Internship Report

SWOT ANALYSIS OF SILKBANK

Submitted to: Sheikh Mobeen (BM)

Submitted by: Ali Ishaq

MBA [3.5]
University the Education Lahore
SESSION (2016-2020)
 1. Executive Summary
I worked as an interne at the Silk bank Limited. Silk bank Limited was incorporated in Pakistan
on April 04, 1994 as a public limited company The Silk bank operates in all major cites of the
country.
On September 15, 2001, under the supervision of the State Bank of Pakistan, the institution then
known as the Prudential Bank was acquired by the management and associates of the Saudi Pak
Industrial and Agricultural Investment Company.
On March 31, 2008, a Consortium comprising of IFC, Bank Muscat, Nomura International and
Sinthos Capital led by senior bankers Mr. Shaukat Tarin and Mr. Sadeq Sayeed acquired 86.55%
stake in Silk bank for around $213 million or $0.47 per share.
Under the new leadership, the Bank will continue to focus on SME & Consumer financing
resulting in efforts of increased profitability. While there, my main activity was observation and
other manual tasks in operations and trade department. I was able to observe the different day to
day transactions of bank. And my report on Silk bank briefly and comprehensively explains the
different operations, functions, tasks and services of the bank.
I have visited different departments of the bank like customer’s relationship department,
operation department, finance department, and gained a lot of information about the banking
system. Banking system plays a very important role in the commerce and economic development
of the country.
The banking sector is moving fast by the time. The operations department deals with the risk
involved in the field. This department controls and manages the processing. Account opening
department in making the banker and customer relationship by opening customers account.
In remittance department bank deals in different types of funds transfer facilities from one end to
another.

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 2. Preface
The purpose of this report is to elaborate on my internship experience about Silk bank limited. It
is concerned to a brief study of operations, functions, tasks and services of Silk bank.
Banking play very important role in the commerce and economic development of a country.
Now-a-days banks are using different modern technologies, which influence the managerial
activities that are why I decided to do my internship in the bank.
In preparation of this report I have tried my best to provide all possible information about the
operations, functions, tasks and the corporate information of Silk bank limited in brief and
comprehensive form.

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 3. Acknowledgement

“To him belongs the dimensions of the Heavens and the Earth, it is He who gives life and
death and He has power over all things.”
(Al-Quran)
All acclamations, praise and glory to Allah Almighty, the most Gracious, merciful and
Compassionate, who has empowered and enabled me to accomplish this task successfully.
After that I submit my earnest thank to my affectionate parents, who pray for my success and
always been a source of encouragement for me. Secondly, I am grateful to my prestigious
institute that made this learning opportunity a part of my education, especially I would like to
thank my teachers as the knowledge imparted by them enable me to gain knowledge and learning
exposure of the organization in the best way.
Also I express appreciation to all staff members of Silk bank limited who are very cooperative
guided me a lot and also I express my greatest gratitude to my kindhearted supervisor Mr.
Haroon Akram (head of operations division), Mr. Sheikh Mobeen (branch manager) and Mr.
Zain Shirazi (relationship manager).

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Contents
1. Executive Summary .............................................................................................................................. 2
2. Preface................................................................................................................................................... 3
3. Acknowledgement ................................................................................................................................ 4
4. Introduction of Report........................................................................................................................... 7
5. History of Silkbank ............................................................................................................................... 8
Vision Statement ....................................................................................................................................... 9
Mission Statement..................................................................................................................................... 9
Core Values:.............................................................................................................................................. 9
Customer Focus .................................................................................................................................... 9
Integrity ................................................................................................................................................. 9
Team work .......................................................................................................................................... 10
Creativity............................................................................................................................................. 10
Meritocracy ......................................................................................................................................... 10
Humility .............................................................................................................................................. 10
Board of Directors................................................................................................................................... 10
Management of Organization ................................................................................................................. 11
Management Hierarchy ........................................................................................................................... 13
6. Work Done by Student........................................................................................................................ 14
Department Description and Analysis .................................................................................................... 14
Operations Department ....................................................................................................................... 14
Relationship Department..................................................................................................................... 15
Cash Department ................................................................................................................................. 21
7. Concluding remarks for analysis......................................................................................................... 26
8. Dilemmas Faced By Silkbank Limited ............................................................................................... 27
Customer Satisfaction ............................................................................................................................. 27
Unequal distribution of work ..................................................................... Error! Bookmark not defined.
Less staff ................................................................................................................................................. 27
9. Recommendations and suggestions .................................................................................................... 27
Personal training ..................................................................................................................................... 28
Staff relationship ..................................................................................................................................... 28
Improper Distribution of Work ............................................................................................................... 28

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 Skilled and Highly educated staff ........................................................................................................... 29
Inter Departmental Transfer .................................................................................................................... 29
Avoiding Bad Debts................................................................................................................................ 29
10. Conclusion ...................................................................................................................................... 30

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 4. Introduction of Report
Internship provides an opportunity for us to link theory with practice and further serve as a
temporary labor pool for those agencies that have committed to participate in the internship
program. The purpose of this report is to briefly analyze the departments and its working.
In the preparation of this report I have tried my level best to provide all possible information
about the operation, functions and task of the bank departments. The purpose of my internship
report is to analysis the different departments of the bank and to identify the dilemmas faced by
the bank and the recommendations for them.
The purpose of this report is to focus practical Experiences of my day-to-day work as a part of
my internship period. As one of the main objectives of internship is to gather job experience, I
have tried to put some of the experiences that I have learnt from my internship in this report.

 To present an overview of Silk bank limited.

 To appraise the performance of Silk bank Limited.
 To apprise financial performance of Silk bank Limited.
 To identify the problems of Silk bank limited.
 To recommend/ remedial measures of the development of Silk bank limited.

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 5. History of Silk bank
Banks new identity Silk bank – is a name with a meaning that endorses our values. The name
takes its inspiration from ‘Silk’, a natural element known for its unique properties.
On September 15, 2001, under the supervision of the State Bank of Pakistan, the institution then
known as the Prudential Bank was acquired by the management and associates of the Saudi Pak
Industrial and Agricultural Investment Company.
On March 31, 2008, a Consortium comprising of IFC, Bank Muscat, Nomura International and
Sinthos Capital led by senior bankers Mr. Shaukat Tarin and Mr. Sadeq Sayeed acquired 86.55%
stake in Silk bank for around $213 million or $0.47 per share. Under the new leadership, the
Bank will continue to focus on SME & Consumer financing resulting in efforts of increased
profitability.
Silk bank Limited was incorporate in Pakistan on April 4, 1994 as a public limited company
under the companies Ordinance, 1984. The Bank commenced commercial operations on May 07,
1995. Its shares are quoted on all the Stock Exchange in Pakistan.
The Bank operates through 123 branches including 39 Islamic banking branches in Pakistan.
It operates in four segments: corporate finance, trading and sales, retail banking and commercial
banking. Corporate finance includes investment banking activities, such as mergers and
acquisitions, underwriting, privatization, securitization, initial public offers and secondary
private placements.
Trading and sales segment undertakes the Bank’s treasury, money market and capital market
activities. Retail banking provides services to small borrowers, such as consumers, small and
medium enterprises and borrowers’ agriculture sector. It includes loans, deposits other
transactions and balances with retail customers. Commercial banking includes loans, deposits
other transactions and balances with corporate customers. Now, the Bank operates through 96
branches in Pakistan.
Silk bank maintains its position as Pakistan's premier bank determined to set higher standards of
achievements. It is the major business partner for the Government of Pakistan with special
emphasis on fostering Pakistan's economic growth through aggressive and balanced lending
policies, technologically oriented products and services offered through its large network of
branches locally, internationally and representative offices. Silk bank is the heir to Trust built

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over generations. Today, we are a unique combination of expertise, local knowledge, traditional
values and world-class technology. We aim to provide ultimate service and unmatched value.
We are suitably experienced and fully equipped, with a nationwide presence and global reach, to
be the choice commercial bank in Pakistan.

Vision Statement
Benchmark of excellence in premier banking.

Mission Statement

“To be the leader in premier banking trusted by customers for accessibility, service and
innovation; be an employer of choice creating value for all stakeholders.

Core Values:

Customer Focus
Customer Focusing is a technique for identifying the customers, products/services, quality
characteristics, and performance measures which are most important to your business unit. Do
Customer Focusing when you begin any major review of business activities, or whenever you
need to affirm your key customer and product orientation, for example, when: there is a major
change in your strategic direction new products or services are added

Integrity
Integrity is one of the four characteristics of successful leaders. And it's important in every
aspect of your business. Being ethically unyielding and honest and inspiring trust by saying what
we mean, matching our behaviors to our words and taking responsibility for our actions.

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Team work
Teamwork is the co-operative effort by a group of people to achieve a common goal.
Achievement is usually measured by some kind of performance indicator (e.g.: customer
satisfaction, sales growth). Teamwork is improved when the group changes their behavior so that
performance improves.

Creativity
"Creativity is the process of bringing something new into being. Creativity requires passion and
commitment. Out of the creative act is born symbols and myths. It brings to our awareness what
was previously hidden and points to new life. The experience is one of heightened
consciousness-ecstasy."

Meritocracy
Meritocracy is a system of government or other administration (such as business administration)
wherein appointments are made and responsibilities are assigned to individuals based upon their
"merits", namely intelligence, credentials, and education, determined through evaluations or
examinations.

Humility
One of the most difficult challenges for any leader is to remain humble in light of the success
that the leader has achieved. Our business success inevitably leads to greater self-confidence,
especially as we inevitably over-estimate our personal role in that business success. Humility is
the personal honesty that you, as the leader, do not know everything and do not have all the
answers. Humility enables you to question people’s flattery, to admit your mistakes and
weaknesses, and to be more open to other’s opinions and challenges to your viewpoints.

Board of Directors

Mr. Azmat Tarin President & CEO

Mr. Munnawar Hamid OBE, Chairman
Mr. M. A. Manan Director
Mr. Sadeq Sayeed Director
Mr. Humayun Bashir Director

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Mr. Javed Hamid Director
Mr. Tariq Iqbal Khan, FCA Director
Mr. Arshad Ghafoor Director

Management of Organization

Mr. Azmat Tarin President & CEO

Mr. Muhammad Ahmed

Executive Director
Mannan

Mr. Adnan Afridi Group Head Strategy & Investor Relations

Mr. Goharulayn Afzal Group Head Operations, IT & Productivity

Mr. Jamil A. Khan Group Head Compliance, Legal & Internal Control Division

Mr. Jawad Majid Khan Group Head Islamic Banking

Group Head Special Assets Management and Other Real Estate Owned (OREO)
Mr. Qasim Feroz Khan
Properties

Mr. Mian Asif Said Group Head Wholesale Banking

Mr. Muhammad Saqib Pal Chief Risk Officer

Ms. Romana P. Khokhar Group Head Human Resources

Ms. Shafaq Rahid Head Customer Satisfaction & Quality

Mr. Syed Ammar Ali Zaidi Chief Financial Officer

Mr. Syed Jawad Akhter Head Internal Audit

Mr. Talha Saeed Group Head Retail Banking

Mr. Abdul Mateen Khan Head SME

Mr. Ali Kashif Rizvi Head Treasury & Financial Institutions

Mr. Farooq Nasim Butt Head Middle Market & Corporate Banking

Mr. Javed Yousuf Edhi Head Information Technology

Mr. Junaid Rayaz Chaudhry Head Consumer Risk

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Mr. Kamran Bashir Head Other Real Estate Owned (OREO) Properties

Ms. Nadeem Qureshi Head ICU

Mr. Naiyar Manzoor Saifi Head Marketing and Public Relations

Mr. Shahram Raza Bakhtiari

Business Head Consumer Assets

Mr. Shuja Ahmed Alvi Head Investment Banking Group

Mr. Syed Salman Hasan Business Head Cards

Mr. Uzman Naveed

Company Secretary and Head Investor Relations & Legal Affairs
Chaudhary

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 Management Hierarchy

President

Member Board

Senior Executive Executive Vise-

Vice-President President

President Vice President Branch Manager

Cash Dep. Operational Accounts Manger Customer

Manger Relationship
DepOfficer

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 6. Work Done by Student
I believe doing an internship in banking sector is the most exciting and challenging experience a
student can get. The main task of my internship is to assist my supervisor of concerned
departments. Being an intern in Silkbank is being a part of helping and valuable team.
As an intern I have done my internship in various departments of Silkbank limited. They
provided me their time and information and shared their experience with me which helped me to
enhance my knowledge which I believe would be helpful in my practical life, and they also
shared their experience with me, which I believe that it would be helpful in my practical life.
First two weeks I worked in Customer Relationship department, for next two weeks I worked in
Cash and operation department and for rest of the time I worked with Relationship Manager and
Business Management where I learned lot of things including how to deal with corporate
customers, with individual customer and how to deal with the customers and some marketing
rules.
During the internship session I availed the chance to perform in different banking activities
I also observed different problems faced by the bank. Some of them are new rules or political
instability, poor economic conditions, defused customer loyalty etc.

Department Description and Analysis

Various departments are working in all branches of Silk bank to facilitate the customers.
Following are the banking departments functioning in Silk bank Peco road Branch.
Operations Department
Relationship Department
Credit Department

Operations Department
A manager operation Mr. Haroon Ikram was supervising this department.

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 Relationship Department
A Manger Account Opening Mr. Haroon and Mr. Zain was supervising this department.
Following are the main types of Silk Bank Accounts

I. Current Account
II. Saving Account
III. Salary Premium Account
IV. Ready Line
V. Munafa Rozana
VI. IBFT (Inter Bank Fund Transfer)

Current Account

 Online Express
 BVA (Business Value Account)
 BBA (Basic Banking Account)
 All in One Account

Account Savings
PLS Account (Profit & Loss Sharing)

 Super Saver Account

 Foreign Currency Account

Current Account
Online Express Account:

You can enjoy real time online access to your current account across the bank’s fast growing
network of 123 online branches in 39 cities of Pakistan. With Silk Bank Online Express, you can
now enjoy complete online banking solutions, all under one roof. And that’s not all; your Online
Express account opens the doors of the world for you with the power of the Silk bank VISA
Debit Card.
BVA Account

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Silk bank Business Value Account is a current account that brings respect and recognition to
your business. Get free Cheque books and pay orders, do intercity transactions and stay in touch
with your funds through SMS alerts & E-Statements. Silk bank Business Value Account also
protects your business inventory and cash withdrawals from the bank - all of this absolutely free.

You can get free banking facilities by BVA Account such as:

 Cheque Books
 Free Pay Orders & Demand Drafts
 Intercity Transactions- Free of Charge
 It also gives you protection benefits like as:
 Protect Your Business Inventory
 Worry-free Cash Withdrawals

Monthly Average Balance Sum Insured

Rs. 500 - Rs. 99,999.99 Rs. 200,000
Rs. 100,000 - Rs. 249,999.99 Rs. 500,000
Rs. 250,000 - Rs. 499,999.99 Rs. 1,000,000
Rs. 500,000 - Rs. 1,499,999.99 Rs. 2,500,000
Rs. 1,500,000 - Rs. 2,499,999.99 Rs. 5,000,000
Rs. 2,500,000 and Above Rs. 10,000,000

BBA Account

Now you can open your account with us with no minimum balance requirement, with only Rs.1,
000.Two deposit transactions and two Cheque withdrawals are allowed, free of charge, per
month. Bank will charge Rs.100/- per transaction over and above the allowed free
transactions.ATM withdrawals from all Silk bank ATMs free. In case of withdrawal from BBA
through the ATM machines of other banks, Switch charges will apply in accordance with
Schedule of charges. In case where balance in BBA remains ‘nil’ for continuous six-month
period, the account will be closed.

All in One Account

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Silk bank All-in-One Account provides you the ultimate security and protection, amazing
banking facilities and much more convenience all absolutely free like as:

Unmatched Auto- Insurance Benefits

You can now avail an unbeatable auto-insurance rate as low as 2.5%, offered exclusively for Silk
Bank All-in-One customers!

Worry-free Cash Withdrawals

Liberate yourself from the fear of being robbed of your cash. Silk bank All-in-One Account
provides you free snatching and holdup cover of up to Rs.25, 000 per annum for ATM and over-
the-counter cash withdrawals across Pakistan.

Use Your Mobile Phone without Fear

Free yourself from the insecurity of having your mobile snatched. Silk bank All-in-One Account
provides you free cover of Rs.5, 000 for mobile snatching. This facility can be utilized once a
year. Silk bank All-in-One Account provides you free cover of Rs.5, 000 for theft or loss of your
vital documents. This coverage can be utilized once a year and is designed to reimburse you for
the cost of re-issuance of these documents.

Liberate Yourself from the Fear of Home Burglary

Feel protected at home with Silk Bank All-in-One Account. Your account provides you free
cover for burglary of your house valuables up to Rs.100, 000.

Saving Accounts

PLS Account:

Through your Silk Bank Savings PLS account, you can now avail the benefits of a Savings
Account with the convenience of a Current Account:

 Profit paid out twice a year

 Monthly Profit of 5% on all Tiers
 VISA Debit Card

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  Profit calculated on minimum balance every month
 Can be operated by Individuals or Companies
 Minimum balance requirement is Rs. 50,000

Super Saver Account

Open your Silk Bank Super Saver account today to enjoy high profit every month:

 Highest returns
 VISA Debit Card
 Higher the deposit, higher the returns
 Profit calculated on Daily Product Basis
 Can be operated by Individuals or Companies
 Profit is payable monthly

Foreign Currency Account

 Invest in our Foreign Currency Account to earn remarkable profits twice a year:
 Profit calculated on the minimum balance during the month
 Profit credited after every 6 months
 Can be operated by Individual or Companies

The process of Account Opening

The process of Account Opening is the ''first contact'' which the prospective customer establishes
with the Bank and vice versa. Extreme care has to be exercised during the course of completion
of Account Opening Documentation (AOD), especially the Account Opening Form which is a
basic relationship document. Although account opening is considered to be a simple operational
process, any negligence can often cause a bank to suffer from reputation risk and financial
losses.

Acceptable Customer

enter into a banker-customer relationship with the bank, only those identifiable customers are
acceptable for business transactions who meet the specific criteria for minimum acceptance of a
customer. The Acceptable customer needs to carry the following characteristics:

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 i. The customer's ability to demonstrate legal right to operate account
ii. Evidence of Physical presence of the Customer/its business
iii. Verifiable contact information
vi. Legally acceptable introduction by a third person known to the bank

Unacceptable customers

i.not holding Attested Computerized National Identity Card/Valid Passport Copy;

ii.specifically included in prohibited list by Govt. International agencies
iii.known to be involved in any acts of fraud, mistrust or dishonesty;
iv.not having any physical presence with whereabouts unknown; and
v.Not carrying acceptable introduction.

Account opening officer

Account Opening Officer is the first person of contact with the customer who wishes to open an
account with the bank. He provides the customer with the Account Opening Form.

Documents Required for Account Opening

For Individuals

NIC and source of income of the customer is required which the authorize officer will attest.

For salaried persons

In case of a salaried person

Attested copy of his service card, or any other acceptable evidence of service, including, but not
limited to a certificate from the employer.

For Limited Company

 Copy of certificate of incorporation

 Certificate of commencement of business (in case of public listed company)
 Memorandum and articles of association of the company
 List of board resolution

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 Copies of NIC of directors
 A list of all directors of the company on the latest Form-29

For Partnership Firm

 Attested copy of partnership deed

 NIC photocopies of all partners
 Original Authority Letter in favor of the person authorized to operate the account on behalf of the
firm.
Stamping

After the form is completed it will be submitted to the concerned person. It will be checked by
him, if all requirements and signatures of introducer are complete, verification and signatures
admitted stamps will be put on the form.

Specimen Signature Card

The signature of the client is obtained on a specimen signature (s,s) card. The card is obtained
with two signatures from the customer. Every time a Cheque is received for payment from the
client, the signature on the Cheque is verified by comparing it with card.

Account Number

When all the formalities are completed, an account number is allotted to the customer. Then that
account number is written on s.s card and account opening form. Original Documents sent to
CASD and all the information is entered into the computer after checking. Any discrepancy in
form reported to branch

Issuance of Cheque Book

After opening an account with the bank, the account holder makes a request in the name of the
bank for the issuance of a Cheque book. Such a request is known as requisition slip. Silk issues
Cheque books of 25, 50 and 100 leaves. When he used this book completely then he can apply
for Another

Entry of Cheque Book

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 Printed Cheque books are issued after entering it in the Cheque book register and computer and
issues the Cheque book to the customer after his signature on the register.

Closing of an Account

All AOD should be duly cancelled with the mark “Account Closed “written across them. The Account
Opening Form should be kept filed in the account opening file with the mark “Account Closed''.

Cash Department
The department is the basic concept of banking, receiving the cash from customers and deliver it
at the request of client. Now day’s additional facilities of collecting utility bills and are also
provided.
Receipt

This department deals in receiving cash for our clients. Also receive utility bills and school fees
for customers.
Procedure

The amount could be deposit by the SB client or by any walk-in customer with the help of
deposit slip mentioning account number, title of account and the amount to be deposited on it
and present it on the cash receipt counter after verifying account the cashier counted the amount
and check the fake notes then enter it in receipt book and give it to CD in-charge for stamping
cash received stamp on the deposit slip and deliver it to the depositor. Then slip is posted by the
entry level in plus system to credit customers account. Receipt of utility bills are also the service
provided by this counter after receiving utility bills upper portion of the bill is returned with
utility stamp on it. And in evening its advices are preparing and sent to respective departments
by courier and funds transferred to main branch for payment to concern departments.
Payment

This department deals in payment of instrument and also now days for encashment of prize
bonds.
Procedure

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For the payment of cheque, the customer has to present the cheque to token counter the officer
checks the cheque date, amount in words and figure, signature and stamp if business account and
otherwise in order. After checking and taking signature on the back of the cheque the officer
issue token to the customer and process it in PLUS system and send it to CD in-charge for
signature verification and authorization.

Analysis

The banking sector is moving fast by the time and the operations department deals with the risks
involved in this field. The function of operation is to control and manage the processing.
Operations are known as non-revenue making division. But still values as the engine of the bank.
It also oversees many regulatory requirements of the bank, as well as resolving discrepancies.
Typically, operations are split into a number of different areas covering a range of
responsibilities. The operations department is the basic concept of banking starts with account
opening, cash counter, remittance and clearing.
Account Opening

This department deals in making the banker and customer relationship by opening customers
account after completing all required document and compliance. With the opening of account an
account number is issue issued to the customer as identification. And by the help of this account
number the customer can avail all the facilities e.g. time deposit, clearing, remittance, trade and
credit facilities. While opening of account the banker makes due diligence of the customer
confirming that customer is not involved in any illegal activity. The cheque book is issued to the
customer for the withdrawal of amount deposited in account. ATM cards are also issued
presently it is the main demand of clients.
Cash Counter

Any type of cash transaction is routed through this department it deals in receiving cash, utility
bills making payments of cheques or encashment of prize bonds. This is the riskiest department
due to the cash transactions as cashier are human beings, they could make mistakes but if they
do, they have to pay for that. The biggest risk is short of cash if due to some reason cashier done
mistake in counting the notes and get short at the end of the day they have to pay it from their

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own source. Due to risk nobody is allowed to enter in cash counter except cashier. I was not
allowed to work in this department due to the risk involved.
Remittance

In this department bank deals in different type of fund transfer facilities from one end to another.
The commonly used remittance are demand draft and pay orders, some other. A customer can
issue cross cheque to other person for transfer of funds but it could bounce then these
instruments are used for payment as they are known as confirm payments. The reason for
confirm payment is that they are issued by bank with their guarantee. Demand draft is used for
payment outside city drawn on to branch of that city. And pay orders are for the same city and
cleared by the same branch. It is the most secure way of payment/transfer of funds.
Clearing

This facility is also provided by the operations department known as clearing in this department
different banks instruments are collected from our bank customers to get the clearance of those
instruments and also clear our bank customer’s cheques sent by other banks for clearance. As per
the branch practice the instrument are collected from customer and after completing the
formalities instrument are sent to NIFT for further proceeding and get the clearance of
instruments on 2nd day after 5pm and if cheque is cleared the they are credited to customers
account if returned marked in system and entered in register. The second part is clearing our
client’s instruments presented by other banks through NIFT after checking the stamps and other
requirements the cheques are cleared. And instruments with objection are returned with memo
attached to it specifying the reason for return. The benefit of this department is that client does
not need to wait in queue for payment in other bank, don't need to carry cash

SWOT ANALYSIS

STRENGTH OF SILKBANK:

Strong financial position:

As we can see the financial statement of the bank, the financial position of the organization is very
sound and its profitability is increasing

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Highly Qualified employees:

The bank has highly qualified workforce and it has succeeded to attract the best banking professions
from across the country due its growing pace and sound reputation.

Conductive environment:

The management of the bank is very much concerned with the development and improvement of an
economy. The bank has state of the art and purpose built branches where all the technologies are provided
to get the efficiency of the work force and the customer satisfaction.

Govt. support and Encouragement:

As the owner of the bank belongs to UAE and the type of their investment in Pakistan is a foreign
investment, the Govt. is fully supporting the bank management due to its policy to maximize the foreign
investment in the country, to get the economic prosperity.

Fastest growing financial institution:

Due to its successful business policies and the strong financial position the bank has achieved the
reputation of fastest growing financial institution in the country. It has greatly the customer’s confidence
in the bank.

Young and energetic workforce:

A bank is newer one in the country; the bank has advantage over its competitors because the majority of
its workforce is young not very much over aged. Thus the bank is getting maximum output from its young
and energetic workforce by spending comparatively less on their remunerations.

Islamic banking division:

The bank is one of the pioneers of the commercial banks who have started the Islamic banking along with
their conventional banking. The bank has separate networks of its Islamic banking division which has
sixteen branches across the country and this network is also expanding at a very good pace.

Opportunities in Silk Bank

Rapidly growing economy:

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At present the Pakistan’s economy is growing on a very fast pace. The rapid growth of economy has
result in the increase in growth rate of all economic sectors especially in the banking sector which is
growing at a fastest speed than ever and in future the growth is expected to increase even a higher rate.

Increase interest rates:

The SBP has revised the interest policy and interest rates have been linked with the KIBOR rates. Due to
which the bank interest has been substantially increase which will be greatly increase the bank’s
profitability.

Mega projects financing:

As increase in the overall activity in the country, the investors are launching various types of mega
projects especially in housing and textile the bank has a great opportunity to finance these projects at very
profitable term.

Huge demand for consumer financing:

The increase in per capita income and overall economy has resulted into a great demand for a consumer
financing especially for home finance and car financing and it is said that this trend will be increase more
in future. The bank can earn a lot by focusing on its customer financing section.

Growing trend of Islamic banking:

There is a very good growth trend in the Islamic banking in the country and in the world as well. BAL has
advantage of having full-fledged Islamic banking network and the growth in this particular field can be
very fruitful for bank.

Spending practices for MASS:

As the Pakistani’s are known for their extravagant practices, and to fulfill their funds requirement s they
don’t hesitate from getting loans from banks. Thus there is very good scope for the bank to run successful
business in such circumstances.

Threats of Silk bank

Uncertainty of economy:

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Although the economy is growing at a good pace, but there are many factors which results in the
uncertain position of the economy. Such as political uncertainly, WTO, increase in poverty etc. As a
result, there are permanent threats of future risks and losses for the bank.

High rate of inflation:

The inflation rate of the country has gone above the 10%. This can result into an unfavorable situation for
the bank. And especially the owner ship of the bank in UAE based, the net spread for them can
substantially decrease.

Trend of mergers:

There is a trend of mergers among the banks to become prominent in the market and to get maximum
market shares. This trend can result in the union of some leading banks which can give tough time to bank
and it will become difficult for bank to compete with them.

Risk of defaults:

As discussed earlier that there is trend of launching mega projects in the country. And everyone is
involved in this trend without taking any measure for the successfulness of these projects. This can result
into the failure of this project which can make it difficult for the banks to recover their funds from these
defaulters.

7. Concluding remarks for analysis

Analysis is a very important tool for any organization for the identification of problems, benefits
and other factors. I also did with analysis of different departments of Silk bank limited, which
helps me to get a clear picture of the department its working the facilities and services provided
by them to the customers.
The analysis of operation department elaborates the day to day working of SBP like account
opening, customer relationship, and the detailed process of account opening, steps and services
involved in the procedure. Analysis helps the bank as well to know the efficiency and capacity of
them. They get to know about the lower and upper staff and their relationship.

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8. Dilemmas Faced by Silk bank Limited
In any sector of our country every single organization has to face problems. These problems are
very general. The performance of any financial institute is measured solely on the basis of their
capacity to maximize financial assets, that is, it has been measured with evaluation factors that
review only their monetary results. After the observation and analysis of different departments of
silk bank limited I found some problems bank faced every day. And these problems are listed
below with some briefing:

Customer Satisfaction

In Silk bank limited customer dealing is will, but during rush hour the customer has to wait for a
long time.

Less staff

Staff of the branch is less and workload is too much on the existing staff. Due to which they are
unable to give proper time to their customers. Sometimes due to this shortage of time they lose
their good customers also from the shortage of staff they are unable to give proper time to other
functions of the bank.

9. Recommendations and suggestions

Silk bank limited is an effectively operating and profit making organization and carrying out its
activities under a specified system of procedure. The main regulatory body is State Bank of
Pakistan, which provides policy guidelines and ensures that the money market operates on sound
professional basis. While the head office specifies the whole procedure of functions and
operations. This procedure has been modified with the passage of time with a view to streamline
the approach and underlying procedure for effective overhauling of its own capabilities so as to
bring them at par with international practices.

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Here I am giving some suggestions, which in my view can add some input for efficiency and
better performance of silk bank as an organization in general.
The recommendations are as following:

Personal training

Silk bank staff lacks professionalism at some points. Banking council of Pakistan should initiate
some programs to stock staff with much needed professional training.

Staff relationship

Good relationship among staff member leads to the peak performances in any organization. I
observed that the staff relationship was normal otherwise but some time I noticed that there
existed a little conformity among the staff members. Another syndrome from which the staff
suffered was that all of them considered themselves more important than others. Some of the
officers used to say that if I am absent for a day the bank would stop working. So this sort of
attitude is not good because it mars bank image and juniors ‘willingness learns and work hard
and in the end will hurt the whole team.

Improper Distribution of Work

Proper distribution work leads to success in every organization. Proper distribution of work
prevents the employee from over and under work situation. So for a smooth running of an
organization proper distribution of work is the hint to be followed. During my internship I
observed that there was no proper distribution of work in the bank. I saw that some of the
employee worked like ants other sat idle starting here and there. So this created a lot of over
work situation for while relaxation for other.

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Skilled and Highly educated staff

Silk bank of Pakistan requires skilled and highly educated staff. Nowadays, there is a large
number of M.B.As who is unemployed. These young people have the knowledge and skill to
compete in this competitive and dynamic environment of banking. Silk bank of Pakistan should
recruit new young professional.

Inter Departmental Transfer

I watched during my internship that, there is number of employee who have worked on one seat
for many a year. It can have negative effects motivation of employee who is hardworking and
intelligent. Take the example of advances section. In advance section if the employee is transfer
after sixth month or seven months, how can he be able to show his performances and how can he
be able to know the bank customer in a short period of time.

Avoiding Bad Debts

Special care should be taking while extending the loan. Loans should be awarded against
reasonable securities, where market value should be equal to the loan granted. Policies should be
crafted in a way to ensure that no loan is extended on political pressure. SBP regulation for loan
approval should be strictly followed. According to which the current ration of borrower’s
business must be 1:1 and the debt to equity ratio should be 60:40, means the liquidity position of
business should be healthy.

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 10. Conclusion
The economy of our country is booming and with the investment favorable policies and their
smooth implementation, the role of banks in today’s economy have become an important one.
The banking industry is also reaping the fruits of this economic boom by growing rapidly over
the past few years. There are a number of mergers happening in the economy with foreign
investments coming into the banking sector.
It has been few years since the establishment of Silk bank limited and since its establishment it
has aimed to become the leading bank of Pakistan by that provides outstanding services to its
customers.
The bank has seen phenomenal growth in the past few years by opening more branches in the
major cities of the country, increasing the deposit base, while also increasing the assets and
profits of the bank.
The top management of the bank is always developing strategies that cope with unexpected
challenges to deliver products and services more efficiently
Furthermore, as the bank is growing, the number of employees at Silk bank are increasing, which
shows that SB is being considered as an employer, that provides its employees with a
challenging environment to work in, where they can harness their full potential and shows
confidence as an employer by the employees of the bank. To become the leading bank of
Pakistan, SB has to benchmark its services to its major competitors in the industry or the market
leader in the industry and provide a continuous mean of improvement in its existing products and
services, while introducing new ones to the industry.
Silk Bank plays an important role in the strategic development. The current management of the
bank was hired purely for their international experience, business orientation to turn around a
purely public institution into a sustainable and commercially viable bank serving public interest
along the lines of a large modern commercial bank.
Silk bank has a comprehensive framework of written policies and procedures on all major areas
of operations such as credit, treasury operations etc.
On the whole, this internship was a useful experience. I have gained new knowledge, skills and
met many new people. I got insight professional knowledge. I learned different facets of working
with a bank.

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Form the overall analysis, Silk bank has growing potential. As I have briefly analyzed the
various departments of the bank. One thing which is very valuable in the practical life and I also
learned it in this environment which is how to interact and communicate with the upper and
lower level staff. And in this process in came to know that the practical life is too different and
difficult and it is difficult to survive in such an environment where competition level remains at
peak. Practical life is very difficult and its experience has a good impact on my carrier. I tried
again and again to eliminate my mistakes and this experience will influence my future
performance. At the end I would like to thanks Silk Bank and its cooperative staff

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