INTERNSHIP REPORT ON

SONERI BANK OF PAKISTAN

SONERI BANK MAIN BRANCH (1876)
ABBOTTABAD

Submitted by:
Ali Saeed Awan
Roll # MBA Finance-048

Supervised by:
Dr.Amjad Rafiq

i
GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES
ABBOTTABAD
(Session 2011 to 2013)
INTERNSHIP REPORT ON
SONERI BANK OF PAKISTAN
MAIN BRANCH (0079)
ABBOTTABAD

Submitted by:
Ali Saeed Awan
Roll # MBA Finance-048
Finance

Supervised by:
Dr.Amjad Rafiq

GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES ABBOTTABAD ii

 This internship report is submitted in partial fulfillment of the
requirements for the degree of Master of Business Administration
awarded by Hazara University, Mansehra

DEDICATION

This report is dedicated to my parents for giving me this opportunity to attend this
degree and supporting me throughout my student life who acted as a backbone and
a major reason behind my accomplishment, my grand parents who have always
supported me with their prays and also to my honorable teachers and friends who
have always guided me.

GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES ABBOTTABAD iii

 TABLE OF CONTENTS

DEDICATION_____________________________________________________iii
__________________________________________________________________iv
_________________________________________________________________vii
ACKNOWLEDGEMENT____________________________________________vii
______________________vii
EXECUTIVE SUMMARY___________________________________________viii
CHAPTER 1 ______________________________________________________10
INTRODUCTION TO REPORT ______________________________________10
PURPOSE OF STUDY: .........................................................................................11
1.4.1 SECODARY DATA:...........................................................................................11
The data collected earlier by someone else and which has gone through
mathematical a statistical techniques after its collection, is called secondary data.
Methods used to collect secondary data include:.......................................................11
CHAPTER 2 INTRODUCTION TO SBL BANK LTD___________________13
2.1 HISTORY OF SBL:.............................................................................................13
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 186 branches
spread all over Pakistan including the Northern Areas of the country where no
other private bank has ventured so far. Pleasant and sophisticated atmosphere has
been provided in the branches which are all fully air-conditioned and
computerized................................................................................................................13
MISSION STATEMENT:...........................................................................................14
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............................................................................................................................14
“We have more time for you”......................................................................................14
2.8 ISLAMIC BANKING:...........................................................................................16
SBL now provides its customers with the reliable Islamic Financial Services and
support they require to successfully achieve their business objectives. Islamic
banking which in a short span of time has developed sufficient expertise, necessary
GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES ABBOTTABAD iv
 infrastructure, information technology, and manpower to run Islamic Banking
Operation and offer Islamic Banking Products.........................................................16
2.10 CORPORATE BANKING:...............................................................................................16
2.12 TOP LEVEL MANAGEMENT OF SBL:..........................................................17
CHAPTER 3 SLB OFFER SERVICES AND PRODUCTS______________20
3.1 PRODUCTS:..........................................................................................................20
3.1.1 SAVING ACCOUNT:.......................................................................................20
Saving accounts are opened on proper introduction with sums of credit balance
within certain limit for individual (single, joint) institutions, companies,
educational institutions etc. SBL has introduced various schemes under saving a/c
are following:................................................................................................................20
3.1.2 SONERI BACHAT ACCOUNT:.....................................................................20
Profit & Loss Sharing Soneri BACHAT Account may be opened by individuals,
partnerships, Joint Account holders, Companies, Corporate, Trusts e.t.c, on the
basis of Shariah Principles of Musharaka with the following unique facilities.......20
3.1.3 SONERI JARI ACCOUNT:...............................................................................21
Soneri Jari Account, on the basis of Qardh may be opened by individuals,
partnerships, JointAccount holders, Companies, Corporate, Trusts e.t.c, with
following unique facilities:...........................................................................................21
3.1.4 SONERI MEAADI ACCOUNT:........................................................................21
Profit & Loss Sharing Soneri BACHAT Account may be opened by individuals,
partnerships, Joint Account holders, Companies, Corporate, Trusts e.t.c, on the
basis of Shariah Principles of Musharaka with the following unique facilities.......21
3.1.5 SONERI MUNAFA ACCOUNT:.......................................................................22
3.2 OTHER PRODUCT / SERVICES:.......................................................................27
TELE BANKING SERVICES:...................................................................................30
SBL RUPEE TRAVELERS CHEQUE:.....................................................................30
SBL’s COMPETETIVE STRATGIES:......................................................................35
To be competitive the Bank has further reinforced its position in the Consumer
banking arena by streamlining and re-launching the consumer financing products
and introducing more convenience based solutions. With the re-launch of auto
finance and house finance products, the Bank pushed the products with full thrust.
The Bank has also launched a running finance facility against mortgage of
property........................................................................................................................35
3.7 USAGE OF TECHONOLOGY:...........................................................................35
Technology continued to play an important role in improving and expanding
product offerings. The Bank introduced more IT based products to cater to the
changing lifestyles and needs of the customers. SBL Virtual-Internet Banking was
launched with wide ranging banking solutions for the customers ranging from

GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES ABBOTTABAD v

individual to corporate customers and it has become the most preferred Internet
banking solution in the country...................................................................................35
ONLINE PAYMENT SYSTEM:................................................................................35
SBL also had the privilege of being the first Bank in Pakistan to launch the
comprehensive bill payment facility through its alternate delivery channels which
include Internet Banking, ATMs and SBL Call Centre, currently with six payment
partners. Similarly, the Bank also took initiatives to increase the usage of debit
facility. To provide timely and updated information, SBL has also provided a new
look to its website which is user friendly and considerably easy to browse.............35
3.9 BUILDING STRONG CUSTOMER RELATIONSHIP:....................................36
The Islamic Banking initiative has been very successful in attracting new customer,
both individuals and companies. Similarly, those relationships, which were
confined only to current account facility, have grown into stronger business
relationships. The branch network was expanded to Lahore and Multan during the
last year and recently been extended to Hyderabad and Faisalabad.......................36
The Bank plans to further expand its Islamic Banking branch network to other
metropolitan areas and also to introduce new sharia compliant banking solutions
to a wider range of customers for satisfying their individual and business needs.. .36
STRATEGIC INITIATIVES:.....................................................................................36
Commercial documents consists of following.............................................................39
3.16 ACCOUNTS TYPES:..........................................................................................44
Though in theory there many types of accounts but commonly account operators can be
classified in one of the following categories, each have different documentation requirements:
...................................................................................................................................................44
3.16. (1) INDIVIDUAL:...............................................................................................44
3.16. (2) JOINT:...........................................................................................................44
In case of joint a/c applicant mentions that how much person will operate the a/c.
Instruction are given for joint a/c such that the account shall be.............................44

GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES ABBOTTABAD vi

 ACKNOWLEDGEMENT

I offer my humblest thanks to ALMIGHTY ALLAH, The most Beneficent and the
Most Considerate and the entire source of all knowledge and wisdom. I thank
ALMIGHTY, ALLAH, who gave me the capacity to complete this internship
report. I offer my humblest respects to the HOLY PROPHET HAZRAT
MUHAMMAD (Peace Be upon Him) who is, forever a torch of guidance and
knowledge for humankind as a whole.

Firstly this report is aimed to studying and analyzing Soneri Bank of Pakistan in
general and SBP Main Branch, Abbottabad in particular. A report encompasses the
experience of the internee, his/her learning, and analysis in light of which
recommendations are made. The report is then properly analyzed and evaluated on
its description and analytical capabilities of its writer by Department of
management sciences. This internship report has been written on Soneri Bank
(SBP) Main Branch Abbottabad.

Secondly, the most respectable to me are all of my teachers who guided me, who
taught all the way from the stage when I was just a kid and up till today where I am
at the doorstep of my practical life. I cannot repay those favors back to them all in
my life.
I have no words for all of these people.

GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES ABBOTTABAD vii

 EXECUTIVE SUMMARY

This report is about Soneri Bank of Pakistan Main Branch. SBP is one of the
largest bank in the country. SBP is a gainful organization, having a large network
within and out of the Pakistan. To know about the Soneri Bank of Pakistan and its
functions it was important to work there. Being a student of MBA FINANCE the
purpose of this report is to critically define and describe different functions and
services offered by the bank to its valued customers and other visitors. To analyze
the performance of the bank employee and measure that how much effectively they
are working and make a financial analysis of it and suggest recommendations I was
there and I gather all of these information regarding banking.
The concentrated competition among banks, the privatization of the financial
institution and financial liberalization in general are gradually and continuously
making the banking sectors efficient and effective.
Because of the reasons mentioned above banking has always been the main field of
interest for most of the students of business administration especially in Finance
Management. It is also an academic requirement to undergo internship therefore the
main purpose behind this report is partial fulfillment of requirements, for the degree
of MBA in Finance. The report is categorized into the following chapters.
In the first chapter introduction to the report, background of study, scope of the
study, merits, limitations and scheme of the study are given. The second chapter is
about history of banks in Pakistan, introduction to the organization, its historical
background, role and functions of organization, its core values, and miscellanies
topics related to banking.

The third chapter is the major portion of the report. It covers the organizational
structure of SBP, the different departments working at SBP and the different

GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES ABBOTTABAD viii

financial products of SBP. The fourth chapter of the report covers the analysis of
report and the findings, which have been observed. It includes the financial
analysis. The end of the report is about recommendations based on the analysis in
chapter four. It mainly focuses on the recommendations pertaining to
management/administration, to let SBP capitalize on the opportunities and
overcome the weaknesses by using its strengths.

GOVERNMENT COLLEGE OF MANAGEMENT SCIENCES ABBOTTABAD ix

CHAPTER 1
INTRODUCTION TO REPORT
1.1 EVOLUTION OF BANKING / INDUSTRY:
Banking in fact is as ancient as human society. For ever since man came to realize the
importance of money as a medium of exchange. Perhaps these were the Babylonians
who developed banking system as early as in 2000B.C. It is evident that the temples
of Babylon were used as banks because of the prevalent respect and confidence in the
clergy.
A financial institution that is licensed to deal with money and its substitutes by
accepting time and demand deposits, making loans, and investing in securities. The
bank generates profits from the difference in the interest rates charged and paid.”
These are the following types of banks
 Central Bank
 Commercial Bank
 Industrial Bank
 Exchange Bank
 Saving Bank

On 14th August 1947, a new Soneri country with the name of Pakistan came into
being. In accordance with the provision of Indian Independence Act of 19to function
in Pakistan until 30th September 1948, at this time there were 19 foreign banks with
the status of small branch offices and only two Pakistani institutions i.e. Habib Bank,
and the Australasia Bank47, an expert committee was appointed to study the issue.

“Government of Pakistan inaugurated the State Bank of Pakistan on July 1, 1948.At

the end of June 1958, the number of branches of Pakistani banks increased from 195
to 307 and, the number of scheduled banks increased to 36 by June 1965.

“Every business student is required to undergo an internship for at least 6 weeks and
then write a comprehensive report covering all the areas studied. So I decided to
choose SBL for my internship.”

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PURPOSE OF STUDY:
 To familiarize with a business organization.
 To learn about the lending activities of financial statement institutions.
 To enable myself to understand how the key business process are carried out in
organization
 To explore fundamental technique of credit management and risk management
procedure of a bank.
 To know about the operation product and types of services being offered by a
bank.
 To know about banking and its operation and also its importance for any
economy.
 To develop my attitude conducive to effective interpersonal relationships
 To observe, analyze and interpret the relevant data competently and in a useful
manner.
 To understand the how to developing the service product.
 I want to enhance my knowledge of the discipline of banking administration.
 To learn about the lending activities of financial statement institutions.

1.2 SCOPE OF STUDY:

As an internee in Soneri Bank, the main focus of my study research was on general
banking procedures in one of the branches of Soneri Bank. These operations include
remittances, deposits, advances and Account opening.
Similarly different aspects of overall of Soneri Bank are also covered in this report
1.4 METHODOLOGY OF RESEARCH
1.4.1 SECODARY DATA:
The data collected earlier by someone else and which has gone
through mathematical a statistical techniques after its collection, is
called secondary data. Methods used to collect secondary data
include:
 Through consulting documents (SBL broachers, SBL manuals)

 Annual reports (www.soneri.com)

Page 11 of 66
  SBL data base

 Journal and Newspapers

 Internet

 Books (Financial Institutions in Pakistan by khawja Amjad saeed & Manual of

banking laws by A. W. Chaudhry).

1.5 IMPORTANCE OF REPORT:

Primary importance of doing internship in a reputed organization was to fulfill the
requirement of MBA degree, because internship is a compulsory part of MBA
program offered by Govt College of Management Sciences Abbottabad. Another
important aspect of the internship was to convert and apply my bookish knowledge
into practical. I was interested in Customer Services of the bank after my
specialization in finance. So I decided to choose bank for getting more practical and
latest knowledge.
1.6 LIMITATIONS OF REPORT:
Something is better than nothing. No matter how efficiently a study is
conducted, it cannot be perfect in all respects. This study was conducted in
accordance with the objectives of the study. The study may not include broad
explanations of facts and figures due to the nature of the study. Secondly, the
limitation, which affects the study, is the restriction on mentioning every fact of the
bank due to the problem of secrecy of the bank. In addition, the availability of
required data was a problem as all the documents and files are kept strictly under lock
and key due to their strictly confidential nature. Thirdly, the problem of short time
period also makes the analysis restricted as one cannot properly understand and thus
analyze all the operations of a bank just a very short time of eight weeks.

Page 12 of 66
 CHAPTER 2 INTRODUCTION TO SBL BANK
LTD
2.1 HISTORY OF SBL:
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 186
branches spread all over Pakistan including the Northern
Areas of the country where no other private bank has
ventured so far. Pleasant and sophisticated atmosphere has
been provided in the branches which are all fully air-
conditioned and computerized.
The bank is looking forward to attain growth through activating the areas of SMEs
and Agriculture credits. The Pakistan Credit rating Agency Limited (PACRA) has
maintained banks credit rating at “AA-” for long term and “A1+” for the short term
and “A+” for the Term Finance. Certificates reflecting bank’s well maintained risk
profile with preserved sound asset quality. We take this opportunity to thank the
Ministry of Finance and State bank of Pakistan their continued support and guidance.
The first ever bank to offer Internet banking services in Pakistan is spearheading its
way towards being a truly B2B (Business-to-Business) and B2C (Business-to-
Customer) E-commerce environment.
(Sources by website of Soneri Bank Limited)
2.2 BANK INTRODUCTION:
Soneri bank Limited is engaged in banking service, and operate more than 186
braches including four Islamic Banking Branches in Pakistan. Corporate finance
includes, 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.

Page 13 of 66
Commercial banking includes project finance, real estate, export finance, trade
finance, factoring and leasing. Nearly forty percent of our credit portfolio is related to
export financing and credit decisions are taken within 48 hours that is why we say.

2.3 DEVELOPMENTS:
The growth in every department of the bank has been observed. Following are some
key developments:

 Launching of different deposit schemes to increase saving level.

 Introduction of Rupee Traveler Cheques & Photo Credit Card for the first time
in Pakistan.

 Extended use of information technology, 184 online branches and 185 atm.

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”

2.4 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.
(Sources by website of Soneri Bank Limited)

2.6 OBJECTIVE:
 To achieve sustained growth and profitability in all areas of business.

Page 14 of 66
 To build and sustain a high performance culture, with a continuous improvement
focus.
 To develop a customer–service oriented culture with special emphasis on
customer care and convenience.
 To build an enabling environment, where employees are motivated to contribute
to their full potential.
 To effectively manage and mitigate all kinds of risks inherent in the banking
business.
 To optimize use of technology to ensure cost–effective operations, strengthening
of controls, efficient management information system, enhanced delivery
capability, and high service standards.
 To manage the Bank’s portfolio of businesses to achieve strong and sustainable
shareholder returns and to continuously build shareholder value.
 To deliver timely solutions that best meets the customers’ financial needs.
 To explore new avenues for growth and profitability

2.7 CORE VALUES:

The intrinsic values, which are the corner-stones of its corporate behavior, are:
 Commitment
 Integrity
 Fairness
 Teamwork
 Service

Page 15 of 66
 2.8 ISLAMIC BANKING:
SBL now provides its customers with the reliable Islamic
Financial Services and support they require to successfully
achieve their business objectives. Islamic banking which in a
short span of time has developed sufficient expertise,
necessary infrastructure, information technology, and
manpower to run Islamic Banking Operation and offer Islamic
Banking Products.

2.9 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)

2.10 CORPORATE BANKING:

 Corporate Banking offers tailor made products / solutions as required 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.

Page 16 of 66
2.11 NUMBER OF BRANCHES IN DIFFERENT LOCALITIE:

REGION NUMBER OF REGION NUMBER OF

BRANCHES BRANCHES

Lahore 23 Sialkot 2
Karachi 54 Rawalpindi 8
Faisalabad 2 Wizirabad 1
Peshawar 3 Sheikhupura 1
Faisalabad 3 Hyderabad 7
Mirpur(Azad 5 Multan 3
Kashmir)
Quetta 2 Gilgit 2
Islamabad 6 Sahiwal 1
Golarchi 1 Skardu 1
Hunza 1 Lodhran 2

Rahim Yar Khan 1 Bahawalpur 1

Gwadar 1 Abotabad 1
Okara 2 Sargodha 1

Hub chowki 1 Gujar Khan 1

Jehlum 1 Khanewal 1

Booni 1 Jati Town 1

Burewala 1 Gujranwala 1
Hafizabad 1

(Source: Annual Report 2010)

2.12 TOP LEVEL MANAGEMENT OF SBL:

Page 17 of 66
 Chairman
Mr. Alauddin Feerasta

Chief Executive Officer

Mr. Safarali K. Lakhani

Director

Mr. Nooruddin Feerasta

Director
Mr. Inam Elahi
Director

Mr.S. Ali Zafar

Director

Mr. Abdul Hayee(NIT Nominee)

Director

Mr Manzoor Ahmed (NIT Nominee)

Director

Mr. Zafar Alam Khan Sumbal

(Source: Annual Report 2010)

2.13 AUDIT COMMITTEE:

Chairman Mr. Nooruddin Feerasta

Member Mr.S.Ali Zafar

Member/Secratery Mr. Abdul Hayee

Member Mr.Shahid Anwar

(Source: Annual Report 2010)

Page 18 of 66
2.14 UNIQUE FEATURE:
Soneri Bank offered the following unique services to their customers which are given
below.
 Full range of corporate and retail banking services with special emphasis to
provide qualitative and competitive services to small and medium entrepreneurs.
 Highly professional and efficient treasury operations and a worldwide 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.
 Future products include unique Investment plans under Banc assurance business
in collaboration with M/s. New jubilee Life Insurance Company

Page 19 of 66
CHAPTER 3 SLB OFFER SERVICES AND
PRODUCTS

3.1 PRODUCTS:
3.1.1 SAVING ACCOUNT:
Saving accounts are opened on proper introduction with sums of
credit balance within certain limit for individual (single, joint)
institutions, companies, educational institutions etc. SBL has
introduced various schemes under saving a/c are following:
 Soneri Bachat Account

 Soneri Jari Account

 Soneri Meaadi Account

 Soneri Munafa Account

 Soneri Ikhtiyar Account

3.1.2 SONERI BACHAT ACCOUNT:

Profit & Loss Sharing Soneri BACHAT Account may be opened
by individuals, partnerships, Joint Account holders, Companies,
Corporate, Trusts e.t.c, on the basis of Shariah Principles of
Musharaka with the following unique facilities.
 Minimum amount for account opening Rs. 100/=.
 Profit calculated on monthly average and distributed on quarterly basis.
 Weightages declared at periodically intervals to be announced on the web-site,
and will be displayed on notice board.
 Fund utilized by the bank in accordance with Shariah Principles under the
supervision of proficient Shariah Advisor

Page 20 of 66
  Telephone banking, *E-Banking, *GSM Banking, *Web Banking, On-line
Banking, ATM Card / Debit Card and Utility Bills Payment.
 Hold Mail Instructions.
 Personal Financial Consultancy Services for Islamic Banking Products.

3.1.3 SONERI JARI ACCOUNT:

Soneri Jari Account, on the basis of Qardh may be opened by
individuals, partnerships, JointAccount holders, Companies,
Corporate, Trusts e.t.c, with following unique facilities:
 No limit for minimum or maximum balance.
 No limit for minimum or maximum withdrawal amount within the available
balance.
 Country wide cash deposit / withdrawal facility.
 Personalized Cheque book facility with no restriction on number of transaction.
 Hold Mail Instructions.
 Personal Financial Consultancy Services for Islamic Banking Products.

(Sources by www.Soneribank.com)
3.1.4 SONERI MEAADI ACCOUNT:
Profit & Loss Sharing Soneri BACHAT Account may be opened
by individuals, partnerships, Joint Account holders, Companies,
Corporate, Trusts e.t.c, on the basis of Shariah Principles of
Musharaka with the following unique facilities.

 Minimum deposit Rs.10,000/= for a fixed period of 1 month, 3 months, 6

months, 1 year, 2 years, 3 years and 5 years.
 Profit payment at the option of client i.e., monthly, quarterly, half yearly, yearly
or on maturity.
 Profit declared quarterly.
 Net profit (after deduction of expenses & management fee) to be shared on the
basis of weightages.

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 Weightages on the basis of tenor and option of profit payment will be announced
quarterly.
 Some of the facilities for Jari account are also applicable here.

3.1.5SONERI MUNAFA ACCOUNT:

 No Minimum amount for account opening.
 Profit will be calculated on daily products.
 Profit calculated on the basis of weightages for different tiers to benefit higher
balance with higher return.
 Extra premium on deposits of Rs. 10 Million and over.
 Weightages declared at periodically intervals to be announced on the web-site,
and will be displayed on notice board
 Soneri Munafa account with special operational facilities of Current Account.
 No limit for minimum or maximum withdrawal amount within the available
balance.
 Country wide cash deposit / withdrawal facility.
 Personalized Cheque book facility with no restriction on number of transaction.
 Fund utilized by the bank in accordance with Shariah Principles under the
supervision of proficient Shariah Advisor
 Pay orders and demand drafts payable country wide.
 Telephone banking, *E-Banking, *GSM Banking, *Web Banking, On-line
Banking, ATM Card / Debit Card and Utility Bills Payment.
 Hold Mail Instructions.
 Free Statements of Account after every six months.
 Personal Financial Consultancy Services for Islamic Banking Products.

3.1.6 SONERI IKHTIYAR ACCOUNT:

Ikhtiar current is a non profit account, flexible account with a great convenience and
Multiple FREE Services for individuals (in single or joint names), minors (to be
operated by the guardian), charitable institutions, autonomous corporations, limited
companies, firms, associations, educational institutions, etc.
Ikhtiar current account may be opened with minimum amount of Rs. 50,000/-. To
avail free facilities maintenance of balance on or above Rs. 50,000/- is mandatory.
Ikhtiar Current Account entitles account holder to avail amazing facilities such as:
Page 22 of 66
 Chequing Account facility with no limit on a number of transactions.
 Free Cash Deposit and Withdrawal facilities through any bank branch.
 Free Clearing facility to deposit cheques of other banks within the city.
 Free issuance of Pay orders.
 Online Funds Transfer through Cheques to any account across Pakistan through your
bank branch.
 Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers.
 Rupee Traveler’s Cheque through your bank branch.
 Import, Export and other business transactions.
 Standing Orders facilities.
 Safe Deposit Locker at designated branches.

(Sources by www.Soneribank.com)

3.1.7 TERM DEPOSITS:

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

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

Running Finance facility.

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

 Govt. Withholding Tax apply on all cash withdrawals over Rs. 25,000/- and
profit credited into account
 Zakat is deductable from Account however Zakat exemption forms are accepted

 Calculation of products on Term Deposit is computed on a daily product basis

Page 23 of 66
 Rate of Return
Term
p.a

1 month 8.00 %

3 month 8.50 %

6 month 9.00 %

1 year 10.50 %

2 years 11.50 %

3 years 12.50 %

(Sources by www.Soneribank.com)

3.1.8 SAVING ACCOUNT:

There are two type of saving account.
i. PLS SAVINGS
ii. SONERI SAVINGS

3.1.9 PLS SAVINGS:

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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:
 Chequing Account facility with no limit on a number of transactions
 Free Cash Deposit and Withdrawal facilities through your bank branch
 Free Clearing facility to deposit cheques of other banks within the city
 Online Funds Transfer through Cheques to any account across Pakistan
through your bank branch
 Online Cash Deposit, Withdrawal and Funds Transfer through cheques from
any of our branch across Pakistan
 Remittance facilities such as Payment Orders, Demand Draft, Telegraphic
Transfers and Free Rupee Traveler’s Cheque through your bank branch
 Standing Orders facilities
 Safe Deposit Locker at designated branches
 Statement of Account on six monthly basis
 Usage of Electronic Banking through:
• ATMs across Pakistan owned by Soneri Bank and other banks
• Shopping/purchasing/payments through outlets displaying ORIX sign
• Free Online Cash Withdrawal facility upto Rs. 300,000/- from
designated branches without Cheque Book
• Free 24-hours Telephone Banking and Call Centre facility
• Free 24/7 Online Funds Transfer to any customer of Soneri Bank
through ATMs owned by Soneri Bank
• 24/7 Online Inter Bank Funds Transfer through ATMs owned by
Soneri Bank to any account of increasing list of enabled 1 LINK member
banks
• Utility Bill Payments through ATM, Internet Banking and Call Centre
• Free 24/7 Internet Banking

Page 25 of 66
  All purchases and cash withdrawals made with the Soneri Banking Cards is
deducted directly from your bank account
 Free Cash Withdrawal on ATMs owned by Soneri Bank
 Govt. Withholding Tax apply on all cash withdrawals and profit credited into
account
 Zakat is deductable from Account however Zakat exemption forms are
accepted

3.1.10 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:
 Chequing Account facility with no limit on a number of transactions
 Free Cash Deposit and Withdrawal facilities through your bank branch
 Free Clearing facility to deposit cheques of other banks within the city
 Online Cash Deposit, Withdrawal and Funds Transfer through cheques from any
of our branch across Pakistan
 Standing Orders facilities
 Safe Deposit Locker at designated branches
 Statement of Account on six monthly basis
 Usage of Electronic Banking through
• ATMs across Pakistan owned by Soneri Bank and other banks
• Shopping/purchasing/payments through outlets displaying ORIX sign
• Free Online Cash Withdrawal facility up to Rs. 300,000/- from designated
branches without Cheque Book
• Free 24-hours Telephone Banking and Call Centre facility

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 • Free 24/7 Online Funds Transfer to any customer of Soneri Bank through
ATMs owned by Soneri Bank
• Utility Bill Payments through ATM, Internet Banking and Call Centre
• Free 24/7 Internet Banking
 All purchases and cash withdrawals made with the Soneri Visa Debit Cards is
deducted directly from your bank account
 Free Cash Withdrawal on ATMs owned by Soneri Bank

Balance Rate of
Return
P.A
Up to Rs. 100,000 5.00 %

Over Rs. 100,000 but up to Rs.1.0 Million 7.00 %

Over Rs. 1.0 Million but up to Rs. 5.0 8.00 %

Million
Over Rs. 5.0 Million but up to Rs. 10.0 9.00 %
Million

Over Rs. 10.0 Million 10.00%

3.2 OTHER PRODUCT / SERVICES:

The privatization process for the expansion and diversification of economic activities
in the country also demanded the introduction of new banking products. SBL took
initiative in this direction and for the first time SBL devised and marketed new
products and services with brand names to enter the varying requirements of its
diverse customers. SBL currently have following products or services in banking
sector that are making it more prominent in the banking sector:
 SME Finance.
 Agriculture Finance.
 SMS Alert.
 Tele Banking.
 Traveler Cheque.
3.2.1 SME FINANCE:

Page 27 of 66
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.

WE OFFER:
Fund & Non Fund Based Facilities.

 For fixed Asset Financing.

 For Working Capital Financing.
 For Trade Financing.

WHO CAN AVAIL:

Fund & Non Fund Based Facilities.
 Individuals.
 Proprietorship.
 Partnerships.
 Limited Companies.

WHY US:
Salient Features of SBL’s SMEs Products.
 Competitive Rates.
 Tailor – made need based Products.
 Quick Processing Time.
 Cash Flow – Based Lending.
 Flexible Repayment Period.

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Where we can Apply:
It’s easy to begin a relationship with SONEI BANK. Simply contact one of our Soneri
Bank Ltd Branch located in easy – to – reach places and ask the Manager/Relationship
Staff for details on how to apply for innovative Soneri SME – Specific Finance.

(Sources by Bank web site)

3.2.2 AGRICULTURE FINANCE:
Following agriculture finance facilities are provided by Soneri Bank Limited at its
selected branches.

3.2.2.1 Production Loans:

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

3.2.2.2 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.

3.2.2.3 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.

3.2.2.4 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.

3.2.2.5 Mark-up Rate:

 All Type of Agriculture Loans upto Rs. 6M Kibor +
100,000/- 2%

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 Working Capital for Live Stock i.e.(Dairy, 6M Kibor
Fisheries and Poultry etc) +3.5%
6M Kibor +
 Development Loan (All kinds)
4%
3.2.3 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:
(Sources by Bank web site)

TELE BANKING SERVICES:

 Soneri bank ranks customer convenience first and to achieve this objective it
provide round the clock tale banking facilities free of charge.
 Soneri Round-the-clock Telebanking provides the service at 24 hours a day and
365 days a year. Here some feature of the Tele Banking.

SBL RUPEE TRAVELERS CHEQUE:

 Secured way to Cash.
 Printed in the United Kingdom by renowned security printers with added security
features.
 Beautifully designed and available in convenient denomination of Rs. 5,000.
 Sold and encashable free of any service charge (Govt. Taxes / Duties applicable)
through all branches of Soneri Bank Limited. Also payable through Local
Clearing System.
 Minimum transaction time & speed Issuance & Encashment through State of Art
Technology.
 Prompt processing of refund of claim in case of Loss / Theft on reporting to the
nearest branch of Soneri Bank Limited.
 No validity - valid until encashed.

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3.3 SONERI CAR FINANCE:
Purchase of brand new:
 Un-registered cars for private use.
 Un-registered light commercial vehicles for private use.

3.3.1(A) Eligible Borrowers.

 Salaried Persons.
 Self Employed Professionals.
 Business Persons.

3.3.2(B) Financing Amount:

 For Cars upto 2000 CC: Rs. 1.0 Million
 For Cars exceeding 2000 CC: Rs. 2.0 Million

3.3.3 (C) Down Payments:

 On finance upto Rs. 1.0 M: Minimum 15% of the vehicle price.
 On finance over Rs. 1.0 M: Minimum 20% of the vehicle price.

3.3.4(D) Tenure:
 Maximum repayment period is 5 years

3.3.5(E) Mark-up Rate:

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

3.3.6(F) Processing Fee:

 Rs. 3000/- per approved application.

3.3.7(G) Service Length:

 Minimum 2 years of confirmed service with present employer in case of Salaried
Person.

3.3.8(H) Age:
At the time of Application for finance applicant’s age must not be more than;

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  55 years in case of Salaried Persons
 60 years in case of Self Employed / Business Persons
3.3.9(I) Debt Burden:
 Monthly repayment installments not to exceed 40% of the net take home salary or
40% of declared monthly income (taking into account other financing facilities
availed from other Banks/DFIs).

3.3.10 (J) Pre-Payment Penalties:

 2% pre-payment penalty on outstanding principal amount of finance being pre-
paid.

3.3.11(K) Late Payment Charges

 Rs. 500/- per installment per month.

3.3.12(L) 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.

3.3.13(M) Charges
 Documentation Charges at actual.
 Income Estimation Charges (if applicable).
 Subject to fulfillment of our eligibility criteria.
 Subject to change and revised rates to be communicated from time to time.

3.4 GHAR FINANCE:

Soneri Ghar Finance is the most affordable route to a home of your own. Offering a
maximum finance of Rs. 5 million and a convenient repayment period of up to 10
years, Soneri Bank is the best way to find the home of your choice".

3.4.1(A) Purpose: Purchase / Construction of residential Property for self-

occupancy.Extension / Renovation on own property.

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3.4.2(B) Financing Amount:
Purchase / Construction of residential property up to Rs. 5,000,000/-
Extension / Renovation on own property up to Rs. 2,000,000/-

3.4.3 (C) Payment Periods:

Purchase / Construction of residential Property up to 10 years.
Extension / Renovation on own property up to 7 years.

3.4.4 (D) Mark-up Rates:

Floating Mark-up rate @ 4.5%
above Prevailing SBP Discount Rate. Minimum 14% p.a.

3.4.5 (E) Fee, Legal Charges, Valuations:

Processing fee: Rs. 2500/- or 0.50% of the finance amount whichever is higher.
Legal/valuations charges Rs. 3000/-.

3.4.6(F)Eligibility:
Confirmed Permanent Employee/ Self Employed Professionals / Business
person.Minimum length of confirmed service with present employer must be at least
for 5 years.Minimum length of practice by Self Employed Professionals / Business
person must be at least for 2 years.
Applicant’s age must not be more than 60 years at the time of maturity of the finance
being applied for. Monthly repayment installments not to exceed 40% of the net take
home salary / 40% of declared monthly income should have no over due track record
from any bank in Pakistan. Life insurance covers for the loan amount.

3.5 PERSONAL FINANCE:

3.5.1(A) Eligible Borrowers:
Salaried persons in permanent employment with legal entities approved by the Bank
who meet our other conditions to qualify for the finance.
3.5.2(B) Purpose of Finance:
 To meet medical expenses for self or dependants of applicants.
 To meet educational expenses of applicant’s children.

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 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.

3.5.3(C) Maximum Amount of Finance:

Rs. 500,000 or five times of applicant’s one month gross salary, whichever is lower.

3.5.4(D) Mark-up Rate (Annualized):

17% p.a. on daily product of outstanding principal amount of finance.

3.5.5(E) Maximum Repayment Period:

Principal amount of finance plus mark-up thereon is repayable in equal monthly
installments within a maximum period of 5 years.

Page 34 of 66
SBL’s COMPETETIVE STRATGIES:
To be competitive the Bank has further reinforced its position in
the Consumer banking arena by streamlining and re-
launching the consumer financing products and introducing
more convenience based solutions. With the re-launch of auto
finance and house finance products, the Bank pushed the
products with full thrust. The Bank has also launched a
running finance facility against mortgage of property.
3.7 USAGE OF TECHONOLOGY:
Technology continued to play an important role in improving and
expanding product offerings. The Bank introduced more IT based
products to cater to the changing lifestyles and needs of the
customers. SBL Virtual-Internet Banking was launched with wide
ranging banking solutions for the customers ranging from
individual to corporate customers and it has become the most
preferred Internet banking solution in the country.
ONLINE PAYMENT SYSTEM:
SBL also had the privilege of being the first Bank in Pakistan
to launch the comprehensive bill payment facility through its
alternate delivery channels which include Internet Banking,
ATMs and SBL Call Centre, currently with six payment
partners. Similarly, the Bank also took initiatives to increase
the usage of debit facility. To provide timely and updated
information, SBL has also provided a new look to its website
which is user friendly and considerably easy to browse.

Page 35 of 66
 3.9 BUILDING STRONG CUSTOMER RELATIONSHIP:
The Islamic Banking initiative has been very successful in
attracting new customer, both individuals and companies.
Similarly, those relationships, which were confined only to current
account facility, have grown into stronger business relationships.
The branch network was expanded to Lahore and Multan during
the last year and recently been extended to Hyderabad and
Faisalabad.
The Bank plans to further expand its Islamic Banking branch
network to other metropolitan areas and also to introduce new
sharia compliant banking solutions to a wider range of customers
for satisfying their individual and business needs.

STRATEGIC INITIATIVES:
Some wide-ranging new strategic initiatives were also taken up which will be
important for the Bank in years to come.SBL's operations continued to be
streamlined with focus on rationalization of expenses, re-alignment of back-end
processing to increase productivity, enhancement of customer service standards,
process efficiency and controls. The Bank has taken the lead in introducing the
innovative concept of centralizing Trade Services in the country by providing
centralized foreign trade services to branches with a view to improve efficiency,
expertise and reduce delivery cost.

3.11 HUMAN RESOURCE MANAGEMENT:

Management of Human Resources has been one of our core focus areas. SBL is
committed towards attracting, retaining and motivating outstanding people. Challenge
for SBL is to provide an environment in which employees can better realize their
potential.
The Bank introduced 'reward for performance' where high potential officers were
identified and rewarded accordingly. In view of the competitive environment, the
Bank is focusing on performance and introducing a more robust performance
management system. SBL is also strongly committed to training its staff at all levels.

Page 36 of 66
3.12 ON-LINE BANKING:
On-Line Banking Services are available for all chequing account holder of our Soneri
all branches.

 Cash Payments of cheques drawn on any of our all branches.

 Cash Deposits in to customers account maintained at any of our all branches.
 Cash Cheques or Cheques Applicable Government Taxes/duties
 Under Collection if payable recoverable as per rules to third parties
 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.
 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.
 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.

(Sources by www.soneribank.com )

3.13 BILLS DEPARTMENT:

The department deals in bills for collection for a kind such as cheques, draft, pay
orders, call deposits etc with outstation branches of MCB or with other banks.
It provides service to their customer to get payment from the nearer bank at nominal
charges. The four main heads of bill departments are.
i. Outward bills for collection (OBC)
ii. Inward bills for collection (IBC)
iii. Outward documentary bills for collection (ODBC)
iv. Inward documentary bills for collection (IDBC)

3.13. 1. OUTWARD BILLS FOR COLLECTION (OBC):

Bill department receives cheques or other kinds of bills from it client whose account
must be opened in that branch. This branch forwards the check with schedule or

Page 37 of 66
covering letter to that branch on which bill is drawn. The checking officer of bills
department will cross the cheque with special bank stamp before forwarding the
cheque. OBC Register is also maintained for proper record keeping of outward bills.
This register is updated two times once at the confirmation advice of this check is
received form the payable branch. Bank gets a commission 0.25% on per hundred and
courier charges Rs.30 this service.
3.13.2 INWARD BILLS FOR COLLECTION (IBC):
The branches, which receive bills, have to verify these bills for payment. The party
account must be opened in that branch. The responsibility of this branch is to verify
the bills for collection within three days and send the advice to the originating branch.
In case of verification of bills is an approved bank debit the account of the respective
account holder and send a debit advice to originating branch and at the same time
credit the head office account.
For inward bills IBC Register is maintaining for keeping the proper record of the bills.

3.13.3. OUTWARD DOCUMENTARY BILLS FOR COLLECTION (ODBC):

Originating branch receives the documentary bills from their clients and sent them to
outstation branches of the same bank or other bank. Customer account must be
opened in that branch. The documentary bills are i.e. trust, receipt, railway receipt,
sale invoice, receipt of courier service etc. bank gets a commission 0.35% + postage
charges +courier service Charges of this service. Seller and purchaser both can avail
the facility of bank in case of selling and purchasing their product or goods.

3.13.4. INWARD DOCUMENTARY BILLS FOR COLLECTION (IDBC):

Bank receives the documentary bills from the other outstation branches of the same
bank or other bank for collection the amount from purchaser.
In this case back acts as buyer acts as a buyer’s bank. When bank receives the
documentary bills they send intimation to buyer about his arrival of goods. If the
buyer is the account holder then bank will debit his account otherwise purchaser
deposits the amount of the bill. Bank hand over these documents to purchaser, on
behalf of which buyer receives the goods. Bank also charges commission.

3.13.5 DOCUMENT:
Documents are the most important part of international trade. Without them trade
cannot be completed. Documents are of five types.
i. Commercial documents

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 ii. Transport documents
iii. Insurance documents
iv. Financial documents
v. Official documents
Commercial Documents:

Commercial documents consists of following

 Invoiced form
 Certificate of origin
 Weight note
 Packing list
 Quality or insurance certificate

3.14.1 TRANSPORT DOCUMENTS:

These documents are related with transfer of goods. These documents consist of
following forms.
 Airway bill
 Bill of landing
 Rail consignment note
 Roadway bill
 Combined transport bill o landing

3.14.2 INSURANCE DOCUMENTS:

Insurance documents consist of following forms
 Letter of insurance
 Insurance policy

3.14.3 FINANCIAL DOCUMENTS:

These documents are concerned with the payments of goods. These documents consist
of following forms
 Bill of exchange
 Clean bill
 Short bill
 Documentary bill

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  Long bill
 Bank bill
 Delivery against acceptance
 Delivery against payment
 Promissory note
3.14.4 OFFICIAL DOCUMENTS:
 Black listed certificate
 Consular invoice
 Health, vetenary, sanitation certificate
3.14.5 EXPORT:
Usually the exporter does not rely on the credit of a banker in the country of importer,
and insist on a confirmation from a banker carrying on business in his own country.
Thus this department of a bank helps the exporters to settle down their financial
affairs. For exporting it
is necessary for exporter to get export license from the chief controller of import and
export after registration. Documents are required for the registration such as N.I.C,
income tax.

Certificate, bank certificate that shows that the exporter is his account holder and has
a good dealing with them. In response to the letter of credit exporter submit the
following documents to the negotiating bank.

 Bill of exchange
 Invoice
 Bill of lading or Airway bill/railway receipt /truck receipt
 Insurance documents
 Packing list
 Any other documents, if so required.
The negotiating bank will send the same documents to the issuing bank. In accordance
with the terms and condition laid down in let of credit.

3.14.6 SECURITY OF DOCUMENT:

Whether documents received are meant for the opening bank and specifically for the
branch which established the letter of credit. The documents would be negotiated
within the validity of L/C. the goods have been shipped within the time allowed under

Page 40 of 66
L/C. the goods are mentioned in invoice and other documents (e.g. bill of lading,
packing list etc) are in accordance with merchandise clause L/C. Whether the
documents received pertains to L/C, established by the opening bank and the
documents negotiated are within or equal to L/C amount. In case where the value of
documents exceeds the L/C amount. The foreign bank may negotiate the documents
for amount being marginally excess or sends them on collection, remittance may be
allowed in excess subject to the following conditions.
 The amount does not exceed 5% of the amount of L/C subject to the maximum of
US 500/-$.
 The importers hold a valid import license against which the excess amount is
adjusted-provided remittance is affected within 1.5 year from the date of issue of
import license.

The name of the importer on the bill of exchange does not differ from that on the
import license. The tenor of the bill should be valid. See that the goods are not
shipped prior to the date of opening of L/C or the documents are not stated.

The goods are consigned or endorsed in the favor of the bank only opening the letter
of credit, and in no case it should be consigned to the importer directly.

3.14.7 RETIREMENT OF DOCUMENTS:

When the opening bank against a letter of credit receives documents. The customer
retires the documents under different arrangements e.g.
 Retirement against payment by the importer
 Retirement of documents in case of None-payment by the importer
 Retirement of document under trust receipt
Retirement of Documents under Trust Receipt
Shipping documents are released to the importer on trust, that he may get the goods
cleared from the custom authority by himself, sell the good, and later pay back the
bank. Trust receipt financing is limited to first class customers only as the bank
reposed fullest confidence in the importer. Documents are obtained from the
customer. The finance is provided for the period of 45 days only.

(Sources Syed Imran Husain report)

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 3.15 REMITTANCES:
NEGOTIABLE INSTRUMENTS
 Cheque
 Draft on Demand
 Pay orders
 ATM Cards
3.15.1 DRAFT ON DEMAND:
One party is not certain about other party. Then they requested for D.D instead of
cheque. D.D minimizes the risk. D.D is the banker’s instrument; bank issued the draft
after verifying the status of account of party who is making this note in the favor of
other party.After issuing the draft now its banks responsibility to pay the cash to the
party.
Note:
 Draft used for outside the city
 Its validity six month.

3.15.2 PAY ORDER:

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

3.15.3 ATM & CREDIT CARD’S:

Soneri Banking Card offers convenient and 24-Hours-a-day, 365 days a year access to
ATMs across the country. When traveling within Pakistan, use the Card at Soneri
Bank’s own network of ATMs and hundred of ATMs displaying either the 1-link or
M-Net symbols.

3.15.4 ELIGIBILITY:
You can also apply for a Debit Card services. If you are having Soneri Banking Card,
if you are maintaining a Soneri Bank PKR Current or Savings account Single or Joint
account with either signatory authorized to operate the account, a further
Page 42 of 66
supplementary card can also be issued to the second account holder. All Soneri
Banking Card holders use debit card facility.

3.15.5 ATM ACCESS ACROSS ALL OVER PAKISTAN:

Now cash withdrawals and Balance Inquiry services are available by any of the ATM
in Pakistan.
3.15.6 AVAILABLE SERVICES AT ALL ATM:
3.15.6 .1 CASH WITHDRAWAL:
You can withdraw cash from your account(s) up to Rs.25, 000 per day in multiples of
Rs.500, and Rs.1, 000 currency notes.

3.15.6.2 BALANCE ENQUIRY:

You can see the available balance in your account displayed on the screen or obtain a
printed advice
3.15.7 AT SONERI BANK ATMS:
3. 15.7.1 FAST CASH:
You can withdraw up to Rs.1000, 3000, 5000, 7000 and 10000 cash from your
account(s).

3.15.7.2 MINI-STATEMENT:
The ATM shall provide you with an instant mini-statement of your ATM linked
accounts (declared by you on the application) listing 10 last transactions in the
account(s).

3. 15.7.3 REQUESTS FOR CHEQUE BOOK:

Request for fresh chequebook may be made through the ATM. The Cheque book may
be collected from your branch after 3 working days against surrender of duly signed
chequebook Requisition slip.

3.15.7.4 REQUEST FOR STATEMENT OF ACCOUNT:

Request for a detailed statement is processed at the push of a button. Your branch at
your Registered Address shall dispatch requested statement within 4 working days.

3.15.8 PIN CHANGE:

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

Page 43 of 66
3.16 ACCOUNTS TYPES:
Though in theory there many types of accounts but commonly account operators can
be classified in one of the following categories, each have different documentation
requirements:

 Individual

 Joint

 Partnership

3.16. (1) INDIVIDUAL:

Only one person can operate this account. An individual who can fulfill the
requirement of bank can open this account. We can call it a personnel or individual
account.
3.16. (2) JOINT:
In case of joint a/c applicant mentions that how much person
will operate the a/c. Instruction are given for joint a/c such
that the account shall be
• Any one of us or survivor
• Any two/all of us jointly
In first case if one of the a/c holders died then the other partner can’t operate this a/c
individually without having the permission from court.
3.16. (3) PARTNERSHIP:
For partnership account, along with the application form signature card. Other
documents are also needed such as
 Registration certificate

 Agreement among partners

Page 44 of 66
CHAPTER 4 RECOMMENDATIONS

Recommendations are considered to be the most important part of an internship

report, without which no report is considered complete and meaningful. This part of
the report is based on the previous sections i.e. review and analysis. Moreover, for
bringing suggestions, discussions have been conducted with the staff of SBL officers,
who not only provided the basis for recommendations but also pointed out some
areas, where the change for the development is utmost important. Realizing the
importance of this section, efforts have been made to give feasible recommendations,
which are categorized under the following headings.

4.1 Human Resource Department:

The importance of manpower cannot be denied in any organization. In case of banks
it is the most valuable asset, because the bank is very sensitive organization and to be
in harmony with this sensitivity, need for proper human resource is felt badly.

4.2 Development of Managerial Leadership:

In services industries like banks the need of managerial skill is much more important.
It makes positive contribution towards higher effective results. Without development
of managerial leadership, the effective utilization of the human resource will be
impossible. SBL should also focus on this area and should avoid deficiencies in
managerial leadership, by applying the modern styles of management.

4.3 Political interference:

The political intervention in the bank needs to be stopped so that the top hierarchy
as well as the personnel placed at other important levels of the institution is not
changed Just on political grounds and the ongoing developmental work is not
obstructed. It will enable the management to formulate long term strategies and their
proper implementation because the long term policies, accurately based on calculated
risk, have proved the pivotal role players for organizational sustainable development.

4.4 Basis for Promotion:

A sizeable portion of the officers of SBL, are promoted in without test and interviews
to officers cadre. The promotion policy must be too tight and transparent that no one
may have the chance to be promoted on criteria other than the required qualification,

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experience and performance. As for the present excess staff, those not found up to the
required criteria, may be given GHS etc.

4.5 Management Changes on Merit:

In SBL, though vary rare fresh recruitments are made, and the bank faces saturation in
personnel, now clipping will be more helpful. This downsizing will leave the bank
with the staff, to be retained on the basis of ultimate meritocracy with zero tolerance
of incompetence. Now in this remaining workforce, a cultural change right from the
top management down to the front line, that better suits to the present day needs of
banking environment could be included through proper discipline and training.

4.6 Needs of change in Recruitment Policy:

It is important to say that the external level market is full of the required talent like
BBAs, M.Com MBAs etc,. But on the country only graduation with simple subjects is
still the requisite qualification for officer’s cadre, which has already worked amply in
the devastation of SBL. Therefore the recruitment qualification to the officer’s
framework should be enhanced for simple graduation, to professionally qualified
preferably Masters in their respective fields.

4.7 Refresher Courses:

The Human of the bank should frequently conduct meaningful refresher courses,
seminars and workshops with a view to improve the knowledge of the staff. Due to
severe competition and technological developments, the banking business is
experiencing rapid changes therefore the HRD should have arrangements for staff
trainings to cope with the new changes that may become threats for the interest of the
bank.

4.8 Computer Trainings:

The present conventional and orthodox training programmes need to be made

more comprehensive and reinforced with inclusion of computer training courses.

4.9 Training for Credit Management:

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 Special trainings on credit management should be imparted to the finance dealing
staff. Financing is main fountain bank’s income. Sound finance are extremely
necessary for opening of springs of the smooth inflow of the income.

4.10 Training with Clear Objectives:

Training needs assessment is necessary so that only the relevant staff is sent for
the training courses

4.11 Change in Appraisal System:

The present performance appraisal system is good. However, it needs to be

implemented in true sense. The drawbacks that are obvious like nepotism and
favoritism etc. need to rooted out and the culture of ultimate meritocracy in appraising
needs be inculcated.

4.12 Introduction of New Courses:

The human recourses division of the bank should focus on the restoration of the
corporate image of the bank by floating programmes such as, marketing excellence,
courses on corporate culture and others. Usually in businesses the wholesalers,
retailers and other intermediaries are finished by opening a network of the business
own outlets. It works as profit maximization devise. In my opinion the above two
programmes marketing excellence and corporate culture, added with the best counter
service and outdoor informal relationship with the potential customers by the line
managers will save the sum of money spent on various media of advertisement.

4.13 Cheaper means for Postings etc:

The culture of attachment of hopes with the elements outside SBL, for promotion,
transfers, postings, and other benefits requires eradication from the roots.

4.14 Customers Orientation:

Every entrepreneur if concerned about the success of his business, has to

understand, recognize, carefully and appropriately that his customer is “The King” of
the business system and the original spring of the business revenue. SBL should
recognize its customers as the mainstream of the bank’s revenue. They need to be
provided the deserved respect, quality and in time service and to be politely dealt
with.

4.15 Career Development:

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 As a matter of personnel policy HRD of SBL should prepare a plan showing the
future growth potential of employees on the job performance and evaluation and it
should be made known to the employees. In this regard, employees should be given
opportunities to show their performances, which would help in their career
development.

4.16 Credits and Advances Department:

The defaulted loans have showered the process of development of banking sectors
in Pakistan and have reduced the lending capacities of banks. In result of which
economic growth has reduced and rate of industrialization has become lowered.
Defaulted loans being the major cause for this depression, various suggestions and
recommendations have been given with focus on UBL to overcome the drawbacks of
this department.

4.17 Training for RM’s:

Exclusive mandatory training concerning all possible aspects like, financial

management and organizational management etc is required to be developed and
designed to achieve
i. Risk assessment ability

ii. Understanding of all legal matters

iii. Early detection ability Skill of any loans becoming bad

iv. Ability to develop and suggest sound strategies when needed.

 Fake financial presentation:

The bank should confirm that the provided figures by the borrowing organization
are fairly audited and that the auditors are on the approved list of the bank and they
have clear opinion about the affairs of company and nothing has been made secret.
The bank should have expert to examine various changes and developments for years
in areas of the borrowing corporation like;

i. Financial condition

ii. Cash generation

iii. Ability to pay back

iv. Operational performance

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 The focus should be on identifying and explaining significant changes and
developments in payback of loans, profit maximization, capital flow and operating
expenses etc. the bank should take critical view of the financial and should assess
changes occurred during the favorable and slack reason for the company.

 Poor Management:

A large number of industrial units and projects become sick because of poor
management. When a business becomes sick or fails it is unable to return the loans, it
has taken, and as a result such loans become bad debts, to avoid this, it is the
responsibility of SBL, to ensure that the company to which loan is sanctioned enjoys
good management skills and reputation. This can only be confirmed, if the bank
assesses the management of the borrower party by taking care of

i. Length and type of experience

ii. Qualification and integrity

iii. Reputation of managerial skills and style of management being used

iv. SWOT analysis

v. Financial procedures and documentation followed by employees

vi. Span of authority and responsibility

vii. Decision making skills of employees

viii. Risk management of employees

 Proper Documentation:

Loans become irrecoverable through court of law in case of default when the bank
fails to prove their claims against the delinquent borrower. If documents are obtained
properly as per terms of the loan it is not difficult for the counsel of the bank to get
decree against the defaulter. For proper and valid documentation the following aspects
must be kept in mind.

 The bank should confirm that standard loan documentation is in place for each
credit facility prior to disbursement. If the documents required are different from
the bank’s standard approved format, arrangement for vetting of the legal counsel.

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 Bank should ensure that the documentation are correct, complete and correspond
with the approved facilities. Also to ensure that blank spaces are filled, documents
are dated, signed and stamped, the signer is authorized to execute such documents
and signatures are verified.

 Act as custodian for legal borrowing documentation, lodging the documents in

vault, maintaining records as per bank operating procedure.

 Keep track of expiry of borrowing documents, insurance policies etc and follow
up for regulation of any approved documentation deferrals.

 Maintain documentation checklist, updating it properly each time new

documentation received.

 Maintaining computerized record of documentation.

 Division of documentation on the basis of sector, to which loan is given.

 Securities:

 Physical verification of the property offered as a security is must rather to rely

on the documents. Investigation should also be conducted if the property is of
ancestral nature or joint property.

 The competent consultants should do valuation of the property and mere

completion of formatives should not be taken into account.

 Maintain in safe custody all collateral i.e. shares, govt. securities, property title
deeds, mortgage documents etc.

 Bank must ensure receipt of periodical statements of stock and receivables

from customers, as per frequency specified in the credit approval.

 Bank should also do the periodic physical checking and evaluation of pledged
inventories as per terms of the approvals, i.e. using applicable margins, such that
the drawing power adequately covers out standings amount at all times.

 Bank officials must ensure that the goods hypothecated or pledged are covered
through a valid insurance policy with appropriate risk coverage, adequately
covering the bank’s amount.

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  Concerned bank staff should ensure compliance with the institutional credit
policies and procedures as laid down in the policy book or credit manual and
advised from time to time by the credit committee or top management.

 Ensure compliance with local regulatory requirements.

 Confirm timely submission of correct information in the prescribed format as

may be required by the central bank.

 Administrative Reforms:

• Fast resolving of loan defaults cases is must.

• Immediate steps to appoint more banking court’s judges.

• Exclusive judges are required for Lahore, Peshawar, Baluchistan, Sindh

High Courts.

• Informal body to be set up by the banks jointly with the bar councils and
chamber to monitor and publish performance of the banking courts. This
body will need statutory authority for protection from contempt.

• Use of debt recovery agencies regulated by law is to allow.

4.18 CRITICAL ANALYSES:

Critical analyses is the most important part of the report, because it depends on the
personal observation of the internee, only a good, keen and comprehensive analysis
leads to good recommendations for the improvement of the existing conditions.
Therefore in SBL, I have observed much of things and have analyzed them to the best
of my effort and knowledge. SBL faces the following problems.
4.18.1 Delegation of Authority:
Soneri Bank Limited to great extant is a centralized bank. The manager and other
officers of the branch have very limited authority, especially in the case of advances.
They have to take approval of the chief manager even in the case of minor issues.
Lack of delegation of authority creates problems and then the manager is not present
in his office and costumers have to wait for long, some times. There is top to bottom

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flow of authority and lower level of employees cannot participate in the decision
making process and only top level of authority take all the decisions. This completely
centralized decision-making decreases the interest and loyalty of the employees
toward organization.
4.18.2 Seniority Vs Performance promotions:
Promotion in SBL is purely on seniority basis rather than on performance. This really
de-motivate the employees because they know that it does not matter whether they
perform will or not.
4.18.3 Job Rotation:
Most of the employees work in a particular department and they specialize as well for
the customer. In case of absence of an employee, other employee cannot perform his
work. In this way bank not only losses the business but also results in dissatisfaction
of the customer.
4.18.4 Unequal Load of Work on Employees:
There is an unequal distribution of work on branch level. Some of the employees have
to do a lot of work. There is a heavy load of work on remittance department and only
one person is assigned to this department who has to do all the work. While other
departments like credit and advance there is very little to do and person assigned to
this department is killing the time.

4.18.5 Lack of Theoretical Knowledge of Employees:

There is a deficiency of theoretical knowledge of the employees of SBL. Although
their work is mostly routine and practical but some times lack of theory can be
dangerous for tem. They have to consult the Regional Manager Office or General
Manager Office, which is the wastage of time and resources. It also affects their
efficiency.
4.18.6 Discouragement of Small Depositors:
The stop members give proper attention and respect to those customers who have
deposited huge amount of money while the small depositors mostly the salaried
people are discouraged to open an account within the branch. In this way they
discourage saving habits in the general public, depriving the county from needed
savings.
4.18.7 On the Job Training:
It has been analyzed that most of the employees are not been provided job training,
which is very essential for better performance of employees.

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4.18.8 Lack of Discipline:
In SBL lack of discipline is observed in the way that some employees do not care
about the office timings. They usually come late in the morning similarly employees
take long leaves without any valid reason.
4.18.8 Organizational Objectives:
Most of the employees of SBL are not aware of the basic mission, core values and
objectives of the organization. So there is lack of coordination and integrated efforts
toward the achievement of organization objectives.
4.18.9 Excessive Paper Work:
There is an excessive paper work in MCB, which takes more time and reduces the
effective banking performance.
4.18.10 Lengthy Process of Loan:
To meet the immediate requirements of the business customers, there requires
finances on emergency basis but due to centralization of decision-making there are
unnecessary delay in sanctioning of loans, resulting in dissatisfaction of customers.

4.18.11 Inadequate Fringe Benefits:

The main purpose of fringes benefits is to retain the employees in the organization on
long term basis. The fringe benefits are always welcomed by the employees. It has
been analyzed that the fringe benefits package offered by SBL is not much attractive
as compared to other organizations. From the near past SBL has further more reduced
the fringe benefits of the employees that may result in de-motivation and reeducation
of existing employees.
4.18.12 The Nature of Work:
Mostly of the bank employees are sticking to one seat only with the result that they
become master of one particular job and loose their command on other banking.
4.18.13 Low Rate of Return:
Due to low rate of return the depositors are drawing their money from the banks and
depositing it with saving centers, which are offering a good rate of return as compared
to the banks.
4.18.14 Limited Application of Electric Media:
SBL is not utilizing the electric media for its promotional campaign. There is lack of
awareness among the customers and general public about the scheme offered by SBL.
4.18.15 Improper Working Condition:

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Most of the branches of SBL are facing the problem of shortage of space. This creates
hurdles in the free movement of the staff and customers and it is also risky from the
security point of view. There is lack of furniture and improper arrangement for the
customers.
4.18.16 Limited Foreign Operations:
SBL is a large organization and has the required potential and resources for foreign
operations. Presently there are five foreign branches, four in Sri Lanka and one in
Bahrain. Large number of Pakistani living in USA, UK and Middle East and there is
a need of extended foreign operations to provide banking services to these Pakistanis.
4.18.17 Application of Technology in Banking:
Most of SBL branches are not fully computerized, which is very important cater the
electronic needs of the customers and to provide the quick and quality services.

4.18.18 Political Interference:

Banks are not free from political influences. Due to political pressure on the
management for the sanctioning of the loan in favour of their own persons resulted in
huge amount of bad debts because in this way the banks are unable to get a good
security, which makes the recovery of the loan very difficult, and these loans are not
used for productive purposes.

14.19 SWOT ANALYSES

A SWOT analysis is an important tool to analyze the overall situation in which

organization is conducting its affairs. Each issue remains relevant and useful for
corporate strategy formulation.

The Threats, Opportunity, weakness and Strength. in summery can be stated for
SBL as below:

Treats:

 New competition in Domestic & Foreign Markets.

 Political instability results in inconsistent bank policies.

 Cutbacks in Compensations for the employees.

 Demoralized staff.

 Slower market growth.

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  Adverse govt. policies.

 Recession in economy.

 Changing customer needs.

Opportunities:

 Exploring New Markets.

 Diversification.

 Growth of financial market in Pakistan.

 Favorable govt. policies.

 Introduction of new products.

 Opening of Women Branches.

Weakness:

 Centralized authority.

 Less active Research and Development.

 Political instability.

 Lack of technology at branch level.

 Weak marketing efforts.

 Narrow Product Line.

 Lack of sound corporate culture.

 Not very attractive physical infrastructure of the branches.

Strength:

 Adaptation of Islamic banking.

 Adequate financial and human resources.

 Capable top management.

 Competitive skills of employees.

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  Acknowledge market leader.

 Over 50 years of experience with excellent reputation.

 Largest ATM network.

 Good competitive and innovative skills.

SWOT ANALYSIS OF MCB

Threats:

 Competitors are increasing in the private sector banking in Pakistan due to

privatization of the domestic bank.

 Increasing number of competitors as in the form of foreign banks in Pakistan,

whose services are mere advance due to modern techniques, and they provide
highly specialized and attractive services to their customers.

 Inconsistency in government policies due to political instability in the country,

threats the business and economic sector.

 Rapid growth of advanced global technologies.

 Strict regulations by the government over credit facilities to the customers as

well as to meet the prudential regulation.

 Changing of customer needs.

 Loss of confidence of overseas prospects and customers due to freezing of

accounts.

After SWOT & Critical analysis the top management of the bank should make a
committee for proper research and development to identify the customer needs and
design some new schemes and strategies to overcome the stated weakness and use the
opportunities. SBL should take some steps to face the threats and they have to
properly plan for the growth of the bank and introduce some new schemes as Mal-a-
Mall certificates, which was very effective. If SBL gives proper attention to their
customers then in few years time this bank will be the leading bank in Pakistan.

Opportunities:

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Due to efficient and experienced management group , SBL can also improve well and
expand its foreign operations successfully.

ATM network can be expanded its 24 hours cash facilities to other cities of the
country in order to meet the growing market demand

Increasing focus on different types of customers, SBL can open women branches
especially in those areas where women class want to get involved but could not, due
to environmental and cultural restrictions.

Foreign exchange department can be open in those cities branches where foreign
exchange activates are developing.

Growing policies of government on business and commerce sector provides SBL an

opportunity to efficiently meet with the business people’s requirement off instant cash
and financing facilities.

Customer’s feed back on different products and accounts has really improved the
bank performance and encouraged the atmosphere for other future policies.

SBL also has an opportunity to expand new technological advancement like: Tele
bank and Internet banking facilities in order to serve customer more efficiently and
according to the international or modern banking techni1ques.

Weaknesses:

Numbers of branches are decreasing every year, due to which, those employees at the
low profitable branches feel unsecured about their jobs.

Slow down in advances growth in the short-term as SBL focuses on quality customers
in the market.

New schemes are not introduced this year, due to which the attraction of the
customers in slowing down.

Customers having accounts with small amounts are not given same services and
dealing, which is given to those who have high accounts.

Management group is also having huge investments in other interest like: Textile and
Cement industries, which may divide their attention and resources also.

Political or government influence or pressure from some interest groups.

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System of recruitment and selection is not transparent and offering few training
programmes to junior level officers.

Strengths:

SBL has adopted Islamic Banking System as well, as there is a growing ned of
Islamization in our economy.37

SBL’s emphasis on consumer banking by providing consumers with innovative

saving schemes, products and services suit best as according to consumers life style.

The largest private sector bank in Pakistan with a network of 988 domestic and 5
foreign branches with 1 branch in the Export Processing Zone (EPZ)

Experience of operation as the bank was established in 1947.

First bank to privatized which has now become the leader in market with largest ATM
24 Hours online facility in the country.

Extension and improvement in services to domestic as well as foreign customers.

Attractive and higher interest rates and prizes on various accounts and products.

Increasing foreign operation by establishing branches in other countries.

Best optional po9licies for an employee, which has really improved their commitment
dedication and hard work towards the accomplishment of bonus’s objectives.

Human resource development and employment of technology towards modern

development.

24 hours cash access and safe payment products for high value transaction.

SBL intends to finance products for customers wanting instant loan facilities at SBL’s
branches.

Pioneer in introduction of SBL Master Card with photograph and Rupee Traveler
Cheques (RTCs) which minimize the degree of risk.

Attention and sensitivity prevailing in the country.

An efficient and experienced private management group also involved in other

interests like textile and cement industries.

Easy access for the customers through a high number of branches.

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CHAPTER 5: RECOMMENDATIONS / CONCLUSION

5.1 Recommendations:

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.

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 In addition to the excellent routine banking, it has earned a good name by offering

special products like Soneri car finance, ghar finance and personal finance. So the

penetration of these products could enhance the market share.

 SBL has launched another division know as Islamic Banking. This new aspect will

also attract a large number of people, who don’t want to deal with interest bearing

bank.

 If SBL focusing on advertisement it would be good for organization, because

promotions makes people know about the products of SBL.

 Management should also open new branches is rural areas to capture market

share.

 SBL can enjoy handsome return its funding base by investing in capital markets in

the foreign countries.

 If management of SBL giving facility of night banking to its customer. I think it

would also attract the other bank customers.

 They must focus on their own Marketing team, rather than outsourcing, their own

Marketing team launches new ads.

 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.

5.2 CONCLUSION:

Soneri bank Limited is engaged in banking service, and operate more than 186

braches including four Islamic Banking Branches in Pakistan. The bank operates in

four segment corporate finance, trading and sales, retail banking and commercial

banking.

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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, 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.

REFERENCES;
 www.soneribank.com (last accessed on June 29, 2011).
 SBL (2009); Annual Report Soneri Bank Limited For the year 2009.
 SBL (2010); Annual Report Soneri Bank Limited For the year 2010.
 Financial Statement: Google.com.pk
 Siddiqi, Asrar H (2007); Practices and law Banking in Pak, (8 th edition), Royal
Book Company, Khi.
 Financial statement, third edition by Gerald I .White, CFA.
 Financial Management, 11th edition by Brigham & Ehrhardt.

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Chapter 6 IMPLEMENTATION / ACTION PLAN

Every organization has its own strengths, weaknesses and possesses opportunities for
improvements. Nothing is impossible in this world, as someone has rightly said, an
impossible is often untried”.

Here are the implementation/action plans for the recommendations concluded in the
previous chapter.

6.1 BUSINESS DEVELOPMENT PLAN:

In order to develop the implementation procedure to reach business development

objective, the following steps should be taken:

6.2 CAMPAIGNS TO OPEN MORE ACCOUNTS:

The volume of business, profits and size of bank depends significantly upon the
number of account holders banking with it. In order to increase the number of
accounts, There should be a clear market plan. The strategy should be to either
penetrate a new market or increase the share of a given market.

The staff, branch managers and executives involved in business development should
prepare lists of different groups of prospective account holders and their neighbors,
friends and influential people and make efforts to open their volume of business and
deposit composition. This should be done in coordination with the various branches of
the Bank.

The campaign to op0en more and more accounts should be launched on yearly basis
by fixing monthly targets to open new accounts, and targets should be reviewed after
every month by the circles concerned in the Head Office.

6.3 CAMPAIGNS FOR MOBILIZATION OF DEPOSITS:

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Deposits are the main source of commercial bank funds and without them banks
cannot exist. It is very important for an individual bank to get funds, as its one basic
function is to put them to work safely and profitably.

The act of attracting funds is important but, likes so many other processes of a
salesmanship, is intangible. The bank can get funds by advertising for them, by direct
salutation, by contact through their officers, managers and executives. Thus, they can
get the customers and hold them ultimately by furnishing the kinds of banking
services that depositors feel is what they want should have.

One of the best way to retain deposits and increase is by courteous and efficient
services for the satisfaction of the needs and requirements of the customers, because:

“A satisfied customer is a best advertisement”.

6.4 CAMPAIGNS TO INCREASE BUSINESS SHARE:

Campaigns to secure highest share of business like imports, exports, issuance of

guarantee, remittances, bills identification of productive, secure and easily realizable
advances etc. should be launched. The management of the bank should prepare a
business developments plan strategy by taking into accounts the overall market
position of the banks in the business, the market share of the Bank and the proposed
plan to achieve the market share in the banking industry. In the light of the market
share, business development targets should be fixed on annual basis by fixing
monthly targets for imports, exports, issuance of letters of guarantee, bills etc. The
achievement of targets should be reviewed every monthly by the respective circles at
the Head Office and necessary instruction and guidelines provided to the respective
area control and zones where the business performances are not accordingly the set
targets.

6.5 TRAINING OF PERSONNEL:

We all know that the profitability, growth and survival of a bank depend upon the
business development. Therefore, the Banks should take steps to impart training to the
probationary officers, senior officers, managers and executives in modern business
and public relation.

Business development training is the process of imparting knowledge creating skills

and shaping attitude, work habits, and consists of testing, showing and teaching the
trainee and then monitoring his/her results and making constructive correction.

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6.6 MARKET RESEARCH & ANALSIS PLAN:

Before launching any venture or expansion plan, a detailed market research/analysis

must be carried out using any and/or of the following methods:

The best method is collecting first hand data from potential market through surveys.
The questionnaires must be unbiased and should not prompt the desired result.

Historical data, if available could be very useful in determining the potential and
trends.

In case, the lack of awareness about the service or non-existence of historical data
makes it impossible to conduct a research, data of the location, which have similar or
close characteristics, can be used.

6.7 PRODUCT DEVELOPMENT PLAN:

The method to achieve strategic objectives is to develop new products or services to

meet he needs of a target market segment. New product development plan of the Bank
should incorporate the following:

A description of the key elements of the new product or service.

 The return on investment to be achieved at certain specified demand levels.

 Degree of exclusivity of schemes to be developed.

 Effects on existing schemes or services and whether alternatives are available

by upgrading or improving existing products.

 Printing and packing techniques that may be incorporated in the new service
or scheme in order to increase sales of existing service.

 Interest rates of the new scheme or new service.

6.8 PLAN FOR MONITORING & EVALUATION OF SYSTEMS:

The systems and procedures of the Bank must be dynamic, flexible and subject to
continuous monitoring and evaluation. The pre-requisites of an effective monitoring
and evaluation process are as follows:

A good , open and unbiased feedback system should be established to identify the
problems and suggesting improvements.

The feedback system must include the customers and all the staff members from top
to bottom within the Bank.

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The feedback system must allow both, as needed and fixed interval information.

The problems and errors must be analyzed and removed. The suggestions should be
discussed at all concerned levels and implemented if found useful.

6.9 PERFORMANCE EVALUATION PLAN:

Periodic performance evaluation is very important function to be performed. The

objective of evaluation must not be limited for salary review only. It should include
and be performed in the following manner:

Objectives for each employee must be clearly defined in a measurable quantifiable

manner.

A methodical system must be adopted, whereby the employees also participate in the
evaluation process.

The system must be such that where the performance against the given objectives can
be measured numerically,

The performance review must be done at short intervals say quarterly. The periodical
performance reporting and meetings could be effective tools.

The performance review must be aimed at improving employees, skills and

productivity by identifying training needs.

The system must be adopted where personal liking and disliking could not pave
through.

6.10 HIRING PROCESS & JOB DESCRIPTION PLAN:

The human resource people believe that the failure of sub-ordinate is in fact failure of
manager as either he/she has not made the right selection or he/she has not able to
manage the will. The problem could be in the hiring process or unclear job
description. To enable employees most productive at all levels the Bank should
improve its hiring process and job description.

This can only be attained through the following.

 Requirement analysis of the position.

 Preparing qualification and experience specification in accordance with the

objectives to be from achieved the position.

 Implementing standardized selection criterion.

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  Offering reasonable compensation package in accordance with job of the
existing, experience, and qualification keeping in view the salary packages of
the existing stuff at the level.

 Preparing detailed job description.

 Arranging detailed orientation programmers.

 Setting objectives for the period.

6.11 INTERSHIP PROGRAMME PLAN:

Although the above selected method would help the selection of right employees a lot,
yet there are chances that candidates having stupefaction knowledge can get through
and be selected. Thus a lot of organization resources in term of time and money have
to be spent on them for their proper training.

One of the best and cost effective methods to select the right kind of people is to hire
graduates from business and management’s schools as internees. The internship
programme should spread over a period of at least six months. During the internship
period, a close watch should be kept on the internees. At the end of the internship
period, the performance of the internees should be evaluated and competent, diligent
and energetic internees should be hired on permanent basis.

6.12 CUSTOMER RETENTION PLAN:

Retaining a customer is more difficult than acquiring a customer. Any disruption in

continuity and quality of the service may result in a quick chum in the presence
competitive environment.

 The bank should set up the following for customer retaining:

 Effective and efficient complaint management system.

 Customer feedback system through independent source.

 Effective and efficient management information system.

 Proactive curtsy calls.

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