Name and Address of institution

Soneri Bank Limited, Main Branch Sheikhupura. Sharif Plaza, Sargodha Road, Sheikhupura.

Advisor
Mr. Amad Rashid Lecturer

Submitted by
Asim Hafeez Reg no: MBTF11-022

Acknowledgement
To write an acknowledgement after that the completion of an enormous task as always been more enormous than the task itself. But with the firm determination and noble passion of hardworking, nothing remains difficult for me. I am grateful to our honorable Lecturer Mr. Amad Rashid who assigned me this report, which would be very helpful for my future in practical life. I gain a lot from this interesting Internship activity. I want to thank all those persons, who have been a source of guidance during the Internship program. I am greatly thankful for help. My deepest thanks also go to Soneri Bank Limited management. M. Muzaffar Ali Mr. Faisal Aleem Minhas (Branch AVP) (Operations manager)

EXECUTIVE SUMMARY
The banking structure in Pakistan consists of the following types, State Bank of Pakistan, Commercial bank of Pakistan, Exchange Bank, Saving Bank, cooperative banks, specialized credit institutions. SONERI BANK LIMITED Incorporated on September 28, 1991, the first branch of Bank opened for operations in Lahore on April 16, 1992 followed by Karachi Branch on May 09, 1992. The bank now operates with 217 branches spread all over Pakistan including the Northern Areas of the country where no other private bank has dared so far. Extension of branches is based on a policy of maintaining a balance level between the urban and rural areas with a view to offering services even in the distant areas of Pakistan. In six week internship program, I have worked in different departments like General banking, cash department and credits department. I have learned about the banking system from well experienced managers who are running these departments. This report contains the information about Soneri bank limited that I have collect during my six weeks internship period. This report basically deals in General banking, cash and credits where I worked. SBL Sheikhupura branch basically cover four departments like General Banking Department, Trade department, credit department and agriculture department. To open an account the customer has to meet Operational Managers with an introducer. The bank cannot open an account of customer before the CNIC verifications comes from NADRA. SBL has different types of account like, Basic Banking A/C, Salary A/C, Current account, Profit and Loss Saving and Soneri Profit and Loss Saving A/C, Ikhtiar A/C. They record all the information of their customers in data base. After entering data, they develop a customer ID which is known as Customer Relationship Management ID. Account opening head told me that with the help of this ID their different branches can easily get information about customer account. In clearing and remittances section they have very effective and efficient system. They clear the cheque through NIFT (National Institute of Facilitation Technology) where Soneri Bank Private exits. In remittances they told me about banker cheques and security deposit receipt. Now people prefer security deposit receipt instead of T.T. D.D. It is useable within six month. Bank use pay order, when the payment is to be made within a city. In trade the bank has good repute as compare to other in Sheikhupura. The leading industries of Sheikhupura are trading through SBL. In finance bank management always try to satisfy customers. Bank provides different products for its customers like. Ghar Finance

Car Finance Generator Finance Soneri personal finance Agriculture financing

Financial analysis and SWOT analysis of SBL is provided at the end of my internship report. Suggestions and recommendations are also concluding with the help of my learning and observations. This report will provide helpful knowledge to understand the working of SBL.

HISTORY

Soneri Bank Limited was fully incorporated on September 28, 1991. The first Branch starts operations in Lahore on April 16, 1992, followed by the Karachi's first Branch on May 09, 1992. The bank currently operates 217 branches, spread all over Pakistan including the Northern Areas of the country where no other bank is situated. The bank expansion policy is based on the principle of maintaining a balanced level between the urban and rural areas. Fully air-conditioned and computerized branches provide a pleasant, convenient and comfortable banking experience every time. The task of our business is to attract the industrialist with the help of our best and effective services. Nearly forty percent of credit section is related to export financing and credit decisions are taken within 48 hours.

BANK INTRODUCTION

Soneri bank Limited is engaged in banking service, and operate more than 217 braches including four Islamic Banking Branches in Pakistan. The bank operates in four segment commercial finance, trading and sales, wholesale banking and commercial banking. commercial finance includes financing and

services provided in connection with fusion and acquirement, countersign, privatization, securitizations, debt, equity, syndication, Initial public offers (IPO) and secondary private placement. Trading and sale segment comprises fixed income, equity, foreign exchange, commodities, credit, funding, own position securities, brokerage debt and prime brokerage. Retail banking segment includes vend lending and deposit, banking services, personal lending and deposit, property investment advice and trade/ commercial/ corporate cards. Commercial banking includes development finance, real estate, export finance, trade finance, factoring and leasing. Date Establish September 28, 1991 Chairman Mr. Alauddin Feerasta Representative Officer Tasaduq Gardezi HEAD OFFICE: 87, Shahrah-e-Quaid-e-Azam CENTRAL OFFICE 5thFloor, Al-Rahim Tower, I.I. Chundrigar Road, Karachi Tel: 021.2439562-67 Swift: SONEPKAXXX e-mail:info@soneribank.com SONERI BANK LIMITED (Sheikhupura) Main branch.

Nature of the Organization

Soneri bank Limited offers a wide range of business for their clients; Retail Banking Corporate Banking

RETAIL BANKING Refers to banking in which individual customers use local branches of larger commercial banks for their financial actions. Banking institutions carry out transactions directly with consumers, rather than corporations or other banks. Services offered include; o Savings and checking accounts o Mortgages o Personal loans o Issuance of debit/credit cards o Certificates of deposit (CDs) CORPORATE BANKING Corporate Banking offers modify made products / solutions as required by corporate customers who includes: o Funded facilities, ranging from short to medium and long term lending. Trade related financing.

o All kind of non-funded facilities / services which include Cash receipts / payments, allowance, Collections, security, letter of credit etc. SBL cover up cash management, foreign exchange, business-to-business payments, trust, custody, commercial lending, trade finance, and other corporate banking issues

UNIQUE FEATURE
Soneri Bank offered the following exclusive services to their customers which are given below. Full range of corporate and retail banking services with special highlighting of provide qualitative and competitive services to small and medium entrepreneurs. Highly professional and efficient treasury operations and a worldwide network of correspondents. A complete range of products for trade Finance, one of their core banking activities. Funds transfer services through On-Line banking and the bank own ATMs network, cheque-free banking and Soneri VISA Debit cards are just a few of their value added services. A wide range of attractive saving schemes to suit all kinds of investors, Consumer finance systematic and Islamic Banking products outfit to the needs of a variety of consumers. Future products include unique Investment plans under Bank guarantee business in collaboration with M/s. New jubilee Life Insurance Company.

Business Volume

Pattern of Share Holding

Description Shareholding Percentage

Directors, CEO and their spouse and minor children Allied Companies, responsibility & interrelated parties Trustees Alauddin Feerasta Trust Trustees Feerasta Senior Trust Trustees Alu Trust Executives NIT and ICP Banks, DFI & NBFI Insurance Companies Madarabas & Mutual Funds Joint Stock Companies Foreign Companies General Public (Local) General Public (Foreign) Others

12,027,971

1.3321

199,678,993 196,684,455 98,387,756 290,991 161,196,787 22,253,163 13,633,405 24,701,015 5,617,027 40,541,354 111,805,503 15,990,639 190,436

22.1148 21.7832 10.8966 0.0233 17.8529 2.4646 1.5099 2.7357 0.6221 4.4900 12.3827 1.7710 0.0211

Total

902,918,495

100.00

Refer to Annual Accounts as of December 31, 2011

Visions statement
To provide excellence services and facilities to its customers through implementation of best performance and full utilization of I.T advancement, terminate at a leading position amongst its peer banks Stronger banking community, increasing customer assurance

MISSION STATEMENT
To build up Soneri Bank into an aggressive and energetic financial institution having the capability to provide personalized service to customers with cutting edge technology and a wide range of products, and during the process guarantee maximum return on assets with the ultimate goal of serving the economy and the society.

BOARD OF DIRECTORS
THE BOARD OF DIRECTORS Mr. Alauddin Feerasta Chairman Mr. Mohammad Aftab Manzoor President & CEO Mr. Noor ud din Feerasta Director Mr. Inam Elahi Director Mr. Muhammad Rashid Zahir Director Mr. S. Ali Zafar Director Mr. Manzoor Ahmed Director (NIT Nominee) Mr. Shahid Anwar Director (NIT Nominee)

SUB COMMITTEES OF THE BOARD Audit Committee of Board

Mr. Noor ud din Feerasta Chairman Mr. Inam Elahi Member Mr. Muhammad Rashid Zahir Member Mr. Shahid Anwar Member

Mr. Muhammad Altaf Butt Secretary

Credit Committee of Board

Mr. Alauddin Feerasta Chairman Mr. Noor ud din Feerasta Member Mr. Mohammad Aftab Manzoor Member Mr. Inam Elahi Member Mr. Muhammad Altaf Butt Secretary

Risk Management Committee of Board

Mr. Inam Elahi Chairman Mr. Mohammad Aftab Manzoor Member Mr. Shahid Anwar Member Mr. Javed H. Siddiqi Secretary

Human Resource Committee of Board

Mr. Manzoor Ahmed Chairman Mr. Mohammad Aftab Manzoor Member Mr. Shahid Anwar Member Ms. Anita Lalani Secretary

DEPARTMENTS OF SBL
General Banking Trade department Credit department Agriculture department Preface of the departments in which I worked as Internee In my first week at Soneri Bank Limited, the branch manager Mr. Muzaffar Ali consigns me to learn the basic banking concept. For this purpose he heading forward me to meet with the Operations Manager, Mr. Aleem Faisal Minhas He is very supportive type of person. He told me about the rules and regulation that must be chase by me and request me to join Mr. Najeeb Ulah A/C opening (Officer). Account opening is a part of GENERAL BANKING. General banking Accounts Department Clearing Department Remittances Department Cash Department GENERAL BANKING General banking is divided in to four segments Account Opening Cash Clearing Remittances TYPES OF ACCOUNT OPENING FORM There are two types of account opening form For joint and Sole and Individual For partnership, limited Company, clubs and societies etc.

Necessity for opening an Account for JOINT and SOLE and Individual CNIC photocopy. KYC. (Know your customer)

 Note:

World Check. Letter Head pad in case of sole proprietorship

The account of person will opened after receiving verification of CNIC from NADRA.

FOR PARTNERSHIP, LIMITED COMPANY, Social CLUBS FOR PARTNERSHIP

Attested photocopy of CNIC of all partners in business Verified copy of partnership act properly signed by all partners of the company Confirm photocopy of registration of firm with registrar of firms. In case of partnership unregistered the detail should be mention in account opening form. KYC. NTN certificate World Check.

DIFFERENT TYPES OF ACCOUNTS SBL is dealing in different types of account. Basic Banking A/C Current A/C PLS Saving Soneri Saving Fixed/ Term deposit A/C Ikhtiar A/C

BASIC BANKING ACCOUNT This type of account is normally for salaried person account. Normally different companies, Schools, Colleges opened these accounts for their employees. BENEFITS OF BASIC BAKING ACCOUNT No deduction of Zakat Service charges free Soneri debit card free

CURRENT ACCOUNT Current A/C is a nonprofit account with a great expediency for individuals (in Individual or joints names), minors (to be controlled by the guardian), openhanded institutions, autonomous corporations, limited

companies, firms, associations, instructive institutions etc. Current account can be opened with any amount. SALIENT FEATURES Minimum required for opening an account is RS 1000. Service charges will be deducted if balance of account is less than RS 25000.

SONERI SAVING ACCOUNT Soneri savings account provides an opportunity to small and medium income group people for saving their small investments and small savings with an attractive return. SALIENT FEATURES Minimum balance Rs 5,000 required opening an account. No services charges. Zakat will be deducted annually. Up to Rs 100, 00 Expected profit 5% P.A. Soneri debit card and credit card. Free Deposit and Withdrawal facilities through your bank branch. Free clearing service facility to deposit cheques of other banks within the city. Online Funds Transfer through Cheques and ATM to any account across Pakistan through your bank branch and ATM of SBL. PLS SAVINGS ACCOUNT Profit and Loss saving Bank Account is a simple, straight forward saving bank Account with a great ease for individuals (in a individual or joint names) minors (to be operated by the guardians) benevolent institutions, provident fund and other funds of benevolent nature local bodies. The account can be opened with any amount; however accounts with balance below Rs.5000- on any day shall be focused as per their schedule of charge in force. The PLS Savings Account entitle Account Holder gain wonderful facilities Free Cash Deposit and Withdrawal services through your bank branch. Online Funds Transfer through Cheques to any account across Pakistan through SBL bank branch. Online Cash Deposit, Withdrawal and Funds Transfer through cheques and ATM from any of your branch across Pakistan.

Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers and bankers Cheques and security deposit receipt through your bank branch. Standing Orders facilities.

CLEARING
In clearing some important terminologies come, this is second most important part of general banking. Banker cheques Security deposit receipt

Types of clearing IBDA (inward bank debit adjustment) OBC (outward bills for collection) IBC (inward bills for collection) NIFT (national institute of facilitation) Standing Instruction Daily Fund Transferring

REMITTANCES
NEGOTIABLE INSTRUMENTS Cheque Draft on Demand / Security deposit receipt (SDR) Bankers Cheque ATM Cards

Draft on Demand / Security deposit receipt (SDR) One party is not sure about other party. Then they requested for security deposit receipt instead of cheque. It reduces the risk for other party who is demanding SDR. Bank issued the SDR after confirm the status of account of party who is making this note in the favor of other party. After issuing the SDR now it is banks liability to pay the cash to the party. NOTE: SDR used for outside the city but locally areas like Lahore, Gujranwala, Faisalabad, Etc SDR is validity six month.

Bankers cheque One party is not confident about other party. Then they requested for Banker cheque instead of cheque. BC reduce the risk for the demanding party. Bank prepares the BC after inspection the status of account

of party who is making this note in the goodwill of other party. After issuing the BC now it is bank liability to pay the cash to party. BC used outside of the city like Multan, Peshawar, Karachi, etc. BC is validity for six month.

ATM & VISA DEBIT Cards Soneri Banking Card offers convenient and 24/7 access to ATMs across the country. When traveling within Pakistan, use the Card at Soneri Banks own network of ATMs and hundreds of ATMs displaying the link-1 or MNet symbols. ATM ALL OVER PAKISTAN Now cash withdrawals and Balance Inquiry services are offered at any ATM in Pakistan. Accessible Services at All ATMS Cash Withdrawal

You can take out cash from your account(s) up to Rs.25, 000 per day maximum in multiples of Rs.500 and purchase up to RS. 100, 000 from your Visa debit card. Balance Enquiry

You can see the remaining balance in your account displayed on the screen also acquire a printed advice AT SONERI BANK ATMS Fast Cash

You have option to draw fast cash from Rs.1, 000 up to Rs. 10, 000 cash from your account(s). Mini-Statement

The ATM shall give you with an immediate mini-statement of your account(s) listing 10 last transactions in the account(s). Pin Change

You can also change the Personal Identification Number (PIN) through the own ATMs at any times. Smart Option

Fund transfer Utility bill payments Fund Transfer facility

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

CASH DEPARTMENT

The following records are maintained in the cash department. Receiving cashier books Token Book Paying cashier Book Scroll Books Cash Balance Book.

TRADE DEPARTMENT
Imports Exports
TYPES OF LETTER OF CREDIT There are two types of letter of credit that are given below. Revocable Letter of Credit Irrevocable Letter of Credit Form-E

CREDITS DEPARTMENT
Consumer Finance Corporate Finance Agriculture Finance

Types of finance There are two types of finance Consumer finance Corporate finance

Consumer finance There are four types of consumer finance Ghar finanace Car finance Personal finance Generator finance

Corporate finance There are three types of corporate finance General finance Import finance Export finance

Agriculture Loan There are three types of agriculture finance Production loan Development loan Live stock

Development Finance There are three types of development finace Short term Mid term Long term

Work accomplishment during internship

During my internship for six week, I am satisfied my assigned jobs with honesty. I have done all my duties on time. At the achievement of each duty, my work was evaluated by the Branch manager. The duties that I have learned and perform during the internship period are given below. Opening new account of customers. Checking the balance of remittances ledgers. Passing the entries of daily fund transfers. In clearing department, I checked the cheque of different banks and of the customers. Passing entries of Utilities bills in credit or debit memo. In credits, I checked the procedure of loan sanction.Management permitted as working on those areas where the chances of errors are less. During my internship, Ive found that in banking sector concentration and consistency is of greatest importance. Your little blunder can create big problem

ANALYSIS
Financial Analysis SWOT Analysis PEST

FINANCIAL ANALYSIS RATIO ANALYSIS Ratio analysis is an essential and adulthood technique of financialanalysis. Ratios are useful in These simplify the comprehension of financial statement and tellthe whole story of changes in the financial conditions of thebusiness. These provide data for inter-firm comparison. The ratios highlight the factors linked with successful and unsuccessful firms,also disclose strong and weak firms. These help in planning and forecasting these can assistmanagement in its basic fun ctions of forecasting, planning,coordination and control. These help in investment decision in case of investor and lendingdecision in case of Bankers etc. However the ratios are only sign, they cannot be taken as final as regards good or bad financial position of the business other things have also to be taken.

Gross Spread Ratio

Net markup income over Gross Mark UP income Details Gross Spread (NIM /Interest Income) 2011 30.23% 2010 29.72% 2009 29.29% 2008 2007 2006

37.64% 30.89% 31.93%

Gross spread ratio show the relation between gross interest and gross interest income earned.According to analyst this ratio must be high. This ratio show different trends like it increases from 2006 to 2008 and then decreases and then increases in 2011.
Current Ratio Current assets / current liabilities
Detail Net Assets 2011 10,977 2010 8,918 2009 7,803 2008 7,113 (Rs. in Millions)

Total Assets Earning Assets Total Liabilities

129,732 111,929 118,755

108,106 92,194 99,188

95,310 81,420 87,507

80,977 65,699 73,864

Current ratio show that how much assets against liabilities are available to pay off. Current ratio is two tail ratio it must not exceed or decrease from a general level is the market.

Different ratios Analysis

Detail Profit Before Tax Ratio Noninterest income to total income Income I expense ratio Return on Average Equity (ROE) Return on Average Assets (ROA) 2011 2010 2009 4.88% 29.93% 1.88 2.05% 0.16% 2008 22.86% 29.40% 2.14 10.63% 0.89% 2007 49.14% 35.53% 2.32 17.51% 1.36% 2006 57.44% 29.92% 2.43 21.90% 1.47%

18.42% 3.29% 33.40% 28.73% 1.67 8.42% 0.66% 1.59 1.61% 0.12%

Annual report of 2011 is available at

http://www.soneribank.com/document/url/83/Soneri_AR_2011.pdf

SWOT ANALYSIS There are following strength weakness opportunity and threats for SBL. STRENGTH Since, beginning of Soneri Bank Limited, it has moved swiftly in getting bigger branch network and deposit bases along with profitable advances and rising the products and services.In Sheikhupura bank has only one branch and it is main branch in sheikhupura. The Soneri Bank Limited management has decided to expand its business in Sheikhupura by expanding its main branch. The Pakistan Credit rating Agency Limited (PACRA) rewarded Soneri Bank Limited an AA andA1+ and A+ for the different Finances. Certificates show brilliant banks well maintained risk profile with conserved sound assets quality. In order to maintain an successful communication of information regarding the need of respected client bank has designed its website to be user friendly as much possible. Soneri Bank Limited join hands with different cellular companies to provide bank statement on their customers mobile phone. The leading companies of Sheikhupura like quality Textile, rupali private limited and rupafil pvt have an account with Soneri Bank Limited. These companies are trading using Soner Bank Ltd. reliable workforce and satisfied Customers. WEAKNESS As bank policy, advertising and publicity is not broadly highlight. Through advertisement customers could be kept with the product and services. The focus of Soneri Bank is main cities of Pakistan. It is needed to extend its network and people should be well aware of bank working. Poor employee growth and encouragement. During the training the trainer couldnt gave them proper information. So the trainee faces problem. cynical approach in lending.

OPPORTUNITY The life succession of an organization is consist of of threats plus opportunities. If we look around, the rates of dares are too high but all together the rate of opportunity is also too high. It is necessary to try to make progress with uniformity get used to changes with the need of time, in order to handle both conditions. In the existing situation, Soneri Bank should get a break through in further and impress various corporate customer and retail customer by expanding their network and services. In addition to the excellent schedule banking, it has earned a status by offering extraordinary products like Soneri car finance, ghar finance andpersonal finance. So the penetration of these products could boost the market share. Soneri Bank has launched another division know as Islamic Banking. it is also need expansion on a large scale. If Soneri Bank focusing on advertisement it would be better for organization,because advertising makes people know about the products. Should also open new branches is rural areas to capture market share. Soneri Bank can get benefit from handsome return on its funding base by investing in capital markets in the foreign countries. THREATS Threats are part of business from its begining. Many financial institutions are working as Private Limited Company and facing a fear of threat from their competitor and new entrants. In order to maintain and increase the market share , Soneri Bank always try to introduce new plans /packages like Soneri generator finance and Islamic banking facilities with accordance to the need of customers. The rate of inflation is increasing with the increase in unemployment in our country. So due to increase ingeneral price level of the products, the money saving of the people is decreasing, So it is major threat for banking sector. In future the deposits in the bank will decreases.

As the time goes on the number of banks is increasing in Pakistan. Mostly Foreign bank want to open their branches in Pakistan. So it would be a great threat for Soneri Bank. SUGGESTIONS

If I am the in upper level management of Soneri Bank. These are following suggestions that I have made for the development of bank. In the current situation, Soneri Bank should infiltrate further and capture various corporate customer and retail customer by expanding its network. In addition to the excellent schedule banking, it has earned a status by offering extraordinary products like Soneri car finance, ghar finance andpersonal finance. So the penetration of these products could boost the market share. Soneri Bank has launched another sector know as Islamic Banking. This new feature will also bring a large number of customers, who dont want to deal with interest. If Soneri Bank focusing on advertisement it would be better for organization,because advertising makes people know about the products. Should also open new branches is rural areas to capture market share. Soneri Bank can get benefit from handsome return on its funding base by investing in capital markets in the foreign countries. If Soneri Bank start giving night banking facility to its customer. It would also attract the other customers who dont have much time in day time. Soneri Bank have some threats from their competitors in different product lines. For this purpose they just need to reduce their mark up rate as compare to their competitors. By doing this they may attract big market share. In long run it would also advantageous for the bank. Soneri bank can attract more customers by just improving their services and facilities to its customers.