Final Internship Report on Summit Bank

SUMMIT BANK LIMITED

URDU BAZAR BRANCH, LAHORE

Internship Report Submitted in Partial Fulfillment For The Degree of M.Com BY: Arslan Shoukat Session (2015-16)

INTERNSHIP REPORT ON

URDU BAZAR BRANCH, LAHORE

II

ACKNOWLEDGEMENT By the Grace of Almighty Allah, the most Merciful, and the most Beneficial, due to the bounteous blessing of Almighty Allah, I become able to contribute this report on completion of my internship period at Summit Bank Ltd. Urdu bazar branch, Lahore. This report is prepared in partial fulfillment of the degree of M.COM. Iam thankful to the staff of Summit Bank Ltd. Urdu bazar branch, Lahore: Mr. Sajid Rashid (Branch Manager) Mr. Tahir Mehmood (Operations Manager) Mr. Sharjeel Munir (Relationship Manger) Mr. Mohsen Shoukat(Customer Services Officer) Mr. Imran Javed (Teller) because without their cooperation I was unable to write this internship report. In last I would like to acknowledge my thanks to my parents, my teachers and friends, for their help and support.

EXECUTIVE SUMMARY “THE PURPOSE OF STUDY WAS TO KNOW ABOUT SUMMIT BANK LIMITED AND TO ANALYZE THE FINANCIAL STATEMENTS “ In this report the Summit Bank’s history, mission, vision and services as well as management is mentioned. After this the analysis of III

financial statements is conducted which shows where the Banks is standing. Banking sector of Pakistan has been transformed within a short period of 5 years from a sluggish and Government dominated sectors to a much more agile, competitive and profitable industry speed and sequencing of banking sector transformation and its role in promoting economic growth is now a leading story of a sector success. Within Pakistan SBP offers a story of what effective leadership of regulator and change management and corporate governance can achieve and offer. Outside Pakistan it is serving to offer rich lessons in what difference governance of regulator can make and how bank restructuring and privatization can change the landscape of the industry. Summit Bank Limited started operations in August 2006 and became a profitable entity within one year. AHBL had started off with a high capital base and is positioned to take advantage of the business synergies and complementariness afforded to it by its sponsoring group. The bank has a quality management team, a first class technology platform, and commitment to global practices. Its business strategy is based on the “block-building” principle wherein profitable niches are tapped progressively. I did my 6-weeks internship in Summit Bank Limited Shikarpur Road Branch Sukkur. During internship I was rolled over in departments. Summit Bank made heavy investments towards enhancing its capabilities in the area of automation and technology. It is well positioned to meet client needs, with improved competitive advantage During my six weeks internship in Summit Bank Shikarpur Road Branch Sukkur, I spend my time in following departments:     

Customer Services Department Cash Department Clearing Department Remittances Marketing Department

Working in these departments was a great learning exposure for me. When I conduct financial and trend analysis of Summit Bank, I found that its financial position is improving year by year. Comparative study with other banks shows that it is somewhat better then other banks. I concluded that Summit Bank is performing very well. The data which is accumulated in this report has been collected through primary and secondary sources IV

TABLE OF CONTENTS

INTRODUCTION....................................................................1 HISTORY 2 BUSINESS AND BRANCH NETWORK 3 FUTURE OUTLOOK 3

VISION..................................................................................4 MISSION................................................................................ 4 CREDIT RATING....................................................................4 BOARD OF DIRECTORS........................................................5 MANAGEMENT COMMITTEE.................................................6 ORG.STRUCTURE OF SHIKARPUR ROAD SUKKUR BRANCH.7 MANAGEMENT OF SHIKARPUR ROAD SUKKUR BRANCH.....8 PRODUCTS OFFERED BY SUMMIT BANK LTD......................9 ACCOUNTS 9 CURRENT ACCOUNT 9 PLS ACCOUNT 9 TERM DEPOSIT 10 MAHANA AMDAN ACCOUNT 10 DAILY PRODUCT ACCOUNT 12

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HAMARA FAMILY ACCOUNT 12 SUMMIT ADVANTAGE ACCOUNT 13 ELECTRONIC BANKING SERVICES 14 MOBILE BANKING 15 INTERNET BANKING 15 CONTACT CENTRE 16 U-PAYMENTS 17 MOBILE BALANCE RECHARGE 17 BILL PAYMENTS 17 INTER BANK FUNDS TRANSFER 18 E-STATEMENT 19 CONSUMER BANKING 20 HOME FINANCE 20 PERSONAL FINANCE WEDDING PLANNER GRADUATE PLAN GOLDEN AGE PLAN INSURANCE PLANS ATM WITHDRAWAL INSURANCE PERSONAL ACCIDENT INSURANCE CORPORATE AND INVESTMENT BANKING AREAS OF CORPORATE BANKING AREAS OF INVESTMENT BANKING COMMERCIAL AND SME BANKING VISA DEBIT CARD CLASSIC CARD GOLD CARD WESTERN UNION AMANAT CASH XPRESS MONEY

22 23 24 25 26 26 26 27 27 27 28 29 29 30 31 32 32

DEPARTMENTS AT SHIKARPUR ROAD BRANCH SUKKUR...33 VI

CUSTOMER SERVICES DEPARTMENT ACCOUNT OPENING PROCEDURE ACCOUNT CLOSING PROCEDURE CAPTURED ATM CARDS CASH DEPARTMENT CLEARING DEPARTMENT OUTWARD CLEARING INWARD CLEARING COLLECTION (OBC)

33 33 34 35 35 35 36 36 37

SWOT ANALYSIS..................................................................37 STRENGHTS WEAKNESSES OPPORTUNITIES THREATS

37 37 37 37

CONCLUSIONS....................................................................38 SUGGESTIONS....................................................................39 REFERENCES.....................................................................40

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INTRODUCTION Banking sector owes a pivotal importance in the economy of any country through its vibrant functions. A bank is a financial institution that offers the widest range of financial services. These financial institutions play a vital role throughout the world’s economic system. The banking structure of Pakistan consists of State Bank of Pakistan, Commercial Banks, Exchange Banks, Cooperative Banks, Saving Banks and Specialized Credit Institution. “Banking means the accepting of money from public, in shape of deposits for the purpose of lending or investment, repayable on demand or otherwise, and withdrawal by cheques, drafts, and pay order” The Pakistani banking sector mounted an overall recovery drive, increasing its asset base by approximately 8% during the year . However, credit and business conditions are likely to remain fragile, driven by the government's weak fiscal position and the subdued investment climate. Furthermore, downside risks may further weigh on the banks' operating environment over the period. However, despite the material risks, no further major deterioration in asset quality is expected over the coming period. NPLs are also expected to have peaked at around 16% of total lending by year-end 2011, from 15.3% at end-June 2011. Short-term economic growth, lower interest rates and de-risking of the banks' loan book will drive stabilization in asset-quality metrics. Recognizing the system's structural challenges the Bank as a policy opted for and benefited from sound funding profiles and low-cost current and savings account deposits, which increased to 67% of total deposits or 56% of total liabilities at end-June 2011. The Bank’s reliance on market and foreign funding also remained minimal. The year 2011 remained fraught with challenges for Pakistan, the core issues which affected Pakistan ’ s economy and were also identified in the Economic Survey issued by the Government included persistent and high inflation, low growth, lesser in revenue collection compared to budget figure leading to a high fiscal deficit which continues to add to the overall debt along with a fall in the investments. All these factors, combined with the global

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economic slowdown and rise in global fuel prices have further complicated the issues and economic scenario. The economic development of Pakistan remained under pressure due to the deterioration of major macroeconomic factors. Industrial production and creation of new capacity was negatively impacted by the almost continuous energy crisis throughout the year and the insistent circular debt issue remained an area of concern. The decline in foreign direct investments because of unsafe security situation, along with high inflation and a mounting fiscal deficit remain threats to the macroeconomic stability of the country. T o provide relief to the people and businesses, the SBP reduced the discount rate to around 12% per annum in line with reduction of inflation rate during the year . During the period agriculture sector posted real growth of 1.2% and after suffering consecutive quarterly deficits, industrial production surged to grow at a robust pace in the last quarter of the year. Remittance inflows to Pakistan also rose by an estimated 25 % in 2011 over and above 2010 inflows and touched almost US $ 12 billion constituting almost 4.8% of Pakistan’s GDP. HISTORY Summit Bank Ltd is one of the fastest growing commercial banks of Pakistan, which, in a very short span of time, has expanded its network across the country and built an infrastructure based on state of the art “Risk Management Framework” as well as “IT platform.” Also targeting to be a universal bank in terms of providing products and services in all key segments of banking i.e. Corporate and Investment Banking, Trade Finance, Commercial Mid Market / SMEs, and Consumer Banking, it commenced its operations in August 2006. The Pakistan operations of Rupali Bank Limited were acquired by Arif Habib Securities Limited under the Scheme of Amalgamation approved by the State Bank of Pakistan. The name of Rupali Bank Ltd was subsequently changed to Arif Habib Rupali Bank Ltd and then finally to Arif Habib Bank Ltd in October 2007. On 31 st March 2010, Suroor Investments Ltd, a company incorporated in Mauritius, acquired 59.41% stake in Arif Habib Bank Ltd from Arif Habib Securities Ltd, and on 18 th August 2010, Arif Habib Bank Ltd was rebranded as Summit Bank Ltd. Suroor Investments Ltd. also entered into share purchase agreements (SPAs) with majority shareholders of MyBank Ltd and Atlas Bank Ltd, who after completion of the transactions have merged in Summit Bank Ltd expanding the Bank’s geographical outreach with a network of 166 Real – Time Online branches across the country. In line with the management’s vision of making this bank a front runner amongst its peer banks, this merger has brought synergies and access to a wider range of markets and customers.

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By acquiring one of the best IT platforms of the world, offering web and SMS based banking to the customers besides providing superior MIS to the Management; the Bank is committed to be recognized as a preferred supplier of financial services to the markets it serves. To achieve these goals, the Bank will strengthen itself in the financial service industry, leverage optimal mix of technology to attain operating cost efficiencies, achieve product and service differentiation, while at the same time growing its footprint through further expansion of its branch network across the country. BUSINESS AND BRANCH NETWORK After the completion of the merger processes, the Summit Bank Limited is now operating with the network of 165 branches all over Pakistan offering a wide range of products and services to its customers and the community at large. Consequent to the merger of the three banks, multiple branches in the same vicinity have been relocated to the strategic locations. This not only widened the Banks presence in more areas but also reduced the annual rental cost by 53 million approximately. Summit Bank Limited launched new products and services, during the year 2011. The e-banking services were introduced that satisfied the needs of different customer segments. The Bank also successfully entered the VISA International network by August 2011. Besides broadening the Bank’s sources of foreign exchange and income, our entry into the VISA network means that owners of VISA-branded cards issued anywhere in the world can now, without restriction, enjoy the convenience of having access to local currency funds at all A TMs of the Bank. The internet banking facility of the Bank continues to provide immense convenience to both personal and business clients who need to regularly access and monitor their transactions. The Internet Banking service now provides customers the ease of being able to make transfers to other accountholders in the ease and comfort of their own homes or offices FUTURE OUTLOOK The bank has ambitious but realistic plans for the future; it intends to focus on widening and diversifying its customer base, introduce new and innovative products/services including tailored services to meet specific needs of the individual clients. The bank will continue to provide and improve its technological base and introduce the state-of-the-art banking products and solutions. It will also further improve its existing e-banking services to facilitate its customers. After successfully handling the merger related issues the management is geared to take advantage of its new broader branch network and create new synergies through consolidation process. The bank is now well placed and has the requisite capacities to move forward towards realizing its vision and achieving long term strategic growth.

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The Bank is committed to observance and adoption of internationally accepted best practices of Corporate Governance and intends to further improve its current practices of Corporate Governance.

“To be the preferred provider of financial products & services to the markets”

     

To be a financial institution based on Trust, Integrity, and Good Governance. To deliver financial solutions to our customers. To provide equal opportunities & professional working environment to our employees. To provide fair return to our shareholders on their investment. To serve the community at large. To discharge corporate social responsibility.

CREDIT RATING

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Rating Type: JCR – VIS Rating Medium to Long Subordinated Short Term Agency Term Debt Instrument JCR-VIS AA-2 A- (SO)

Outlook Rating Watch -Developing

BOARD OF DIRECTORS

Mr. Nasser Abdullah Hussain Lootah Chairman Mr. Husain Lawai President and CEO Mr. Nasim Beg Director Mr. Asadullah Khawaja Director Mr. Farid Uddin Director Dr. Ahmed Khalil Mohammad Samea Al Mutawa Director Mr. Shehryar Faruque Director

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MANAGEMENT COMMITTEE Husain Lawai President and CEO Mohammad Zahir Esmail Chief Operating Officer Syed Mohammad Anwar Lutfullah Group Head Operations, Information Technology, Consumer, Branchless Banking & Corporate Communications Ahsan Raza Durrani Group Head Corporate and Investment Banking, Financial Institution and Capital Market Gulrays Khan Group Head Compliance & Co-ordination and Control Syed Asif Ali Group Head Enterprise Risk Management Mr. Akhtar Ali Khan Group Head SAM & Legal Mr. Gulrez Yazdani Group Head Wealth Management Division Muhammad Amin Bhoori Chief Financial Officer & Company Secretary Faisal Shaikha Head of Treasury 6

Aziz Morris Head of Internal Audit Hanif Yousuf Head of Business Promotion and Development Mohammad Mursleen Rao Head of Corporate-North

ORGANIZATIONAL STRUCTURE OF SUMMIT BANK LTD URDU BAZAR BRANCH, LAHORE

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MANAGEMENT OF SUMMIT BANK LTD URDU BAZAR BRANCH, LAHORE

BRANCH MANAGER Mr. Sajid Rashid OPERATIONS MANAGER Mr. Asif Zia Soomro RELATIONSHIP MANAGER Mr. Faisal Khan CUSTOMER SERVICES OFFICER Miss. Nadia Jatoi HEAD TELLER Mr. Naseem Ahmed Jamali TELLER Mr. Rafiq Ahmed Mithani

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PROUDUCTS\SERVICES OFFERED BY SUMMIT BANK LIMITED ACCOUNTS

Summit Bank Current Account is a convenient and secure way of holding your money in local and foreign currencies. The key features of this account are as follows:  Non-interest bearing  Starter cheque book issued when the account is opened  Unlimited free-of-cost transaction facility  No deduction of Zakat  Choice of periodic statements (monthly, quarterly, half-yearly and annual) by post  Access to account statement anytime through Internet Banking facility  Account transaction information through SMS  Free issuance of VISA debit card  Cash withdrawal through large ATM network

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Summit Bank’s Savings Account is the most convenient way to manage your savings in local and foreign currencies. Our Savings Account has been designed to provide you with easy access to your money, as well as a higher rate of profit. Key features of these accounts are as follows:       

Starter cheque book is issued when the account is opened No penalty on minimum balance not being maintained Choice of periodic statements (on monthly, quarterly, half-yearly and annual basis) by post. Access to your account statement anytime through our Internet Banking and eStatement facilities Account transaction information through SMS Free issuance of a VISA debit card Easy cash withdrawal through a vast network of ATMs

Term Deposits are offered by Summit Bank to the following types of customers:  Individuals (single or joint)  Minors (to be operated by the guardian)  Charitable institutions  Provident fund & other funds of benevolent nature  Local bodies  Autonomous corporations  Limited companies  Firms, associations, educational institutions, financial and other institutions who intend to retain their deposits for a fixed period in order to earn a higher rate of profit.

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Deposit Limits Rs. 50,000 up-to Rs.10 million Rate of Profit Term Deposits 3 Months 6 Months 1 Year 2 Year 3 Year

Expected Rate of Profit 9.50% 10.00% 11.00% 11.25% 11.50%

Notes:      

These are not rack rates. All Terms & Conditions must be according to the scheme. These rates are not applicable for any amount which is less than Rs. 500,000. In case of any deposit of more than Rs. 5 million, the Treasury front office may be contacted for improvement of rates. In case of premature encashment, the depositors will be paid at the rack rate of last completed tenor on the broken period. These rates cannot be offered to Financial Institutions, e.g. Banks, DFIs, Investment Banks, Leasing Companies and Mutual Funds.

Eligibility: All individuals and institutions other than Financial Institutions are eligible for this account. Period of Deposit 6 months, 1 year, 2 years & 3 Years Special Benefits 

Free VISA debit card

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    

Monthly profit will be credited in the depositor’s account and can be withdrawn through cheque or ATM, free of charge Deposit will be rolled over on maturity for the same period at the rates prevailing on the date of maturity, unless otherwise requested by the customer. Free GSM Services [The customer will have an option to be informed of each transaction made in his/her account via SMS] Free Internet Banking Free issuance of pay orders and demand drafts

Conditions  

Profit is subject to Zakat, withholding tax and other taxes are imposed from time to time, unless exempted. Regular declared TDR profit rates [for the last completed period of deposit] will be paid on premature encashment

Take advantage of our Daily Product Account, which is a unique account where your money begins earning interest as soon as you make a deposit. Interest is calculated on your daily closing balance and credited to your account monthly, which means you make money from the day of initial deposit to the day that you withdraw your funds. It’s a simple way to start growing your savings right away. The minimum amount required to open this account is Rs. 25,000. It is an account that raises your own money (deposit) on daily basis.

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Fostering the bond that exists with its customers, and to better serve their financial needs, Summit Bank has come up with ‘Summit Family Savings Account’ – a unique savings account offering superior returns and a host of free services.

As a trendsetter, Summit Bank brings a solution to assure parents of their commitment to their children. With more values, more expertise and more solutions, Summit Bank innovates a savings account that serves the entire family. Get your entire family to bank with Summit Bank, and enjoy vast privileges and unique benefits that go hand in hand with Summit Innovations. We have exciting surprises for the first year customers. Here’s how it Works?  Grouped accounts for the family  Initial Investment Requirement-Rs.5,000/ Minimum Balance Requirement-Rs.5,000/ Attractive return of 9%  Additional 2% as bonus feature*  Up to Five free Visa debit cards  Minors can make purchases and withdraw cash at ATMs via the Visa Debit Card Here’s what you get?  SMS alerts  Mobile Balance Recharge  Visa Debit Cards  Internet Banking  ATM Cash Withdrawal Insurance  Personal Accidental Insurance  Utility Bill Payment through SMS/ATMs/Internet and/or Contact Centre ATM  Intra-Bank Fund Transfer  Lockers Eligibility The customer ID of the primary account holder will be the family ID. The Primary account holder CANNOT be a minor. Minimum 2 and maximum 5 members can be grouped under a single Family Savings Account

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Offering beyond expectations, Summit Advantage meets all your requirements of satisfactory banking, convenient financing needs and more. Summit Advantage Account is a unique combination of exceptional returns on your investment coupled with a facility to avail up to 70% financing; and that’s not all, it comes with an added advantage of no additional mark up! This unique offer is for those who want to conserve their savings but still want to avail a convenient financing facility to manage periodic cash flow needs. Offering superior returns on your valuable savings and charging no extra mark up on your loan financing – with Summit Advantage, you cannot aspire for more. Select Summit Advantage to experience an ultimate in banking innovation.

Key Features:      

Maximum Loan up to 70% of the deposit with no additional markup (11.0% p.a.) Exceptional returns up to 11.0% p.a. Monthly profit payout Term: 1 year Minimum investment of Rs 100,000/- with a maximum limit of up to Rs 50,000,000 Access to a range of value added facilities

Free Facilities:   

Visa Debit Card Internet Banking SMS Alerts

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Summit Bank is one of the leading banks in Pakistan in terms of electronic banking. We offer our customers a diverse range of electronic services and convenient banking options through various channels, such as ATMs, mobile phones and Internet. Our Mobile Banking allows customers to avail a variety of banking services of pure SMS-based technology, including mobile balance recharge and utility bill payments, as well as account information. Internet Banking is another channel on which we offer extensive banking services. Customers can view account information, pay bills, transfer funds, and conduct many other transactions through their account(s). Hence providing a fast, secure and convenient way to banking.

In keeping up with rapidly changing technology, Summit Bank offers you banking through your mobile. You can easily keep track of all your account transactions through your mobile phone, and retrieve account information whenever you want, just by typing and sending a simple SMS. Transaction Alerts Now wherever you go, your bank goes with you. Summit Bank gives you the following free transaction alerts on your mobile:  

Day End Balance All Transactions (Debit & Credit)

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You can also check your transactions and account balance. Customers who are already subscribed for SMS alerts are automatically eligible for this service.

Summit Bank offers a secure, fast and convenient Internet Banking channel with a range of services. It will change the way you bank today. Internet Banking ensures that you have convenient access to your account and banking services, no matter where you are. Services offered through Internet Banking:              

Bill Payments Credit Card Bill Payments Mobile Balance Recharge Facility Funds Transfer within Summit Bank Inter Bank Fund Transfer View and Download Account Statement View ATM/VISA Debit Card Transaction Details Activate/Deactivate ATM/VISA Debit Cards Change ATM/VISA Debit Card PIN Manage Spend/Withdrawal Limits for VISA Debit Cards View Status & Stop Payment of Cheques View Consumer Loan Details Register and Track Complaints View Internet Transaction Activity Log

Summit Bank’s 24/7 Contact Center is a state-of-the-art telephone information hub, based on cutting edge communications technology. For any queries, concerns or

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complaints, you can call our Contact Center toll free, at 0800-24365 – 24 hours a day, 365 days a year. An interactive voice response (IVR) system allows you to bank directly and independently, without the need of speaking to our Phone Banking Officers. You can avail the following services through the Contact Center:         

Balance Inquiry VISA Debit Card Activation VISA Debit Card Blocking & PIN Change Utility Bill Payments Cheque Book & Pay Order Requests Complaint Registration Statement Requests Mobile Balance Recharge Product & Service Information

With a Ufone connection and a Summit Bank account, you can avail convenience like no other. You can easily utilize the following services from your mobile:      

Balance Inquiry Mini Statement Funds Transfer Utility Bill Payments Prepaid Ufone Balance Recharge Postpaid Ufone Bill Payment

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Anywhere, anytime, every network! Summit Bank’s Mobile Balance Recharge service, the first of its kind, is the easiest and quickest way of recharging your own and your friends’ and family’s mobile airtime.

Save your time by availing Summit Bank’s Utility Bill Payments service. You can now pay your bills through Internet Banking or sending an SMS to 24365. Open an account in Summit Bank now to get this unique and efficient Bill Payment service.

With our IBFT facility, you can easily transfer funds to accounts in other banks using our ATM or Internet Banking. Summit Bank IBFT enables you to send and receive funds on a real-time basis to and from any account holder of 1-Link IBFT participating member banks. Key Benefits

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   

Convenience Instant transfer Round the clock facility Eliminates use of cash & cheques

Transfer Funds through ATM          

Insert your ATM/VISA Debit Card Enter your PIN Select “Funds Transfer” from the Main Menu Select “1-Link member bank” from the Funds Transfer Menu In the “From Account” option, select your account type for transfer of funds Select bank to which funds will be transferred Enter the Beneficiary Account Number Enter the amount to be transferred Verify the Beneficiary Name, Bank and Branch Confirm the transaction

Transfer Funds through Internet Banking        

Log in at www.summitbank.com.pk Click “Funds Transfer” Click “Other Bank Account(s)” Select the account you want to transfer funds from, and enter the amount Select the bank you want to transfer to Choose your transfer option (Beneficiary List Account or Other Account) For Other Account, enter the Account Number and click Fetch Title. Verify account details and click Submit to complete transfer For Beneficiary List Account, select a beneficiary from the list and click Submit to complete transfer

e-Statement is a convenient facility, through which you can choose to receive your account statements over email, so you can access your statement whenever you choose, wherever you go. The paperless service allows you to save account records without any paperwork.

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You can choose from a list of customized statement periods. Statement Periods:       

Daily Weekly Fortnightly Monthly Quarterly Half-yearly* Yearly*

Understanding trends in consumer product markets, and the financial needs of consumers, SMBL is now designing Consumer Banking services through a dedicated division. SMBL aims to aggressively grow its existing product portfolio by introducing products in phases. We provide services for deposits, consumer loans, credit cards, insurance and asset management through a customer-focused and competitive approach while closely following technological developments. With a clearly defined market segment and a solid strategic intent supported by a modern and reliable infrastructure, Summit Bank is ready to reach new heights in Consumer Banking services.

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Buying your first home is a major milestone in your life and one of the biggest financial decisions you will ever make. Helpful information combined with the right advice can make a world of difference and assist you in making the ultimate decision. Get your own shelter and deal comfortable with your house hold chores. Summit Bank has a comprehensive range of home loans schemes with solutions for everyone. The value and flexibility that Summit Bank Home Finance offers, complemented by exceptionally personalized service, is what makes it the right choice for you. At Summit Bank, we believe in simplicity & convenience. Summit Bank Home Finance can be sought to fulfill any of the following needs:     

Buy-a-Home Build-a-Home Home Renovation Purchase of Land & Construction Home Debt Consolidation (BTF)

The salient features of this plan are appended here-under: Minimum: Rs.300,000/Loan Amount Minimum Collateral Value

Maximum: Rs.50,000,000/Rs.1,000,000/Minimum: 03 years Maximum: 20 years

Loan Tenor

*Proposed financing period of loan must mature 5 years prior to the expiry of

Mark-up Rate*

Lease Salaried – (K+4)

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Self Employed Professional – (K+4.5) Self Employed Businessman – (K+5) Equitable or Registered Mortgage Type of Mortgage (as per lawyer’s advise) Bank should have a first charge on the mortgaged property through Equitable Mortgage Charge Plus Token / 100% Registered Mortgage

Property & Life Insurance

(as per lawyer’s advise). Property & Life Insurance will be mandatory from Bank’s authorized insurance company

*K=06 Months Average KIBOR

Worried about how to meet all the expenses coming up at once? If you’re short of funds for your daughter’s wedding, a major surgical operation, outstanding credit card payments, house refurnishing, a new laptop, children’s education abroad or anything else, you can now breathe a sigh of relief. Personal Finance is the right solution to bring all your needs and luxuries within reach. Summit Bank takes pride in announcing the launch of another unique and valuable addition to the privileges and benefits it offers – an innovative, convenient and secure way to meet your personal and family financial needs through Personal Finance. The salient features of this plan are appended here-under:

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Loan Tenor

Minimum: Rs.25,000/-Maximum: Rs.1,000,000/Minimum: 1 yearMaximum: 5 years

Type of Loan

Term Loan

Type of Facility

Un-Secured

Type of Markup

Fixed During Loan Term

Loan Amount

Premature Payment Facility Available Loan Enhancement Facility Available (History / Income Based) Loan Top-up Facility

Available

A high value investment and protection plan that is designed to help customers build the required funds to meet their child’s marriage expenses on payment of regular premium. The salient features of this plan are appended here-under: Eligible 18 – 55 Years Enrollment Age Policy Term

Minimum 10 Years – Upto The Age of 70 Years

PKR 6,000/- For Monthly Mode OR Minimum Basic PKR 25,000/- For Annual, Semi-Annual and Quarterly Premium Modes Maximum Basic No Limit Premium Account Value Facility Available – If customer has surplus funds, he or she Acceleration may top-up the regular premiums by depositing a lump sum Premium (AVAP) contribution to the Plan Premium Payment Mode

Direct Debit From Summit Bank Account

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Partial Withdrawal

Allowed After 5 Years

Policy Surrender

Allowed After 2 Years. In Case of Earlier Surrender, Applicable Charges are To Be paid

Choice of Investment Strategies

Make Your Own Mix (Switching Facility Available)

Non-Medical Limit

PKR 2.5 Million Upto The Age of 45 Years

Family Protection Rider (FPR) – In case of permanent and total disability of the insured, all due future premiums are waived from the date of diagnosis of disability Loyalty Bonus Payable At The End of Every 5 Years Basic Face Amount OR Account Value (Which Ever Is Death Benefit Higher) Maturity Benefit Accumulated Account Value Payable in Lump Sum Built-in Rider

A high value investment and protection plan that is designed to help customers build the required funds to meet their child’s college fees on payment of regular premium. The salient features of this plan are appended here-under: Eligible 18 – 55 Years Enrollment Age Policy Term

Minimum 10 Years – Upto The Age of 70 Years

Minimum Basic PKR 6,000/- For Monthly Mode ORPKR 25,000/- For Premium Annual, Semi-Annual and Quarterly Modes Maximum Basic No Limit Premium

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Account Value Facility Available – If customer has surplus funds, he or she Acceleration may top-up the regular premiums by depositing a lump sum Premium (AVAP) contribution to the Plan Premium Direct Debit From Summit Bank Account Payment Mode Partial Allowed After 5 Years Withdrawal Allowed After 2 Years. In Case of Earlier Surrender, Policy Surrender Applicable Charges To Be paid Choice of Investment Make Your Own Mix (Switching Facility Available) Strategies Non-Medical PKR 2.5 Million Upto The Age of 45 Years Limit Family Protection Rider (FPR) – In case of permanent and Built-in Rider total disability of the insured, all due future premiums are waived from the date of diagnosis of disability Loyalty Bonus Payable At The End of Every 5 Years Basic Face Amount OR Account Value (Which Ever Is Death Benefit Higher) Accumulated Account Value Payable in Four Equal Annual Maturity Benefit Installments

A high value investment and protection plan that is designed to help customers continue with their existing lifestyle even after they retire on payment of regular premium. The salient features of this plan are: Eligible 18 – 65 Years Enrollment Age Policy Term Minimum 10 Years – Upto The Age of 85 Years PKR 6,000/- For Monthly Mode OR Minimum Basic PKR 25,000/- For Annual, Semi-Annual and Premium Quarterly Modes Maximum Basic No Limit Premium

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Account Value Facility Available – If customer has surplus funds, he or she Acceleration may top-up the regular premiums by depositing a lump sum Premium (AVAP)contribution to the Plan Premium Direct Debit From Summit Bank Account Payment Mode Partial Allowed After 5 Years Withdrawal Allowed After 2 Years. In Case of Earlier Surrender, Policy Surrender Applicable Charges To Be paid Choice of Investment Make Your Own Mix (Switching Facility Available) Strategies Non-Medical PKR 2.5 Million Upto The Age of 45 Years Limit Accident Care Benefit (ACB) – In case of death or permanent and total disability of the insured, an additional Built-in Rider benefit equal to 10 times the basic annual premium is payable. Loyalty Bonus Payable At The End of Every 5 Years Basic Face Amount OR Account Value (Which Ever Is Death Benefit Higher) Accumulated Account Value is used to buy monthly pension Maturity Benefit that is payable for lifetime of the customer and guaranteed for a minimum of 20 years

INSURANCE PLANS

Unexpected events that strike without warning can disrupt the smooth rhythm of life. Insurance plans are policies that talk to you individually and give you the most suitable options to fit your requirements. To ensure your financial security Summit Bank now offers two Protection Plans. ATM Withdrawal Insurance Summit bank offers insurance in case of unexpected mishap, with our ATM Withdrawal Insurance; you are protected at all 1-Link ATMs – 24 hours a day, 365 days a year. 26

Personal Accident Insurance Life is full of surprises and you never know what way it turns next. With our Personal Accident Insurance, you’re protected in case of an accident, 24 hours a day, 365 days a year, at a very low premium.

Our mission is to serve all corporate requirements and ensure full satisfaction through product innovation, personalized banking, and top notch service. Our Corporate & Investment Banking Group focuses on attracting and serving Blue Chip Customers. Our forte is providing exemplary customer service using the “Single Window” concept and “Product Superiority”. Our Corporate Banking Group comprises a seasoned team of Relationship Managers (RMs) to meet the demanding service standards of Corporatations & Businesses enabling us to provide timely and effective financial solutions for our customers to meet the growing challenges of a global economy. Our RMs have the expertise you need to create tailored financial solutions catering to the specific requirements of your business. Whether its establishing a new venture or expanding an existing business, our team understands the banking needs of businesses, and works closely with them to help them realize their goals. Some of our Specialist areas in Corporate Banking include:     

Running Finance, Short Term & Long Term Finance, Financing against Imported Merchandise (FIM), Cash finance and Export Re-finance. Pre and Post Shipment Export Financing (PKR and USD based) Import Financing (PKR and USD Based). Trade Services including Letter of Credit (Sight & usance), Letter of Guarantee and Standby Letter of Credit, etc. All other services with respect to the requirement of business of borrower are provided here.

Our specialist area in Investment Banking include:

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   

Project & Structured Finance Syndications & Debt Capital Market Equity & Advisory Bonds o Structured Finance o Leveraged Buyouts o Privatization o Equity Underwriting & Placement o Mergers o Corporate Restructuring o Syndicated Loans o Project Finance o Private Equity o Equity De-Listing o Acquisitions

Our Commercial & SME Division targets Medium Sized Companies with a turnover of at least PKR 25 – 50 million. We have a centralized set up and have the ability and the resources to meet the needs of your business with our pro-active, responsive and experienced Relationship Managers who are committed to understanding your business. If you have a small or medium-sized business, SMBL can assist you with the right mix of banking services that will help you manage and grow your business. Our experts will facilitate you in the varied financial situations that you come across. We offer financing for the following:       

Working Capital Financing Procurement of Inventory Receivables financing Procurement of Machinery Expansion of production facilities BMR Import / Exports

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

Guarantees

Summit Visa Debit Card welcomes you to a world of privilege and pleasure. Be it shopping, dining or travelling, Summit Visa Debit Card lets you do it all, with ease and panache. With the accessibility one aspires for and the convenience one desires, Summit Visa Debit Card redefines purchasing pleasure.

Combining domestic convenience with international luxury, Summit Visa Debit Card is a perfect alternative to cash. As the most versatile payment tool in the market, it incorporates the benefits of flexibility, security and incomparable convenience, and is your gateway to unparalleled rewards. Summit Visa Debit Card also opens up avenues to a world of Electronic Banking services. Now you can pay your bills, transfer funds, monitor your account, purchase prepaid airtime and do a lot more, all with your Summit Visa Debit Card. Offering you the highest value for the lowest prices, this Card empowers you with world class purchasing convenience.

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It is as simple as Shop Swipe Sign Benefits                 

Worldwide acceptability Flexibility of usage Complete personal financial management Security, Reliability, Convenience Insurance Vast privileges /unique benefits Zero loss liability Flexible daily spend limits 24 Hr emergency helpline Competitive rates Annual Fee Waiver for the first year Countless deals / discounts/ packages both locally and internationally Access to electronic banking services E –Alerts Funds Transfer Via ATM Mobile recharge Via ATM Utility Bill Payment via ATM

The luxury you deserve Summit Visa Debit Gold Card grants you access to a vast bundle of Gold privileges and benefits. As our preferred customer, you get a superior level of service along with an ease to purchase all that you like, effortlessly and conveniently. Exciting domestic deals and enticing international packages guarantee you the highest level of purchasing pleasure. Summit Bank now introduces the Cash Back Card! With SMBL Visa Debit Gold Card, you are rewarded every time you shop. When you make a purchase, you get a 5 % cash back* if your shopping ranges between Rs.3, 000 to Rs.10, 000 every month. This Card not only offers you ultimate in purchasing convenience but also rewards you for it. No matter what you buy and with no inhibiting terms & conditions, SMBL Visa Debit Card 30

is not just an ordinary payment tool but a truly rewarding experience. To avail your share of this experience, please dial 0800-24365 or visit Summit Bank Branch closest to you. Cash Back Features      

5% CASH BACK* applicable wherever you shop Applicable on spend amount as low as Rs.3,000/Maximum spend limit Rs.10,000/The cash back amount will be credited to your account at the start of the following month (if criteria met) Applicable only on Gold Card Holders maintaining minimum average balance of Rs.300,000 Overdraft Facility also available

Cash Back Benefits       

No astronomical spend criteria No hidden conditions Flat 5% cash back* across any and all retail outlets No barriers to minimum or maximum transaction counts Applicable on spend limits as low as Rs.3,000 Get Rs.500 on spending Rs.10,000 anywhere in a whole month Such a Deal has never been offered previously on Debit Cards

Added Benefits           

Great local & international Privileges Visa Global Customer Assistance Services (GCAS) Lost/Stolen Card Reporting Cardholder Inquiry Service More discounts and deals to choose from Lowest charges than currently being offered elsewhere Access to a host of electronic banking services Annual Fee waiver for the first year Funds Transfer Via ATM Mobile recharge Via ATM Utility Bill Payment via ATM

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We offer quick and convenient delivery of cash over the Counter services in association with Western Union. No matter where you are around the globe, if there is Western Union around, you can transfer funds to your loved ones, in no time. This payment can easily be picked up in a matter of moments at dedicated Western Union counters in our branches. No account at Summit Bank is required for this service.

Summit Bank is pleased to introduce Amanat Remittance services, namely AMANAT CASH Summit Bank is affiliated with PRI (Pakistan Remittance Initiative) which is a joint venture of ministry of finance and State Bank of Pakistan. It has affiliation in all 165 branches and over 850 partner payout locations nationwide. All the branches are online. Summit Bank Ltd has the ability to transfer funds into beneficiary’s account instantly through IBFT and RTGS enabled Banks (which covers over 90% of account holders in Pakistan). Funds will be directly credited to beneficiary accounts in Fast, Free & Secure manner. Amanat Cash Services include the following: 1. Cash to Account (Instant Bank Transfer) 2. Cash-to-Cash Money Transfer (Instant Cash over Counter) 3. 9 am to 8 pm remittances disbursement services at selected branches in all major cities to facilitate the beneficiary to collect the payments over the counter, which no other bank offers. 4. Cash-to- AMANAT Card (Remittance Card Service for the Beneficiary) 5. Cash-to-Cash Home-delivery Service

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Xpress Money is simply the fastest way you can receive money from anywhere. We take pride in ensuring that it reaches the beneficiary safely and in a matter of minutes.

DEPARTMENTS AT URDU BAZAR BRANCH, LAHORE. Following departments operates in Summit Bank Limited; Shikarpur Road Sukkur Branch: Customer Services Department Cash Department Clearing Department Local Remittance Department Marketing Department

CUSTOMER SERVICES DEPARTMENT The department that is responsible for opening and closing of an account assumes immense significance and holds a central place in the basic banking operations. In this department I worked under CSO, Miss Nadia Jatoi; who taught me about following areas of her department: PROCEDURE OF OPENING AN ACCOUNT The Account Opening Form: When a client comes to the bank, and makes a request for opening of an A/C. The officer first gave him a prescribed application form. Completion of the Form: The name, occupation, and complete address of the person opening the account are written in the columns provided in the form. One signature of the person is taken on the face of the form and one is

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taken on the backside. These signatures should be usual signatures and he would operate the account with them in future. Specimen Signature Card (S. S. Card): The signatures of the client are obtained on a specimen Signature card. These cards are obtained in duplicate with two signatures on each card from the customer. Every time a cheque is received for a payment from the client, the signature on the cheques are verified by comparing them with the S.S. Card. Issuance of Account Number: When all the formalities are completed then the final approval of account has to be taken from the Branch Manager. After obtaining approval of the branch manager an account number is allotted to the customer and all the information is entered into the computer. Then that account number is printed on the Cheque Book, S. S. cards and account opening form. Issuance of a Cheques book: After opening an A/C with the bank, the A/C holder once again makes a request in the name of bank for the issuance of a cheques book. The A/C holder mentions title of A/C, A/C number, sign it properly and mentions the no of leaves he requires. Normally Summit Bank issues a cheques book having at least 25 leaves. Every cheques book also contains one leaf that is used for another issue of a cheques book Entry of Cheque Book: Before issuance of a cheques book, the employee performs certain functions. They include: Stamping every leaf if the account is photo account Enters it in the Cheque book issue register. After entry in the manual register, and in the system the employee issues the cheque book to the A/C holder after his/her signature on the register. Recording in Computer: After opening of account, all information regarding the account is entered into the computer. Currently, a program named hplus is being used for this purpose. Record of all the transactions regarding the account of a customer is kept updated in the computer. PROCEDURE FOR CLOSING AN ACCOUNT The procedure followed for the purpose of closure of an account is described in the following steps The client who wishes to close an account first has to give an application, duly signed on the pre-printed application of the bank. The 34

client has to attach this application with the liability form. The client can also give an application on a plain paper, but correct signatures are very necessary. Then it has to be made sure that if the account to be closed is a saving or Foreign Currency Account then the account balance before closing should be zero. In case of these types of accounts the bank does not take any closing charges. If a client wishes to close a current account then the bank charges Rs.150, so at the time of closing the balance should be Rs.150. Along with the application to close the account client’s Cheque book is also received from him and then it is destroyed in order to prevent any misuse in the future. A liability form is filled and sent to the Trade Finance Department and Credit Department in order to check that the customer does not owe the bank a single penny in any regard. A debit voucher and a credit voucher are also attached to the liability form. When both of these departments approve that the customer does not owe any money to the bank and the form is returned to the account opening department then the original account opening form pasted in the ledger when the account was opened is marked ‘account closed’ along with the date on which it is so marked. One thing has to be taken into immediate consideration that the account number allotted to the client (who has closed his account), after closure of the account becomes useless and is not allotted to any one in the future. After approval of the liability form, it is sent to either the Foreign Currency Accounts Departments or the Cash Department, as the case may be so that the officer who scanned it in the first place could return the specimen signature card to the account-opening department. Once the S. S. Card is received back from the concerned official then the liability form, the client’s application along with the specimen signature card is pasted in the ledger right along side the original account opening form. The form has to be pasted with the original account opening form even if the account was opened a decade ago. In the computer as well all the entries and records related to that particular account are permanently deleted by using the ‘close account’ option. CAPTURED ATM CARDS ATM cards when captured in ATM of SMBL are returned to the concerned customer on verification. In both cases, either the customer

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belongs to SMBL or any other bank, CNIC copy is demanded from customer for bank record, CSO fills the ATM captured card form and customer signs that form in presence of CSO. For the record purpose, ATM cards’ copy is also kept with bank. If within seven days from captured card day, customer don’t contacts with bank, then bank is responsible to dispatch ATM card to concerned bank’s Regional\Head Office.

CASH DEPARTMENT This department of bank is mainly responsible for the handling of cash deposits and encashment of cheques issued by the account holders. I worked in this department under Head Teller Mr. Naseem Ahmed Jamali; who taught me that how to deposit cash in customers’ accounts, how to encash cheques, and also taught me that how to transfer funds from one account to another account. In case of Cheque of other bank, which is deposited by customer in his SMBL account, is sent for clearing to concern bank. I also learn about sorting of cash, counting cash, opening balance of cash, and day-end closing of cash in this department. Utility Bills are also accepted in this department, proper entries are made on the system hplus. After accepting the bill, the bill is stamped with Summit Bank Limited stamp. I also learned that how to issue payorder and demand draft.

CLEARING DEPARTMENT One of the basic economic functions of banks is to receive deposits and to honor cheques drawn upon them. So, cheques are a most commonly used instrument for making payments by account holders. Now the question arises that how these cheques & other negotiable instruments drawn on one bank are deposited in other banks and money is transferred from one bank to another. Clearing House has provided this facility. Clearing house facilitates different banks to get their cheques drawn upon other banks to be cleared. Cheques lodged in clearing constitute two types of clearing Outward Clearing Inward Clearing OUTWARD CLEARING When cheques and other negotiable instruments drawn upon other banks like MCB, ABN-AMRO of the same city (as Sukkur) are presented 36

in Summit Bank Limited to deposit them in the respective payee’s accounts, these instruments are lodged in outward clearing of summit Bank limited. When the cheques are presented in Summit Bank to be deposited in their respective payee’s accounts, different stamps are put on cheques before their lodgment in outward clearing. Crossing the Cheques Crossing means two parallel transverse lines, drawn across the face of the cheques with or without words written in between them. Crossing may be general or special. In clearing, cheques are crossed specially. Cheques are stamped with bank’s name between two transverse parallel lines to constitute special crossing. After the cheques have been crossed specially, the holder cannot receive payment except through the banker named on the cheques. Basic advantage of crossing is to save the instrument to go it from illegal hands. If, crossed cheques is lost or stolen, there is no risk of wrong payment. So it is an effective means of minimizing the risk of loss or forgery. Clearing Stamp After the cheques have been crossed specially, clearing stamp is put on the cheques and other instruments, with the following day’s date, as these cheques would have to be presented in their concerned drawee banks on the subsequent day. Endorsement Stamp It means anything written or printed upon the back of an instrument. So, at the end, the cheques are endorsed in full (endorsed specially) by putting the stamp with words describing “Payee’s account Credited in Summit Bank Limited, Shikarpur Road Branch Sukkur”. After putting these three stamps on cheques & other negotiable instruments, they are sent to NIFT (National Institutional Facilitation Authority) with Add List. NIFT after segregating the cheques of different banks delivers them to their concerned banks, which constitute the inward clearing for those (drawee) banks. INWARD CLEARING Cheques and other negotiable instruments (PO, DD etc.) drawn on Summit Bank Limited, Sukkur, sent by other banks, constitutes the inward clearing of Summit Bank. After having all the stamps and dates of cheques confirmed, the concerned drawer’s accounts are debited

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(in Summit Bank Limited) and main branch’s account is credited by the total amount. COLLECTION (OBC) When cheques and other negotiable instruments drawn upon other banks outside the city (Sukkur) are presented in Summit Bank Limited, Urdu bazar branch, Lahore to deposit in payee’s accounts, then instead of clearing, these instruments are lodged in collection and constitute “Outward Bills for Collection” OBC. Cheques of cities, where Summit Bank Limited branch exists (e.g. Islamabad, Faisalabad etc.) are sent to that branch where these cheques are lodged in is outward clearing. Otherwise, they are directly sent to the drawee bank. Postage & other charges are deducted on account of payee according to Schedule of Charges.

SWOT ANALYSIS STRENGTHS Strengths BAL-IBD is that Pakistan Credit Rating Agency Bank has been awarded an AA-and A1+ (A one plus) in the long and short term respectively. Strength is shown from its ratios in most of the ratios it is better than others. Strength is that assets are increasing and the major asset cash and lending to financial institutions are increasing which shows the strength. Earning to total assets is also improving from previous year and it is somewhat different from others. BAL-IBD has strong online network system. WEAKNESSES As I have thoroughly study the Bank’s management and financial there is no such major weak point but one point is that there liabilities are increasing from year to year and in 2005 it become very high as compared to the previous year. Another is Bank is decreasing which in my opinion is a weak point. Equity to total assets is decreasing from previous year. OPPORTUNITIES

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As far as opportunities are concerned BAL-IBD is growing day by day and its profits are increasing it has an opportunity to develop more branches to expand the business. And there is acceptance of its services so Bank has to increase its services to meet its customer’s needs. THREATS There is an increase in the debts of Bank so this can be a threat for the Bank and they should look upon this.

CONCLUSIONS  There is lowest branch network of Summit Bank Ltd.

 Schemes are not properly advertised so that the target market does not know about facilities offered by it.

 There is no training program for employees to equip them and warm from latest information.  No bonus is given to employees.

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SUGGESTIONS  New branches should be open in every corner of the country, for the purpose to serve maximum number of customers.  Time to time, print or electronic advertising must be given by leading networks of country about the organization/about the new products/services, to aware the customers.  Training programs must be organized on head office level for the employees, not in branches; because branch staff is busy in their work then how can they train new appointed employees.  Bonus must be given to employees, at least once a year Festival Allowance on Eid should be given.

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REFERENCES  Annual Report of Summit Bank Ltd. 2011  Standard Operating Procedure for Account Opening and Management  Products’ Brochures  Shikarpur Road Branch Sukkur

Websites:  www.summitbank.com.pk  Business Recorder (Business Newspaper)

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