INTERNSHIP REPORT 2024

Submitted by

Aliyan Nadir

L1F20BSAF0157

Session 2021 - 2024

FACULTY OF MANAGEMENT SCIENCES

University of Central Punjab1-A, Khayaban-e-Jinnah Road, Johar Town

Lahore, Pakistan
 Chapter 1: Introduction

Introduction of the Company:

Soneri Bank was established in 1992.It has a strong presence in major cities of Pakistan like Lahore

Karachi and Islamabad. The Bank started its operations on April 16, 1992, after receiving a

commercial banking license from the State Bank of Pakistan. It has an extensive network of over 290

branches and 300 ATMs across Pakistan. Soneri Bank has also received several awards and

recognitions for its performance, including the “Best Bank in Pakistan” award by the Pakistan

Banking awards. Soneri Bank is regulated by State Bank of Pakistan and adheres to international

banking standards and best practices.

Soneri Bank has embraced technological advancements and has introduced progressive banking

solutions to meet the evolving needs of its customers. The Bank has also expanded its offerings to

include insurance, microfinance, and property management services. During my internship at Soneri

Bank, I had the opportunity to work in operations department Where i have been contributed to

account opening and maintenance processes, I observed and learned transactions processes including

deposits, withdrawals and transfers. In short, I gained valuable skills and knowledge of the Bank’s

operations and culture.

Major Services:

Soneri Bank offers the following major Services:

 Retail Banking

 Corporate and Investment Banking

 Islamic Banking

 Digital Banking

 Remittances

 Trade Finance

Vision Statement:
“To be the most trusted and respected financial partner in Pakistan, creating value for our customers,

shareholders, and the community.”

Analysis of Vision Statement:

Soneri Bank aims to be the most efficient and trustworthy financial institution in Pakistan, with a

focus on building strong relationship and credibility. The bank strives to earn respect from customers,

stakeholders, and the community, suggesting a commitment to excellence and reputation. It also

focuses on customer satisfaction and delivering value to its shareholders. By including community in

its vision, Soneri Bank acknowledges its social responsibility and role in contributing to societal well-

being.

Mission Statement:

“To be a leading financial institution in Pakistan, providing innovative solutions and exceptional

customer service, while maintaining high standards of integrity, transparency, and social

responsibility.”

9 Components of Mission Statement:

Analysis of Mission Statement:

Soneri bank aims to be a top player in Pakistan’s banking industry. This mission provides a clear

direction for the bank’s employees and stakeholders, guiding its decisions and actions. Overall, Its

mission statement reflects a commitment to:

 Excellence and leadership

 Innovation and customer satisfaction

 Ethics and transparency

 Social responsibility

Organizational Structure:
  Board of Directors:

 CEO/Managing Director:

 Executive Management: CFO, COO, CRO, CIO

 Business Divisions:

 Support Functions:

 Branch Network:

 Operations and Support Teams:

Chapter 2: Internship Report

Activity Report on Daily Basis

Day 1:

Day 2:

Day 3:

Day 4:

Day 5:

Day n:

Chapter 3: Organizational Analysis

HR Policies of the Soneri Bank:

1. Recruitment and Selection:

2. Onboarding:

3. Performance Management:

4. Performance Management:

5. Training and Development:

6. Compensation and benefits:

7. Employee Conduct and Discipline:

8. Leave and Time-Off:

9. Employee Relations:

10. Diversity and Inclusion:

11. Health and Safety:

12. Confidentiality and Data Protection:

13. Code of Conduct:

14. Grievance Redressal:

15. Separation and Termination:

Marketing Strategies of the Soneri Bank:

Services Development:

 Digital Banking:

 New Accounts:

 Credit Cards:

 Islamic Banking Products:

Market Development:

 New Branches:

 Rural Banking:

 Digital Expansion:
  Partnerships:

Market Penetration:

 Competitive Pricing:

 Promotions and Offers:

 Customer Retention:

 Referral Programs:

 Advertising and Branding:

 Public Relations:

 Customer Service:

Other Strategies:

 Data-Driven Marketing:

 Segmentation:

 Innovation:

 Sustainability:

SWOT Analysis:

Strengths:

Soneri Bank has a strong presence and a large network of branches across Pakistan. It offers a wide

range of banking products and services. It has an experienced management team with strong banking

expertise and risk management services.

Weaknesses:

Soneri bank has a limited global reach as it primarily operates in Pakistan. There is a less focus on

innovative activities. It depends on traditional banking, slow to adapt to digital banking and fintech.

Opportunities:
Soneri bank can expand its digital banking services to increase customer base. Also, it can tap into

growing demand for Shariah-compliant banking. Expand services to underserved rural areas.

Threats:

There is an intense competition from other banks and fintech companies. Political instability is also a

threat to Soneri bank.

Micro Analysis (Porter’s 5 Forces):

Opportunities:

1. Bargaining Power of the Suppliers:

2. Bargaining Power of the Buyers:

3. Threat of New Entrants:

4. Threat of Substitute Products:

5. Competitive Rivalry:

Threats:

1. Bargaining Power of the Suppliers:

2. Bargaining Power of the Buyers:

3. Threat of New Entrants:

4. Threat of Substitute Products:

5. Competitive Rivalry:

Macro Analysis (PESTELED):

Opportunities:

1. Political:

2. Economic:

3. Social:

4. Technological:
 5. Legal:

6. Environmental:

7. Demographic:

Threats:

1. Political:

2. Economic:

3. Social:

4. Technological:

5. Legal:

6. Environmental:

7. Demographic:

Matrices of Strategic Management:

 IFE

 EFE

 IE

 Space

 BCG matrix

Financial Analysis of the Company:

Ratio Analysis of last three years of Nestle:

RATIOS FORMULA CALCULATIONS

2022 2021 2020

Current Ratio Current Assets / Current Liabilities 0.8771 0.9809 0.8577

Quick Ratio (Current Assets - Inventory)/ 0.5085 0.4435 1.1120

 Current Liabilities

Working Capital Current Assets - Current Liabilities 7,060,000,000 6,698,388,000 5,719,444,000

(Cash and Cash Equivalents) /

Cash Ratio 0.37 0.55 0.14
Current Liabilities

Interpretations:

Current Ratio:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations.

2022: 0.8771

In 2022, the company's current assets were less than its current liabilities, as indicated by a current

ratio of 0.8771. This suggests that the company may have had some difficulty covering its short-term

obligations with its available short-term assets. A current ratio below 1 could be a concern for

potential creditors and investors, as it may indicate liquidity issues.

2021: 0.9809

In 2021, the company's current ratio improved to 0.9809. While still below 1, it shows some

improvement compared to the previous year. The company had a slightly better ability to cover its

short-term liabilities with its short-term assets in 2021.

2020: 0.8577

In 2020, the company had a current ratio of 0.8577, which means its current assets were again less

than its current liabilities. This suggests that the company faced similar liquidity challenges as in

2022.

Quick Ratio:

The quick ratio, also known as the acid-test ratio, is a stricter measure of liquidity because it excludes

inventory. A ratio above 1 is generally considered healthy.

2022: 0.5085

In 2022, the quick ratio is 0.50, indicating that the company had 0.50 in quick assets (assets easily

converted to cash) for every 1 in current liabilities. This suggests a lower ability to cover short-term

obligations compared to 2021 and 2020.

2021: 0.4435

In 2021, the quick ratio was 0.4435, which is lesser than in 2022.

2020: 1.1120

In 2020, the quick ratio was 1.1120, indicating strong liquidity and a better ability to cover short-term

obligations compared to the other two years.

Working Capital:

Working capital represents the excess of current assets over current liabilities. A positive working

capital indicates the company's ability to meet its short-term obligations.

2022: 7,060,000,000

In 2022, the working capital is 7,060,000,000, which is positive and suggests the company has a

cushion to cover short-term liabilities.

2021: 6,698,388,000
In 2021, the working capital was lower to 6,698,388,000, indicating weaker position than in 2022.

2020: 5,719,444,000

In 2020, the working capital was decreased to 5,719,444,000, like 2021.

Cash Ratio:

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash

equivalents. Here's how to interpret these numbers:

2022: 0.37

In 2022, the cash ratio is 0.37, which means the company had 0.37 in cash and cash equivalents for

every 1 in current liabilities. This suggests a lower cash position compared to the previous two years.

2021: 0.55

In 2021, the cash ratio was 0.55, indicating a stronger cash position than in 2022.

2020: 0.14

In 2020, the cash ratio was 0.14, which was the lowest among the three years, indicating a weaker

cash position.

RATIOS FORMULA CALCULATIONS

2022 2021 2020

Inventory COGS/ Average

3.4453 3.7947 4.2541
Turnover Inventory

Credit Purchases /
AP Turnover 3.4055 1.6510 1.9530
Average AP
 Credit Sales/ Average
AR Turnover 8.5264 7.8413 7.8802
AR

Inventory Turnover Ratio:

2022: 3.4453

In 2022, the company had an Inventory Turnover Ratio of 3.4453. This means that, on average, the

company sold and replaced its inventory approximately 3.45 times during the year. A higher inventory

turnover ratio generally indicates more efficient inventory management, as it implies that inventory is

being sold more quickly.

2021: 3.7947

In 2021, the Inventory Turnover Ratio was 3.7947, which means that, on average, the company turned

over its inventory approximately 3.79 times during the year. The ratio in 2021 was slightly higher than

in 2022, indicating even more efficient inventory management that year.

2020: 4.2541

In 2020, the Inventory Turnover Ratio was 4.2541, suggesting that, on average, the company sold and

replaced its inventory approximately 4.25 times during the year. This ratio was the highest among the

three years, indicating very efficient inventory management in 2020.

Accounts Payable (AP) Turnover:

AP turnover measures how quickly a company pays its suppliers. A higher turnover is generally better,

as it suggests the company is managing its payables more efficiently. Here's how to interpret these

numbers:

2022: 3.4055

In 2022, the AP turnover is 3.4055, indicating that the company paid its suppliers approximately 3.40

times during the year. This suggests improved efficiency in managing payables compared to the

previous years.

2021: 1.6510

In 2021, the AP turnover was 1.6510, which is significantly lower, indicating slower payment to

suppliers.

2020: 1.9530

In 2020, the AP turnover was 1.9530, still relatively low but slightly better than in 2021.

Accounts Receivable (AR) Turnover:

2022:8.5264

In 2022, the company had a Receivable Turnover ratio of 8.5264, which means that, on average, it

collected payments from its customers approximately 8.53 times during the year. This suggests that

the company was efficient in collecting payments from its customers in 2022.

2021:7.8413

In 2021, the Receivable Turnover ratio was 7.8413, indicating that, on average, the company collected

payments approximately 7.84 times during the year. The ratio in 2021 was slightly lower than in 2022

but still reflects efficient accounts receivable management.

2020:7.8802
In 2020, the Receivable Turnover ratio was 7.8802, suggesting that, on average, the company

collected payments approximately 7.88 times during the year. The ratio in 2020 was similar to that of

2021.

RATIOS Formula CALCULATIONS

2022 2021 2020

Total Debt to Total Debt/( Debt+ Shareholders

0.45 0.34 0.55
Capital Equity)

Total Debt to Equity Total Debt/ Total

1.2692 0.8669 0.8588
Capital Shareholders’ Equity

Long term Debt to Long Term Debt/ Total

0.5036 0.4044 0.3752
Equity Capital Shareholders’ Equity

Short term Debt to Short Term Debt/ Total

0.14 0.55 0.43
Equity Capital Shareholders’ Equity

Interest Coverage
EBIT/ Interest Expense 3.45 3.12 2.87
Ratio

Interpretations:

Total Debt to Total Capital:

This ratio measures the proportion of a company's capital structure that is funded by debt. Here's how

to interpret these numbers:

2022: 0.45

In 2022, the Total Debt to Total Capital ratio is 0.45, indicating that 45% of the company's capital is

funded by debt, while the remaining 55% comes from shareholders' equity. This suggests a moderate

level of leverage.

2021: 0.34

In 2021, the ratio was 0.34, lower than 2022.

2020: 0.55

In 2020, the ratio was 0.55, indicating a slightly higher level of debt in the capital structure compared

to the other two years.

Debt to Equity Ratio:

2022: 1.2692

In 2022, the company had a Debt to Equity ratio of 1.2692, which means that for every $1 of equity,

the company had $1.2692 of debt. This suggests that the company relied heavily on debt financing in

2022, with a relatively high level of financial leverage.

2021: 0.8669

In 2021, the Debt to Equity ratio was 0.8669, indicating that for every $1 of equity, the company had

$0.8669 of debt. Compared to 2022, the company reduced its reliance on debt financing in 2021. This

could be a sign of improved financial stability or a more conservative approach to financing.

2020: 0.8588
In 2020, the Debt to Equity ratio was 0.8588, which means that for every $1 of equity, the company

had $0.8588 of debt. This ratio was slightly lower than in 2021, suggesting that the company's

reliance on debt was relatively consistent between 2020 and 2021.

Long-term Debt to Equity Capital:

2022: 0.5036

In 2022, the company had a Long-term Debt to Capital ratio of 0.5036, which means that

approximately 50.36% of the company's capital structure was comprised of long-term debt. This

indicates that the company relied relatively heavily on debt to finance its operations or growth

initiatives in that year.

2021: 0.4044

In 2021, the company's Long-term Debt to Capital ratio was 0.4044, which suggests that around

40.44% of its capital was attributed to long-term debt. Compared to 2022, the company reduced its

reliance on debt financing, which may indicate a more conservative financial strategy or improved

financial stability.

2020: 0.3752

In 2020, the Long-term Debt to Capital ratio was 0.3752, indicating that approximately 37.52% of the

company's capital was from long-term debt. This ratio was lower than both 2022 and 2021, suggesting

that the company had an even lower reliance on debt financing in 2020.

Short-term Debt to Equity Capital:

This ratio specifically considers short-term debt in relation to shareholders' equity. Here's how to

interpret these numbers.

2022: 0.14
 In 2022, the Short-term Debt to Equity Capital ratio is 0.14, indicating that only 41% of the

company's capital structure is short-term debt relative to equity. This suggests a low short-term debt

exposure.

2021: 0.55

In 2021, the ratio was 0.55, indicating a significantly higher short-term debt exposure compared to

2022.

2020: 0.43

In 2020, the ratio was 0.43, also showing a relatively moderate level of short-term debt compared to

equity.

Interest Coverage Ratio:

2022: 3.45

2021: 3.12

2020: 2.87

Interpretation:

It seems that the company's ability to cover its interest expenses has been improving over the years. In

2022, the ratio was 3.45, which is higher than the previous years of 3.12 in 2021 and 2.87 in 2020.

This indicates that the company's earnings are more than sufficient to cover its interest payments. It's

a positive trend.

RATIOS FORMULA CALCULATIONS

2022 2021 2020

Gross Profit Margin (Revenue - COGS) / Revenue 45.4052 48.0188 49.2555

Operating Profit Margin Operating Profit / Revenue 13.0049 13.352 17.4726

Net Profit Margin Net Profit / Revenue 9.7805 19.3266 14.4448

Net Profit / Average Total

7.0986 12.3586 9.9752
Return on Assets Assets

Net Sales / Average Total

0.7011 0.6286 0.6828
Total Asset Turnover Assets

Interpretations:

Gross Profit Margin:

2022: 45.4052%

In 2022, the company's Gross Margin was 45.4052%. This means that for every dollar of revenue

generated in 2022, the company retained $0.4541 after covering the cost of goods sold. The Gross

Margin decreased compared to the previous years, which could indicate that the company's

profitability decreased, possibly due to factors such as higher production costs or competitive

pressures.
2021: 48.0188%

In 2021, the company had a Gross Margin of 48.0188%, indicating that it retained $0.4802 for every

dollar of revenue after accounting for the cost of goods sold. This Gross Margin was slightly higher

than in 2022.

2020: 49.2555%

In 2020, the Gross Margin was 49.2555%, which means that the company retained $0.4926 for every

dollar of revenue after deducting the cost of goods sold. The Gross Margin in 2020 was the highest

among the three years.

Operating Profit Margin:

2022: 13.0049%

In 2022, the company's Operating Margin was 13.0049%, which means that for every dollar of

revenue generated, the company retained approximately $0.13 as operating income after covering all

operating expenses. Compared to the previous years, the Operating Margin decreased slightly in 2022,

indicating a slightly lower efficiency in generating operating profits.

2021: 13.352%

In 2021, the Operating Margin was 13.352%, indicating that the company retained about $0.1335 for

every dollar of revenue after operating expenses. The Operating Margin in 2021 was relatively stable

compared to 2020.

2020: 17.4726%

In 2020, the company's Operating Margin was 17.4726%, which means that it retained approximately

$0.1747 of each dollar of revenue as operating income. The Operating Margin in 2020 was higher

compared to the subsequent years.

Net Profit Margin:

2022: 9.7805%

In 2022, the company's Net Profit Margin was 9.7805%, indicating that for every dollar of revenue

generated, the company retained approximately $0.0978 as net profit after deducting all expenses.

Compared to the previous years, the Net Profit Margin decreased in 2022, suggesting that the

company's profitability declined.

2021: 19.3266%

In 2021, the Net Profit Margin was 19.3266%, indicating that the company retained about $0.1933 for

every dollar of revenue as net profit after all expenses. The Net Profit Margin in 2021 was higher

compared to 2020, indicating improved profitability in that year.

2020: 14.4448%

In 2020, the Net Profit Margin was 14.4448%, which means that the company retained approximately

$0.1444 of each dollar of revenue as net profit. The Net Profit Margin in 2020 was lower than in 2021

but higher than in 2022.

Return on Assets (ROA):

2022: 7.0986%

In 2022, the company achieved an ROA of 7.0986%. This means that the company generated a return

of 7.10% on its total assets in that year. An ROA of 7.10% suggests that the company was able to

generate profits effectively relative to its asset base in 2022.

2021:12.3586%

In 2021, the ROA was 12.3586%, indicating that the company generated a return of 12.36% on its

total assets in that year. The ROA in 2021 was higher than in 2022, suggesting that the company was

more profitable in terms of asset utilization in 2021.

2020: 9.9752%
In 2020, the ROA was 9.9752%, meaning that the company achieved a return of 9.98% on its total

assets in that year. The ROA in 2020 was between the ROAs of 2021 and 2022.

Total Asset Turnover:

2022: 0.7011

In 2022, the company had an Asset Turnover ratio of 0.7011. This means that for every dollar of

assets the company had on its balance sheet, it generated $0.7011 in revenue. A higher Asset Turnover

ratio is generally considered more favorable, as it indicates that the company is efficiently using its

assets to generate revenue. In 2022, the company improved its asset turnover compared to the

previous years.

2021: 0.6286

In 2021, the Asset Turnover ratio was 0.6286, which suggests that for every dollar of assets, the

company generated $0.6286 in revenue. This ratio was slightly lower than in 2022, indicating that the

company's asset efficiency improved in 2022 compared to 2021.

2020: 0.6828

In 2020, the Asset Turnover ratio was 0.6828, indicating that for every dollar of assets, the company

generated $0.6828 in revenue. This ratio was between the ratios of 2022 and 2021.

Horizontal and Vertical Analysis:

Interpretation:

Horizontal analysis usually examines many reporting periods, while vertical analysis typically focuses

on one reporting period. Horizontal analysis can help you compare a company's current financial

status to its past status, while vertical analysis can help you compare one company's financial status to

another's.
Chapter 4: Conclusion

My Internship in Soneri bank was a very valuable experience for me………...