PREFACE

This report is based on Six weeks internship in “Sindh Bank Limited” ,

Hyderabad Main Branch , internship is necessary for the completion of
bachelor’s degree in business administration and this is considered to be
the most significant time when you are given an opportunity to learn,
observe and experience things that you have studied during your
bachelor’s program. These six weeks of internship provided lots of
knowledge regarding different methods and procedures applying in the
organization. Main idea behind this internship training is to make an
individual able to learn and experience the real professional life and apply
knowledge that he has learnt in the class room.
 DEDICATION

This effort is dedicated to my respected

“TEACHERS”

Whose guidance has transformed me into what I am…

“TO HUMBLE PARENTS”

Who did their best to uplift me to the heights of my ideal life and whose
tender care and affection inspired me to love mankind….
ACKNOWLEDGEMENT
All praises be to Allah, the Lord of the universe. May his blessing be upon
Prophet (PBUH), His household companions and all followers of the right
guidance till date of judgement.

&

I am grateful to Allah whose blessings have come along my ways in the

form of courage, good work-fellows and supporting teachers.

&

I am also thankful to the entire staff of Sindh Bank Limited, for their
support and inspiring guidance.

TABLE OF CONTENTS
CHAPTER 1
Bank and Banking System
1.1. History of Bank
1.2. Banking System in Pakistan
1.3. Basic Functions of Banks

CHAPTER 2
Introduction to Sindh Bank Limited
2.1. History of Sindh Bank Limited
2.2. Board of Directors
2.3. Vision Statement
2.4. Mission statement
2.5. Objectives of Sindh Bank Limited
2.6. Branch Network
2.7. Functions of Sindh Bank Limited
2.8. Target Market and Sector

CHAPTER 3
Departments of Sindh Bank Limited
3.1 Account Opening Department
3.2. Credit Department
3.3. Foreign Trade Department
3.4. Clearing Department
3.5. Remittance Department
3.6. Cash Department

PURPOSE OF STUDY
An internship is also called as a ‘Trail period’. The purpose of internship
is to provide student with real word working experiences. This study helps
student to completely understand the working phenomena. As internship is
necessary for all students of business administration that they should be,
acquainted with the practical application of business studies and should
gain experience. In this connection every student is required to undergo an
internship of at least six weeks in any organization. Business internship is
aimed to familiarize the students with the actual working conditions in any
organization by physical and participation in the business affairs and
should gain business experiences. There are some main purposes which
are stated below;
 The main purpose of this study is to fulfill the partial requirement
Business Administration (BBA) degree program.
 To understand ways of working. It provides knowledge for
procedural & functional activities performed in various areas of
organization.
 There was and an example chance for learning about the finance
mechanisms and administration Developments in Pakistan.
 To increase the communication skills among students. Because they
were to interact with the different practical oriented professionals
during the period of internship.
 To cop-up with the certain challenges that occurred during job.
 It gives strong exposure for the practical work done in the
organization. This program also prepared students for jobs before the
time there really join them.

INTRODUCTION
Preparing internship report is partial requirement for BBA student and is
very good and helpful task because it gives the practical exposure to the
student.
The reason for choosing SINDH BANK LIMITED for the internship is
that it is one of the leading banks of Pakistan. It was launched on
December 24, 2010. The Bank is currently operating through 330 branches
in169 cities. SBP offers different types of products according to the
customer.
Working as an internee and analyze all the functions and procedure the
golden chance for, as this bank deals hundreds of customers on daily basis.
By doing internship in such kind of organization that deals hundreds of
customers in one day provided me with lots of confidence that how to deal
and tackle different type of customers.
Sindh Bank Limited’s officials provide opportunities to the internee so
that he or she may learn in healthy environment and become able to face
the general public.
By availing the internship opportunity in this bank I saw a visible change
in me because it is the organization where customers come for their
various account types and transactions and during this process each
customer is properly dealt and this aspect provides confidence and people
handling skills me.

SUMMARY OF
INTERNSHIP WORK
Banking is indicated as primitive as human society forever since men
came to realize the importance of money as medium of exchange. Today
the word ‘Bank’ is used as a comprehensive term for a number of
institutions carrying on certain kinds of financial business. In practice the
word ‘Bank’ means, which borrow money from one class of people and
lends to another class of people for interest.
Sindh Bank Limited is one of the competitive bank who offers varieties of
products and services to his customers. From these products and services
some are similar to other and some are unique to Sindh Bank Limited. It
mainly deals in general banking advances and foreign trade.
The function of clearing house department of the bank represents as other
customers of the State Bank of Pakistan for exchange of Cheques drawn at
bank or otherwise.
During complete internship program it is observed that bank’s whole
system is completely centralized which increase the security of data of its
customers, also the computerized system ease the paper work load.

AIMS AND
OBJECTIVES OF
INTERNSHIP WORKS
Primary aims and objectives of internship program to help the student to
bridge the gap between academic theory and practical information the
student obtained the knowledge of the organizational structure and
operation. Through this research student observe condition of employment
and opportunity that are available both present and future. The objective of
internship is to enhance understanding of academic material by application
in the internship setting. Internships will provide students the opportunity
to test their interest in a particular career before permanent commitments
are made.
GENERAL AIMS
 Internship will develop skills in the application of theory to practical
work situations.
 Internship will develop skills and techniques directly applicable to
their careers.
 Internship will provide students the opportunity to understand
informal organizational interrelationships.
 Internship will provide the mode for students to build career before
permanent commitments are made.

GENERAL OBJECTIVES:
 General objective of internship is to develop skills.
 Internship expanded the knowledge in a specific field.
 Internship applied or tests the particular body of knowledge.
 To familiarize with the different departments in the organization and
their functioning.
 To enable to understand how the key business process are carried out
in organization.
SPECIFIC AIMS AND OBJECTIVES:
 Internship will prepared student to enter into full-time employment in
their area of specialization.
 Internship developed references that will enhance employment
opportunities.
 Internship will provide students with an in-depth knowledge of the
formal functional activities of a practicing organization.
 Internship program will enhance advancement possibilities of
graduates.

“Internship Program is basically develop skills & techniques of the

student directly application to their careers it will provide different
ways &opportunity to student to develop attitudes conductive to
effective interpersonal relationships. Internship will provide students
with an in-depth knowledge of the formal functional activities of a
participating organization”

SIGNIFICANCE OF
WORK
 The internship places a significant role in one’s careers & it give
knowledge and a good amount of experience to individual.
 Communication and leadership skills.
 Teaches you how to talk with different people gives knowledge
regarding customer satisfaction.
 Increase moral and confidence tell what practical life all about is and
place a very vital role in your career and professional life.
 To study the Administrative, Marketing, Customer Satisfaction and
Strategies of the Management.
 To enhance our writing and investigating skills.
 To have close look the services and facilities provided to the
customer.

LIMITATIONS
Study done with the sole purpose of doing best work but I perceived that
there were some limitations bounded with internee, which are listed
below;
 Time and space constraint
 Customers have given preference to internee
 Staff members feel reluctant to give banking operation in the hand of
internee
 Financial data is considered confidential in front of internee
 Bank staff was unwilling to disclose the policies of bank before the
internee
 Instead of all these limitations and problems I was able to complete
my internship and compiled this report due to full corporation and
assistance of earlier mentioned officers

CHAPTER # 01

BANK AND BANKING

SYSTEM
1.1 HISTORY OF BANKING:
According to the Professor Berton;
“Banks are the guardian and distributor of money”
Bank is a pipeline through which currency moves into and out of
circulation. May has always found himself in the pursuit of safety and
convenience. If we dig the history we will come to know that with the
revolution in science and technology banking field was also developed.

When man started giving money he felt himself insecure. He tried to save
his treasure underground. Later on man deposited his saving to the strong
person for safe keeping for which he paid wages. This gave idea for the
modern banking system.

1.2 BANKING SYSTEM IN PAKISTAN:

At the time of Independence there were 487 offices of schedule

banks. A committee was setup to look after their functions. In 1948,
Pakistan takeover the management of public debts and exchange
control from reverse bank of India. Banks having their registered
offices in Pakistan decline from 487 to 195. In order to make
necessary arrangements efforts were made for controlling the
committee of banks. Also it was required to establish central bank of
 Pakistan. Quaid-e-Azam inaugurated ‘State Bank of Pakistan’ and it
first issued currency notes of value 125.02 Cross. All small banks
were merged in bigger banks to create five major Pakistani banks.
These banks were controlled by Pakistani banking council. By
December 31, 1973, there were 14 scheduled Pakistani commercial
banks with 3,233 offices all over Pakistan and 74 offices in foreign
countries.
In 1947 commercial banks were nationalized. Mian Muhammad
Nawaz Sharif Prime Minister of Pakistan that time announced to
privatize the public sectors, sick industrial units and technical
institutions. In 1991, banking sector was privatized. Now Pakistan
has a well develop banking system consist of Central Bank,
Commercial Bank, Private Bank, Islamic Bank, Industrial Bank,
Saving Bank, Investment Bank, Exchange Bank.

1.3 BASIC FUNCTIONS OF BANK:

Banks are performing various functions like:
o Receive deposits
o Lending money
o Maintain accounts
o Provide ATM services
o Accept utility bills
o Lend different products like car, home, electronic appliances on
loan
 o Deals in online transactions
o Money transfer like Money Gram
o Perform foreign trade activities
o Transfer of funds
o Periodic payments
o Lockers
o Social welfare programs
o Bank overdraft

CHAPTER # 02

INTRODUCTION TO
SINDH BANK LIMITED
2.1 HISTORY OF SINDH BANK LIMITED:
Sindh Bank Limited was established on October 29, 2010 with seed
capital of Rs.10 billion, wholly subscribed by the Government of Sindh. It
commenced full-scale banking business in April 2011 and within just
seven years, emerged as one of the fastest growing commercial banks in
Pakistan, having established 330 on-line branches spread across 169 towns
and cities of Pakistan. Out of these, 14 branches are dedicated to Islamic
Banking.
Administratively, the branches are spread over the following four
geographical regions:
 North, comprising of 23 branches in KPK, & Mirpur AJK Area
 Central, comprising of 101 branches in Punjab & Islamabad
 South, comprising of 109 branches in Karachi & Balochistan; and
 Sindh Rural comprising of 97 branches.

2.2 BANK PROFILE:

Sindh Bank Limited is owned by Government of Sindh and started
it operations as Scheduled Commercial Bank from December 2010.
The bank was declared as scheduled bank of Pakistan by its
regulatory authority State Bank of Pakistan through its notification
No: BPRD (LD-06)/604-Sindh Bank/2010/10372 dated 24.12.2010
Sindh Bank Limited was former under the Sindh Bank Act 1995,
the said Act was passes by the competent authorities on 30.10.1995
during the government of Pakistan People Party PPP. Due to some
political issues bank was not incorporated in those days and was
opened in year 2010 again in the government of PPP.
Now Sindh Bank Limited has a branch network over 330 branches
country wide and expanding the same in full stream.
Sindh Bank Limited is the first bank of Pakistan with such a high
growth rate and gaining profit or Rs. 3 billion within its
incorporation.

2.3 BOARD OF DIRECTORS:

 Mr. Anis A. khan Chairman
 Mr. Sajid Jamal Abro Finance Secretary
 Mr. Asif Jahangir Director
 Mr. Muhammad Aftab Alam Director
 Mr. Javaid Bashir Sheikh Director
 Mr. Imran Samad President & CEO

2.4 VISION STATEMENT:

Our vision is to be a leading bank which would play a positive role to
generate economic activities for empowering the people by meeting their
financial needs for running a successful business and create employment
opportunities.

2.5 MISSION:
To develop as a leading Commercial Bank in the country by meeting its
stated objectives of promoting economic development of the country in
general and in the Province of Sindh in particular.
2.6 STATEMENET OF ETHICS:
This Statement of Ethics and Business Practices applies to all Employees
of Sindh Bank Limited. It strives to set forth certain standards and rules
of conduct followed in the corporate entities, globally. Our culture of
ethics and integrity shall from the beginning define who we are as a Bank
and how we as colleagues treat each other, our customers and
stakeholders.
This Statement of Ethics and Business Practices attempts to introduce the
Employees to the types of attitudes and conduct that create an honest, fair,
and legal workplace. It will be surrounded by 3 basic beliefs:
 Respect for the Individual
 Service to the Customer
 Striving for excellence

2.7 ORGANIZATIONAL BEHAVIOR:

Sindh Bank Limited is in process of developing and
maintaining its image amongst the customers as a prime service
provider bank which care for customers in a manner that is
concerned for economic development of country in general and province
Sindh particularly. Sindh Bank Limited strives for achieving
maximum level of satisfaction in its customers which will
automatically generate Customer as Loyalty in the customer which will
ultimately add to the bank.
All employees of Sindh Bank Limited are encourages to strive for
excellence and achieve high standards of performance along with
reward system for those employees who achieve excellence in
achieving the level of excellence in their particular fields.
2.8 ACHIEVEMENTS:
Sindh Bank Limited is the first bank in the country which has achieved
milestone of opening 200 branches and make highest profit within first
three years of opening. Sindh Bank Limited will be opening its
Islamic Banking Branches across the country from April 2014

2.9 ORGANIZATIONAL STRUCTURE:

Sindh Bank Limited is registered and has to abide by all the rules and
regulations of Banking Companies ordinance 1964 and also the
regulations framed time to time from State Bank of Pakistan. Board of
directors consists of seven members who are headed by Mr. Muhammad
Ejaz Chaudhry.
Different departments of Sindh Bank Limited are

 IT Division

 Finance Division

 Branch Banking/ Banking operations

 HR Division

 Legal Division

 Treasury Division

 Compliance Division
  Audit Division

2.7 OBJECTIVES OF SINDH BANK LTD:

Sindh Bank’s vision for promoting economic activity to empower the
people of Pakistan and create employment opportunity brings upon it an
onerous responsibility to deliver results.
Thus the Bank’s policies are focused on:
o Enhancing small farmer access to institutional credit and supporting
national strategy for increasing agricultural output by funding farm and
non-farm projects.
o Promoting SME sector by providing financial solutions to small and
medium sized entrepreneurs.
o Funding projects yielding economic benefits to the country.
o Supporting projects that empower women.
o Providing banking facilities in the unbanked areas particularly in the
province of Sindh.
o Providing e-banking services to enable Bank’s customers to have fast
and easy access meeting their banking requirements by installing the
most modern and efficient technological applications that satisfy
customers’ expectations.
o Fulfilling its Corporate Social Responsibility in all segments of the
Society, particularly for promoting and enhancing education in
Pakistan, by supporting and providing interest free loans to meritorious
students for higher education, with job guarantee in Sindh Bank.
o Laying a sound foundation for the bank and delivering attractive value
for the shareholders’ investment while remaining within the ambit of
regulatory requirements.
2.8 BRANCH NETWORK:
Sindh Bank Limited has expanded its branch network and now it stands at
network of 330 branches in order to enhance access and for the
convenience of their customers. To make their banking service available
for more and more customer, they have embarked upon the rapid network
expansion program, aiming of providing their services available not only
in the cities but also internationally.

2.9 FUNCTIONS OF SINDH BANK LTD:

Sindh Bank Limited has some
o Primary Functions
o Secondary Functions
Primary Functions:
The primary functions of a bank are also known as banking functions.
They are the main functions of a bank. These primary functions of bank
are explained below;

1. Accepting Deposits:
The bank collects deposits from the public. These deposits can be of
different types. Such as;
 Saving Deposits
 Fixed Deposits
 Current Deposits
 Recurring Deposits
Saving Deposits:
This is type of deposits encourages saving habit among the public.
Savings Accounts are profit bearing and profit is paid semiannually, in
January and July every year. Profit is calculated on the basis of average
monthly credit balance in the account. Rate of profit is linked with the
SBP repo rate and minimum profit rate should be 50 basis points below
the repo rate. In case of any revision in SBP repo rate profit rates are
changed effective from the 1st day of subsequent month.

Fixed Deposits:
Lump sum amount is deposited at one time for a specific period. Higher
rate of interest is paid, which varies with the period of deposits.
Withdrawals are not allowed before the expiry of the period. Those who
have surplus funds go for fixed deposits.

Current Deposits:
This type of account is opened by businessmen. Withdrawals are freely
allowed. No interest is paid. In fact, there are service charges. The account
holders can get the benefit of overdraft facility.

Recurring Deposits:
This type of account is operated by salaries persons and petty traders. A
certain sum of money is periodically deposited into the bank. Withdrawals
are permitted only after the expiry of certain period. A higher rate of
interest is paid.

2. Granting Loans And Advances:

The bank advances loan to the business community and other members
of the public. The rate charged is higher than what it pays on deposits.
The difference in the interest rate (lending rate and the deposit rate) is
its profit. These types of bank loans and advances are;
 Overdraft
 Cash Credits
  Loan
 Discounting of Bill of Exchange

Overdraft:
This type of advances is given to current account holders. No separate
account is maintained. All entries are made in the current account. A
certain amount is sanctioned as overdraft which can be withdrawal within
a certain period of time say three months or so. Interest is charged on
actual amount withdrawn. An overdraft facility is granted against a
collateral security. It is sanctioned to businessmen and firms.

Cash Credit:
The client is allowed cash credit up to a specific limit is fixed in advance.
It can be given to current account holders as well as to others who do not
have an account with bank. Separate cash credit account is maintained.
Interest is charged on the amount withdrawn in excess of limit. The cash
credit is given against the security of tangible assets and / or guarantees.
The advance is given for a longer period and larger amount of loan is
sanctioned than that of overdraft.

Loan:
It is normally for short term say a period of one year or medium term say
a period of five years. Now-a-days, banks do lend money for long term.
Repayment of money can be in the form of installments spread over a
period of time or in a lump sum amount. Interest is charged on the actual
amount sanctioned, whether withdrawn or not. The rate of interest may be
slightly lower than what is charged on overdrafts and cash credits. Loans
normally secured against tangible assets of the company.
Discounting of Bills of Exchange:
The bank can advance money by discounting or by purchasing bills of
exchange both domestic and foreign bills. The bank pays the bill amount
to the drawer or the beneficiary of the bill by deducting usual discount
charges. On maturity, the bill is presented to the drawee or acceptor of the
bill and the amount is collected.

Secondary functions:
The bank performs a number of secondary functions, also called as non-
banking functions. These important secondary functions of banks are
explained below;

1. Agency Functions:
The bank acts as an agent of its customers. The bank performs a
number of agency functions which includes;
 Transfer of Funds
 Collective of Cheques
 Periodic Payments
 Portfolio Management
 Periodic Collections
 Other Agency Functions

Transfer of Funds:
The bank transfer funds from one branch to another or from one place to
another.
Collection of Cheques:
The bank collects the money of the cheques through clearing selection of
its customer. The bank also collects money of the bills of exchange.
Periodic Payments:
On the instructions of the client, the bank periodic payments in respect of
electricity bills, rent, etc.
Portfolio Management:
The bank also undertakes to purchase and sell the shares and debentures
on behalf of the clients and accordingly debits or credits the account. This
facility is called Portfolio Management.
Periodic Collections:
The bank collects salary, pension, dividend, and such other periodic
collections on behalf of the client.
Other Agency Functions:
They act as trustees, executors, advisors, and administrator on behalf of its
clients. They act as representatives of clients to deal with other banks and
institutions.
2. General Utility Functions:

The bank also performs general utility functions, such as:-

 Issue of Drafts, Letter of Credits, etc
 Locker Facility
 Underwriting of Shares
 Dealing in Foreign Exchange
 Project Reports
 Social Welfare Program
 Other Utility Functions

Issue of Drafts and Letter of Credits:

Banks issue drafts for transferring money from one place to another. It
also issues letter of credit, especially in case of import trade. It also issues
traveler’s cheques.
Locker Facility:
The bank provides a locker facility for the safe custody of valuable
documents, gold ornaments and other valuables.
Underwriting of Shares:
The bank underwrites shares and debentures through its merchant banking
divisions.
Dealing in Foreign Exchange:
The commercial banks are allowed by RBI to deal in foreign exchange.
Project Report:
The bank may also undertake to prepare project reports on behalf of its
client.
Social Welfare Program:
It undertakes social welfare programs, such as adult literacy programs,
public welfare campaigns, etc
Other Utility Functions:
It acts as a referee to financial standing of customers. It collects credit
worthiness information about clients of its customers. It provides market
information to its customers, etc. It provides travelers cheque facility.

2.10 Target Market and Sector:

 Government Agencies
 Foreign Citizen
  Non-Government Organizations
 Local Business
 Construction
 Trading/Logistic
 Telecom
CHAPTER # 03

DEPARTMENTS OF
SINDH BANK LTD:
During my internship I visited the following departments of Sindh Bank
Limited:
 Account Opening Department
 Clearance Department
 Credit Department
 Cash Department
 Foreign Trade Department

3.1 Account Opening Department:

There are different types of accounts which are differing in terms of their
deposits: