instant mini-statement of your ATM linked accounts
(declared by you on the application) listing 10 last transactions in the account.

Request for Cheque Book:

Request for fresh cheque book may be made through the ATM. The Cheque book may be
collected from your branch after 3 working days against surrender of duly signed cheque
book Requisition slip.

Request for Statement of Account:

Request for a detailed statement is processed at the push of a button.
Requested statement shall be dispatched by your branch at your Registered
Address within 4 working days.

Pin Change:
You may change the Personal Identification Number (PIN) through the own ATMs any
number of times.
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Smart Option:

 Fund transfer
 Utility bill payments

Fund Transfer facility:

You have the power to transfer money from your account to any account of Soneri Bank
anywhere in Pakistan.

SONERI   Debit Card :

SONERI   Debit Card brings to you the ultimate facility of spending and
making payments. You are privileged to avail the unmatched opportunities and benefits of
the   CLASSIC Card and GOLD Card. With the ‘Buy Now – Pay Now’ facility,
you pay directly from your bank account. Use your SONERI   Debit Card wherever you
are and whenever you want.

 Safer than Carrying Cash.

 Pay dining, shopping, traveling, hotel and other bills at over 24 million outlets
displaying  sign locally and internationally.
 Worldwide cash withdrawal facility at over 1 million ATMs displays the sign.
 Ease of Cash withdrawal on 1 LINK and ATM networks across Pakistan.
 Credit facility available for GOLD Card Holders.
 Accessibility of multiple accounts from a single card.
 Makes money management easier.
 24/7 Automated Telephone Banking.
 24/7 Call Centre facility.
 Cheque-free banking.
 Funds Transfer facility between participating 1LINK member banks.
 Attractive rewards on spending.

Soneri   Gold & Classic

Debit Card
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SCHEDULE OF CHARGES

VISA GOLD Debit Card

Description Charges
Joining Fee NIL
Annual Charges Rs. 500 Per Card
Supplementary Card Charges Rs. 500 Per Card
Card Replacement Charges Rs. 200 Per Card
PIN Re-issuance Charges NIL
VISA CLASSIC Debit Card
Description Charges
Joining Fee NIL
Annual Charges Rs. 150 Per Card
Supplementary Card Charges Rs. 150 Per Card
Card Replacement Charges Rs. 200 Per Card
PIN Re-issuance Charges NIL
ATM Cash Withdrawal
Description Charges
Local (at Soneri ATM) Charges NIL
Local (at 1-LINK/M.Net ATMs)
Rs. 15 Per Card
Charges
Rs. 300 Per Transaction or 3% of
International Transactions
transaction amount whichever is
(ATMs Displaying PLUS Logo)
higher
Purchase: (Point of Sale Terminal)
Description Charges
Local NIL
Rs. 300 Per Transaction or 2% of
International transaction amount whichever is
higher
ATM Funds Transfer
Description Charges
Within any Soneri Bank Branch NIL
With any participating 1-Link
Rs. 50 Per Transaction
Member Bank
Other Charges
Description Charges
*Arbitration fee on disputed
Rupee equivalent of US $ 500
transaction
*Document Retrieval Charges
Rs. 250 per retrieval
Local
*Document Retrieval Charges Rupee equivalent of US $ 15 per
International retrieval

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SMS Alert :
Soneri Bank Limited now introduces to its ATM/ VISA Debit Card holders SMS
Alert Service, the best feature for warning about fraudulent transactions conducted against
Cards. Now you shall receive SMS Alerts on your mobile number registered with the bank of
all purchase transactions immediately after it has been made. Remember, an early intimation
can save you a lot of trouble later, and also protect your hard-earned money.
 
It is very easy to sign up for our SMS Alert Service. Just fill the form available in
our all Branches or call us for your SMS Alert Activation:

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IMPLICATION OF INTERNSHIP ON MY CARIER

June 12, 2010