INTERNSHIP REPORT ON SONERI BANK LIMITED MANERI ROAD SWABI KHYBER PAKHTOON KHWA PAKISTAN

SUPERVISED BY MADAM GHAZALA SHABNAM

PREPARED BY FAWAD ALI KHAN ROLL NUMBER 19012 MBA (FINANCE) 2009-11

DEPARTMENT OF MANAGEMENT SCIENCES HAZARA UNIVERSITY

INTERNSHIP REPORT ON SONERI BANK LIMITED MANERI ROAD SWABI KHYBER PAKHTOON KHWA PAKISTAN

Internship Report Submitted To the Department Of Management Sciences for the Partial Fulfillment of the Requirements for the Degree of Master of Business Administration

DEPARTMENT OF MANAGEMENT SCIENCES HAZARA UNIVERSITY

COMMITTEE APPROVAL FOLIO

External Assessor

Mr.__________________________________Signature___________________

Supervisor

Mr.__________________________________Signature___________________

Chairman

Mr.__________________________________Signature___________________

DEPARTMENT OF MANAGEMENT SCIENCES HAZARA UNIVERSITY

DEDICATION

I dedicate this report my parents, who supported me from in every kind of situation. I am thankful my parents who love me, and guided me at every stage of life.

Finally, I would like to dedicate this report to all my respectable teachers, who teaches me how to live in this world, who guides me how to deal in this world and how to prepare for the Day of Judgment.

PREFACE

Getting practical knowledge is one the important part of learning. It is correctly said that practice makes a man perfect. Our department also follows that policy. It is also necessary for practical learning to leave the class room and join the real work environment.

So, I have decided to work as internee in Soneri Bank Limited. Internship program consist of two months. I have work in different sections during my internship and gather useful information from different sources. I hope the reader of this get valuable information about Soneri Bank Limited Swabi.

II

ACKNOWLEDGEMENT

Being as a student of Master in any discipline report writing is a very difficult job for any student. But this becomes easy only on the basis of cooperation of the concerned staff. I am very much thankful to the honorable manager, who really co-operated with me in this regard.

I would also like to thank the other staff members of Soneri Bank Limited and especially the teachers of my department who have greatly helped me in building my knowledge.

III

TABLE OF CONTENTS
Dedication Preface Acknowledgement Table of Contents Executive Summary I II III IV VIII

Chapter 01 1.1 1.2 1.3 1.4 1.5

Introduction to Study

01 01 02 02 03 03 03 03 04

Background of the Study Purpose of the Study Limitation of the Study Merits of the Study Methodology of the Study 1.5.1 1.5.1 Primary Data Collection Secondary Data Collection

1.6

Scheme of the Report

Chapter 02 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9

Overview of Soneri Bank Limited

05 05 05 06 06 07 07 08 08 09

Bank Introduction History Vision Statement Mission Statement Organization Nature Retail Banking Corporate Banking Distinctive Characteristic Board of Directors

Chapter 03 3.1

Departments of SBL

12 13
IV

General Banking

3.1.1

Account Opening

13 14 14 15 15 16 17 17 18 18 19 19 20 20 20 22 22 22 23 25 26 26

3.1.1.2 Various Types of Accounts 3.1.1.2.1 3.1.1.2.2 3.1.1.2.3 3.1.1.2.4 3.1.2 Clearing 3.1.2.1 3.1.2.2 Banker Cheques Types of Clearing Basic Banking Account Current Accounts Soneri Saving Account Profit & Loss Savings Account

3.1.2.2.1 Normal Clearing 3.1.2.3 3.1.2.4 3.1.2.5 3.1.2.6 3.1.2.7 3.1.3 Standing Instruction Daily Fund Transferring IBDA (Bank Debit Adjustment) OBC (Outward Bills for Collection) Inward Bills for Collection (IBC)

Remittances 3.1.3.1 3.1.3.2 3.1.3.3 The Draft on Demand Pay Order ATM & Credit Cards

3.1.4

Cash Department

3.2 Credits Department 3.2.1 Credits 3.2.1.1 Consumer Finance

27 27 28 30 31 31 31 32 32
V

3.2.1.1.1 Car Finance of Soneri 3.2.1.1.2 Ghar Finance of Soneri 3.2.1.1.3 Generator Financing 3.2.1.2 Corporate Finance

3.2.1.2.1 Facility of General Financing 3.2.1.2.1.1 Impermanent Finance 3.2.1.2.1.2 Operation Finance 3.2.1.2.1.3 Cash Finance

3.2.1.3 3.2.1.4

Small and Medium Enterprises (SMES) Agriculture Finance 3.2.1.4.1 Production Loans 3.2.1.4.2 Development Loan 3.2.1.4.3 Live Stock

33 34 34 34 34

Chapter 04 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9

Activities I Performed As an Intern

36 36 37 37 38 38 39 39 39 39

Activities in Account Opening Department Activities in Deposits Department Issuance of Cheque Book Activity in Clearing Department Activity in Remittances Department To Record Voucher At Counter Collections of Bills Withdrawals

Chapter 05 5.1

Financial Analysis

41 41 42 43 44 45 46 47 48 49 50 51 52 53
VI

Ratio Analysis 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.1.7 5.1.8 5.1.9 Gross Spread Ratio Current Ratio Working Capital Fixed Assets Turnover Total Assets Turnover Debt Ratio Debt Equity Ratio Time Interest Earned Ratio Net Profit Margin

5.1.10 Return on Total Assets 5.1.11 Return on Equity 5.1.12 Earnings per Share

5.1.13 Advances to Total Deposits 5.1.14 Return on Deposits 5.2 Comparison of Ratios (2010) Of Soneri Bank Limited with Habib Bank Limited 5.2.1 5.2.2 Conclusion Suggestions

54 55 56 56 56

Chapter 06 6.1 6.2 6.3 6.4 6.5

SWOT Analysis

57 57 58 59 60 61

Strengths Weaknesses Opportunities Threats Conclusion of SWOT Analysis

Suggestions Conclusion References

62 64 65

VII

EXECUTIVE SUMMARY

The banking structure in comprises of the following types, State Bank of Pakistan, Commercial Bank of Pakistan, Exchange Bank of Pakistan, cooperative banks, specialized credit intuitions.

SONERI BANK LIMITED Incorporated on September 28, 1991 the first branch of bank formally opened doors for operations in Lahore on April 16, 1992 followed by Karachi Branch on May 09, 1992. The bank now operates with 118 branches spread all over Pakistan including the Northern Areas of the country where no other private bank has ventured so far. Expansion of branches is based on a policy of maintaining a balance between the urban and rural areas with a view to offering services even in remote areas of Pakistan.

In two months internship program, l has worked in different departments like General banking, trade and credits where l worked.

To open an account the customer has to meet Operation manager 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 cannot opens an account of customer before the verification comes from NADRA. SBL has different types of account like, Basic Banking A/C, Current account PLS and Soneri PLS A/C.
VIII

They store all the information of their customer in data base. After entering data, they assigned customer an ID is known as Customer Relation Management ID, with help of this ID different branches can easily get information about their 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 trade the bank has goof repute as compare to other. The leading industries are dealing through SBL. In corporate finance the bank deals only worthy enough industries.

In customer 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 observation during internship, financial analysis and SWOT analysis for SBL is provided. Suggestions are also recommended as per learning from analysis. This report will provide better and comprehensive learning about Soneri Bank Limited.

IX

Chapter 01

INTORDUCTION TO STUDY

Its essential for all the management sciences students to undergo an internship programme for six to eight weeks in any well reputed private / public sector organization. After the completion of internship programme every student is bound to write a report about the organization where he / she has completed the internship programme and submit it in the department to fulfill the partial requirements for the degree of MBA. An internship report entails the study introduction, overview of the organization and its departments & their functions, the practices of the intern, his / her learning & analysis in the form of recommendation, and financial & SWOT analysis of that organization. This internship report is being written on the Soneri Bank Limited Swabi.

1.1

Background of the Study

Money builds a wealthy economy and banks aid the supply of money in an economy. Banks play a vital role in mobilizing the savings of individuals & households and advance them to the businessmen and industrialists for the formulation of their capital. The real mobilization of savings and formulation of capital is a tough job. To gain the practical work experience of such transaction the students of management sciences get exposure to the real banking environment for six to eight weeks. This exposure makes the students of management sciences department competent enough to survive in the real banking environment in future. This prior practical exposure is very vital in the current competent era because every organization recruits only experience and competent

workforce and this internship programme provides an opportunity to each student to learn about the real workplace environment.

1.5

Purpose of the Study

The vital purpose of the internship programmes is to expose the student to do practical work in the real work environment and apply their theoretical knowledge in the real work settings in different organization in order to enhance their business skills. This internship programme is also compulsory as partial requirement for the fulfillment of the degree of MBA. Through the internship programme students of business come to know the various operation and activities of the commercial banks. The internship programme writing enables the students to carry out research in the next phase of their studies.

1.6

Limitation of the Study

An intern is restricted to overview all the banking operations and transactions. That is why this report does not entail the detailed description of all the operations and transactions that are currently being in practice at different branches of the Soneri Bank in Pakistan but only those which were in practice at Swabi branch. Secondly an internship programme report cannot be perfect in all aspect due to secrecy reasons. An intern cannot access all the needed information and this limitation disallows the intern to write a full pledge report on the bank and thus the report may not include broad explanation of facts and figures. Thirdly the time allotted to internship programme was short and in such little time no can adequately understand and analyze the operations of a bank like Soneri Bank.
2

1.7

Merits of the Study

The internship programme promotes the students of management sciences. Being a student of MBA finance I completed my internship at Soneri Bank Swabi and learned a lot about financial events. I conducted the financial analysis of this bank which enriched my skills of analysis and decision making because at the end of this report it is also essential to give recommendation to enhance the operations and make the bank more effective & efficient in its transactions.

1.5

Methodology of the Study

I collected both the primary and secondary data for the preparation of this report. I used the following methods for the collection of primary and secondary data:

1.6.1

Primary Data Collection

Structure Interviews of the Executives Unstructured Interviews of the Employees Personal Observation

1.5.1 Secondary Data Collection

Annual reports of SBL Brochures of SBL Manuals of SBL

 Journals and Newspapers Internet

1.7

Scheme of the Report

Chapter 01 Introduction to the Study Chapter 02 Overview of the SBL Chapter 03 Departments of the SBL Chapter 04 My activities at SBL Swabi Branch Chapter 05 Financial Analysis of SBL Chapter 06 SWOT Analysis of SBL Recommendation for SBL References

Chapter 02

OVERVIEW OF SONERI BANK LIMITED

2.1 Bank Introduction

Soneri bank limited is engaged in banking service, and operate more than 120 branches including four Islamic Banking Branches in Pakistan. The bank operates in four segment corporate finance, trading and sales, retail banking and commercial banking. Corporate finance includes syndicated financing and services provided in connection with mergers and acquisitions, underwriting, privatization, securitizations, debt, equity syndication, initial public offer and secondary private placement. Trading and sales segment includes fixed income, equity, foreign exchange, commodities, credits, funding trust and estates investment advice and merchant/ commercial/ corporate cards. Commercial banking includes project finance, real estate, export finance, trade finance, factoring and leasing. The essence of our business philosophy is to cater to the banking requirements of small & medium sized entrepreneurs, providing them qualitative and quantitative services with emphasizing on encouraging exports. Nearly forty percent of our credit portfolio is related to exports financing and credit decisions are taken within 46 hours.

2.2 History
SONERI BANK LIMITED Incorporated on September 28, 1991 the first branch of bank formally opened doors for operations in Lahore on April 16, 1992 followed by Karachi Branch on May 09, 1992. The bank now operates with 118 branches spread all over Pakistan including the Northern Areas of the country where no other private bank has

ventured so far. Expansion of branches is based on a policy of maintaining a balance between the urban and rural areas with a view to offering services even in remote areas of Pakistan. Pleasant and sophisticated atmosphere has been provided in the branches which are all fully air-conditioned and computerized.

The band is looking forward to attain growth activating the areas of SMEs and Agriculture credits. The management is now trying to achieve a top position in the banking sector of Pakistan.

2.3

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

2.4

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

2.5

Organization Nature

Soneri Bank Limited does business in variety of product for their clients; Retail Banking Corporate Banking

Business Nature

Retial Banking

Coporate Bankig

2.6

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; Savings and checking accounts Mortgages Personal loans Issuance of debit/credit cards Certificates of deposit (CDs

2.7

Corporate Banking
Corporate Banking offer adapt complete products / solution as necessary by corporate customers which includes: Funded facilities, ranging from short to medium and long term lending. Trade related financing. All sorts of non-funded facilities / services which include Cash receipts / payments, Remittances, Collections, guarantees, letter of credit etc. Customized products / solutions.

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

2.8

Distinctive Characteristic

The below distinctive characteristic provide by Soneri Bank limited to their clients: The Soneri bank exceptional stress on small and medium enterprise and offer complete variety of corporate and retail banking services and give qualitative and aggressive services.

 Well specialized and efficient reserves operation and a global system of correspondents. A comprehensive variety of products for trade Finance, one of their interior banking activities. The Soneri bank have own automatic transfer of money network through which customers can easily transfer the funds; cheque-free banking and Soneri visa debit cards are now a little of their worth further services.

The broad array of gorgeous saving schemes to go with all segments of investors, customer finance format and Islamic Banking products catering to the requirements of a multiplicity of clients.

Expectations products consist of exclusive investment strategy beneath bank guarantee business in cooperation with M/s. new jubilee life insurance Company.

2.9

Board of Directors
Mr. Alauddin Feerasta

Chairman

Chief Executive Officer

Mr. Safarali K .Lakhani

Directors Mr. Noor Feerasta Mr. Inam Elahi Mr. S. Ali Zafar Mr. Abdul Hayee

Mr. Shahid Anwar (NIT Nominee)

Mr. Manzoor Ahmad (NIT Nominee)

AUDIT COMMITTEE Mr. Nooruddin Feerasat (Chairman) Mr. Shahid Anwar (Member) Mr. S. Ali Zafar (Member) Mr. Abdul Hayee (Member/ Secretary)

COMPANY SECRETARY Mr. Abdul Hayee

LEGAL ADVISOR Manan Associates, Advocates

AUDITORS A.F Ferguson & Co. (Chartered Accountant)

10

11

CHAPTER 03

DEPARTMENTS OF SBL

ACCOUNT DEPARTMENT

CLEARING DEPARTMEN GENRAL BANKING REMITTANCES DEPARTMENT

CASH DEPARTMENT DEPARTMENT

CONSUMER FINANCE

CRIDET DEPARMENT

CORPORATE FINANCE

AGRICULTURAL FINANCE

12

3.1

General Banking

There are four sections of General banking which are: Account Opening Department Clearing Department Remittances Department Cash Department

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.
13

 Attested photocopy of partnership deed duly signed by all partners. Firms registration attested photocopy should be submitted to registrar of firms. 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.

3.1.1.2

Various Types of Accounts

Soneri bank deals in special types of account which are: BBA (Basic Banking Account) CA (Current Account) Profit and Loss Saving account (PLS Account) SSA (Soneri Saving Account) TDA (Term deposit Account)

3.1.1.2 .1

Basic Banking Account

The Basic Banking Account is that type of account in which only for salary collecting. Most of Government and semi Government and non Government organizations opened basic banking account for their employees. The employees salaries submitted in the basic banking account from where the employees easily receive their monthly salaries.

14

Advantages: Zakat will not deduct. On BBA no service charges Soneri debit card

3.1.1.2.2

Current Accounts

Current account is that type of account on which no interest paid by bank. Most of sole proprietorship, partnership and corporation opened current account in Soneri bank. The account holder every time withdrawals cash from his current account. Current account can be opened with any amount.

Significant features: To open a Current account minimum Rs 10,000 is required. Deduction of Service charges.

3.1.1 .2 .3

Soneri Saving Account

Soneri savings account provides an occasion to small and medium income group people, with a striking return.

Advantages of Soneri Saving: It is open from minimum Rs 5,000. Maximum charges. On this account Zakat will be deducted.

15

 Anticipated profit 6% P.A up to Rs 150,00. Providing Soneri debit and credit card. On this account no limit on a number of transactions to chequing the account. No bank charges on cash deposit and Withdrawal in the course of your bank branch. No clearing charges on depositing cheques of other banks inside the city. Online funds transfer through cheques to any account crossways Pakistan in the course of your bank branch. Online Cash Deposit, Withdrawal and Funds Transfer through cheques from any of our branch across Pakistan.

3.1.1.2.4

Profit & Loss Savings Account

Profit and loss saving account is very simple, in a straight line ahead saving bank account with a vast expediency for individuals, minors (to be written by the guardian) bountiful institutions, farseeing fund and other funds of compassionate nature limited bodies, independent corporations, limited companies, firms associations, educational institutions etc. profit and loss saving account can be open by any amount. Soneri Bank Provide Following Facilities On PLS Saving Account: Facilities of checking account with no limit on a quantity of transaction. Facilities of free cash deposit and withdrawal in the course of your bank branch. Facilities of free clearing on deposit cheques of other banks inside the city. Online funds transfer throughout cheques to whichever account crossways Pakistan throughout your bank branch.

16

 Online cash deposit, pulling out and funds transfer in the course of cheques from at our entire branch across Pakistan. Allowance facilities like payment orders, demand draft, telegraphic transfers and free rupee Travelers Cheques throughout your bank branch. Facilities of standing orders.

3.1.2 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

3.1.2.1

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

17

 Utility Bills Generator Diesel

3.1.2.2 Types of Clearing Main clearing type is: Normal clearing Special clearing Intercity clearing

3.1.2.2.1

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

18

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 debit these charges from customer account.

3.1.2.3

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 customer instruct the bank if his utility bills comes, bank has right to obtain these bills and pass the transaction, or any others vouchers of customer etc.

3.1.2.4 Daily Fund Transferring This is the account in which the bank transfers the funds to customers main account where account holder wants.

19

 Example: Batta has an account in many cities like (Peshawer, Hiadar abad, Lahore, Rawalpindy, and Karachi) .The Accounts manager of the company instruct the bank that banks should transfer their fund to their main account in Rawalpindy. So HQ-Soneri Bank instruct their branches that they should transfer the funds of Batta to companys main account in Rawalpindy.

3.1.2.5

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 Swabi had sent request for generator. Soneri Head Quarter has purchased the generator on the behalf of Swabi branch, and debited the account of Swabi Branch with that amount.

3.1.2.6 OBC (Outward Bills for Collection) The bank sends outward bill collection to another bank in case where state bank is not exist.OBC send by one bank to another bank, where State Bank is not exists.

3.1.2.7

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.

20

If Soneri Bank Mardan received a cheque of Allied Bank Maneri Road Swabi. They send the cheque to SBL-Mux, then Swabi branch send the cheque in normal clearing to Allied Bank Swabi. If ABL clear the cheque, then Soneri Bank send notice to Mardan branch for clearing through dak and credited the account of customer.

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.

21

3.1.3 Remittances
Instruments of Negotiability: The Draft on Demand(D.D) The Pay orders The ATM Cards

3.1.3.1 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.

3.1.3.2

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.

22

3.1.3.3 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 1link 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, 000 per day in multiples of Rs.500, and Rs.1, 000 currency notes.

23

Balance Enquiry: The owner of ATM card can observe the existing balance in our account display on the screen or get an on paper suggestion.

At Soneri Bank ATMs: Fast Cash: The ATM card holders are able to withdraw up to Rs.500, 2000, 8000, 9000 and 15000 cash from our account.

Mini-Statement: The ATM shall offer you through an on the spot mini-statement of your ATM connected accounts (stated by you on the application) catalog 10 previous transactions in the account.

Request for Cheque Book: Request for new cheque book perhaps made in the course of the ATM. The Cheque book perhaps composed from your area office after 3 operational days against surrender of accordingly signed cheque book requisition slip. Request for Statement of Account: Request for a comprehensive statement is process at the shove of a button. Requested statement shall be dispatch by your branch at your record address within 4 operational days.

24

Pin Change:
You may change the Personal Identification Number (PIN) through the own ATMs any number of times.

Smart Option: Transfer of fund Payments of utility bills

Transfer of Fund: The account holder of ATM has the authority to move money from your account to any account of Soneri bank anyplace in Pakistan.

3.1.4 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

25

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.

3.2 Credits Department

3.2.1 Credits
The finance officer of Soneri bank Swabi branch Mr. Aurang Zeb told me that there has different type of finance but our bank deal in the following type of finance:

Consumer finance Corporate finance Small And Medium Enterprises Agriculture Credits

26

3.2.1.1 Consumer Finance The Soneri bank gives finance to their trustworthy customers. The bank check the previous transaction record of customer if the risk chance is less then bank give loan to customer. Soneri bank provides different type of consumer finance product which are: Car finance of Soneri Ghar finance of Soneri Personal finance of Soneri Generator finance of Soneri

3.2.1.1.1 Car Finance of Soneri The Purpose of Car Finance: Purchase of latest brand: certified finance have to be utilize for brand new cars. There is no finance offered for used or recondition cars. Private use of unregistered cars. Private use of unregistered light commercial vehicles.

Borrowers of car finance: The customer who has well past record with bank and salaried person are eligible for consumer car finance. It is necessary for salaried person that he should be enduring employee with minimum two years constant employment with present job employer. Employers have got to be financial institution, MNCs and Public limited company.

27

Borrowers for car finance are: Salaried employees Self Employed Businessman

Amount of finance: For motor unto 1800 CC: More than 1800 CC: Rs. 10 Lack For Cars Rs. 20 Lack

Down Payment On finance unto Rs. 10 lacks: On finance more than Rs.10 lacks: Minimum 16% of the automobile price. Minimum 19% of the automobile price.

Tenure: Amount of loan will be return within 5 years Mark-up Rate ** 1 year KIBOR + 4% P.A to be revise on each centenary of finance.

3.2.1.1.2 Ghar Finance of Soneri

Reason: For the purpose of construction self occupancy property. Conservatory / Reconstruction on self occupied inhabited property.

28

Category of product: Buy of pre-constructed housing property. Manufacture of housing property on self own design of land. Conservatory / renewal on self owned & in use property.

Eligible Borrowers: Salaried employees Self Employed Businessman

Amount of financing: Buy Construction Renewal Facilities of balance transfer Rs up to 1Billion Rs. up to 1 Billion Rs. up to 3 Billion Rs. up to 1 Billion

Tenure: Buy Manufacture Extension Balance Transfer Facility More than 15 Years More than 15 Years More than 08 Years More than 15 Years

29

Mark-up Rates** 2 Year KIBOR + 3% P.A, to be revised on each centenary of finance.

3.2.1.1.3 Generator Financing The Purpose of generating Financing: For the purpose to be installed of new brand electric power generator at housing / marketable / trade property owned by the borrower.

Borrowers of Generator finance: Salaried employees Self Employed Businessman

Amount of financing: Minimum financing amount: Maximum financing amount: Rs. 0.2 Lack More than Rs. 10 Lack

Tenure: Loan will be return within 3 years Mark-up Rate * Per anum KIBOR + 4%, to be revise on each centenary of finance. Processing Fee Rs. 2500/- per approve application.

30

3.2.1.2 Corporate Finance Mr. Aurang zeb in dealing in corporate finance and he is also responsible of credits department.

Products of Soneri Bank: The Soneri bank provides the following main corporate finance products: Facilities of general financing Facilities of import financing Facilities of exports financing

3.2.1.2.1 Facility of General Financing: There are four type of general financing which are: Impermanent running Finance Operation Finance Cash Finance Tenure Finance Require Finance

3.2.1.2.1.1 Impermanent Finance: Client who maintains acceptably conduct account may at their explicit request. Bank accommodates to for the short term their current account to get together unexpected and urgent financing condition.

31

3.2.1.2.1.2 Operation Finance: Operation finance is not anything but the finance aid by financial organizations against mortgages. It works below the working capital finance. Specifically, the operation finance is a credit facility recognized for a specific time boundary at changeable interest rates.

3.2.1.2.1.3 Cash Finance Cash finance is a period that means that the goods are pledged or released to the borrower against the cash payments only. But the operation finance is presented by the financial companies against the mortgages. It typically comes beneath the heading of the working capital finance.

Facility of import financing: There are two type of import financing which are: Inward foreign bills Finance against imported merchandise

Facilities of export financing: There are three type of export financing they are: Pre-shipment Loan (PSL) Post-shipment Loan Finance against Packing Credit(FAPC)

32

3.2.1.1.3 Small and Medium Enterprises (SMES) Soneri Bank Limited, debatably at the front position of commercial excellence, has strengthened its product profile by introducing the following cost efficient modern modify made small and medium enterprises (SMEs) financing options on supple terms to its most discriminating customers need. The market division for this business is primarily SMEs and the bank stands dedicated to supply in the procedure of national expansion with a clear focus in providing excellence finance solutions.

Main Products of SMES Financing: The Soneri bank three type of product offered they are: Scheme of Soneri Sarmaya Scheme of Soneri Aasan Scheme of Tejarat

Eligible of this facility Sole proprietorship Proprietorship Partnership Limited Company

Features of SMEs Products: Spirited Rates, modify made need base products, fast dealing out time, Cash flow-based lend and supple repayment periods.

33

3.2.1.4 Agriculture Finance Soneri bank provides the following agriculture finance facility at its selected branches.

3.2.1.4.1 Production Loans: Production loans are presented to convene the input and other working capital necessities for farming, orchards and nursery, channel farming, storeroom of raw material, transport marketing grade and wadding etc., by farmers.

3.2.1.4.2 Development Loan: Development loans are presented for the obtain of tractors, trolley, thrashers, ploughs, cultivators, laser levelers, combine harvesters, processing machinery, transport for delivery of dairy, poultry, fisheries. Installation of tube-wells, turbine, land leveling, soil improvement, land reclamation, seed processing units and for godams, silos and cold storages.

3.2.1.4.3 Live Stock: To meet up the permanent cost and operational capital necessities for cattle farming, cattle feed units, dairy farming, poultry farming; poultry feed units and fish farming.

Repayment Period: Most important amount of finance plus mark-up thereon is repayable depending winning nature of business range from one to five years. Turning facility is also offered under definite terms.

34

Mark-Up Rate: Mark up rate on any type of Agriculture loans up to Rs. 150,000/Kibor + 3% Production Loan under turning credit scheme: 7M Kibor + 4% 7M

35

Chapter 04

ACTIVITIES I PERFORMED AS AN INTERN

As an internee in Soneri bank Swabi branch my activities during six week internship are as under:

4.1 Activities in Account opening department:

During my first week of internship I have worked in account opening department. Mr. anwer zeb who is account opening officer in Soneri bank Swabi branch he guide me how to open a account in Soneri bank and what are the basic requirement for opening a account. Within one week I learn practically the procedure of account opening. Basically four type of account open in Soneri bank current account, soneri saving account, basic banking account and profit & loss saving account. My activities and duty in account opening department to check the following basic requirement and legal document before opening an account in Soneri bank:
Copy of CNIC. There must be account in the same branch of introducer.. For sole proprietorship NTN certificate is required. Sole proprietorship submits the letter head. 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 firms. Submit the authority letter in inventive in good deed of the person allowed to maneuver on the account of the firm. KYC is required. . 36

 World Check.

Note: After receiving verification from NADRA the people have opened the account.

4.2 Activities in Deposits Department

During second week of my internship in Soneri bank my activities was to deal to with cash deposit. Mr. Sheraz who is in charge in Soneri bank Swabi branch of cash deposit department he guides me about the procedure of cash deposit in bank. My activities in this department to check the following basic requirement while taking cash from customers:

i)

To check the name and account number of depositor before deposit cash into the bank.

ii)

To balanced and verify the cash weather it is matched or not with sum amount on the deposits slip.

iii)

After deposit cash into the customer account a deposit slip is given to customer.

4.3 Issuance of Cheque Book:

During my third week of internship I practically learned from Mr. Tariq Wadood how to issue a cheque book to account holder. My activities here are issue a cheque book to account holder within two week after open an account in Soneri bank. In case if cheque book of old account holder finish then I give a new cheque book to him. In case if a cheque book is given to third party then I follow the following procedure:

37

 The authority letter should be given by account holder to third party. To verify the signature of the account holder in authority letter. The manager should verify the signature of third party. After the above procedure the bank issues a new cheque to account holder.

4.4 Activity in Clearing Department

The activity during my internship in Soneri bank was to practically now about the rule, procedure and method of clearing cheque in bank. The branch manager of Soneri bank Swabi Mr. Iltaf Khan told me the procedure of clearing cheque. My activity in clearing department to sends all these cheque to state bank where clearing house is exits. The representative receives the cheques in the clearing house and sends this cheque to their relevant branches where the validity of these cheques is verified and the accounts of the relevant clients are affected. This procedure is completed within two days.

4.5 Activity in Remittances department

The bank also sends money from one country to another country. During my internship in Soneri bank my activities in this department to collect the basic information and document for the purpose to transfer money from one area to another area. To transfer money from one place to another place the bank require the following documents:
Demand drafts Transfer of mail Telegraphic transfer

38

4.6 To Record Voucher:

The most impartment and difficult activities in my internship is the recording of a voucher. There is different voucher record in Soneri bank. The recording of voucher is required very care. People who bring voucher of any tobacco for clearance the certain provision of document are necessary for recording of that voucher:
i) ii) NIC Written proof.

If a person doesnt have their ID he should be bring written proof from Tobacco Company.

4.7 At Counter:
My activity in Soneri bank during my internship is to fill the demand slip. Demand draft is drawn by bank to her another branch of his bank which is located another area. My activities on counter are fill the demand draft and send to another branch of the bank.

4.8 Collections of Bills

At the end of the month I also collect the bills such as telephone bills, utility bills, electricity bills, and water bills etc.

4.9 Withdrawals:
The customer withdraw his cash from own account through cheque. Whenever a customer come with cheque to bank my activities at that time to check the signed, date,
39

and amount on cheque of the account holder. After that I check the account of the customer if there is amount in the account then the payment is made and vice versa. The amount is only withdrawn from account where the account is opened in that bank .there is no permitted to any third party to withdrawals the amount of cheque .During banking hours all the deposit and withdrawn transaction are made (Well management allowed as working on those areas where the possibility of errors are less. Throughout my internship, I learned that in banking sector attentiveness and steadiness is of extreme importance. Your little mistake can create big problem)

40

Chapter 05

FINANCIAL ANALYSIS

5.1

Ratio Analysis

Ratio analysis is a significant and very old method of financial analysis. Ratios are vital and useful because: They make simpler the understanding of financial statement and tell the whole tale of variance in the financial standings of the business. They give data for inter firm evaluation. They show up factors which are linked with the success or failure of the firms and also disclose strong and weak firms. They are useful in planning and forecasting. They can help management in its fundamental functions of forecasting, planning, organization and controlling. They facilitate investors in their investment decision and bankers in their lending decision.

However they only act as pieces of advice, the financial position of a business cannot be declared good or bad on the basis of ratios analysis because many other things also need to be taken in account.

41

5.1.1Gross Spread Ratio

GSR

Net Markup Income

Gross Mark UP Income

2010 39.86%

2009 33.00%

2008 34.15%

2007 37.50%

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2010 2009 2008 2007

39.86% 33.00%

34.15%

37.50%

Gross Spread Ratio

Gross spread ratio demonstrates the relationship between gross interest income and interest income earned. Financial Analysts suggest that the gross spread ratio should increase over time periods. In the last four year this ratio has not shown any such trend. It had no constant increase in it. It was going down from 2007 toward 2009 and has shown a sudden increase in 2010 which was a good sign for the bank.

42

5.1.2 Current Ratio

CR

Current Assets

Current Liabilities

2010 2.75

2009 3.92

2008 3.02

2007 2.94

4 3.5 3 2.5 2 1.5 1 0.5 0 2010 2009 2008 Current Ratio 2007

3.92 2.75 3.02 2.94

Current Ratio demonstrates the ability and position of a firm to pay its short term debts. According to thumb rule the current ratio should be 2 or close to 2. In the case of Soneri Bank the current ratio over the last four years was above the standard. This means Soneri Bank has been performed well in the nearest past and has been in the position to repay its short term debts.

43

5.1.3 Working Capital

WC

Current Assets

Current Liabilities

2010 18,504,490

2009 25,662,364

2008 22,798,370

2007 19,535,485

30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2010 2009 2008 2007

25,662,364 18,504,490

22,798,370

19,535,485

Working Capital

The difference between current assets and current liabilities is known as the working capital. An organization can easily meet its day to day expenses with a higher working capital. If the working capital grows over years the organization will be in a better position to meet its routine expenses and if it drops then the organization will face stiffness to meet its daily expenses. Over past four years Soneri Bank has shown the increasing trend from 2007 till 2009 and was in better position to carry out its daily expenses but unfortunately in 2010 its working capital has witness a huge drop and that is not a good sign and this bank will now face trouble in meeting its daily expenses.

44

5.1.4 Fixed Assets Turnover

FAT

Sales

Fixed Assets

2010 0.16

2009 0.16

2008 0.16

2007 0.18

0.18 0.175 0.17 0.165 0.16 0.155 0.15 2010 2009 2008 2007

0.18

0.16

0.16

0.16

Fixed Assets Turnover

Fixed Asset Turnover Ratio points out the amount of revenues earned against the fixed assets of an organization. The higher the ratio the more will be profitable the organization. In case of Soneri Bank the fixed assets turnover ratio for the year 2007 was 0.18 times which was better than the upward periods. Because in 2008, 2009 & 2010 this ratio was 0.16 and this indicates that the bank had no increasing trend in the last three years. All this shows that Soneri Bank is not performing well in its business activities.

45

5.1.5 Total Assets Turnover

TAT

Sales

Total Assets

2010 0.11

2009 0.101

2008 0.098

2007 0.078

0.12 0.1 0.08 0.06 0.04 0.02 0 2010 2009 2008 Total Assets Turnover 2007

0.11

0.101

0.098 0.078

The total assets turnover ratio points out the amount of revenues earned against all the assets of an organization. The higher the ratio the more will be profitable the organization and vice versa. In case of Soneri Bank the total assets turnover for the last four years has shown an increasing trend which is a good sign. For the last four years the total assets turnover ratio is low and this bank needs to significantly improve this ratio in upcoming years.

46

5.1.6 Debt Ratio

DR

Total Liabilities

100

Total Assets

2010 93.40%

2009 93.60%

2008 94.26%

2007 95.29%

95.50% 95.00% 94.50% 94.00% 93.50% 93.00% 92.50% 92.00% 2010 2009 2008 Debt Ratio 2007

95.29% 94.26% 93.40% 93.60%

Debt ratio figures out the amount of debts in the total assets of an organization. It tells how much finance has come from creditors. Lower debt ratio means lesser liabilities and lesser interest expenses and vice versa. In case of Soneri Bank the debt ratio is higher that means this bank shares its earnings with creditors. This bank needs to lower its debt ratio in order to increase its earnings for its shareholders.

47

5.1.7 Debt Equity Ratio

DER Equity

Total Liabilities

100

Shareholders

2010 19.95%

2009 19.07%

2008 22.90%

2007 37.65%

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2010 2009 2008 2007

37.65% 19.95%

19.07%

22.90%

Debt - Equity Ratio

Debt to Equity ratio figures out the financing structure of capital of an organization. It tells how much finance has come from outsiders and how much is invested by the insiders. A good debt to equity ratio would be 30% by 70% for a business, where the outsiders would have invested 30% and the insiders 70%. The Soneri Bank debt to equity ratio has a decreasing trend which indicates that the banks insiders believe to have more ownership of the business.

48

5.1.8 Time Interest Earned Ratio

TIER =

Earnings before Interest & Taxes

Interest Expenses

2010 1.71

2009 2.36

2008 2.61

2007 2.97

3 2.5 2 1.5 1 0.5 0 2010 2009 2008 2007

2.36 1.71

2.61

2.97

Time Interest Earned Ratio

Time interest earned ratio indicates the amount of earnings in times before interest and taxes when compared with the interest expenses. To have financial stability, Soneri Bank needs to keep this ratio higher which will result in lower interest expenses. In the case of Soneri Bank this ratio has witnessed a decreasing trend for last four years which is not a good sign. This bank has to improve the time interest earned ratio in upcoming years to gain financial stability.

49

5.1.9 Net Profit Margin

NPM =

Net Income

100

Total Interest Income

2010 14.38%

2009 25.78%

2008 26.39%

2007 40.25%

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2010 2009 2008 Net Profit Margin 2007

40.25% 25.78% 14.38% 26.39%

The net profit margin shows how much earnings come to the owners of a business. In case of Soneri Bank the net profit ratio has a decreasing trend for the last four years which means this bank is not performing well in the banking sector. This an upsetting symbol for the management of this bank. The management of Soneri Bank is responsible to take bold steps to strengthen its operation and make them profitable.

50

5.1.10 Return on Total Assets

ROTA

Net Income

100

Total Assets

2010 1.39%

2009 2.14%

2008 2.26%

2007 2.42%

2.50% 2.00% 1.50%

2.14%
1.00% 0.50% 0.00% 2010 2009

2.26%

2.42%

1.39%

2008

2007

Return on Total Assets

Return on total assets shows what is being earned in a year against the total assets of a business. The return on total assets for Soneri Bank has a decreasing trend for the last four years, which shows that this bank is not doing well and requires managing its business activities appropriately in the upcoming years.

51

5.1.11 Return on Equity

ROE

Net Income

Stockholders Equity

2010 14.62%

2009 23.55%

2008 27.03%

2007 33.11%

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2010 2009 2008 Return on Equity 2007

33.11% 23.55% 14.62% 27.03%

Return on equity shows what an organization earns for its equity holders in a year. If the earnings are satisfactory the outsiders will be attracted and will do investment in that particular organization. But in case of Soneri Bank the profit earning has a decreasing trend for the last four years. This means this banks equity holders will suffer and will get lower return on their investments.

52

5.1.12 Earnings per Share

EPS

Earnings available for Common Stock

No.

of

Shares

of

Common Stock Outstanding

2010 1.92

2009 2.65

2008 3.51

2007 3.30

4 3.5 3 2.5 2 1.5 1 0.5 0 2010 2009 2008 Earnings per Share 2007

3.51 2.65 1.92

3.3

Earnings per share figure out how much a shareholder earns on his / her investment. In the case of Soneri Bank the earnings per share also has a decreasing trend for the last four years because all the other profitability ratios has a decreasing trend. This decrease in the earnings per share has lower down the share value and share price of this bank in the secondary market.

53

5.1.13 Advances to Total Deposits

ATTD

Advances

Total Deposits

2010 0.79

2009 0.68

2008 0.68

2007 0.69

0.8 0.78 0.76 0.74 0.72 0.7 0.68 0.66 0.64 0.62 2010 2009 2008 Advances to Deposits 2007

0.79

0.68

0.68

0.69

Advances to total deposit ratio shows how much advances are made against the total deposit. The soundness of a bank in the banking industry can be determined by the soundness of its advances. Advances to total deposit ratio of Soneri Bank has witness an increase in 2010 which is a good sign and indicates that the profitability of this bank might improve in the upcoming years.

54

5.1.14 Return on Deposits

ROD

Net Income

Total Deposits

2010 1.58%

2009 2.49%

2008 1.89%

2007 1.97%

2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2010 2009 2008 Return on Deposits 2007

2.49% 1.58% 1.89% 1.97%

Return on deposits shows the capability of a bank to utilize its deposits to earn profit. The return on deposits ratio of Soneri Bank had a mixed trend because it has not shown a decreasing or increasing trend constantly. This ratio showed an increase in 2009 but again in 2010 it fell down. Deposits and Advances are major components of financial statements of organizations in banking industry because the trading of a bank mainly depends on these items and thus these two ratios are very important.

55

5.2

Comparison of Ratios (2010) Of Soneri Bank Limited with

Habib Bank Limited

Financial Ratios of 2010 Net Profit Margin Return On Equity Advances Deposit Ratio Debt Equity Ratio

Soneri Bank Limited 14.38% 14.62% 0.79 times 19.95%

Habib Bank Limited 18.25% 24% 0.95 times 32.35%

5.2.1

Conclusion

I compared the financial position of Soneri Bank Limited and Habib Bank Limited, above over all ratios depict that Habib Bank is working well than Soneri Bsnk. There are different reasons to increase in ratios of Soneri Bank Limited, as Modern banking procedures, qualified staff, use of latest technology, better marketing efforts, packages to employees etc. By using these means SBL can become market leader in banking sector.

5.2.2

Suggestions

There should be planning and advancement in culture and structure of Habib Bank. Employees should be trained. Advance technology should be used.

56

Chapter 06

SWOT ANALYSIS

During my internship report I found the below strength weakness opportunity and threats of Soneri Bank Limited.

6.1 Strength:
The major strength of the Soneri Bank Limited is that they are always in the movement to increase its banks network. It mainly increases the profitability and performance. Their recent branch is opened in Swabi where just two branches were active, they respond as they feel the need of it. Soneri Bank Limited is serving exacting community like (Agha Khanis). They are bearing in mind being their trustworthy customer. Agha Khan Hospital, Agha Khan Laboratories 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 maintaine banks credit rating. Soneri Bank Limited have be award an AA- for long period and A1+ for the short period and A+ for the term finance. This ranking is complete throughout the performance of the bank and it reflects a good departure rated bank.

57

 Bank also creates its website very easy and user friendly for the sake of better telecommunication and user interaction. It also provides bank statements on customers cell phones after making teamwork with some mobile phone companies such as Zong ,Ufone etc They have gained the trust of the leading companies just like Unilivers, Fuji cement factory have an account with Ssoneri Bank Limited. These companies are trading through Soneri Bank Limited. Faithful workforce and content Clients.

6.2 Weakness:
They have no advertising policy in their agenda, which could be difficult to achieve big clients. The Human resource department must be reorganized as their promotion policy is equal to zero. The learn Their lending strategy is defensive, they will prefer not to lent until they are not fully satisfied. Lake of the branches in other countries invites further cost for correspondent banking.
58

trainees are not well entertained nor they get something to

6.3 Opportunity:
It is compulsory to make progress with consistency as well as to adapt changes with the time, in order to meet the current competition In the current scenario, Soneri Bank Limited should infiltrate more target markets and gain various corporate customer as well as retail customer by growing their network. The adding to the exceptional regular banking, the SBL has earn a superior name by present particular products like Soneri car finance, ghar finance and personal finance. So the penetration of these products could improve the market share. Soneri Bank Limited has launched a new allotment known as Islamic Banking. This new product is being lunch for those customers who follow Islamic teachings. A better opportunity they can avail through advertisement, they can let people know easily about their quality services. Management should also think about opening branches in rural areas as well .it could give a big hand in spreading the market network Soneri Bank Limited can benefit from handsome return its financial support base by investing in capital markets in the foreign countries.

59

 They can facilitate their customers by various services such as , mobile banking , remote banking online banking , etc such facility increases the ease of customers and the more a customers feels comfortable the more he satisfies.

6.4 Threats:
As doing business, threats are element of business. Especially in this period nearly all of the financial institutions are functioning as Private Ltd Company and in front of threat from their competitor as well as new entrants. In order to keep as well as improve the market share, Soneri Bank Limited forever struggle to initiate new schemes /packages like Soneri generator finance etc. Due of high rate of inflation its almost difficult for people to save a part from their with banks, as well as they are unable to keep the money in current account for a month or two, so its difficult for banks in increasing their profit , As the era of globalization many foreign investor are attracted towards Pakistan and new banks are introduced in very short span of time, so along with other commercial banks Soneri Bank Limited should also show some flexibility to cope up with the change in market. Bank is also facing competitive problem from other banks which also provides same products SBL provides with flexible rates and returns such as
60

Home finance Car Finance Self Finance Education Loan

So management should have to show some flexibility and improve their quality services and also some flexibility in rates and return Another major treat is the uncertainty in political and economical conditions of Pakistan , as they are not certain and due to clashed with other countries and inside troubles its hard to work with fluency and efficiently , currently years the mergers and acquisitions are creating the market small

because of merging of two banks creates a big functional bank with can disturbs the client market of small and less expended banks also including SBL .

6.5

Conclusion of SWOT Analysis:

While Soneri Bank Limited has polite strengths and opportunities in the market, its market share is growing and it is increasing its twigs rapidly. So I concluded that Soneri Bank Limited is adopting and implementing on Growth Strategy.

61

Suggestions
Pretending to be the Manager of SBL, I would prefer to bring up the following changes.
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.

62

 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 Swabi 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.

63

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

practice their norms and values. To develop Soneri Bank Limited into an aggressive and dynamic financial institution having the capabilities to provide personalized service to the customers with cutting edge technology and a wide range of products, and during the process to ensure maximum return on assets with ultimate goal of serving the economy and society.

64

References
Official Website of Soneri Bank Limited Annual Report of Soneri Bank Limited Financial Report of Soneri Bank Limited Personal Interviews of the Managerial Staff of Soneri Bank Limited

65