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 Preface Acknowledgement Executive Summary

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 banks 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 banks 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 31 st 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 01. 02. 03. 04. 05. 06. 07. Mr. Alauddin Feerasta Mr. Mohammad Aftab Manzoor Mr. Nooruddin Feerasta Mr. Inam Elahi Mr. Muhmmad Rashid Zahir Mr. S. Ali Zafar Mr. Manzoor Ahmed

Designation Chairman President & CEO Director Director Director Director 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 01. 02. 03. 04. 05. Mr.Nooruddin Feerasta Mr. Inam Elahi Mr. Muhammad Rashid Zahir Mr. Shahid Anwar Mr. Muhammad Altaf Butt Designation Chairman Member Member Member Secretary

1.7.2.2 Credit Committee of Board

S.No. Credit Committee of Board 01. 02. 03. 04. 05. Mr. Alauddin Feerasta Mr. NooruddinFeerasta Mr. Mohammad Aftab Manzoor Mr. Inam Elahi Mr. Muhammad Altaf Butt

Designation Chairman Member Member Member Secretary

1.7.2.3 Risk Management Committee of Board S.No. Risk Management Committee of Board 01. 02. 03. 04. Mr. Inam Elahi Mr. Mohammad Aftab Manzoor Mr. Shahid Anwar Mr. Javed H. Siddiqi Designation Chairman Member Member Secretary

1.7.2.4 Human Resource Committee of Board

S.No. Human Resource Committee of Board 01. 02. 03. 04. 05. Mr. Manzoor Ahmed Mr. Mohammad Aftab Manzoor Mr. Inam Elahi Mr. Shahid Anwar Ms. Anita Lalani

Designation Chairman Member Member Secretary

Chapter 02
2.1 THE MANAGEMENT 2.1.1 MANAGEMENT TEAM
S. No 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. Management Team Mr.Mohammad Aftab Manzoor Mr. Amin A. Feerasta Mr. Nemat Ali Mr. Abdul Aleem Qureshi Mr. Shahid Abdullah Mr. Zafar Abrar Naqvi Mr. Iqbal Zaidi Mr. Bilal Asghar Mr. Sheikh Muhammad Moeen Ms. Anita Lalani Mr. Muhammad HaiderDevjianie Designation President & Chief Executive Head of Establishment Head International Division Head of Retail Banking Country Treasurer Head Credits Head Compliance & Controls Group Head of Corporate & Investment Banking Chief Financial Officer Head Human Resources Chief Information Officer

2.1.2 MANAGEMENT COMMITTEE

S. No. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. Management Committee Mr. Mohammad Aftab Manzoor Mr. Amin A. Feerasta Mr. Nemat Ali Mr. Abdul Aleem Qureshi Mr. Shahid Abdullah Mr. Zafar Abrar Naqvi Mr. IqbalZaidi Mr. Bilal Asghar Mr. Sheikh Muhammad Moeen Ms. Anita Lalani Mr. Muhammad HaiderDevjianie Abbas Hatim Designation Chairman Member Member Member Member Member Member Member Member Member Member Secretary

2.1.3 EXECUTIVE CREDIT COMMITTEE

S. No. 01. 02. 03. 04. 05. 06. Executive Credit Committee Mr. Mohammad AftabManzoor Mr. Amin A. Feerasta Mr. Nemat Ali Mr. ZafarAbrarNaqvi Mr. IqbalZaidi Mr. Sheikh Muhammad Moeen Designation Chairman Member Member Member/ Secretary Member Member

2.1.4 ASSETS AND LIABILITY COMMITTEE

S. No. 01. 02. 03. 04. 05. 06. 07. 08. Assets and Liability Committee Mr. Mohammad Aftab Manzoor Mr. Amin A. Feerasta Mr. Abdul Aleem Qureshi Mr. Shahid Abdullah Mr. Zafar Abrar Naqvi Mr. Bilal Asghar Mr. Sheikh Muhammad Moeen Mr. Javaid Hussain Siddiqui Designation Chairman Member Member Member/ Secretary Member Member Member Member

2.1.5 INVESTMENT COMMITTEE

S. No. 01. 02. 03. 04. 05. 06. Investment Committee Mr. Mohammad Aftab Manzoor Mr. Amin A. Feerasta Mr. Shahid Abdullah Mr. Bilal Asghar Mr. Sheikh Muhammad Moeen Mr. Muhammad Imran Khan Designation Chairman Member Member Member Member Secretary

2.1.6 I.T. STEERING COMMITTEE

S. No. 01. 02. 03. 04. 05. 06. I.T. Steering Committee Mr. Mohammad Aftab Manzoor Mr. Amin A. Feerasta Mr. Abdul Aleem Qureshi Mr. Sheikh Muhammad Moeen Mr. Muhammad Haider Devjianie Mr. Siraj BaquerJaffri Designation Chairman Member Member Member Member Member/ Secretary

2.1.7 CREDIT RISK MANAGEMENT COMMITTEE

S. No. 01. 02. 03. 04. 05. Credit Risk Management Committee Mr. Mohammad Aftab Manzoor Mr. Amin A. Feerasta Mr. ZafarAbrarNaqvi Mr. Sheikh Muhammad Moeen Mr. Javaid Hussain Siddiqui Designation Chairman Member Member Member Member/ Secretary

2.1.8 MARKET RISK MANAGEMENT COMMITTEE

S. No. 01. 02. 03. 04. 05. Market Risk Management Committee Mr. Mohammad Aftab Manzoor Mr. Shahid Abdullah Mr. Sheikh Muhammad Moeen Mr. Javaid Hussain Siddiqui Mr. Affan Shamim Designation Chairman Member Member Member/ Secretary 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

GENERAL MANAGER SOUTH

CHIEF FINANCIAL OFFICER

GENERAL MANAGER NORTH

EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT VICE PRESIDENT

SENIOR VICE PRESIDENT VICE PRESIDENT

ASSISTANT VICE PRESIDENT

GRADE I OFFICER GRADE 2 OFFICERS GRADE 3 OFFICERS JUNIOR OFFICER NON-CLERICAL STAFF

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 BANKING DEPARTMENT

INTERNATIONAL BANKING

ADVANCES DEPARTMENT

DEPARTMENT

REMITTANCE DEPARTMENT

CLEARNING DEPARTMENT

DEPOSIT DEPARTM -ENT

ACCOUNTS DEPARTMENT

CONSUMER FINANCE DEPARTMENT

CORPORATE SECTOR ADVANCES

GOVT SECURITIES DEPARTMENT

BILLS DEPARTMENT

IMPORT DEPARTMENT

FOREIGN CURRENC Y DEPARTMENT

EXPORT 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 Travelers 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 7 days 30 days Rate of Return 6.00% p.a 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 Travelers 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 Up to Rs. 100,000 Over Rs. 100,000 but up to Rs.1.0 Million Over Rs. 1.0 Million but up to Rs. 10.0 Million Over Rs. 10.0 Million but up to Rs. 50.0 Million Over Rs. 50.0 Million Rate of Return p.a 6.00 % 6.50 % 7.50 % 8.50 % 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 1 Month 3 month 6 month 1 year 2 years 3 years 8.00% 8.44 % 8.84 % 10.25 % 9.98 % 9.73 % Quarterly Intervals ----8.90 % 10.34 % 10.07 % 9.81 % Six Monthly Yearly Intervals --------10.45 % 10.18 % 8.00% 8.44 % 9.00 % 10.75 % 11.00 % 11.25 % At Maturity

Intervals ------10.48 % 10.19 % 9.93 %

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 1 Year 2 Year 3 Year %age 10.50%p.a 10.60%p.a 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.RupeeTravelersCheque 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. RupeeTravelersCheque 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) 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. 0800-00500

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 SBPs 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/Production Loan under Revolving Credit Scheme Working Capital for Live Stock i.e.(Dairy, Fisheries and Poultry etc) Development Loan (All kinds) 6M Kibor + 2% 6M Kibor + 3% 6M Kibor + 3.5% 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, applicants 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 Banks 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 applicants 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, applicants 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 * Subject to to Charges fulfillment change from of time (at eligibility to actual). criteria. time.

**Subject

*** 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 GOLD Card. With the Buy Now Pay Now facility, Debit Card

payments. You are privileged to avail the unmatched opportunities and benefits of the CLASSIC Card and

you pay directly from your bank account. Use your SONERI 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 Debit Card

Gold & Classic

SCHEDULE OF CHARGES VISA GOLD Debit Card

Description Joining Fee Annual Charges Supplementary Card Charges Card Replacement Charges PIN Re-issuance Charges Charges NIL Rs. 550 Per Card Rs. 500 Per Card Rs. 500 Per Card NIL

VISA CLASSIC Debit Card

Description Joining Fee Annual Charges Supplementry Card Charges Card Replacement Charges PIN Re-issuance Charges Charges NIL Rs. 250 Per Card Rs. 150 Per Card Rs. 300 Per Card NIL

ATM Cash Withdrawal

Description Local (at Soneri ATM) Charges Local (at 1-LINK/M.Net ATMs) Charges NIL Rs. 15 Per Card 300Per Transaction or 3% of

Charges

International Transactions (ATMs Rs. Displaying PLUS Logo)

transaction amount whichever is higher

Purchase: (Point of Sale Terminal)

Description Local International Charges NIL Rs. 300 Per Transaction or2.5% of transaction amount whichever is higher

ATM Funds Transfer

Description Within any Soneri Bank Branch With any participating 1-Link Member Bank Charges Rs. 25 Per Transaction Rs. 50 Per Transaction

Other Charges
Description *Arbitration fee on disputed transaction *Document Retrieval Charges Local *Document International Retrieval Charges Rupee equivalent of US $ 500 Rs. 250 per retrieval

Charges 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 Todays 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 banks 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. Firms 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 parts 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 customers main account where account holder wants. Example: Batta has an account in many cities like (Peshawar, Header Abad, Lahore, Rawalpindi ,and Karachi) .The Accounts 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 companys 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 banks 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 banks 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, Ive 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 customers 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 banks 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. Its 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 couldnt 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 Assets: Cash and balances with treasury banks Balances with other banks Lending to financial and other institutions Investments- net Advances- net Fixed assets Deferred tax assets- net Other assets- net YEARS 2009 6,471 1,497 2,755 29,537 48,727 3,334 108 2,880 95,310 Liabilities: Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to financial lease Deferred tax liability- net Other liabilities --------------------1,612 83,507 Net Assets Presented by Share Capital Reserves Inappropriate profit Surplus on revaluation of assets-net of tax 622 7,803 536 8,917 740 10,977 5,019 2,004 158 6,023 2,029 329 8,028 1,183 1,026 7,803 --------------------1,745 99,188 8,918 -------------------1,995 1,18,755 10,977 1,763 9,386 73,548 1,198 1,858 12,371 82,017 1,197 1,571 14,557 99,734 898 YEARS 2010 7,248 1,400 2,582 34936 54676 3,469 385 3,411 108,106 YEARS 2011 8,959 879 813 4,5776 6,5340 3,834 362 3,769 129,732

Soneri Bank Limited Income Statement For the Year Ended December 31st

Rs In Millions 2009 Mark-up/return/interest earned 9,337 2010 10,250 2011 12,895

Fees .commission and exchange income Capital gained dividend income Other income Total income Mark-up/return/interest expense Operating expenses Provisions Taxation Total expenses

673 120 375 10,505 6,603 2,079 1,633 45 10,360

603 175 450 11,478 7,204 6,682 1,452 15 11,353

915 428 612 14,850 8,997 3,503 1,272 294 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 Assets: Cash and balances with treasury banks Balances with other banks Lending to financial and othr institutions Investments- net Advances- net Operating assets Deferred tax assets- net Other assets- net 100% 100% 100% 100% 100% 100% 100% 100% 100% Liabilities: Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to financial lease Deferred tax liability- net Other liabilities -----------------100% --------------------108% --------------------123% 100% 100% 100% 100% 105% 131% 112% 99.9% 89% 155% 135% 75% 112% 93.5% 93.7% 118% 112% 104% 356% 118% 113% 138% 58.71% 29.5% 154.9% 134.7% 114% 535.1% 130.8% 136.11% 2010 2011

100% Net Assets 100%

118% 114%

142% 140%

Presented by Share Capital Reserves Unappropriated profit 100% 100% 100% 100% 120% 101% 208% 86.1% 160% 59% 649% 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 Mark-up/return/interest earned 100% 2010 110% 2011 138%

Fees .commission and exchange income 100% Capital gained dividend income Other income Total Income 100% 100% 100%

89.59% 146% 120% 109%

135% 357% 163% 141%

Mark-up/return/interest expensed Operating expenses Provisions Taxation Total expenses Profit after taxation

100% 100% 100% 100% 100% 100%

109% 321% 89% 33.3% 109% 85.5%

136% 168% 78% 653% 136% 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 banks 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 Assets: Cash and balances with treasury banks Balances with other banks Lending to financial and other institutions Investments- net Advances- net Fixed assets Deferred tax assets- net Other assets- net 6.8% 1.6% 2.9% 31.% 51.1% 3.5% 0.1% 3.0% 100% Liabilities: Bills payable Borrowings Deposits and other accounts Sub-ordinate loans Liabilities against assets subject to financial lease Deferred tax liability- net Other liabilities --------------------1.6% --------------------1.61% --------------------1..54% 1.85% 9.85% 77.1% 1.26% 1.72% 11.4% 75.8% 1.11% 1.21% 11.2% 76.8% 0.69% 6.7% 1.3% 2.3% 32.3% 50.6% 3.2% o.36% 3.15% 100% 6.91% 0.68% 0.63% 35.29% 50.36% 2.95% 0.27% 2.91% 100% 2010 2011

91.8% Net Assets 8.18%

91.7% 8.25%

91.54% 8.46%

Presented by Share Capital Reserves Inappropriate profit 5.27% 2.10% 0.17% 5.57% 1.88% 0.30% 6.19% 0.91% 0.79%

Surplus on revaluation of assets-netof Tax 0.64% 8.18% 0.50% 8.25% 0.57% 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 Mark-up/return/interest earned 88.88% 2010 89.30% 2011 86.84%

Fees .commission and exchange income Capital gained dividend income Other income Total Income

6.41% 1.14% 3.5%7 100%

5.25% 1.58% 3.92% 100%

6.16% 2.88% 4.12% 100%

Mark-up/return/interest expensed Operating expenses Provisions Taxation Total expenses Profit after taxation

62.8% 19.79% 15.55% 0.43% 98,62% 1.38%

62.76% 23.37% 12.65% 0.13% 98.91% 1.09%

60.59% 23.59% 8.57% 1.98% 94.73% 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 nonmark-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 banks 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
Net Profit after Tax

RETURN ON ASSETS = Total Assets

100

Year Net Profit after Tax

2009 (000) 145

2010 (000) 125

2011 (000) 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 firms 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=

Equity

100

Year Net profit after tax Equity Ratios

2009(000) 145 7,181 2.02%

2010(000) 125 8,381 1.49%

2011(000) 784 10,237 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 Investment Year Net profit after tax Investment Ratios 2009(000) 145 29,537 0.49% 2010(000) 125 34,986 0.36% 2011(000) 784 45,776 1.71% x 100

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 Fixed assets x 100

Year Net Profit after Tax

2009 (000) 145

2010 (000) 125

2011 (000) 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 firms 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 Interest income Year Net profit after tax Interest income Ratios 2009(000) 145 9,337 1.55% 2010(000) 125 10,250 1.22% 2011(000) 784 12,895 6.07% x 100

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

INTEREST INCOME TO TOTAL INCOME= Total Income

100

Year Total Income Interest Income Ratios

2009(000) 3,902 9,337 41.79%

2010(000) 4,275 10,250 41.70%

2011(000) 5,853 12,895 45.38%

Interpretation:From an investors point of view, the organization IITI is more important and investors can easily understand the firms 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
Interest Income

RETURN ON ADVANCES= Total Loans

100

year Interest Income Advances/total loan

2009 (000) 9,337 48,727

2010 (000) 10,250 54,676

2011 (000) 12,895 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 Total deposits Year Advances Total deposits Ratios 2009(000) 48,727 73,548 66.25% 2010(000) 54,676 82,017 66.66% 2011(000) 65,340 99,734 65.51% x 100

Interpretation:This ratio measure that the performance or efficiency of management in converting the deposits in the advances.

6.4.9 DTAR
Total Debt

DEBT TO TOTAL ASSETS RATIO= Total Assets

100

2009(000) Year Total Debt 88,129

2010(000)

2011(000)

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

ADVANCES TO TOTAL ASSETS RATIO

= Total Assets

100

Year Advances Total Assets Ratio

2009 (000) 48,727 95,310 51%

2010 (000) 54,676 1,08,106 50%

2011 (000) 65,340 1,29,732 50%

Interpretation:From an investors point of view, the organization earning per share (EPS) is more important and investors can easily understand the firms 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 = Total Assets

100

Year Investment

2009 (000) 29,537

2010 (000) 34,986

2011 (000) 45,776

Total Assets

95,310

1,08,106

1,29,732

Ratio

31%

32%

35%

Interpretation:From an investors point of view, the organization earning per share (EPS) is more important and investors can easily understand the firms 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 2009(000) Year Ratio 0.38% 0.23% 1.34% 2010(000) 2011(000)

Interpretation:From an investors point of view, the organization earning per share (EPS) is more important and investors can easily understand the firms 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 investors point of view, the organization earning per share (EPS) is more important and investors can easily understand the firms 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 dont 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 banks 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/learningaccounting/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%