Name of organization

Soneri Bank Limited

Saleha bibi
BAFM-21-41
Session 2021-2025
Submission date :

DEPARTMENT OF COMMERCE, BAHAUDDIN

ZAKARIYA UNIVERSITY, MULTAN
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Table of contents
Types of banking : An overview...........................................................................................................4
Banking Services Provided by Soneri Bank.....................................................................................4
Brief History...........................................................................................................................................7
Nature of Organization.........................................................................................................................7
Mission Statement................................................................................................................................7
Vision Statement...................................................................................................................................7
Products and Services............................................................................................................................8
Current Accounts..................................................................................................................................8
Types of Current Accounts at Soneri Bank.........................................................................8
Savings Accounts.................................................................................................................................8
1. Chequing Accounts...................................................................................................................8
2. Non-Chequing Accounts...........................................................................................................9
Types of Savings Accounts at Soneri Bank........................................................................9
Term Deposits.......................................................................................................................................9
Types of Term Deposits at Soneri Bank..............................................................................9
Term Deposit Receipts......................................................................................................................10
Profit Payment Frequency in Soneri Bank Accounts...................................................................11
Departments Overview..........................................................................................................................12
Accounts Department........................................................................................................................12
Accounts Opening..............................................................................................................................12
Clearing................................................................................................................................................13
Cash.....................................................................................................................................................14
Marketing.............................................................................................................................................15
Sales.....................................................................................................................................................15
Remittance..........................................................................................................................................15
Trade....................................................................................................................................................16
Credit....................................................................................................................................................19
Operations...........................................................................................................................................19
Bank Payment Instruments: Pay Order, Demand Draft, and Banker's Cheque.....................19
Pay Order, Demand Draft, and Banker's Cheques................................................................19
1. Pay Order (PO)..............................................................................................................................19
2. Demand Draft (DD)........................................................................................................................20
3. Banker's Cheque............................................................................................................................20
Empowerment of women at Soneri Bank.........................................................................................21
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SWOT Analysis of Soneri Bank..........................................................................................................21

Strengths..............................................................................................................................................21
Weaknesses........................................................................................................................................21
Opportunities.......................................................................................................................................22
Threats.................................................................................................................................................22
Conclusion...............................................................................................................................................22
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EXECUTIVE SUMMARY

During my internship at Soneri Bank Limited, I gained practical experience across various
departments, including Accounts, Cash, Clearing, Marketing, and Sales. This exposure allowed
me to understand the bank's operations, from customer account management and cash handling
to promoting banking services. I became familiar with essential processes like account opening,
interbank transaction clearing, and vault management. Each department played a crucial role in
delivering efficient services, and my involvement helped me appreciate how these functions
contribute to the bank’s overall success.

In addition to day-to-day tasks, I developed a better understanding of the bank’s diverse financial
services, including consumer and business banking, digital banking, and Islamic finance. I
worked with various banking products such as savings and current accounts, credit cards, loans,
and fixed deposits, which gave me valuable insight into how these products are tailored to meet
customer needs. This experience helped me grasp the importance of risk management, customer
engagement, and the strategic role these services play in the banking sector.

The internship presented challenges, particularly adapting to the complex regulatory

environment and fast-paced banking operations, but these obstacles helped me develop strong
problem-solving and communication skills. Overall, the experience significantly enhanced my
understanding of the banking industry, equipped me with valuable skills, and provided a solid
foundation for my future career in finance.
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Types of banking : An overview

Banking can be categorized into several types, each serving different customer segments and
financial needs.

Consumer banking, also known as retail banking, focuses on providing services to individual
customers, such as savings accounts, loans, and credit cards.
Commercial banking caters to businesses and corporations, offering products like business
loans and cash management services.
Investment banking assists companies in raising capital and provides advisory services for
mergers and acquisitions.
Private banking targets high-net-worth individuals, offering personalized wealth management
and financial planning services.
Central banking is responsible for regulating the monetary system and managing national
financial stability.
Cooperative banking operates on a member-owned model, focusing on community needs,while
Islamic banking adheres to Sharia law, providing interest-free financial products.

Banking Services Provided by Soneri Bank

Soneri Bank offers a comprehensive range of banking services
designed to cater to the diverse needs of its customers. Key
services include:

1. Consumer Banking Services:

Savings Accounts: Various savings accounts to help individuals save money while earning
interest.
Current Accounts: Accounts designed for everyday transactions, allowing easy access to
funds and cheque facilities.

Loans Offered in Consumer Banking

Soneri Bank offers different types of loans aimed at meeting the diverse financial needs of
individuals. These include:

Credit Card Financing: Customers are provided with credit cards that allow them to borrow
money up to a certain limit. Soneri Bank’s credit cards come with features such as monthly
billing cycles and interest on the unpaid balance. The maximum limit for a credit card can go up
to 5 million PKR, based on the individual's creditworthiness.
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Car Financing: This service is designed for individuals looking to purchase vehicles. The bank
offers flexible terms and conditions, making car ownership affordable through manageable
monthly installments. Car financing is available for both new and used cars.

Dealer Financing (DF for Cars): This is a financing option for customers who want to buy cars
directly from partnered dealerships. The bank works in collaboration with these car companies to
provide loans with high limits, often up to 3 million PKR, making it an appealing option for
buyers seeking higher-end vehicles.

Personal Loans: Soneri Bank offers personal loans to salaried individuals for meeting
personal expenses such as medical emergencies, weddings, or travel. These loans typically
require proof of income and are repaid in fixed installments.

Solar Financing: In an effort to support green energy solutions, Soneri Bank provides solar
financing options. This allows customers to finance the purchase and installation of solar panels,
contributing to environmental sustainability while reducing energy costs.

Home Financing:
Soneri Bank participated in government-backed housing schemes such
as the "Mera Pakistan Mera Ghar" (MPMG). This program aimed to
make home purchases more affordable through long-term financing
plans with lower interest rates, allowing individuals to buy, build, or
renovate a home. However, the scheme was later canceled by the
government.

Card Services

Soneri Bank offers both debit and credit card services for convenient transactions:

Debit Cards: Linked to customers’ bank accounts, these cards allow for direct access to funds in
the account. Debit cards can be used for everyday purchases or ATM withdrawals.

Credit Cards: With a credit card, Soneri Bank customers can borrow up to a certain limit and
pay off the balance over time, either fully or partially. Credit cardholders enjoy a borrowing limit
that can go up to 5 million PKR, offering flexibility in managing short-term expenses.

Card Payment Networks:

PayPak: This is a local payment network used for transactions within Pakistan.
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MasterCard & Visa: These are international payment networks, allowing for both domestic and
international transactions.

2. Term Deposits:
Fixed Deposit Accounts: Providing higher interest rates for customers willing to lock their
money for a specified period.

3. Business Banking Services:

Business Accounts: Tailored accounts for small and medium-sized enterprises (SMEs).
Business Loans: Financing options to help businesses grow, including working capital and
equipment loans.

4. Investment Services:
Wealth Management: Services designed to help customers invest their money effectively and
grow their wealth over time.

5. Digital Banking:
Online and Mobile Banking: User-friendly digital platforms that allow customers to manage
their accounts, transfer funds, and pay bills conveniently.

6. Islamic Banking Products:

Sharia-compliant banking options, including profit-sharing contracts and leasing, catering to
customers who prefer Islamic finance principles.

7. Financial Advisory Services:

Providing customers with expert advice on financial planning, investment strategies, and other
financial matters.

By offering these diverse banking services, Soneri Bank aims to meet the financial needs of
individual customers, businesses, and communities, contributing to their financial well-being and
growth.
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Overview of the organization

Brief History
Soneri Bank Limited was established on September 28th, 1991, with a mission to provide
innovative financial solutions and exceptional customer service. Over the years, the bank has
expanded its operations, now boasting over 500 branches and
ATMs across Pakistan, including 59 Islamic Banking branches. The bank’s key areas of
operation include Branch Banking, Corporate & Investment Banking, Treasury, SME, Financial
Institutions, and Islamic Banking.

Nature of Organization
As a commercial bank, Soneri Bank Limited offers a variety of services tailored to businesses
and individuals. These services include checking and savings accounts, financing options, and
cash management solutions. The bank’s focus remains strictly on financial and service-related
offerings, striving to meet the diverse needs of its clients through innovative and efficient
banking solutions.

Mission Statement
Soneri Bank Pakistan is committed to providing innovative and efficient financial solutions to its
customers. By focusing on customer needs and delivering tailored financial services, the bank
aims to create value and facilitate economic growth.

Vision Statement
The vision of Soneri Bank Pakistan is to better serve its customers by fostering their financial
growth and contributing to the overall development of society. The bank aspires to be a catalyst
for positive change, both for its clients and the broader community.
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Products and Services

Soneri Bank Limited offers a comprehensive range of financial products and services designed to
meet the needs of various customer segments.

The bank’s offerings are categorized into three main areas:

1. Current accounts
2. Savings Accounts
3. Term deposits

Current Accounts:
A current account at Soneri Bank is designed for customers who require frequent
access to their funds and need a reliable platform for day-to-day transactions.

Types of Current Accounts at Soneri Bank:

● Soneri Business Current Account: Tailored for businesses with high

transaction needs, providing unlimited free transactions and overdraft options.
● Soneri Asaan Current Account: A basic account with simplified
documentation requirements, catering to individuals and small businesses.

Savings Accounts:

A savings account at Soneri Bank is designed for individuals who

want to save money while earning interest. These accounts typically
offer competitive interest rates along with limited access to funds to
encourage savings.When categorizing savings accounts, they can be
broadly divided into chequing accounts and non-chequing accounts based on whether they allow
the account holder to issue cheques and have easy access to their funds.

1. Chequing Accounts

● Description: These are savings accounts that allow account holders to issue cheques and
have easy access to their funds for everyday transactions.
● Key Features:
○ Cheque Facility: Customers can issue cheques to make payments or withdraw
funds.
○ Easy Access: These accounts are designed for frequent transactions, such as bill
payments, purchases, and regular withdrawals.
○ Low Interest: Chequing accounts usually offer lower interest rates compared
to other savings accounts because of their high liquidity and ease of access.
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● Best for: Individuals or businesses needing regular access to their funds for daily
transactions.

2. Non-Chequing Accounts

● Description: These accounts do not offer cheque facilities and are primarily meant
for saving money over time, often with limited access to the funds.
● Key Features:
○ No Cheque Facility: Customers cannot issue cheques from these accounts.
○ Higher Interest Rates: Since these accounts are intended for saving, they usually
offer higher interest rates compared to checking accounts.
○ Limited Access: Non-chequing accounts may have restrictions on withdrawals or
transfers, often encouraging customers to save rather than spend.
● Best for: Individuals looking to save money and earn higher interest, without needing
frequent access to their funds.

Types of Savings Accounts at Soneri Bank:

● Soneri Savings Account: A basic savings account offering competitive interest rates
and flexibility for withdrawals.
● Soneri Sahara Savings Account: Designed to encourage savings with regular prizes and
rewards, alongside interest accrual.
● Soneri Asaan Savings Account: A low-requirement account with simpler
documentation, ideal for individuals looking to start saving with minimal barriers.
● Soneri Bachat Account: Offers higher interest rates, especially for larger
balances, encouraging long-term savings.
● Soneri Rozana Munafa Account: Provides daily profit calculations and offers
interest on a daily basis for account holders who want frequent returns on their
savings.

Term Deposits:
A Term Deposit Account (also known as a fixed deposit) is a type of savings account where the
account holder deposits a specific amount of money for a fixed period, during which the funds
cannot be accessed without penalties. In return, the bank offers a higher interest rate compared to
regular savings accounts. Term deposits are ideal for individuals looking to save money for the
long term and earn higher returns.

Types of Term Deposits at Soneri Bank:

● Short-Term Deposits: For terms less than one year, providing flexibility for those
who may need access to their funds sooner.
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● Long-Term Deposits: For terms of one year or more, offering higher interest rates
and better returns for long-term savings.
● Soneri Bank Fixed Deposit: Soneri Bank offers competitive fixed deposit rates
with flexible tenure options, catering to both short-term and long-term savers.

Term Deposit Receipts

A Term Deposit Receipt (TDR) is an official document issued by a bank or financial institution
as proof of a term deposit account. This receipt provides essential details regarding the deposit
and serves as evidence of the investment made by the account holder.

1. Details of the Deposit:

The TDR contains important information about the deposit, including:

● The principal amount deposited.

● The interest rate applicable to the deposit.
● The tenure (maturity period) of the deposit.
● The maturity date when the deposit will come to an end.

2. Interest Payment Terms:

The receipt specifies the frequency of interest payments, whether it’s monthly, quarterly,
annually, or at maturity.

3. Account Holder Information:

The TDR includes details about the account holder, such as their name, account number, and
contact information.

4. Unique Identification Number:

Each TDR usually has a unique identification number for tracking and reference purposes.

5. Signatory Authority:

The TDR is typically signed by bank officials, validating the authenticity of the document.

Significance:

Proof of Investment: The TDR acts as legal evidence that the account holder has invested a
certain amount in a term deposit, protecting the holder's rights.
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Facilitates Claims: In case of any disputes or clarifications regarding the deposit, the TDR serves
as a point of reference for the account holder and the bank.

Maturity Instructions: Upon maturity, the TDR can guide the account holder on how to withdraw
the funds, renew the deposit, or transfer the interest.

Purpose:

The primary purpose of a Term Deposit Receipt is to provide the account holder with assurance
regarding their deposit and to outline the terms associated with the investment. It serves as an
important document for financial planning and record-keeping.

Profit Payment Frequency in Soneri Bank Accounts

Profit payment frequency refers to how often banks credit profits (interest or returns) to account
holders. Soneri Bank, like other financial institutions, offers various profit payment frequencies
depending on the type of account. These include daily profit payments, such as in the Soneri
Rozana Munafa Account, where profits are credited daily, providing frequent returns. Other
accounts may offer monthly, quarterly, half-yearly, or annual profit payments, with the frequency
often depending on the nature of the account or investment. Generally, accounts with more
frequent profit payments, like daily or monthly, offer higher liquidity, while less frequent
payments, such as quarterly or annually, may provide better profit rates in long-term savings or
fixed deposit accounts.
Here is the profit payment frequency table for Soneri Bank accounts:

ACCOUNT TYPE PROFIT PAYMENT FREQUENCY

Soneri Savings Account Monthly, on the 1st day of the following

month

Soneri Sahara Account(Senior Citizens) Monthly

Soneri Pensioners Savings Account Semi-ann

Soneri Monthly Munafa Term Deposit Monthly

Soneri Ladies First Term Deposit Monthly

1-Year Term Deposit At maturity (yearly)

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Departments Overview
Soneri Bank Limited operates through several key departments, each playing a critical role in
ensuring the efficient and effective delivery of banking services:

Accounts Department:
Manages all aspects of customer account handling, including opening, maintenance, and closing
accounts. This department ensures that account transactions are processed accurately and
efficiently.

Accounts Opening:
Specializes in the onboarding of new customers, ensuring compliance with KYC regulations and
setting up account details in the banking system to facilitate
smooth account initiation. The documents required for opening
accounts can vary depending on the type of account and the entity
involved.
Here’s a breakdown:

1. Individual Account
Proof of Identity: National ID card, passport, or driver’s license.
Proof of Address: Utility bill, bank statement, or rental agreement.
Proof of Income or Employment (if required): Pay slip or
employment letter. Passport-size Photographs: Typically 1-2 recent photos.
Completed Application Form: Provided by the bank.

2. Company Account
Company Registration Documents: Certificate of Incorporation, Memorandum, and Articles of
Association.
Proof of Identity: ID of directors and authorized signatories.
Proof of Address: Utility bill or lease agreement for the business premises. Tax Identification
Number: Company’s tax registration number.
Board Resolution: Authorizing the opening of the account and specifying the signatories. Proof
of Business Activity: Business license or trade registration.

3. Partnership Account
Partnership Deed: Document outlining the terms of the partnership.
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Proof of Identity: ID of all partners.

Proof of Address: Utility bill or lease agreement for the business address. Tax Identification
Number: Partnership’s tax registration number.
Proof of Business Activity: Business license or trade registration.
Board Resolution: Authorization from partners to open the account (if required).

4. Sole Proprietorship Account

Proof of Identity: National ID card or passport of the proprietor.
Proof of Address: Utility bill or rental agreement for the business premises. Proof of Business
Activity: Business license or trade registration.
Tax Identification Number: Sole proprietor’s tax registration number.
Completed Application Form: Provided by the bank.

Clearing:
Handles the clearing and settlement of interbank transactions, such as cheques and electronic
payments, ensuring that all transactions are reconciled and processed accurately.

NIFT (National Institutional FacilitationTechnologies)

Procedure
NIFT (National Institutional Facilitation Technologies) plays a
critical role in the financial infrastructure of Pakistan, facilitating
the processing and settlement of financial transactions across
banks, including Soneri Bank.
NIFT supports the efficient and secure handling of cheque clearing
and electronic funds transfers (EFTs), essential for the smooth operation of banking services.

1. Cheque Clearing Process

Collection and Submission: Banks, including Soneri Bank, collect cheques from customers and
submit them to NIFT.
Data Processing: NIFT scans and captures data from the cheques, including images and MICR
codes.
Clearing: Processed data is sorted and transmitted to the respective banks.Settlement: Funds are
settled between banks through the State Bank of Pakistan (SBP).

2. Electronic Funds Transfer (EFT)

Initiation: Customers initiate electronic transfer requests through their banks, such as Soneri
Bank.
Processing: NIFT processes and verifies these requests.Settlement: Funds are transferred and
credited to the recipient's account.
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3. Clearing Timelines
Regular Clearing: Local cheques are cleared within 1-2 working days, while outstation cheques
take 3-7 working days.
Same-Day Clearing: Available for urgent transactions if submitted before the cut-off time.
Electronic Transfers: RTGS transactions are processed within minutes to hours, while other
EFT transactions typically take 1-2 working days.
RTGS (Real-Time Gross Settlement) is a system for electronic funds transfer where
transactions are settled on a real-time basis.

4. Security and ComplianceData Security: NIFT ensures data is encrypted during

transmission.
Regulatory Compliance: NIFT adheres to regulations set by the State Bank of Pakistan and
international standards.

5. Customer Support and Dispute Resolution

Support Services: NIFT provides assistance for issues related to cheque clearing and EFT
transactions.
Dispute Resolution: NIFT coordinates with banks to resolve discrepancies and disputes.

Cash:
Manages the physical cash flow within the bank, ensuring that adequate cash levels are
maintained in branches and ATMs, and that all cash transactions are securely handled.
Here are the key functions of the cash department:

1. Cash Receipts:
Receiving cash deposits from customers.
Verifying the authenticity of the currency notes.
Issuing deposit receipts to customers after processing the transaction.

2. Cash Payments:
Handling withdrawals by disbursing cash to customers.
Ensuring proper verification of withdrawal slips, checks, and identification.

3. Cash Balancing:
Maintaining accurate records of cash inflows and outflows.
Ensuring that the cash on hand matches the amounts recorded in the system at the end of the day.

4. Currency Exchange:
Facilitating the exchange of different currency denominations.
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Providing foreign exchange services for customers traveling abroad or dealing in foreign
currencies.

5. Vault Management:
Safeguarding excess cash in the bank’s vault.
Ensuring that cash reserves are adequate to meet the bank's daily operational needs.

6. Counterfeit Detection:
Identifying and handling counterfeit currency.
Training staff to recognize fraudulent notes and ensure only legitimate currency circulates.

7. Cash Transfers:
Facilitating inter-branch cash transfers for balance requirements.
Coordinating with the central bank or other branches to manage excess or deficit in cash.

8. ATM Replenishment:
Preparing and providing cash for Automated Teller Machines
(ATMs). Ensuring that ATMs are regularly stocked and functioning
correctly.

Marketing:
Develops and implements strategies to promote the bank’s products and services, enhancing
brand presence and customer engagement through targeted advertising and market research.

Sales:
The Sales Department of Soneri Bank is vital for the bank's growth, focusing on promoting its
products and services to potential customers. Key functions include product promotion, customer
acquisition, and client relationship management, which involve understanding client needs and
providing suitable banking solutions. The department also offers financial advisory services,
conducts market research to analyze customer preferences and trends, and prepares sales
performance reports for management evaluation. Overall, the Sales Department is instrumental
in driving customer engagement and enhancing loyalty, contributing to the bank's success.

Remittance:
Facilitates domestic and international money transfers, managing wire transfers, money orders,
and other remittance services to ensure timely and secure transactions.
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Inward and Outward Remittances:

● Inward Remittances: When a customer receives funds from abroad, the Remittance
Department processes and credits the amount to the beneficiary’s account or provides
the recipient with cash.
● Outward Remittances: Soneri Bank facilitates the transfer of funds to foreign accounts
as per the customer's request, ensuring compliance with local regulations.

Trade:
Supports businesses in international trade by providing trade finance services such as letters of
credit and export-import financing, aiding in the management of global trade transactions.
Soneri Bank, like other commercial banks, offers various modes of payment in trade to facilitate
both domestic and international business transactions. These services are crucial for businesses
in cities like Multan, which has a strong presence of industries such as agriculture, textiles, and
manufacturing. Below are some key trade finance services and payment modes provided by
Soneri Bank Multan:

1. Letters of Credit (LC)

Usage: This is one of the most common methods for international trade, especially in regions
like Multan, where textile exports are significant.
Process: Soneri Bank guarantees payment to the exporter on behalf of the importer, provided
that the exporter meets the conditions outlined in the letter of credit. This minimizes risk for both
parties.
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Types of LCs offered by Soneri Bank:

Sight LC: Payment is made immediately upon presentation of compliant documents.
Usance LC: Payment is made after a specified credit period (e.g., 30, 60, or 90 days).
Benefits: Helps businesses secure and process payments reliably, especially for high-value
transactions.

2. Documentary Collection (D/P and D/A)

D/P (Documents Against Payment): The seller ships the goods and provides the shipping
documents to Soneri Bank, which releases them to the buyer upon payment. The goods cannot be
released until payment is made.
D/A (Documents Against Acceptance): The shipping documents are released to the buyer
after they accept the bill of exchange, agreeing to pay at a later date.
Usage: These methods are commonly used when the seller and buyer have a moderate level of
trust and wish to avoid the costs of an LC.

3. Bank Guarantees
Usage: In industries such as construction and manufacturing, Soneri Bank offers bank
guarantees to secure business transactions. This guarantees that if one party fails to meet the
contractual terms, the bank will cover the financial losses.
Types of Guarantees:
Performance Guarantees: Ensures that the seller will fulfill their contractual obligations.
Payment Guarantees: Ensures that payment will be made in case the buyer defaults.

4. Cash in Advance
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Usage: Soneri Bank facilitates cash in advance payments, where the buyer pays the seller
upfront before the goods are shipped. This method is particularly useful for high-risk transactions
or when trust is not yet established.
Process: The buyer deposits the cash into the seller’s account via bank transfers or other means
through Soneri Bank, which ensures a safe and timely transfer.

5. Open Account
Usage: This is one of the least secure payment methods but is often used between
long-standing trade partners.The seller ships goods and receives payment at a future date.
Role of Soneri Bank: The bank may facilitate open account transactions by offering credit
evaluation and collection services, allowing the exporter to assess the risk of default from the
importer.

6. Trade Credit / Working Capital Financing

Usage: Soneri Bank offers trade credit and financing options to businesses that need short-term
loans to manage their working capital needs during the trade cycle.
Benefits: This mode helps exporters and importers, especially in the agriculture and textile
sectors, to maintain liquidity and cash flow while waiting for payments from their trade partners.

7. Foreign Exchange Services

Usage: Soneri Bank assists businesses engaged in international trade by offering competitive
foreign exchange services. This is critical for businesses exporting products like cotton, textiles,
to global markets.
Process: The bank facilitates currency exchange and cross-border payments, ensuring that
importers and exporters can deal in multiple currencies without facing exchange rate risks.

8. SWIFT Transfers (Wire Transfers)

Usage: Soneri Bank provides secure and fast international wire transfer services through the
SWIFT network. This mode is widely used for immediate and high-value payments.
Process: Businesses can transfer money to overseas suppliers or receive payments from
international buyers securely and quickly via Soneri Bank's SWIFT transfer services.

9. Export and Import Financing

Export Financing: Soneri Bank supports exporters by providing pre-shipment and
post-shipment financing. Pre-shipment financing helps exporters cover the costs of raw
materials and production, while post-shipment financing provides liquidity while waiting for
payment from international buyers.
Import Financing: For importers, Soneri Bank provides trade financing to pay for goods
being imported into the country, ensuring they have the necessary capital to make large
purchases.
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Credit:
Assesses and approves credit applications, including personal and business loans, while
managing credit risk and ensuring that financing options are aligned with the bank’s risk
management policies.

Operations:
Oversees the bank’s day-to-day operations, including process management, system maintenance,
and compliance with operational policies, ensuring that all banking functions run smoothly and
efficiently.

Bank Payment Instruments: Pay Order, Demand Draft, and

Banker's Cheque

Pay Order, Demand Draft, and Banker's Cheques

These instruments are used for safe and secure payments, often issued by banks, and serve
different purposes in domestic and international trade.

1. Pay Order (PO)

● Description: A Pay Order (PO) is a bank-issued financial instrument that instructs the
bank to pay a specified amount to a named person or organization within the same
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city.
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● Usage: Used for local transactions, such as making payments to suppliers, service
providers, or individuals within the same city.
● Characteristics:
○ Local Payment: Can only be used within the issuing city or region.
○ Guaranteed Payment: The bank guarantees the payment as the amount is
debited from the customer's account when the pay order is issued.
○ Non-Transferable: It is typically non-transferable, meaning it can only
be encashed by the person in whose name it is issued.

2. Demand Draft (DD)

● Description: A Demand Draft (DD) is a financial instrument issued by a bank that

directs another bank (or the same bank’s branch) to pay a specified sum to a
named person or entity, typically used for outstation or cross-city payments.
● Usage: Commonly used in situations where the sender and receiver are in different
cities or even different countries.
● Characteristics:
○ Cross-City/Outstation Payments: Unlike a pay order, a demand draft can
be used to make payments across different cities or regions.
○ Guaranteed Payment: The issuing bank guarantees the payment, and the amount
is debited from the account when the draft is created.
○ Secure Payment: DDs are often used when the payee is in another city,
reducing the risk of cheque bounce or delays.

3. Banker's Cheque

● Description: A Banker’s Cheque is similar to a pay order but is typically used for
large-value transactions. It is a cheque issued by the bank itself, guaranteeing payment to
the payee.
● Usage: Primarily used for payments within the same city for services, large
transactions, or business deals.
● Characteristics:
○ Local Transactions: Primarily used for local payments like a pay order but
with a focus on high-value transactions.
○ Guaranteed Funds: The bank guarantees the funds since the amount is debited
from the issuer’s account when the banker’s cheque is issued.
○ Non-Transferable: It is usually non-transferable, similar to a pay order.
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Empowerment of women at Soneri Bank

Women at Soneri Bank play a significant role in enhancing the
organization’s diverse workforce and driving its success. The bank is
committed to gender equality, with women occupying leadership
positions across various departments, including management and
customer service. This representation fosters a balanced work
environment that promotes innovative ideas and effective
decision-making. To support women in achieving their financial
goals, Soneri Bank offers a range of tailored products designed
specifically for them. These include personal loans with flexible
repayment options, savings accounts with attractive interest rates, and special financing schemes
for education, home ownership, and entrepreneurship. Additionally, the bank conducts financial
literacy programs aimed at empowering women to make informed financial decisions. Through
these initiatives, Soneri Bank not only champions the role of women within its workforce but
also ensures that their financial needs are effectively met, contributing to their personal and
professional growth.

SWOT Analysis of Soneri Bank

Strengths
1. Strong Brand Reputation: Soneri Bank has built
a solid reputation in the banking sector, known for its
customer service and reliable financial products.
2. Diverse Product Portfolio: The bank offers a
wide range of products, including personal banking,
corporate banking, investment services, and specialized financing, catering to various customer
segments.
3. Technology Adoption: Investments in digital banking and technology improve
customer experience, streamline operations, and enhance service delivery.
4. Extensive Branch Network: With numerous branches across Pakistan, Soneri Bank
provides easy access to banking services for customers in urban and rural areas.

Weaknesses
1. Limited International Presence: Compared to larger banks, Soneri Bank has a
relatively limited footprint in international markets, which may restrict growth
opportunities.
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2. Vulnerability to Economic Fluctuations: Being heavily reliant on the domestic market

makes the bank susceptible to local economic downturns and regulatory changes.
3. Customer Awareness: Some customers may not be fully aware of the full range of
products and services offered, potentially limiting market penetration.

Opportunities
1. Expansion of Digital Banking Services: Increasing demand for online banking solutions
presents opportunities for Soneri Bank to expand its digital offerings and attract tech-savvy
customers.
2. Financial Inclusion Initiatives: Opportunities exist to promote financial products to
underserved segments, such as women and small businesses, helping to increase market share.
3.Partnerships with Fintech Companies: Collaborating with fintech startups can enhance
service delivery and provide innovative financial solutions to customers.
4. Economic Growth: The potential for economic growth in Pakistan can increase demand for
banking services and investment products.

Threats
1. Intense Competition: The banking sector in Pakistan is highly competitive, with many banks
vying for market share, leading to pressure on pricing and profitability.
2. Regulatory Challenges: Changes in banking regulations and compliance requirements can
pose challenges for operations and may require additional resources for adherence.
3. Cybersecurity Risks: Increasing reliance on digital banking raises concerns about
cybersecurity threats, which can impact customer trust and operational integrity.
4. Economic Instability: Fluctuations in the economic environment, such as inflation or political
instability, can adversely affect banking operations and customer demand.

Conclusion

In conclusion, the internship experience at Soneri Bank has provided valuable insights into the
banking sector and the essential functions within the organization. The bank's commitment to
customer service, innovative financial products, and gender equality underscores its dedication to
meeting the diverse needs of its clients. Through specialized offerings for women, including
personal loans, savings accounts, and educational financing, Soneri Bank demonstrates its role in
promoting financial empowerment and inclusion. The analysis of the bank's strengths,
weaknesses, opportunities, and threats highlights its robust position in the market while
identifying areas for growth and improvement.
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Furthermore, the exposure to various departments, including the cash and remittance
departments, has enriched my understanding of banking operations and the importance of
effective customer relations. Overall, my internship has not only equipped me with practical
skills and knowledge but has also reinforced the significance of the banking sector in supporting
economic development and individual financial well-being. As I move forward in my career, I
will carry these lessons with me, appreciating the impact that banking institutions like Soneri
Bank have on society.