Bank Introduction

Soneri bank Limited is engaged in banking service, and operate more than 216+ branches

including Islamic Banking Branches in Pakistan. The bank operates in four segment corporate

finance, trading and sales, retail banking and commercial banking.

Corporate finance includes syndicated financing and services provided in connection with

mergers and acquisitions, underwriting, privatization, securitizations, debt, equity, syndication,

Initial public offers (IPO) and secondary private placement. Trading and sale segment includes

fixed income, equity, foreign exchange, commodities, credit, funding, own position securities,

brokerage debt and prime brokerage. Retail banking segment includes retail lending and deposit,

banking services, private lending and deposit, trust and estates investment advice and merchant/

commercial/ corporate cards. Commercial banking includes project finance, real estate, export

finance, trade finance, factoring and leasing. The essence of the banks business philosophy is to

cater to the banking requirements of small & medium sized entrepreneurs, providing them

qualitative & competitive services with emphasis on encouraging exports. Nearly forty percent of

our credit portfolio is related to export financing and credit decisions are taken within 48 hours.

History of Soneri Bank Limited

Directors from international financial institution to open the market and involve the private sector

in the economy of the country got the leading investors from private sector and one of them was

the Rupali Group. This group belongs to Feerasta Family. This group started its business

before 1971 partition of East Pakistan and come to West Pakistan after 1971.

SONERI BANK LTD was incorporated on 28th September 1991, the first branch in Lahore was

opened in 16th April 1992 and second branch in Karachi came into business on 9th May 1992.

The head office is in Lahore and the central office is in Karachi.

The authorized and subscription capital is Rs.300 million Out of which Rs.150 was million was

distributed by Feerasta Family and Rs.150 million worth share was offer to general public.

There was over subscription of 28 times more than the number of shares offer for subscription

and the over subscription NRPs was 3 times more. The bank currently operates 216 branches,

spread all over Pakistan including the Northern Areas of the country. The banks expansion

policy is based on the principle of maintaining a balance between the urban and rural areas. This

created its own challenges and opportunities, and forced them to evolve an outward-looking

strategy in terms of their market emphasis.

As a result, Soneri Bank developed a geographically diversified assets base instead of a

concentrated and heavy reliance on business in the major commercial centers of Karachi and

Lahore, where most other banks have their operational Head Offices. Pleasant and sophisticated

atmosphere has been provided in the branches which are fully air conditioned and computerized.

The bank after eight months of functioning published its first Balance Sheet as on 31st December,

1992 responding with great satisfaction to the confidence reposed in it by its shareholders.

Among the new banks, Soneri is a front runner and continuous to make rapid strides in respect of

deposits. The bank is now in the process of consolidation with care and caution and steady

growth on sound footings with best possible services for its customers as the guiding principles.

The Rupali Group has an investment of more than Rs.10 billion in industrial sector other than

SONERI BANK LTD.

VISION STATEMENT

To provide quality services to its customers through adoption of best practices and full

exploitation of I.T advancement, culminating at a leading position amongst its peer banks

Stronger banking relationships, increasing customer confidence

MISSION STATEMENT

To develop Soneri Bank Limited into an aggressive and dynamic financial institution having the

capabilities to provide personalized service to the customers with cutting edge technology and a

wide range of products, and during the process to ensure maximum return on assets with ultimate

goals of serving the economy and society.

We have more time for you

Values

We cannot successfully achieve our goals even if we have all the resources and instruments at our

disposal unless we change our values and attitudes.

The values which each staff member should inculcate and practice are:

Personal and professional integrity of highest standards.

Trust and sense of responsibility

Team work, collaboration and open communication.

Honest and candidate feedback.

Serving the clients with courtesy, respect and competence.

Principles for Achieving Goals

Soneri Bank has defined the following principles for achieving goals which are set by the board

of Directors for the smooth running of the affairs of the Bank.

These principles are as follows:

Fully aware of the role, responsibilities, roles, regulations and procedure of the

organization.

Courteous, Quality and efficient services to the services.

Knowledge about the product.

Ensure that the time and effects are applied in the most judicious and productive manner.

Seeking guidance in serious and complex issue.

Maintain complete secrecy of the bank and the customer.

Insure complete adherence to the bank standard code of conduct.

The board would like to record its appreciation for loyalty, devotion and hard work of the

officers and staff of the bank at all level.

Product and Services

Soneri Bank offers a diverse range of products & services to cater to the growing banking needs

of our customers. Our brand promise Roshan Har Qadam manifests our commitment to

constantly innovate our product suite for the best match of personal & business needs of our

customers, including Commercial, Retail & Corporate segments.

With our Corporate Vision, to better serve customers to help them and the society grow and our

Mission to provide innovative and efficient financial solutions to our customers, we integrate

with our valuable customers to provide them convenient and hassle-free product solutions.

Empowered by an ever-growing network of branches and ATMs, we strive to become the bank of

choice for our existing and potential customers.

Retail Banking

Current Account

Customers can open any Current Account for their day-to-day banking needs and enjoy the

convenience of Banking offered via 246 online branches and a growing ATM network of 263

machines across the country.

Our popular Rupee Current Accounts include:

Soneri Ikhtiar Business Account

Soneri Ikhtiar Current Account is our flagship current account for businesses providing efficient,

accessible and convenient banking transactions. Soneri Ikhtiar Business Account gives numerous

free facilities without maintaining any average balance requirement, including free issuance of

Bankers Cheques, free online banking, free Cheque books, free VISA Debit Classic Card, and

much more, to help your business grow without paying for the Banking Services. In addition,

Soneri Ikhtiar Account comes with free worldwide accidental insurance cover and ATM

withdrawal coverage to help protect your loved ones by keeping their future secure.

Savings Accounts

Soneri Bank offers a variety of Savings products for salaried persons or those who have a fixed

regular income to encourage savings. We also have Savings Accounts for senior citizens and

pensioners.

Some of our Savings products include:

PLS Savings Account

PLS Savings Account is a basic deposit account with no minimum balance requirement. This

account may be opened with an initial deposit of PKR 100 only. We offer Alternate Delivery

Channel Services on these accounts, including VISA Debit Card and Soneri Direct Internet

Banking.

Soneri Savings Account

Soneri Savings Account is a flexible and fast growing cumulative profit account. The rate of

profit on this account increases with your balance without any demand and negotiations with the

Bank. Soneri Savings Account has no minimum balance requirement. As with the PLS Savings

Account, this account may also be opened with an initial deposit of PKR 100 only. Alternate

Delivery Channel Services on this account includes VISA Debit Card and Soneri Direct Internet

Banking.

Term Deposit Accounts

Term Deposits

Soneri Term Deposits are for customers who intend to retain their savings for a fixed period and

earn a higher rate of profit. Term Deposits allow customers to save a fixed amount in Rupees for

a set period ranging from 1 month to 3 years at attractive profit rates. The depositor has the option

to reinvest the deposit automatically with or without profit.

Diamond Deposits (Monthly Income Scheme)

Soneri Diamond Deposits provide investment opportunities to investors looking for additional

monthly income with an attractive return. With terms from 1 year to 3 years, investors earn a

monthly profit credited to an associated Current Account for easy withdrawal and use through the

VISA Debit Card and over 263 Soneri Bank ATMs across Pakistan.

Agriculture Financing

Soneri Bank offers various Agriculture Finance Schemes for the farming and rural community

that help them advance their agricultural operations, both for Production & Development. The

following Agri product suite is available to meet the needs of our customers:

Soneri Revolving Credit Scheme

Soneri Farm Mechanizing Support Financing Scheme

Soneri Tractor Financing Scheme

Soneri Aabiari/Tube well (Water Management) Financing Scheme

Soneri Live-Stock Development Financing Scheme

Soneri Land Development (Islah-e-Arazi) Financing Scheme

Soneri Go-Down, Silos, Cold Storage, etc. Construction Financing Scheme

SME Finance

Soneri Bank Ltd. is at the forefront of commercial excellence, and has strengthened its portfolio

by introducing small and medium enterprises (SMEs) financing options to its most discerning

customers. The market segment for this business is primarily SMEs and the bank stands

committed to contribute in the process of national development, with a strong focus in providing

quality financial solutions and cash flow based financing in order to make the SME financing a

success in the country.

Basic Banking Account

Soneri Bank Limited introduced Basic Banking Account Scheme on July 01, 2006.

The salient features of the Scheme include;

Basic Banking Accounts may be opened in the Pak Rupees by individuals including

minors under guardianship

The accounts may be opened by initial deposit of any amount

No minimum balance requirement is applicable

Basic Banking Account is non-profit bearing account

4 withdrawals from a Basic Banking Account through cheques in one calendar month are

free of service charges. Additional withdrawals through cheques in a calendar of month

shall be subject to service charge @ Rs.25/- per additional cheque

Soneri Banking Cards for the use of Banks Electronic Banking Service are issued

without charges for one time issuance of the cards

Unrestricted number of withdrawals from the account through ATMs are permissible

subject to applicable per day withdrawal limit for amounts in force

Cash withdrawals from Soneri Banks ATMs are free of Service Charge. Use of another

banks ATM shall be subject to Service Charges applicable

Basic Banking Account holders may also use Soneri Banks other Electronic Banking

Services subject to completion of applicable formalities which shall be subject to

applicable Service Charges

Account having -NIL- balances for six consecutive months shall be closed without prior

intimation

Statement of Accounts are provided once a calendar year at the year end

Individuals who already maintain PLS Saving Accounts/ Current Accounts with Soneri

Banks branches may convert their accounts into Basic Banking Account. Please contact

any Soneri Bank branch for further details

Withholding Tax applies on all cash withdrawals.

Online Banking

Online Banking Services are available for all chequing account holders of Soneri Bank.

Services

Cash Payments of cheques drawn on any of our all branches

Cash Deposits into customers accounts maintained at any of our all branches

Government Taxes/Duties

Cash Cheques or Cheques Applicable Government Taxes/duties

Under Collection if payable recoverable as per rules to third parties

Cash Deposit

Deposits made by third parties into accounts of customers maintained at all branches are

subject to recovery of applicable withholding tax, as per rules from the depositors

Cheques under Collection

Proceed of Cheques drawn on our all branches are immediately credited to depositors account

subject to fulfillment of other conditions governing payment of cheques

Govt. Taxes as per rules are recoverable on outstation collection cheques

Lockers Service

Customized lockers as per the requirements of applicants are available at our designated

branches. The lockers may be operated during the banking hours of the branch.

Consumer Finance

Soneri Car Finance

Now you can become the owner of a brand new car through Soneri Car Finance Scheme. Soneri

Bank Limited offers Car Finance facility up to Rs.2,000,000/-, repayable in 5 years in equal

monthly installments. To fulfill your need, please contact your nearest branch of Soneri Bank

Limited or call 111-567-890 for application assistance.

Soneri Personal Finance

An easy solution to your cash needs now you can turn your dreams into reality via Soneri

Personal Finance Scheme. Soneri Bank Limited offers Personal Finance up to Rs.500,000/-,

repayable in 5 years in equal monthly installments. Finance is available to meet your personal

financial needs. To fulfill your needs, please contact your nearest branch of Soneri Bank Limited

or call 111-567-890 for application assistance.

Electronic Banking

ATM / Visa Debit Card

Soneri VISA Debit Card brings you a hassle-free experience of spending and making payments

countrywide. As a Soneri VISA Classic Card and VISA Gold Card holder you can avail

unmatched opportunities and benefits.

Phone Banking

You can conduct your banking from anywhere and at any time you want.

Dial 111 SONERI (111-766374) to reach our Customer Services Call Center.

With Phone Banking, you can access all the information you need without having to make a trip

to the branch. At home, at work or on the go, all you need is a touch-tone telephone, your card

number and the T-PIN to access your bank account, 24 hours a day, 7 days a week.

Mobile Banking

Soneri Bank customers can avail the Soneri Mobile Banking services and access their account

anytime and anywhere via their mobile phones. As a Soneri Bank customer you can view your

account statements, perform funds transfer, get mobile top-ups and also pay your utility bills

while sitting in the comfort of your homes and offices.

Utility Bills Payments

Soneri Bank VISA Debit Card holders can pay their bills using Soneri Bank Internet Banking,

Call Centre and ATM Services.

No need to stand in a bank queue

No need to carry cash

Easy way of paying bills for you and your dear ones

Bills once paid are automatically registered in our system

24 hours a day, 7 days a week service from anywhere across Pakistan or worldwide

Available Services

Service is currently available for payment of:

KESC, LESCO, GEPCO, HESCO

SNGPL, SSGC

Warid, Ufone, Telenor, Zong (Prepaid and Postpaid), PTCL Normal Land

Line, PTCL Defaulter Corporate, EVO Postpaid, EVO Prepaid, PTCL

VFONE

Utility Bills Payments through Internet Banking;

Log on to soneribankonline.com.pk or simply click on the Soneri Direct logo

available on our website

Enter Username and Password for Soneri Direct

Click on Bill Payment option

Select Billing type: Telephone/Electricity/Gas

Select the Company, enter consumer number or mobile number

Enter four digit F-PIN (generate your F-PIN before any transaction for the

security purpose)

Confirm your transaction

Confirmation SMS and email would be sent on your registered* Mobile

Number and Email address

Easy Steps for Utility Bills Payments through Call Centre

Call 111-766-374 from the same number available in our records

Enter your Soneri Visa Debit Card number. and T-PIN for the validation

purpose

Press 0 to talk to the Phone Banking Officer

Ask Phone Banking officer to pay your desired Utility Bills

Confirmation SMS would be sent on your registered* mobile number

Easy Steps for Utility Bills Payments through ATMs

Insert your Soneri Visa Debit Card in any Soneri ATM

Enter your ATM PIN code

Select Smart Option Utility Bill Payment

Select Utility Company, and enter consumer number or mobile number

Confirm your transaction

Get a transaction receipt and Confirmation SMS on your registered* mobile

number

Internet Banking

Soneri Direct Internet Banking provides our customers a hassle-free, simple and secure platform

to operate their bank account from the internet 24/7 from anywhere in the world. Customers can

access their Soneri Banking account anytime, print account statements, pay utility bills, transfer

funds and view the history of their Soneri Internet Banking activities with a single click from

their computers.

ATM Withdrawal Coverage - Tahaffuz

Soneri Tahaffuz ATM Withdrawal Coverage is a product that covers you in the event of loss of

cash resulting from armed hold-up or forced deprivation on withdrawals from any 1-Link/Mnet

ATMs in Pakistan. The coverage is available for both conventional and Islamic account holders.

SMS Alert

Soneri Bank offers SMS Alert Service to all of its customers, in order to make them feel secure

and in control of their spending. The alerts are instant and keep customers updated about their

account transactions.

Bancassurance

Soneri Bank offers numerous coverage products to protect customers and their dear ones. Benefit

from an array of Bancassurance products to match your specific needs, ranging from your

childrens education plans to business protection plans:

Soneri Saver Plan

Roshan Takmeel Plan

Roshan Aghaz

Karobar Muhafiz Product

Soneri Sahara Account

Soneri Bank offers a Savings account for its senior account holders so they may retire with a

smile. Soneri Sahara Account calculates the profit on the monthly average balances and the profit

is credited to the account on the first working day of the following month. We provide the VISA

Debit Classic Card and the first Cheque book of 25 leaves for free to our Soneri Sahara Account

holders.

Corporate Banking

Soneri Bank provides a one-window approach to its valued corporate customers for their

Working Capital, Project Finance, Trade Structuring and Investment Banking needs through our

dedicated Relationship Managers and Branch Channels in a seamless manner.

Soneri Islamic Banking

Soneri Islamic Banking segment Soneri Mustaqeem offers a broad range of 100% Shariah-

Compliant financial solutions.

Financing Products;

Murabaha

Ijara

Salam

Diminishing Musharaka

Trade Finance

Deposit Products;

Soneri Aasaan Business Account

Soneri Bachat Savings Account

Soneri Munafa Savings Account

Soneri Meaadi Term Deposit

Soneri Jari Current Account (Local and Foreign Currency)

Home Remittances

Soneri Bank introduces Soneri Mehnat Wasool, the Home Remittance Service. The service

provides customers the convenience of collecting their remittances sent from abroad from any of

Soneri Banks 246 Branches in 105 cities across Pakistan. Initially launched with MoneyGram as

one of the international money transfer partners, Soneri Bank has signed-up with RIA Financial

Services (RIA Money Transfer), Wall Street Finance Canada Ltd., Al Falah Exchange & Golden

Money Transfer under PRI to facilitate its customers.

Foreign Currency Deposit Accounts

Soneri Bank also offers Foreign Currency Current, Savings & Term Deposit Accounts to cater to

the foreign currency transactional needs of our customers.

Financing Products

In addition to our conventional financing products, including Running Finance, Cash Finance,

Finance against Imported Merchandise (FIM) and Finance Against Trust Receipts (FATR), the

Bank also offers following specific financing products to help the customers grow their business

without worrying about funding requirement.

Soneri Speed Finance

In line with our brand promise of Roshan Har Qadam, we have introduced Soneri Speed

Finance which is one of the latest additions to our suite of financing products. It has been

designed to provide hassle-free and quick financing solutions to meet both the short and long

term financing needs of Consumers, Small & Medium Enterprises, Commercial and Retail

businesses. This product allows the customers to avail various financing facilities which are best

suited to meet their particular need(s) enabling them to grow and prosper.

Cash Management

SBLs Cash Management Channel Soneri Trans@act, provides our valued customers with a

comprehensive, end-to-end cash flow management, i.e Receivables and Payables Management, in

the most effective and efficient manner.

Our CM service, comprises of a full array of products & services, designed and tailored to enable

Corporate, Commercial and SME customers to securely exchange funds and financial information

in real-time with their trading partners, for the optimal management of working capital.

Departments

Cash Department

In this department has daily cash reconciliation of cash balance with their ledger system. The

transactions occur in the cash department are of two types:

Cash deposits

Cash withdrawals

Account Department

Accounts department of the bank maintains the balances of various accounts for every

transaction. A voucher is to be prepared, and accounts department ensure its authenticity. Daily

the voucher is summarized transaction wise and consolidated.

Account department deal with the followings;

Record keeping

Dealing with expenditure of bank

Preparation Different types of reports for State Bank

Deprecation calculation of assert

Accounts Opening & Closing

Maintaining statistics of all report prepared

Daily position of cash & every account

Budgeting

Matching daily summaries of all departments with ledger

Remittance Department

In which department the bank often are engaged in transferring funds from one place to another.

The main functions of this department are:

Mail Transfer (MT)

Payment Order (PO)

Telegraphic Transfer (TT)

Demand Draft (DD)

Clearing Department

A clearing department is an organization of the member banks, working under Soneri Bank and

which is for the purposes of setting inter banks claim resulting from transmission of funds from

one bank to another bank. The branch cheque/instruments are credited in to the account of the

customer.

To accept Transfer, collection cheque, Transfer delivery and clearing cheuqe from the

customers of the branch and to arrange for their collection.

To arrange the payment of cheque drawn on the branch and given for collection to any

other branch on SBL or any other member banks or sub member of the local clearing

house.

To collect amount of cheque drawn on bank members, sub-member of local clearing

house, sent for collection by SBL Branches, not represented at the local clearing house.

Establishment Department

This department mainly deals with the branch employees.

Following are the Main functions of this department are;

Employees bonuses benefit etc.

Employees salaries distribution

Keeps the record of attendance of employees

Environment of Bank

Enhance marketing strategy

Customer confidence enhancement

Credit Department

Soneri bank limited is conducting its business and helping its customers and the public in their

business is involved in loans and giving advancing. The credit department has the duties of

issuance of short and long term loans to customers. A bank is a profit seeking institution. It

attracts surplus balance from the customers at low rate and makes advances at high rate of

interest.

Account Opening Department

Following are the operations policies and processes of account opening;

An application on prescribed form is given by customer

Nadra verification is obtained

Copy of CNIC

Specimen signature card / S.S card

Signatures are verified

KYC (know your customer) profile is completed

Account is opened in system and account number is allotted to customer

Cheque book charges are recovered

If customer requires ATM Card / Visa Debit Card are issued after completing application

from customer and approval of Central Office Karachi

Trade Department

Last department which was served is Trade (Letter of Credit and Import etc.), Letter of Credit is a

document which is used in Import and export.

Two types of Letter of Credit;

Letter of Credit sight

Letter of Credit usance

For opening a Letter of Credit customer is asked for Performa Invoice or Indent, Insurance

Covering Letter, Bill of Lading & I-form.

IT Department Responsibilities

In those days IT department is consider a brain of any organization because the IT department

provides the service 24/7 to ensure that everything is running smoothly and the banking system

are not expose to outside the world.

IT department perform the following responsibilities in bank;

All communication throughout the branches and data center.

Monitoring the existing application running inside the organization.

Monitoring critical Applications.

Provides the service to operation department.

Monitored networks and other connected medium.

Security of existing and new application

Security of networks and critical in house security issues.

IT Department Structure

IT Deprment

Networks and communicaion

Service Management

Relationship Management

Security Risk

Techincal Support

Networks and Communication

Networks and communication is sub department of IT department and the department is

responsible to managing existing data networks, managing the voice networks managing the facts

network e.g; internet, intranet, extranet and LAN, MAN, WAN, and topologies and all other

medium of communication like telephone, cellphone, fax, conference calls, instant messaging.

Service Management

The department is responsible for providing the service to the new as well as existing customer

and this department. Try to deliver best reliable services to the customer like; online banking,

online bills payments, funds transfer, e-statement, mobile bills payments and recharge etc.

This department is responsible to monitoring the critical application to avoids any financial loss

and for the betterment of employees working.

Relationship Management

This department provide the service enhance the relation of customer with the bank and provide

the service like; birthday gifts, wedding wishes, balance alerts inquiry, information about new

products and service and create the link with the customer up to the time.

Security and Risk

This department provides the service to secure all the system of the organization. This department

is also responsible inside and outside security problems and the security is manage with the help

of CC Tv cameras and firewalls for network.

Technical Support System

If bank faced any problem in software and hardware then that department provides the service. If

the problem of software solve the online. If any other problem in software and hardware then the

technical person visits the branch.

Internet and its Types

What is internet?

A global computers networks providing a variety of information and communication facilities,

consisting of interconnected networks using standardized communication protocols.

The Internet is a global network of networks.

What are Intranets?

The term Intranet is derived from two words; Intra which means within and net which means

group of interconnected computers. It is a private computer network that uses Internet protocols

and network connectivity to securely share any part of organization information or with its

employees. In short, an intranet is private network. e.g Faculty portal. Only employees who are

issued passwords and access codes are able to use them. Firewalls protect intranets from

unauthorized outside access.

Advantages

Fast, easy, low-cost to implement.

Connectivity with other systems and access.

Easy to learn and use.

Access to internal and external information.

Improves communication within the organization.

Disadvantages

Inappropriate and incorrect information can be posted on an Intranet which can reduce its

credibility and effectiveness.

There is a freedom to post abusive and possibly illegal material.

Training is required to educate people of what intranet can do.

Security of Intranet becomes an issue.

Need expertise in field to administer and develop Intranet information within the

organization.

What is Extranet?

An extranet implies an extended intranet, which uses IP protocol networks (like the Internet) to

link intranets in different locations. Extranet is somewhere between Internet and Intranet. It also

uses firewalls, but it allows only selected outsiders, such as business partners, suppliers, and

customers, to access the companys Web site.

Types of Extranet

Public Network Extranet

It exists when an organization allows the public to access its intranet from any public network.

Security is an issue in this configuration, because a public network does not provide any security

protection.

Private Network Extranet

Is a private, leased-line connection bet? Two companies that physically connects their intranet to

each other. The single advantage of this is Security. The single largest drawback is Cost.

Advantages

Improved quality.

Lower travel costs.

Reduction in paperwork.

Delivery of accurate information on time.

Improved customer service.

Better communication.

Overall improvement in business effectiveness.

Disadvantages

The suppliers & customer who dont have technical knowledge feel problem.

Faceless contact.

Information can be misused by other competitors.

Fraud may be possible.

Technical Employees are required.

Differentiation among Three Networks

Intranet is shared content accessed by members within a single organization.

Extranet is shared content accessed by groups through cross-enterprise boundaries.

Internet is global communication accessed through the Web.

Firewall

A firewall is a network security system, either hardware or software based, that controls incoming

and outgoing network traffic based on a set of rules.

Firewalls can protect against some problems (viruses and attacks) that come from the

internet. They cannot protect against viruses that come from infected media (like an

infected office document on an USB flash drive).

A firewall is a software program or piece of hardware that screen out the viruses and

hackers.

At their most basic, firewalls work like a filter between your computer/network and the

Internet.

Packet Filter

Packet filter also referred to as static packet filtering. Controlling access to a network by

analyzing the incoming and outgoing packets and letting they pass or halting them based

on the IP addresses of the source and destination. Packet filtering is one technique,

among many, for implementing security firewalls.

Proxy Server

In computer networks, a proxy server is a server (a computer system or an application)

that acts as an intermediary for requests from clients seeking resources from other

servers. A client connects to the proxy server, requesting some service, such as a file,

connection, web page, or other resource available from a different server and the proxy

server evaluates the request as a way to simplify and control its complexity. Proxies were

invented to add structure and encapsulation to distributed systems. Today, most proxies

are web proxies, facilitating access to content on the World Wide Web and providing

anonymity.

A firewall is used to protect your PC against hackers and other malicious connections. It'll block

any inbound connections that look like hackers or a malicious program.

What is Network and its Types?

Network is what?

A group of interconnected (via cable and/or wireless) computers and peripherals that is

capable of sharing software and hardware resources between many users.

A group of two or more computer and other devices connected together for exchange of

information is called a computer network.

Types of Network

LAN (Local Area Network)

A group of connected computers in a small geographical area under some is controlling entity.

These networks connect the computers within a building like from one room to another, one floor

to other floor. It is being used in a city level.

Characteristics

Following are some important characteristics of LAN:

Highest speed networks due to smallest networks covered area.

Data transmission speed is measured in megabytes.

Proposed area or distance is up to 1 kilometer.

Also known as Local Net.

Different network topologies can be used like bus topology, ring or star topology but star

is the proposed topology.

Easy to installation.

Easy to maintain.

Easy to un-installation.

Fewer data transmission errors occur than MAN and WAN due to smaller distance

transmission.

Examples

Home based networks.

Connect different classrooms/labs in a college or in university.

Connect different offices or campuses etc.

WAN (Wide Area Network)

A group of connected computers in a wide geographical area (great than LANs and MANs) like

cities, countries and even continents under different controlling entities.

These networks connect the computers in different offices of a company situated in or outside the

cities, countries or even continents.

Characteristics

Following are some important characteristics of WAN:

Lowest speed network than LAN and MAN.

Data transmission speed is measured in kilobits.

Its area is not limited but can be spread in millions of kilometers.

Different MANs combines to give a WAN.

Different network topologies can be used like star topology or tree topology but tree and

hybrid topologies are the commonly used topologies.

Any transmission media can be used but optical fiber cables and satellite links are

preferable.

Highest cost network than MAN and WAN.

Very difficult to install than MAN and LAN.

Very difficult to maintain than MAN and LAN.

Very difficult to un-install than MAN and LAN.

Most data transmission errors occur than LAN and MAN due to long distance

transmission.

Examples

Banks uses such networks for their dealings.

Airlines using these networks for their business.

Universities can use them etc.

MAN (Metropolitan Area Network)

Groups of connected computers in a city or from one city to another city having geographical

area more than the LAN and under some controlling entities.

These networks connect the computers in different offices of a company situated in or to

neighboring cities. It is being used in or between cities.

Characteristics

Following are some important characteristics of WAN:

Higher speed networks than WAN but lower speed networks than MAN.

Data transmission speed is measured in kilo bytes.

Proposed area or distance is up to 10 kilometer.

Different network topologies can be used like bus topology, tree topology but tree and

hybrid topologies are the proposed topologies.

Any transmission media can be used but optical fiber cables are preferable.

Lowest cost network than WAN but higher in cost than LAN.

Easier to develop than WAN but difficult than LAN.

Easier to maintain than WAN but difficult than LAN.

More data transmission errors occur than LAN due to long distance transmission.

Examples

Bata and service shoes companies connected their franchises.

Different campuses of universities scattered in different cities of a country. E.g Virtual

University

Connection among different railways booking offices etc.

Local banks their banking operations are within the country.

Computer Network Used by Banks

Banks use metropolitan and wide area network for their dealings because now a day banks

operations are not limited within a city or country banks operations spread across the nations.

Types of Topologies

Topology

Topology refers to the layout of connected devices on a network. Here, some logical layout of

topology

Mesh

Star

Bus

Ring

Tree and Hybrid

Mesh Topology

Here every device has a point to point link to every other device.

Advantages

They use dedicated links so each link can only carry its own data load. So traffic problem

can be avoided.

It is robust. If anyone link get damaged it cannot affect others.

It gives privacy and security.(Message travels along a dedicated link)

Fault identification and fault isolation are easy.

Disadvantages

The sheer bulk of wiring is larger than the available space.

Hardware required to connect each device is highly expensive.

Applications

Telephone Regional office.

WAN. (Wide Area Network).

Star Topology

Here each device has a dedicated point-to-point link to the central controller called Hub (Act as

an Exchange). There is no direct traffic between devices. The transmission is occurred only

through the central hub. When one device wants to send data to another device; first sends the

data to hub which then relays the data to the other connected device.

Advantages

Less expensive then mesh since each device is connected only to the hub.

Installation and configuration are easy.

Less cabling is need then mesh.

Robustness.(if one link fails, only that links is affected. All other links remain active)

Easy to fault identification & to remove parts.

Disadvantages

Even it requires less cabling then mesh when compared with other topologies it still

large. (Ring or bus).

Dependency (whole n/w dependent on one single point (hub). When it goes down. The

whole system is dead.

Applications

Star topology used in Local Area Networks (LANs).

High speed LAN often used STAR.

Bus Topology

A bus topology is multipoint. Here one long cable acts as a backbone to link all the devices. A

device want to communicate with other device on the n/ws sends a broadcast message onto the

wire all other devices see. But only the intended devices accept and process the message.

Advantages

Ease of installation

Less cabling

Disadvantages

Difficult reconfiguration and fault isolation.

Difficult to add new devices.

If any fault in backbone can stops all transmission.

Applications

Most computer LAN

Ring Topology

Here each device has a dedicated connection with two devices on either side. The signal is passed

in one direction from device to device until it reaches the destination and each device have

repeater. When one device received signals instead of intended another device, its repeater then

regenerates the data and passes them along. To add or delete a device requires changing only two

connections.

Advantages

Easy to install.

Easy to reconfigure.

Fault identification is easy.

Disadvantages

Unidirectional traffic.

Break in a single ring can break entire network.

Applications

Ring topologies are found in some office buildings or school campuses. Today high

speed LANs made this topology less popular.

Tree Topology

Alternatively referrers to as a star bus topology. Tree topology is one of the most common

network setups that are similar to a bus topology and a star topology. A tree topology connects

multiple star networks to other star networks.

Hybrid Topology

A network which contains all types of physical structure and connected under a single backbone

channel.

Which topology are the most redundant and the most expensive?

Through Mesh topology, every computer connects to every other computer. No central

connecting device is needed. Since every computer connects to every other computer, it requires

the most cabling, which increases the cost.

Soneri Bank which topology is used and what its advantage and

disadvantage?

List of Hardwares which are used by bank?

Ways of Communication within Branch?

Call Center System of Soneri Bank

Main Software of used by bank cost and its functions?

ATM System

TPs (Transaction Process System)?

A transaction process system is a type of system which collect, store modified and retrieve

transactions of an organization. Transaction is an event that generates and unevenly stored in an

information system with the help of transaction processing monitor. The ascense of a transaction

program is organized with the help of IT department.

Payroll System TPs

Payroll TPs is design to get information and employees record to calculate his/her salary. It get

information about the employees from the employees department and the ledger then it sent to

payroll TPs from where it links that information with previous record and prepare a record which

forward to management.

Customer Identification

Before perform any transaction banks have to verify the CNIC no., signature of customer and its

previous record of transaction.

Employees Record System

All employees are supposed to login when they enter in bank and logout on leaving the bank.

There thumb impression on biometric device which is connected with help of Hub with the

head office.

Security System

What is Banking Information System Audit?

Information system auditing is a systematic process of collecting and evaluating evidence

or information to access whether the information security system:

Safeguards assets effectively

Maintain data integrity

Achieve goals of the organization effectively

An information systems audit is an examination of the management controls within an

Information technology (IT). The evaluation of obtained evidence determines if the

information systems are safeguarding assets, maintaining Data integrity, and operating

effectively to achieve the organization's goals or objectives. These reviews may be

performed in conjunction with a financial statement audit, internal audit, or other form of

attestation engagement.

Information system audits are also known as "automated data processing (ADP) audits"

and "computer audits". They were formerly called "electronic data processing (EDP)

audits.

Nowadays, information systems audit seems almost synonymous with information security

control testing.

Information system Audit is a process in which an auditor would collect the original paper

statements and receipts, manually perform the calculations used to create each report, and

compare the results of the manual calculation with those generated by the computer. In the

early days, accountants would often find programming errors, and these were computer audit

findings.

However, these exercises also sometimes yielded findings of fraud. Fraud activities ranged

from data entry clerks changing check payees to programmers making deliberate rounding

errors designed to accumulate cash balances in hidden bank accounts. As auditors recognized

repeating patterns of fraud, they recommended a variety of security features designed to

automatically prevent, detect, or recover from theft of assets.

Banking Information System Auditing, also referred to as automated data processing

(ADP) auditing, electronic data processing (EDP) auditing and information technology

(IT) auditing, is primarily an examination of the system controls within an Information

structure architecture -- which is the process of evaluating the suitability and validity of

an organization's IS configurations, practices and operations. Information System

Auditing has been developed to allow the Banks to achieve goals effectively and

efficiently through assessing whether computer systems safeguard assets and maintain

data integrity. To check that in banks the security tools are Available or not the

Personnel of bank Available in bank and they record the day to day transactions and to

check that the all procedures and polices which issued by state bank is applied or not.

According to State Bank of Pakistan

Banks should get their I.T. services audited by internal / third party auditors to ensure that

adequate security and controls are in place. The internal/ third party auditors so engaged should

review the IT related internal controls and evaluate/ validate the effectiveness of control

systems. The risk-based Information system audit should also ensure that the bank systems and

information technology are adequately secured and are meeting the needs of the business. IS

Audit being a continuous process should be carried out as such? In- house audit function

should ensure that follow-up activities and performance of reviews is on regular basis.

Therefore, to ensure that best practices in the field of I.T. Security and Control are adopted and

practiced in the banking industry, the banks are encouraged to establish an independent

internal Information System Audit function for regular monitoring of I.T. organizational setup

and activities. The board and the management should ensure that the independence, authority

and accountability of the Information System Audit function are maintained and established by

appropriate organizational setup in line with the international best practices.

History of Banking Information System Audit

Information System Auditing (IS auditing) began as Electronic Data Process (EDP) Auditing and

developed largely as a result of the rise in technology in accounting systems, the need for IT

control, and the impact of computers on the ability to perform attestation services. The last few

years have been an exciting time in the world of IT auditing as a result of the accounting scandals

and increased regulation. IT auditing has had a relatively short yet rich history when compared to

auditing as a whole and remains an ever changing field.

The introduction of computer technology into accounting systems changed the way data was

stored, retrieved and controlled. It is believed that the first use of a computerized accounting

system was at General Electric in 1954. During the time period of 1954 to the mid-1960s, the

auditing profession was still auditing around the computer. At this time only mainframe

computers were used and few people had the skills and abilities to program computers. This

began to change in the mid-1960s with the introduction of new, smaller and less expensive

machines. This increased the use of computers in businesses and with it came the need for

auditors to become familiar with EDP concepts in business. Along with the increase in computer

use, came the rise of different types of accounting systems. The industry soon realized that they

needed to develop their own software and the first of the Generalized Audit Software (GAS) was

developed. In 1968, the American Institute of Certified Public Accountants (AICPA) had the Big

Eight (now the Big Four) accounting firms including Banks participate in the development of

EDP auditing. The result of this was the release of Auditing & EDP. The book included how to

document EDP audits and examples of how to process internal control reviews.

Around this time EDP auditors formed the Electronic Data Processing Auditors Association

(EDPAA). The goal of the association was to produce guidelines, procedures and standards for

EDP audits. In 1977, the first edition of Control Objectives was published. This publication is

now known as Control Objectives for Information and related Technology (COBIT). COBIT is

the set of generally accepted IT control objectives for IT auditors. In 1994, EDPAA changed its

name to Information Systems Audit and Control Association (ISACA). The period from the late

1960s through today has seen rapid changes in technology from the microcomputer and

networking to the internet and with these changes came some major events that change

information system auditing forever.

Currently, there are many Information system dependent companies that rely on the Information

Technology in order to operate their business e.g. Telecommunication or Banking Company. For

the other types of business, Information system plays the big part of company including the

applying of workflow instead of using the paper request form, using the application control

instead of manual control which is more reliable or implementing the ERP application to facilitate

the organization by using only 1 application. According to these, the importance of Information

system Audit is constantly increased. One of the most important roles of the Information Audit is

to audit over the critical system in order to support the financial audit or to support the specific

regulations announced e.g. SOX.

Benefits of Banking Information System Audit

Improve Bank /Business efficiency.

Improve system and process controls.

Plan for contingencies and disaster recovery.

Manage information & developing systems.

Prepare for the independent audit.

Evaluating the effectiveness and efficiency related to the use of resources.

Reduce risk and enhance system security.

Prevent and detect errors as well as fraud.

Help to used up to date software and Hardware, and for achieving goals of organization.

Providing suggestions for improvement to the management of bank.

Cause to save the bank from Shutting down by detecting fraud earlier.

Computer Viruses, Worms, Trojan Horses

Computer Viruses

A computer virus is "a computer program usually hidden within another seemingly innocuous

program that produces copies of itself and inserts them into other programs or files, and that

usually performs a malicious action (such as destroying data)". Computer viruses are never

naturally occurring; they are always man-made. Once created and released, however, their spread

is not directly under human control.

Types of Computer Viruses

Macro Viruses

These viruses infect the files created using some applications or programs that contain macros

such as doc, pps, xls and mdb. They automatically infect the files with macros and also templates

and documents that are contained in the file. They hide in documents shared through e-mail and

networks.

Macro viruses include

Relax

bablas

Melissa.A

097M/Y2K

Memory Resident Viruses

They usually fix themselves inside the computer memory. They get activated every time the OS

runs and end up infecting other opened files. They hide in RAM.

Memory Resident Viruses Include

CMJ

meve

randex

mrklunky

Overwrite Viruses

These types of viruses delete any information in a file they infect, leaving them partially or

completely useless once they are infected. Once in the computer, they replaces all the file content

but the file size doesnt change.

Overwrite Viruses Include

Trj.Reboot

way

trivial.88.D

Polymorphic Virus

They encode or encrypt themselves in a different way every time they infect your computer. They

use different encryption and algorithms. This makes it difficult for the antivirus software to locate

those using signature or string searches (since they are very different in each encryption).

Polymorphic Viruses Include

Marburg

tuareg

Satan bug

elkern

Worms

A computer worm is a standalone malware computer program that replicates itself in order to

spread to other computers. Often, it uses a computer network to spread itself, relying on security

failures on the target computer to access it. Unlike a computer virus, it does not need to attach

itself to an existing program. Worms almost always cause at least some harm to the network, even

if only by consuming bandwidth, whereas viruses almost always corrupt or modify files on a

targeted computer.

Many worms that have been created are designed only to spread, and do not attempt to change the

systems they pass through. However, as the Morris worm and Mydoom showed, even these

"payload free" worms can cause major disruption by increasing network traffic and other

unintended effects. A "payload" is code in the worm designed to do more than spread the worm it

might delete files on a host system (e.g., the Explore Zip worm), encrypt files in acryptoviral

extortion attack, or send documents via e-mail.

A very common payload for worms is to install a backdoor in the infected computer to allow the

creation of a "zombie" computer under control of the worm author. Networks of such machines

are often referred to as botnets and are very commonly used by spam senders for sending junk

email or to cloak their website's address. Spammers are therefore thought to be a source of

funding for the creation of such worms, and the worm writers have been caught selling lists of IP

addresses of infected machines. Others try to blackmail companies with threatened DoS attacks.

Users can minimize the threat posed by worms by keeping their computers' operating system and

other software up-to-date, avoiding opening unrecognized or unexpected emails, and

running firewall and antivirus software.

Backdoors can be exploited by other malware, including worms. Examples include Doomjuice,

which can spread using the backdoor opened by Mydoom, and at least one instance of malware

taking advantage of the rootkit and backdoor installed by the Sony/BMG DRMsoftware utilized

by millions of music CDs prior to late 2005.

Trojan Horses

A Trojan is another type of malware named after the wooden horse the Greeks used to infiltrate

Troy. It is a harmful piece of software that looks legitimate. Users are typically tricked into

loading and executing it on their systems. After it is activated, it can achieve any number of

attacks on the host, from irritating the user (popping up windows or changing desktops) to

damaging the host (deleting files, stealing data, or activating and spreading other malware, such

as viruses). Trojans are also known to create back doors to give malicious users access to the

system.

Unlike viruses and worms, Trojans do not reproduce by infecting other files nor do they self-

replicate. Trojans must spread through user interaction such as opening an e-mail attachment or

downloading and running a file from the Internet.

Tips for Preventing Virus, Worms and Trojan Horses

Set the macro security in programs so you can enable and disable macros. Only enable

macros if the document is from a trusted source and you are expecting it.

Install an antivirus program on all of your computers. Obtain updates to the antivirus

signature files on a regular basis.

Check all downloaded programs for viruses, worms, or Trojan Horses. These malicious-

logic programs often are placed in seemingly innocent programs, so they will affect a

large number of users.

Never open an e-mail attachment unless you are expecting it and it is from a trusted

source. Scan for viruses in all e-mail attachments you intend to open. Turn off message

preview.

Write-protect your recovery disk by sliding the write-protect tab into the write-protect

position.

If the antivirus program flags an e-mail attachment is infected, delete the attachment

immediately.

Before using any floppy disk or zip disk, use the antivirus scan program to check the disk

for infection. Incorporate this procedure even for shrink-wrapped software from major

developers. Some commercial software has been infected and distributed to unsuspecting

users this way.

Back up your files regularly. Scan the backup program before backing up disks and files

to ensure the backup program is virus free.

How A Virus Can Be Spread Through An E-Mail?

Viruses can easily be transferred from one computer to another through sending mails. This is the

most common way used nowadays. They may come as an attachment along with the emails. It is

a common opinion that all the spam mails are only virus infected, but it is not so. Even if you

receive a mail in your inbox, it can contain virus in it. When you open and run the attached file,

you are indirectly allowing the virus to into your computer system. This will slowly affect your

hard drive and the entire system.

Often there will be mails like Spot offer, Lottery money, Free loan which will be very

attractive to read through. Its always better to avoid those mails. Never open any attachments

received from unknown people. You may receive many junk mails which you may have to avoid

by unsubscribing them. You may be asked to click on certain link for that. Be careful before

doing that or you may end up getting virus in your computer system.

To prevent such virus attacks, you need to;

Keep your operating system updated

Install and update the antivirus tool on a regular basis

Do not download the attachments directly

Always open the attachments in the mail only after scanning them with antivirus

software.

Keep your Firewall on all the times

Furthermore Know How about the handle of e-mails;

Today, e-mail is one of the most popular features on the Internet. Being able to identify threats

sent through e-mail can help keep your computer and your personal information safe. Below are

some of the most common threats you may encounter while using e-mail.

Attachments

Never open or run e-mail attachments. Viruses, spyware, and other malware are commonly

distributed through e-mails that have attachments. For example, an e-mail may want you to open

an attachment of claiming to be a funny video, when it's really a virus.

Phishing

Phishing or an e-mail phish is an e-mail that appears to be from an official company (such as your

bank) indicating you need to log onto the site to check your account settings. However, the e-

mails are really sites setup to steal confidential information such as your passwords, credit card

information, social security information, etc. See the phishing definition for additional

information about this term as well as examples of these e-mails.

Safeguard against Unauthorized Access and uses

Passwords

Make sure a password has been set on computer. Default passwords such as "password," "root,"

"admin," or no password allows easy access to your computer or your Internet account.

Change passwords often. It is recommended at least once every few months.

Create a BIOS password.

When creating a password, add numbers or other characters to the password to make it

more difficult to guess; for example, 1mypassword23!.

Do not use sticky notes around your computer to write down passwords. Instead use a

password manager.

Biometric Devices

Authenticates a persons identity by translating a personal characteristic, such as fingerprints,

into a digital code stored in the computer verifying a physical or behavioral characteristic such

as;

Fingerprint readers Hand geometry systems

Face recognition system Voice verification system

Signature verification system

Retinal scanners

Safeguard Against; Software Theft, Information Theft, System Failure

Software Theft

Software theft is the unauthorized copying or distribution of copyright protected software.

Software theft occurs when someone;

Steals software media

Intentionally erases programs

Illegally copies a program

Illegally registers or activates a program

Types of Software Theft

Involves a perpetrator physically stealing a media that contain the software or the

hardware that contains the media. Example; an unscrupulous library patron might steal

the Encyclopedia Britannica optical disc.

When a programmer is terminated from, or stops working for, a company. The programs

are common property but some dishonest programmers intentionally remove or disable

the programs they have written from company computers.

Software is stolen from software manufacturers. Also called piracy most common form

of software theft Software piracy is the unauthorized and illegal duplication of

copyrighted software.

Users illegally obtaining registration numbers or activation codes. Keygen a program,

short for key generator, creates software registration numbers and sometimes activation

codes. Some create and post keygens so that users can install software without legally

purchasing it.

Safeguard Against Software Theft

To protect media from being stolen, owners should keep original software boxes in a

secure location. All computer users should backup their files regularly. If company

terminated the any employees then immediately protect their softwares and programs (in

big companies).

Software manufacturers issue users license agreement. A license agreement is the right to

use software. The most common type of license is single-user license agreement or

known as end-user license agreement (EULA).

In this agreement, users are permitted to:

Install the software on only one computer.

Make one copy of the software as a backup.

Give or sell the software to another individual, but only if the software is

removed from the users computer first.

Users are not permitted to: Install the software on a network, such as school

computer lab, export the software, rent or lease the software.

Information Theft

System Failure

Make adequate backups: Your best security policy is to do frequent backups. So many

times people have called me to say their system crashed - What should they do? I say,

restore from backups. Backups? But what if I dont have backups? Indeed. Most external

drives available today come with backup software that is economical and easy to

use. Don't get caught without your backups.

Test your backups: by doing restoration of the data to a test system. Restoring backup

data to a test system helps validate that your backups are working as expected. It should

be done once a month. If you don't have a test system, practice restoring a few files to a

temporary folder on your computer. The more comfortable you are with restoring files,

the safer you will be.

Store your data in two different locations: When your data is only on one set of

backups, there is always a chance that backup could get lost or deleted. By having

backups on two sets of disk or tape, or CD, the chances of losing your files are greatly

reduced.

Keep virus protection up to date: The price of an anti-virus protection program is cheap

compared to lost data and lost productivity time. Infected data might be impossible to

restore. And if that data is valuable to you, your company or your family, you could lose

documents or photographs that cant be replaced. Viruses and Spyware are also often

used to steal information from your computer and send it to illicit sources. Is it really

worth saving $50 a year not to be up to date?

Use a firewall: Firewalls prevent infiltration of hackers and other malicious threats. You

should keep a well maintained firewall between your computers and the Internet, and

between your computers and your in-house users. If you are a home user, you should

have firewall software implemented on your home computer and/or on your home router.

Purchase and install a UPS power supply: between your computers and the electric

power. A UPS can prevent surges from damaging your equipment and then they keep it

up and running during brief power outages. For an average home PC, a 300-500 watt

UPS will provide you with 10-20 minutes of uptime when the power goes off. And a

UPS guards against electrical surges that can damage the circuits in your computer.

Use data encryption on your wireless networks: When you first install a wireless

network router, it usually isnt set up to encrypt your data transmissions by default. A

smart computer hacker can see everything you are doing. And do you really want your

neighbors using your internet connection? Probably not. Set up your router to use WPA

encryption and set the password so that it cant be easily guessed.

Punishment does Hacker Receive

The federal cabinet approved the adoption of the prevention of Electronic Crimes Bill

2007 on 17 January 2007. The proposed law titled as Prevention of Electronic Crimes

Bill 2007 offer penalties ranging from six months imprisonment to capital punishment.

The bill deals with the 17 types of electronic crimes in which included, cyber terrorism,

criminal access, criminal data access, data damage electronic fraud, electronic forgery,

misuse of electronic system or electronic device, unauthorized access to code, misuse of

encryption, misuse of code, cyber stalking and suggest stringent punishment for offences

involving sensitive electronic crimes. It proposes seven years punishment on charges of

electronic fraud and electronic forgery and would not have the right of bail whereas those

tried for data damage; system damage and criminal data access, misuse of electronic

system or electronic device would get maximum three-year punishment with the right of

bail.

The bill suggests maximum punishment of death or life imprisonment for those booked

under cybercrimes or involved in sensitive electronic systems offences. The Minister for

Information Technology Awais Ahmad Khan Leghari stated that the e-crime law would

require the internet companies maintain their traffic data for at least six months to enable

the agencies to investigate cases involving data stored by them.