Soneri Bank Internship Report-2009

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INTERNSHIP REPORT
SONERI BANK
LIMITED
MULTAN (2009)
Soneri Bank Limited (Internship Report, 2009)
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Table of Contents
TABLE OF CONTENTS..............................................................................................................................................2
DEDICATION...............................................................................................................................................................3
PREFACE......................................................................................................................................................................4
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ACKNOWLEDGEMENT............................................................................................................................................5

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Dedication
In The Name Of Allah the Most
Beneficent and the Merciful
I dedicate this report to my parents, thank you for being a pillar of strength for
me when I was weak. Thank you for not throwing me away when I
disappointed you. Thank you for loving me.
Finally, I dedicate this report to Mr.Shoukat Malik for not only being our teacher
but our mentor as well and teaching us everything that we must know to be the
knights of the business empire. I would also like to dedicate this report to all my
respectable teachers.

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Preface
G etting practical knowledge in one of the major aims of MBA program.
Department of Business Administration Bahauddin Zakariya University
City Campus, Multan has followed policy of assigning different practical
assignments to its students so a touch of real working environment can be given to
the students apart from classroom studies to widen their perspective.
In this context, respectable Chairman Mr. Shoukat Malik has assigned me to do

internship in Soneri Bank.
This internship report consists of two findings to work in the different departments
of bank and gathered useful information from different sources. ; I hope that the
readers of this report will get valuable information about Soneri Bank Multan.
Author
Adnan Laeeq

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Acknowledgement
A ll prays goes to Allah almighty. To write an acknowledgement after the

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 am grateful to our honorable Chairman Mr. Shoukat Malik who assigned me

this report, which would be very helpful for my future in practical life. I gain a lot
from this interesting earning job.
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.
Qamar Azeem (SEVP)
M. Ikram (Branch Manager)
Zaffar Iqbal (Operations Manager/AVP)
Needless to say that all shortcoming of this report will remain my responsibility.

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EXECUTIVE SUMMARY
The banking structure in Pakistan comprises 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 formally opened doors for operations in Lahore on April 16, 1992
followed by Karachi Branch on May 09, 1992. The bank now operates with
118 branches spread all over Pakistan including the Northern Areas of the
country where no other private bank has ventured so far. Expansion of
branches is based on a policy of maintaining a balance between the urban
and rural areas with a view to offering services even in the remote areas of
Pakistan.
In six week internship program, I have worked in different departments like

General banking, trade department and credits department. I have learned
about the banking from experienced managers running these departments.
This report contains the information about SBL that I have gathered during
my six weeks internship period. This report basically deals in General
banking, trade and credits where I worked.
The bank is using SWIFT for transfer of information about imports and
exports. SBL Multan branch basically cover three departments like General
Banking Department, Trade department and credit department.
To open an account the customer has to meet Operations Managers with an

introducer. The introducer must have an account in bank, or introducer
might be the employee of the bank. Soneri bank strictly followed the account
opening procedure. The bank cant open an account of customer before the
verifications comes from NADRA. SBL has different types of account like,
Basic Banking A/C. Current account, PLS and Soneri PLS A/C.
They store all the information of their customers in data base. After entering
data, they assigned customer an ID is known as Customer Relationship
Management ID. He told me with the help of this ID their different branches
can easily get information about customer account.

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In clearing and remittances section they have very efficient system. They
clear the cheque through NIFT (National Institute of Facilitation
Technology) where SBP exits. In remittances they told me about T.T D.D.
and pay orders. Now people prefer D.D instead of T.T. D.D is a banker
instrument and draft used for outside the city. It is valid for six month.
Bank use pay order, when the payment is to be made with in a city.
In trade the bank has good repute as compare to other in Multan. The
leading industries of Multan are trading through SBL.
In corporate finance the bank deals only worthy enough industries.
In consumer finance bank management always try to satisfy them. Bank
offer different products for its customers like
• Ghar Finance
• Car Finance
• Generator Finance
• Soneri personal finance
At the end of this report, on the basis of my observations during internship,

financial analysis and SWOT analysis of SBL is provided. Suggestions are also
recommended as per learning from analysis. This report will provide better
and comprehensive learning about Soneri Bank Limited

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HISTORY
SONERI BANK LIMITED Incorporated on September 28, 1991 the first branch
of Bank formally opened doors for operations in Lahore on April 16, 1992
followed by Karachi Branch on May 09, 1992. The bank now operates with
118 branches spread all over Pakistan including the Northern Areas of the
country where no other private bank has ventured so far. Expansion of
branches is based on a policy of maintaining a balance between the urban
and rural areas with a view to offering services even in the remote areas of
Pakistan. Pleasant and sophisticated atmosphere has been provided in the
branches which are all fully air-conditioned and computerized.
The bank is looking forward to attain growth through activating the areas of
SMEs and Agriculture credits. The Pakistan Credit rating Agency Limited
(PACRA) has maintained banks credit rating at “AA-” for long term and “A1+”
for the short term and “A+” for the Term Finance. Certificates reflecting
bank’s well maintained risk profile with preserved sound asset quality. We
take this opportunity to thank the Ministry of Finance and State bank of
Pakistan their continued support and guidance.
BANK INTRODUCTION
Soneri bank Limited is engaged in banking service, and operate more than
118 braches including four Islamic Banking Branches in Pakistan. The bank
operates in four segment corporate finance, trading and sales, retail banking
and commercial banking. Corporate finance includes syndicated financing
and services provided in connection with mergers and acquisitions,
underwriting, privatization, securitizations, debt, equity, syndication, Initial
public offers (IPO) and secondary private placement. Trading and sale
segment includes fixed income, equity, foreign exchange, commodities,
credit, funding, own position securities, brokerage debt and prime brokerage.
Retail banking segment includes retail lending and deposit, banking services,
private lending and deposit, trust and estates investment advice and
merchant/ commercial/ corporate cards. Commercial banking includes
project finance, real estate, export finance, trade finance, factoring and
leasing. The essence of our business philosophy is to cater to the banking
requirements of small & medium sized entrepreneurs, 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 is why we say.
Date Establish:
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September 28, 1991
Chairman
Mr. Alauddin Feerasta
Representative Officer
Tasaduq Gardezi
HEAD OFFICE:
87, Shahrah-e-Quaid-e- Azam,
P.O. Box No# 49, Lahore
Tel +92426368142
Fax+9242-6368138
Swift: SONEPKKALHR email. main.lahore@soneribank.com
CENTRAL OFFICE
5th Floor, Al-Rahim Tower,
I.I. Chundrigar Road, P.O.Box 5856, Karachi
Tel: 021.2439562-67
Swift: SONEPKAXXX e-mail: info@soneribank.com
SONERI BANK LIMITED (MULTAN)
Main branch: Mall plaza, Quaid-e-Azam Road, Multan Cantt., Pakistan.
Tel: 061-4512884, 4519927 UAN# 111-567-890
Swift: SONEPKKAMTN email: main.multan@soneribank.com
Main branches in the different cities of the

Pakistan
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Region Number of Branches
Lahore 23
Karachi 43
Faisalabad 2
Peshawar 2
Faisalabad 1
Mirpur (Azad Kashmir) 2
Quetta 2
Islamabad 3
Gujranwala 1
Sialkot 1
Rawalpindi 2
Wizirabad 1
Sheikhupura 1
Hyderabad 5
Multan 3
Gilgit 2
Sahiwal 1
Skardu 1
Hunza 1
Lodhran 1
Rahim Yar Khan 1
Bahawalpur 1
Gwadar 1
Abotabad 1
Okara 1
Sargodha 1
Hub chowki 1
Golarchi 1
Bohara 1
Gujar Khan 1
Jehlum 1
Khanewal 1
Booni 1
Burewala 1
Jati Town 1
Hafizabad 1
“Nature of the Organization”

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Soneri Bank Limited offers a range of business for their customers;
• Retail Banking
• Corporate Banking

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RETAIL BANKING
• Refers to banking in which individual customers use local branches of

larger commercial banks for their financial activities.
• Banking institutions execute 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 tailor made products / solutions as required

by corporate customers which includes:
o Funded facilities, ranging from short to medium and long

term lending.
o Trade related financing.
o All sorts of non-funded facilities / services which include

Cash receipts / payments, Remittances, Collections,
guarantees, letter of credit etc.
o Customized products / solutions.
• SBL covers cash management, foreign exchange, business-to-business

payments, trust, custody, commercial lending, trade finance, and other
corporate banking issues.

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UNIQUE FEATURE
Soneri Bank offered the following Unique services to their customers which
are given below.
• Full range of corporate and retail banking services with special

emphasis to provide qualitative and competitive services to small and
medium entrepreneurs.
• Highly professional and efficient treasury operations and a world wide

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 segments of

investors, Consumer finance Schemes and Islamic Banking products
catering to the needs of a variety of consumers.
• Future products include unique Investment plans under Banc

assurance business in collaboration with M/s. New jubilee Life
Insurance Company

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•BUNINESS VOLUME

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VISION STATEMENT
“To provide quality services to its customers through adoption of best
practices and full exploitation of I.T advancement, culminating at a leading
position amongst its peer banks”
“Stronger banking relationships, increasing customer confidence”

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MISSION STATEMENT
To developed Soneri bank Limited into an aggressive and dynamic financial

institution having the capabilities to provide personalized service to the
customers with cutting edge technology and a wide range of products, and
during the process to ensure maximum return on assets with ultimate goal of
serving the economy and society.
“We have more time for you”

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BOARD OF DIRECTORS
Chairman
Mr. Alauddin Feerasta
Chief Executive Officer
Mr. Safarali K .Lakhani
DIRECTORS
Mr. Noor Feerasta
Mr. Inam Elahi
Mr. S. Ali Zafar
Mr. Abdul Hayee
Mr. Shahid Anwar (NIT Nominee)
Mr. Manzoor Ahmad (NIT Nominee)
AUDIT COMMITTEE
Mr. Nooruddin Feerasat( Chairman)
Mr. S. Ali Zafar(Member)
Mr. Shahid Anwar (Member)
Mr. Abdul Hayee (Member/ Secretary)
COMPANY SECRETARY
Mr. Abdul Hayee
LEGAL ADVISOR
Manan Associates, Advocates
AUDITORS
A.F Ferguson & Co.
(Chartered Accountant)

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DEPARTMENTS OF SBL
• General Banking
• Trade Department
• Credit Department
Introductions of the departments in

which I worked as Internee
In my first week in SBL, the branch manager Mr. Ikram

assigned me to learn the basic banking concept. For this
purpose he directed me to meet with the Operations
Manager, Mr. Zaffar Iqbal (AVP). He is very cooperative
kind of person. He told me about the rules and regulation
that must be me followed by me and asked me to join Mr.
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Tasaduq Gardezi A/C opening (Officer). Account opening
is a part of GENERAL BANKING.
GENERAL BANKING
• Accounts Department
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• Clearing Department
• Remittances Department
• Cash Department

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GENERAL BANKING
General banking is divided in to four sections
• Account Opening
• Cash
• Clearing
• Remittances
ACCOUNT OPENING
TYPES OF ACCOUNT OPENING FORM
There are types of account opening form
• For single, sole proprietorship & joint personal

• For partnership, limited Company, trust, clubs etc.
BASIC REQIRMENTS FOR OPENING AN ACCOUNT
FOR SINGLE, SOLE PROPRIETORSHIP & JOINT PERSONAL
•CNIC photocopy.
•Introducer must have an account in the same branch.
•KYC.
• NTN certificate (for Sole Proprietorship)
• World Check.
• Letter Head in case of sole proprietorship
Note: The account of person will opened after receiving verification from
NADRA.
FOR PARTNERSHIP, LIMITED COMPANY, TRUST, CLUBS ETC
FOR PARTNERSHIP
• Attested photocopy of CNIC of all partners

• Attested photocopy of partnership deed duly signed by all partners.
• Attested photocopy of registration of firm with registrar of firms. In
case of partnership unregistered the fact should be mention in account
opening form.
• Authority letter, in original, in favor of the person authorized to operate
on the account of the firm.
• KYC.
• NTN certificate
• World Check.
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TYPES OF ACCOUNTS
Soneri bank is dealing in different types of account.
• Basic Banking A/C

• Current A/C
• PLS Saving
• Soneri Saving
• Fixed/ Term deposit A/C
BASIC BANKING ACCOUNT
This is account is for salaried person account. Normally different companies,

Schools, Colleges opened their employees account in this account.
BENEFITS OF BASIC BAKING ACCOUNT ARE GIVEN BELOW:
• No Zakat deduction
• No service charges
• Soneri debit card
CURRENT ACCOUNT
Current is a non profit account flexible account with a great convenience

for individuals (in single or joints names), minors (to be operated by the
guardian), charitable institutions, autonomous corporations, limited
companies, firms, associations, educational institutions etc. Current
account may be opened with any amount.
SALIENT FEATURES
• Minimum Rs 10,000 required opening an account.

• Service charges will be deducted.
SONERI SAVING ACCOUNT
Soneri savings account provides an opportunity to small and medium income

group people, with an attractive return.

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SALIENT FEATURES
• Minimum Rs 5,000 required opening an account.

• No minimum charges.
• Zakat will be deducted.
• Up to Rs 100, 00 Expected profit 5% P.A.
• Soneri debit and credit card.
• 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.
• Online Funds Transfer through Cheques to any account across Pakistan
through your bank branch.
• Online Cash Deposit, Withdrawal and Funds Transfer through cheques
from any of our branch across Pakistan.
PROFIT & LOSS SAVINGS ACCOUNT
PLS saving Bank Account is a simple, straight forward saving bank Account
with a great convenience for individuals (in a single or joint names)
minors( to be printed by the guardians) charitable institutions, provident
fund and other funds of benevolent nature local bodies, autonomous
corporations, limited companies, firms associations, educational institutions,
etc. the account may be opened with any amount; however accounts with
balance below Rs.5000- on any day shall be subjected as per their schedule
of charge in force.
The PLS Savings Account entitle Account Holder to avail amazing

facilities such as:
• 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.
• Online Funds Transfer through Cheques to any account across Pakistan
through your bank branch.
• Online Cash Deposit, Withdrawal and Funds Transfer through cheques
from any of our branch across Pakistan.
• Remittance facilities such as Payment Orders, Demand Draft,
Telegraphic Transfers and Free Rupee Traveler’s Cheques through your
bank branch.
• Standing Orders facilities.

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(CRM ID)
In (CRM) fill all the information of customer in their data base. After entering
data, they assigned customer an ID is known as Customer Relationship
Management ID. With the help of this ID their different branches can easily
get information about customer account.
NOTE: But they are reluctant to give us complete information about their
data base.

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CLEARING
In clearing some important terminologies come, these are given below. and
this is second most important part of general banking.
• Banker cheques
• Types of clearing
• IBDA
• OBC
• IBC
• NIFT
• Standing Instruction
• Daily Fund Transferring
BANKER CHEQUES
In this cheque all the expenses of the bank are recorded on daily bases.
Expenses like
• OCS charges
• TCS charges
• Stationary
• Classic water
• Utility Bills
• Generator Diesel
These expenses recorded in banker cheque.
STANDING INSTRUCTION
Standing instructions are given by the customer to the banker.
In this cash will be transfer to second party’s account according to the

instruction given by the customer.
Example
If Customer instructs the bank if his children fee voucher comes, bank has
authority to take these vouchers and pass the transaction, or any utility bills
of customer etc.

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DAILY FUND TRANSFERRING
In daily fund transferring the bank transfer the funds to customer’s main
account where he wants.
Example
Uniliver has an account in different cities, like (Karachi, Multan, Lahore,

Islamabad, and Faisalabad) .The Account’s manager of the company
instruct the bank that banks should transfer their fund to their main account
in Karachi. So HQ-Soneri Bank instruct their branches that they should
transfer the funds of Uniliver to company’s main account in Karachi.
TYPES OF CLEARING
There are three types of clearing.
• Normal clearing
• Special clearing
• Intercity clearing
NORMAL CLEARING
Normal clearing is further divided into two types.
• Internal cheque
• External cheque
Internal Cheques:
Internal cheques are given by the customer of the same branch. The clearing
Department check the status of the account if the status of account would be
OK, then they credited the account of the second party and Debited the
account of their customer.
External Cheques:
External cheque comes from different bank to Soneri bank but from the
same city. Theses cheques are delivered by NIFT. Clearing department check
the status of the account. If the status of the account is ok, then they pass
the transaction. In case of not they return the cheque to NIFT.

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Special Clearing
NIFT delivered these cheques to bank and instruct the bank to transfer the
amount to respected account. Bank is liable to pass the transaction
according to the instruction given by the customer.
Charges of special clearing are Rs.500. These charges charge by NIFT. And
bank debited these charges from customer accounts.
Inter Bank Debit Adjustment (IBDA)
In IBDA always Head Office has right to debit the account of its branches. If
there are some mutual expenses. So Head office sends IDBA note to its
branch that they have debited their account.
For example
• Soneri Multan had sent request for UPS. Soneri Head Quarter has
purchased the UPS on the behalf of Multan branch, and debited the
account of Multan Branch with that amount.
• UAN: Soneri has the UAN all over the country. The bill of UAN comes to
HQ- Karachi. So HQ debited the account of all braches account
according to their usage.
Outward Bills for Collection (OBC)
OBC send by one bank to another bank, where State Bank is not exists.
If a Soneri Bank customer received a cheque by a party of HBL- DG-Khan.

Soneri Bank Multan sends OBC to HBL-(DG-Khan) for clearing.
If HBL (DG-Khan) clear the cheque they send clearing notice to Soneri Bank,
then Soneri bank credited the account of customer.
Inward Bills for Collection (IBC)

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IBC send by one bank to another bank, where State Bank is not exists. If one
bank sends OBC to other bank, for other bank OBC would be IBC.
If Soneri Bank Vehari received a cheque of Askari Bank Abdali Road Multan.
They send the cheque to SBL-Mux, then Multan branch send the cheque in
normal clearing to Askari Commercial
Bank Multan. If ACB clear the cheque, then Soneri Bank send notice to Vehari
Branch for clearing through DAK, and credited the account of customer.
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
NEGOTIABLE INSTRUMENTS
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• Cheque
• Draft on Demand
• Pay orders
• ATM Cards
Draft on Demand
One party is not certain about other party. Then they requested for D.D
instead of cheque. D.D minimizes the risk. D.D is the banker’s instrument;
bank issued the draft after verifying the status of account of party who is
making this note in the favor of other party.
After issuing the draft now it’s banks responsibility to pay the cash to the
party.
NOTE:
• Draft used for outside the city

• Its validity six month.
PAY ORDER
If one party is not certain about other then they requested for pay order
instead of cheque. Pay order minimize the risk. Pay order is the bank’s
instrument; bank issued the pay order after checking the status of account of
party who is making this note in the favor of other party.
After issuing the pay order now its bank responsibility to pay the cash to
party.
• Pay order used within the city

• Its validity for six month.
ATM & CDEDIT Card’s

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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(s).
Request for Cheque Book:

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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.
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.
CASH DEPARTMENT
The following books are maintained in the cash department.

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• 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, its 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.
• Any expense like TADA, and new branches expenses can be adjusted
in this account.

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TRADE DEPARTMENT
• Imports
• Exports

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TRADE
Trade department is further divided into two sections.
• Exports
• Imports
EXPORTS
What is Letter of credit?
Letter of Credit:
Letters of credit are used primarily in international trade transactions of

significant value, for deals between a supplier in one country and a customer
in another. The parties to a letter of credit are usually a beneficiary who is to
receive the money, the issuing bank of whom the applicant is a client, and
the advising bank of whom the beneficiary is a client. Almost all letters of
credit are irrevocable, i.e., cannot be amended or canceled without prior
agreement of the beneficiary, the issuing bank and the confirming bank, if
any.
STEPS INVOLVED IN OPENING L/C
There are following steps are involved in L/C
• After a contract is concluded between buyer and seller, buyer's bank

supplies a letter of credit to seller.
• Seller consigns the goods to a carrier in exchange for a bill of lading.
• Seller provides bill of lading to bank in exchange for payment. Seller's
bank exchanges bill of lading for payment from buyer's bank. Buyer's
bank exchanges bill of lading for payment from buyer.
• Buyer provides bill of lading to carrier and takes delivery of goods.
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

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Revocable Letter of Credit L/C
A revocable letter of credit may be revoked or modified for any reason, at

any time by the issuing bank without notification. It is rarely used in
international trade and not considered satisfactory for the exporters but has
an advantage over that of the importers and the issuing bank. It should be
indicated in LC that the credit is revocable. If there is no such indication the
credit will be deemed as irrevocable.
IRREVOCABLE LETTER OF CREDIT L/C:
In this case it is not possible to revoked or amended a credit without the

agreement of the issuing bank, the confirming bank, and the beneficiary.
Form an exporter’s point of view it is believed to be more beneficial. An
irrevocable letter of credit from the issuing bank insures the beneficiary that
if the required documents are presented and the terms and conditions are
complied with, payment will be made.
Form-E
It describes the details of the goods to be exported, the importer’s
particulars, the amount of foreign currency payments and the details of the
importer as well. Government has provided facility to exporter in taking
Form-E from any bank and can present it to any bank for negotiation.
Exporter proceeds realization certificates, SBP gives rebate to exporter
against exporter after realization, it is paid according to commodity wise and
bill wise. Claim period: 1 year
Following steps are involved in Form-E.
• Firstly bank requested his customer to fill all the documents.
• After completing the documents send to Custom for clearing, and
received custom clearing certificate
• Then send the shipment to port.
• Lastly bank will send all the documents to issuing bank.
NOTE:
• Bank deals only in documents.
• Bank is not responsible for any damage.
• 100% margin required for opening L/C. with passage of if party
developed understanding with bank. Then bank would give some kind
of relaxation in Cash margin.
TYPES OF EXPORT
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Foreign Bill Purchase
"An instant financial solution for exporters with payment on L/C, D/A, basis"
To obtain a production continuity and to maximize every sources, Exporters
should make the best of our “Foreign Bill Purchase” in FBP bank provide
finances to exporter for given time period
FORMAT OF (FBP)
Tax……………………………………………………………1%
Currier charges……………………………………………….1000
Export Development S (EDS)……………………… (FOB X 0.25)
Invoice – Freight = (FOB* 0.25%)
EDS:
National bank collects the EDS tax and transfer to the government.
HEDS…………………………………………………………80
FOREIGN DOCUMENT BILL FOR COLLECTION
(FDBC)
Foreign documents bills for collection. In this type of export, exporter bank
charge commission to its client. In FDBC bank won’t provide any kind of
financing.
Format of (FDBC)
Tax………………………………………………………………1%
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Commission………………………………………………….. 0.1%
Currier charges………………………………………………...1000
HEDS…………………………………………………………….80
EDS…………………………………...........Invoice – Fright= FOB
FOB*0.25%................................................................FOB – 0.25%
HEDS:
HEDS stands for Handling of export Development Supply.
TYPES OF EXPORTS FINANCES
There are two types of export finances.
• Pre-shipment Finances
• Post- Shipment Finances
PRE-SHIPMENT FINANCES
Pre Shipment Finance is issued by a financial institution when the seller

wants the payment of the goods before shipment. The main objective behind
preshipment finance or pre export finance is to enable exporter to:
• Procure raw materials.
• Carry out manufacturing process.
• Provide a secure warehouse for goods and raw materials.
• Process and pack the goods.
• Ship the goods to the buyers.
• Meet other financial cost of the business.
The pre-shipment finance is further divided in to two types.

• FAPC
• PSL

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FINANCE AGAINST PACKING CREDIT (FAPC)
When customer facing financial problem, while delivering the goods to

importer. Like packing expense and shipment charges.
Then exporter requested his bank for (FAPC). Bank credited the account of
his customer. When his bank received cash from importer’s bank. Exporter
bank will deducted the FAPC and the rest of the amount will be credited to
his account.
PRE- SHIPMENT LOAN (PSL)
Authorized dealers are permitted to extend Preshipment Credit in Foreign

Currency (PCFC) with an objective of making the credit available to the
exporters at internationally competitive price.
Following advantages and important points of (PSL)
•This is considered as an added advantage under which credit is

provided in foreign currency in order to facilitate the purchase of raw
material after fulfilling the basic export orders.
• The rate of interest on PCFC is linked to London Interbank Offered Rate
(LIBOR). According to guidelines, the final cost of exporter must not
exceed 0.75% over 6 month LIBOR, excluding the tax.
The exporter has freedom to avail PCFC in convertible currencies like USD,
Pound, Sterling, Euro, Yen etc. However, the risk associated with the cross
currency truncation is that of the exporter.
POST- SHIPMENT FINANCES
Post Shipment Finance is a kind of loan provided by a financial institution

(Soneri Bank) to an exporter or seller against a shipment that has already
been made. This type of export finance is granted from the date of extending
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the credit after shipment of the goods to the realization date of the exporter
proceeds. Exporters don’t wait for the importer to deposit the funds.
TYPES OF POST SHIPMENT FINANCES
• Foreign Bill Purchase (FBP)

• Finance Against Foreign Bill (FAFB)
• Foreign Bill Discounted (FBD)
FOREIGN BILL PURCHASE (FBP)
After shipment exporter present all shipping document to authorized dealer

(bank) and get finance. The bank will credited the account of his customer.
When payment will received by importer’s bank, bank will adjust the account
of customer and credit the bank account.
FINANCE AGAINST FOREIGN BILL
Bills can only be sent on collection basis, if the bills drawn under LC have
some discrepancies. Sometimes exporter requests the bill to be sent on the
collection basis, anticipating the strengthening of foreign currency. Banks
may allow advance against these collection bills to an exporter with a
concessional rates of interest depending upon the transit period. The transit
period is from the date of acceptance of the export documents at the banks
branch for collection and not from the date of advance.
IMPORTS
Imports start with Letter of credit.
Information in L/C
• The name of the local company, which is importing the goods.

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• The name of foreign company, which is exporting the goods.
• The details of goods to be transacted including the amount, quantity
mode of packing etc.
• The total amount of L/C
• The numbers of the days fro which L/C is valid.
• The name of the bank, who is regulating all these dealing.
• The name of the carrier which will be used for the shipment of the
goods t the importers.
• The bill of shipment number.
Parties Involved In a Letter Of Credit
There are normally six parties involved in L/C.
• Buyer (known as importer or consignee)

• Buyer’s bank (known as opening or paying bank)
• Seller’s bank ( known as advising bank or negotiating bank)
• Carrier (known as shipping company)
• Insurance company.
OPENING OF L/C
For opening of L/C following documents are required by the bank.
• Application or bond
• Order or invoice or indent.
• Insurance
• Liability endorsement of customer
• Irrevocable documentary credit(LC)
An L.C is issued after opening of letter of credit it is sent to exporter’s bank.
LC OPENING CHARGES:
When an LC is opened, the bank collect certain charges from importer, these
are;
• Commission
• postage charges
• telex charges
SWIFT
It is network among all banks. No other institute can get involved in it. The
swift system has been introduce speedy service in the area of home
remittances. The system has built-in features of computerized test keys,
which eliminate the manual application of test that often causes delay in the

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payments of home remittances. Swift is operational at Habib bank of
Pakistan wit a universal access number SONEPKKAMTN.
All Soneri branches and overseas correspondents are drawing remittances

through SWIFT.
DISCREPANCIES
When issuing bank received document from advising bank. If bank found any
discrepancies bank will inform his customer. If importer claim any
objection, then issuing bank inform advising bank about discrepancies.
TYPES OF IMPORT FINANCES
• Finance Against Imported Merchandise (FIM)

• Inward foreign Bills.
FINANCE AGAINST IMPORTED MERCHANDISE (FIM)
When customer facing financial problem, while lading the goods from port.
Then importer requested his bank for (FIM). Bank credited the account of
his customer. But pledge the merchandise as security.
Bank charge the following charges to his customer.
• Commission
• FED.
• Markup
Bank charged commission 1%. Markup on the basis of number of days he
used that amount

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CREDITS DEPARTMENT
• Consumer Finance
• Corporate Finance
• Agriculture Finance

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CRIDITS
Soneri bank has divided their finance department into three sections,
Finance officer told me about the types of finances. He said there are
different types of financing. But Soneri has dealing in two types.
There are two types of finances which are given below.
• Consumer finance
• Corporate finance
• Small And Medium Enterprises
• Agriculture Credits
CONSUMER FINANCE
They give finance to their loyal customer. Who have good transaction
record, and where the risk chances are less. Their mission is “we have
more time for you”
The consumer finance has different types of products. There products

are given below.
• Soneri car finance

• Soneri ghar finance
• Soneri personal finance
• Soneri generator finance
SONERI CAR FINANCE
Purpose of Finance
Purchase of brand new: Sanctioned finance must be utilized for brand new
cars. No finance will be available for used or reconditioned cars.
• Un-registered cars for private use.

• Un-registered light commercial vehicles for private use.
Eligible Borrowers:
Salaried person and the person who has well past record with bank can avail
this opportunity. In case of salaried person he must be a permanent
employee with minimum two years continued employment with present job
employer. And employer must be financial institution, MNC’s and Public
limited company.
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Eligible borrowers are:
• Salaried Persons
• Self Employed Professionals
• Business Persons
Financing Amount
• For Cars upto 2000 CC: Rs. 1.0 Million For Cars
• Exceeding 2000 CC: Rs. 2.0 Million
Down Payment
• On finance upto Rs. 1.0 M: Minimum 15% of the vehicle price.

• On finance over Rs. 1.0 M: Minimum 20% of the vehicle price.
Tenure
Maximum repayment period is 5 years
Mark-up Rate **
1 year KIBOR + 3% p.a., to be revised on each anniversary of finance.
SONERI GHAR FINANCE
Purpose
• Purchase / Construction of Property for self-occupancy.

• Extension / Renovation on self occupied residential Property.
Product Categories
• Purchase of pre-constructed Residential Property.

• Construction of residential property on self owned plot of land.
• Extension / Renovation on self owned & occupied property.
• Balance Transfer Facility (BTF) for any of the above finance.
•
Eligible Borrowers

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Financing Amount
• Purchase Rs.Up to 10 Million

• Construction Rs.Up to 10 Million
• Extension / Renovation Rs.Up to 03 Million
• Balance Transfer Facility Rs.Up to 10 Million
Tenure
•
Purchase Up to 20 Years
•
Construction Up to 20 Years
•
Extension / Renovation Up to 07 Years
•
Balance Transfer Facility Up to 20 Years
(Calculated from the date of original finance)
Mark-up Rates**
• 1 Year KIBOR + 2% p.a., to be revised on each anniversary of finance.

Processing Fee
• Rs. 2500/- or 0.50% of the finance amount whichever is higher

(refundable where case is not approved).
GENERATOR FINANCING
Purpose of Financing
For purchase of brand new Electric Power Generator to be installed at

residential / commercial / industrial property owned by the borrower.
Eligible Borrowers
Financing Amount
• Minimum Amount of Finance: Rs. 0.1 Million

• Maximum Amount of Finance: upto Rs. 1.0 Million
Down Payment
A minimum of 20% of price of the Generator (as per Quotation / Invoice)

being financed shall be paid by the borrower

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Tenure
Maximum repayment period is 3 years
Mark-up Rate **
1 Year KIBOR + 3% p.a., to be revised on each anniversary of finance.
Processing Fee
Rs. 2000/- per approved application.
Service Length
Minimum 1 year of confirmed service with present employer in case of

Salaried Person
CORPORATE FINANCE

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Mr. Junaid in dealing in corporate finance, and he is also Incharge of
credits department. Soneri Bank Multan is dealing with big clients like.
• Hussain textile
• Fatima fabric
• Noreen Fatima
MAIN PRODUCTS
The main corporate finance products are,
• General financing facilities

• Import Financing Facility
• Exports financing facility.
GENERAL FINANCING FACILITY
General financing is further divided into four types, these are given below.
• Temporary Running Finance

• Running Finance
• Cash Finance
• Term Finance
• Demand Finance
Temporary Finance:
Customer who maintains satisfactorily conducted account may at their

specific request. Bank accommodated to temporarily their current account to
meet unexpected and urgent financing requirement.
Running Finance
Running finance is nothing but the finance offerings by financial institutions

against mortgages. It works under the working capital finance. Specifically,
the running finance is a credit facility established for a specific time limit at
variable interest rates.
Cash Finance
Cash finance is a term that means that the goods are pledged or released to
the borrower against the cash payments only. While the running finance is
offered by the financial companies against the mortgages. It usually comes
under the heading of the working capital finance.

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Import financing Facility
Import financing is further divided into two types, these are given below.
• Inward foreign Bills
• Finance against Imported Merchandise (FIM)
Export financing Facility

Export financing is further divided into two types, these are given below.
• Pre-shipment Loan (PSL)
• Post-shipment Loan
• Finance against Packing Credit(FAPC)
SMALL AND MEDIUM ENTERPRISES
(SMEs)
Soneri Bank Limited, arguably at the forefront of commercial excellence, has

strengthened its product profile by introducing the following cost effective
innovative tailor made small and medium enterprises (SMEs) financing
options on flexible terms to its most discerning customers need. The Market
segment for this business is primarily SMEs and the bank stands committed
to contribute in the process of national development with an explicit focus in
providing quality finance solutions.
MAIN PRODUCTS OF SMES FINANCING
There are three types or products that they offered to their customers.
• SONERI SARMAYA SCHEME

• SONERI AASAN SCHEME
• SONERI TEJARAT SCHEME
WHO can avail this facility
• Individuals
• Proprietorship
• Partnerships
• Limited Companies
Salient Features of SBL’s SMEs Products

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Competitive Rates, Tailor made need based products, quick processing
time, Cash flow-based Lending and Flexible repayment periods.
AGRICULTURE FINANCE
Following agriculture finance facilities are provided by Soneri Bank Limited at

its selected branches.
PRODUCTION LOANS:
Production loans are offered to meet the input and other working capital
requirements for farming, orchards and nursery, tunnel farming, storage of
raw material, transportation marketing grading and packing etc., by farmers.
Note: Financing facilities for all other purposes as detailed in SBP’s list of
eligible items for Agricultural Credit are also available.
DEVELOPMENT LOAN
Development loans are offered for the purchase of tractors, trolley,

thrashers, ploughs, cultivators, laser levelers, combine harvesters,
processing machinery, transport for delivery of dairy, poultry, fisheries.
Installation of tube-wells, turbine, land leveling, soil improvement, land
reclamation, seed processing units and for godowns, silos and cold storages.
LIVE STOCK
To meet the fixed cost and working capital requirements for cattle farming,
cattle feed units, dairy farming, poultry farming; poultry feed units and fish
farming.
REPAYMENT PERIOD
Principal amount of Finance plus mark-up thereon is repayable depending
upon nature of business ranging from one to five years. Revolving facility is
also available under specific terms.
MARK-UP RATE:
• All Type of Agriculture Loans upto Rs. 100,000/-

6M Kibor + 2%
• Production Loan under Revolving Credit Scheme: 6M Kibor + 3%

Distribution of Credit:
SBP has advised diversification of credit as under.

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• 70% of credit should go to small land holders.
• 20% of credit should go to economic land holders.
• 10% of credit should go to above economic land holders.
• Finance can be provided to all categories of farmers owner/tenants),
who are genuine growers and are able to provide proper
securities/sureties etc.
• Indicative per acre limit of different crops is as under
1. Cotton 21,000
2. Wheat 16,000
3. Sugar Cane 16,000
4. Paddy 19000
5. Other Crops As per actual

cost
TYPES OF AGRICULTURE CREDITS
There are two types of agriculture credits
• Production finance
• Development Finance
DEVLOPMENT FINANCE
Development finance for farm and non farm credit are divided into three
categories.
1. Short Term 2. Medium Term
3. Long Term
Short Term:
Short term finance usually allowed for working capital requirement.
Medium Term:
Medium term is needed for purchase of livestock and implements etc.
Long Term:

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Long term finance are needed for purchase of tractors, agricultural
machinery etc.
Poultry, dairy, fish farms are lucrative investment areas.
SECURITIES/COLLATERALS
Mainly Agriculture Finance is provided against following securities.
• Creation of bank charge on agri land through pass book system.

• Lien on deposit.
• Pledge of gold/gold ornaments, silver/silver ornaments on
weight/valuation certificate from banks approved Goldsmith.
DUTIES ACCOMPLISHMENT

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During my six week internship, I fulfilled my assigned duties with integrity. I fulfilled all
my duties on time. At the accomplishment of each duty, my work was appraised by the
Branch manager. The duties that I have accomplished during the internship period are
given below.
• Opening new account of individuals 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 trade department I have checked the L/C.
• In credits, I checked the procedure of loan sanction.
Well management allowed as working on those areas where the chances of errors are
less. During my internship, I’ve found that in banking sector concentration and
consistency is of utmost importance. Your little mistake can create big problem.
APPLICATION OF CLASS ROOM LEARING IN ORGANIZATION

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ANALYSIS
• Financial Analysis
• SWOT Analysis
• PEST

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FINANCIAL ANALYSIS
RATIO ANALYSIS
Ratio analysis is an important and age-old technique of financial
analysis. Ratios are important and helpful in the reference that:
• These simplify the comprehension of financial statement and tell

the whole story of changes in the financial conditions of the
business.
• These provide data for inter-firm comparison. The ratios highlight
the factors associated with successful and unsuccessful firms,
also reveal strong and weak firms.
• These help in planning and forecasting these can assist
management in its basic functions of forecasting, planning,
coordination and control.
• These help in investment decision in case of investor and lending
decision in case of Bankers etc.
However the ratios are only indicator, they cannot be taken as final
regarding good or bad financial position of the business other things
have also to be taken.

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Gross Spread Ratio
= Net markup income
Gross Mark UP income
2008 2007 2006 2005
37.64% 30.88% 31.93% 35.28%
40.00%
35.00%
30.00%
25.00%
20.00%
GS Ratio
15.00%
10.00%
5.00%
0.00%
2008 2007 2006 2005
• Gross spread ratio shows the relationship between, Gross interest income
and interest income earned, according to financial analyst this ratio should be
higher, in the last five years no clear trend is showing, from 2005 to 2007 it
decreased, but in 2008 Gross spread ratio increased.

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CURRENT RATIO
= Current Assets
Current Liabilities
2008 2007 2006 2007
2.53 3.7 2.8 2.72
4
3.5
3
2.5
2
Current Ratio
1.5
1
0.5
0
2008 2007 2006 2005
• Current ratio show the ability of any firm to pay its short term obligation,
Thumb rule says current ratio should be 2 or near the 2. , In Soneri bank
current ratio was always more than 2 in the last five years which is quite
satisfactory.

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Working Capital
= current asset – current liability
2008 16,704,790
2007 23,862,664
2006 20,998,670
2005 17,735,785
25,000,000
20,000,000
15,000,000
working
10,000,000 Capital
5,000,000
0
2008 2007 2006 2005
• Working capital is the difference between the current assets and

current liabilities, higher the working capital better an organization can
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meet its day to day expenses, unfortunately in our case of Soneri bank
working capital is showing a decreasing trend which is not a good sign.
Fixed Asset Turnover = Sales
Fixed Assets
2008 2007 2006 2005
0.14 0.14 0.14 0.16
0.16
0.155
0.15
0.145 fixed Asset

Turnover
0.14
0.135
0.13
2008 2007 2006 2005
• Fixed Asset turnover shows

how much revenue has been generated against the fixed assets in the last
time fixed asset turnover was same which was o.14 although it was low yet
there was no increasing or decreasing trend

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Total Asset Turnover = sales/Total Assets
2008 2007 2006 2005
0.09 0.081 0.078 0.058
0.09
0.08
0.07
0.06
0.05
0.04 TAT
0.03
0.02
0.01
0
2008 2007 2006 2005
• Total asset turn over shows the

revenue generated against the total asset. Although the ratio of TAT is low
but fortunately there was an increasing trend in the last five years
Debt Ratio= Total Liabilities
Total Asset
93.5 2008 2007 2006 2005

93
92.5
92 91.20 91.40 92.06 93.09
91.5 Debt Ratio
91
90.5
90
2008 2007 2006 2005
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• Debt ratio shows, the % of debt in total assets, if this ratio is lower means
debts are lesser and interest expenses will also low and the profit will be
higher, But in our case of Soneri bank Debt ratio is in higher 90’s which mean
debts are very
Debt/Equity Ratio = Total Liabilities
Shareholder Equity
2008 2007 2006 2005
17.95 17.07 20.90 35.65
40
35
30
25
20
Debt to equity
15
10
5
• Debt to Equity shows the
0
2008 2007 2006 2005 structure of capital, what %
each component has in the
total capital.
2008 2007 2006 2005 Times interest

Earned Ratio =
1.49 2.14 2.39 2.75 EBIT/Interest
expenses
3 • TIE shows how many times is the

2.5 earning before interest and taxes
2
when compared with interest
1.5
TIE Ratio expenses, for financial stability this
1
0.5
ratio should be higher which means
0
2008 2007 2006 2005
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interest are lower, in the last five years TIE ratio is having a decreasing
trend which is not a good sign.
2008 2007 2006 2005 Net Profit Margin=

Net Income
12.18% 23.56% 26.17% 38.03%
Total
interest income
40.00%
35.00%
30.00% • NP margin of Soneri bank has been
25.00%
20.00%
decreasing in the last five years
NP Ratio
15.00% which is an alarming sign for
10.00%
5.00%
administration, when we see in the
0.00%
2008 2007 2006 2005
last five years NP ratio has
persistently decreased.
2008 2007 2006 2005
1.17% 1.92% 2.04% 2.2%
Return on Total Assets (ROA) = Net Income
Total Assets

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2.50%
2.00%
1.50%
1.00% ROA Ratio
0.50%
0.00%
2008 2007 2006 2005
Return on Equity (ROE)
= Net Income
Stock Holder’s Equity
2008 2007 2006 2005
13.40% 22.33% 25.81% 31.89%
35.00%
30.00%
25.00%
20.00%
15.00% ROE
10.00%
5.00%
0.00%
2008 2007 2006 2005

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• Return on asset and return on Equities shows what you have earned
when it speaks out in terms of total asset and total equities, as I is
discussed above profits have been decreasing since last five years so
as the return on assets and return on equities also has decreased
which is not very attractive for investors
Earning Per Sale = Earning available for common stock
No of Shares of Common Stock Outstanding.
2008 2007 2006 2005
1.70 2.43 3.29 3.08
3.5
3
2.5 • Earning per share shows what
2
EPS
you have earned in your each
1.5
1 share pf investment, likewise
0.5 other profitability ratios which
0
2008 2007 2006 2005
have decreasing trend in the
last five years, earning per
share also having a decreasing
trend and not very attractive for
investors.

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2008 2007 2006 2005
0.77 0.66 0.66 0.67
Advances to Total Deposits = Advances
Deposits
0.78
0.76
0.74
0.72
0.7
Advances to
0.68
Deposit
0.66
0.64
0.62
0.6
2008 2007 2006 2005
2008 2007 2006 2005
1.54% 2.45% 1.85% 1.933%
Return on Deposits = Net Income
Total deposits
2.50%
2.00%
1.50%
ROD
1.00%
0.50%
0.00%
2008 2007 2006 2005
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• Advances and deposits are prime components of financial statements
of banking industry organizations because mainly there trading is
commonly depend on these items so these both ratios are very
important
PEST
(Political Environmental Social &
Technological)
Political:
Political factors influencing the bank performance. We have seen, 10 yrs
back the banking sector in Pakistan was flourishing, and the reason was
political stability. Now the banking sector is declining not able to meet the
required requirements by SBP. The reason is political instability. Particularly,
agriculture people get benefits due to relations with politicians. Such people
get loan and job on references.
Economical:
Population of Pakistan is very rich as compared to other countries. So

economical factors are good for banking sectors. Soneri Bank always looking
forward to cater their customer by its attractive offers like Basic Banking A/C
for salaried persons. SBL has mission that “we have more tome for you”
Social Factors
Social and cultural factors are affecting the bank. Majority of the population
is un-educated and unaware of the benefits of banking sectors. They have
low saving and want to keep money with them.
Technological factors:
Technologically, SBL is strong and this element strengthens to SBL. Online

banking advances and any transactions bank has speedy network. The
reason of their speedy network they have limited operations. Their first
priority is customer satisfaction. For this they have established IT-
Department in every branch to cater network problems.
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SWOT ANALYSIS
There are following strength weakness opportunity and threats for SBL.
STRENGTH:
•
Since, inception of SBL, it has moved rapidly in expanding branch
network and deposit bases along with profitable advances and
increasing the products and services. Prior in Multan bank has only two
branches, two months back, the SBL management has decided to
expand its business in Multan by opening new branches. Bosan Road
branch starts its operation by the end of last month.
• SBL is serving particular certain community like (Agha Khani’s). They
are considering being their loyal customer. Agha Khan Hospital, Agha
Khan Laborites and Agha Khan Medical College, All they have an
account with SBL. Agha Khan is a Big name.
• The Pakistan Credit rating Agency Limited (PACRA) has maintained
banks credit rating. SBL has been awarded an “AA-” for long term and
“A1+” for the short term and “A+” for the Term Finance. Certificates
reflecting bank’s well maintained risk profile with preserved sound
asset quality.
• In order to maintain an effective communication of information
regarding the need of valued client bank has designed its website to
be user friendly as possible,
• SBL collaborate with different cellular companies to provide bank
statement on their customer’scell phone.
• The leading companies of Multan like Hussain Textile Fatima Mills
Noreen Fatima have an account with SBL. These companies are trading
through SBL.
• Loyal workforce and satisfied Customers.
WEAKNESS:
• As per bank policy, advertising and publicity is not extensively

emphasized. Through advertisement customers could be kept abreast
with the product and services.
• The main focus of SBL is major cities of Pakistan. It’s direly needed to
extend its network and people should be educated about the
functioning of bank.
• Poor employee development and promotion. During the training the
trainer couldn’t gave them proper information. So the trainee faces
problem.
____________________________________________________________________________________
_
__________________________________________________________________________________7
1
Defensive approach in lending.
•
No branches of Soneri bank are in any other country. So the bank has to
•
incur additional cost for correspondent banking.
OPPORTUNITY:
• The life cycle of an organization is comprised of threats as well as

opportunities. If we say, today the rates of challenges are too high but
simultaneously the rate of opportunity is also too high. It is obligatory
to try to make progress with consistency as well as to adapt changes
with the need of time, in order to cope up with both conditions.
• In the prevailing scenario, SBL should penetrate further and capture
various corporate customer as well as retail customer by expanding
their network.
• In addition to the excellent routine banking, it has earned a good name
by offering special products like Soneri car finance, ghar finance and
personal finance. So the penetration of these products could enhance
the market share.
• SBL has launched another division know as Islamic Banking. This new
aspect will also attract a large number of people, who don’t want to
deal with interest bearing bank.
• If SBL focusing on advertisement it would be good for organization,
because promotions makes people know about the products of SBL.
• Management should also open new branches is rural areas to capture
market share.
• SBL can enjoy handsome return its funding base by investing in capital
markets in the foreign countries.
• If management of SBL giving facility of night banking to its customer. I
think it would also attract the other bank customers.
THREATS
• While doing business, threats are part of business. Especially, in this

era, most of the financial institutions are working as Private Limited
Company and facing or have a fear of threat from their competitor as
well as new entrants. In order to maintain as well as enhance the
market share , SBL always try to introduce new schemes /packages
like Soneri generator finance etc
• In our country, the rate of inflation is increasing along with
unemployment. So due to increase in price of the products, the saving
of the people is decreasing with passage of time. So it is threat for
banking sector. In future the deposits of the bank will decreases.
• The number of banks in Pakistan increasing with passage of time.
Foreign bank like to open their branches in Pakistan. So it would be
threat for SBL.

____________________________________________________________________________________
_
__________________________________________________________________________________7
2
•SBL has also threat with different bank who are offering the same
product like
o Home finance
o Car Finance
o Self Finance
o Education Loan
So management may face problem.
• Uncertainty in political and economical environment.

• Mergers and Acquisitions are other threat to bank.
• Impact of Privatization.
CONCLUSION OF SWOT ANALYSIS

Since SBL has decent strengths and opportunities in the market, its market
share is increasing and it is expanding its branches rapidly. So I concluded
that SBL is adopting and implementing on Growth Strategy.

____________________________________________________________________________________
_
__________________________________________________________________________________7
3
SUGGESTIONS
If I was the manager of SBL. There are following suggestions for SBL.
• The life cycle of an organization is comprised of threats as well as

opportunities. If we say, today the rates of challenges are too high but
simultaneously the rate of opportunity is also too high. It is obligatory
to try to make progress with consistency as well as to adapt changes
with the need of time, in order to cope up with both conditions.
• In the prevailing scenario, SBL should penetrate further and capture
various corporate customer as well as retail customer by expanding
their network.
• In addition to the excellent routine banking, it has earned a good name
by offering special products like Soneri car finance, ghar finance and
personal finance. So the penetration of these products could enhance
the market share.
• SBL has launched another division know as Islamic Banking. This new
aspect will also attract a large number of people, who don’t want to
deal with interest bearing bank.
• If SBL focusing on advertisement it would be good for organization,
because promotions makes people know about the products of SBL.
• Management should also open new branches is rural areas to capture
market share.
• SBL can enjoy handsome return its funding base by investing in capital
markets in the foreign countries.
• If management of SBL giving facility of night banking to its customer. I
think it would also attract the other bank customers.
• Well at the same time SBL has some threats with different product line
of their competitors. Now what they have to do? They just reduce their
mark up rate as compare to their competitors. By doing this they may
capture big market share. In long run it would also beneficial for the
bank.
• They must focus on their own Marketing team, rather than outsourcing,
their own Marketing team launches new ads.
• In Multan I have seen that the huge customer traffic in trading area
(Corporate section) rather than retail customer. The management
should launch new offers for their old customer as well as dissatisfied
customers of other banks.
• Management should give their customer good mark up rate.

____________________________________________________________________________________
_
__________________________________________________________________________________7
4
CONCLUSION
Soneri bank Limited is engaged in banking service, and operate more than
118 braches including four Islamic Banking Branches in Pakistan. The bank
operates in four segment corporate finance, trading and sales, retail banking
and commercial banking.
Within the span of 18 years, SBL has become the one of the largest private
bank in the country. There are about 112 correspondent banks in 31
countries of the world. Its capital and reserves level is increasing day-by-
day. Their main objective is to provide professional, personalized and
efficient service to the clients at all the times. SBL is always looking forward
to provide new and better services than their competitors.
I have seen they are now expanding their branches, when I have joined SBL
there were only two branches in Multan but now in Multan three branches
are operational. They have told me that two more branches will be
operational by the end of this year. So SBL is adopting and implementing on
Growth Strategy. These branches are located in commercial areas. . They
have clearly defined values and norms and they strictly practice their norms
and values.
To develop Soneri bank Limited into an aggressive and dynamic financial

institution having the capabilities to provide personalized service to the
customers with cutting edge technology and a wide range of products, and
during the process to ensure maximum return on assets with ultimate goal of
serving the economy and society.
______________________________________________________
APPENDIX
____________________________________________________________________________________
_
__________________________________________________________________________________7
5
Soneri bank annual report for the year 2008 is available at the following link. Due to
the size and requirement it will not appended with this report.
Direct Link to Download.
http://www.soneribank.com/soneribank/html/annualreport2008.pdf
State Bank of Pakistan Prudential Regulations for Commercial Bank can be

download as follows.
http://www.sbp.org.pk/publications/prudential/prs-corporate.pdf
The Pakistan Credit Rating Agency Limited (PACRA) banking rating methodology can
be downloaded as follows.
http://www.pacra.com/rmethodology/bank%20rating%20methodology.pdf
The Pakistan Credit Rating Agency Limited (PACRA) bank loan and recovery rating
can be downloaded as follows.
http://www.pacra.com/rmethodology/blr%20methodology.pdf
And all relative information is downloaded as follows.
www.soneribank.com.pk

____________________________________________________________________________________
_

Soneri Bank Internship Report-2009

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__________________________________________________________________________________1

Soneri Bank Limited (Internship Report, 2009)

Soneri Bank Limited (Internship Report, 2009)

In this context, respectable Chairman Mr. Shoukat Malik has assigned me to do

Soneri Bank Limited (Internship Report, 2009)

A ll prays goes to Allah almighty. To write an acknowledgement after the

I am grateful to our honorable Chairman Mr. Shoukat Malik who assigned me

M. Ikram (Branch Manager)

Zaffar Iqbal (Operations Manager/AVP)

Soneri Bank Limited (Internship Report, 2009)

In six week internship program, I have worked in different departments like

To open an account the customer has to meet Operations Managers with an

Soneri Bank Limited (Internship Report, 2009)

• Soneri personal finance

At the end of this report, on the basis of my observations during internship,

Soneri Bank Limited (Internship Report, 2009)

September 28, 1991

Mr. Alauddin Feerasta

87, Shahrah-e-Quaid-e- Azam,

P.O. Box No# 49, Lahore

Swift: SONEPKKALHR email. main.lahore@soneribank.com

5th Floor, Al-Rahim Tower,

I.I. Chundrigar Road, P.O.Box 5856, Karachi

Swift: SONEPKAXXX e-mail: info@soneribank.com

SONERI BANK LIMITED (MULTAN)

Main branch: Mall plaza, Quaid-e-Azam Road, Multan Cantt., Pakistan.

Tel: 061-4512884, 4519927 UAN# 111-567-890

Swift: SONEPKKAMTN email: main.multan@soneribank.com

Main branches in the different cities of the

“Nature of the Organization”

Soneri Bank Limited (Internship Report, 2009)

• Refers to banking in which individual customers use local branches of

• Banking institutions execute transactions directly with consumers,

• Services offered include;

o Savings and checking accounts

o Issuance of debit/credit cards

o Certificates of deposit (CDs

• Corporate Banking offers tailor made products / solutions as required

o Funded facilities, ranging from short to medium and long

o Trade related financing.

o All sorts of non-funded facilities / services which include

o Customized products / solutions.

• SBL covers cash management, foreign exchange, business-to-business

Soneri Bank Limited (Internship Report, 2009)

• Full range of corporate and retail banking services with special

• Highly professional and efficient treasury operations and a world wide

• A wide range of attractive saving schemes to suit all segments of

• Future products include unique Investment plans under Banc

Soneri Bank Limited (Internship Report, 2009)

Soneri Bank Limited (Internship Report, 2009)

Soneri Bank Limited (Internship Report, 2009)

“Stronger banking relationships, increasing customer confidence”

Soneri Bank Limited (Internship Report, 2009)

To developed Soneri bank Limited into an aggressive and dynamic financial

“We have more time for you”

Soneri Bank Limited (Internship Report, 2009)

Mr. Alauddin Feerasta

Chief Executive Officer

Mr. Safarali K .Lakhani

Mr. Noor Feerasta

Mr. Inam Elahi

Mr. S. Ali Zafar

Mr. Abdul Hayee

Mr. Shahid Anwar (NIT Nominee)