Main Title

INTERNSHIP REPORT ON

SONERI BANK LIMITEDABBOTTABAD

(0079)Submitted by: M. ShahbazRoll # S-10-03Supervised by: Sardar Ejaz Ahmed Government College of Management Sciences AbbottabadSESSION: 2010-2014

INTERNSHIP REPORT ON

SONERI BANK LIMITED

ABBOTTABAD

(0079)

Submitted by: M. ShahbazRoll # S-10-03Supervised by: Sardar Ejaz AhmedThis internship report is submitted in partial fulfillment of the requirements for the degree of Bachelors of Business Administration awarded by the Hazara University Mansehra

Government College of Management Sciences Abbottabad

SESSION: 2010-2014Government College of Management Sciences

AbbottabadApproval Sheet

Approval Committee1. External Examiner

Mr.________________________

Signature_______________

2. Supervisor

Sardar Ejaz Ahmed

Signature_______________

Assistant Professor3. Head of Department

Mr.Mushtaq Ahmed_________ Signature_______________

PrincipalDEDICATION

I dedicated this report to my parents who have continuously given me moral support and encouraged me though my four years of Bachelor studies. They gave me mental strength to fight and deal with the hurdles of the daily routine I faced during my study. At this stage I can say that today what I am where I stand is just because of them. Secondly I would like to dedicate this report to my supervisor who guided me through out my internship and even in the making of report.Abstract All praises and thanks to Almighty ALLAH. The lord and creator of this universe by shoes power and glory all goods and things are accomplished. He is also the most merciful, who gave me the ability and opportunity to work on this report.

It is an academic requirement for the student of BBA (Hons) to undergo an internship program of sex weeks duration. This opportunity provides to the students to apply theoretical knowledge and gain practical experience about the organization. The purpose of internship report is to evaluate the performance of organization and give concrete recommendation for further improvements.

Another aspect of this internship is that it makes of a student imaginative and be dynamic and takes him away from bookish and impractical philosophy. So it makes the student a practical man and helps him to face difficulties of practical life and the solution of problems. Through internship a student can judge his qualities and expertise, whish he gained from books.

As a compulsory requirement of Professional Degree BBA (Hons), I opted to join Soneri Bank Limited, to fulfill my degree requirement. My reason for choosing SBL was to enhance my skills in Management Finance and Accounts, so that to provide myself the opportunity to cope with real life situation.

To better understand the report my recommendation would be to look into different parts mainly covering the overview of SBL, overall management of Finance and Accounts.

The bank staff was very much cooperative to me, they have provided me relevant material to write a report. I am very much thankful to them and to my Advisor Sardar Ejaz Ahmed for the supervision and guidance.

Finally, keeping the tradition alive as well as fulfilling social and ethical responsibility, my dedications will always go to my dear Parents & Family and Friends.

Table of Contents

Chapter # 1

Introduction01 Background of the Study01

Purpose of the Study01

Scope of the Work02

Methodology of Research02

Objectives of the Study02

Limitations of the Study03

Significance 03

Scheme of the Report04Chapter # 2

Historical Background 05 Banking (Definition) 06 Importance of Banking06 Major Functions of Commercial Banks06 Banking in Free Market Economy 09 Historical Background of Banking in Pakistan09 Role of Commercial Banks in Eco Development 12Chapter # 3

Soneri Bank Ltd 15 Introduction (SBL) 15 History of Soneri Bank Limited 16 Motivation of Soneri Bank Limited16 Awards and Achievements 17 Nature of the Organization 18 The Mission, Vision and Objectives 19 Organizational Structure of SBL 21 Organization Branch Structure Chart23 Organogram 24 Corporate Information 25Chapter # 4Products and Services 27 Deposits27 Advances 28 Products 29 Agriculture Banking 29

Chapter # 5

SBL Departments 30 General Banking Department 30 Credit Department 44 Foreign Exchange Department 51

Computer Department 55Chapter # 6

Financial Analysis56 Balance sheet & Income Statement57 Ratio Analysis60 Horizontal and Vertical Analysis70 Swot Analysis74Chapter # 7

Conclusions and Recommendations 81

References & Sources 84

ACKNOWLEDGEMENT

I have great sense of gratitude for the most Beneficent and Merciful Allah who has always helped me in all matters of life. I tried but He rewarded me more than the tried. Billions of Darood-o-Salam upon Muhammad (PBUH) Last Prophet of Allah who is the savior of humanity.

I am thankful to my parents and to their blessings and support and allowing me to intern where I wanted. They have always soothed me, elevated me and their words and dua has floated me in the deep seas of troubles. All of my successes are due to my family. Great tributes to my beloved parents who taught me to strive for Rizq-e-Hilal and always trust in Almighty Allah! My father is my all times mentor.

I would also like to thank all the staff of Soneri Bank Limited who gave me the confidence and guided me at every step of my internship period. It was great fun to write this report due to the fact that it was an explanation of what I experienced and learnt during my internship. It gave me a better idea of how things work practically and how important it is to deal with all aspects of FINANCE. This report gave me the opportunity to put into practice of what I had learnt during my internship.

I am thankful to all my teachers and friends whom cheerfulness and guidance is an asset for me.

M. ShahbazList of Abbreviations

SBLSoneri Bank Ltd.

IDBPIndustrial Development Bank of Pakistan

SBPState Bank of Pakistan

MNCsMulti-National Companies

ADBPAgricultural Development Bank of Pakistan

L/CLetter of Credit

L/GLetter of Guarantee

ATMAuto Teller Machine

APDAssets Product Division

IPDInvestment Product Division

ITInformation Technology

BTFBalance Transferred Facility

NITNational Investment Trust

FCForeign Currency

PLSProfit & Loss Sharing

HRMHuman Resource Management

SBUStrategic business unit

NDFCNational Development Finance Corporation

RTCsRupee Travelers Cheques

AIGPAmerican International Group Pakistan

MTMail Transfer

ETDElectronic Technology Department

MISManagement Information System

FDDForeign Demand Draft

FSFinancial Statement

ETDElectronic Technology Department

EXECUTIVE SUMMARY

This report highlights the operations and functions of bank. Banks acts as financial agents to their customer; in return they get reward for their services. Banks play important role in development of society. A strong economy must have a good banking system.

Soneri Bank is one of the leading banks in Pakistan. According to international standards of banking system it is one of the best banks in South Asian region as well as the bank, which is, come the top ten in the world. This report explains how different functions of SONERI BANK works and what are their services.

The report relies mainly upon secondary data with the use of primary data at instances when the former would be unclear or difficult to comprehend. The report is mostly objective in nature with hints of subjectivity in financial analysis. The first part of the report is about the evolution of banks, where as the second part is about the functions and services of SONERI BANK and in third part the financial analysis and recommendations are given.

During the critical analysis, it was observed that SONERI BANK is one of the leading commercial banks of Pakistan with a network of around 1213 branches all over Pakistan. SONERI BANK provides a wide variety of products and accounts that suit the lifestyle and needs of the masses .In fact commercial banking is regarded as a Conservative business because the rewards are modest and the penalties of bad banking are many. As a trustee of the public funds, SONERI BANK has a greater responsibility for safety and prudence. Many business can enjoy some slack in their affairs, commercial banks cannot afford this, since commercial banks must make a living by putting the money at their disposal to work, they are faced with the problem of making a living without jeopardizing the safety of their institution and SONERI BANK is doing all this very efficiently.

The SONERI BANK is known for its customer services as well as for its products, which are in demand.