SONERI BANK LIMITED
Presented to: Mr. Shahid Hussain Nadeem
Presented by: Saleem Hussain
Session 2001 to 2002
Govt. College of Commerce
Bahauddin Zakariya University
Internship is the most important part of the M.Com studies. In fact internship provides the opportunity to us to implements our bookish knowledge in practice.
More than the internship is also provides the plate form to us to assess our strength and grip toward the concepts of the post graduate knowledge. This report reflects what I have learned during my internship period.
I have spent my time in different departments of the Soneri Bank and I tried my best to get the maximum knowledge during my training period.
I am very thankful to all members of the Soneri Bank for their sincere efforts and devotion for the preparation of this report.
I am also greatly under obligation to Prof. Shahid Hussain Nadeem (Govt. Post Graduate College of Commerce Multan) whose sincere encouragement enables me to complete the whole task.
It’s my pleasure to dedicate of my this minor effort to my
AND MY CAUSE OF LIFE
“MY SWEET DAUGHTER AND MY SON”
I am very thankful to the following person who has given me enough assistance and guidance and spare their valuable time for me during my Internship Period.
Mr. Qamar Azeem Chief Manager
Mr. Malik Zafar Iqbal Assistant Manager
Mr. Saleem Akhtiar Incharge Foreign exchange & Credit
Mr. Sajid Riyaz Incharge Accounts Department
Miss Nadia Noor Assistant Incharge Foreign exchange
Mr. Saadat Ali Incharge Credit
Mr. Syed Ali Naqvi Remittance, clearing Department
Mr. Syed Ali Raza Incharge Cash Department
I am again very thankful to all of them because they are very cooperative to me during my internship
TOPICS PAGE NO.
Corporate Date 8
Organization Structure 10
Export Department 11
Import Department 18
Advances Department 22
Accounts Department 26
Deposit Department 28
Cash Department 32
Account Opening Department 39
Soneri Future Schemes 42
Financial Analysis 53
Strengths and Weaknesses 62
Suggestion and Recommendation 64
Pattern of Share-holding 65
History of Soneri Bank
Incorporated on September 28, 1991 the first Branch of Soneri Bank Limited formally opened doors for operations in Lahore on April 16, 1992 followed by Karachi Branch on May 09, 1992. The bank now operates with 30 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 essence of Soneri Bank 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 credit portfolio is related to export financing and credit decisions are taken within 48 hours that is why the slogan of bank is:
We have more time for you
BOARD OF DIRECTORS
Mr. Badruddin J. Feerasta
Mr. Safarali K. Lakhani
Mr.Alauddin J. Feerasta
Mr. Nooruddin B. Feerasta (Sr.)
Mr. Amin A. Feerasta
Mr. Asadullah Khawaja (NIT Nominee)
Mr. Hasan A. Bilgrami (NIT Nominee)
4th floor, IEP building, 97-B/D-1,
Gulberg III, Lahore.
Mr. Abdul Hayee
Taseer Hadi Khalid & Company
Mandviwalla & Zafar, Advocates
Tahir Ali Tayebi & Co., Advocates
Sheikh Atta-ur-Rehman & Association, Advocates
REGISTRAR AND SHARE TRANSFER OFFICE
THK Association (private) Limited Ground Floor,
Sheikh Sultan Trust Building No.2,
Beaumont Road, Karachi.
Tel.:(021) 568 6658
(021) 568 9021
A president, a secretary, 9 other member
Directors, Senior Executive, vice president
Senior Executive, vice president, provincial chief
Divisional Chief, Execute vice president
Circle Execute, Senior Vice president
Zonal Chiefs, Vice President
Branch Manager, Officer etc.
Export earning and the volume of exports has now become an important factoring deciding the economic fate of numerous people. Soneri Bank is well aware of this fact and it plays their required role in order to boost exports. Soneri Bank also has an export department working under competent experts.
For the export purpose following procedure is adopted
Registration of Exporter
Under the registration (importer and Exporter) Order, 1993, as amended from time to time, no person can export any goods from Pakistan unless he is duly registered as an exporter with the Export Promotion Bureau.
Forms prescribed for declaring Exports
As required under the Federal Government notification dated 1st July 1948 the exporter are required to declare their export to Customs/Postal authority in form ‘E’.
Certification of Export Form by the Bank
Before the export form is lodged by the exporter with the custom/postal authorities all the copies thereof are required to be certified as under by the Soneri Bank.
a). Certified that the above exporter is known to us that he is bonafide businessman in Pakistan.
And that he has made arrangements with us for the realizations of the export proceeds, of the goods declared on this form on the due date from payments or with in six moths from date of shipment/posting, which ever is earlier.
b). we under take to ensure that export proceeds against shipment on firm contract shall be received by us on the due date for payment or with in six months form the date of shipments/posting, which ever is earlier.
c). We under take that in the event of non-realization of export proceeds against shipment on consignment sale within period of six month, we shall obtain from the exporters and furnished to the state bank of Pakistan a full explanation as to the circumstances resting in non-realization.
B) We further undertake that in the event of short realization, we shall obtain from the exporters and furnished to the state bank of Pakistan a fully documented account sale certified by the consignees/Chamber of Commerce of the country of the import.
Printing and Distribution of Export Forms
Central Office of Soneri Bank is maintaining a complete recorded of all export forms printed by them and of then distribution to branches and customers. For this purpose, they are maintaining a stock register which show branch wise distribution of the export form.
Maintenance of Party-wise Record of Certified Export Forms
All Branches of Soneri Bank LTD. are maintain another register for recording the particulars of export forms issued and certified by them in respect of each exporter. In this register they are also maintain record against each from the date of submission of the export documents in cases where shipments have been made or of the surrender of complete set of export forms in cases where goods have not all been entered for shipment or of submission of complete “shutout notice” in cases where the goods have been entered for shipment but have been shut-out.
Functionality Utility of the Copies of Form ‘E’
Form ‘E’ is consisting of the sets of four copies each. The exporter should submit the full set of Form ‘E’ to the Soneri Bank for certification. It has been completed and signed by the exporter himself or his authorized agent. While certifying Form ‘E’. Banks ensure that exporters give only one address in Form ‘E’. After the form is certified by the Bank, it should be submitted to the Customer/Postal authorities at the time of shipment alongwith the shipping bill. The Customer authorities will detach the original copy and after filling in the portion relating to them and affixing their seal and signature thereon forward it to the State Bank. The Customer authorities will return the duplicate, triplicate and quadruplicate copies to the exporter or his authorized agent who will retain the quadruplicate for his own record and submit the duplicate and
Triplicate copies to the Soneri Bank along with the shipping documents within 14 days from the date of shipment. Now the Bank will forward the triplicate copies of the export forms to the State Bank alongwith the monthly return in which realization of export proceeds is reported, retaining the duplicate for his record.
Submission of Export Document to Soneri Bank
All shipping documents covering goods exported from Pakistan and declared on Form ‘E’ must be passed through the medium of Soneri Bank within 14 days from the date of shipment. The exporter must submit the duplicate (bearing Customer seal and signature of Customer officials with Code number) and triplicate copies of Form ‘E’ alongwith the shipping documents, invoices etc. to the bank who had certified the form ‘E’. an extra copy of shipper’s invoices must be attached to the triplicate copy of the Form ‘E’.
Security of Documents
The Bank compare the bills of Lading and/or documents with the relative export form and satisfy themselves that they confirm in all respects to the declarations made on the relative export forms and the amount of bills and invoices is not less than the value declared on them.
Where a portion of a consignment is short shipped and the exporter consequently draws a bill or papers an invoice for a quantity less than that
Declared on the relative export form, he should produce a notice of short shipment on the prescribed form duly certified by the Customs alongwith the shipping documents. Now Soneri Bank will forward the short shipment notice to the State Bank alongwith triplicate copy of Form ‘E’ while reporting the realization of full value of the goods shipped.
Shipment lost or damaged in Transit
If shipment from Pakistan is lost in transit for which payment has not already been received, the Bank must see that an insurance claim is made immediately the loss is known. The triplicate copy of the relative export form must be endorsed with the narration “Shipment Lost” under the stamp and signature and sent to the State Bank.
Verification of Export Proceeds Realisation Certificate
Sometimes exporters are requested to produce to the Government Department evidence of exports and realization of then proceeds. In such cases proceed realizations certificates may be issued by the Soneri Bank in the prescribed form after getting then authenticated by the State Bank.
Remittance of Export Commission, Brokerage and Discount
Banks or any Authorized Dealer is permitted to allow payment of commission/brokerage/discount due to foreign importers or agents by exporters in Pakistan at the following rates:
Maximum rate of Commission etc,
Books, journals and magazines Upto 33 1/3%
Engineering goods (Electrical and Upto 10 %
Sports goods, surgical instruments Upto 7 %
Cutlery, leather goods, ready made
Garments and other textile made ups
Carpets and plastic manufactures.
Cotton Upto 2 %
All other goods except cement Upto 6 %
Method and period of payments
Full exports value of goods exported form Pakistan and declared to the Custom authorities, should be received in an approved manner, on the due date for the payments of with in the six months form the date of shipment/posting, with ever is earlier, or within a period as may be prescribe by the State Bank through specific or general instructions though an Authorized Dealer either in convertible foreign currency in with the authorized dealer maintain accounts or in U.S. dollars or in Pakistan rupee from a non-residence bank account. However, where the term of sale/irrevocable letter of credit provide for payments on 180 days, usance/270 days usance in the case of Hand Knotted Carpets, from the date of shipment/ posting shall be permissible for the exporter repatriate
the export proceeds within 195/285 days form the date of shipment/posting.
Exports to Afghanistan are not requested to be declared on form ‘E’.
Trade across the country boundaries when goods come inwards, it is called import. The ministry of commerce, Govt. of Pakistan under export control act 1950, regulates import of goods in Pakistan.
Modes of payments for the Import:
Payment for the import may be made either through letter credit, without letter of credit, documents received for collection on the basis of contracts or as clean remittance without opening of Letter of Credit and with out registration of contract.`
Letter of credit is very important in foreign trade. So the importer request to Bank to open LC in favor of beneficiary. First of all he fills the application for opening of Letter of Credit in triplicate with the following details.
Name and address of importer
Classes of importer
type of industry
Center of import
Sources of import
Value of LC to be establish amount of import fees paid
Description of items with ITC/H.S code number
Freely importable /importable subject to condition
Country of import with name and address of beneficiary
Performa invoice/ indent number
Date, name and address and
Registration number of indenter and in the last
Declaration by the importer.
LETTER OF CREDIT
A letter of credit is just a guarantee given by one bank to a third party i-e., exporter. The guarantee ensures that he will receive payments of his goods provided he performs certain obligations. It also ensures to the importer that payment to the exporter will only by made when goods have been received.
In others words
“Letter of credit is a commitment on the part of buyer’s bank to pay and accept draft drawn upon it provided draft does not exceed a specified amount”.
Types of Letter of Credit
Following are some important kinds of LC.
1- Irrevocable L/C
Such Letter of Credit cannot be modified or cancelled by the opening bank. Here absolute undertaking is given by the opening bank that it will honors the draft presented by negotiating bank.
Such Letter of credit can be revoked by the issuing bank at any time. This means that it can be modified and cancelled by the opening bank without giving any notice.
Red Clause L/C
Under such Letter of Credit the opening bank authorizes the negotiating bank to provide finance to the exporter that he can purchased goods for the shipment. Such type of Advances are called pre-shipment advances
Green Clause L/C
Besides containing the provision to issue pre-shipment finance, this letter of credit also provides for storage expenses and where houses charges.
Under this type of Letter of Credit the amount of credit is automatically renewed once the credit condition has been fulfilled.
Back to Back Letter of Credit is one where the person in whose favour it has been opened, uses it to established and other credit in favour of an other person. Thus one credit backs another credit. Etc.
Parties involved in Letter of Credit
There are four parties involved in L/C
Bank must insure before opening a letter of credit that in each case a firm commitment exist for this purpose they should insure that an invoice order, or indent has been issued by the indenter.
It is permissible to open a letter of credit on the basis of Performa invoice/order issued/accepted for foreign supplier.
Full description of goods to be imported is given, when the amount of LC is Rs. 1.5 million or over authorized should obtain a confidential report on the exporter from their branches.
Application and agreement for irrevocable documentary credit freely negotiable in beneficiary country (IB8).
IB8 contain the following,
Name and address of opener
name and address of beneficiary
amount of credit
invoice value of shipment
nature of goods
quantity, prices etc.,
name of indenter and reference of invoice/order/indent.
From …….to ………country of destination.
Financing and trade facilitation services have been design keeping in view the needs of business and industry. The aim is to reach out the widest spectrum of business concern there by insuring that the risk effect portfolio of the bank is spread out and serves the country in the best possible manner. For the convenience of the reporting, credit facility granting by the Bank are classified in the heads of accounts appearing in the subsidiary ledger and statement of affairs. However financing broadly classified as follows:
Funds-based facilities largely aim at financing commercial and trade business.
While non-fund-based facilities focus on facilitating and contracting business.
Fund-based facility aim at providing funding support for all possible working capital finance requirement of business and industry including those for:
Accusation of local and imported goods and raw material.
Normal inventory holding period smoothing out their flow to the market.
Direct marketing manufacturing and processing expenses and
Domestic and international trade receiver.
Non-fund-based facilities aim at banking needs of importers and all type of contracting fund by offering a full range of Letter of Credit and Letter of Guarantee.
Types and purposes
Followings are some important type of financing
1. Temporary running finance (TRF)
Customer who maintains satisfactorily conducted accounts at their specific request be accommodated to temporarily overdraw their current balance to met unexpected and urgent financing requirements. The amount to which overdrawing may be permitted, will depend on security coverage, the previous conduct of the account with the Bank as will as the turnover in the account, and average balance maintained in the past..
This facility is extended for a very short period of time or should alternatively be converted in to regular running finance facility.
2.- Running Finance (R.F.)
Most businesses fluctuating financing need arising either from the need to meet temporary funding shortfall in full fling payments commitments to their suppliers or in meting operating expenses pending realization of trade and other receivable. To cater to this working capital needs,
Customers require of fluctuating balance financing facility which could be drawn up to stated limit. It should be granted against the security of tangible assets to a reasonably acceptable extent.
This facility is normally allowed for maximum period of twelve month and is revived once in a year.
3. Demand Finance (DF)
This is a short to medium term finance facility under which the usual maximum term is Upto three years depending on the Bank’s knowledge about the customer, the merits of the proposal and the nature of financing need. This facility may extend beyond the three years period in the Housing Finance facility granted to the permanents staff members of the Bank.
Purpose: This facility is usually finance acquisition of long life assets who pay out period exceed 12 months, or expenditure of capital nature whose benefits will accrue over and extended period.
Re-payment: This facility repayable by customers normally in periodic installments with mark-up being payable normally quarterly intervals.
Security: If the demand finance facility is being recommended for acquisition of fixed assets then it is to be covered by the mortgage charge over the related fixed assets as prime security. If however, it is being extended to finance working capital or investment requirement then the facility will need to be secured by current assets components and by other tangible if and as considered necessary.
4- Term Finance (TF)
This facility should be extended for the purpose is in which re-payment will be extended over a period 18-24 months either is installments or in a lump sum (Balloon payments).
Finance against packing Credit (FAPC)
IN FAPC security lien over L/C or contract this kind of finance facility is favorable for the bank because goods are in the possession of the bank and customer gets goods from bank when they made payment
Finance against imported merchandise (FIM)
In import when importer has no funds to clear the goods then bank will creates FIM account and got the goods under the pledge which may be released to the importer by issuance delivery order by payments.
Function & importance of account department.
To collect voucher passed in different departments.
To arrange the voucher and balancing of GL.
Prepare daily statement of affairs.
Prepare daily position.
Prepare Soneri a/c extract.
Prepare periodic statements.
Maintenance of voucher register.
Types of voucher
Simple Cr. Voucher.
This voucher is used for crediting head of a/c where customer a/c is not involved. It may also be used for recovery of mark-up Loan, installment and consumption of stationary etc.
Simple debit voucher.
It is generally use for assets and expense a/c when assets are purchased (e.g.) purchase of furniture.
Party credit voucher.
It is use where a customer a/c is credited and intimation is sent to party. It is prepared in duplicate, original copy is called credit voucher and
duplicate copy is called credit advice. It is used for credited TT receipt, OBC realized etc.
Party debit voucher.
These are used for debiting the customer a/c where customer is to be informed of debit entry. These are also prepared in duplicate, original copy is called debit voucher and duplicate copy is called debit advice.
Cash debit voucher.
It is used for making internal payments in cash.
When postage stamps are paid
For the payment of convince charges
For the payment of newspaper bill etc.
Contra voucher .
These voucher are used for recording contra assets and contra liabilities. These voucher records the debit and credit effect.
Voucher must be dated.
Head of a/c & subhead of a/c must be written.
GL code must be written.
Narration is also necessary.
Amount in word and figure must be written.
It is the most important department because of its functioning’s. Its function are to issue cheque books after opening their accounts from account opening department and this account opening department issue the account holder a account No. and then it is referred towards the deposit department where this department issue them cheque books and they get a slip of their cheque book serial no. from —–to—– and date and then they handled to them. In this department people deposit their money in current account, saving account, and fixed deposit according to their will. In other words we can say that the fundamental function of any commercial band is the acceptance of deposits. All other function of a bank is based upon this function. Banks accept deposits from those who have surplus money in their hands but they are unable to use it in a profitable way. In order to attract general public and persuade people to deposit money in bank, different way of account are maintained by the Soneri Bank.
These are following
Current account is such an account in which you can deposit and withdraw money at any time. (Of course during working hours) it is a running account and no interest is paid on its balance. The deposit in this account is called demand deposit.
PLS saving account
These accounts are just like saving deposit. Only difference between is that they are free of interest. The declare profit for such-holder after the close of financial year. Withdrawal from such account can be made only Upto 8 times in a month. In case large amount withdrawal is needed, seven days notice has given to the bank.
PLS Soneri saving account
· Introduced in 1994
· Can be operated like c/d account
· Profit is calculate on daily product basis
· But profit is paid on monthly basis
· Profit rates are given at the end of this dept.
This will be repaid on receipt of prior notice. Any amount of deposit may be accepted by the Bank for unidentified period. Notice period depends upon the choice of depositor. Profit is paid on daily period basis.
Term deposit is issued for a certain time period. Customer can not withdraw before maturity of period.
Deposit in round figure are accepted for any duration of one month,
3 months, 6 months, one year, 2 years, 3 years.
At least there must be minimum Rs. 1000.
Profit is paid on daily product basis at the rates determined by the
Central office by annually.
In case the depositor wishes to withdraw the deposit before its maturity they will not be entitled to receive the profit.
Term deposits withdrawn after one year, but before maturity will
earn profit for the period deposit remain with the bank.
S.S. card is not required.
Soneri Mahana Amdani Scheme (SMAS)
Soneri Mahana Amdani Scheme is for those who want to get the monthly income for necessities. In this case investment must be in
Minimum amount of Rs. 50,000
Overall it is a part of PLS. In this Soneri Bank provide income to customer monthly.
Profit will paid during the first week of each month.
Minimum period is one year.
Special Notice Term Deposits (SNTD’s)
These deposits are accepted for unidentified period which will be repaid only on receipt of prior notice before the withdrawal.
Date of maturity is not mentioned.
7 days notice and 30 days notice.
At the tome of acceptance notice period will determined.
Profit rate is depends upon the situation.
RATES OF PROFIT FOR DIFFENT TYPE OF DEPOSITS (PROVISIONAL)
Period: January-June 2003
Deposit Category (% p.a.)
PLS Saving Account 5.00
PLS Soneri Saving Account
Up to 20,000,000
Over 20,000,000 to 50,000,000 5.00
Over 50,000,000 5.50
30 days 4.00
3 month 5.50
6 month 6.00
1 year 6.50
2 years 6.75
3 years and above 7.00
Cash is a liquid assets, and play as part of blood in the body. All the cash is handled and managed by the cash department.
It is the function of the cash department to make the supply of money regular. The head of the cash department is called chief cashier. There are two cashiers in our branch. One is chief cashier and second is cashier.
Cashier can pay up to 50,000 after scrutiny and checking.
Above 50,000 there is a supervisory level.
50,000 to 300,000 ———- Sub manager
300,000 and more ———–Manger
Cash Balance book
Opening balance ————
+ Total received ———— with demonstration
– Total payment ———–
Total cash — ———
Received from main branch. xxxxx
Sent to other branch xxxxx
Separate register will be operated with initial of manger which is called “Cash in Transit Register”
In case of any deposits from the customers, when cash is received then it is recorded in “Received Cashier’s Book”
In case of any payment when payments are made to payees by cashier then it is recorded in the “Payment cashier’s Book”
Specimen of ‘payment cashier’s Book’
S. no. Account no. Name Cheque no. Token no. Amount
At the end of the day cashier prepare the cash position
Specimen of cash position
Payment made within 3 minutes
Receipt issued within 3 minutes
Opening balance xxxx
Drawn from banks xxxx
Received from clients xxxx
Paid into banks xxxx
Paid to client xxxx
Balance in hand xxxxx
Receipt vouchers————– payment vouchers
Chief cashier officer
In case when of cash shortage in cashier a/c
Pass the following entry.
Debited suspense a/c-Sundry debtors
It means that cash has been paid more than receiving cash
Sundry debtors voucher will be signed by the cashier who will be the victim and verified by the Manager.
All shortage and excess will be reported to G.M office in the same day.
Again clearing the voucher next day sundry debtor a/o of must be finished through the monthly installment.
Recovery of each month
Debit cash a/c
Credit suspense a/c-Sundry a/c
In case of excess of cash a/c
All the same procedure for excess of cash is used as in cash shortage.
Report to the G.M office in same day.
Book balance entry.
Credit Sundry deposits-sundry creditors
Entry will be in same sundry creditor register.
Excess cash is paid to the true owner after the permission of G.M office. They suggest getting the indemnity.
Debit Sundry deposits-sundry creditors
If there is no claimant for this amount this will become the earning of the bank.
And after one year not claiming from any one then contact to G.M office to reverse it. Cr. Income a/c- misc. earning
While making payment cashier must keep in mind the following points.
Note the date of cheque in following manner.
a. Government cheques are accepted within the three months after the date of issue.
b. Depositor Cheque is accepted with in the six month after the date of issue.
c. Treasury Cheque is accepted with in the fifteen days after the date of issue.
Amount in words and figures must be same.
Customer balance must be sufficient to honor the Cheque.
Signature of the drawer. Etc.
While in case of depositing the cash the paying slip must be same dated.
Computer generated balance must be equal to the cash balance book
Manger will sign over the book
Once in a month a surprise counting must be by manger.
Balance book must be sign daily.
Notes properly denomination and properly excise.
Cashier must hand over these notes to customer.
Customer must greet.
No arguments with customer.
Do not misguide the customer
Cashier work is more technical and speedy. So cashier must be skilled in their work
Denomination of notes – should be mentioned on back of pay –in – slip and on Cheque.
1000 * 9 = 9000
500 * 14 = 7000
Check and counter check and after satisfaction of cashier then do entry in computer. All vouchers must be noted in any register.
ACCOUNT OPENING DEPARTMENT
Steps involved in Account opening are following.
1- Filling of Account Opening Form (AOF).
AOF should be completely filled in all particulars.
(i) Title –Name-Data of Birth- Address- Occupation- NTN # – Type of account – currency – Type of organization – Zakat Deduction – Signature – Details of other bank account – Introducer etc.
(ii) Letter of kinship
Purpose: To give the address and name of any relative to contact after expiry of 3 years of last operation. If any account is inoperative about more than 3 years then the contact given in the letter of kinship is used to know about the customer (but nominated person may not be entitling to the amount contained in the a/c).
(iii) Signature Specimen Card
In CD account two cards are used. First remains with manger and other with cancellation officer.
(iv) A form
A form is used for the purpose of issuance of cheque book.
Manger will interview with that a/c opening person to judge that, is he suitable for being a customer?
Introducer should a well known customer. Introducer is not a guarantor. He only help in identification of the a/c holder in case of any mishaps / fraud.
4-Deposit of amount
1- A senior & experience officer or Branch Manger / Assistant Manger handle the account opening department
2- AOF to be taken in duplicate.
Following documents are provided by the Bank.
1- Account Opening Form (AOF).
2- Signature Specimen Card.
3- Letter of Kinship.
4- Rules for account.
Customer must provide the following thing.
In case of individual
(i)-Copy of Identity Card.
Stamp of business.
In case of Partnership
Signature of all partner on letter of partnership
Authorized partners sign on S.S. card.
Private Limited company
Article of association
Memorandum of association
Stamp of the company
Signature of authorized person
Certificate of incorporation
Public Limited Company
Memorandum of Association
Article of Association
Certificate of incorporation with attested copy
Certificate of commencement
Chairman and Directors signature etc.
Resolution passed by the Board of Directors
FUTURE SCHEMES OF SONERI BANK
SONERI GHAR FINANCE SCHEME
Soneri Bank is launching “Ghar Finance” early 2003 for low & medium income individuals for purchase of pre-constructed house/flat for self-occupancy. Salient features of the scheme are as under:-
(I). Maximum Individual Finance: Rs. 2.5 M.
(II). Repayment Period: up to 10 Years.
(III). Mark-up Rates: –
1 to 5 Years Finance 5.5% above
Prevailing SBP discount rate minimum 13% p.a.
5 to 10 Years 6.5 % above
Prevailing SBP discount rate minimum 14% p.a.
Above mark-up rates are subject to revision on January 01, every year based on the S.B.P. Discount Rate prevailing at the close of preceding year or such mark-up rates as determined by the bank under its sole discretion in case S.B.P. Discount Rate is not prevalent.
Employees of reputable legal entities self-employed or business persons
Take Home Salary / Declared Income to be 4 times of monthly repayment installments amount
A minimum of 30 % of the property price.
Mortgage of the property
Designated Branches: Haidery Branch, Karachi Phone (021) 6638617 & 6630409
Shahrah-e-Faisal Branch, Karachi PH: (021) 4535546 & 4535553
Defence Branch, Lahore PH 🙁 042) 5730760-61
Model Town Branch, Lahore PH: (042) 5889311-12
At Soneri Bank Customer convenience comes first. With this in mind Soneri Bank
Now offer Round the Clock Telebanking facilities COMPLETELY FREE.
Soneri Round-the-clock Telebanking (SRCT)
Access to SRCT available 24 hours a day and 365 days a year.
A Time Saver
Telebanking saves your
. The hassle of traffic rush.
. Travel time to the bank.
. Que-ing in at counters.
Now the customers can have access to their accounts information while enjoying
the comfort of their home/office or any other place in the world.
Easy to Operate
Dial 021-2400900 & 2400901 and obtain any or all of the following information
. Balances in your accounts.
. Statements of your accounts.
. Information on our various products.
A unique password known alone to ACCOUNTS HOLDER ensures complete confidentially of information on their account.
Soneri Car Finance 11%p.a.
Soneri Bank is also providing Car financing on the following conditions:
Maximum finance amount Rs. 1 Million for brand new un-registered cars. Repayment within 1 to 5 years in equal monthly installments inclusive of mark-up. Mark-up rate 11 percent p.a. flat.
Just 15% of Car Price.
Salaried persons up to 55 years of age in continuous permanent employment for past 2 years with financial institutions/multinational companies/public limited companies/corporate customers of Soneri Bank.
Self employment persons like doctors, engineers, architects etc. registered with professional organizations & business persons who are directors, partners & sole proprietors and corporate customers of Soneri Bank up to 60 years of age.
(3) Monthly installments must be more then 33 percent or declared income in case of self employed Persons. Registration of car would be in bank’s name to be transferred in borrower’s name on full payment of the finance. Comprehensive insurance with Soneri Bank as beneficiary through bank’s approved insurance company. To calculate monthly repayment installment multiply finance amount by the applicable factor given here under:
-1Year 2Year 3Year 4Year 5Year
0.090106 0.048180 0.034200 0.027220 0.023020
SONERI ATM SERVICE
Soneri Bank ATM Cards provide their customers Self-Service Banking 24-Hours-a-day, 365 days a year and offers following services at touch of a button from ATMS,
You can withdraw cash from your account(s) up to Rs. 20,000 per day in multiples of RS.100, Rs. 500, and Rs.1, 000 currency notes.
You can see the available balance in your account displayed on the screen or obtain a printed advice.
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 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.
Cheque Book Request.
Request for fresh Cheque book may be made through the ATM. The chequebook may be collected from your branch after 3 working days against surrender of duly signed cheque book Requisition slip.
PIN changing facility.
You may change your Personal Identification Number (PIN) through the own ATMs any number of times.
Soneri Bank ATM Card is available to customers if they maintain a Resident Rupee Savings or Current Account with any of on-line branches.
(For Bank charges on the ATM service please refer to our schedule of charges in force)
Joint Account holders may also have their individual Soneri Bank ATM Card provided either of the two signatories is authorized to operate the account. The second joint account-holder, in this case, shall be provided with supplementary ATM Card.
ATM Switch Shared Network.
Cash withdrawals against a charge of Rs.15/-per withdrawal and Balance
Inquiry services are also available through 80 ATMs of ABN-AMRO Bank,
Askari Commercial Bank and Habib Bank Ltd, located in 10 different cities of Pakistan.
BRANCHES OF SONERI BANK
(Main Branch) (Main Branch)
87, Sharae Quaid-e-Azam Adamjee Insurance Building, I.I.
P.O. Box No. 49, Lahore Chundrigar Road, P.O. Box No. 5798
Tel: 6368142-48 Karachi
Fax: 6368138 Tel: 2436990-94,
Telex: 47694 SONRI PK 2425755, 2425877
Email:firstname.lastname@example.org Fax: 2436980 & 2418350
Telex: 20479 SONRI PK 21736 RUPMK PK
G-14, Commercial Area Lahore Cantt. KARACHI
Defence Housing Authority, Lahore (Aga Khan University)
Tel: 5897181-83,5730760-61 Stadium Road
Fax: 5724325 Karachi
Email:email@example.com Tel: 4852252
90-B-C/II, Liberty Market KARACHI
Gulberg-III, Lahore (Clifton)
Tel: 5713445-48 Shadman Center Block-7, Clifton
Fax: 5713326 Karachi
Telex: 44304 SONRI PK Tel: 5830130 & 5877773/4
Email:firstname.lastname@example.org Fax: 5860671
LAHORE *new Email:email@example.com
49/2-B, Circular Road Lahore KARACHI
Email:mailto:Defencelhr@soneri.com (Federal B Area)
Hasan Mansion, Block 7 Federal B Area,
GUJRANWALA Near Aisha Manzil Karachi
Rail Bazar, Gujranwala Tel: 6373782-83
Tel: 224674-76 Fax: 6373781
Fax: 224677 Email:firstname.lastname@example.org
Telex: 45298 SONRI PK
FAISALABAD Silver Jubilee Center
Chiniot Bazar, Faisalabad Britto Road, Garden
Tel: 639877-78 East, Karachi
Fax: 649254 Tel: 7232877-78
Telex: 43320 SONRI PK Fax: 7232876
Saddar Road (Korangi)
Peshawar Cantt. Plot No. 7, ST 3/1 Sector 15, Korangi
Tel: 273424 & 277914-17 Industrial Area
Fax: 273727 Karachi
Telex: 52505 SONRI PKE Tel: 5066722
Email: email@example.com Fax: 5066731
PESHAWAR *new Karachi *new
(Chowk Yadgar) (Haidery)
Shop No. 2400-2401-2402,Chowk Yadgar, Plot No. SF-10, Hussein Square,
Peshawar. Block-E, improvement Scheme No.2
Email:mailto:Korangikhi@soneri.com Haidery-North Nazimabad Karachi.
Mujahid Road, P.O. Box No. 2958, Sialkot
Tel:596992-596983-581250 Fax: 596885. Karachi *new
Telex: 46445 SONRI PK (Jodia Bazar)
Email: firstname.lastname@example.org D.S. No 11-B-313 Market Quarters,
Birjee Street Jodia Bazar Karachi.
Plot No. 7, Sector B/3 ghazi Manzil Allama SUKKUR
Iqbal Rd P. O. Box 5 Mirpur (Azad Kashmir) Glamour Heights
Tel: 44488 Plot No. C-260/4
Fax: 44588 Muhammad Bin Qasim Road, Sukkur
Email:email@example.com Tel: 22382-22925
P.O. Box No. 532, Gilgit RAWALPINDI
Tel: 3658 Kitchlew Building
Fax: 3658 Email:firstname.lastname@example.org 41-Bank Road
P.O. Box No. 62 Rawalpindi Cantt.
QUETTA Tel: 5522901-103
Shara-e-Iqbal Fax: 5522906
P.O. Box No. 624, Quetta Telex: 54777 SONRI PK
Tel: 821610 & 821641 Email:email@example.com
Telex: 78232 SONRI PK ISLAMABAD
Email: firstname.lastname@example.org 68-W, Sama Plaza
SHEIKHUPURA P.O. Box No. 2931
Sharif Plaza, Sargodha Islamabad
Road, Sheikhupura Tel: 2277551 & 2272460
Tel: 613570 Fax: 2277550
Fax: 56800 Telex: 4754 SONRI PK
Dr. Ziauddin Road Bagri Plaza, Lahori Gate
Saddar Main Bazar, Wazirabad.
P.O. Box No. 419 Tel:603703,603704. Fax: 603705.
(Fatima Jinnah Road) Mall Plaza
Defence Plaza, Fatima Quaid-e-Azam Road,
Jinnah Road, Hyderabad Multan Cantt.
Tel:28131,85997 Fax: 785998. Tel: 44884/511022.
Telex: 22097. Fax: 546808
HUNZA *new SAHIWAL *new
Ali Abad Hunza. 14-Mission Chowk,High Street Sahiwal.
2001 2000 1999
(000) (000) (000)
Share capital 782,719 626,175 500,940
Share-holders equity 1,543,047 1,272,635 1,101,913
Total assets 20,540,675 20,117,220 17,730,315
Investment 4,494,340 3,165,651 7,116,000
Deposit 16,053,886 14,029,595 12,262,293
Total income (before tax) 551,234 393,922 382,316
Total income (after tax) 270,412 164,386 132,819
Operating expenses 361,912 348,680 285,784
No of accounts 128,598 111,236 95,687
Earning Per Share
The earning per share is a good measure of profitability and when compared with E.P.S. of similar other companies, it gives view of the comparing power of the firm. E.P.S. calculated for a number of years indicates whether or not the earning power of the company has increased.
Earning Per share (EPS) = net profit after tax / number of shares
ITEMS 2001 2000 1999
Profit after tax 270,412 164,386 132,819
Number of shares 78271.9 62617.5 50094
EPS 3.45 p/share 2.10 p/share 2.12 p/share
From the above calculation it is clear that earning power of company has been increased as compared to previous years which are a good sign.
Return on Equity Capital
In real sense ordinary share-holders are the real owner of the company so they are more interested in the profitability of a company and the performance of the company should be judge on the basis on the basis of return on equity capital of the company. Return on equity capital is a relationship between profit of the company and its equity
Return on equity capital = Net profit after tax / paid up equity capital*100
ITEMS 2001 2000 1999
Profit after tax 270,412 164,386 132,819
Equity share capital 1,543,047 1,272,635 1,101,913
Return on equity capital 17.52 % 12.91 % 12.05 %
According to the above calculation it is clear that these ratio are more meaningful to the equity who are interested to know profit earned by the company and these ratio are increasing every year it means that company profitability is increasing.
Price Earning Ratio
Price earning ratio is the ratio between market price per share and earning per share. This ratio is calculating to make decision by investor whether or not to buy share of the company. This ratio is also useful in financial forecasting.
Price earning ratio = market price per equity share / earning per share
ITEMS 2001 2000 1999
Market price per share Rs 19.90 Rs 19.94 Rs 22.02
Earning per Share 3.45 2.10 2.12
Price Earning Ratio 5.77 times 9.49 times 10.39 times
This ratio is also known as equity ratio or net worth to total assets ratio this ratio indicate the long-term or future solvency position of the business.
Proprietary Ratio = Share-holder funds / total assets*100
ITEMS 2001 2000 1999
Share-holder fund 1,555,654 1,248,578 1,102,913
Total assets 20,540,675 20,117,220 17,730,315
Proprietary ratio 7.57 % 6.21% 6.22%
BALANCE SHEET AS AT 31 DECEMBER 2001
(Rupees in ‘000)
CASH AND BALANCES WITH TREASURY BANK 6 1,537,466 1,245,437
BALANCES WITH OTHER BANKS 7 1,065,536 713,729
LENDINGS TO/ PLACEMENTS WITH FINANCIAL INSTITUTION 8 1,674,775 3,083,883
INVESTMENTS 9 4,942,340 3,165,651
ADVANCES 10 10,198,907 10,931,001
OTHER ASSETS 11 642,887 528,450
OPERATING FIXED ASSETS 12 327,734 323,947
DEFFERRED TAX ASSETS 13 151,030 125,122
BILL PAYABLE 14 240,782 335,993
BORROWINGS FROM FINANCIAL INSTITUTIONS 15 2,195,871 4,155,128
DEPOSITS AND OTHER ACCOUNTS 16 16,053,886 14,029,595
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE 17 26,672 21,758
OTHER LIABALITIES 18 467,810 326,168
DEFFERED TAX LIABILITIES – –
NET ASSESTS 1,555,654 1,248,578
SHARE CAPITAL 19 782,719 626,175
RESERVES 757,818 648,464
UNAPPROPRIATED PROFIT 2,510 996
SURPLUS / (DEFICT) ON REVALUTION OF SECURITIES 20 1,543,047 1,272,635
PROFIT AND LOSS ACCOUNTS FOR THE YEAR ENDED 31DECEMBER 2001
(Rupees in ‘000)
MARK-UP / RETURN / INTEREST EARNED 22 1,893,168 1,845,658
MARK-UP / RETURN / INTEREST EXPENSED (1,454,885) (1,391,963)
NET MARK-UP / RETURN / INTEREST INCOME 438,283 424,695
PROVISION AGAINST NON- PERFORMING LOANS AND ADVANCES 10.3 (58,767) (47,614)
PROVISION FOR DIMINUTION IN THE VALUE OF INVESTMENT – –
BAD DEBTS WRITTEN-OFF DIRECTLY – –
NET MARK-UP / RETURN / INTEREST INCOME AFTER PROVISIONS 379,516 377,081
NON MARK-UP / INTEREST INCOME
FEE, COMMISION AND BROKERAGE INCOME 111,261 98,776
DIVIDEND – 593
INCOME FROM DEALING IN FOREIGN CURRENCIES 24 347,816 200,791
OTHERS INCOMES 76,906 65,769
TOTALS NON-MARKUP/ INTEREST INCOME 535,983 365,929
NON MARKUP/ INTEREST EXPENSES
ADMINISTRATIVE EXPENSES 25 (361,912) (348,680)
PROVISION AGAINST OTHER ASSETS (1,737) –
OTHERS CHARGES 26 (616) (408)
TOTAL NON-MARKUP / INTEREST EXPENSES (364,265) (349,088)
EXTRA ORDINARY / UNUSUAL ITEMS – –
PROFIT BRFORE TAXATION 551,234 393,922
TAXATION-CURRENT (315,000) (268,000)
-PRIOR YEAR 8,270 (958)
-DEFFERRED 25,908 39,422
27 (280,822) (229,536)
PROFIT AFTER TAXATION 270,412 164,386
UNAPPROPRIATED PROFIT BROUGHT FORWARD 996 8,695
PROFIT AND LOSS ACCOUNTS FOR THE YEAR ENDED 31DECEMBER 2001
REVERSAL OF PROVISION FOR DIMINUTION IN VALUE OF INVESTMENTS – 5,336
PROFIT AVAILABLE OF APPROPRIATION 271,408 178,417
TRANSFER (TO)/ FROM:
STATUTORY RESERVE (54,082) (32,877)
PROPOSED ISSUE OF BONUS SHARES @ 30% (2000; @25%) (234,816) 156,544
GENERAL RESERVE 20,000 12,000
UNAPPROPRIATED PROFIT CARRIED FORWARD 2,510 996
BASIC / DUTIES EARNINGS PER SHARE (Rupees) 28 3.45 2.1
Cash Flow Statement For the Year Ended 31 December 2001
Cash Flow From Operating Activities (Rupees in ‘000)
Profit Before Taxation 551,234 393,922
Dividend Income – (593)
Adjustment for Non-Cash Charges
Depreciation and Write Off 59,326 56,200
Provision Against Non-Performing Advances and Others Assets 60,504 47,614
Gain on sale of Operating Fixed Assets (1,678) (3,432)
Finance Charges on Leased Assets 3,069 4,844
(Increase) / Decrease In Operating Assets
Lending to/ Placement with Financial Institutions 1,409,108 (393,883)
Advances 673,327 (3,181,908)
Other Assets (Excluding Advance Payment) (160,634) (158,931)
Increase / (Decrease) in operating Liabilities
Bill Payable (95,211) 32,556
Borrowings From Financial Institution (1,959,257) 410,204
Deposit and Other Account 2,024,291 1,767,302
Other Liabilities (Excluding Current Taxation 88,739 45,328
Income Tax Paid (209,367) (93,407)
Net Cash Flow From Operating Activities 2,443,451 (1,074,184)
Cash Flow From Operating Activities
Net Investment in Available For Sale Securities (1,740,025) 1,241,129
Dividend Income – 593
Investment in Operating Fixed Assets (63,376) (59,470)
Sale Proceed of Property and Equipment Disposed-off 1,941 3,642
Net Cash Flow From Investing Activities (1,801,460) 1,185,894
Cash Flow From Financial Activities
Receipt / (Payment) of Leased Obligation 1,845 (18,994)
Increase in Cash And Equivalents 643,836 92,716
Cash and Cash Equivalents at Beginning of the Year 1,959,166 1,866,450
Cash and Cash Equivalents at End of the Year 29 2,603,002 1,959,166
STRENGTHS AND WEAKNESSES
Like any other sphere of modern life, banking too has now gone very profound and vast. As the past era witnessed revolution, changes and innovation in every field of life, banking also went through different shares. Through the basic facts remain same but the practice application and operations have taken different shape.
During my internship I noticed some deficiencies of the Soneri Bank which are following
Rate of interest on different financial schemes like Car Financing are higher as compared to Faysal Bank.
Another deficiency is the non availability of on-line banking in Multan branch. Because many of Private Banks are on-line in Multan. If Soneri Bank wants to compete with them, then on-line banking must be immediately introduced in Multan Branch, because it facilitate the customer and helpful to provide the quality services.
Credit card facility is another key deficiency in the Soneri Bank. Now a day’s credit card is very common in our day life. Every well reputed customer want credit card so this facility must be introduced as soon as possible. Through credit card you can enjoy the facility of home shopping by online.
The strengths of the SBL include the rigid hierarchy level but it is a very pleasant sign that the employees of all levels are so loving, friendly and cooperative with each other. They enjoy working with keen interest.
The most important thing that I observe during my internship period is that all the employees are shows and serves the customers with best ethical values that are so important to win the faith and confidence of the valuable customers.
There is another thing goes towards the favor of the SBL is the good working environment for the employees. In the break time the employees have the opportunity to gather for lunch and during the lunch they did the informal talk with each other.
All the complaints from the employees and customers are handled by the operations manager and take the immediate corrective action to address the problem.
SUGGESTION AND RECOMMENDATION
1- Building of the office is compress. It should be wide and opened
2- Bank staff is not Upto the required number. So staff should be immediately increased.
3- We should run with the pace of time, so ATM machine is the requirement of the changing environment of the world.
4- Tele-Banking facility should be immediately introduced in Multan Branch.
5- One branch in Multan city if not sufficient, even now the population of Multan is increased more than 1.4 million. More branches should be opened in the different territory of the city.
6- Out dated token system should be eliminated. A new system in this regard should be introduced to facilitate the respectable Customer.
PATTERN OF SHAREHOLDING AS AT 31 DECEMBER 2001
NO. OF HAVING SHARES SHARES HELD PERCENTAGE
SHAREHOLDER FROM TO
841 1 100 32180 0.0411
2274 101 500 457128 0.5840
472 501 1000 321173 0.4103
3710 1001 5000 5327744 6.8067
143 5001 10000 964503 1.2322
40 10001 15000 486410 0.6214
16 15001 20000 274309 0.3505
11 20001 25000 248807 0.3179
8 25001 30000 218195 0.2788
5 30001 35000 158759 0.2028
8 35001 40000 300235 0.3836
7 40001 45000 295479 0.3775
2 45001 50000 94875 0.1212
2 50001 55000 104113 0.1330
1 55001 60000 59193 0.0756
1 60001 65000 60482 0.0773
2 65001 70000 131430 0.1679
1 70001 75000 75000 0.0958
1 75001 85000 78971 0.1009
2 85001 90000 173878 0.2221
1 90001 100000 90098 0.1151
1 100001 115000 102500 0.1310
1 115001 120000 116531 0.1489
1 120001 155000 121177 0.1548
1 155001 180000 155157 0.1982
1 180001 205000 184593 0.2358
1 205001 210000 206250 0.2635
1 210001 235000 213468 0.2727
2 235001 325000 474374 0.6061
1 325001 330000 329262 0.4207
1 330001 345000 333656 0.4263
1 345001 415000 350000 0.4472
1 415001 495000 415593 0.5310
2 495001 600000 995097 1.2713
1 600001 930000 603451 0.7710
1 930001 975000 934439 1.1938
1 975001 1375000 977375 1.2487
1 1375001 1730000 1378825 1.7616
1 1730001 2140000 1733720 2.2150
1 2140001 3105000 2142870 2.7377
1 3105001 3910000 3106250 3.9685
9 3910001 18220000 35222642 45.0004
1 18220001 18225000 18221683 23.2800
7580 78271875 100