Internship Report on Soneri Bank 2012
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Transcript of Internship Report on Soneri Bank 2012
INTERNSHIP REPORT
ON
SONERI BANK LIMITED
SUBMITTED BY:
WASIM RIAZ
R.NO 7871
M.COM (FINANCE)
SESSION 2010-2012
COLLEGE OF COMMERCE
GOVERNMENT COLLEGE UNIVERSITY
FAISALABAD
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 My Teachers 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.
Preface
Getting practical knowledge in one of the major aims of M.COM program.
Department of Commerce Govt.College University Faisalabad, 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 teacher Mr. Raheel mumtaz 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 Limited.
Acknowledgement
All 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 teacher Mr. Raheel mumtaz 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 Jaranwala management.
Rana Muhammad Raffi (Branch Manager)
Muhammad Asghar (Operations Manager)
Needless to say that all shortcoming of this report will remain my responsibility.
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 216+ 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.
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.
TABLE OF CONTENTS
Dedication I
Preface II
Acknowledgement III
Executive Summary
IV
Chapter 01 Overview of Soneri Bank Limited
1.1 Bank Introduction
1.2 History
1.3 Vision Statement
1.4 Mission Statement
1.5 Organization Nature
1.6 Distinctive Characteristic
1.7 Board of Directors
Chapter 02 Organizational structure/ hierarchy
2.1 Management 2.2 Organizational Structure
2.3 Hierarchy 2.4 Company description Chapter 03 Products Information
3.1 products
3.1.1 Saving account
3.1.2 Term deposit
3.1.3 Current account
3.1.4 Basic banking account
3.1.5 Ikhtiar account
3.2 Services
3.2.1 Online banking
3.2.2 SMS Alert
3.2.3 SME FINENCE
3.2.4 Agriculture finance
3.2.5 Lockers
3.2.6 Consumer finance
3.2.7 Electronic banking
3.2.8 Internet banking
3.2.9 Cheque free banking
3.2.10 Telephone banking
3.2.11 Utility bills services
3.3 Departments of SBL
3.3.1 General Banking
3.3.1.1 Account Opening
3.3.2 Clearing
3.3.3 Remittances 3.3.4 Cash Department
Chapter 04 Activities I Performed As an Internee
4.1 Field Of Activities 4.2 Work Done By Students
4.3 Dilemmas Faced By Organization
Chapter 05 SWOT Analysis
5.1 Strengths
5.2 Weaknesses
5.3 Opportunities
5.4 Threats
5.5 Conclusion of SWOT Analysis
Chapter 06 Financial Analysis
6.1 overview of financial analysis
6.2 Horizontal Analysis
6.3 Vertical Analysis
6.4 Ratio Analysis
Chapter 07 Conclusion
7.1 Conclusion
Chapter 08 Suggestions and Recommendation
8.1 Suggestions
8.2 Recommendation
8.3 References
8.4 Appendixes
CHAPTER NO.1
1.1 BANK INTRODUCTION
Soneri bank Limited is engaged in banking service, and operate more than 216+
branches including 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 the bank’s 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.
Picture shows (seated from left) Mr.Amin Feerasta, Senior EVP, Soneri Bank Limited
(SBL),Mr.Humayun Bashir, CGM, IBM, Mr. Atif Bajwa, President & CEO, SBL,
Mr.Muhammad Haider Devjiane, EVP & CIO ,SBL , and Mr. Qamar Wahab, Senior
EVP , SBL, along with Mr.Muhammad Ovais, CEO, Selling Business Systems
(Standing second from left) with respective teams
1.2 History of SONERI BANK LIMITED
Directors from international financial institution to open the market and involve the
private sector in the economy of the country got the leading investors from private
sector and one of them was the “Rupali Group”. This group belongs to “Feerasta
Family”. This group started its business before 1971 partition of East Pakistan and
come to West Pakistan after 1971.
SONERI BANK LTD was incorporated on 28th September 1991, the first branch in
Lahore was opened in 16th April 1992 and second branch in Karachi came into
business on 9th May 1992. The head office is in Lahore and the central office is in
Karachi.
The authorized and subscription capital is Rs.300 million Out of which Rs.150 was
million was distributed by Feerasta Family and Rs.150 million worth share was offer to
general public.
There was over subscription of 28 times more than the number of shares offer for
subscription and the over subscription NRPs was 3 times more. The bank currently
operates 216 branches, spread all over Pakistan including the Northern Areas of the
country. The bank’s expansion policy is based on the principle of maintaining a balance
between the urban and rural areas. This created its own challenges and opportunities,
and forced them to evolve an outward-looking strategy in terms of their market
emphasis.
As a result, Soneri Bank developed a geographically diversified assets base instead of
a concentrated and heavy reliance on business in the major commercial centers of
Karachi and Lahore, where most other banks have their operational Head Offices.
Pleasant and sophisticated atmosphere has been provided in the branches which are
fully air conditioned and computerized.
The bank after eight months of functioning published its first Balance Sheet as on 31st
December, 1992 responding with great satisfaction to the confidence reposed in it by
its shareholders.
Among the new banks, Soneri is a front runner and continuous to make rapid strides in
respect of deposits. The bank is now in the process of consolidation with ‘care and
caution’ and steady growth on sound footings with best possible services for its
customers as the guiding principles.
The Rupali Group has an investment of more than Rs.10 billion in industrial sector
other than “SONERI BANK LTD”…
1.3 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”
1.4 MISSION STATEMENT
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.
“We have more time for you”
1.5 Nature of the Organization
Soneri Bank Limited offers a range of business for their customers;
1.5.1 Retail Banking
1.5.2 Corporate Banking
1.5.1 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
1.5.2 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.
1.6 Distinctive Characteristic
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.
1.7 BOARD OF DIRECTORS
1.7.1 BOARD OF DIRECTORS
S.No. Name of the Director Designation
01. Mr. Alauddin Feerasta Chairman
02. Mr. Mohammad Aftab Manzoor President & CEO
03. Mr. Nooruddin Feerasta Director
04. Mr. Inam Elahi Director
05. Mr. Muhmmad Rashid Zahir Director
06. Mr. S. Ali Zafar Director
07. Mr. Manzoor Ahmed Director
(NIT Nominee)
08. Mr. Shahid Anwar Director
(NIT Nominee)
1.7.2 SUB COMMITTEES OF THE BOARD
1.7.2.1 Audit Committee of Board
S.No. Audit Committee of Board Designation
01. Mr.Nooruddin Feerasta Chairman
02. Mr. Inam Elahi Member
03. Mr. Muhammad Rashid Zahir Member
04. Mr. Shahid Anwar Member
05. Mr. Muhammad Altaf Butt Secretary
1.7.2.2 Credit Committee of Board
S.No. Credit Committee of Board Designation
01. Mr. Alauddin Feerasta Chairman
02. Mr. NooruddinFeerasta Member
03. Mr. Mohammad Aftab Manzoor Member
04. Mr. Inam Elahi Member
05. Mr. Muhammad Altaf Butt Secretary
1.7.2.3 Risk Management Committee of Board
S.No. Risk Management Committee of Board Designation
01. Mr. Inam Elahi Chairman
02. Mr. Mohammad Aftab Manzoor Member
03. Mr. Shahid Anwar Member
04. Mr. Javed H. Siddiqi Secretary
1.7.2.4 Human Resource Committee of Board
S.No. Human Resource Committee of Board Designation
01. Mr. Manzoor Ahmed Chairman
02. Mr. Mohammad Aftab Manzoor Member
03. Mr. Inam Elahi Member
04. Mr. Shahid Anwar Secretary
05. Ms. Anita Lalani
Chapter 02
2.1 THE MANAGEMENT
2.1.1 MANAGEMENT TEAM
S. No Management Team Designation
01. Mr.Mohammad Aftab Manzoor President & Chief Executive
02. Mr. Amin A. Feerasta Head of Establishment
03. Mr. Nemat Ali Head – International Division
04. Mr. Abdul Aleem Qureshi Head of Retail Banking
05. Mr. Shahid Abdullah Country Treasurer
06. Mr. Zafar Abrar Naqvi Head Credits
07. Mr. Iqbal Zaidi Head Compliance & Controls Group
08. Mr. Bilal Asghar Head of Corporate & Investment Banking
09. Mr. Sheikh Muhammad Moeen Chief Financial Officer
10. Ms. Anita Lalani Head Human Resources
11. Mr. Muhammad HaiderDevjianie Chief Information Officer
2.1.2 MANAGEMENT COMMITTEE
S. No. Management Committee Designation
01. Mr. Mohammad Aftab Manzoor Chairman
02. Mr. Amin A. Feerasta Member
03. Mr. Nemat Ali Member
04. Mr. Abdul Aleem Qureshi Member
05. Mr. Shahid Abdullah Member
06. Mr. Zafar Abrar Naqvi Member
07. Mr. IqbalZaidi Member
08. Mr. Bilal Asghar Member
09. Mr. Sheikh Muhammad Moeen Member
10. Ms. Anita Lalani Member
11. Mr. Muhammad HaiderDevjianie Member
12. Abbas Hatim Secretary
2.1.3 EXECUTIVE CREDIT COMMITTEE
S. No. Executive Credit Committee Designation
01. Mr. Mohammad AftabManzoor Chairman
02. Mr. Amin A. Feerasta Member
03. Mr. Nemat Ali Member
04. Mr. ZafarAbrarNaqvi Member/ Secretary
05. Mr. IqbalZaidi Member
06. Mr. Sheikh Muhammad Moeen Member
2.1.4 ASSETS AND LIABILITY COMMITTEE
S. No. Assets and Liability Committee Designation
01. Mr. Mohammad Aftab Manzoor Chairman
02. Mr. Amin A. Feerasta Member
03. Mr. Abdul Aleem Qureshi Member
04. Mr. Shahid Abdullah Member/ Secretary
05. Mr. Zafar Abrar Naqvi Member
06. Mr. Bilal Asghar Member
07. Mr. Sheikh Muhammad Moeen Member
08. Mr. Javaid Hussain Siddiqui Member
2.1.5 INVESTMENT COMMITTEE
S. No. Investment Committee Designation
01. Mr. Mohammad Aftab Manzoor Chairman
02. Mr. Amin A. Feerasta Member
03. Mr. Shahid Abdullah Member
04. Mr. Bilal Asghar Member
05. Mr. Sheikh Muhammad Moeen Member
06. Mr. Muhammad Imran Khan Secretary
2.1.6 I.T. STEERING COMMITTEE
S. No. I.T. Steering Committee Designation
01. Mr. Mohammad Aftab Manzoor Chairman
02. Mr. Amin A. Feerasta Member
03. Mr. Abdul Aleem Qureshi Member
04. Mr. Sheikh Muhammad Moeen Member
05. Mr. Muhammad Haider Devjianie Member
06. Mr. Siraj BaquerJaffri Member/ Secretary
2.1.7 CREDIT RISK MANAGEMENT COMMITTEE
S. No. Credit Risk Management Committee Designation
01. Mr. Mohammad Aftab Manzoor Chairman
02. Mr. Amin A. Feerasta Member
03. Mr. ZafarAbrarNaqvi Member
04. Mr. Sheikh Muhammad Moeen Member
05. Mr. Javaid Hussain Siddiqui Member/ Secretary
2.1.8 MARKET RISK MANAGEMENT COMMITTEE
S. No. Market Risk Management Committee Designation
01. Mr. Mohammad Aftab Manzoor Chairman
02. Mr. Shahid Abdullah Member
03. Mr. Sheikh Muhammad Moeen Member
04. Mr. Javaid Hussain Siddiqui Member/ Secretary
05. Mr. Affan Shamim Member
2.1.9 CHIEF FINANCIAL OFFICER
Mr. Sheikh Muhammed Moeen
2.1.10 COMPANY SECRETARY
Mr. Muhammad Altaf Butt
2.2 Organizational Chart
2.2.1 Designation Vice:
BOARD OF DIRECTORS
CHAIRMAN
DIRECTOR
CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
GENERAL MANAGER GENERAL MANAGER
SOUTH NORTH
EXECUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT
VICE PRESIDENT
ASSISTANT VICE PRESIDENT
GRADE I OFFICER
GRADE 2 OFFICERS
GRADE 3 OFFICERS
JUNIOR OFFICER
NON-CLERICAL STAFF
EXECUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT
VICE PRESIDENT ASSISTANT VICE PRESIDENT
GRADE I OFFICER
GRADE 2 OFFICERS
GRADE 3 OFFICERS
JUNIOR OFFICER
NON-CLERICAL STAFF
2.2.2 Departmental Chart:
MAIN
BRANCH
GENERAL ADVANCES
BANKING
INTERNATIONAL BANKING
DEPARTMENT
DEPARTMENT
DEPARTMENT
CLEARNING
DEPOSIT
ACCOUNTS
REMITTANCE CONSUMER
CORPORATE
DEPARTM-
DEPARTM DEPARTME-
DEPARTMENT FINANCE SECTOR
ENT
-ENT
NT
DEPARTMENT
ADVANCES
GOVT BILLS
SECURITIES
DEPARTMENT
DEPARTMENT
IMPORT FOREIGN
EXPORT
CURRENCY
DEPARTMENT
DEPARTMENT
DEPARTMENT
2.3 Hierarchy
2.3.1 Top Level Management
Chief Executive Officer
Executive Vice president
Senior Vice president
Vice president
Group Vice President
Assistant Vice President
Manager
Deputy Manager
Assistant Manager
Officer
Deputy Officer
Assistant
2.3.2 Middle and Lower Management
DIRECTORS
AUDITORS SECRETARY
SEVP
EVP
VP
AVP
GRADE 1
GRADE 2
GRADE 3
2.3.3 Branch Hierarchy
Chief/Branch Manager
Manager Operation
Managers
Deputy Managers
Assistant Managers
Officers
Deputy Officers
Assistant Officers
2.4 Company Description
Soneri Bank Limited provides a range of banking products and services in Pakistan.
The company operates through four segments: Corporate Finance, Trading and Sales,
Retail Banking, and Commercial Banking. The Corporate Finance segment provides
syndicate financing; and services in connection with mergers and acquisition,
underwriting, privatization, securitization, research, debts, equity, syndication, IPO, and
secondary private placements. The Trading and Sales segment includes fixed income,
equity, foreign exchanges, commodities, credit, funding, lending and repos, brokerage
debt, and prime brokerage services. The Retail Banking segment offers retail lending
and deposits, banking services, trust and estates, private lending and deposits, trust
and estates investment advice, merchant/commercial/corporate cards, and private
labels and retail services. The Commercial Banking segment includes project finance,
real estate, export finance, trade finance, and factoring, leasing, lending, guarantees,
bills of exchange, and deposits services. In addition, it provides Islamic banking and
electronic banking services. The company offers its products and services through a
network of 216+ branches and 243+ automated teller machines. Soneri Bank Limited
was incorporated in 1991 and is based in Lahore, Pakistan.
Chapter no.3
3.1 Products
3.1.1 Saving Account
3.1.1.1 PLS Saving
PLS Savings Bank Account is a simple, straight forward Savings Bank Account with a
great convenience for individuals (in single or joint names) minors (to be operated by
the guardian) charitable institutions, provident fund and other funds of benevolent
nature local bodies, autonomous corporations, limited companies, firms associations,
educational institutions, etc.
The account may be opened with any amount; however accounts with average monthly
balance below Rs.5000- on any day shall be subject to Service Charges as per our
Schedule of Charges in force..
The PLS Savings Account entitle Account Holder to avail amazing facilities such
as:
1.Chequing Account facility with no limit on a number of transactions.
2.Free Cash Deposit and Withdrawal facilities through your bank branch
3. Free Clearing facility to deposit cheques of other banks within the city
4. Online Funds Transfer through Cheques to any account across Pakistan through
your bank branch
5. Online Cash Deposit, Withdrawal and Funds Transfer through cheques from any of
our branch across Pakistan
6. Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers
and Free Rupee Traveler’s Cheque through your bank branch
7. Standing Orders facilities
8. Safe Deposit Locker at designated branches
9. Statement of Account on six monthly basis
10. All purchases and cash withdrawals made with the Soneri Banking Cards is
deducted directly from your bank account
11. Free Cash Withdrawal on ATMs owned by Soneri Bank
12. Govt. Withholding Tax apply on all cash withdrawals and profit credited into account
13. Zakat is deductable from Account however Zakat exemption forms are
accepted…………
SPECIAL NOTICE DEPOSITS
Period Rate of Return
7 days 6.00% p.a
30 days 8.00% p.a
3.1.1.2 Soneri Savings
Soneri Savings Account is a flexible and fast growing cumulative profit account with a
great convenience for individuals (in single or joint names), minors (to be operated by
the guardian), charitable institutions, provident fund and other funds of benevolent
nature local bodies, autonomous corporations, limited companies, firms associations,
educational institutions etc. The rate of Profit in this savings scheme increases as your
balance increases without demanding and negotiating with us. The account may be
opened with any amount.
Soneri Savings Bank Account entitles Account Holder to avail amazing facilities
such as:
1. Chequing Account facility with no limit on a number of transactions
2. Free Cash Deposit and Withdrawal facilities through your bank branch
3. Free Clearing facility to deposit cheques of other banks within the city
4. Online Funds Transfer through Cheques to any account across Pakistan through
your bank branch
5. Online Cash Deposit, Withdrawal and Funds Transfer through cheques from any of
our branch across Pakistan
6. Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers
and Free Rupee Traveler’s Cheque through your bank branch
7. Standing Orders facilities
8. Safe Deposit Locker at designated branches
9. Statement of Account on six monthly basis
10. All purchases and cash withdrawals made with the Soneri Visa Debit Cards is
deducted directly from your bank account
11. Free Cash Withdrawal on ATMs owned by Soneri Bank
12 .Govt. Withholding Tax apply on all cash withdrawals and profit credited into account
13. Zakat is deductable from Account however Zakat exemption forms are accepted
Provisional Rates
ANNUALISED RATES OF EXPECTED PROFIT FOR DIFFERENT TYPES OF PLS
DEPOSITS
Effective: July 01, 2012.
Period: July- December, 2012.
1. Operational facility like Current Accounts without any restriction on amount and
number of Cheques.
2. Profit paid on monthly basis on daily products.
Balance Rate of Return p.a
Up to Rs. 100,000 6.00 %
Over Rs. 100,000 but up to Rs.1.0 Million 6.50 %
Over Rs. 1.0 Million but up to Rs. 10.0 Million 7.50 %
Over Rs. 10.0 Million but up to Rs. 50.0 Million 8.50 %
Over Rs. 50.0 Million 9.00%
3.1.2 Term Deposit
3.1.2.1 Term Deposit Account
Term deposit is offered by Soneri Bank to Individuals (in single or joint names), Minors
(to be operated by the guardian), Charitable Institutions, Provident Fund and other
funds of benevolent nature local bodies, Autonomous Corporations, Limited Companies,
Firms, Associations, Educational Institutions etc who have the intention of retaining their
savings for a fixed period thereby earning a higher rate of profit. The Term Deposit
allows you to save a fixed amount in Pak Rupee for a set period ranging from 1 month
to 60 months at a provisional and attractive profit rate. The depositor has the option to
reinvest the deposit automatically with or without profit.
Upon maturity, your deposit is automatically renewed for the same tenor at the
prevailing profit rate unless you instruct otherwise.
Pre-matured encashment is allowed without any penalty however you will receive profit
less than originally contracted.
Govt. Withholding Tax apply on all cash withdrawals over Rs. 25,000/- and profit
credited into account
Zakat is deductable from Account however Zakat exemption forms are accepted
Provisional Rates
ANNUALISED RATES OF EXPECTED PROFIT FOR DIFFERENT TYPES OF PLS
DEPOSITS.
Effective: July 01, 2012
Period: July- December, 2012
Term Deposits (11/11 Scheme) Minimum Deposit Rs 25,000/= Deposits Held as on
01-05-2011 Onwards.
Tenor
Monthly
Intervals
Quarterly
Intervals
Six Monthly
Intervals
Yearly
Intervals
At Maturity
1 Month
8.00% --- --- --- 8.00%
3 month 8.44 % --- --- --- 8.44 %
6 month
8.84 % 8.90 % --- --- 9.00 %
1 year
10.25 % 10.34 % 10.48 % --- 10.75 %
2 years 9.98 % 10.07 % 10.19 % 10.45 % 11.00 %
3 years
9.73 % 9.81 % 9.93 % 10.18 % 11.25 %
3.1.2.2 Diamond Deposit Certificate
Soneri Diamond Deposit Certificates provide investment opportunities to small and
medium income group investors, Charitable / Benevolent Funds, Trusts, Societies,
Associations and Clubs with an attractive return.
1.Certificates are issued for fixed periods of 1, 2 and 3 years.
2.Annualized Rates of expected Profit: from 10.50 % p.a. to 10.75 % p.a.
3.Profit paid at monthly intervals calculated from date of deposit.
4.Minimum Investment Rs. 25,000/-
5.Financing facility upto 90 % of Deposit available.
Provisional Rates
ANNUALISED RATES OF EXPECTED PROFIT FOR DIFFERENT TYPES OF PLS
DEPOSITS.
Effective: July 01, 2012
Period: July - December, 2012
Term %age
1 Year 10.50%p.a
2 Year 10.60%p.a
3 Year 10.75%p.a
3.1.3 Current Account
Current is a nonprofit account, flexible account with a great convenience for individuals
(in single or joint names), minors (to be operated by the guardian), charitable
institutions, autonomous corporations, limited companies, firms, associations,
educational institutions, etc.
Current account may be opened with any amount; however accounts with average
monthly balance below Rs.10, 000- on any day shall be subject to Service Charges as
per our Schedule of Charges in force..
Current Account entitles account holder to avail amazing facilities such as:
1.Chequing Account facility with no limit on a number of transactions
2.Free Cash Deposit and Withdrawal facilities through your bank branch
3.Free Clearing facility to deposit cheques of other banks within the city
4.Online Funds Transfer through Cheques to any account across Pakistan through your
bank branch
5.Online Cash Deposit, Withdrawal and Funds Transfer through cheques from any of
our branch across Pakistan
6.Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers
7.RupeeTraveler’sCheque through your bank branch
8.Import, Export and other business transactions
9.Standing Orders facilities
10.Safe Deposit Locker at designated branches
11.Statement of Account on six monthly basis
12.All purchases and cash withdrawals made with the Soneri Banking Cards is
deducted directly from your bank account
13.Free Cash Withdrawal on ATMs owned by Soneri Bank
14.Facility of Running Finance can be requested for specific purpose against collaterals
and nominal markup rates being charged on quarterly basis
15.Govt. Withholding Tax apply on all cash withdrawals
16.All purchases and cash withdrawals made with the Soneri Visa Debit Cards is
deducted directly from your bank account..
3.1.4 Basic Banking Account
Soneri Bank Limited introduces Basic Banking Account Scheme with effect from July
01, 2006. Salient feature of the Scheme are:
1.Basic Banking Accounts may be opened in the Pak Rupees by individuals including
minors under guardianship.
2.The accounts may be opened by initial deposit of any amount.
3.No minimum balance requirement is applicable.
4.Basic Banking Account is non-profit bearing account.
5.4 withdrawals from a Basic Banking Account through cheques in one calander month
are free of service charges. Additional withdrawals through cheques in a calander of
month shall be subject to service charge @ Rs. 25/- per additional cheque.
6.Soneri Banking Cards for the use of Bank's Electronic Banking Service are issued
without charges for one time issuance of the cards.
7.unrestricted number of withdrawals from the account through ATMs are permissible
subject to applicable per day withdrawal limit for amounts in force.
8.Cash withdrawals from Soneri Bank's ATMs are free of Service Charge. Use of
another bank's ATMs shall be subject to Service Charges applicable.
9.Basic Banking Account holders may also use Soneri Bank's other Electronic Banking
Services subject to completion of applicable formalities which shall be subject to
applicable Service Charges.
10.Account have -NIL- balances for six consecutive months shall be closed without prior
intimation
11.Statement of Accounts are provided once a calander year at the year end.
12.ndividuals who already maintain PLS Saving Accounts/ Current Accounts with Soneri
Bank's branches may convert their accounts into Basic Banking Account. Please
contact any Soneri Bank branch for further details.
13.Govt. Withholding Tax apply on all cash withdrawals
3.1.5 Ikhtiar Current Account
Ikhtiar current is a nonprofit account, flexible account with a great convenience and
Multiple FREE Services for individuals (in single or joint names), minors (to be operated
by the guardian), charitable institutions, autonomous corporations, limited companies,
firms, associations, educational institutions, etc.
Ikhtiar current account may be opened with minimum amount of Rs. 50,000/-. To avail
free facilities maintenance of balance on or above Rs. 50,000/- is mandatory.
Ikhtiar Current Account entitles account holder to avail amazing facilities such
as:
1. Chequing Account facility with no limit on a number of transactions
2. Free Cash Deposit and Withdrawal facilities through any bank branch
3. Free Clearing facility to deposit cheques of other banks within the city
4. Free issuance of Pay orders
5. Online Funds Transfer through Cheques to any account across Pakistan through
your bank branch
6. Online Cash Deposit, Withdrawal and Funds Transfer through cheques from any of
our branch across Pakistan
7. Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers
8. RupeeTraveler’sCheque through your bank branch
9.Import, Export and other business transactions
10.Standing Orders facilities
11.Safe Deposit Locker at designated branches
12.Statement of Account on six monthly basis
14.No one-time and annual fee on VISA Classic Debit Card
15.All purchases and cash withdrawals made with the VISA Classic Debit is deducted
directly from your bank account
16.Free Cash Withdrawal on ATMs owned by Soneri Bank
17.Free SMS Alerts on cash deposits, withdrawals, funds transfers, inward cheque
clearing returns and Purchase transactions etc.
18.Facility of Running Finance can be requested for specific purpose against collaterals
and nominal markup rates being charged on quarterly basis
19.Govt. Withholding Tax applies on certain transactions
3.2 Services
3.2.1 Online Banking
On-Line Banking Services are available for all chequing account holder of our Soneri all
branches.
Services
Cash Payments of cheques drawn on any of our all branches.
Cash Deposits in to customers account maintained at any of our all branches.
Government Taxes/Duties
Cash Cheques or Cheques Applicable Government Taxes/duties
Under Collection if payable recoverable as per rules to third parties
Cash withdrawals
Per day Cash Withdrawals limit is restricted to Rs. 200,000.
Cash Cheques tendered by other than the account holders in person are subject to levy
of Govt. Taxes as per rules.
Cash Deposits
Deposits made by third parties into accounts of customers maintained at all branches
are subject to recovery of applicable with-holding tax, as per rules from the depositors.
Cheques under Collection
Proceed of Cheques drawn on our all branches are immediately credited to depositors
account subject to fulfillment of other conditions governing payment of cheques.
Govt. Taxes as per rules are recoverable on outstation collection cheques.
3.2.2 SMS Alert
Soneri Bank Limited now introduces to its ATM/ VISA Debit Card holders SMS Alert
Service, the best feature for warning about fraudulent transactions conducted against
Cards. Now you shall receive SMS Alerts on your mobile number registered with the
bank of all purchase transactions immediately after it has been made. Remember, an
early intimation can save you a lot of trouble later, and also protect your hard-earned
money.
It is very easy to sign up for our SMS Alert Service. Just fill the form available in our all
Branches or call us at the following numbers for your SMS Alert Activation:
111-SONERI (766-374) 0800-00500
3.2.3 SME Finance
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.
SONERI SARMAYA SCHEME
SONERI AASAN SCHEME
SONERI TEJARAT SCHEME
3.2.4 Agriculture Financing
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 Loans;
Development loans are offered for the purchase of tractors, trolley, thrashers, ploughs,
cultivators, laser levellers, combine harvesters, processing machinery, transport for
delivery of dairy, poultry, fisheries. Installation of tube-wells, turbine, land levelling, soil
improvement, land reclamation, seed processing units and for godowns, silos and cold
storages.
Livestock;
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 uptoRs. 100,000/- 6M Kibor + 2%
Production Loan under Revolving Credit Scheme 6M Kibor + 3%
Working Capital for Live Stock i.e.(Dairy, Fisheries and Poultry etc) 6M Kibor + 3.5%
Development Loan (All kinds) 6M Kibor + 4%
3.2.5 Lockers
Specially designed lockers of various sizes to meet the requirements of applicants are
available at our designated branches. The lockers may be operated during the banking
hours of the branch.
ELIGBILITY
Only Account holders of our branches are eligible to apply for renting the Safe Deposit
Lockers.
3.2.6 Consumer Finance
3.2.6.1 Soneri Car Finance
Purpose of Finance;
Un-registered cars for private use.
Un-registered light commercial vehicles for private use.
Eligible Borrowers;
Salaried Persons
Self Employed Professionals
Business Persons
Financing Amount;
Upto Rs.1.5 Million
Down Payment;
Minimum 20% of the vehicle price.
Tenure;
Maximum repayment period is 5 years.
Mark-up Rate ;
1 year KIBOR + 4.5% p.a., to be revised on each anniversary of finance.
Processing Fee;
Rs. 3500/- per approved application
Service Length;
Minimum 2 years of confirmed service with present employer in case of Salaried Person
Age;
At the time of Application for finance, applicant’s age must not be more than;
55 years in case of Salaried Person.
60 years in case of Self Employed / Business Person.
Debt Burden;
Total monthly repayment installments not to exceed 40% of the net income (taking into
account other financing facilities availed from other Banks/DFIs). .
Pre-Payment Penalty;
2% pre-payment penalty on outstanding principal amount of finance being pre-paid. .
Late Payment Charges;
Rs. 500/- per installment per month.
Insurance of Cars / Motor Vehicles;
Cars / Motor Vehicles financed are to be comprehensively insured with any of the
Insurance Companies listed on the approved panel of Soneri Bank.
Insurance Premium is payable up-front for each year during the life of the loan.
Charges;
Documentation Charges (at actual).
Income Estimation Charges (if applicable).
Subject to fulfillment of eligibility criteria.
** Subject to change from time to time.
3.2.6.2 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;
Salaried Persons
Self Employed Professionals
Business Persons
Financing Amount;
Purchase: UptoRs. 10 Million
Construction: UptoRs. 10 Million
Extension / Renovation: UptoRs. 03 Million
Balance Transfer Facility: UptoRs. 10 Million
Tenure;
Purchase: Upto 20 Years
Construction: Upto 20 Years
Extension / Renovation: Upto 07 Years
Balance Transfer Facility: Upto 20 Years
(Calculated from the date of original finance)
Mark-up Rates;
1 Year KIBOR + 4% p.a., to be revised on each anniversary of finance.
Processing Fee;
0.5% of Finance Amount, Min. Rs. of 2,500/=
Service Length;
Minimum 5 years of confirmed service with present employer in case of salaried person.
Age;
At the time of maturity of the Finance, applicant's age must not be more than;
60 years in case of Salaried person.
65 years in case of self Employed / Business person.
Debt Burden;
Total monthly repayment installments not to exceed 40% of the net income (taking into
account other financing facilities availed from other banks/DFIs).
Moratorium;
A moratorium of 12 months is allowed in case of finance for Construction
Pre-Payment Charges;
2% of the outstanding amount being prepaid
Late Payment Charges;
Rs. 500/- per Installment per month.
Insurance;
Mortgage Protection Insurance cover through Bank’s designated Insurance
Company.
Insurance premium on the insurance cover payable upfront each year
Charges;
Documentation Charges (at actual).
Valuation Charges (at actual)
Legal Opinion Charges (at actual)
Income Estimation Charges (if applicable)
* Subject to fulfillment of our eligibility criteria.
** Subject to change from time to time.
3.2.6.3 Soneri Personal Finance (Currently only offered in Northern Areas)
Purpose of Finance;
To meet medical expenses for self or dependants of applicants.
To meet educational expenses of applicant’s children.
To meet travel expenses for self and family members.
To meet renovation expenses of self owned residential property.
To meet advance rent payment for rented residential property occupied by the
applicants.
To meet domestic needs.
Financing Amount;
Upto Rs.0.5 Million
Eligible Borrowers;
Salaried Persons
Tenure;
Maximum repayment period of 5 years
Mark-up Rate;
1 Year KIBOR + 8% p.a., to be revised on each anniversary of finance
Processing Fee;
Rs. 2,500/=
Service Length;
Minimum 2 years of confirmed service with present employer
Age;
At the time of maturity of the finance, applicant’s age must not be more than 60 years
Debt Burden;
Total monthly repayment installments not to exceed 40% of the net take home salary
(taking into account other financing facilities availed from other Banks/DFIs).
Pre-Payment Charges;
5% of the outstanding amount being prepaid
Late Payment Charges;
Rs. 500/- per installment per month.
Personal Loan Insurance;
Amount of Finance insured against life of borrowers, free of cost.
Charges;
Documentation Charges (at actual).
* Subject to fulfillment of eligibility criteria.
**Subject to change from time to time.
*** total amount availed from other Banks / DFIs should not exceed the total clean finance
exposure.
3.2.7 Electronic Banking
3.2.7.1 ATM / VISA Debit Card
SONERI Debit Card brings to you the ultimate facility of spending and making
payments. You are privileged to avail the unmatched opportunities and benefits of the
CLASSIC Card and GOLD Card. With the ‘Buy Now – Pay Now’ facility,
you pay directly from your bank account. Use your SONERI Debit Card
wherever you are and whenever you want.
Safer than Carrying Cash
Pay dining, shopping, traveling, hotel and other bills at over 24 million outlets
displaying sign locally and internationally
Worldwide cash withdrawal facility at over 1 million ATMs displaying the sign
Ease of Cash withdrawal on 1 LINK and ATM networks across Pakistan
Credit facility available for GOLD Card Holders
Accessibility of multiple accounts from a single card
Makes money management easier
24/7 Automated Telephone Banking
24/7 Call Centre facility
Cheque-free banking
Funds Transfer facility between participating 1LINK member banks
Attractive rewards on spending
Soneri Gold & Classic
Debit Card
SCHEDULE OF CHARGES
VISA GOLD Debit Card
Description Charges
Joining Fee NIL
Annual Charges Rs. 550 Per Card
Supplementary Card Charges Rs. 500 Per Card
Card Replacement Charges Rs. 500 Per Card
PIN Re-issuance Charges NIL
VISA CLASSIC Debit Card
Description Charges
Joining Fee NIL
Annual Charges Rs. 250 Per Card
Supplementry Card Charges Rs. 150 Per Card
Card Replacement Charges Rs. 300 Per Card
PIN Re-issuance Charges NIL
ATM Cash Withdrawal
Description Charges
Local (at Soneri ATM) Charges NIL
Local (at 1-LINK/M.Net ATMs)
Charges Rs. 15 Per Card
International Transactions (ATMs
Displaying PLUS Logo)
Rs. 300Per Transaction or 3% of
transaction amount whichever is higher
Purchase: (Point of Sale Terminal)
Description Charges
Local NIL
International Rs. 300 Per Transaction or2.5% of transaction amount
whichever is higher
ATM Funds Transfer
Description Charges
Within any Soneri Bank Branch Rs. 25 Per Transaction
With any participating 1-Link Member Bank Rs. 50 Per Transaction
Other Charges
Description Charges
*Arbitration fee on disputed transaction Rupee equivalent of US $ 500
*Document Retrieval Charges Local Rs. 250 per retrieval
*Document Retrieval Charges
International
Rupee equivalent of US $ 10 per
retrieval
3.2.8 Internet Banking
You can Pay Utility Bills, Transfer Funds, and access your Account information
Anywhere Round-the-clock through SoneriDirect Internet Banking.
Features :
View your balance of account, latest transactions using Today’s Transaction
menu
View your Statement of Account. You can view them online, download them in
printable format
You can pay the utility Bills for you and your dear ones
Transfer Funds 24/7 from SoneriDirect
Receive SMS ALERT on your Financial Transactions done from SoneriDirect.
(For SMS ALERT Registration, Please call at 0800-00500 / 111-SONERI
(766374) or contact your Bank Branch)
Fund Transfer :
Transfer funds to any Soneri bank account
Transfer funds to any 1-LINK participating member bank’s account
Bill Payment :
Telecom/Mobile : Ufone, Warid, Telenor (Post Paid, prepaid)
Electricity : KESC, LESCO, GEPCO, HESCO.
GAS : SSGC,SNGPL.
History :
View history of your Soneri Internet Banking activities using History Menu (for the
requests sent using Internet Banking Only) It includes:
Funds Transfer History
Bill Payment History
Login History
Upcoming Attractions :
Cheque Book Request
Physical Account Statement Request
3.2.9 Cheque Free Banking
No Cheque book
300,000/ Per day
Time Saving
No Signature required
No charges Can be used at POS Terminal deployed branches
At present, our cardholders (ATM/Debit Cards and Soneri Banking Cards) may
withdraw cash through use of their cards at ATM of 1-Link Switch and M.Net Switch
member banks. However due to constraints on Cash Dispensing capacity of ATMs,
Soneri Banking Card holders may draw only up to Rs. 25000/- per day from ATMs.
Recognizing the fact that our customers do not always carry with them the cheque
books issued to them for operation on their account and that they may need to withdraw
cash in excess of the per day withdrawal limit for ATMs, Soneri Bank has introduced
CHEQUE FREE BANKING whereby our cards holders may withdraw cash up to a
maximum of Rs.300, 000/- per day through use of their cards at Point of Sale Terminals
installed at our designated branches.
Eligibility:
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.
Service Availability:
CHEQUE FREE BANKING is available at branches equipped with point of sale (POS)
Terminals offering the following services during the counter hours on real time basis:-
Balance Enquiry:
The POS Terminal may also be used for Balance Enquiry of accounts linked to the card.
Cash Withdrawals:
CHEQUE FREE BANKING shall be made available through POS Terminal installed at
dedicated cash counters at branches manned by a cashier.
3.2.10 Telephone Banking
You can conduct your banking from any where and at anytime you want.
Dial 111 SONERI (111-766374) to reach our Customer Services Call Center.
With Telephone Banking, You can access all the information you need without making a
trip to the branch. This means no Parking to find, no traffic to flight and no standing in
line. At home, at work or on the go, all you need is a touch-tone telephone, your card
number and the T-PIN to access your bank account, 24 hours a day, 7 days a week.
ELIGBILITY:
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.
AVAILABLE SERVICES:
Balance Enquiry
Today's Transaction by Voice
Instant statement of Account through Fax
Request for Computer Generated Statement of Account
Request for cheque book
Stop mark of lost Soneri Banking Card
Change your T-PIN
Latest Forex Rates
Product Information
Interactive voice prompt in English or Urdu language will guide you through the process.
Soneri Banking Card holders will have access to Telephone Banking basic facilities at
no additional cost.
Service Provided:
Request of checkbook
Lost Card Report
Balance Inquiry
Request of detailed statement By Fax
T-Pin Change
Request of detailed Statement
3.2.11 Utility Bills Payment
Soneri Bank VISA Debit Card holders can pay their bills using Soneri Bank Internet
Banking, Call Centre and ATM Services.
No need to stand in a bank queue.
No need to carry cash.
Easy way of paying bills for you and your dear ones.
Bills once paid are automatically registered in our system.
24 hours a day, 7 days a week service from any where across Pakistan or
worldwide.
Available Services : Service is currently available for payment of:
KESC, LESCO, GEPCO, HESCO.
SNGPL, SSGC.
Warid, Ufone, Telenor (Prepaid and Postpaid).
Easy Steps for Utility Bills Payments through Internet Banking:
Log on to www.soneribankonline.com.pk
or simply click on the SoneriDirect logo available our website
Enter User name and Password for SoneriDirect
Click on Bill Payment option
Select Billing Type Telephone/Electricity/Gas
Select the Company enter Consumer Number or Mobile number
Enter four digit F-PIN (generate your FPIN before any transaction for the security
purpose)
Confirm your transaction
Confirmation SMS and Email would be sent on your registered* Mobile Number
and Email Address
Easy Steps for Utility Bills Payments through Call Centre:
Call 0800-00500 or 111-766-374 from the same number available in our records
Enter your Soneri Visa Debit Card number. and T-PIN for the validation purpose
Press 0 to talk to the Phone Banking Officer
Ask Phone Banking officer to pay your desired Utility Bills
Confirmation SMS would be sent on your registered* Mobile Number
Easy Steps for Utility Bills Payments through ATMs:
Insert your Soneri Visa Debit Card in any Soneri ATM
Enter your ATM PIN code
Select Smart Option Utility Bill Payment
Select Utility Company Enter Consumer Number or Mobile Number
Confirm your transaction
Get a transaction receipt and Confirmation SMS on your registered* Mobile
Number
For the SMS Alerts Registration, simply call 0800-00500 or 111-766-374 from
your given number or you may contact your respective branch…
3.3 Departments of SBL
3.3.1 General Banking
3.3.1.1 ACCOUNT OPENING
Account opening are following form:
For single, sole proprietorship & joint personal
For partnership, limited Company, trust, clubs etc.
Necessary Requirements for Opening an Account for Single, Sole Proprietorship & Joint
Personal.
Copy of CNIC.
There must be account in the same branch of introducer.
KYC.
For sole proprietorship NTN certificate is required.
World Check.
Sole proprietorship submits the letter head.
Note:
After receiving verification from NADRA the people have opened the account.
Necessary Document for Partnership, Limited Company, Trust, Clubs:
All partners submit attested photocopy of CNIC.
Attested photocopy of partnership deed duly signed by all partners.
Firm’s registration attested photocopy should be submitted to registrar of firm.
Submit the authority letter in inventive in good deed of the person allowed to
maneuver on the account of the firm.
KYC is required.
NTN certificate is also required.
World Check.
3.3.2 Clearing
The second most significant of general banking is clearing. In clearing some vital
terminologies come which are
Banker cheques
Types of clearing
Standing Instruction
Daily Fund Transferring
IBDA
OBC
IBC
1) Banker Cheques
In the bankers cheque all the expenses of the bank are record on daily bases. Such as:
OCS charges
TCS charges
Stationary
standard water
Utility Bills
Generator Diesel
2) Types of Clearing
Main clearing type is:
Normal clearing
Special clearing
Intercity clearing
Normal Clearing
There are two type of normal clearing:
Internal cheque
External cheque
Internal Cheques:
It is that type of normal clearing in which are specified by the customer of the equivalent
branch. The clearing department test out the position of the account if the position of
account would be ok, then they credited the account of the next party and debited the
account of their customer.
External Cheques:
The cheque comes from the other bank in the same city is called external cheque.
These cheques are delivering by NIFT. Clearing department check the position of the
account holders. If the of the position account is ok, then they pass the transaction. In
case of not they return the cheque to NIFT.
Special Clearing:
NIFT given these cheques to bank and inform the bank to transfer the amount to
specific account. Bank is answerable to pass the transaction according to the instruction
given by the customer. Bank Charges on special clearing is Rs.600. The bank debits
these charges from customer account.
3) Standing Instruction
In this the customer gives the standing instructions to the banker. According to the
instruction given by the customer cash will be transfer to next part’s account.
Example:
If customers instruct the bank if his utility bills come, bank has right to obtain these bill
sand pass the transaction, or any others vouchers of customer etc.
4) Daily Fund Transferring
This is the account in which the bank transfers the funds to customer’s main account
where account holder wants.
Example:
Batta has an account in many cities like (Peshawar, Header Abad, Lahore, Rawalpindi
,and Karachi) .The Account’s manager of the company instruct the bank that banks
should transfer their fund to their main account in Rawalpindi. So HQ-Soneri Bank
instruct their branches that they should transfer the funds of Batta to company’s main
account in Rawalpindi.
5) IBDA (Bank Debit Adjustment)
In case of mutual expenses the head office have right to debit the account in IBDA.
When they have debited their account the Head office sends IDBA note to its branch.
For example:
Soneri G.M Abad had sent request for generator. Soneri Head Quarter has purchased
the generator on the behalf of G.M Abad branch, and debited the account of G.M Abad
Branch with that amount.
6) OBC (Outward Bills for Collection)
The bank sends outward bill collection to another bank in case where state bank is
notexist.OBC send by one bank to another bank, where State Bank is not exists.
7) Inward Bills for Collection (IBC)
The bank sends inward bills collection to another bank where state bank does not exist
.For other bank OBC would be IBC If one bank sends OBC to other bank.
Realization and Un-Realization:
Three steps are there in realization of cheque in clearing.
Shadow
Realized
Unrealized
Shadow:
Shadow just record and till the cheque is not clear.
Realized:
After receiving a notice of clearing from other bank then bank realized entry.
Unrealized:
We removed cheque from the shadow in case if cheque is not clear, then we unrealized
the cheque.
3.3.3 Remittances
Instruments of Negotiability:
The Draft on Demand(D.D)
The Pay orders
The ATM Cards
3.3.3.1 The Draft on Demand:
The large organization and even the large amount are sending through on D.D because
both parties are not certain due to risk. Therefore the customer request for D.D after
verifying the status of account of the party who is make this note in the favor of other
party. The bank is responsible for the payment to the party after issuing the draft.
NOTE: The validity of draft is six month and it is used for outside the city.
3.3.3.2 Pay Order
In case of uncertainty between parties then they requested for pay order instead of
cheque. Pay order reduce the risk. After cheque pay order is the most frequently using
bank’s instrument. After verifying the status of account of the party who is makes this
note in the favor of other party. The bank is responsible for the payment to the party
after issuing the pay order .NOTE: The validity of draft is six month and it is used for
outside the city.
3.3.3.3 ATM & CREDIT Cards
Soneri Banking Card offers well-located and 24-Hours-a-day, 365 days a year right to
use to ATMs crossways the country. When itinerant within Pakistan, make use of the
Card at Soneri bank’s own system of ATMs and thousand of ATMs displaying moreover
the 1-link or M-Net symbols.
Eligibility:
The account holder of Soneri bank can as well be valid for a Debit Card services. If
account holder is have Soneri Banking Card, if account holder is maintaining a Soneri
bank PKR Current or Savings account Single or Joint account with also participant
allowed to operate the account, a more supplementary card can also be issue to the
next account holder. All Soneri Banking Card holders use debit card facility.
ATM Access across All over Pakistan:
The services of cash withdrawals and Balance inquiry exist by at all of the ATM in
Pakistan.
Available Services:
Cash Withdrawal:
The owner of ATM card is able to withdraw cash as of your account(s) up to Rs.25,
000per day in multiples of Rs.500, and Rs.1, 000 currency notes.
3.3.4 Cash Department
In cash department these following books are maintain:
Receiving cashier books
Token Book
Paying cashier Book
Scroll Books
Cash Balance Book.
The transitions record in scroll book and cash receiver book when cash received at
counter. These books are balanced with each other at end of the day. The cheque or
any negotiable instrument when presented at counter for payment, they will be
record the entry in the token book and token is issued to the client. 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 consolidate figure of receiving and payments of cash is enter in the
balance book and drawn closing balance of cash .
Ending balance = opening balance + receipt – payment
The cash department is a crucial department. Since cash is the mainly liquid asset and
generally frauds are prepared in this department, therefore, further be concerned is
taken in this department and no one is permitted to enter or put down the area freely.
Mostly, cash area is grilled and its door is under the supervision of the head of that
department. The check the books preserve in this department.
Chapter no.4
4.1 Field Of Activities (Job Description)
I worked at Soneri Bank Limited, JARANWALA. As an internee. The bank Manager
told me about the rules and regulations and a brief history of the bank. Later on, he
told me the basics of some operations of the departments in the bank. Though, I was
supposed to serve in all possible departments, yet I served the Accounts department
the most.
4.2 Work Done By Students
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.
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.
4.3 Dilemmas Faced By Organization
All these problems are faced by the SBL branch Jaranwala.
· Software security is not good. It is open to all restriction. Internal control is not
efficient. Use of Flash drive can cause virus in the system.
· In SBL non availability of IT professionals.
· No proper appraisal to evaluate performance of employees.
· Employees are not holding the proper position.
· Finance manager & IT professional is a same person.
· Sale promotion/marketing department are same in the SBL.
· Employees are not cooperative with the trainees / internees.
· There is too much manual work as compared to others bank.
· They introduced there DOT net software last year, so employees are not
complete trained.
· There is no CRO (customer relation officer) in the branch who proper guide the
new coming customers.
Chapter no.5
SWOT ANALYSIS
There are following strength weakness opportunity and threats for SBL;
5.1 Strength:
Loyal workforce and satisfied Customers.
SBL collaborate with different cellular companies to provide bank statement on
their customer’s cell phone.
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.
ATM card facility has proven to be success. The ATM Card can be used at
any branches who are the member of 1-Link agreement to withdraw money.
The Soneri ATM Card is also the Soneri Debit Card.
Providing superior service, innovation, specialized products and professional
guidance is the main objective of the Bank.
Branches are also being opened in distant areas like Gilgit and Remote areas
are being linked online. The Bank has its own WEB SITE which customer
can visit to acquire information about the Bank.
5.2 Weaknesses:
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.
Defensive approach in lending.
bank are in any other country. So the bank has
to incur additional cost for correspondent banking.
5.3 Opportunities:
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 can enjoy handsome return its funding base by investing in capital
markets in the foreign countries.
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.
5.4 Threats:
Some developments in the external environment represent threats. Soneri Bank
is as such facing no large threats. Except that there are very large numbers of private
banks in the market which are providing the same services to its customers. They can
overcome this threat by:
· Delivering the benefits better than any actual or potential competitors.
· Target market be located and reached with a cost effective media.
· Bank can introduce new capabilities.
By offering products at the reasonable prices to which the common man should
have easy excess.
5.5 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.
Chapter no.6
6.1 Overview of FINANCIAL ANALYSIS
Financial Analysis refers to the assessment of a business to deal with the planning,
budgeting, monitoring, forecasting, and improving of all financial details within an
organization.
There are two types of analysis used in a business: Horizontal and Vertical.
Horizontal Analysis:
This method of analysis is simply comparing the same item in a company's financial
statements from two or more comparable periods, and then calculating the difference.
Vertical Analysis:
This type of analysis illustrates the relationship of certain components compared to the
whole, or the financial stability of a company. There are several different types of ratios
or indexes that may help us determine where the company currently stands in
relationship to where it wants to go.
The most common form of Vertical Analysis is using percentages to show one
account's relationship to another.
Soneri Bank Limited
Balance Sheet
As on the Year Ended December 31st
PARTICULARS YEARS YEARS YEARS
Assets: 2009 2010 2011
Cash and balances with treasury banks 6,471 7,248 8,959
Balances with other banks 1,497 1,400 879
Lending to financial and other institutions 2,755 2,582 813
Investments- net 29,537 34936 4,5776
Advances- net 48,727 54676 6,5340
Fixed assets 3,334 3,469 3,834
Deferred tax assets- net 108 385 362
Other assets- net 2,880 3,411 3,769
95,310 108,106 129,732
Liabilities:
Bills payable 1,763 1,858 1,571
Borrowings 9,386 12,371 14,557
Deposits and other accounts 73,548 82,017 99,734
Sub-ordinated loans 1,198 1,197 898
Liabilities against assets subject to
financial lease ----------- ----------- -----------
Deferred tax liability- net ----------- ----------- ----------
Other liabilities 1,612 1,745 1,995
83,507 99,188 1,18,755
Net Assets 7,803 8,918 10,977
Presented by
Share Capital 5,019 6,023 8,028
Reserves 2,004 2,029 1,183
Inappropriate profit 158 329 1,026
Surplus on revaluation of assets-net
of tax
622 536 740
7,803 8,917 10,977
Soneri Bank Limited
Income Statement
For the Year Ended December 31st
Rs In Millions
2009 2010 2011
Mark-up/return/interest earned 9,337 10,250 12,895
Fees .commission and exchange income 673 603 915
Capital gained dividend income 120 175 428
Other income 375 450 612
Total income 10,505 11,478 14,850
Mark-up/return/interest expense 6,603 7,204 8,997
Operating expenses 2,079 6,682 3,503
Provisions 1,633 1,452 1,272
Taxation 45 15 294
Total expenses 10,360 11,353 14,066
----------------------------------------------------------------------------------------------------------------
Profit after taxation 145 124 784
6.2 Horizontal Analysis
Soneri Bank Limited
Balance Sheet
Horizontal Analysis
As on the Year Ended Dec 31st
2009 2010 2011
Assets:
Cash and balances with treasury banks 100% 112% 138%
Balances with other banks 100% 93.5% 58.71%
Lending to financial and othr institutions 100% 93.7% 29.5%
Investments- net 100% 118% 154.9%
Advances- net 100% 112% 134.7%
Operating assets 100% 104% 114%
Deferred tax assets- net 100% 356% 535.1%
Other assets- net 100% 118% 130.8%
100% 113% 136.11%
Liabilities:
Bills payable 100% 105% 89%
Borrowings 100% 131% 155%
Deposits and other accounts 100% 112% 135%
Sub-ordinated loans 100% 99.9% 75%
Liabilities against assets subject to
financial lease ---------- ----------- -----------
Deferred tax liability- net --------- ----------- -----------
Other liabilities 100% 108% 123%
100% 118% 142%
Net Assets 100% 114% 140%
Presented by
Share Capital 100% 120% 160%
Reserves 100% 101% 59%
Unappropriated profit 100% 208% 649%
100% 86.1% 118%
Surplus on revaluation assets-net of
Tax 100% 114% 140%
Interpretation of Horizontal Analysis of Balance Sheet of Soneri Bank
Limited:
Horizontal Analysis of the Bank Balance Sheet has been prepared by taking the year
2009 as the base year ad the remaining years as compared to the base year. The
most liquid asset of the Bank such as cash and balances with treasury Bank has
increased from the year 2009 to 2010 that is 96% in 2009 and 110% in 2010, where as
other liquid assets such as balances with other Banks and lending to financial and
other institutions have shown a decreasing trend such as balances with other Banks is
90% in 2009 and 34% in 2010 and lending to financial institutions is 126% in 2009 and
87% in 2010. The reason for this declining trend might be the uncertain political and
law and order situations in Pakistan. All other assets such as mark-up accrued in local
currency, rent and repayments, suspense account, stamps on hand etc shows a
increasing trend as well as fixed assets, advances and investment also have shown a
positive trend. The overall effect is increased in total assets.
Liabilities especially current liabilities have shown a significant increase in 2008 to
2009. Bills payable increases from 76% in 2009 to 107% in 2010 and similarly
Borrowings from 144% to 160% and Deposits and other accounts from 102% to 122%.
This increase in current liabilities depicts that the Bank is performing its operations
successfully. Percentage of sub-ordinate loans almost same in both the years. Other
liabilities also increase from 139% to 167%. In the end the net assets increased from
108% to 118%. Soneri Bank Limited shows progress in all fields including the financial
position due to this the market share of Soneri Bank also increases.
Soneri Bank Limited
Income Statement
Horizontal analysis
For the Year Ended December 31st
Rs In Millions
2009 2010 2011
Mark-up/return/interest earned 100% 110% 138%
Fees .commission and exchange income 100% 89.59% 135%
Capital gained dividend income 100% 146% 357%
Other income 100% 120% 163%
Total Income 100% 109% 141%
Mark-up/return/interest expensed 100% 109% 136%
Operating expenses 100% 321% 168%
Provisions 100% 89% 78%
Taxation 100% 33.3% 653%
Total expenses 100% 109% 136%
Profit after taxation 100% 85.5% 540%
Interpretation of Horizontal Analysis of Income Statement of Soneri Bank
Limited:
Horizontal Analysis is done by taking the year 2009 as the base year and the
remaining years of the bank income statement when compared with the years 2010
and 2011 shows the following results the net mark-up interest income is 152% for 2010
and 141% for 2011 the percentage shows a negative trend the income decreases due
to the increase in interest expense for the bank this interest is paid by the bank on
different deposit offered to the public. Non mark-up interest income also decrease from
105% to 82% the non mark-up interest income is a major source of the bank income
and includes fee, commission, dividend income, income for dealing in foreign
currencies and other incomes. There is increase in interest expense as compared to
2010 i.e. in 2010 the interest expense is 151% and 161% in 2011. Profit after taxation
is 70% in 2010 and decreased in 2011 to 15% which is much lesser as compared to
2010. So the overall profit for the bank increases from 68% to 73% the major source of
increase in bank’s profit in 2011 is increase in unappreciated profit brought forward,
transfer from surplus on revaluation of fixed assets-net of tax.
6.3 Vertical Analysis
Soneri Bank Limited
Balance Sheet
Vertical Analysis
As on the Year Ended Dec 31st
2009 2010 2011
Assets:
Cash and balances with treasury banks 6.8% 6.7% 6.91%
Balances with other banks 1.6% 1.3% 0.68%
Lending to financial and other institutions 2.9% 2.3% 0.63%
Investments- net 31.% 32.3% 35.29%
Advances- net 51.1% 50.6% 50.36%
Fixed assets 3.5% 3.2% 2.95%
Deferred tax assets- net 0.1% o.36% 0.27%
Other assets- net 3.0% 3.15% 2.91%
100% 100% 100%
Liabilities:
Bills payable 1.85% 1.72% 1.21%
Borrowings 9.85% 11.4% 11.2%
Deposits and other accounts 77.1% 75.8% 76.8%
Sub-ordinate loans 1.26% 1.11% 0.69%
Liabilities against assets subject to
financial lease ----------- ----------- -----------
Deferred tax liability- net ----------- ----------- -----------
Other liabilities 1.6% 1.61% 1..54%
91.8% 91.7% 91.54%
Net Assets 8.18% 8.25% 8.46%
Presented by
Share Capital 5.27% 5.57% 6.19%
Reserves 2.10% 1.88% 0.91%
Inappropriate profit 0.17% 0.30% 0.79%
Surplus on revaluation of assets-netof
Tax 0.64% 0.50% 0.57%
8.18% 8.25% 8.12%
Interpretation of Vertical Analysis of Balance Sheet of Soneri Bank Limited:
The financial position of the Soneri Bank is continued to be excellent. The Vertical
Analysis of the Balance Sheet of Soneri Bank shows fluctuation in its assets and
liabilities but also shows a positive trend. When different items of the Balance Sheet
are compared with total assets the following results is obtained. The cash and balance
ratio is 7.6% in 2009 and 6.9% and 6.8% in 2010 and 2011, balances with other banks
shows the negative trend and decreases from 5.7% to 4.8% in 2010 and 1.6% in 2011,
similarly lending to financial institution also shows a negative trend. The advances
were 52.2% in 2009 and increased in 2010 to 58.8% and then decreased in 2011 to
51.1%. The Vertical Analysis of the fixed assets shows the similar trend, 2.8% in 2009
and increased in 2010 to 3.9% and then decreased in 2011 to 3.5%, the increase in
advances in 2010 was due to the increase in loans, cash credits and running finance.
Bills payable as the percentage of current assets is 2.1% in 2009 and 1.5% in 2010 but
slightly increases in 2011 to 1.6%, the increase is due to increase bills payable in
Pakistan while outside the Pakistan there are no bills payable. Borrowing increases
from 7.6% in 2009 to 14.4% in 2010 and then decreases to 9.8% in 2011, the increase
in 2010 was due to the increase in borrowing outside the Pakistan. As compared to
2011 the deposits decrease in 2010 from 78.3% to 76.1% but increase in 2011 to
77.2%, the reason for this increase in deposit is increase in saving and current
deposits. Other liabilities also have shown an increase from 1.3% to 1.6% in 2010 and
1.7% in 2011.
Shared holders Equity is 8.1% in 2009 and it increases in 2010 to 8.6% and then
decreases to 7.5% in 2011. However the overall trend is positive and strengthens the
banks financial positio
Soneri Bank Limited
Income Statement
Vertical analysis
For the Year Ended December 31st
Rs In Millions
2009 2010 2011
Mark-up/return/interest earned 88.88% 89.30% 86.84%
Fees .commission and exchange income 6.41% 5.25% 6.16%
Capital gained dividend income 1.14% 1.58% 2.88%
Other income 3.5%7 3.92% 4.12%
Total Income 100% 100% 100%
Mark-up/return/interest expensed 62.8% 62.76% 60.59%
Operating expenses 19.79% 23.37% 23.59%
Provisions 15.55% 12.65% 8.57%
Taxation 0.43% 0.13% 1.98%
Total expenses 98,62% 98.91% 94.73%
Profit after taxation 1.38% 1.09% 5.27%
Interpretation of Vertical Analysis of Income Statement of Soneri Bank Limited:
The vertical Analysis of the Income Statement indicates that the Net Mark-up for the
Soneri Bank is favorable and increases from 64% to 71% and then decreases to 70%
in 2011, the increase is due to the higher interest rate this is a positive trend because a
bank principle revenue source is usually interest from loans and interest. Total non-
mark-up interest income as a percentage of profit shows a decreasing trend and
decreases from 92% to 70% in 2010 to 58% in 2011, usually falling interest rates are
positive for a bank’s interest and because of this bank profit increases. Taxation for the
bank increase from 2009 to 2011 Soneri Bank has already achieved its target which is
settled done by the higher authorities of the bank. The bank income statement shows
that the bank net income for the year 2011 has increased as compared to previous
year. The soneri bank has achieved broad based growth in non-interest income during
the year just ended with all categories but mortgage banking income showing
improvements.
6.4 Ratio Analysis (Rs in Millions)
6.4.1 ROA
RETURN ON ASSETS =
Net Profit after Tax
× 100
Total Assets
Year 2009 (000) 2010 (000) 2011 (000)
Net Profit after Tax 145 125 784
Total Assets 95,310 1,08,106 1,29,732
Ratios 0.15% 0.12% 0.60%
Interpretation:-
The return of assets ROA is an important ration to calculate the firm’s profitability. It
also tells that, how efficiently and effectively the organization is using his assets. The
higher value of net income gives better return on assets. The increasing trend of this
ratio shows that, the bank is using his assets efficiently and earning good revenue.
6.4.2 ROE
Net Profit after Tax
RETURN ON EQUITY=
× 100
Equity
Year 2009(000) 2010(000) 2011(000)
Net profit after tax 145 125 784
Equity 7,181 8,381 10,237
Ratios 2.02% 1.49% 7.66%
Interpretation:-
The ROE share capital is actually the total called up value shares of any organization.
The shareholders are very interested in this ratio because with the help of this ration
they come to know that, how much profit is earned by equity. The decreasing trend of
return on total equity is not a good sign for the bank.
6.4.3 ROI
Return on investment = Net profit after tax x 100
Investment
Year 2009(000) 2010(000) 2011(000)
Net profit after tax 145 125 784
Investment 29,537 34,986 45,776
Ratios 0.49% 0.36% 1.71%
Interpretation:-
The ROI is the most important ratio of all. It is the percentage of return on funds
invested in the business by its owners. In short, this ratio tells the owner whether or not
all the effort put into the business has been worthwhile. If the ROI is less than the rate
of return on an alternative, risk-free investment such as a bank savings account, the
owner may be wiser to sell the company, put the money in such a savings instrument,
and avoid the daily struggles of small business management.
6.4.4 RFA
Return on fixed assets = Net profit after tax x 100
Fixed assets
Year 2009 (000) 2010 (000) 2011 (000)
Net Profit after Tax 145 125 784
Fixed Assets 3,334 3,469 3,834
Ratios 4.35% 3.60% 20.45%
Interpretation:-
The RFA is an important ration to calculate the firm’s profitability. It also tells that, how
efficiently and effectively the organization is using his assets. The higher value of net
income gives better return on assets. The increasing trend of this ratio shows that, the
bank is using his assets efficiently and earning good revenue.
6.4.5 NPM
Net Profit Margin = Net profit after tax x 100
Interest income
Year 2009(000) 2010(000) 2011(000)
Net profit after tax 145 125 784
Interest income 9,337 10,250 12,895
Ratios 1.55% 1.22% 6.07%
Interpretation:-
The Net profit margin tell that, either our markup covers our expenses or not which are
provided on goods and services. It also relates to company pricing policy and markup
matters. The decreasing trend of this ration is also not a good sign for the bank
6.4.6 IITI
INTEREST INCOME TO TOTAL INCOME=
Interest Income
× 100
Total Income
Year 2009(000) 2010(000) 2011(000)
Total Income 3,902 4,275 5,853
Interest Income 9,337 10,250 12,895
Ratios 41.79% 41.70% 45.38%
Interpretation:-
From an investor’s point of view, the organization IITI is more important and investors
can easily understand the firm’s profitability. In financial year 2009 it 41.79% but in
financial years 2009 its decreases and in 2011 it increases as 45.38%.
6.4.7 ROA
RETURN ON ADVANCES=
Interest Income
× 100
Total Loans
year 2009 (000) 2010 (000) 2011 (000)
Interest Income 9,337 10,250 12,895
Advances/total loan 48,727 54,676 65,340
Ratios 19.16% 18.75% 19.74%
Interpretation:-
This ratio measure that the performance or efficiency of management in
converting the return in the advances.
6.4.8 ATTD
Advances to Total Deposit = Advances x 100
Total deposits
Year 2009(000) 2010(000) 2011(000)
Advances 48,727 54,676 65,340
Total deposits 73,548 82,017 99,734
Ratios 66.25% 66.66% 65.51%
Interpretation:-
This ratio measure that the performance or efficiency of management
in converting the deposits in the advances.
6.4.9 DTAR
DEBT TO TOTAL ASSETS RATIO=
Total Debt
× 100
Total Assets
Year
2009(000)
2010(000)
2011(000)
Total Debt 88,129 99,725 1,19,495
Total Assets 95,310 1,08,106 1,29,732
Ratios 92.46% 92.24% 92.10%
Interpretation:-
A metric used to measure a company's financial risk by determining how much of the
company's assets have been financed by debt. Calculated by adding short-term and
long-term debt and then dividing by the company's total assets.
6.4.10 ATAR
ADVANCES TO TOTAL ASSETS RATIO
Advances
× 100 =
Total Assets
Year 2009 (000) 2010 (000) 2011 (000)
Advances 48,727 54,676 65,340
Total Assets 95,310 1,08,106 1,29,732
Ratio 51% 50% 50%
Interpretation:-
From an investor’s point of view, the organization earning per share (EPS) is more
important and investors can easily understand the firm’s profitability. In financial year
2009 it 51% but in financial years 2009 its increases and in 2011 it decreases as 50%..
6.4.11 ITAR
Investment
INVESTMENT TO TOTAL ASSETS RATIO =
× 100
Total Assets
Year 2009 (000) 2010 (000) 2011 (000)
Investment 29,537 34,986 45,776
Total Assets 95,310 1,08,106 1,29,732
Ratio 31% 32% 35%
Interpretation:-
From an investor’s point of view, the organization earning per share (EPS) is
more important and investors can easily understand the firm’s profitability. In financial
year 2009 it 31% but in financial years 2009 its decrease and in 2011 it increases as
35%.
6.4.12 EPSBT
Earnings per share before tax= Net profit before Tax
Number of Shares Issued
Year
2009(000)
2010(000) 2011(000)
Ratio 0.38%
0.23% 1.34%
Interpretation:-
From an investor’s point of view, the organization earning per share
(EPS) is more important and investors can easily understand the firm’s profitability. In
financial year 2009 it 0.38% but in financial years 2009 its decrease and in 2011 it
increases as 1.34%.
6.4.13 EPSAT
Earnings per Share after Tax= Net profit after Tax
Number of Shares Issued
Year 2009(000) 2010(000) 2011(000)
Ratio 0.29% 0.17% 0.96%
Interpretation:-
From an investor’s point of view, the organization earning per share (EPS) is more
important and investors can easily understand the firm’s profitability. In financial year
2009 it 0.29% but in financial years 2009 its decrease and in 2011 it increases as
0.96%.
Chapter no.7
7.1 Conclusion
As I have studied and analyzed SBL I found out that this a good bank as its working,
management is concerned. First of all the reason of this is that there is no directive
style in the management of Soneri Bank and which shows that there is decentralization
in the Bank and every branch manager can take decision according to the situation.
Soneri Bank is providing their customers with wide range of services including online
banking, phone banking and some of their new products in the pipeline; include ATM
network etc shows that Soneri Bank is taking good care of their customers. Soneri
Bank made heavy investments, towards enhancing its capabilities in the area of
automation and technology. Soneri Bank is well positioned to meet client needs, with
improved competitive advantage.
The essence of there business philosophy is to cater to the banking requirements of
small & medium sized entrepreneurs, providing them qualitative & competitive services
of conventional and all Islamic banking with emphasis on encouraging exports.
There success is because of having branches in many northern areas but they should
increase the number of branches to readily accessible to wide range of people in this
competitive environment, of this new products and services.
And from the financial and when I conduct comparative analysis with other banks I
found that it is somewhat better than others, and from the analysis of previous year I
concluded that it is improving and in 2011 profits are more than the previous year. So I
can say that Soneri Bank is performing very well.
Soneri bank Limited is engaged in banking service, and operate more than 216
branches 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 19 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.
They have told me that two more branches will be operational by the end of this year.
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.
We have more time for you!
Chapter no.8
8.1Suggestions
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 Jaranwala 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.
8.2 Recommendations
With the help of SWOT analysis we can see that the bank’s strength are much more
than its weakness but still there is room for some of improvements and innovations.
1- Marketing:
Soneri Bank Limited should have a separate marketing department. They should
advertise their products through media i.e. Radio and Television and through Banners,
neon signs.
2- Product development:
Soneri Bank Limited should concentrate on product development innovations
schemes.
3- Customer Feedback:
Feedback from customers should be taken on regular basis on the products that are
presently offered. Suggestions for improvement should also be asked for. Bank should
ask its valued customers to apprise them of any problem they face, listen to their
complaints and should have a positive attitude towards the customer feedback.
4- Customer Record:
Percentage of customers using the products and other financial services should be
taken, and of those customers who are turning over.
Such products should be offered which commensurate customer needs and facilitates
their relationship with the bank.
5- Innovations:
Each branch on its part should promote its products with value added innovative and
appealing marketing strategies that compliment customer needs
6- Reward and incentives:
Reward and incentives should be given to employees. Annual increment should be
applied with the New Year. Special allowances or bonus should be given to those
employees whose performance is better than others.
7- Employees Benefits:
Services of employees should be acknowledged and they should be rewarded either
through cash allowances or promotion.
8- Job Rotation:
Employees should be rotated on different jobs after the passage of certain time period.
9- Interaction with Employees:
Management should have strong and healthy interaction with the employees. They
should have a friendly attitude to them in order to increase their productivity.
10- More Branches:
Bank should increase its branches at the international level. Which not only increase
the number branches but also improve the Pakistan image in the international market.
8.3 References
Financial Statements 2009,2010,2011 of Soneri bank
www.soneribank.com www.microstrategy.com/financial-analysis
www.accounting-and-bookkeeping-tips.com/learning-
accounting/financial-analysis.htm
www.investopedia.com/terms/p/portfoliomanagement.asp
www.finance-lib.com/financial-term-capital-lease.html
forextrading.about.com/od/forexglossary/g/liquidity.html
8.4 Appendixes:
.
.
37.50%