SUMMIT BANK LIMITED

SHIKARPUR ROAD BRANCH, SUKKUR

Internship Report Submitted in Partial Fulfillment

For The Degree of BBA (Finance)

BY: IBRAR AHMED QAZI Session (2011-12) Roll # BBA-08-136 Department Of BUSINESS ADMINISTRATION SHAH ABDUL LATIF UNIVERSITY KHAIRPUR

2 INTERNSHIP REPORT ON

SHIKARPUR ROAD BRANCH, SUKKUR

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. Shikarpur Road Branch, Sukkur. This report is prepared in partial fulfillment of the degree of BBA (Bachelor of Business Administration).

Iam thankful to the staff of Summit Bank Ltd. Shikarpur Road Branch, Sukkur:

Mr. Muhammad Iqbal Motlani (Branch Manager) Mr. Asif Zia Soomro (Operations Manager) Mr. Faisal Khan (Relationship Manger) Miss. Nadia Jatoi (Customer Services Officer) Mr. Naseem Ahmed Jamali (Head Teller) Mr. Rafiq Ahmed Mithani (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.

III 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 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

IV • 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 TABLE OF CONTENTS

Rating Type: JCR – VIS...... 5 Here’s how it Works?...... 14 Here’s what you get?...... 14 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...... 22 Worried about how to meet all the expenses coming up at once?...... 23 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...... 23 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...... 27

V 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

1 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 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 31st 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 18th August 2010, Arif Habib Bank Ltd was rebranded as Summit Bank Ltd.

2 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.

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

3 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.

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.

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