INTERNSHIP REPORT ON

SONERI BANK LIMITED

ABBOTTABAD
(0079)
Submitted by: M. Shahbaz

Roll # S-10-03

Supervised by: Sardar Ejaz Ahmed

Government College of Management Sciences

Abbottabad
SESSION: 2010-2014

INTERNSHIP REPORT ON
SONERI BANK LIMITED
ABBOTTABAD
(0079)
Submitted by: M. Shahbaz
Roll # S-10-03
Supervised by: Sardar Ejaz Ahmed
This internship report is submitted in partial
fulfillment of the requirements for the degree of
Bachelors of Business Administration awarded by
the Hazara University
Mansehra

Government College of Management Sciences

Abbottabad

SESSION: 2010-2014
Government College of Management Sciences
Abbottabad

Approval Sheet

Approval Committee

1. External Examiner

Mr.________________________

Signature_______________

2. Supervisor

Sardar Ejaz Ahmed

Assistant Professor

3. Head of Department

Signature_______________

Mr.Mushtaq Ahmed_________

Signature_______________

Principal

DEDICATION

I dedicated this report to my parents who have continuously given me moral support and
encouraged me though my four years of Bachelor studies. They gave me mental strength to
fight and deal with the hurdles of the daily routine I faced during my study. At this stage I can
say that today what I am where I stand is just because of them. Secondly I would like to
dedicate this report to my supervisor who guided me through out my internship and even in
the making of report.

ABSTRACT
All praises and thanks to Almighty ALLAH. The lord and creator of this universe by
shoes power and glory all goods and things are accomplished. He is also the most merciful,
who gave me the ability and opportunity to work on this report.
It is an academic requirement for the student of BBA (Hons) to undergo an internship
program of sex weeks duration. This opportunity provides to the students to apply theoretical
knowledge and gain practical experience about the organization. The purpose of internship
report is to evaluate the performance of organization and give concrete recommendation for
further improvements.
Another aspect of this internship is that it makes of a student imaginative and be
dynamic and takes him away from bookish and impractical philosophy. So it makes the
student a practical man and helps him to face difficulties of practical life and the solution of
problems. Through internship a student can judge his qualities and expertise, whish he gained
from books.
As a compulsory requirement of Professional Degree BBA (Hons), I opted to join
Soneri Bank Limited, to fulfill my degree requirement. My reason for choosing SBL was to
enhance my skills in Management Finance and Accounts, so that to provide myself the
opportunity to cope with real life situation.
To better understand the report my recommendation would be to look into different
parts mainly covering the overview of SBL, overall management of Finance and Accounts.
The bank staff was very much cooperative to me, they have provided me relevant
material to write a report. I am very much thankful to them and to my Advisor Sardar Ejaz
Ahmed for the supervision and guidance.
Finally, keeping the tradition alive as well as fulfilling social and ethical
responsibility, my dedications will always go to my dear Parents & Family and Friends.

Table of Contents
Chapter # 1
Introduction

01

Background of the Study

01

Purpose of the Study

01

Scope of the Work

02

Methodology of Research

02

Objectives of the Study

02

Limitations of the Study

03

Significance

03

Scheme of the Report

04

Chapter # 2
Historical Background

05

Banking (Definition)

06

Importance of Banking

06

Major Functions of Commercial Banks

06

Banking in Free Market Economy

09

Historical Background of Banking in Pakistan

09

Role of Commercial Banks in Eco Development

12

Chapter # 3
Soneri Bank Ltd

15

Introduction (SBL)

15

History of Soneri Bank Limited

16

Motivation of Soneri Bank Limited

16

Awards and Achievements

17

Nature of the Organization

18

The Mission, Vision and Objectives

19

Organizational Structure of SBL

21

Organization Branch Structure Chart

23

Organogram

24

Corporate Information

25

Chapter # 4
Products and Services

27

Deposits

27

Advances

28

Products

29

Agriculture Banking

29

Chapter # 5
SBL Departments

30

General Banking Department

30

Credit Department

44

Foreign Exchange Department

51

Computer Department

55

Chapter # 6
Financial Analysis

56

Balance sheet & Income Statement

57

Ratio Analysis

60

Horizontal and Vertical Analysis

70

Swot Analysis

74

Chapter # 7
Conclusions and Recommendations
References & Sources

81

84

ACKNOWLEDGEMENT

I have great sense of gratitude for the most Beneficent and Merciful Allah who has always
helped me in all matters of life. I tried but He rewarded me more than the tried. Billions of
Darood-o-Salam upon Muhammad (PBUH) Last Prophet of Allah who is the savior of
humanity.

I am thankful to my parents and to their blessings and support and allowing me to

intern where I wanted. They have always soothed me, elevated me and their words and dua
has floated me in the deep seas of troubles. All of my successes are due to my family. Great
tributes to my beloved parents who taught me to strive for Rizq-e-Hilal and always trust in
Almighty Allah! My father is my all times mentor.
I would also like to thank all the staff of Soneri Bank Limited who gave me the
confidence and guided me at every step of my internship period. It was great fun to write this
report due to the fact that it was an explanation of what I experienced and learnt during my
internship. It gave me a better idea of how things work practically and how important it is to
deal with all aspects of FINANCE. This report gave me the opportunity to put into practice of
what I had learnt during my internship.
I am thankful to all my teachers and friends whom cheerfulness and guidance is an asset for
me.

M. Shahbaz

List of Abbreviations

SBL
IDBP
SBP
MNCs
ADBP
L/C
L/G
ATM
APD
IPD
IT
BTF
NIT
FC
PLS
HRM
SBU
NDFC
RTCs
AIGP
MT
ETD
MIS
FDD
FS
ETD

Soneri Bank Ltd.

Industrial Development Bank of Pakistan
State Bank of Pakistan
Multi-National Companies
Agricultural Development Bank of Pakistan
Letter of Credit
Letter of Guarantee
Auto Teller Machine
Assets Product Division
Investment Product Division
Information Technology
Balance Transferred Facility
National Investment Trust
Foreign Currency
Profit & Loss Sharing
Human Resource Management
Strategic business unit
National Development Finance Corporation
Rupee Travelers Cheques
American International Group Pakistan
Mail Transfer
Electronic Technology Department
Management Information System
Foreign Demand Draft
Financial Statement
Electronic Technology Department

EXECUTIVE SUMMARY
This report highlights the operations and functions of bank. Banks acts as financial agents to
their customer; in return they get reward for their services. Banks play important role in
development of society. A strong economy must have a good banking system.
SONERI BANK is one of the leading banks in Pakistan. According to international standards
of banking system it is one of the best banks in South Asian region as well as the bank, which
is, come the top ten in the world. This report explains how different functions of SONERI
BANK works and what are their services.
The report relies mainly upon secondary data with the use of primary data at instances when
the former would be unclear or difficult to comprehend. The report is mostly objective in
nature with hints of subjectivity in financial analysis. The first part of the report is about the
evolution of banks, where as the second part is about the functions and services of SONERI
BANK and in third part the financial analysis and recommendations are given.
During the critical analysis, it was observed that SONERI BANK is one of the leading
commercial banks of Pakistan with a network of around 1213 branches all over Pakistan.
SONERI BANK provides a wide variety of products and accounts that suit the lifestyle and
needs of the masses .In fact commercial banking is regarded as a Conservative business
because the rewards are modest and the penalties of bad banking are many. As a trustee of the
public funds, SONERI BANK has a greater responsibility for safety and prudence. Many
business can enjoy some slack in their affairs, commercial banks cannot afford this, since
commercial banks must make a living by putting the money at their disposal to work, they are
faced with the problem of making a living without jeopardizing the safety of their institution
and SONERI BANK is doing all this very efficiently.
The SONERI BANK is known for its customer services as well as for its products, which are
in demand.