INTERNSHIP REPORT ON

SONERI BANK

SUBMITTED TO:

Mr.Abid Rashid
SUBMITTED BY:
NAME:
CLASS:

Madiha Rauf

REGISTRATION NO:

2014-ag-142

SESSION:

2014-2016

M.COM

INSTITUTE OF BUSINESS MANAGEMENT SCIENCE

UNIVERSITY OF AGRICULTURE, FAISALABAD

Dedication

I dedicated this research project to Almighty Allah.

This internship report is dedicated my Parents and Teacher because whatever I am

its due to my Parents and my Teachers make me able to face different challenges
and achieve those challenges & all those who have a soft corner for me in their
hearts.

ACKNOWLEDGMENT

With the name of Allah most Merciful and Beneficent

I am very thankful to Almighty Allah who gave us the opportunities, courage and
insight to explore more knowledge to complete this research project. I am also
thankful to my parents whose prayers always supported me in very task.
I am glad to express my gratitude to my supervisor Mr.Abid Rashid the Lecturer of
IBMS Department and also a big thank to the University of Agriculture
Faisalabad, which provides me the opportunities to improve my skills.

Table of Contents
DEDICATION...............................................................................................................................................................3
PREFACE......................................................................................................................................................................4
ACKNOWLEDGEMENT............................................................................................................................................5
EXECUTIVE SUMMARY...........................................................................................................................................6
HISTORY OF BANK...................................................................................................................................................8
BANK INTRODUCTION............................................................................................................................................8
BANK BRANCHES....................................................................................................................................................10
NATURE OF THE ORGANIZATION.....................................................................................................................11
UNIQUE FEATURE...................................................................................................................................................13
BUSINESS VOLUME................................................................................................................................................15
VISION STATEMENT...............................................................................................................................................16
MISSION STATEMENT............................................................................................................................................17
BOARD OF DIRECTORS.........................................................................................................................................18
ORGANIZATION STRUCTURE.............................................................................................................................19
DEPARTMENTS OF SBL.........................................................................................................................................21

Introductions of the Departments in Which I Worked As Internee 22

GENERAL BANKING...............................................................................................................................................23
A) ACCOUNT OPENING........................................................................................................................24
B) CLAERING..........................................................................................................................................28
C) REMITTANCES..................................................................................................................................32
D) CASH....................................................................................................................................................35
TRADE DEPARTMENT ...........................................................................................................................................36
A) EXPORTS............................................................................................................................................37
B) IMPORTS............................................................................................................................................43
CREDITS DEPARTMENTS.....................................................................................................................................45
A) CONSUMER FINANCE....................................................................................................................46
B) CORPORATE FINANCE..................................................................................................................50
C) AGRICULTURE FINANCE..............................................................................................................52
DUTIES ACCOMPIISHMENT................................................................................................................................55
APPLICATION OF CLASS ROOM LEARING IN ORGANIZATION...............................................................56
ANALYSIS...................................................................................................................................................................57
A) FINANCIAL ANALYSIS....................................................................................................................58
B) PEST......................................................................................................................................................69
C) SWOT ANALYSIS...............................................................................................................................70
SUGGESTIONS..........................................................................................................................................................73
CONCLUSION...........................................................................................................................................................74
APPENDIX..................................................................................................................................................................75

A) LETTER OF NOMINATION...........................................................................................................76
B) LETTER OF COMPLETION OF INTERNSHIP.........................................................................77

EXECUTIVE SUMMARY

The banking structure in Pakistan comprises of the following types, State Bank of Pakistan,
Commercial bank of Pakistan, Exchange Bank, Saving Bank, cooperative banks, specialized
credit institutions.
SONERI BANK LIMITED Incorporated on September 28, 1991 the first branch of Bank
formally opened doors for operations in Lahore on April 16, 1992 followed by Karachi Branch
on May 09, 1992. The bank now operates with 118 branches spread all over Pakistan including
the Northern Areas of the country where no other private bank has ventured so far. Expansion of
branches is based on a policy of maintaining a balance between the urban and rural areas with a
view to offering services even in the remote areas of Pakistan.
In six week internship program, I have worked in different departments like General banking,
trade department and credits department. I have learned about the banking from experienced
managers running these departments.
This report contains the information about SBL that I have gathered during my six weeks
internship period. This report basically deals in General banking, trade and credits where I
worked.
The bank is using SWIFT for transfer of information about imports and exports. SBL Multan
branch basically cover three departments like General Banking Department, Trade department
and credit department.
To open an account the customer has to meet Operations Managers with an introducer. The
introducer must have an account in bank, or introducer might be the employee of the bank.
Soneri bank strictly followed the account opening procedure. The bank cant open an account of
customer before the verifications comes from NADRA. SBL has different types of account like,
Basic Banking A/C. Current account, PLS and Soneri PLS A/C.
They store all the information of their customers in data base. After entering data, they assigned
customer an ID is known as Customer Relationship Management ID. He told me with the help
of this ID their different branches can easily get information about customer account.

HISTORY
SONERI BANK LIMITED Incorporated on September 28, 1991 the first branch of Bank
formally opened doors for operations in Lahore on April 16, 1992 followed by Karachi Branch
on May 09, 1992. The bank now operates with 118 branches spread all over Pakistan including
the Northern Areas of the country where no other private bank has ventured so far. Expansion of
branches is based on a policy of maintaining a balance between the urban and rural areas with a
view to offering services even in the remote areas of Pakistan. 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 banks 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.
BANK INTRODUCTION
Soneri bank Limited is engaged in banking service, and operate more than 118 braches including
four Islamic Banking Branches in Pakistan. The bank operates in four segment corporate
finance, trading and sales, retail banking and commercial banking. Corporate finance includes
syndicated financing and services provided in connection with mergers and acquisitions,
underwriting, privatization, securitizations, debt, equity, syndication, Initial public offers (IPO)
and secondary private placement. Trading and sale segment includes fixed income, equity,
foreign exchange, commodities, credit, funding, own position securities, brokerage debt and
prime brokerage. Retail banking segment includes retail lending and deposit, banking services,
private lending and deposit, trust and estates investment advice and merchant/ commercial/
corporate cards. Commercial banking includes project finance, real estate, export finance, trade
finance, factoring and leasing. The essence of our business philosophy is to cater to the banking
requirements of small & medium sized entrepreneurs, providing them qualitative & competitive
services with emphasis on encouraging exports. Nearly forty percent of our credit portfolio is
related to export financing and credit decisions are taken within 48 hours that is why we say.
Date Establish:
September 28, 1991
Chairman
Mr. Alauddin Feerasta
Representative Officer

Tasaduq Gardezi

HEAD OFFICE:
87, Shahrah-e-Quaid-e- Azam,
P.O. Box No# 49, Lahore
Tel +92426368142
Fax+9242-6368138
Swift: SONEPKKALHR email. main.lahore@soneribank.com
CENTRAL OFFICE
5th Floor, Al-Rahim Tower,
I.I. Chundrigar Road, P.O.Box 5856, Karachi
Tel: 021.2439562-67
Swift: SONEPKAXXX e-mail: info@soneribank.com
SONERI BANK LIMITED (MULTAN)
Main branch: Mall plaza, Quaid-e-Azam Road, Multan Cantt., Pakistan.
Tel: 061-4512884, 4519927 UAN# 111-567-890
Swift: SONEPKKAMTN email: main.multan@soneribank.com

Main branches in the different cities of the Pakistan

Region

Number of Branches

Lahore
Karachi
Faisalabad
Peshawar
Faisalabad
Mirpur (Azad Kashmir)
Quetta
Islamabad
Gujranwala
Sialkot
Rawalpindi
Wizirabad
Sheikhupura
Hyderabad
Multan
Gilgit
Sahiwal
Skardu
Hunza
Lodhran
Rahim Yar Khan
Bahawalpur
Gwadar
Abotabad
Okara
Sargodha
Hub chowki
Golarchi
Bohara
Gujar Khan
Jehlum
Khanewal
Booni
Burewala
Jati Town
Hafizabad

23
43
2
2
1
2
2
3
1
1
2
1
1
5
3
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

Nature of the Organization

Soneri Bank Limited offers a range of business for their customers;
Retail Banking

Corporate Banking

RETAIL BANKING
Refers to banking in which individual customers use local branches of larger commercial
banks for their financial activities.
Banking institutions execute transactions directly with consumers, rather than
corporations or other banks.
Services offered include;
o Savings and checking accounts
o Mortgages
o Personal loans
o Issuance of debit/credit cards
o Certificates of deposit (CDs

CORPORATE BANKING
Corporate Banking offers tailor made products / solutions as required by corporate
customers which includes:
o Funded facilities, ranging from short to medium and long term lending.
o Trade related financing.
o All sorts of non-funded facilities / services which include Cash receipts /
payments, Remittances, Collections, guarantees, letter of credit etc.
o Customized products / solutions.
SBL covers cash management, foreign exchange, business-to-business payments, trust,
custody, commercial lending, trade finance, and other corporate banking issues.

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

MISSION STATEMENT
To developed 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

BOARD OF DIRECTORS
Chairman
Mr. Alauddin Feerasta
Chief Executive Officer
Mr. Safarali K .Lakhani
DIRECTORS
Mr. Noor Feerasta
Mr. Inam Elahi
Mr. S. Ali Zafar
Mr. Abdul Hayee
Mr. Shahid Anwar (NIT Nominee)
Mr. Manzoor Ahmad (NIT Nominee)
AUDIT COMMITTEE
Mr. Nooruddin Feerasat( Chairman)
Mr. S. Ali Zafar(Member)
Mr. Shahid Anwar (Member)
Mr. Abdul Hayee (Member/ Secretary)
COMPANY SECRETARY
Mr. Abdul Hayee
LEGAL ADVISOR
Manan Associates, Advocates
AUDITORS
A.F Ferguson & Co.
(Chartered Accountant)

DEPARTMENTS OF SBL
General Banking
Trade Department
Credit Department

Introductions of the departments in which I

worked as Internee
In my first week in SBL, the branch manager Mr. Ikram assigned me to
learn the basic banking concept. For this purpose he directed me to meet
with the Operations Manager, Mr. Zaffar Iqbal (AVP). He is very
cooperative kind of person. He told me about the rules and regulation
that must be me followed by me and asked me to join Mr. Tasaduq
Gardezi A/C opening (Officer). Account opening is a part of

GENERAL BANKING
Accounts Department
Clearing Department
Remittances Department
Cash Department

GENERAL BANKING
General banking is divided in to four sections
Account Opening
Cash
Clearing
Remittances
ACCOUNT OPENING
TYPES OF ACCOUNT OPENING FORM
There are types of account opening form
For single, sole proprietorship & joint personal
For partnership, limited Company, trust, clubs etc.
BASIC REQIRMENTS FOR OPENING AN ACCOUNT
FOR SINGLE, SOLE PROPRIETORSHIP & JOINT PERSONAL
CNIC photocopy.
Introducer must have an account in the same branch.
KYC.
NTN certificate (for Sole Proprietorship)
World Check.
Letter Head in case of sole proprietorship
Note: The account of person will opened after receiving verification from NADRA.
FOR PARTNERSHIP, LIMITED COMPANY, TRUST, CLUBS ETC
FOR PARTNERSHIP
Attested photocopy of CNIC of all partners
Attested photocopy of partnership deed duly signed by all partners.
Attested photocopy of registration of firm with registrar of firms. In case of partnership
unregistered the fact should be mention in account opening form.
Authority letter, in original, in favor of the person authorized to operate on the account of
the firm.
KYC.
NTN certificate
World Check.
TYPES OF ACCOUNTS
Soneri bank is dealing in different types of account.
Basic Banking A/C
Current A/C
PLS Saving
Soneri Saving

Fixed/ Term deposit A/C

BASIC BANKING ACCOUNT
This is account is for salaried person account. Normally different companies, Schools, Colleges
opened their employees account in this account.
BENEFITS OF BASIC BAKING ACCOUNT ARE GIVEN BELOW:
No Zakat deduction
No service charges
Soneri debit card
CURRENT ACCOUNT
Current is a non profit account flexible account with a great convenience for individuals (in
single or joints names), minors (to be operated by the guardian), charitable institutions,
autonomous corporations, limited companies, firms, associations, educational institutions etc.
Current account may be opened with any amount.
SALIENT FEATURES
Minimum Rs 10,000 required opening an account.
Service charges will be deducted.
SONERI SAVING ACCOUNT
Soneri savings account provides an opportunity to small and medium income group people, with
an attractive return.

SALIENT FEATURES
Minimum Rs 5,000 required opening an account.
No minimum charges.
Zakat will be deducted.
Up to Rs 100, 00 Expected profit 5% P.A.
Soneri debit and credit card.
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.

PROFIT & LOSS SAVINGS ACCOUNT

PLS saving Bank Account is a simple, straight forward saving bank Account with a great
convenience for individuals (in a single or joint names) minors( to be printed by the guardians)
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 balance below Rs.5000- on any
day shall be subjected as per their schedule of charge 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 Travelers Cheques through your bank branch.
Standing Orders facilities.
CLEARING
In clearing some important terminologies come, these are given below. and this is second most
important part of general banking.
Banker cheques
Types of clearing
IBDA
OBC
IBC
NIFT
Standing Instruction
Daily Fund Transferring
BANKER CHEQUES
In this cheque all the expenses of the bank are recorded on daily bases. Expenses like
OCS charges
TCS charges
Stationary
Classic water

Utility Bills
Generator Diesel
These expenses recorded in banker cheque.
STANDING INSTRUCTION
Standing instructions are given by the customer to the banker.
In this cash will be transfer to second partys account according to the instruction given by the
customer.
Example
If Customer instructs the bank if his children fee voucher comes, bank has authority to take these
vouchers and pass the transaction, or any utility bills of customer etc.

DAILY FUND TRANSFERRING

In daily fund transferring the bank transfer the funds to customers main account where he wants.
Example
Uniliver has an account in different cities, like (Karachi, Multan, Lahore, Islamabad, and
Faisalabad) .The Accounts manager of the company instruct the bank that banks should transfer
their fund to their main account in Karachi. So HQ-Soneri Bank instruct their branches that they
should transfer the funds of Uniliver to companys main account in Karachi.
TYPES OF CLEARING
There are three types of clearing.
Normal clearing
Special clearing
Intercity clearing
NORMAL CLEARING
Normal clearing is further divided into two types.
Internal cheque
External cheque
Internal Cheques:
Internal cheques are given by the customer of the same branch. The clearing Department check
the status of the account if the status of account would be OK, then they credited the account of
the second party and Debited the account of their customer.

External Cheques:
External cheque comes from different bank to Soneri bank but from the same city. Theses
cheques are delivered by NIFT. Clearing department check the status of the account. If the status
of the account is ok, then they pass the transaction. In case of not they return the cheque to NIFT.

Special Clearing
NIFT delivered these cheques to bank and instruct the bank to transfer the amount to respected
account. Bank is liable to pass the transaction according to the instruction given by the customer.
Charges of special clearing are Rs.500. These charges charge by NIFT. And bank debited these
charges from customer accounts.
Inter Bank Debit Adjustment (IBDA)
In IBDA always Head Office has right to debit the account of its branches. If there are some
mutual expenses. So Head office sends IDBA note to its branch that they have debited their
account.
For example
Soneri Multan had sent request for UPS. Soneri Head Quarter has purchased the UPS on
the behalf of Multan branch, and debited the account of Multan Branch with that amount.
UAN: Soneri has the UAN all over the country. The bill of UAN comes to HQ- Karachi.
So HQ debited the account of all braches account according to their usage.
Outward Bills for Collection (OBC)
OBC send by one bank to another bank, where State Bank is not exists.
If a Soneri Bank customer received a cheque by a party of HBL- DG-Khan. Soneri Bank Multan
sends OBC to HBL-(DG-Khan) for clearing.
If HBL (DG-Khan) clear the cheque they send clearing notice to Soneri Bank, then Soneri bank
credited the account of customer.

Inward Bills for Collection (IBC)

IBC send by one bank to another bank, where State Bank is not exists. If one bank sends OBC to
other bank, for other bank OBC would be IBC.

If Soneri Bank Vehari received a cheque of Askari Bank Abdali Road Multan. They send the
cheque to SBL-Mux, then Multan branch send the cheque in normal clearing to Askari
Commercial
Bank Multan. If ACB clear the cheque, then Soneri Bank send notice to Vehari Branch for
clearing through DAK, and credited the account of customer.

REALIZATION AND UN-REALIZATION

There are three steps in realization of cheque in clearing.
Shadow
Realized
Unrealized
SHADOW
It just a record till the cheque is not clear.
REALIZED
Bank realized entry when it received a notice of clearing from other bank.
UNREALIZED
In case if cheque is not clear, then we unrealized the cheque and removed from the shadow
REMITTANCES
NEGOTIABLE INSTRUMENTS
Cheque
Draft on Demand
Pay orders
ATM Cards
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 bankers 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.

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 banks 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.
ATM & CDEDIT Cards
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 Banks own network
of ATMs and hundred of ATMs displaying either the 1-link or M-Net symbols.
ELIGBILITY:
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 supplementary card can also be issued to
the second account holder. All Soneri Banking Card holders use debit card facility.
ATM ACCESS ACROSS ALL OVER PAKISTAN:
Now cash withdrawals and Balance Inquiry services are available by any of the ATM in Pakistan.
AVAILABLE SERVICES:
AT ALL ATMs
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.
Balance Enquiry:
You can see the available balance in your account displayed on the screen or obtain a printed
advice
AT SONERI BANK ATMS:
Fast Cash:
You can withdraw up to Rs.1000, 3000, 5000, 7000 and 10000 cash from your account(s).
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).

Request for Cheque Book:

Request for fresh cheque book may be made through the ATM. The Cheque book may be
collected from your branch after 3 working days against surrender of duly signed cheque book
Requisition slip.
Request for Statement of Account:
Request for a detailed statement is processed at the push of a button. Requested statement shall
be dispatched by your branch at your Registered Address within 4 working days.
Pin Change:
You may change the Personal Identification Number (PIN) through the own ATMs any number
of times.
Smart Option:
Fund transfer
Utility bill payments
Fund Transfer facility:
You have the power to transfer money from your account to any account of Soneri Bank
anywhere in Pakistan.

CASH DEPARTMENT
The following books are maintained in the cash department.
Receiving cashier books
Token Book
Paying cashier Book
Scroll Books
Cash Balance Book.
When cash is received in counter, it is entered in the Scroll book and cash receiving cashier
book. At the close of the day these are balanced with each other. When cheque or any negotiable
instrument is presented at counter for payment, its entered in the token book and token is issued
to the customer. The token and cashier make entry in the payment book and after that payment is
made to the payee. At the closing of the day, the token book and paying cashier book is balanced.
The consolidated figure of receipt and payments of cash is entered in the balance book and
drawn closing balance of cash.
Opening Balance + Receipt Payments= Closing Balance

This is very important department because cash is the most liquid asset and mostly frauds are
made in this department, therefore , extra care sis taken in this department and no body is
allowed to entered or leave the area freely. Mostly, cash area is grilled and its door is under the
supervision of the head of that department. Officer checks the books maintained in this
department.
SUNDRY DEBTOR
Sundry debtor is also known as suspense account. Bank maintains this account to meet the cash
in emergency. Like if employee needs salary in advance due to some problem. Bank will advance
him cash. But bank will deduct this amount at the time of paying salary to him.
Some important point for SD
At the month debit side must be equal to credit side.
At the start of next month debit side and credit would be equal to zero.
Any expense like TADA, and new branches expenses can be adjusted in this account.

TRADE DEPARTMENT
Imports
Exports

TRADE
Trade department is further divided into two sections.
Exports
Imports
EXPORTS
What is Letter of credit?
Letter of Credit:
Letters of credit are used primarily in international trade transactions of significant value, for
deals between a supplier in one country and a customer in another. The parties to a letter of credit
are usually a beneficiary who is to receive the money, the issuing bank of whom the applicant is
a client, and the advising bank of whom the beneficiary is a client. Almost all letters of credit are
irrevocable, i.e., cannot be amended or canceled without prior agreement of the beneficiary, the
issuing bank and the confirming bank, if any.
STEPS INVOLVED IN OPENING L/C
There are following steps are involved in L/C
After a contract is concluded between buyer and seller, buyer's bank supplies a letter of
credit to seller.
Seller consigns the goods to a carrier in exchange for a bill of lading.
Seller provides bill of lading to bank in exchange for payment. Seller's bank exchanges
bill of lading for payment from buyer's bank. Buyer's bank exchanges bill of lading for
payment from buyer.
Buyer provides bill of lading to carrier and takes delivery of goods.
TYPES OF LETTER OF CREDIT

There are two types of letter of credit that are given below.
Revocable Letter Of Credit
Irrevocable letter of credit

Revocable Letter of Credit L/C

A revocable letter of credit may be revoked or modified for any reason, at any time by the
issuing bank without notification. It is rarely used in international trade and not considered

satisfactory for the exporters but has an advantage over that of the importers and the issuing
bank. It should be indicated in LC that the credit is revocable. If there is no such indication the
credit will be deemed as irrevocable.
IRREVOCABLE LETTER OF CREDIT L/C:
In this case it is not possible to revoked or amended a credit without the agreement of the issuing
bank, the confirming bank, and the beneficiary. Form an exporters point of view it is believed to
be more beneficial. An irrevocable letter of credit from the issuing bank insures the beneficiary
that if the required documents are presented and the terms and conditions are complied with,
payment will be made.
Form-E
It describes the details of the goods to be exported, the importers particulars, the amount of
foreign currency payments and the details of the importer as well. Government has provided
facility to exporter in taking Form-E from any bank and can present it to any bank for
negotiation. Exporter proceeds realization certificates, SBP gives rebate to exporter against
exporter after realization, it is paid according to commodity wise and bill wise. Claim period: 1
year
Following steps are involved in Form-E.
Firstly bank requested his customer to fill all the documents.
After completing the documents send to Custom for clearing, and received custom
clearing certificate
Then send the shipment to port.
Lastly bank will send all the documents to issuing bank.
NOTE:
Bank deals only in documents.
Bank is not responsible for any damage.
100% margin required for opening L/C. with passage of if party developed understanding
with bank. Then bank would give some kind of relaxation in Cash margin.
TYPES OF EXPORT
Foreign Bill Purchase
"An instant financial solution for exporters with payment on L/C, D/A, basis" To obtain a
production continuity and to maximize every sources, Exporters should make the best of our
Foreign Bill Purchase in FBP bank provide finances to exporter for given time period
FORMAT OF (FBP)
Tax1%
Currier charges.1000

Export Development S (EDS) (FOB X 0.25)

Invoice Freight = (FOB* 0.25%)
EDS:
National bank collects the EDS tax and transfer to the government.
HEDS80

FOREIGN DOCUMENT BILL FOR COLLECTION

(FDBC)
Foreign documents bills for collection. In this type of export, exporter bank charge commission
to its client. In FDBC bank wont provide any kind of financing.

Format of (FDBC)
Tax1%
Commission.. 0.1%
Currier charges...1000
HEDS.80
EDS...........Invoice Fright= FOB
FOB*0.25%................................................................FOB 0.25%
HEDS:
HEDS stands for Handling of export Development Supply.
TYPES OF EXPORTS FINANCES

There are two types of export finances.

Pre-shipment Finances
Post- Shipment Finances
PRE-SHIPMENT FINANCES
Pre Shipment Finance is issued by a financial institution when the seller wants the payment of
the goods before shipment. The main objective behind preshipment finance or pre export finance
is to enable exporter to:
Procure raw materials.
Carry out manufacturing process.
Provide a secure warehouse for goods and raw materials.
Process and pack the goods.
Ship the goods to the buyers.
Meet other financial cost of the business.

The pre-shipment finance is further divided in to two types.

FAPC
PSL
FINANCE AGAINST PACKING CREDIT (FAPC)

When customer facing financial problem, while delivering the goods to importer. Like packing
expense and shipment charges.
Then exporter requested his bank for (FAPC). Bank credited the account of his customer.
When his bank received cash from importers bank. Exporter bank will deducted the FAPC and
the rest of the amount will be credited to his account.
PRE- SHIPMENT LOAN (PSL)

Authorized dealers are permitted to extend Preshipment Credit in Foreign Currency (PCFC) with
an objective of making the credit available to the exporters at internationally competitive price.
Following advantages and important points of (PSL)

This is considered as an added advantage under which credit is provided in foreign

currency in order to facilitate the purchase of raw material after fulfilling the basic export
orders.
The rate of interest on PCFC is linked to London Interbank Offered Rate (LIBOR).
According to guidelines, the final cost of exporter must not exceed 0.75% over 6 month
LIBOR, excluding the tax.
The exporter has freedom to avail PCFC in convertible currencies like USD, Pound, Sterling,
Euro, Yen etc. However, the risk associated with the cross currency truncation is that of the
exporter.

CREDITS DEPARTMENT
Consumer Finance
Corporate Finance
Agriculture Finance

CRIDITS
Soneri bank has divided their finance department into three sections,
Finance officer told me about the types of finances. He said there are different types of financing.
But Soneri has dealing in two types.
There are two types of finances which are given below.
Consumer finance
Corporate finance
Small And Medium Enterprises
Agriculture Credits
CONSUMER FINANCE
They give finance to their loyal customer. Who have good transaction record, and where the risk
chances are less. Their mission is we have more time for you
The consumer finance has different types of products. There products are given below.
Soneri car finance
Soneri ghar finance
Soneri personal finance
Soneri generator finance

PEST
(Political Environmental Social & Technological)

Political:
Political factors influencing the bank performance. We have seen, 10 yrs back the banking sector
in Pakistan was flourishing, and the reason was political stability. Now the banking sector is
declining not able to meet the required requirements by SBP. The reason is political instability.
Particularly, agriculture people get benefits due to relations with politicians. Such people get loan
and job on references.
Economical:
Population of Pakistan is very rich as compared to other countries. So economical factors are
good for banking sectors. Soneri Bank always looking forward to cater their customer by its
attractive offers like Basic Banking A/C for salaried persons. SBL has mission that we have
more tome for you
Social Factors
Social and cultural factors are affecting the bank. Majority of the population is un-educated and
unaware of the benefits of banking sectors. They have low saving and want to keep money with
them.
Technological factors:
Technologically, SBL is strong and this element strengthens to SBL. Online banking advances
and any transactions bank has speedy network. The reason of their speedy network they have
limited operations. Their first priority is customer satisfaction. For this they have established ITDepartment in every branch to cater network problems.

SWOT ANALYSIS

There are following strength weakness opportunity and threats for SBL.
STRENGTH:
Since, inception of SBL, it has moved rapidly in expanding branch network and deposit
bases along with profitable advances and increasing the products and services. Prior in
Multan bank has only two branches, two months back, the SBL management has decided
to expand its business in Multan by opening new branches. Bosan Road branch starts its
operation by the end of last month.
SBL is serving particular certain community like (Agha Khanis). They are considering
being their loyal customer. Agha Khan Hospital, Agha Khan Laborites and Agha Khan
Medical College, All they have an account with SBL. Agha Khan is a Big name.
The Pakistan Credit rating Agency Limited (PACRA) has maintained banks credit rating.
SBL has been awarded an AA- for long term and A1+ for the short term and A+
for the Term Finance. Certificates reflecting banks well maintained risk profile with
preserved sound asset quality.
WEAKNESS:
As per bank policy, advertising and publicity is not extensively emphasized. Through
advertisement customers could be kept abreast with the product and services.
The main focus of SBL is major cities of Pakistan. Its direly needed to extend its
network and people should be educated about the functioning of bank.
Poor employee development and promotion. During the training the trainer couldnt
gave them proper information. So the trainee faces problem.
Defensive approach in lending.
OPPORTUNITY:
The life cycle of an organization is comprised of threats as well as opportunities. If we
say, today the rates of challenges are too high but simultaneously the rate of opportunity
is also too high. It is obligatory to try to make progress with consistency as well as to
adapt changes with the need of time, in order to cope up with both conditions.
In the prevailing scenario, SBL should penetrate further and capture various corporate
customer as well as retail customer by expanding their network.
In addition to the excellent routine banking, it has earned a good name by offering special
products like Soneri car finance, ghar finance and personal finance. So the penetration of
these products could enhance the market share.
SBL has launched another division know as Islamic Banking. This new aspect will also
attract a large number of people, who dont want to deal with interest bearing bank.
THREATS
While doing business, threats are part of business. Especially, in this era, most of the
financial institutions are working as Private Limited Company and facing or have a fear
of threat from their competitor as well as new entrants. In order to maintain as well as
enhance the market share , SBL always try to introduce new schemes /packages like
Soneri generator finance etc
In our country, the rate of inflation is increasing along with unemployment. So due to
increase in price of the products, the saving of the people is decreasing with passage of
time. So it is threat for banking sector. In future the deposits of the bank will decreases.

The number of banks in Pakistan increasing with passage of time. Foreign bank like to
open their branches in Pakistan. So it would be threat for SBL.

CONCLUSION OF SWOT ANALYSIS

Since SBL has decent strengths and opportunities in the market, its market share is increasing
and it is expanding its branches rapidly. So I concluded that SBL is adopting and implementing
on Growth Strategy.

SUGGESTIONS
If I was the manager of SBL. There are following suggestions for SBL.
The life cycle of an organization is comprised of threats as well as opportunities. If we
say, today the rates of challenges are too high but simultaneously the rate of opportunity
is also too high. It is obligatory to try to make progress with consistency as well as to
adapt changes with the need of time, in order to cope up with both conditions.
In the prevailing scenario, SBL should penetrate further and capture various corporate
customer as well as retail customer by expanding their network.
In addition to the excellent routine banking, it has earned a good name by offering special
products like Soneri car finance, ghar finance and personal finance. So the penetration of
these products could enhance the market share.
SBL has launched another division know as Islamic Banking. This new aspect will also
attract a large number of people, who dont want to deal with interest bearing bank.
If SBL focusing on advertisement it would be good for organization, because promotions
makes people know about the products of SBL.
Management should also open new branches is rural areas to capture market share.
SBL can enjoy handsome return its funding base by investing in capital markets in the
foreign countries.
If management of SBL giving facility of night banking to its customer. I think it would
also attract the other bank customers.
Well at the same time SBL has some threats with different product line of their
competitors. Now what they have to do? They just reduce their mark up rate as compare
to their competitors. By doing this they may capture big market share. In long run it
would also beneficial for the bank.
They must focus on their own Marketing team, rather than outsourcing, their own
Marketing team launches new ads.

CONCLUSION
Soneri bank Limited is engaged in banking service, and operate more than 118 braches including
four Islamic Banking Branches in Pakistan. The bank operates in four segment corporate
finance, trading and sales, retail banking and commercial banking.

Within the span of 18 years, SBL has become the one of the largest private bank in the country.
There are about 112 correspondent banks in 31 countries of the world. Its capital and reserves
level is increasing day-by-day. Their main objective is to provide professional, personalized and
efficient service to the clients at all the times. SBL is always looking forward to provide new and
better services than their competitors.
I have seen they are now expanding their branches, when I have joined SBL there were only two
branches in Multan but now in Multan three branches are operational. They have told me that
two more branches will be operational by the end of this year. So SBL is adopting and
implementing on Growth Strategy. These branches are located in commercial areas. . They have
clearly defined values and norms and they strictly practice their norms and values.