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Internship Report Page 1
EXECUTIVE SUMMARY
According to our internship program, I completed my six weeks internship at Soneri Bank
Limited, Thokar Niaz Baig LHR Branch. Soneri Bank Limited is playing an important role in thefinancial and economic development of Pakistan. The banking structure in Pakistan comprises of
the following types, State Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks,
Saving banks, Cooperative banks, specialized credit institutions. The state bank of Pakistan is the
Central bank of the country and was established on July 01, 1948. The network of bank branches
now covers a very large segment of national economy. The State Bank of Pakistan issues the
shares of these periodically. Bank employees and other common peoples can also purchase these
shares and earn profit. I have given the working of each and every department in which I worked
and learned during my internship.
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ACKNOWLEDGEMENT
In the name of ALLAH, the most Beneficial and the most Merciful, HE is the one whogave me courage and made me the super creature with great knowledge and able me to
accomplish this work. Success is hard to achieve and I thanks to Allah Almighty for
giving me valor to finish this internship report successfully. The internship has given me
an opportunity to learn a lot about practical life and this will be memorable for me in the
whole future academic and professional life. I hope that this experience will help me
throughout my life. I pay special gratitude to my internship teacher sir Saleem Anjum who
led me through this task whenever I needed his guidance. Hope for his guidance for the
future projects as well.
I express my fondest affection for my parents who prayed for my success and encouragedme. I appreciate and acknowledge the patience, understanding and love provided by them.
It is of course the reward of their good wishes and kind blessings.
The acknowledgement will remain incomplete without special thanks to my co-interns for
their excellent cooperation and nice companionship during the internship.
I am indebted to all the staff of Soneri Bank Limited, Thokar Niaz Baig Branch LHR who
appreciated all my work, supervised me, provided their assistance to me when I needed
and inculcated their knowledge in me. Without their cooperation, I would never have
been able to complete this Internship contentedly and with pleasure.
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INTRODUCTION
A bank is a financial institution which deals with money and credit. It accepts deposits from
individuals, firms, and companies at a lower rate of interest and gives at a higher rate of interest to
those who apply for loan. The difference between the terms at which it borrows and those at
which it lends from the source of its profit, it is also called the spread. A bank, thus, is a profitearning institute. Any bank that performs this functioning is called the commercial bank.
A bank is a firm which collects money from those who have it spare. It lends money to
those who require it.
Soneri Bank Limited was formally incorporated on September 28, 1991. The first Branch
commenced operations in Lahore on April 16, 1992, followed by the launch of Karachi's first
Branch on May 09, 1992. The bank currently operates 186 branches, spread all over Pakistan
including the Northern Areas of the country. The banks expansion policy is based on the
principle of maintaining a balance between the urban and rural areas.
Soneri Bank Limited is one of the fastest growing financial institutions of Pakistan. Bank
continues to build a track in its quest for excellence. Soneri Bank Limited continually endeavors
to develop a wider spectrum of innovative financial products based on consumer needs. The aim
is to ensure customer satisfaction by providing high quality banking products and services. This ismade possible by the professionalism of employees, all of whom are provided with the requisite
training and opportunities to enable them to realize their full potential.
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ContentsEXECUTIVE SUMMARY ............................................................................................................................ 1
ACKNOWLEDGEMENT .2
INTRODUCTION .......................................................................................................................................... 3
TABLE OF CONTENT .4
PROFILE OF THE BANKING INDUSTRY ................................................................................................. 6
PROFILE OF THE COMPANY .................................................................................................................... 7
THE MANAGEMENT: .............................................................................................................................. 8
VISION STATEMENT OF THE COMPANY ............................................................................................ 10
MISSION STATEMENT OF THE COMPANY .......................................................................................... 10
POLICIES OF SONERI BANK LIMITED: ............................................................................................. 11
CORE VALUES OF SONERI BANK LIMITED: ................................................................................... 12
COMPETITIVE STRATEGY OF SNBL: ................................................................................................ 13
HIERARCHY MANAGEMENT OF THE COMPANY .......................................................................... 15
HUMAN RESOURCE POLICIES OF THE COMPANY ....................................................................... 16
MARKETING STRATEGIES OF THE COMPANY .............................................................................. 17
INFORMATION TECHNOLOGY .......................................................................................................... 18
INDUSTRY BUSINESS PROCESS ............................................................................................................ 21
BANKING BUSINESS PROCESS .......................................................................................................... 21
BUILDING A BETTER BANKING BUSINESS PROCESS .................................................................. 21
BUILD INTELLIGENCE AND AGILITY INTO PROCESS WITH PEGA BPM ................................. 21
COMPANY BUSINESS PROCESS ............................................................................................................ 24
COMPANY DEPARTMENTAL FUNCTIONS .......................................................................................... 24
GENERAL BANKING ............................................................................................................................ 24
CLEARING .............................................................................................................................................. 25
REMITTANCE ....................................................................................................................................... 27
DEMAND DRAFT ............................................................................................................................... 27
PAY ORDER ........................................................................................................................................ 29
MAIL TRANSFER ............................................................................................................................... 30
RECEIPTS AND PAYMENTS .................................................................................................................... 32
7. STOP PAYMENT ................................................................................................................................. 33
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ACCOUNT OPENING DEPARTMENT ................................................................................................. 33
ACCOUNT OPENING............................................................................................................................... 34
Salaried Individuals ................................................................................................................................ 36
Self -Employed/Business men ............................................................................................................... 36
Sole proprietorship ................................................................................................................................. 36
Minor Account .......................................................................................................................................... 36
Limited Company ................................................................................................................................... 36
Clubs/Societies/Associations ................................................................................................................ 37
Trusts ........................................................................................................................................................ 37
LETTER OF THANKS ............................................................................................................................ 39
SCRUTINY OF CHEQUES ......................................................................................................................... 39
POSTING OF CHEQUES/OTHER INSTRUMENTS AND FIXATION OF STAMP AS PER NATURE
OF PAYMENT ......................................................................................................................................... 40
CUSTOMER SERVICE: ........................................................................................................................ 41
TYPES OF ACCOUNTS .......................................................................................................................... 42
FOREIGN TRADE ................................................................................................................................... 48
EXPORT REFINANCE SCHEME .......................................................................................................... 56
CREDITS AND CREDIT ADMINISTRATION DEPARTMENT ............................................................. 60
Features of credit department ............................................................................................................... 61
STEPS INVOLVED IN PREPARATION OF CREDIT LINE PROPOSAL ........................................... 63
FOREIGN CURRENCY ACCOUNTS DEPARTMENT ........................................................................ 65
FOREIGN REMITTANCES.............................................................................................................. 65
SWOT ANALYSIS OF BANKING INDUSTRY ........................................................................................ 68
STRENGTHS: .......................................................................................................................................... 68
WEAKNESSES: ....................................................................................................................................... 68
OPPORTUNITIES: ................................................................................................................................... 69
THREATS: ............................................................................................................................................... 70
SWOT ANALYSIS OF COMPANY ........................................................................................................... 70
IDENTIFICATION OF PLAUSIBLE PROBLEMS .................................................................................... 75
RECOMMENDATIONS FOR THE COMPANY ....................................................................................... 76
CONCLUSION ............................................................................................................................................. 78
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APPENDICES .............................................................................................................................................. 80
PROFILE OF THE BANKING INDUSTRY
In the banking industry, office and administrative support workers constitute 2 out of 3 jobs;
tellers account for about 3 out of 10 jobs. Many job opportunities are expected for tellers and
other office and administrative support workers, because these occupations are large and have
high turnover. Many management positions are filled by promoting experienced, technically
skilled professional personnel.
Banks safeguard money and valuables and provide loans, credit, and payment services, such as
checking accounts, money orders, and cashiers checks.
Banks also may offer investment and insurance products, which they were once prohibited from
selling.
Banks also may offer investment and insurance products, which they were once prohibited from
selling. As a variety of models for cooperation and integration among finance industries have
emerged, some of the traditional distinctions between banks, insurance companies, and securities
firms have diminished. In spite of these changes, banks continue to maintain and perform their
primary roleaccepting deposits and lending funds from these deposits.
Banking is comprised of two parts: Monetary AuthoritiesCentral Bank, and Credit
Intermediation and Related Activities. The former includes the bank establishments of the U.S.
Federal Reserve System that manage the Nations money supply and international reserves, hold
reserve deposits of other domestic banks and the central banks of other countries, and issue the
currency we use. The establishments in the credit intermediation and related services industry
provide banking services to the general public. They securely save the money of depositors,
provide checking services, and lend the funds raised from depositors to consumers and businesses
for mortgages, investment loans, and lines of credit.
There are several types of banks, which differ in the number of services they provide and theclientele they serve. Although some of the differences between these types of banks have lessened
as they have begun to expand the range of products and services they offer, there are still key
distinguishing traits. Commercial banks, which dominate this industry, offer a full range of
services for individuals, businesses, and governments. These banks come in a wide range of sizes,
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from large global banks to regional and community banks. Global banks are involved in
international lending and foreign currency trading, in addition to the more typical banking
services. Regional banks have numerous branches and automated teller machine (ATM) locations
throughout a multi-state area that provide banking services to individuals. Banks have become
more oriented toward marketing and sales. As a result, employees need to know about all types ofproducts and services offered by banks. Community banks are based locally and offer more
personal attention, which many individuals and small businesses prefer. In recent years, online
Bankswhich provide all services entirely over the Internethave entered the market, with some
success. However, many traditional banks have also expanded to offer online banking, and some
formerly Internet-only banks are opting to open branches.
Savings banks and savings and loan associations, sometimes called thrift institutions, are the
second largest group of depository institutions. They were first established as community-based
institutions to finance mortgages for people to buy homes and still cater mostly to the savings and
lending needs of individuals.
Credit unions are another kind of depository institution. Most credit unions are formed by people
with a common bond, such as those who work for the same company or belong to the same labor
union or church. Members pool their savings and, when they need money, they may borrow from
the credit union, often at a lower interest rate than that demanded by other financial institutions.
PROFILE OF THE COMPANY
Soneri Bank Limited (the Bank) is engaged in banking services. The Bank operates in four
segments. Corporate banking includes syndicated financing and services provided in connection
with mergers and acquisition, underwriting, privatization, securitization, research, debts, equity,
syndication, initial public offering (IPO) and secondary private placements. Trading and sales
includes fixed income, equity, foreign exchanges, commodities, credit, funding, own position
securities, lending and repos, brokerage debt and prime brokerage. Retail banking includes retail
lending and deposits, banking services, trust and estates, private lending and deposits, bankingservice, trust and estates investment advice, merchant / commercial / corporate cards and private
labels and retail. Commercial banking includes project finance, real estate, export finance, trade
finance, factoring, leasing, lending, guarantees, bills of exchange and deposits. As of December
31, 2010, it operated 184 branches.
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THE SPONSERS:
The Sponsor Directors are from M/s. Rupali Polyester Limited who enjoy excellent reputation in
the country both professionally and financially and who have invested over Rs.10 billion i.e.
U.S.$. 200 million approximately in various industrial & commercial projects of the country.
THE
Financial Highlights
(Rs. in Millions)
. 1999 1998
Share-Holders Equity 1,103 970
Deposits 12,262 11,040
Financing to Customers 7,797 6,631
Investments 7,116 6,142
Total Assets 17,730 14,860
Pre-Tax Profit 382 335
Import & Export Business 31,574 24,112
Break-up Value of Share 22.01 Rs.19.36
(Face Value Rs.10/= each
No. of Accounts 95,687 75,115
Pay out to share-holders has been
1993 10 Percent Right Shares
1994 15 Percent Bonus Shares
1995 15 Percent Cash Dividend
1996 17.5 Percent Cash Dividend
1997 20 Percent Bonus Shares
1998 10 Percent Interim Bonus Shares10 Percent Final Cash Dividend
1999 25 Percent Bonus Shares
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THE MANAGEMENT:
The President & Chief Executive of the Bank Mr. Safar Ali K Lakhani, a carrier banker with
experience spread over a period of more than 35 years, has had extensive exposures to domestic
and international banking both at home and abroad. He has a team of professional and
experienced bankers to assist him.
SERVICES:
Soneri Bank offers a full range of Corporate, Treasury, and Retail Banking Services with
emphasis on Trade-related services to importers and exporters. The essence of business
philosophy is to cater to the banking requirements of small & medium sized entrepreneurs,
providing them qualitative & competitive services. Emphasis is on encouraging exports and major
portion of the advances portfolio of the bank is related to export financing
Mindful of the requirements of automation the bank has started Soneri Tele-Banking Service & in
the first phase installed two ATMs at important locations in Karachi while the work for
connecting the branches on line for customers convenience is being actively pursued.
INTERNATIONAL RELATIONS:
The extensive correspondent network in just eight years of operations and the excellent relations
maintained have proved valuable in bank's efforts in conducting international banking business.
The bank was able to handle trade finance business of over Rs. 31 billion in 1999. (approx. U.S.$.
600 million)
HUMAN RESOURCE DEVELOPMENT AND TRAINNING PROGRAM:
Great emphasis is laid on the development of human resources. The bank regularly sends officers
and executives to attend Banking Seminars both inside the country and abroad. Foundation
courses for the new entrants in banking are a continuing feature in our academy. Because the
soneri bank provides its employees chances of further training according to its plans and policies
after selection and recruitment.
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VISION STATEMENT OF THE COMPANY
To provide visionary services and dynamic banking solutions to cater the needs of all our
stakeholders.
MISSION STATEMENT OF THE COMPANY
To develop Soneri bank into an aggressive and dynamic financial institution having the
capabilities to provide personalized services to 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
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OBJECTIVES OF SONERI BANK LIMITED:
SNBL as being privately owned, the primary objective is maximum net profit, growth of business
and to capture maximum potential market. The operating results of SNBL shows an impressive
improvement compared to the last financial year and the improving return on assets indicate the
increasing operational and administrative efficiency, just because SNBL is continually achieving
its objectives. These objectives are:
To get maximum net profit by keeping and maintaining different kinds of institutionaland individual account.
Optimize utilizations of assets. To meet customer satisfaction and get maximum potential from the Market. To develop a wider spectrum of innovative financial products based on the consumer
needs.
Provide convenience to its clients. Products must get considerable success in the market. Well-integrated branch network that offers greater potential for servicing a larger client
based through high value products.
Consumer durable financing. Long term planning.
POLICIES OF SONERI BANK LIMITED:
SNBL since its establishment has been providing excellent services all because of the
strengthened policies and strategies set out by its Broad and Management, these policies cover all
grounds of good banking, following is the road map to their success:
Customer satisfaction will always remain the number one benchmark; the aim is tomaximize value for clients by offering high quality financial solutions that best meet
their current needs and long-term goals.
Bank is continuously looking for expansion in terms of deposits so highly dedicatedBusiness development Officers (B.D.Os) is being hired. To maintain sufficient resources over a long period of time and utilize them in
productive way. This can be done through Liquidity Management and Credit Risk
Management.
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To promote strong and ethical business practices in the industry by focusing more oneffective collaboration with stakeholders.
The corporate policy focuses on striking the optimum balance in organizationalworkflows and processes.
The policies include; employ and retain an unparalleled workforce of highly motivated,energetic, well-trained and productive employees, and offer them an inspiring workenvironment, competitive salaries, excellent benefits and caring leadership.
SNBL is committed to the personal welfare and professional development of all teammembers and sharing expertise and operational excellence across the groups.
The Bank is fully aware that branch network has direct impact on the business so; anintensive branch network will be established all around the Country.
CORE VALUES OF SONERI BANK LIMITED:
SNBL is firmly grounded with a corporate philosophy that incorporates five solid values, which
each individual associated with the bank. These values and business principles provide the
framework within which they carry out their operations, abides by:
HUMALITY:Bank encourages a culture of mutual respect and treats team members and customers both
with humility and care.
INTEGRITY:Integrity means a synergic approach towards abiding the core values. United with the
force of shared values and integrity, SNBL forms a network of a well-integrated team.
MERITOCRACY:At every level, from selection to advancement, Soneri has designed a consistent system of
human resource practices, based on objective criteria throughout all the layers of the
organization. Bank is, therefore, able to achieve a specific level of performance at every
layer of the organization.
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TEAM WORK:SNBL team strives to become a cohesive and unified force, to offer you, the customer, and
a level of service beyond ones expectations. This force is derived from participative and
collective endeavors, a common set of goals and a spirit to share the glory and the strengthto face failures together. The entire department heads work with their subordinates as team
members they provide them help and guide them to achieve their goals.
CULTURE OF INNOVATION:The Bank aims to be proactively responsive to new ideas, and to respect and reward the
agents, leaders and creators of change.
COMPETITIVE STRATEGY OF SNBL:
The strategy used by the management to position SNBL in such a way that it will have distinctive
advantage over its competitors.
COST LEADERSHIP:SNBL adopted the strategy to be the cheapest services provider (the cheapest rates for the services
of Remittance, foreign trade etc), and the lowest interest rates for their products.
DIFFERENTIATION:The strategy an organization follows when it wants to be unique among its competitors with
unique products and value added services.
TARGET MARKET:The target market, of SNBL, is not only the conventional consumers but the corporate sector as
well.
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UNIQUE PRODUCTS AND SERVICES:SNBL plans to introduce innovative and flexible financial products and services.
LOWEST RATES:The rates will be surely charged less than the competing products of other banks.
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HIERARCHY MANAGEMENT OF THE COMPANY
President
Board of Director
Member Executive Board
Regional Chief
Zonal Chief
Branch Manager
Officer Grade I
Officer Grade II
Cashier
Clerks
Peon
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HUMAN RESOURCE POLICIES OF THE COMPANY
People oriented Deployment, Promotion and selection policies:
Bank has formulated and put in place well documented and comprehensive deployment,
promotion and selection policies oriented towards identifying the best talent and providing
opportunities for fast-track growth and development. Some of the prominent HR policies put in
place are
HR Resourcing policy
Promotion policy for officers
Transfer policy for officers Promotion policies for clerical and subordinate cadre Overseas selection policy Talent identification & Grooming programs
Various programs are being run by the Bank for grooming of officers in specialized areas of
Credit, Forex, Treasury / Dealing, Wealth Management, for grooming of Branch heads, etc.
HRNes (Human Resource Network for Employee Services)
"HRNes" covers the entire gamut of human resources management function in the Bank currentlybeing performed and also includes many new sub-functions. It comprises of four broad modules
encompassing different functions.
Grooming and etiquettes programs:
Grooming and etiquettes programs are being conducted for front-line employees and also for
employees selected for overseas posting in order to improve their service levels and qualitative
interaction with customers and various stakeholders better.
SEED (Self efficiency and effectiveness development) programmed being run for frontline staff
of the Bank in order to improve their service skills and servicing efficiency.
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MARKETING STRATEGIES OF THE COMPANY
Bank is amongst first in the industry to complete an all-inclusive rebranding exercise wherein
various novel customer centric initiatives were undertaken along with the change of logo. The
initiatives include setting up of specialized Branches and Retail Loan Factories/ SME LoanFactories with an assembly line approach of processing loans for speedy disbursal of loans.
The major ongoing initiatives of the Bank are detailed below:
Business Process Reengineering (BPR):
Bank had initiated a major Business Process Reengineering to give a big boost to sales growth by
enhancing customer satisfaction and by making possible alternate channel migration thus
reinventing itself to challenges of the 21st century.
People Initiatives:
Bank is endowed with a competent and motivated employee base which is engaged in handling
the extensive business operations of the Bank across the globe. Strategic HR interventions like,
according cross border and cross cultural work exposure to its managers, hiring diverse functional
specialists to support line functionaries and complementing the technical competencies of its
people by imparting conceptual, managerial and leadership skills, gave the Bank competitive
advantage. People initiatives were blended with IR initiatives to create an effectively harmonious
workplace, where everyone prospered.
New Technology Platform:
Bank has made substantial progress in its end-to-end business and IT strategy project covering the
Banks domestic, overseas and subsidiary operations. All Branches, Extension Counters in
Pakistan, overseas business and five sponsored Regional Rural Banks are on the Core Banking
Solution (CBS) platform.
Bank has been providing to its customers Internet Banking, viz., Online and other facilities such
as online payment of direct and indirect taxes and certain State Government taxes, utility bills, rail
tickets, online shopping, donation to temples and institutional fee payment. Bank has a widenetwork of ATMs across the country and has also launched mobile ATMs in select cities.
Initiatives have been taken to provide corporate customers with facilities like direct salary upload,
trade finance and State Tax payments etc. Bank has introduced Mobile banking.
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Marketing Initiatives:
Ever since its reinforced by alternate delivery channels such as internet banking, ATMs, mobile
banking etc. and robust delivery outfits like Retail Loan Factories, SME Loan Factories, and City
Sales Office etc. Banks constant endeavor to strengthen its branch/ATM network combined with
well-informed staff offering personalized service at its various touch points have enhanced
customer interactions and satisfaction. Thus the Bank has firmly positioned itself as a
technologically advanced customer-centric bank.
The Future:
Revolutionary and discontinuous changes in the operating environment are stark reminders that
business success is 'impermanent'. Bank has achieved substantial progress in technology and is
continuously integrating multiple platforms of technology to generate synergies. Bank
continuously attempts to adapt to the dynamic economic environment while engaging in long
term relationships to provide superior customer service.
Banks constant endeavor to delight its customers, which is built on its strong fundamentals will
make it stronger, more resilient and enable to achieve its vision of to be the Most Admired Bank.
INFORMATION TECHNOLOGY
The importance of information technology can hardly be denied in modern businesses, because in
the last two centuries IT has had dramatic impacts in almost every aspect of an organization. It is
argued that IT is much more different and pervasive than the earlier technologies, particularly in
terms of reducing cost of power and processing capabilities and in making an organization a
successful unit in a true sense.
Information technology is revolutionizing not only the internal environment of an organization,
but also having long lasting impacts on the external environment of an organization. In this
modern era more and more organization are diverting towards GLOBALIZATION, and the only
thing that could give them stand in this change and challenging environment is the recognition of
fact, that they have to keep abreast with all these changing technologies. Recognizing the
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dynamic nature of information technology SNBL is restructuring its banking infrastructure
through I.T to achieve dramatic improvements in terms of:
Increased efficiency & effectiveness Reduced need for people to perform repetitive work Higher level jobs requiring training and development
To keep abreast with changing technologies the bank is relying heavily on the extensive usage of
computing resources and technologies. The networking system is one of these facilities that is
connecting not only the internal structure of a bank, but also linking different branches nationally
as well as internationally. In specific terms, the bank is using network environment for these
reasons:
Hardware Sharing Data and Information Sharing Software Sharing Facilitated Communications
DEFICIENCIES IN INFORMATION TECHNOLOGY:
No doubt, banks Information system is meeting almost all the requirements of the bank, but it issuffering from some serious deficiencies that can cause great havoc to the sensitive business of
banking. These problems are:
Performance of control functions by non-qualified operators. Control functions are not being separated and rotated on regular basis where the
situation warrants so.
Network control software is not restricting the operator access from performing certainunauthorized tasks.
Network control software is not maintaining the Audit Trail of operators activities. Network standards and protocols are not documented and made available to the
operator.
Network access by the security engineers is not closely monitored and reviewed todetect any unauthorized access.
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Data encryption no doubt used by the bank but not up to that extent where it should be.
RISK OF THESE DEFICIENCIES:
Loss of data and program integrity through unauthorized changes. Lack of current data protection through inability to maintain version control. Virus infection. Violation of software licenses because of unlicensed and excessive numbers of software
copies.
Impersonation or masquerading Internal users sniffing and spooning. Destruction of logging and auditing data.
Now in the next section, I am going to give insight to different cells of SNBL ThokarNiazBaig
Branch, Lahore in which I have stayed during my internship.
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INDUSTRY BUSINESS PROCESS
BANKING BUSINESS PROCESS
Banks are highly focused on business process improvement. Existing processes and services need
to be documented with a focus on identifying commonalities, redundancies andinterdependencies. The inefficiencies need to be moved, which will drive out cost and improve
agility. Process then need to be modeled and simulated. Doing this will provide the foundation
for business and IT transformation. Leading banks use business analytics to predict and prevent
credit frauds, saving millions. Retailers use business analytics to predict the best location for store
and how to stock them. Pharmaceutical firms use it to get life- saving drugs to market more
quickly. Even sports teams are getting in on the action, using business analytics to determine both
game strategy and optimal ticket prices.
BUILDING A BETTER BANKING BUSINESS PROCESSTodays retail and wholesale banks face unprecedented operational pressures that test the
efficiency, effectiveness, and agility of their business processes. The typical banking business
process often fails the test, struggling to adapt to shifting marketplace demands and regulatory
requirements. Lending institutions of all stripes are looking to build a better banking business
process, intelligent enough to successfully balance business objectives with customers desires,
and agile enough to keep pace with a dynamic operational environment.
BUILD INTELLIGENCE AND AGILITY INTO PROCESS WITH PEGA BPM
For more than 25 years, major financial institutions have relied on Pegasystems to help themadapt to a changing marketplace. The recognized leader in business process management, Pega
systems delivers financial services solutions that enable domestic and global banks to reach new
levels of customer satisfaction, operational excellence, and business agility. Pega BPM is
distinguished by powerful and flexible business rules capabilities that support the creation of
highly intelligent business processes; and by revolutionary automated programming technology
that enables business users to drive banking business process change with minimal involvement
from over-stretched IT staff.
With Pega financial services software, you can build a better banking business process in key
areas such as:
http://www.pega.com/products/business-process-managementhttp://www.pega.com/products/decision-management/business-ruleshttp://www.pega.com/products/decision-management/business-ruleshttp://www.pega.com/products/business-process-management -
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New business acquisition and on-boarding By putting the power of banking business
process creation and modification in the hands of business users, Pega BPM enables you to
rapidly roll out promotions or enter new markets. Pega BPM also helps you to evaluate and
optimize campaigns, and to develop more effective and efficient on-boarding processes.
Intelligent automation With Pega BPM, you can quickly and easily automate banking
business processes and tasks to eliminate manual handling and reduce costs and errors.
Customer relationship management Pega BPM helps you to deliver superior customer
service levels while maximizing per-customer profitability. For example, with a combination of
point-of-interaction process automation and decision-making support for agents, Pega banking
contact center solutions dramatically increase first-contact resolution rates.
Risk, fraud, and compliance Pega banking business process solutions can help your
institution gain the agility you need to successfully comply with regulations, mitigate risk, and
stop fraud. Process automation ensures consist compliance with regulations and corporate policy,
while advanced analytics help detect early signs of fraud or excessive portfolio risk. Pega BPM
also generates comprehensive audit trails and supports specialized compliance reporting
BANKING
Retail banking customers expect more personal and relevant communications from financial
institutions that recognize their unique needs. They want each interaction to be timely and
efficient. Banks that deliver a personalized experience will not only retain current customers
longer, but also will maximize the potential long-term value of these customers.
Select your business challenge: Reduce CostsGrow Revenue
Retain Profitable Customers
Shorten Processing Time
Ensure Brand Consistency
Whether youre banking globally or regionally, the document processing represents a major
opportunity to reduce costs. How? By streamlining basic banking processes like account opening,
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mortgage and loan processing, and broad-scale document printing.
REDUCES COST
we help financial institutions improve and streamline processes that impact clients, client-facing
staff and revenues. By reducing the time and expense required to onboard a clientas well as thecosts around equipment, supplies, service and power consumptionwe can help banks operate
more efficiently.
1. Minimize or eliminate the need to courier documents between locations forprocessing.
Digitization and electronic transfer of documents dramatically reduce the need for manual
intervention in client account opening, residential mortgage processing, equity credit lines
and personal loans. By drastically reducing paper, well help you remove process steps,
better serve your clients and manage your bottom line.
2. Know the true cost of your print infrastructure. Whether its your corporate office, branch or back-office customer service and operations
environment, we can manage all of your office devicesprinters, copiers, fax machines
and scannersregardless of manufacturer or model. We also manage the supplies,
maintenance, support and training that go along with them. Based on your specific
requirements, we design the optimal document output environment for you. This helps
you boost productivity and reduce costs by as much as 30% over time.
3. Reduce cost and waste stemming from preprinted inventories and obsolete collateral. By optimizing your centralized operations, we can deliver highly flexible,customized solutions. We can help manage your internal and outsourced document
production -- like pitch books, client presentations and marketing materials -- while
providing a single point of control. From job submission and high-quality color to
complete finishing and distribution, we can take your operations to the next level.
4. Enjoy more sustainable operations.Optimize your print environment to use less paper, power and equipment. We thoroughly
analyze your current print processeswhether centralized ordistributed across local
offices -- to help you make a real impact on your sustainability goals. As more financial
services firms decrease their carbon footprint, the print environment is an optimal place tostart to achieve a measurable impact.
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COMPANY BUSINESS PROCESS
Soneri Bank Limited was formally incorporated on September 28, 1991. The first Branch
commenced operations in Lahore on April 16, 1992, followed by the launch of Karachi's firstBranch on May 09, 1992. The bank currently operates 191 branches, spread all over Pakistan
including the Northern Areas of the country. The banks expansion policy is based on the
principle of maintaining a balance between the urban and rural areas.
We take great pride in offering services even in the remote areas of Pakistan. Our fully air-
conditioned and computerized branches provide a pleasant, convenient and hassle free banking
experience every time.
The essence of our business philosophy is to cater to the banking requirements of small &
medium sized entrepreneurs, effectively 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.
COMPANY DEPARTMENTAL FUNCTIONS
I did my internship in Soneri Bank Limited Thokar Niaz Baig Branch Lahore. This internship
period comprises of 6 weeks. I work in almost all departments and learn about them and their
working. Now I am writing about the departmental functions of the company from my learning.in
this branch basically there are three main departments in which the other departments lies orrelates to them. These are
General Banking Department
Trading Department
Credit Department
GENERAL BANKING
General banking is the basic department of every bank. General banking is basically
consumer banking. And I spent most of my internship period by working and assisting in
general banking.
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Functions of General Banking Cell
1) Clearing (inward & outward)2) Remittances3) General ledger transactions4) Issuance of Lockers5) Cash receipt and payment6) Cash management7) Stop Payments
CLEARING
I worked one week in this department. In this department I learned that how the clearing and
transfer of money from one branch to another branch takes place. Following are the job
responsibilities in this department:-
a) Clearing of inwards and outwards chequesb) Payment of IBC (Inward Bills For Collection)c) Lodgment of LBC (Local Bills for Collection), OBC (Outward Bills for Collection) and
their Realization.
Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. The clearing in
Karachi at SONERI BANK or other banks is being done through NIFT (National Institute ofFacilitation Technology).
The banker's clearing is supervised by State Bank of Pakistan. Clearing arrangements are
made so that banks exchange and settle for local cheques, drafts and other banking
instruments drawn on each other deposited by their customers or received for collection or
clearance.
Clearing is a system by which banks exchange cheques and other negotiable instruments
drawn on each other within specified areas and thereby secure payment for their clients
through clearing house at specified time.
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Clearing can be distinguished into two categories outward clearing & Inward clearing:
PROCESSING OF OUTWARD CLEARING (Collections)
Outward cheques are those cheques that are presented in the bank for collection. Cheques
are received from the clients. These cheques are received along with a deposit slip. One
part of the deposit slip is returned to the customer with a clearing stamp on it. The date of
clearing is one day ahead of the current day, because it takes one day for a cheque to get
clearance. The cheques are then sort out as local and outstation. The details of the cheque
i.e. the amount, cheque number, the account number and the name of the Drawees bank
are entered. These cheques are then prepared to be sent to the clearing house. SNBL sends
the cheques through NIFT (National Institutional Facilitation Technologies Pvt. Limited).A slip and a sheet are along with the cheques to ensure that all the cheques are being
entered and sent.
PROCESSING OF INWARD CLEARING (Payments)
Inward cheques are for payment on behalf of your account holder to the account holder of
another bank. Exchange and settlement of cheques and other instruments is done in the
clearing house. These cheques are received and then sort out. The process of sorting out
includes checking of all the necessary and required particulars. The signatures are also
verified.
PROCESSING OF RETURN CLEARING
If there is any particular missing in the cheques, then they are returned back to the
clearing house along with the memo that contains reasons of return by selecting the
specific reason.
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PROCESSING OF CHEQUES RETURNED
The cheques of the customers that are being returned by the Drawees bank due to any
reason stated in the cheque returning memo are given back to presenting back in the
clearing house. These cheques are returned to the customers and charges of Rs.200 are
collected for it. If there are more than one cheques of the same customer then he is
charged only Rs.200.
REMITTANCE
Transferring of funds from person to person, and from place to place, constitute the
concept of a remittance. Remittance is very important service provided by banks to
customer as well as non-customer. Soneri bank provides remittance facility to its
customers. It is not a free service hence is a continuous source of income for the bank and
includes the following modes, but these are not used so much now-a-days. Even that some
banks have ended these types of remittance.
I. Demand DraftII. Pay Order
III. Mail TransferIn remittance department like any other SONERI BANK also have instruments for transferring of
money, Telegraphic Transfer, Mail Transfer. In cash department both deposits and withdrawals
go side by side. This department works under the CD In charge and deals with cash deposits and
payments. This department maintains the following sheets, books, and ledger of account cash
received voucher sheet.
Following were the job responsibilities during my internship period in this department.
Issuance of Demand draft and their Computer feeding. Responsibility of DD Advice and its Payment. Issuance of Telegraphic Transfers and their feeding in Computer.
DEMAND DRAFT
Demand draft is a written order, drawn by one branch of a bank upon anotherbranch of the same bank, or upon another bank under special arrangements to pay a
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certain sum of money to or to the order of a specified person.
Demand draft is a negotiable instrument. Demand draft is neither issued payable to bearer nor drawn on branches situated
within the same city.
It is to be insured that the purchaser of Demand Draft is able to at least sign hisname.
Thumb impression is not to be accepted on DD. A person unable to sign and nothaving an account may be advised to apply for DD through a literate person to sign
on his behalf. To avoid complications DD are not to be issued to Minors.
The followings are the parties to a Draft:
I. Purchaser: Is a person, firm, company or local authority.II. Issuing or Drawing Branch: This issues a draft on another branch.
III. Drawee Branch: Is one on which a draft is drawn.IV. Payee: Is a person named in the Demand Draft to whom or to whose order the
money is directed to be paid.
PROCEDURE FOR ISSUANCE OF DRAFTS
An application on printed form is obtain for issue of demand draft. It should beproperly filled in and signed by the purchaser.
Before issuing the demand draft it must be seen that the cheque is in order andsufficient amount is available in the account of the drawer. If the manager is
satisfied with the creditability of the customer, he may issue a demand draft on
application and subsequently must obtain a cheque. Application form should be
used as a credit voucher, whereas the cheque is to be as a debit voucher. The
printed number of the cheque in such cases should be reported on the application
form of the customer.
If the customer has no account in a bank then he may also apply for a demand draftby providing cash at counter.
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Entries of DD
Entry in Issuing Bank
Customer A/c Debit
Head Office Credit
---------------------------------------------------------------------------------
Entry in Drawee Branch
Head office Debit
DD Payable Credit
----------------------------------------------------------------------------------
Entry when customer will draw amount from DD
DD payable Debit
Customer A/c Credit
----------------------------------------------------------------------------------
PAY ORDER
Pay order is meant for banks own payments but in practice these are also issued toour customer for making payments.
A pay order is written authorization for payment, made in a receipt form issued andpayable by the bank, to the person named and addressed therein on his giving a
proper discharge thereon.
It is issued by and drawn upon and payable by the same branch of the bank.
It is neither transferable nor negotiable and as such it is payable to the payee namedtherein.
Pay order cannot be issued to a minor. Sometime bank dont want to give itsdeposits to customer. So in that case pay order is given to that customer and he can
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use it for making payments. When customer wants to cash the pay order then the
amount of the pay order will be debited from the bank. If pay order submit to other
bank like MCB, ABL then the process of clearing will be adopt.
Following are the parties to a pay order:
I. Purchaser: Is a person , firm , company or local authorityII. Issuing / paying branch: This issues / pays on presentation.
III. Payee: is a person named therein.
Entries of issuance pay order
Customer Debit
Pay order payable Credit
---------------------------------------------------------------------------------
Entry when customer get amount from pay order
Pay order payable Debit
Customer Credit
---------------------------------------------------------------------------------
MAIL TRANSFER
Transfer of funds from one branch to another branch of the same bank within or outside
the city or upon other bank under special arrangement for the payment to the beneficiary
through Mail/ Courier services is called MAIL TRANSFER. A fund application is
submitted by the customer. The mail transfer instrument is not delivered to the applicant,
but instead it is sent by the issuing office to the beneficiary's branch. This type of
remittance facility is provided only if the beneficiary is the customer of the bank. The
amount is directly credited to the beneficiary's account. A bank's customer can very easilyremit the funds from one place to another, by giving instructions to the bank.
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Credit balance of the customer can also be transferred from one branch to another with the
help of this instrument. The customer can either deposit cash or get his account debited by
the amount that is to be remitted, including the bank charges.
Mail Transfer advice is prepared and the test number if written on the MT advice. The
advice is given to dispatch department for onward transaction. The particulars of mail
transfer are recorded in a mail transfer register.
Mail transfer is not negotiable. The funds remitted by Mail transfer are not payable to bearer.
Like TT, funds can be remitted by MT for the credit of the payees Account or the payee /
beneficiary can be advised to receive the amount from the Drawee branch either on cash
on proper identification.
But now-a-days these types of remittances are not used by the banks. Today bankers
cheque is its modern type which is drawn by the bank to the other bank out of city or in a
city which is confirm payment.
GENERAL LEDGER REPORT
General ledger transactions consist of general ledger report . There is a list of general
ledger transactions statements that consists of debit and credit statements. The effect of a
transaction is nilled by the opposite transaction of same amount. The debit statement is the
nilled by the credit transaction of same amount. In this way all the credit and debit
transactions are nilled by the debit and credit transactions of same amount. So the effect of
all transactions becomes zero.
ISSUANCE OF LOCKERS
SNBL provides safe deposit locker facility to its customers for safe keeping of their
valuables like precious documents, securities and jewelry etc
Thokar niaz baig branch has two sizes of lockers.
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Medium
In this locker the customer has two options.
One is the key deposit of Rs.2000 and annual rent of Rs.1700 on it.
The second is the key deposit of Rs.30, 000 which is refundable.
Large
In this locker the customer also has the two options.
One is the key deposit of Rs.2000 and annual rent of Rs.3500 on it.
The other is the key deposit of Rs.40, 000 which is refundable at the time of return.
RECEIPTS AND PAYMENTS
Separate counters for depositing cash or cheques and payment of cash against instruments
are present in the branch. Cheques are received and payment is made against them. The
signatures of the cheque are being verified by the CD in charge or manger operations.
SNBL also provides On Line Banking facilities to its customers. On line banking is
becoming an important element of the modern banking the on line banking is a time
saving and quick process of receiving and making payments. Keeping in view the
importance of online banking facilities to get a competitive edge the SNBL provides the
online banking facilities. On line banking mean that transfer of payments and receipts on
line. The account holder enjoys the online facility and the receiver can receive amount just
in few minutes. This branch after confirming the balance from their account will make the
payment to that person instead of receiving that payment in two or three days through
clearing.
6. CASH MANAGEMENT
This is done by balancing all the cash receipts and payments in the branch. It also includes
transactions with other branches and internal transfer of funds.
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7. STOP PAYMENT
The department also makes arrangements for stop payment of cheques on the request of
the client. The request of stop payment is made in the following case
The cheque has been stolen or lost To cancel the cheque, which has already been written out, and handle to thecounterpart, and the client will request the bank not to make the payment if presented.
ACCOUNT OPENING DEPARTMENT
Account opening department is the most important department in any commercial bank'soperations. The reason is that it serves as a first step in establishing customer-bank relationship.
The main objective of any bank is to attract as many new accounts and deposits as possible. In
order to fulfill this objective the first step is the opening of new accounts and maintaining the
existing ones. The department of account opening is the major source of doing so. That is why
such departments are maintained by all the banks in all their branches. SNBL thokarniazbaig
branch has an account opening department that provides services to new as well existing
customers. It provides a wide range of services to its customers and is strongly oriented towards
providing banking services to the needs of a business. Understanding the customer requirements
and guiding them accordingly is the basic function of this department.
This Branch is having about 2000 accounts but there was only one officer, Mr. NaumanAkhtar to
handle this tough work. He has to deal different people.
My experience in this department was really very good. I learnt how to handle different
customers, how to fill Account Opening Form, what are the required documents that should be
with you in order to open an account, what types of account Bank is offering to the customers,
what are the facilities that an account Holder can enjoy etc.
I have learnt the procedure that an Account Opening Officer has to follow in order to open and
maintain an Account.
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Functions of Account Opening Department
1. Account Opening2. Issuance of Cheque Books3. Scrutiny of cheques4. Posting of Cheques5. Account Closing6. Customer Service
ACCOUNT OPENING
It is the first and major function of the department. There are various steps involved in
opening of an account. When a person wants to open an account with the bank he is
required to fill an account opening form. Along with this account opening form certain
documents are to be attached to start a customer-bank relationship. There are certain
formalities to be fulfilled before opening an account depending upon the nature of account
and the nature of the customer.
PROCEDURE
ACCOUNT OPENING FORM:
A printed account opening form along with the requisition slip and the signature card is
given to the customer. The conditions for opening the account are also attached with the
form. It includes information regarding the customer's name, address, N.I.C no., telephone
no., Information about the account holder's successor is also to be filled in the account
opening form. This information is required to obtain the legal successor appointed by the
account holder. And after that these forms are authorized by the Branch manager and thenfurther proceedings takes place.
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INTRODUCTION:
The customer whose account is to be opened has to be introduced by an existing account
holder of the bank. The introducer is the person who makes an introduction of the accountopener by signing on his account opening form. The introducer should known of the
account opener and should know that the customer is bonafide i.e. he is opening the
account in his real name. Introducer is not a guarantor. His only responsibility is to locate
the customer if any problem comes up. The main purpose of getting the introduction o f the
account opener is to
Avoid any serious consequences Desirability of the customer Respectability Occupation and nature of business of the customer To get maximum information about the customer
REQUIRED DOCUMENTS:
Photocopy Computerized NICs of All concerned parties. Photocopy Passport, if NIC is not available Vernacular Form if signature are not in English Any photo ID in CNIC is not carrying a photo Three passport size photographs with thumbs impression for illiterate individuals or
having shaky signatures
Undertakings of signature differ with CNIC signatures.
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ADDITIONAL REQUIREMENTS:
Personal (Individual or Jointly)
Salaried Individuals
Employment certificate by the employer acknowledgement the individual as anemployee along with his salary, designation and period of employment on the letter
head and signed under rubber stamp of company/ organization/ firm/ proprietor etc
Attested copy of service card or any other acceptable evidence of service,including, but not limited to a certificate from the employer
Self-Employed/Business men
Copy of NTN certificate of the individual
For Sole Proprietorship, letter from the proprietor confirming proprietorship(Format available on request)
A letter head along with a rubber stamp for proof of business or any otheracceptable evidence for verifiable source of income
Sole proprietorship Letterhead from the proprietor confirming proprietorship(Format available) Rubber stamp of the company Copy of CNIC Copy of NTN
Minor Account
Form B (Birth Certificate) Guardians NIC
Limited Company
Board Resolution resolving to open an account and specifying the personsauthorized to operate the account.
Attested photocopies of Computerized CNICs of all the directors
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Certificate of Incorporation Memorandum and Articles of Association (First and last page signed and stamped
by CEO or Company Secretary)
List of Directors on Companys Letter Head duly signed by Chief Executive orCompany Secretary
Latest Copy of Form-29 duly attested by SECP Rubber stamp with designation on all documents Certificate of commencement of business (Public limited Company only)
Partnership
Attested copy of Partnership Deed duly verified by notary public and signed by allpartners of the firm.
Attested copy of Computerized NICs of all partners Rubber stamp of partners Partnership Mandate on letter head to operate the Account Attested copy of registration certificate (Form-c)- for registered firms only Attested copy of NTN Certificate
Clubs/Societies/Associations
Certified copies of rules/ by-laws Certified copies of Certificate of Registration Resolution of the Governing body/Executive Committee for opening of account
authorizing the persons to operated the account and attested copy of the authorized
person
An undertaking by all the authorized person on behalf of the institution mentioningthat any change will be informed to the banker immediately
Trusts Attested copy of certificate of Registration Attested copies of Computerized NICs of all the trustees Certified copy of instrument of Trust (notary public) Board Resolution resolving to open and operate the account
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Certified copy of By-laws
FILLING OF KYCS:
KYCs (know about your customer) are the bank documents that contain the complete
informations of customers that inc lude their personal information, about their work,
job and business and their total annual income and the amount of their total wealth in
case of business.
VERIFICATION OF DOCUMENTS AND ISSUANCE OF ACCOUNTNUMBER:
The documents provided by the account opener and their KYCs are verified by the
department head. In SNBL this verification is done by operations manager. The signatures
are also verified and a signature card is maintained for the purpose of future verification if
required. The account is then entered into the bank's system and processed for getting the
account number and the customer number. This system number comprises of following
components
Branch code: Account type code: Customer number.
And before it all the process of verification of documents and their stamping is done.
MINIMUM CASH REQUIREMENT:
After providing the properly filled form and all the necessary documents the account
holder has to deposit the minimum cash requirement for opening a specific accountaccording to bank's rules.
The customer's account is opened after following the above stated procedure .
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LETTER OF THANKS:
After this process a letter of thanks is sent to the customer in order to verify that the
address provided by him is correct.
ISSUANCE OF CHEQUE BOOK:
At the time of account opening a slip is also filled for the receiving of cheque book. After
the customer brings the letter of thanks to the bank he fills in the requisition slip for
obtaining a cheque book and receives the cheque book. This makes him the account holder
of the bank and now he is able to operate his account. The cheque book is of three types.
1) 25L2) 50L3) 100L
When one cheque book is finished the customer has to fill up a requisition slip at the end
of the cheque book and apply for a new cheque book.
SCRUTINY OF CHEQUES
On completion of formalities referred above the cheque is handed over to the ledger keeper and
other instruments to the concerned departments. Ledger keeper will again scrutinize check and
verify the points as given below:-
The account on which cheque is drawn is neither closed nor dormant or inoperative.
It bears token stamp on the reverse. The cheque is of our bank and the branch. The cheque is out of the cheque book(s) issued. The signature of drawer is there. The account number, title of account is there.
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Is not un-dated, post-dated, stale or out of date. Payment of the cheque has not been stopped by the drawer. There is no legal bar for the payment of cheque account is not attached, under lien or the
account holder is deceased.
The funds are available/sufficient to honor the cheque i.e. the amount does not exceed thecredit balance of the account (or the un-drawn portion of the sanctioned drawing power in
case of cash finance account or current account) having approved running finance facility.
Amount in words and figures tallies. No. previous entry in the ledger is un-authenticated. In case it is drawn on account marked as similar account, it should be ensured that the
cheque is being posted to the correct account.
Endorsement made thereon is prima facie in order. Alternations/mutilations/cuttings/over-writings, (if any) is confirmed by the drawer under
his full signatures.
In case cheque is presented in transfer delivery, Transfer Delivery stamp is affixed. The collecting banks discharge is in order. Crossings of other bank (if any) are properly cancelled. Where the cheque has been presented through clearing, it bears crossing and clearing
stamps of the same bank with date.
POSTING OF CHEQUES/OTHER INSTRUMENTS AND FIXATION OF
STAMP AS PER NATURE OF PAYMENT
After proper scrutiny the cheque is posted in the ledger/card folio number/sheet number of the
account is entered on the top left corner of the cheque and Pay Cash or TRANSFER stamp as
the case may be is affixed on the face of the cheque. The ledger keeper shall sign on the cheque
with the narration Entered to signify that it has been posted after proper checking and is in
order.
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Balance confirmation The account opening officer is responsible to provide answer to inquiries about
balance on telephone as well as personal visits of the customers.
Cheque clearing inquiries Account number confirmation Issuance of statements The bank provides statements of accounts on the requirement and instruction of the
customers. Normally the bank sends the statement of account after every six
months but if desired by the customer the statement can be sent on quarterly basis
monthly basis or even weekly basis.
TYPES OF ACCOUNTS
Soneri Bank Limited is currently offering following deposit accounts:
1. Current Account2. P&L Saving Account3. Basic banking Account4. Soneri Saving Account5. Soneri Sahara Account6. SoneriIkhtiar Account7. Running Finance Account8.
Foreign Currency Account
CURRENT ACCOUNT
Current account is Non interest bearing checking account and is opened and used for
business purpose and is opened by an amount of Rs. 10,000 that are deposited in the
account at the time when the account is opened. The account holder can done unlimited
transactions and can withdraw or deposit money without any limit in a day during the
banking hours.
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P&L SAVING ACCOUNT
Profit & loss saving sharing account is for salaried persons whose salaries are not so
much. So that they can save some part of their income for th eir future uses. In this accountthey receive profit at the rate of 5% annually according to the interest rates and terms and
conditions of the state bank of Pakistan and their company. Minimum account opening
requirement is Rs. 5000 only. Pls saving account holders accounts number starts from
0101.
BASIC BANKING ACCOUNT
Initial deposit for account opening is Rs. 1,000 with no minimum balance requirement.
Basic banking account is Non interest bearing checking account. Maximum 2 deposits &
2 withdrawals through cheque are allowed. . There is no restriction on ATM withdrawal.
But no online facility is provided. Basic banking account is also for small businesses and
salaried persons but there is a limit of transactions in this account in a day. Like curr ent
account Basic banking account holders account numbers also starts from 0205.
SONERI SAVING ACCOUNT
Soneri saving account holders accounts numbers starts from 0102. And in soneri saving
account the account holders receive profit at the rate of 5% on 100,000, 7% on the deposit
of (Rs. 100,000 - Rs.1000, 000), 8% on (Rs. 1000,000 5000, 000) and 9.5% on above
than Rs.5000, 000.
SONERI SAHARA ACCOUNT
Soneri Sahara account is for senior and old age citizens and retired persons. Soneri Sahara
accounts starts from 0108.
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SONERI IKHTIAR ACCOUNT
Soneriikhtiar account is for corporate businesses that open by the deposit amount of Rs.
50,000.
RUNNING FINANCE ACCOUNT
Running finance account is for those account holders who need some finan ce in order to
run or setup their business. Running finance account starts from the serial number of 081.
FOREIGN CURRENCY ACCOUNT
Foreign currency accounts holders account numbers starts from 0219, 0118 and 0119.
COMMON BENEFITS OF THESE ACCOUNTS
Following are the combined benefits of all the accounts that an accountholder can avail, those are
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 ourbranch across Pakistan
Remittance facilities such as Payment Orders, Demand Draft, Telegraphic Transfers Rupee Travelers Cheque through your bank branch
Import, Export and other business transactions Statement of Account on six monthly basis Usage of Electronic Banking through:o ATMs across Pakistan owned by Soneri Bank and other bankso Free 24-hours Telephone Banking and Call Centre facility
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o Free 24/7 Online Funds Transfer to any customer of Soneri Bank through ATMs ownedby Soneri Bank
o 24/7 Online Inter Bank Funds Transfer through ATMs owned by Soneri Bank to anyaccount of increasing list of enabled 1 LINK member banks
oUtility Bill Payments through ATM, Internet Banking and Call Centre
o Free 24/7 Internet Banking All purchases and cash withdrawals made with the Soneri Banking Cards is deducted
directly from your bank account
Free Cash Withdrawal on ATMs owned by Soneri Bank Facility of Running Finance for specific purpose against collaterals and nominal markup
rates being charged on quarterly basis etc.
ATM DEPARTMENT
ATM is the automatic teller machine that provides facility to withdraw cash any time
from the atm machine, and prevents customer from the risk of keeping money in
pocket. And is a convenient source of withdrawing money
ATM department is responsible for the issuance of new ATM card and after that issue
of atm in this regards. In order to have a new atm card the customer has to apply for
the card at the time of account opening by filling an atm form that contains his\her
name,fathers name, account number and other information and for what type of card the
customer is applying for because atm card is of two types
I. ClassicII. Gold
The form is authorized by the branch and operations manager and is being processed and
finally customer can receive it within the four working days of the bank after fulfilling the
receiving criteria.
There are some charges of atm card that are detected annually. These charges are separate
for both classic and gold card
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For classic card the customer has to pay a fee of Rs. 200 annually in advance excluding the
money transactional tax. And with classic card the customer has a limit of withdraw money until
Rs25000 in a day not more than it.
And with gold card the withdrawal limit is until Rs.50, 000 in a day and its annual charges are
Rs.500 that is other than the transactional taxes.
In case if the machine has captured the card, the customer has to contact to the ATM
officer and the officer will give card to the customer after the receiving criteria is done.
ACCOUNTS DEPARTMENT
The most important aspect in record keeping of a bank is its accounting system. The basic
purpose for maintaining an accounting system is to ensure consistency in record keeping
and accounts. The accounting system used in SNBL is given in a manual, which states all
the accounting practices to be adopted while recording any transactions.
I used to help department in Daily Activity checking, sorting and counting of vouchers and how
to calculate the deprecations of all fixed assets. I learnt the items of the Balance Sheet of Bank
and saw the format of different reports. All officials helped me to understand his work. They told
me about the reports that he has to prepare & the purpose of those reports. It was one of those
Departments in which Customer interaction is not involve rather paper interaction is important.
The basic requirement for any accounting system is that it should be in accordance with
the GAAP (Generally Accepted Accounting Principles). There are two choices available to
an organization for an accounting system.
An account department is actually a concluding department, which summarizes and
consolidates all the accounts of different department. And the Accounts Department ofSNBL performs the following activities.
1. Daily Reports Activity Verification2. Rectification of Errors
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3. Head office/Branch reconciliation4. Reconciliation with state Bank of Pakistan.5. Foreign Exchange- Old Accounts Contracts (forward contracts)6. Reporting
ACTIVITY VERIFICATION
The different department of the branch does their work through out the day the employees
post their vouchers in the computers and also prepare the vouchers manually. Activity
checking is the manual checking of all the debit and credit posted vouchers. The voucher
of the today will be checked tomorrow according to the activity generated by the computer
and manually prepared voucher. It makes the more accurate work of the employees. It is a
type of check on the employees which shows the efficiency and accuracy of the
employees. The voucher are sorted into the different heads according to their nature and
then different bunches are made which are then checked by the responsible officer. At the
end of the day a report is prepared containing the figures and name of bunches and
voucher in each bunch. The other report that is prepared after checking the activity that
contains all the discrepancies of the activity and the number of employee who did the
mistake.
RECTIFICATION OF ERRORS
If there is any error found out during activity verification, it is rectified and communicated
to the respective departments. These errors might be some mistakes in the face of the
instrument or the signature requirements
HEAD OFFICE RECONCILIATION
There are number of transactions which take place between. In order to be balance with
the head office the account department did reconciliation in order to be in balance with the
head office at the end of the day.
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STATE BANK OF PAKISTAN RECONCILIATION
The SBP is the central bank of Pakistan therefore each schedule bank will be controlled by the
SBP therefore a number of transactions occur with State Bank of Pakistan. The daily statement of
SBP is matched with the balance with SBP in order to be in balance with SBP.
FORWARD CONTRACT (OLD FOREIGN CURRENCY ACCOUNTS)
There are two types of account operate in foreign currency the accounts which were frozen by the
Government in 1998 after nuclear tests are called frozen (old accounts) and accounts which are
opened after that are called New FCA. The amount in the old account will be paid in form of
rupees. Whenever any amount in dollar comes state bank purchase it from the bank and enter into
a forward contact that mean that bank will repurchase these Dollar after certain period at decided
rate. The period is normally one quarter. The bank also pays an advance fee for this which ischarge to the whole quarter. At the end of the quarter the SNBL will purchase from SBP at the
decided Rate and transfer (Sell) to the Head Office at the current rate prevails in the market. The
difference between the selling price (to the head office) and purchase price (from the SBP) will
adjust as exchange difference account. This contract can also be roll over at the end of the period.
REPORTS
Report generation is one of the most important functions of the accounts department. It is
important for the proper management control .
FOREIGN TRADE
Trade department deals with imports and exports at national and international level I have
not worked in this department so much I just learn about the working of this department.
Furthermore SONERI BANK also deals with foreign exchange, foreign Currency Accounts,
Foreign Remittances, and Foreign Bills for Collection.
Foreign currency accounts & the foreign currency department deals with these types of accounts,
Current account, saving bank account, Term deposit. Foreign accounts are convertible on floating
rate available to the bank. Letter Of Credit facility is being provided by SONERI BANK in
foreign exchange.
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This provides these following services.
IMPORTS
L.C Opening L.C Amendment L.C Settlement Acceptance Booking Acceptance Payment Forward Booking Forward Take up Reporting to SBP on I Form
EXPORTS
Issuance of Export Forms Certification of E Form L.C Advising L.C Amendment Advising L.C Confirmation Processing Doc. Negotiation Payment of Doc. Negotiation Reporting to SBP on Form E
IMPORT L/C CYCLE
There are primarily five parties involved in the whole process of an L/C.
Importer Issuing Bank (importer's bank) Advising bank or Correspondent bank Exporter Beneficiary bank (exporter's bank)
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STEP 1:
A deal between the importer and the exporter is made.
STEP 2:
Exporter sends Performa invoice to the importer through fax or mail. The exporter
endorses it i.e. makes his approval on it. One copy is sent back to the exporter and one is
taken to the bank.
STEP 3:
The issuing bank or the importer's bank inspects the Performa invoice and other
documents like the application, form I, import registration etc. and opens the L/C .
STEP 4:
Now the issuing bank sends this L/C to its correspondent bank in the exporter's country.
STEP 5:
The correspondent bank advises the L/C to the exporter's bank.
STEP 6:
The exporter's bank informs the exporter about the L/C and then the exporter starts
producing the goods or ships the goods, whatever the case may be.
STEP 7:
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The exporter provides the documents of shipment e.g. the bill of lading, pre-shipment
report etc to his bank and gets the payment after deduction of some pre determined
charges.
STEP 8:
Now the exporter's bank will send those documents to the issuing bank to get the payment.
Another option is that the beneficiary bank might negotiate the documents with some other
bank.
STEP 9:
The issuing bank after receiving the documents informs the impor