Soneri bank limited

Banking Industry

A bank is a financial institution that accepts deposits and channels those deposits into lending activities.
The Banking sector is an integral part of the country’s financial services industry. The banking sector
plays a significant role in a contemporary world of money and economy. It influences and facilitates
many different but integrated economic activities like resources mobilization, poverty elimination,
production and distribution of public finance. Banks in Pakistan account for 95% of the financial sector.
Pakistan has a well-developed banking system, which consists of a wide variety of institutions ranging
from a central bank to commercial banks and to specialized agencies to cater for special requirements of
specificsectors.
The country started without any worthwhile banking network in 1947 but witnessed phenomenal growth
in the first two decades. By 1970, it had acquired a flourishing banking sector. The era of 90s was the
climax of privatization, deregulation and restructuring in the domestic banking industry and financial
institutions. The Government only owns the National Bank but 80% of bank assets are in private sector.
Banking assets rose three-folds over the last five years and the industry size are reaching Rs 4 trillion.
The contribution of banking sector to GDP ratio is 55.6%. Pakistan has been ranked.

Competition is relatively high, especially after the challenging capital adequacy benchmarks set by the
State Bank of Pakistan to nourish a stable banking system. Attracting foreign investment and winning
profitable customers are the only options left to banks for survival.
Opportunities for foreign banks, especially in consumer and retail banking, are greater than ever before.
In the financial year of 2004-05, the banking sector experienced growth rates of 21% and 36% in its
deposit and advances portfolio.

Today, the banking sector is providing financial solutions to the customers and is growing and becoming
a solid partner in the development of the Pakistani economy.

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Company Profile

Soneri Bank Limited (SNBL) was formally incorporated on September 28, 1991 as a public limited
company under the companies ordinance 1984 in Pakistan. The first Branch of soneri bank limited
formally opened doors for operations in Lahore on April 16, 1992, followed by the launch of Karachi's
first Branch on May 09, 1992. The bank currently operates 184 branches, spread all over Pakistan
including the Northern Areas of the country where no other private bank has ventured so far. The bank’s
expansion policy is based on the principle of maintaining a balance between the urban and rural areas.

Soneri bank takes great pride in offering services even in the remote areas of Pakistan. Bank fully air-
conditioned and computerized branches provide a pleasant, convenient and hassle free banking
experience every time. The Fareesta Family, owners of Rupali Bank holds a controlling stake in the
bank. The bank offers a range of Corporate, Treasury and Retail banking related products with emphasis
on trade related services. SNBL's key focus is on encouraging exports and a major portion of advances
portfolio nearly 40% is related to exports financing. The lending practice of SNBL is prudent and
conservative in terms of asset quality. SNBL has the paid-up capital enough to meet the revised reserve
requirements from SBP. The credit rating of the bank assigned by PACRA (Pakistan Credir Rating
Agency) is "AA-" for the long term, "A1+" for the short term with positive outlook and "A+" for the
Term Finance Certificate.

The essence of our business philosophy is to cater to the banking requirements of small & medium sized
entrepreneurs, effectively 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.

We have more time for YOU!

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Mission

To develop soneri bank into an aggressive and

dynamic financial institution having the capabilities
to provide personalized services to customers with
cutting edge technology and a wide range of
products, and during the process to ensure maximum
return on asset with ultimate goal of serving the
economy and society.

Vision

To provide visionary services and dynamic banking

solutions to cater the needs of our stake holders

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Corporate Information

Top level Management

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Middle level Management

DIRECTORS

AUDITORS SECRATERY

SEVP EVP

VP AVP

GRADE 1 GRADE 1

GRADE 2

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Branch Structure

Chief Manager

Senior Manager

Assistant Manager International Banking Inchar Advances Inchar. Head Cahier Agriculture Inch.

CD incharge International banking Advances inch.OG3 Cashier JO

Account Opening OG1 International banking OG 2 Advance OG 3 Assistant

Account Opening OG2 International banking OG 3

Clearing Remittance JO International banking JO

Junior officer

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Company Analysis

Operational Analysis
The bank currently operates 184 branches, spread all over Pakistan including the Northern Areas of the country.
Soneri bank limited has provided different products and services to its all type of customers.

1. Consumer financing
Soneri Car financing, Soneri Home financing, Soneri Personal financing, Soneri generator
financing.
2. Domestic banking/Retail banking
Deposits, Remittances, Lockers
3. Electronic banking
ATM/visa card, Cheque free banking, internet banking, Internet banking, Utility bill payments
Online banking ,SMS alerts
4. Corporate banking
Current Accounts, Trade finance, Term deposits
SME financing, Agriculture financing
5. Treasury finance
FOREX Market, Investments, Govt. Securities e.g bonds
6. International banking
Import, export, letter of credit, Remittance

Some of the major cities of Pakistan and the number of branches located in these cities are as follows:

City Number of Branches

Islamabad 5

Karachi 52

Lahore 28

Peshawar 3

Rawalpindi 7

Soneri bank head office is situated in Karachi at II chundrigar road and has regional offices in major
cities of Pakistan.

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Financial Analysis

No bank can remain in business if it cannot sustain and grow its profits and soneri bank is no
exemption. If soneri bank wants to become a premier banking institution and to satisfy its customers, it
itself needs to become a profitable organization, that not only has growth in profits, increase its assets
but also provide its shareholders with the maximum return so that they are also satisfied.

Soneri bank profit after taxation in year 2009 is Rs.145, 355 and in 2008 are Rs.701,041 these figures
shows downward trend of profit. This graph shows that the profit after taxation in 2007 is high and
after 2007 it gradually decreased. The reason of decreasing profit after 2007 is fraudulent activities in
soneri bank two branches.A shown profits of soneri bank have been growing from 2003 to 2007 after
2007 they declined.

Profit after taxation

1,200,000

1,000,000

800,000

600,000 profit after taxation

400,000

200,000

0
2009 2008 2007 2006 2005 2004 2003

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Investments
Bank investment increasing in 2009 annual investment is Rs. 29,537,179 and Rs. 14,053,177 in 2008.

The investment graph is showing upward trend and growth.

Graph 2

 Investments

35,000,000
30,000,000
25,000,000
20,000,000
 Investments
15,000,000
10,000,000
5,000,000
0
2009 2008 2007 2006 2005 2004 2003
Years

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Earning per share

Earning per share shows what you have earned in your each share profit investment, likewise other
profitability ratios which have decreasing trend in the last five years, earning per share also having a
decreasing trend and not very attractive for investors.

 Earning per Share - Basic / Diluted

4.5
4
3.5
3
 Earning per Share -
2.5
Basic / Diluted
2
1.5
1
0.5
0
2009 2008 2007 2006 2005 2004 2003
years

In general, a high earning per share ratio suggests that investors are expecting higher earnings growth in
the future compared to companies with a lower EPS. However, the EPS ratio of soneri bank decreasing
that shows investors has low confidence about the shares of soneri bank. Investors compare the EPS
ratio of the bank to other bank in the industry and invest their money with high EPS bank.

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Net Assets

Net assets of the soneri bank increasing. The graph shows upward growing trends in last 7 years.

Increase in net assets is favorable and it shows rapid growth of soneri bank. Soneri bank net assets
increase shows bankm growth and expansion.

Net Assets

10,000,000

8,000,000

6,000,000
net asset
4,000,000

2,000,000

0
2009 2008 2007 2006 2005 2004 2003
years

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Human Resource
Human Resource Division (HRD), a strategic function of Soneri Bank, strives towards achieving
excellence in the management of the Bank’s most valuable assets – its people. HRD is committed to
recruiting the best human resource from around the country, and developing them continuously to
become experienced and seasoned bankers. The main focus of the HRD is to formulate and implement
strategies and practices to serve and develop our employees. Through its dynamic and committed
people, Soneri Bank has the capacity to adapt to fast changing business environment, and the
competitive edge in banking industry. Soneri Bank Human Resource Division is responsible to take care
of all HR matters of Bank’s network throughout the country and it fully participates in achieving Bank’s
goals and objectives.

Fresh graduates as a trainee officer

Trainee Officer Program is soneri bank systematic recruitment efforts carried out twice a year to allow
fresh graduates to be able to launch their banking careers with Soneri Bank. These graduates are
recruited in two batches in a year through Aptitude Test, followed by an interview of the applicants
successful in the Test. These applicants are put through a rigorous training of six months which includes
both classroom training and on-the-job training in actual work environment.

After completion of the training successfully, the Trainee Officers are inducted in regular Officer Grade.

Trainee Officers will be imparted in following areas

 General Banking
 Corporate Investment
 Credit
 Risk Management
 Compliance
 Commercial and retail Banking
 Treasury & Management
 Human Resource Management

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 Audit

Recruitment process for fresh graduate

Direct induction

Of Fresh graduates

CV’s dropped at CV’s dropped at HRD Application through

concerned branch. website

Written test is required

Interview

Final interview and

selection

Six month training

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The main thrust of HR Division is to recruit the best talents available, train and develop them through
in-house and out-side training programs and to keep them motivated. A full fledge training centers are in
operation in Karachi and Lahore where employees and new recruits are provided training through the
year.  In order to further grooming and learning, a robust system of job rotation is implemented thereby,
every employee especially in branches, is rotated and given new assignment every after three years.
Employees’ salaries, perks and benefits are reviewed periodically and updated to align them in
accordance with the market.

Performance appraisal is an important tool to ensure that goals and targets are met. Hence, a
comprehensive Employee Performance Appraisal system is in place whereby each employee is subject
to be appraised and his/her input is also obtained during the appraisal process. Based on employees’
performance and talents, promotion and annual increments are decided. In addition, employee’s
achievement in meeting their goals and targets and acquiring professional education is also recognized
through cash awards and appreciation.

Our people are our biggest asset, and we are committed to assist them in exploring and developing their
full potentials with an array of employee-oriented policies to facilitate them. As a learning organization,
we encourage our people in their pursuit of knowledge through systematic education and professional
trainings (in-house and external) and certifications. Our people are groomed and developed through
organized job rotations to have enriched and fulfilling careers.

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Environmental Analysis
Environmental analysis is the study of the organizational environment to pinpoint environmental factors
that can significantly influence organizational operations. Different banks offer different products and
service for their customers. Soneri bank offers a range of products and service for their customers.

 Retail banking
 Corporate banking

Retail Banking
Retail banking is 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;

 Savings and checking accounts

 Mortgages
 Personal loans
 Issuance of debit/credit cards
 Certificates of deposit

Corporate Banking
Financing, cash management, and other banking services custom-tailored for large firms.
Services offered include;
 Trade financing
 Funded facilities, ranging from short to medium and long term lending.
 Customized products and services.

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 Soneri bank covers cash management, foreign exchange, business-to-business payments, trust,
custody, commercial lending, trade finance, and other corporate banking issues.

Departments of Soneri bank

 General Banking
 Credit Department
 Trade Department

I did my internship at Soneri bank limited Garhi Shahu branch Lahore for six weeks. In my first
week of internship in soneri bank, Mr. Amin hakim who is the manager of the Ghari shahu branch
assigned me to learn basic concepts of general banking. All staff members are very kind and
cooperative.

General Banking
 Accounts opening Department
 Remittance
 Clearing department
 Cash department

 Accounts opening department

Account opening is the first way of interaction between the customers and bank. Bank has to deal with
different type of customers once who are the walking customer. They are not potential customers of the
bank they just walk and grab the information about accounts and interest rates offered by the bank.
There are two types of accounts one for companies, partnership, trusts and second for single and joint
personal.

Soneri bank has provided different types of accounts to facilitate their customers. Customers can easily
choose account type according to their own convince and choice. Types of accounts and its detail is
below:

1. Basic Banking Account(BBA)

2. Current Account
3. Profit and Loss Account (PLS)
4. Soneri Saving
5. Ikhtiar Account
6. Term Deposit

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1. Basic Banking Account

Basic banking account is non-profit bearing account. There is no minimum balance requirement
for this account. This account may be opened by initial deposit of any amount. This account is
normally opened by the students and salaried persons. Minors can also opened their account
under the guardianship.
4 withdrawals from basic banking through cheques in one month are free of charges. Additional
service charges Rs.25 per cheque will be applied after 4 withdrawals in one month through
cheque.

2. Current Account
Current account is non profit flexible account. This account can be opened with minimum
Rup.10,000. If the customer balance is decreases the minimum balance requirement Rup.50 per
month will be deducted from account.
Current account holder have many facilities

 No limit on number of transactions.

 Free clearing facility to deposit cheques of other banks within the city.
 Free online funds transfer through cheque across the Pakistan.
 Free SMS Alerts on cash deposits, withdrawals, funds transfers, inward cheque clearing
returns and Purchase transactions etc.

3. Profit and Loss Account(PLS)
PLS saving account is simple and easy saving bank account with great ease for single or joint
individual customers or for companies, trusts, corporations and educational institutions etc
PLS saving account have minimum balance requirement the account with balance below
Rs.5000 on any day shall be subject to service charges Rs. 50 per month as per bank schedule.
The salient features of this account are:

 No limit on number of transactions.

 Free Cash Deposit and Withdrawal facilities through any 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.

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 Free SMS Alerts on cash deposits, withdrawals, funds transfers, inward cheque clearing
returns and Purchase transactions etc.
 PLS account rate of return is 5% pa
 Profit will be paid annually.

4. Soneri Saving Account

Soneri saving account is flexible and fast growing cumulative profit account with great ease for (single
or joint) individual minors (to be operated by the guardian), charitable institutions, autonomous
corporations, limited companies, firms, associations, educational institutions, [Link] unique and
interesting feature of this account is as the customer balance increases the rate of profit in this saving
scheme also increases without any demand. Advantages for soneri account holders are

 No limit on number of transactions.

 Free clearing facility to deposit cheques of other banks within the city.
 Free online funds transfer through cheque across the Pakistan.
 Online cash deposit, withdrawal or funds transfer through cheques from any of our
branches across the Pakistan.
 Free SMS Alerts on cash deposits, withdrawals, funds transfers, inward cheque clearing
returns and Purchase transactions etc.
 Profit calculation on daily basis and paid after 6 month.

Balance Rate of Return p.a

Up to 100,000 5%
Over Rs.100,000 up to Rs. 1 million 7%
Over Rs.1.0 million up to Rs. 5 million 8%
Over Rs.5.0 million up to Rs.10 million 9%
Over Rs.10 million 11%

5. Ikhtiar Account
Ikhtiar current is a non-profit 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:

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 Chequing Account facility with no limit on a number of transactions.

 Free Cash Deposit and Withdrawal facilities through any bank branch.
 Free Clearing facility to deposit cheques of other banks within the city.
 Free  issuance of Pay orders  .
 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
 Statement of Account on six monthly basis
 Usage of Electronic Banking through:
o ATMs across Pakistan owned by Soneri Bank and other local banks
o Shopping/purchasing/payments through outlets displaying VISA sign
o Free Online Cash Withdrawal facility upto Rs. 300,000/- from designated branches
without Cheque Book
o Free 24-hours Telephone Banking and Call Centre facility
o Free 24/7 Online Funds Transfer to any customer of Soneri Bank through ATMs owned
by Soneri Bank or through SoneriDirect (internet Banking)
o 24/7 Online Inter Bank Funds Transfer through ATMs owned by Soneri Bank or through
SoneriDirect (internet Banking) to any account of participating 1 LINK member banks
o  Free Payments of Utility Bills through ATMs owned by Soneri Bank or through
SoneriDirect (internet Banking)
o No one-time and annual fee on VISA Classic Debit Card

6. Term Deposit

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.

o Automatic renewals

Upon maturity, your deposit is automatically renewed for the same tenor at the prevailing profit rate
unless you instruct otherwise.

o Pre-matured Encashment

Pre-matured encashment is allowed without any penalty however you will receive profit less than
originally contracted.

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o Running Finance facility

You can use your Term Deposit as collateral to apply for Running Finance facility.

 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.

Profit Sharing

 Provisional rates are announced on a six monthly basis however profit/loss earned/incurred on
Term Deposits are determined by the Bank at its sole discretion on the basis of its net working
result at the end of each half-year/ year
 Calculation of products on Term Deposit is computed on a daily product basis

Term Rate of Return p.a

1 month 8.00 %
3 month 8.50 %
6 month 9.00 %
1 year 10.50 %
2 years 11.50 %
3 years 12.50 %

Procedure of Account Opening

If any person wants to open an account with the bank the account opening officer first of all gets the
photo copy of CNIC of customer and gets it verified through NADRA or from world check. If the
customer involved in any fraudulent activity or held liable for debts of any bank the bank cannot open its
account. After verification process the officer gives application form to customer. The customer fills the
form or account opening officer fills it to facilitate the customer. The application form consist of

 Account opening application form

 SMS alert application form
 Visa Debit card application form

Customer have to provide complete and detailed documentations about its source of earning. After
analyzing the documents the officer enter all the data and issue a account number to customer. Now the
customer can operate his/her account after depositing certain amount.

The basic requirement to open an account for (single of joint) self employed individuals

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 CNIC
 Source of income
 Company letterhead or authorization

The basic requirement to open an account for a partnership

 Partnership Deed
 Partners CNIC
 Company Letterhead

The basic requirement to open an account for companies:

 Memorandum of Association
 Article of Association
 Directors CNIC
 Company Letterhead

Internal codes for some Accounts

Account Type Code

Current Account 0201

Profit& Loss Account 0101

BBA Account 0205

Soneri saving 0102

In accounts opening department I worked as an account opening officer. Customers came into bank and
get the information about the accounts and its profit rates.I was responsible to guide the customers,
getting their basic information fill their account opening forms and collect all the relevant documents. I
spend a whole week there and get information about the cash deposit slip, cheques, cheque book
issuance, cheque deposits etc

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Soneri Islamic banking

Soneri bank also offer Islamic product to its customers.

 Soneri Jari account

 Soneri Bachat account
 Soneri Manafa accoun
 Soneri Meaadi account

 Cash Department
Cash department is one of the most critical departments and it accepts the deposits of bank and also for
branch. Soneri bank cash department works under the operation department. The complete responsibility
of cash transactions in local and foreign currency is given to this department. The department is also
responsible of book keeping of these transactions and the safe custody of the cash. Cash department
have two main functions

 Cash payments
 Cash receipts

Cash Payments

Cash payment is important function of cash department. When a cheque is presented to officer
by the customer the officer first confirms that it drawn from the same branch or particular of
cheques are properly filled. After confirmation cheque is handed over to cash department officer
where the officer checks the date, amount in figures and words. The cheque is posted in the
system and posting stamp is affixed on it the cash payment officer pay the cash to customer.

Cash Receipts

For Cash deposits customers use cash deposit slips. Deposits slip consist of two slips one is
deposit slip which remains with bank and the other is customer copy is also called pay in slip.
The officer checks that the deposit slip is properly filled up having account number, amount in
words and figures. After checking the cash officer received the cash and enters in the system
adds the cash into customers account and affixed cash received stamp on slip.

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As part of my internship, I was responsible to fill the customers deposit slips to facilitate them.
Count the cash and affixed the stamps on the deposited slips. Check the daily position report,
daily extract report general , extract report remittance of the soneri bank.

 Remittances
Remittances come under the operation department. Remittance department deals with following types of
working

 Pay order
 Demand draft
 Soneri internet banking
 ATM

Pay Order

Pay order is transferable instrument is made to transfer money within the city and this is a safe way to
transfer money as the person who makes the transfer through pay order pays in advance. The procedure
that is carried out in transferring money through pay order is as follows:

Procedure for transferring money through pay order

The customer will come to the bank and fill in the pay order application, giving in the details to which account the
money is being transferred, the amount etc and attach a cheque to pay for the pay order. Certain amount of
commission and tax is charged on the issuance of pay order. After the amount is deposited in the bank in the
form of cash or cheque, pay order is issued in the favor of payee.

When pay order issued by soneri bank , are presented to other banks for cash deposit in payees account, that
would be outward clearing for that bank and inward clearing for soneri bank.

Demand Draft

Demand draft is another way in which customers can transfer money outside the city. Demand draft is always
made for detailed city.

A customer comes to bank and requests to provide him demand draft DD for particular city like Islamabad.
Customer deposited the amount including commission and advance tax with application form and DD is issued in

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favor of specified person in Islamabad and drawn on soneri bank Islamabad. When DD is presented by payee in
any bank , it constitutes the inward clearing of soneri bank Islamabad branch.

ATM /VISA Debit Card

SONERI Debit Card brings to you the ultimate facility of spending and making payments.
Soneri bank offers convenient 24 hour a day,365 days in a year access to ATM across the country. 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. while travelling the soneri bank card
holders can use the ATM card at soneri bank own network of ATMs or either the 1-link banks.

Soneri Internet banking

Soneri bank customers can Pay Utility Bills, Transfer Funds, and access their Account information
Anywhere Round-the-clock through SoneriDirect Internet Banking.

 Can View their balance of account, latest transactions using Today’s Transaction menu
 Can View their Statement of Account. They 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.

o Fund Transfer

 Transfer funds to any Soneri bank account

 Transfer funds to any 1-LINK participating member bank’s account

o Bill payments

 Telecom/Mobile : Ufone, Warid, Telenor (Post Paid, prepaid)

 Electricity : KESC, LESCO, GEPCO
 GAS : SSGC,SNGPL

In the remittance department I was responsible to fill the DD, pay order application forms and enter
these forms into registers.

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 Clearing
The basic function of clearing department is to facilitate the customer it provides them services
in collection of their cheques from other [Link] is also comes under the operations
department .There are two types of clearing

 Inward clearing
 Outward clearing

Inward Clearing
If any other bank send a cheque or IBCO (Inwaed bill for collection)of Soneri bank limited
Garhi shahu branch for collection. Operations manager check the balance of the drawer
customer and remit money to payee account. When the drawer and payee have the account in a
same branch one account is debited and other is credited and transfer stamp affixed on the
[Link] the cheque is from same bank but different branches, transfer delivery stamp is used
and cheque for different banks then used clearing stamp.

Outward clearing
Outward clearing is when a customer of our branch present a cheque for collection from other
bank. This cheque is send to clearing for collection of money . OBCs are those bills which came
from different cities for collection. The clearing officer collects the OBC and dispatch in the
morning and enters in OBC register and logged them from clearing into NIFT. National
institutional facilitation technology (NIFT) is working as a clearing house on the behalf of state
bank of Pakistan. When the OBC came back from NIFT after realizing the clearing officer enter
the OBC realized in OBC register and make three credit vouchers commission, FED and currier
charges. After realizing the clearing officer writes Realized in front of it and in the situation of
return he writes Return in front of it.

Outward clearing is favorable for any bank because money comes from other banks.
Favorable Clearing when outward clearing balance is greater than inward clearing balance.
When the clearing is favorable bank make inter branch debit advice (Inter branch Debit Advice)
for the difference amount of inward or outward balance .In the other situation when the balance
is Unfavorable, bank make inter branch credit order.

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Credit Department
Soneri bank has divided their finance department into three sections, finance officer told me about the
types of finances.

 Consumer finance
 Corporate finance
 Agricultural finance

 Consumer Finance
Consumer finance has to do with the lending process that occurs between the consumer and a bank.
Consumer finance can include just about any type of lending activity those results in the extension of
credit to a consumer. In other words consumer financing means any financing allowed to individual for
its personal or family needs.

o Soneri Car Financing

Car financing has become one of the most selling financial products of almost all banks. People prefer
getting their cars financed rather than paying upfront because it is convenient and lessens the burden of
paying a huge sum of money upfront. Soneri bank car financing features are:

Purchase of brand new: Un-registered cars for private use or un-registered light commercial vehicles for
private use. Maximum repayment period is 5 years.

If the financing amount is up to Rs. 1.0 Million minimum 15% of the vehicle price will be paid as down
payment or on finance over Rs. 1.0 Million minimum 20% of the vehicle price will be paid. Financing
amount for cars up to 2000 CC the price of car is Rs.1.0 million or for cars exceeding 2000CC Rs.2.0
million. Bank charged 3000 processing fee per approved application. Salaried persons, self employed
professional and business persons can apply for this financing.

Mark up Rate

1 year KIBOR + 4% p.a., to be revised on each anniversary of finance.

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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.

o Soneri Ghar Finance

Soneri bank gives loans for the purchase of new house, for construction of property for self-
occupancy, for extension renovation on self occupied residential Property. Salaried persons, self
employed Professionals and business persons can apply for this loan. For Purchase: [Link] to 10
Million , for construction: [Link] to 10 Million, for extension / Renovation: [Link] to 03 Million
or for balance Transfer Facility: [Link] to 10 Million are financing amount. Rs. 2500/- or 0.50%
of the finance amount whichever is higher (refundable where case is not approved) is charged as
a processing fee by the bank.

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 + 4% p.a., to be revised on each anniversary of finance.

Insurance

 Mortgage Protection Insurance cover through Bank’s designated Insurance Company.

 Insurance premium on the insurance cover payable upfront each year.

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o Soneri Generator Financing

The purpose of generator financing is to facilitate the customer. For purchase of brand new Electric Power
Generator to be installed at residential / commercial / industrial property owned by the borrower.
Salaried persons, self employed Professionals and business persons are eligible borrowers for this loan. A
minimum of 20% of price of the Generator (as per Invoice) being financed shall be paid by the borrower
and the remaining 80% financed by the bank. Maximum repayment period is 3 years.

Financing Amount

 Minimum Amount of Finance:        Rs. 0.1 Million

 Maximum Amount of Finance:      upto Rs. 1.0 Million

Mark-up Rate **

 1 Year KIBOR + 4% p.a., to be revised on each anniversary of finance.

Insurance of Generator

 Insurance Premium is payable up-front for each year during the life of the loan.

o Soneri Personal Finance

Soneri bank has provided personal loans as a part of their consumer financing. This loan is introduced by Soneri
bank in 2003. The purpose of this loan is to facilitate the customers to meet medical expenses for dependant
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 and to meet domestic needs.

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Salaried persons, self employed Professionals and business persons are eligible borrowers for this loan.
Maximum repayment period of 5 years.

For clean Financing upto Rs. 0.5 Million maximum financing amount is available or for balance
Transfer Facility (BTF) upto Rs. 0.5 Million are available.

Mark-up Rate

1 Year KIBOR + 6% p.a., to be revised on each anniversary of finance.

Personal Loan Insurance

 Amount of Finance insured against life of borrowers, free of cost.

Procedure of Personal Financing

The process for a personal financing starts when a customer comes and ask for loan .Usually customers
ask about the interest rate the bank charged against the loan. Customers have to specify the purpose of
the e.g A customer wants to apply for personal loan the purpose of the loan is to meet domestic needs.
There are two types of the advances secured loan or unsecured loan. Customer have to provide a security
against the amount of the loan this is called secured loan. Unsecured loan is when no security is
provided against the amount of the loan. Our branch only deals with secured personal loans because our
branch is newly open and starts its working on 18 June [Link] branch deposit is not to much so we
deal only with personal financing not with other consumer financing like Ghar financing, Car financing
and generator financing.

All the required documents like, the applicant proof of identity (CNIC card, driving license etc)latest
salary statement if he is salaried person, bank statements if self employed , trade license or permanent
job letter and other mandatory documents sole proprietorship declaration , partnership deed copy etc.
Bank mark lien on the amount of the collateral, which is kept against the bank loan. The market value of
the security should not below the outstanding amount of the loan. After the completion of all required
documents the branch sends these documents to regional office Lahore or central office Karachi.

All these documents go to the Credit Information Bureau (CIB), a State Bank Department that provides
a Customer Credit Information Report (CCIR), explaining it the customer is a credit risk or not.

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After the CCIR is received, the bank does a private valuation of the collateral documents and customer,
which determines the amount of loan that will be provided to the customer. These documents provide
the basis for a Credit Line Proposal (CLP) that determines the amount of loan provided to the customer
and other important information relating to the loan finance.

When the customer signs and approves the CLP, Documentation Control Centre (DCC) will get in touch
with the customer to complete finance & security documentation and provide loan to the customer.

During my internship, I had to make Credit Line Proposals for different customers that had a loan in
progress and learnt about the financing procedure and required documentation for loan.

 Agricultural Department

Agriculture department is relatively new and its goal is to provide facility to medium sized former to
cultivate their lands and to play their parts in the betterment of the [Link] 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.

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.

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Mark-up Rate

 All Type of Agriculture Loans upto Rs. 100,000/- 6M Kibor +

2%
 Production Loan under Revolving Credit Scheme 6M Kibor +
3%
 Working Capital for Live Stock i.e.(Dairy, Fisheries and
6M Kibor
Poultry etc)
+3.5%
 Development Loan (All kinds) 6M Kibor +
4%
 Corporate Finance
The main corporate finance products are:
 General financing
 Import Financing
 Export Financing

General financing

Business finance enhance to the business and existing business to require the capital. It is offered to the
individual, SME and corporate loan. Repayment period of 1years or demand.

Mark-up Rate is KIBOR +2.5% p.a. it depend on security.

SME ( Small medium and enterprises)

Means an entity, ideally not a public limited company, which does not employ more than 250 persons (if
it is a manufacturing concern) and 50 persons (if it is a service concern) following criteria of either a and
c or b and c as relevant.

 A service concern with total assets at cost excluding land and building up to Rs.50 million.

 A manufacturing concern with total assets at cost excluding land and building up to
Rs.100million.

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 Any concern with net sales not exceeding Rs.300million as per the latest financial statement.

Import Financing
Import financing is further divided into two types, these are given below.

 Inward foreign Bills

 Finance against Imported Merchandise (FIM)

Export Financing
Export financing is further divided into two types, these are given below.

 Pre-shipment Loan (PSL)

 Post-shipment Loan
 Finance against Packing Credit(FAPC)

Other Services of Soneri bank

 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.

Salient features of Soneri Diamond Deposit Certificates

 Certificates are issued for fixed periods of 1, 2 and 3 years.

 Annualized Rates of expected Profit: from 11.00 % p.a. to 12.00 % p.a.
 Profit paid at monthly intervals calculated from date of deposit.
 The certificates are issued in multiples of Rs. 10,000/-
 Financing facility up to 90 % of Deposit available.

Certificate of Deposit

Term %age
  1 Year 11.00% p.a.
  2 Years 11.50% p.a.
  3 Years 12.00% p.a.

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 Soneri Premium Deposit

Soneri Premium 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, Clubs etc. who have the intention of retaining their savings for a fixed period of 12 months
thereby earning a most lucrative rate of return thereon. The depositors have the option to reinvest the
deposit automatically with or without profit.

Minimum Deposit Amount: Rs.25, 000-

Annualized rate of Return (Provisional): 12.00% p.a.
Profit Payment Frequency: Annually at maturity of Deposit

Financing Facility: You may use your Soneri Premium Deposit as collateral to apply for financing
facility from the Bank.

 Lockers

Specially designed lockers of various sizes to facilitate the customers. The lockers can operate during
the baking hours of the bank. Only account holders of the our bank are eligible to apply for safe lockers.

Allotment of Locker

A locker of the size of applicants choice shall be allotted subject to its availability.

Bank’s prescribed license agreement on stamped paper to rent the locker is required to be executed by
the applicant with cost thereof payable by the applicant.

Key deposit money as per our schedule of charges in force is payable by the renter. The key deposit is
refundable when the locker is surrendered. In case the key of the locker is lost the key deposit shall be
forfeited.

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Competitors Analysis
The growth in the banking industry of Pakistan has led to an increase in the number of banks both
domestic and international to be established and create a competitive industry. For Soneri bank its
competitors come in the form of both domestic and international commercial banks established in
Pakistan.

Private Banks in Pakistan

 MCB bank, Islambad

 Allied bank of Pakistan, Karachi
 Arif Habib Rupali Bank Limited, Karachi
 Allied Bank of Pakistan Limited, Karachi
 Askari Commercial Bank Limited, Rawalpindi
 Atlas Bank Limited, Karachi
 Bank Al Habib, Karachi
 Bank Al Falah Limited, Karachi
 BankIslami Pakistan Limited, Karachi
 Crescent Commercial Bank Limited, Karachi
 Dawood Bank Limited, Karachi
 Faysal Bank Limited, Karachi
 Habib Bank Limited, Karachi
 Habib Metropolitan Bank, Karachi
 JS bank
 KASB Bank Limited, Karachi
 Meezan Bank Limited, Karachi
 My Bank Limited, Karachi
 NIB Bank Limited, Karachi
 PICIC Commercial Bank Limited, Karachi
 Saudi Pak Commercial Bank Limited, Karachi
 United Bank Limited, Karachi
 GR Bank Limited, Karachi

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Foreign Banks in Pakistan

 ABN AMRO Bank NV

 Albaraka Islamic Bank
 Bank of Tokyo Mitsubishi Limited
 Citibank NA
 Deutsche Bank AG
 Habib Bank AG Zurich
 HSBC
 Oman International Bank SOAG
 The Bank of Ansar Saeed
 American Express Bank Limited
 Doha Bank
 Emirates Bank

Soneri bank major competitors are

 MCB
 United bank
 Alflah bank
 Faysal bank

As deposits in a bank are an indicator of its performance, in terms of gaining confidence of the people,
so this indicator of measuring market shares in terms of deposits show that bank soneri bank has a very
low competition in terms of deposits.

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Deposits (in million)

600000

500000

400000
Deposits (in million)
300000

200000

100000

Market share
Advances

Advances market share is dominated by National Bank Limited whereas Bank Al-Habib showing
significant growth of 4% in the first half year of the calendar. Average growth of ten sample banks is 1%
which shows reluctance of domestic banks to further extend their lending program. One of the major
reasons of stagnant growth is tight monetary stance from SBP which has reduced credit demand in the
economy.

Allied bank 9%
9%
MCB 11%
11%
others 31%
31%

United bank
16%
Habib bank 16%
Bank alflah 8%20%
8% 20%
Standard
chartered 5%
5%

Others

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Bank al-habib
13%

Askari bank
19%
National bank
61%

Soneri bank
6%

SWOT Analysis
Soneri bank Strength, Weaknesses, Opportunities and Threats are following.

Strengths

Soneri bank is rapidly growing with its expanding branch network and deposit bases along with
profitable advances and increasing the products and [Link] bank have 184, spread all over
Pakistan including the Northern Areas of the country where no other private bank has ventured so far.

 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.

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 Soneri bank collaborate with different cellular companies to provide bank statement on their
customer’s cell phone. This service SMS alert service is free for all customers to keep them up
date.

 The leading companies like Amtex, Hussain Textile, Fatima Mills have an account with Soneri
bank. These companies are trading through Soneri bank. Many small businesses partners and
corporations and SME’s have also account with Soneri bank.

 Loyal workforce and satisfied Customers.

Weaknesses

 As per bank policy, advertising and publicity is not extensively emphasized. Have low
advertising campaign or budget as compare to other banks. Through advertisement customers
could be kept abreast with the product and services.

 Poor employee development and promotion. During the training the trainer couldn’t gave them
proper information. So the trainee faces problem.
 Majority of the workforce consists of young professional, they lack in their experience. They are
not well trained and sometimes lack of experience becomes a hurdle while serving to the
customers.
 Management efficiency level is low. The lower level management lacks clear direction and
is not having managerial depth.
 Most of the personnel are not qualified

 No branches of Soneri bank are in any other country. So the bank has to incur additional cost for
correspondent banking.

Opportunities

 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 should penetrate further and capture various corporate customer as well as retail customer
by expanding their network.

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 Soneri bank has launched another division know as Islamic Banking. This new aspect l also
attracts a large number of people, who don’t want to deal with interest bearing bank.
 If Soneri bank focusing on advertisement it would be good for organization, because promotions
makes people know about the products of Soneri bank.

 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
counties.

 If management of soneri bank giving facility of creditcards 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 our country, the rate of inflation is increasing along with unemployment. So due to increase in
price of the products, the savingof 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 edge for Soneri bank.

 Soneri bank faced downward profit trend in last two years because of fraudulent activities in
bank branches.

 For last seven year there is political stability in Pakistan but now again a new wave of political
instability arises which effects almost all industries including banks.

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 Due to economic instability like currency depreciation and inflation, the bank is constantly
facing a threat e.g. in case of inflation the people have low disposal income which means lower
deposits in banks.

 Other investment opportunities like investment in property and gold are giving people more
return as compare to banks; it can decrease the deposits of bank.

PEST Analysis
Market analysis is very important for business growth. Rapid technological change, global competition
and changing behavior of buyers in many markets require the attention to find the opportunities.
Identification of external and macro factors that influence buyers preferences and market trends. These
influences include:

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 [Link] the last recent year Pakistan has faced

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many crises, including the lawyers’ movement, violence in Karachi, the Lal Masjid debacle, militancy in
FATA and NWFP and its impaction other parts of the country, the return of Benazir Bhutto and her
subsequent assassination, and current ongoing military operation in Swat all these crises definitely
made a huge impact on the economy.

Political instability and law and order situation under the political regime is very important for the
economy as a whole. The government in Pakistan is directly affecting the policies of banks. Continuous
political changes have disrupted the policies and objectives as each political regime brings with it its
own agenda. Banks need time to adjust to one regime and then work with it towards economic
enhancement. Due the wrong policies of the government, the talibanization also develop in Pakistan and
become the international issue in Pakistan and badly affected the Pakistan repute in the world and
promote the uncertain conditions for the business in the Pakistan. Due to this the investors are not
interested in the Pakistan. Now the banking sector is declining not able to meet the essential
requirements by soneri bank. The reason is political instability. Particularly, agriculture people get
benefits due to relations with politicians. Such people also get loan and jobs on references.

Economical

Population of Pakistan is growing rapidly. Pakistan inflation rate is increasing day by day and economy
face lot of problems like bomb attacks in Pakistan no electricity and the unstable government, due to this
the investor are not invest in the Pakistan and the existing business men are losing their business unit
due to the loss. Due to this poor economy, businesses are reaping low profits and stock market is in great
danger. Due to inflation commodities prices are increase and people have very low savings. They have
no enough money to keep it with bank.

There are many rich people in pakistan as compared to other countries. Economical factors are good for
banking sectors. Soneri Bank always looking forward to cater their customer by its attractive offers like
Ikhtiar account ,soneri saving account for salaried persons and for business class. Soneri bank has
mission that “we have more time for you”.It means soneri bank always give valued services to their
customers and satisfy their banking needs.

Social Factors

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Social and cultural factors are affecting the bank. Majority of the population is un-educated and unaware
of the benefits of banking sectors. In Pakistan majority of population is related to labor work and have
low income. People in Pakistan have no habit to keeping their in the banks. They have low saving and
want to keep money with them. About 70% of Pakistan’s population is based on rural areas and literacy
rate of the country is very much low, thus making it harder for banks to mobilize their deposits within
these regions.

Technological factors
Technology has great effect on the working environment. Soneri bank is always willing to introduce
new technology or database for keeping its staff up to date. bank has its own database “Sonaware .

Bank achieves amazing progress in business centralizing outward remittances, account opening, credit
administration, online transfer and in other operations.

This is the era of advance technology and IT . With the help of advance technology banks offer unique
products, provide responsive time , enhance accessibility and improve customer satisfaction. Though
investing in advance technology banking solutions, ATM, Internet banking, VISA debit card,
telebanking, SMS alerts and now mobile banking. Technologically, Soneri bank is strong and this
element strengthens to Soneri bank. 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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Identification of plausible problem

 Majority of the workforce consists of young professional, they lack in their experience. They are
not well trained soneri bank have training institutions in Lahore and Karachi but the problem
with training and development is that it is only available for the officers of the bank and not for
the lower staff members. No training programs are available for low level staff.

 Soneri bank faced high employee turnover in year 2009. The reason is low salary packages for
experienced professionals and fewer chances of increments and promotions.

 There are no incentive schemes for employees of soneri abnk like scholarship schemes for
employees that want to pursue higher education. Soneri bank although gives a number of
incentives to its employees, like personal loans at nominal markup but they are only provided to
employees that are in higher ranks.

 Due to poor employment promotions Soneri bank employees think that their hard work is not
being properly awarded. This is a big problem, which the Bank is currently facing because we

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all know that lack of motivation causes sharp fall in the performance of the employees and thus
the organization.
 Soneribank has equipped its branches with all major IT tools being used in the industry like
ATM’s, fax machines, photocopiers, printers, latest computers and a good connectivity
architecture, however it has been observed that when it’s time to work, there are many failures
seen in the different devices used by Bank, especially its connectivity architecture and remains
offline with the main server, that creates problems for the customers. The server connections
usually break down with branch systems and customers faced many problems.

 There are many fraudulent activities took place in the branches of soneri bank. After these frauds
bank profits decreased many branches of the bank in los. Bank overall profit is showing
downward trend.

Suggestions

 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.

 Soneri bank 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.

 Soneri bank should increase its marketing budget and invest in promotion and advertising
activities. It would be good for bank because it makes people aware about soneri bank products.

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 Soneri bank 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.

 Management should also open new branches is rural areas where the other branches of banks are
not available to capture market share.

 Soneri bank should open a new bank in abroad to compete with others banks.

 Bank should increase the profit rates to attract new [Link] must focus on their own
Marketing team, rather than outsourcing, their own marketing team launches new advertising
campaign.

 In soneri bank branches employees have less efficiency level they should be motivated so they
can provide fast and quick services to their valued customers.

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