GROUP PROJECT

TOPIC: SUMMIT BANK

SUBJECT: BC-311\BANKING LAWS AND
PRACTICES
SUBMITTED Prof. Dr. Ishfaq Ahmad Bhatti  
TO:
SUBMITTED Humera Tariq and Tayyaba
BY: Ramzan
ROLL NO: BC19-454 , BC19-455
SECTION:  B – Afternoon  
CLASS: B. Com (Hons)
SESSION:  2019-2023

HAILEY COLLEGE OF COMMERCE

UNIVERSITY OF THE PUNJAB
 SUMMIT BANK LIMITED

INTRODUCTION
In October 2007, Arif Habib Securities Limited under the Scheme of Amalgamation set by the State
Bank of Pakistan acquired the Pakistan Operations of Rupali Bank Limited; hence forming Arif Habib
Bank. On 31st March 2010, Suroor Investments Ltd, a Mauritius based investment firm, acquired
59.41% stake in Arif Habib Bank Ltd from Arif Habib Securities Ltd, and on the 18th of August 2010,
Arif Habib Bank Ltd was rebranded as Summit Bank Ltd.

Summit Bank's parent company, Suroor Investments Ltd, later acquired majority shares of My Bank
Ltd and Atlas Bank Ltd in Pakistan. The operations of the later mentioned banks were then merged
under the single umbrella of Summit Bank Ltd, thus expanding the Bank’s network to more than 193
Branches.

Aspiring to become the bank of preferred choice, Summit Bank has decided to convert itself into a
full-fledged Islamic Bank. We are guided by an eminent board of Shariah scholars and practitioners
with extensive experience in the field and Alhamdulillah our 48 branches distributed in 23 cities, are
now offering Islamic banking opportunities with an extensive range of Products & Services.

Our Motto “Committed to you” underscores the commitment the bank aims to fulfill to its
customer.

VISION AND MISSION

Summit Bank prides itself on being the bank that its customers can trust and rely on for the best
banking and financial services in the market.

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 & a professional working environment to our employees.
 To provide fair returns to our shareholders on their investment.
 To serve the community at large.
 To discharge corporate social responsibility

PRODUCTS
DEPOSIT PRODUCTS

1. Current
2. Savings
3. Term deposits
1. CURRENT ACCOUNT

Summit Bank offers you a convenient and secure way of managing your money in local and foreign
currencies. With easy withdrawals of funds and unlimited daily transactions, this product fulfills all
your banking needs.

Key Features:

 Non-profit bearing Account

 Choice of Periodic Statements on monthly, quarterly, half-yearly and annual basis
 Anytime access to your Account Statement through our Internet Banking and Electronic
Statement Facilities
 Account Transaction information through SMS Alerts
 Free Debit Card
 No Deduction of Zakat
 Value Added Services
 Free Online Banking
 Free Utility Bills payments via ATM, SMS, Internet Banking, Contact Center, Summit Bank
Branches
 Free Pay Order, Demand Draft, and Call Deposit Receipt & Rupee Travelers Cheques issuance
 Free Home Remittance Payments
 Unlimited Free of Cost Transactions (over the counter & Summit Bank ATMs)
 Free Dispatch of Account Statements (on half yearly basis)
 Free Electronic Account Statements
 Free Outward Clearing Cheques (returned)
 Free Fund Transfer within Summit Bank via ATM, Website, and Branch Network
 Free Expired Debit Card Replacement
 Free Personal Accidental Insurance
 Free ATM Cash Withdrawal Insurance
 24/7 Customer Care

Current account has further two types such as:

1. CLASSIC CURRENT ACCOUNT

2. SUMMIT ASAAN CURRENT ACCOUNT
2. SAVINGS

PLS Savings Account

Summit Bank Profit and Loss Savings Account is the most convenient way to manage your Savings in
Local and Foreign Currencies. Our PLS Savings Account is designed to provide you with Easy access to
your money, along with a higher rate of Return.

Key features:

 Profit Bearing Account

 No Minimum Balance Requirement
 Choice of Periodic Statements on monthly, quarterly, half-yearly and annual basis
  Access to your account statement anytime through our Internet Banking and Electronic
Statement Facilities
 Account Transaction information through SMS Alerts
 Free Debit Card

Value Added Services:

 Free Online Banking

 Free Utility Bills payments via ATM, SMS, Internet Banking, Contact Center, Summit Bank
Branches
 Free Pay Order, Demand Draft, Call Deposit Receipt & Rupee Travelers Cheques issuance
 Free Home Remittance Payments
 Unlimited Free of Cost Transactions (over the counter & Summit Bank ATMs)
 Free Dispatch of Account Statements (on half yearly basis)
 Free Electronic Account Statements
 Free Outward Clearing Cheques (returned)
 Free Fund Transfer within Summit Bank via ATM
 Website, and Branch Network
 Free Expired Debit Card Replacement
 Free Personal Accidental Insurance
 Free ATM Cash Withdrawal Insurance
 24/7 Customer Care

Further types are given as:

1. DAILY PRODUCT ACCOUNT

2. SENIOR CITIZEN ACCOUNT
3. HAMARA FAMILY SAVINGS ACCOUNT
4. YOUNG BEE ACCOUNT
5. SUMMIT ASAAN SAVINGS ACCOUNT
3. TERM DEPOSIT

ADVANTAGE ACCOUNT

As an innovative Investment Product, Summit Bank offers Summit Advantage Account to ensure
Convenient and Profitable Financing. Whilst delivering Exceptional Returns on your Investment,
Summit Bank also provides the opportunity to avail up to 70% Loan Financing, Free from any
additional markup.

This unique offer is for those who want to conserve their savings but still want to avail a hassle-free
financing facility to manage periodic cash flow needs.

Key Features:

 Rs.100, 000 to start with

 Maximum Limit of Investment Up to Rs.10, 000,000
 1 Year Term
 Maximum Loan up to 70% of the Deposit with No Additional Markup
 Attractive Returns
  Monthly Profit Payout

Value Added Services:

 Free Online Banking

 Free Utility Bills payments via ATM, SMS, Internet Banking, Contact Center, Summit Bank
Branches
 Free Pay Order, Demand Draft, and Call Deposit Receipt & Rupee Travelers Cheques issuance
 Free Home Remittance Payments
 Unlimited Free of Cost Transactions (over the counter & Summit Bank ATMs)
 Free Dispatch of Account Statements (on half yearly basis)
 Free Electronic Account Statements
 Free Outward Clearing Cheques (returned)
 Free Fund Transfer within Summit Bank via ATM, Website, and Branch Network
 Free Expired Debit Card Replacement
 Free Personal Accidental Insurance
 Free ATM Cash Withdrawal Insurance
 24/7 Customer Care

DEPARTMENTS
1. REMMITTANCE DEPARTMENT
2. CLEARING DEPARTMENT
3. ACCOUNT OPENING DEPARTMENT
4. CASH DEPARTMENT

REMITTANCE DEPARTMENT

 Demand Draft (DD)

 Pay order (PO)
 Online transfer or internal transfer
 Call Deposit Receipt (CDR)
 Deposit slip

CLEARING DEPARTMENT

Types of clearing:

In clearing we deal with the cheques of other banks or other branches of SMBL.

There are three types of clearing:

1. Outward clearing
2. Inward clearing
3. Intercity clearing
1. OUTWARD CLEARING

When cheques of our bank are deposited in other banks and their cheques are sent to us for
verification, we debit our client after verification of their account. Outward clearing is the settlement
of claims of our branch of BOP but drawn on other branches of BOP or on other banks. These
cheques are deposited by our customer in our SMBL branch and then our branch presents it in
outward clearing.

These are the following details required in Clearing Register:

 Serial No.
 Account no. of the depositor
 Depositor name
 Drawer
 Drawee
 Cheques No.
2. INWARD CLEARING

Inward clearing is made in the morning which would be present on the next day. Two stamps are
stamped, one on the front of the clearing date stamp and one on the back manager stamp that the
payee account will be credited with signature. It deals with the city. Time limit of this type of clearing
is two days. Return on paid charges are Rs.300 which are deducted from the depositor account in
case of retirement of cheques.

Inward clearing other banks or other branches of SMBL also settle their account by claiming the
instruments which are drawn by the other bank customers or other branches of SMBL bank. This is
inward clearing other banks sent instruments to our branch which are drawn on us.

There are few things which are included in inward clearing, which are:

 Serial No.
 Account no. of the depositor
 Depositor name
 Drawer
 Drawee
 Cheques No.
 Amount of the cheques
3. INTERCITY CLEARING

Where there is State Bank of Pakistan then the clearing is done by NIFT and if not then another
institute is worked so CC (cheques collection) is made. Three stamps are stamped, two on the front
side and one on the back side. On the front side one stamp of intercity clearing and another is a
branch stamp on which it has to present. On the back side manager stamp that payee account will
be credited and manager signature also A clearing schedule slip is arranged with the branch code
stamp, total amount and number of instruments and ads list is also attached with clearing schedule
slip. After matching the details of clearing Register with clearing schedule slip all the instruments,
add list, outline page is put in an envelope and packed in a NIFT bag and that NIFT bag is closed with
that plastic seal.

ACCOUNT OPENING DEPARTMENT

These are the documents which is necessary for opening an account:

o Source of Income
o CNIC of account holder
 o CDD (Customer Due Diligence)
o EDD (Enhance Due Diligence)
o KYC (Know your customer)
o FATCA (Foreign Account Tax Compliance Act)
o NADRA

Account opening procedures:

Whenever a person has to use the services of a bank, he or she has to open an account with any of
the banks available in the region. A bank normally entertains two kinds of account holders. First,
those who are walk-ins and secondly the ones who are being marketed by the bank's marketing
departments.

Whoever, opens an account in the bank he must have follow the following steps:

o Account opening form

o Completion & submission of account opening form
o Signature specimen card
o Computerized verification
o Verification and authorization
o Opening the account
o Allotment of account number
o Issuance of letter of thanks
o Issuance of cheques book
o Issuance of ATM card / pin code
o Return of pin code
o Disposal / destruction of ATM card
o Cheques book charges
o ATM charges

CASH DEPARTMENT

In the cash department both deposits and withdrawals go side by side. This department works under
the accounts department and deals with cash deposits and payments. This department maintain the
following sheets:

 Cash received voucher sheet

 Cash paid voucher sheet
 Deposit slip
 Cheques book
 Cash balance book
Cheque book:

The only instrument that can be used to withdraw an amount from an account is the Cheques book.
No payments are made by another instrument. Cheques can be of two types, they may be presented
at the counter and encashed and the others are clearing or transfer cheques. Cashier manually
inspects the Cheques for following:

 Signature & date

 Cross cutting
 Drawee’s a/c title
 Amounts in words & figures
 Two signatures at the back

Deposit slip:

For depositing the cash into customer’s accounts, there is a need to fill in the pay-in-slip giving the
related details of the transaction. This paying-in slip contains the date, a/c/no, a/c title, particulars,
amount being deposited and details of the cash. There are two portions of the paying-in-slip.

The depositor signs the one part of the paying-in-slip that is retained by the bank to show an
acceptance of the entries made in the slip. The different colored pay-in-slip are used for all the types
of deposits. Only the slips related to a particular type of a/c are acceptable by the bank. For example,
current paying-in-slip for current a/c and saving paying-in-slips for saving a/c etc. The paying-in-slip
serves as a voucher to update to a computerized transaction ledger.